Grab and Singtel have announced that Bank Negara Malaysia will grant their digital bank joint venture, GXS Bank, and a consortium of Malaysian investors, including Kuok Brothers, with a full digital banking license, according to a Friday (April 29) press release.
The digital bank joint venture will hold a 55.45% stake in GXS Bank, which will be led by Pei Si Lai, a financial services industry veteran with more than 25 years of experience, the release stated. She will build a team that looks to meet the needs of the estimated 50% of Malaysians who are underserved or unbanked.
The team is expected to be at least 200 people by launch, including employees in product design, data, technology, risk and compliance, according to the release.
The new digital bank is expected to “enable local micro-[SMBs] and other financially underserved segments such as gig economy workers to access a suite of financial services that will serve them through their lifecycle,” the release stated.
Small- to medium-sized businesses (SMBs) represent more than 97% of Malaysia’s business establishments, contribute approximately 38% of national gross domestic product (GDP) and employ almost half of the working population, according to the release.
“The opportunity to build the Malaysian digital bank from the ground up and be at the forefront of the fast-evolving Malaysian FinTech landscape is incredibly exciting,” Lai said in the release. “Aside from leveraging agile banking technology that will enable us to offer tailored and unique banking experiences for our consumers, my team and I will also tap on the strong support from our shareholders and strategic partners, as well as guidance from Bank Negara Malaysia and the Ministry of Finance, to deliver on our mission to serve and empower underbanked Malaysian communities such as gig workers and small businesses. We will also actively partner with leading industry players to advance the Malaysian financial landscape.”
In January, Grab and Singtel each bought 16.3% of Indonesia’s PT Bank Fama International to expand their offering into that nation.
Read more: Singtel, Grab Each Snag 16.3% of Indonesia’s PT Bank Fama
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