GXS FlexiLoan customers saved a total of $4 million in interest in the past 12 months
SINGAPORE, 3 April 2024 – GXS Bank (GXS) today announced that GXS FlexiLoan customers have cumulatively saved S$4 million in interest in the past 12 months. The Bank launched the GXS FlexiLoan in April 2023 and has disbursed more than 100,000 loans within a year.
GXS, which holds a banking licence from MAS, launched in 2022 with a mission to make banking better and more accessible to consumers and businesses in Singapore. One way in which the Bank is doing so is by disrupting market practices which do not serve its customers.
For example, GXS customers can enjoy interest savings with the GXS FlexiLoan because interest on the loan is calculated daily, based on the outstanding balance at the end of the previous day.
Ms Jenn Ong, Head of Retail at GXS, said, “Personal loans in Singapore often come with legacy administrative fees which erode the financial boost that loans should provide consumers. We believe that a loan can be a powerful tool in your financial toolkit if used wisely. As a bank, our customers count on us to make sure that every cent counts for them.”
Calculating interest daily and on a non-compounding basis benefits consumers because if they make an early repayment, their outstanding balance is reduced. The following day’s interest is calculated based on the new reduced outstanding balance, resulting in immediate interest savings.
GXS is the only bank in Singapore that calculates interest on a daily basis for personal instalment loans. The prevailing market practice is to charge interest on a monthly basis, which does not change regardless of whether customers repay their loans early.
Compounding this pain point for consumers is that most personal loans in the market also carry an early repayment fee which discourages customers from paying down their loan fully. GXS FlexiLoan has no such fee.
“We’re heartened to see that our efforts to design a different sort of personal loan have been successful in making a difference in our customers’ financial journey. We believe this is why our product has resonated with Singaporeans. In the past six months, the average loan amount taken by GXS FlexiLoan customers has grown by 30 per cent,” Ms Ong said.
Helping Singapore’s consumers to reach their goals
The GXS FlexiLoan has been popular across consumers from all walks of life who have tapped the flexibility of the loan for different uses.
One such customer is Mr Daniel Tan, 48, a commercial pilot, who said that the interest savings for the GXS FlexiLoan appealed to his needs. “The GXS FlexiLoan is great because I can choose my repayment date and how long I take the loan for. I like that it charges interest daily which means I can save on interest payments when I make early repayments. I used the GXS FlexiLoan to get my wife something special for our wedding anniversary and usually repay the monthly repayments a few days early, when my salary comes in. The best part is there are no fees for early repayment," Mr Tan said.
The GXS FlexiLoan has also been a boon for Mr Chen Weiming, 42, a real estate agent. “As I am self-employed, I have to manage my finances to fund both my business and my personal life, such as marketing costs for property listings and my household expenses. I applied for the GXS FlexiLoan because it offers me a safety net in the form of an approved loan amount which I can use only when I need to. Until then, I won’t be charged a fee or have to make monthly repayments. This peace of mind is really invaluable and has helped to relieve my cash flow concerns,” Mr Chen said.
Helping Singapore’s consumers to reach their goals
Since the launch of GXS FlexiLoan in April 2023, GXS has celebrated several milestones, including disbursing 100,000 loans in under a year. The Bank expects to double this in the coming months.
GXS has also been recognised in the industry for its relentless focus on customer experience, bagging two awards at the CX Asia Excellence Awards for Best Customer Experience Teams and Best Omni-Channel Experience in 2023.
GXS has been able to enhance its customer experience and design products such as the GXS FlexiLoan that bring additional value to its customers because it is part of a tightly-knitted ecosystem with Grab and Singtel. This has enabled the Bank to boost its offerings to its customers without increasing the cost to them. For example, GXS most recently gave 60 lucky GXS FlexiLoan customers 888,888 GrabRewards points each.
In celebration of GXS FlexiLoan’s first anniversary, GXS is launching a campaign to help more of its customers to fulfil their dreams. From 3 April to 30 June, GXS FlexiLoan customers will be part of a lucky draw where they could win a travel experience, spice up their home with furniture or home appliances or get their hands on an iPhone 15 with a complimentary one year Singtel plan. New GXS FlexiLoan customers will also stand a chance to receive Grab vouchers worth $50.
Customers simply need to take up a minimum loan amount of $3,000 with a loan tenure of at least six months to be eligible. More details on the campaign, including the terms and conditions, can be found at www.gxs.com.sg/flexiloan.
About GXS Bank
GXS Bank (GXS) is a digital bank with a relentless focus to make banking better for the everyday consumer and small business. This includes Singapore’s underserved individuals and businesses.
The Bank aims to improve financial inclusion and to drive financial revolution for its customers through the secure and ethical use of technology and data.
