GXS Bank challenges the notion of a loan with launch of the GXS FlexiLoan, a credit product open to all eligible individuals
SINGAPORE, 25 April 2023 – GXS Bank (GXS) today launched the GXS FlexiLoan, a personal loan designed to address the pain points that individuals today face when taking up a loan and bridging the gaps that hinder their access to credit.
The GXS FlexiLoan gives consumers control and flexibility to manage their finances by bringing together features of a credit line and a personal instalment loan.
The GXS FlexiLoan is the first unsecured term loan offered by a bank in Singapore that enables customers to pay off their loan partially or in full without any early repayment fees and with the additional perk of interest savings.
GXS FlexiLoan customers can also make multiple loan drawdowns from their credit line without having to go through underwriting and approval each time. They can choose repayment terms that are most convenient for them, such as choosing a monthly repayment date that is aligned with when their salary is credited.
The GXS FlexiLoan is the Bank’s first unsecured credit product and is available to all eligible individuals in Singapore. It is the second product launch for the Bank, following the GXS Savings Account, a savings account that is presently by invitation only and which was launched in August 2022.
Charles Wong, CEO of GXS, said that the GXS FlexiLoan reaffirms the Bank’s unwavering focus to uplift banking standards for individuals who want more out of financial services in Singapore.
“GXS is built on the premise that if our customers win, we win. We start every product design the same way – looking at the pain points that the everyday consumer experiences in banking and how we can solve them. When we launched our GXS Savings Account, we wanted to help our customers stretch their savings and not feel penalised for having different cash flow needs.
“With the launch of the GXS FlexiLoan, we are turning the spotlight on the barriers and hindrances in unsecured loan products that hold individuals back from stretching towards their goals. We are excited about how we can make banking better for Singapore’s consumers and small businesses through our technology build. Over the coming months, expect to enjoy consistent enhancements to the GXS experience as we refine our existing products based on our customers’ feedback and usage behaviours and launch new solutions to tackle existing banking problems,” Mr Wong said.
A loan made to order for you
The GXS FlexiLoan is designed to let customers call the shots on how much and how long they want to take up a loan. This is part of the Bank’s bid to empower customers so that they can take control of how they want to bank.
For example, customers can choose a loan tenure as short as just two months with the GXS FlexiLoan. This is most meaningful for underserved consumers such as gig workers, entrepreneurs and early-jobbers, including the one in two respondents in a GXS survey1 who said that they would prefer to take up loans with a tenure of under 12 months.
Alongside bigger-ticket items such as home renovation and paying for education, survey respondents also say that they have taken up short-term loans for smaller expenses such as daily household necessities2. These may not necessarily require a large credit line, and that is why GXS has designed the GXS FlexiLoan with the flexibility for consumers to take up just the loan amount that they need, from as low as S$200.
The GXS FlexiLoan is available to all eligible individuals who meet the regulatory requirements in Singapore, including having a minimum annual income of S$20,000.
A loan made to work for you
GXS also found in the survey that consumers want to repay their loans early, with 77 per cent of respondents saying that they have tried to do so in full or partially. However, nearly one in three from this group encountered barriers such as early repayment penalties and no reduction in the interest amount. This often leaves them feeling anxious, regretful, and stressed.
That is why the GXS FlexiLoan does not carry any hidden processing fees or early repayment fees should customers choose to repay their loans early.
GXS has also incorporated incentives to encourage customers to repay their loans early so that they do not have to stay committed to a loan longer than they need to. This is aligned to the Bank’s ethos of creating products and features that can help encourage their customers to nurture good finance management habits.
GXS FlexiLoan customers are able to customise their repayment date according to what best fits their preferences and ability to pay. If they choose to pay off their loan earlier, they will be able to reduce the accumulated interest. Interest rates start from 3.8 per cent per annum (effective interest rates from 7.15 per cent per annum) and are dependent on the individual’s credit risk scoring assessment.
GXS has also included in its app the ability for customers to set up prompts and reminders to help keep them on track with their repayment schedules and to pay down their loan early if they are able to do so.
Jenn Ong, Head of Credit Products, GXS, said, “Even with the extensive loan products currently available in the market, there are still individuals that are thinly-served by banks and who feel constricted and burdened by the requirements or construct of these products. When faced with such hurdles, they may look for quick fixes which may not be financially prudent for them, such as taking on alternative loans with high interest rates or hidden fees that may snowball. Taking on a loan may also not be feasible for those who may have irregular income and are looking for flexibility in repayments.
“The GXS FlexiLoan takes all these factors into consideration to account for our customers’ different needs and circumstances. Whether to support a side hustle or a family goal, we hope that our customers will feel that the power is in their hands to shape the GXS FlexiLoan their way.”
Applying for the GXS FlexiLoan is as simple as a few taps on the GXS app. The GXS app is available in Apple’s App Store and the Google Play Store.
For more information, visit 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.
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1 Source: GXS survey on consumer sentiments in Singapore for credit products, conducted by FRC Singapore in March 2023 with 1,013 respondents.
2 Source: GXS survey as above, March 2023.
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:
