Grab-led GXBank launches as Malaysia’s first digibank

GXBank launch in Malaysia / Photo credit: GXBank

After rolling out the beta version of its app earlier this month, Malaysia’s GXBank has officially launched to the general public and become the country’s first digital bank to operate.

GXBank offers a daily interest rate of 3% per annum for users who save in their main account or Pockets, the app’s savings goal feature. Customers can use Pockets to monitor progress and receive money-saving tips. GXBank CEO Pei Si Lai noted that almost 50% of its beta testers used Pockets.

The bank also announced plans to launch GX Card – a debit card it offers in partnership with Mastercard – but did not specify when the card will become available.

GXBank is a subsidiary of Singapore’s GXS Bank – a joint venture between Grab and Singtel, along with a consortium of other Malaysian investors, including the Kuok Group. Licensed by Bank Negara Malaysia, GXBank said that deposits up to 250,000 ringgit (US$53,717) per user are protected by insurance firm Perbadanan Insurans Deposit Malaysia.

GXBank was also the first of five digital bank license applicants in Malaysia to receive the green light to operate. Other license holders include a consortium led by Sea Group and YTL Digital Capital, as well as another comprising Boost Holdings and RHB Bank.

In Singapore, GXS Bank recorded almost US$3 million in deposits as of the end of last year. It increased its maximum deposit limit for savings accounts from S$5,000 (US$3,752) to S$75,000 (US$56,285) per account.

In addition to Singapore and Malaysia, Grab and Singtel are also present in Indonesia – the companies invested in Emtek Group-owned Bank Fama International, which has now transformed into a digital bank called Superbank.

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

Currency converted from Malaysian ringgit and Singapore dollar to US dollar: US$1 = 4.65 ringgit and US$1 = S$1.33.