GXS holds a banking licence issued by the Monetary Authority of Singapore.
It is backed by a consortium consisting of Grab Holdings Inc. – Southeast Asia’s leading super app, and Singtel – Asia’s leading communications technology group. GXS is a separate entity and is not associated with the businesses of Grab Holdings, Singtel and their entities.
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GXS Bank to redefine banking services with Singapore’s first digital bank for consumers and businesses
SINGAPORE, 31 August 2022 – GXS Bank (GXS) today launched Singapore’s first digital bank for consumers and businesses. The Bank’s launch product is the GXS Savings Account, which has been designed to ease the pain points that these individuals experience as they save for their dreams.
GXS is backed by a consortium consisting of Grab Holdings (Grab) and Singtel. The Bank aims to revolutionise banking services for its customers by leveraging its technological capabilities and the collective power of the GXS, Grab and Singtel ecosystem.
GXS is also the first digital bank in Singapore to be awarded the Data Protection Trustmark by the Infocomm Media Development Authority (IMDA), testifying to the Bank’s best-in-class data protection practices to keep customers’ personal data safe and secure.
A bank that challenges banking conventions
To uplift basic banking standards in Singapore, GXS’ beach head strategy is providing a banking experience that addresses the pain points of Singapore’s underserved segment, such as the two in five adults who are underbanked.
Charles Wong, Singapore CEO of GXS, said, “GXS is a homegrown bank on a mission to support the needs of the entrepreneurs, gig economy workers and early-jobbers in our community. To start, we are challenging the notion of what a basic savings account could do to support their goals and dreams.
Over the coming months, we will also tackle other obstacles that hinder consumers and small businesses from reaching their goals sooner, such as growing their wealth or accessing credit.”
A savings account that raises the bar
GXS’ first financial product is the GXS Savings Account, which is designed to address the gaps that hinder consumers such as those who are gig economy workers, self-employed entrepreneurs and early-jobbers from reaching their saving goals.
For example, given that cash flow is important for this group of individuals, the GXS Savings Account enables them to earn interest daily. GXS Savings Account-holders also do not need to worry about being penalised with fees should they need to withdraw their savings as there is no minimum balance requirement.
The GXS Savings Account is also designed to encourage customers to stay disciplined with their savings without the hassle and stress that may be associated with this activity.
Understanding that consumers in Singapore have the habit of allocating different pockets of funds for different goals, GXS has an intuitive feature within its Savings Account known as Saving Pockets that enables customers to do just that.
In designing Pockets, GXS incorporated techniques such as visualisation and smart nudges to help its customers develop and sustain a habit of saving.
For example, saving is no longer just setting money aside in an account with a string of numbers. Instead, GXS customers can customise their Pockets to make saving for their dreams personable. In addition to naming their Pockets, customers can choose to tag their Pockets to any photo which resonates with their goals.
To help them stay on track with their saving habit, GXS also sends timely nudges to customers, such as encouraging them to top up their Pockets when they’re close to their goals or cheering them on the progress they have made.
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A Gen Z bank that is born to grow with customers in the digital age
A digital native, GXS is built to stay nimble and agile alongside customers as their needs change over time and their expectations are continually shaped by technology.
For example, GXS has built a data infrastructure that enables the Bank to analyse the data swiftly in order to generate extensive and meaningful insights. GXS uses these insights to develop, refine and iterate new features, services and conversations that matter to its customers.
“GXS is uniquely positioned to learn and to refine the banking experience so that it is extremely personalised and relevant to customers because we are part of a powerhouse ecosystem that includes Grab and Singtel. Their platforms are used daily by more than three million Singaporeans. The frequent interactions between consumers and the platforms within our ecosystem provide us with deeper and sharper insights on what our customers need and how we can serve them seamlessly across all touchpoints within our ecosystem,” Mr Wong said.
As customers continue to make transactions and interact within the ecosystem, GXS is able to understand their banking needs more deeply and offer them hyper-personalised support.
GXS’ digital bank app will be available in Apple’s App Store and Google Play Store from 5 September 2022. The Bank’s services will be rolled out progressively to consumers thereafter, starting with selected employees and underbanked customers within the GXS, Grab and Singtel ecosystem.
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About GXS Bank
GXS Bank (GXS) is a digital bank with a relentless focus to make banking better for the everyday consumer and small business. This includes Singapore’s underserved individuals and businesses.
The Bank aims to improve financial inclusion and to drive financial revolution for its customers through the secure and ethical use of technology and data.
GXS holds a banking licence issued by the Monetary Authority of Singapore. It is backed by a consortium consisting of Grab Holdings Inc. – Southeast Asia’s leading super app, and Singtel – Asia’s leading communications technology group.
For media enquiries, please contact:
