Grab-Led GXBank Secures License to Commence Operation in Malaysia

GX Bank Bhd (GXBank), a Grab-led digital bank, is the first of five digital bank license applicants to receive approval to begin operations from the Minister of Finance and Bank Negara Malaysia (BNM) ahead of the April 2024 deadline set by BNM.

GXBank has completed an operational readiness review and has been approved to begin operations on September 1, 2023, according to a statement released on Sept 4.

GXBank will use technology and innovation to help unserved and underserved individuals, as well as micro and small medium enterprises (MSME). Furthermore, the digital-only bank will support customers' needs through a variety of channels, including a bank app and 24/7 customer support across multiple platforms, according to the company.

The lack of access to financial services and its consequences in particular to the unserved and underserved segments and MSME is not new. The longstanding complexity of financial access, coupled with the unprecedented events over the last few years, have eroded financial buffers for individuals, households and businesses, the bank noted. Since the pandemic, 55 percent of Malaysians’ household income has decreased dramatically, with almost 50 percent now claiming to have difficulty raising at least MYR1,000 ($214.49) as emergency funds.

GXBank, which employs more than 95 percent Malaysians in both the technology and finance sectors, is led by Pei Si Lai, who has over 25 years of experience in consumer and commercial banking. The team of over 200 people is united in their belief that combining today's technology and finance expertise will provide a platform to empower local communities and businesses to be financially resilient.