Thursday,30 May 2024

GXS Bank’s Ramaswami: “We are on track to profitability in 3-5 years”

5 min read

Interviewed By Foo Boon Ping

GXS Bank, backed by Grab Holdings and Singtel, operates in Singapore and Malaysia. Group CEO Muthukrishnan Ramaswami discussed how the digital bank model can promote financial inclusion through competitive deposit products and accessible credit

Muthukrishnan Ramaswami (Ramu), group CEO of GXS Bank, detailed the collective vision shaped by the bank’s management for transforming the future of banking. Emphasising a customer-centric approach, Ramu explained how GXS Bank is committed to delivering a broad spectrum of banking and financial products to individuals and small medium-sized enterprises (SMEs).

He underlined the importance of financial services in fostering economic and social mobility, a key motivation behind the bank’s strategy. As group CEO, the veteran banker provides strategic oversight and guidance to the CEOs of its subsidiary banks, Charles Wong who heads GXS in Singapore and Lai Pei Si, who leads GX Bank in Malaysia.

GXS, backed by a consortium of Grab Holdings and Singtel, is licensed by the Monetary Authority of Singapore to operate as a full digital bank in the island state. Its subsidiary, GX Bank, jointly operated by the Kuok Group, operates under a similar licence in Malaysia, and just this week launched its beta app to 20,000 selected users. In Indonesia, GXS holds a 32.5% stake in the digital bank, Superbank, that recently sold a 10% stake to South Korea’s KakaoBank. In Thailand, GXS Bank would be a contender for one the country’s digital banking licences.

Ramu highlighted the role of modern technology and data science in providing easy-to-use services that promote economic mobility and social benefits. With a focus on building foundational capabilities, GXS Bank offers competitive deposit products and accessible credit facilities. This approach directly addresses the underserved in the economy, providing good returns on deposits and easy access to credit.

He emphasised that GXS Bank caters to both retail and micro-SME segments, recognising the tight linkage between business and individual needs in these groups. The bank leverages the strength of its ecosystem, including rich data and connectivity, to create value propositions that are technology-driven and customer-focused.

Addressing the pain points of credit access and banking, GXS Bank ensures a quick and efficient credit approval process. Using alternate data, the bank has been able to include a significant portion of clients new to credit, focusing on credit education and wise credit use. Over 90% of credit applicants come through parent company channels, demonstrating the effective use of the ecosystem in reaching and serving customers.

On the deposit side, Ramu explained that GXS Bank caters to those with small savings, offering competitive interest rates with minimal hidden charges. The bank has introduced innovative features like daily interest credits, making it a unique proposition in the market. This approach aligns with the bank’s mission to empower customers through thoughtful, accessible, and beneficial financial services.

Keywords: Digital Bank, SME, Beta App, Foundational Capabilities, Value Propositions
Institutions: GXS Bank, Grab Holdings, Singtel, Monetary Authority Of Singapore, GX Bank, Kuok Group, Superbank,
Country: Singapore, Indonesia, Malaysia, Thailand
Region: Asia Pacific
People : Muthukrishnan Ramaswami (Ramu), Charles Wong, Lai Pei Si
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