Jenn Ong, Head of Retail at GXS
Recently, GXS, a Singapore-based digital bank, unveiled its first flagship whitepaper. The whitepaper explores the relationship between consumers and money, detailing how consumer priorities, spending habits, emotions, and behaviors influence their financial management.
Based on a survey of 1,300 consumers in Singapore, the GXS Progress Quotient (GPQ) 2024 report emphasizes the significance of education and access to banking products for gig workers and early jobbers.
This understanding allows GXS to develop tailored solutions to meet the needs of its customers.
“We have addressed this by utilizing a proprietary credit assessment model that combines ecosystem and credit bureau data to evaluate creditworthiness differently. This approach enables us to provide a line of credit to more customers that aligns with their financial needs. Currently, 90% of our GXS FlexiLoan customers are from our ecosystem, with 25% having limited or no credit history,” explains Jenn Ong, Head of Retail at GXS.
“We also place a strong emphasis on financial literacy through our Betterzine content portal, simplifying complex financial concepts into easily understandable content for consumers. Additionally, we send regular educational emails on financial literacy to our customers and are exploring partnerships with tertiary institutions to promote financial literacy among the next generation.”
Also Read: InnoVen Capital: Gender equality remains an issue in SEA with only 6% of female leadership in startups
GXS is supported by a consortium comprising Grab and Singtel. The digital bank for consumers and businesses was launched in August 2022 with the introduction of the GXS Savings Account.
In an interview with e27, Ong discusses how GXS aims to meet the specific needs of its customers and the future plans of the digital bank.
The conversation has been condensed for brevity:
What is the target demographic for GXS’s services?
As a local digital bank, GXS aims to fill the gaps in banking services, especially for underserved segments like early jobbers, gig workers, entrepreneurs, and micro/small businesses. Our retail banking offerings have resonated particularly well with Gen Z customers, who make up nearly one-third of GXS clientele.
GXS operates within an ecosystem involving its shareholders, Grab and Singtel. By integrating banking services into Grab and Singtel’s apps, over 90% of GXS customers are also users of Grab or Singtel services.
We plan to launch our SME banking services soon, starting with micro/small businesses within our ecosystem.
What are your customer acquisition strategies?
At GXS, our core principle is customer-centricity. We focus on creating solutions that benefit our customers.
For instance, gig workers and entrepreneurs often face cash flow challenges. To address this, our GXS Savings Account has no minimum deposit requirement, and customers can withdraw funds at any time without losing out on interest, as interest is credited daily. This unique feature appeals to our customers who can watch their savings grow daily.
Also Read: Blockchain engineering salaries in Asia see 5.41% drop: report
We acknowledge that some consumers are underserved in the loan market due to traditional credit assessment methods. To cater to this segment, we have developed a credit assessment model that combines ecosystem and credit bureau data to provide credit to individuals who may not have a sufficient credit history. A quarter of our GXS FlexiLoan customers have limited or no credit history, and 90% are from our ecosystem.
We continue to innovate with features like zero early repayment fees and daily non-compounding interest on our GXS FlexiLoan, resulting in significant interest savings for our customers.
What advantages does GXS offer as a digital bank?
As a digital bank, GXS eliminates the overhead costs associated with physical branches, allowing us to offer cost-effective services to customers.
Also Read: Tech talent war in Singapore expected to continue as the job market stabilises in 2023: Report
We leverage our ecosystem channels to keep marketing and service costs low and pass on these savings to customers. Our partnership with Grab and Singtel enables us to provide integrated banking services and personalized offers through their apps, leading to a seamless customer experience.
What innovations are in the pipeline for GXS post-launch?
At GXS, innovation is steered by customer insights and technology. We constantly enhance our technology stack to provide a secure and user-friendly banking experience. Leveraging Gen AI, we are improving workplace productivity through projects focused on information retrieval, code development, and documentation generation.
We are piloting several GenAI solutions that enhance customer service and marketing to enrich the overall customer experience at GXS.
What are your plans for the future?
Since our launch in 2022, we have offered essential banking products like savings, lending, and payments to retail customers through services like the GXS Savings Account, GXS FlexiLoan, and GXS Debit Card. We aim to expand our product range and make banking more accessible and affordable for underserved individuals.
We are also developing capabilities for micro/small businesses in Singapore, aiming to bridge financial gaps for this vital sector of the economy in the coming months.
—
Image Credit: GXS
The post How GXS relies on consumer insights and technology to drive digital banking innovation appeared first on e27.