GXS Bank, the digital bank backed by Grab Holdings and Singtel, aims to achieve profitability by March 2027, according to GXS Group CEO Muthukrishnan Ramaswamy.
Grab owns 60% of GXS, while Singtel owns the remaining 40%.
The partners have committed to deploying $1.5 billion in capital through March 2027, and there are no current plans for an initial public offering, Muthukrishnan said.
according to BloombergThe bank’s loss for 2023 widened to $152.1 million from $113.7 million a year earlier due to an acceleration in business.
Founded two years ago, GXS focuses on serving economically disadvantaged groups such as gig economy workers and small and medium-sized enterprises, primarily through the Grab app.
This approach uses data to assess creditworthiness and sets us apart from traditional banks.
It was previously led by Charles Wong. Recently appointed as advisorGXS has developed key products such as the GXS Savings Account and GXS FlexiLoan.
Muthukrishnan emphasized that GXS Bank is not targeting the same customer base as large traditional banks, but sees potential in underserved populations.
GXS and other digital banks in Singapore face stiff competition from established players such as DBS Group Holdings Ltd., OCBC Bank Ltd. and United Overseas Bank Ltd., which dominate the local market with a 65% share of deposits and 84% of loans, according to Bloomberg Intelligence.
To overcome these challenges, GXS has set ambitious goals, including reaching US$3 billion in deposits and US$2 billion in loans within the next three years.
The bank’s average loan size in Singapore is about US$6,000, and it plans to grow profits through increased loan volume and cost-efficient digital operations.
Bloomberg Intelligence senior analyst Sarah Jane Mahmood said Singapore’s digital banks have limited profitability and suggested they may need to expand regionally.
While Singapore is expected to be the revenue driver over the next few years, Ramaswamy highlighted Indonesia’s large population as a market with potential for growth in the longer term.
