Indicative of the Bank’s successful efforts to improve financial inclusion in Singapore
SINGAPORE, April 3, 2024 /PRNewswire/ — 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 installment 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.
Accelerating through the milestones
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[1].
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 S$50.
Customers simply need to take up a minimum loan amount of S$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.
[1] As at 25 March 2024, the item that requires the most GrabRewards points on GrabRewards is the Sony PlayStation 5 Gaming Console. 888,888 GrabRewards points is more than enough to redeem two Sony PlayStation 5 Gaming Consoles on GrabRewards.
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