Grab-Singtel’s Digital Bank Launches Exclusive Savings Option
GXS Bank, the digital bank created by Grab and Singtel, has unveiled its first product: a savings account tailored for employees of Grab and Singtel, alongside select customers within their ecosystem. This launch makes GXS the first retail digital bank to go live, beating Sea’s MariBank to the finish line. Additionally, GXS has been granted the Data Protection Trustmark by Singapore’s Infocomm Media Development Authority.
The GXS Savings Account offers an annual interest rate of 0.08 per cent, compounded daily. Customers can create up to 8 “Pockets” within their account, designed for saving towards specific goals. Each Pocket earns 1.58 per cent annual interest, also compounded daily. These Pockets can be personalised with names and images to reflect the savings goal. GXS also includes smart nudges to encourage users to contribute to their Pockets and celebrate their savings progress.
Before the official launch, the savings account was rolled out to GXS employees, with half of them setting up Pockets. Remarkably, 80 per cent of deposit balances were placed in these Pockets. For GXS, these Pockets function similarly to term or fixed-deposit accounts, which typically offer higher interest rates for locked funds. Charles Wong, CEO of GXS Singapore, emphasised that the goal is to help customers build a savings habit and prepare them for more complex banking products in the future.
“Starting to save and set aside money can be empowering, especially when you have the flexibility to withdraw funds without hurdles,” Wong explained.
While other digital banks in Hong Kong and Indonesia have used promotional rates to attract customers, Wong believes that having a captive customer base from Grab and Singtel allows GXS to minimise such costs. He added, “The frequency of contact within the ecosystem is high, giving us ample opportunities to engage with customers. We’ll offer competitive, but not excessive, rates.”
Currently, the combined deposit cap across the savings account and Pockets is S$5,000. The GXS app will be available on both the iOS App Store and Google Play Store starting September 5.
Though Trust Bank, a digital initiative by Standard Chartered and NTUC Income, has launched its app, registration for new accounts is still unavailable. GXS, however, has no minimum balance requirement for its savings accounts and seeks to target underserved populations, including gig workers, entrepreneurs, and fresh graduates.
Wong stated, “While Singapore has many banks, being well-banked doesn’t equate to being well-served.”
With a potential customer base of approximately 3 million within the Grab and Singtel ecosystem, GXS is initially restricted by the Monetary Authority of Singapore to onboard only customers within their consortium. The bank leverages data analytics to refine and personalise its products and services, offering tailored support based on customer needs.
GXS, which operates exclusively digitally without any physical branches, ensures its customer helplines are available 24/7—an essential service in the digital age where customers prefer direct assistance at any time. “When digital natives seek help, they want immediate support. That’s why our phone lines are available around the clock,” Wong added.
In the months ahead, GXS plans to address further challenges that hinder consumers and small businesses from achieving financial goals, such as wealth growth and access to credit.
