GXS Bank Acquires Validus to Boost SME Digital Lending in Singapore

The Monetary Authority of Singapore (MAS) has approved GXS Bank's acquisition of Validus Capital, the Singapore subsidiary of Validus Group. GXS Bank is supported by Grab Holdings and telco Singtel.

GXS will acquire Validus Capital, one of Singapore's biggest online lending platforms for SMEs, as a wholly owned subsidiary. This is Singapore's first digital bank acquisition of this kind.

According to Mr. Vishal Shah, group head of commercial banking at GXS Bank, the acquisition would be entirely financed with cash, but specifics are kept under confidential. The US President Donald Trump's tariff vacillations have contributed to the unstable economic environment.

He added that after discussing the matter, the bank's board and management decided that the sale should proceed because SMEs will always require funding, regardless of the current environment.

GXS will be able to serve a variety of business entities, including micro, small and medium-sized businesses, by leveraging Validus' current SME customer through the acquisition. Additionally, it will add working capital loans and supply chain financing to its list of company services.

GXS currently offers a business banking solution called GXS Biz Account, although it is exclusively for sole proprietorships and other firms with a single owner. For these sole entrepreneurs, the GXS FlexiLoan Biz provides an unsecured line of credit.

Working capital loans finance ongoing cash flow and business expenses. Additionally, supply chain financing acts as a financial middleman to alleviate cash flow issues along the supply chain. In this case, Validus will pay an SME distributor or supplier based on its bills prior to the due date.