The first out of five digital bank licence applicants to be approved, GXBank successfully completed an operational readiness review and has been enabled to start its activity, effective 1 September 2023.
Based on the information detailed in the announcement, GXBank is set to leverage technology and innovation to address the needs of the unserved and underserved individuals, alongside those of micro and small medium enterprises (MSMEs). Furthermore, the digital-only bank is set to support customers’ needs through varied channels, including a bank app and 24/7 customer support via multiple platforms.
The lack of access to financial services and its consequences particularly to the unserved and underserved segments and MSME, as well as the longstanding complexity of financial access, coupled with the events of the past years, have eroded financial buffers for individuals, households, and businesses alike. Following the pandemic, 55% of Malaysians’ household income has seen a dramatic decrease, with almost 50% claiming difficulties in raising a minimum of RM1,000 as emergency funds.
With more than 95% Malaysian employees from both the technology and finance sectors, GXBank seeks to combine the current tech and finance expertise to provide a platform empowering local communities and businesses to be financially resilient. Pei Si Lai, CEO of GX Bank Berhad stated that they are driven by a shared purpose to transform the financial industry, beginning with solutions that address the financial struggles of Malaysians and businesses.
With BNM’s guidance and support to offer financial services and help the unserved and underserved communities achieve their goals and a better quality of life and standing on Grab’s legacy of advanced tech and economic inclusion, GXBank seeks to redefine banking and reshape Malaysia’s financial landscape. Its collaboration with consortium partners like Kuok Group and other industry players will enable it to cooperate, leveraging their respective ecosystems to enable a resilient and financially inclusive Malaysia.
The announcement further highlights that, with the commencement of operations, the bank is set to begin beta-testing its app, starting with its employees from GXBank, Grab and Kuok Group, and progressively rolling out to a wider pool of users. This is going to enable GXBank to receive feedback continuously and refine the user experience ahead of the launch to the broader public.
GXBank is a subsidiary of GXS Bank Pte. Ltd., – the digital bank joint venture between Grab Holdings Limited and Singapore Telecommunications Limited (Singtel) – and a consortium of other Malaysian investors, including Kuok Group.
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