Grab deposits $101m in capital to GXS Bank (update)

Charles Wong, Singapore CEO of GXS / Photo credit: GXS Bank

GXS Bank, the Singapore digibank formed by the Grab-Singtel consortium, has received US$101 million in capital from Grab, according to VentureCap Insights, which tracks regulatory filings in Singapore. 

Tech in Asia has reached out to the digibank to learn more.

GXS Bank launched in August 2022, positioning the firm as Singapore’s first digibank specializing in everyday consumers and small businesses.

As of May, GXS is nearing the S$50 million (US$37.9 million) limit in deposits that the Monetary Authority of Singapore (MAS) has set for the initial operations of digital banks in the country. This would require GXS to look for growth elsewhere, including in its credit product, FlexiLoan, which has similar interest rates to DBS Bank and UOB Bank.

GXS on July 19 announced it has increased the maximum deposit amount for its savings account from SGD5,000 (US$3,772) to SGD75,000 (US$56,575) per account.

Meanwhile, rival Trust Bank said its deposit balance surpassed US$739.5 million as of May, as it is not subject to a deposit cap. Trust has a full bank license while GXS operates on a digital full bank license. Trust Bank was formed through a partnership between Standard Chartered Bank and Fairprice Group.

Another digital full bank license holder is Sea Group’s MariBank, which started rolling out its services on an invite-only basis in March. The internet giant also operates SeaBank in the Philippines and Indonesia.

See also: SG digibank GXS trails Trust in adoption as deposit cap hampers growth

Currency converted from Singapore dollar to US dollar: US$1 = S$1.32.

Update (July 19, 8:00 pm): This article was updated to include information about GXS Bank’s new policy on its savings account.