- Grab invested an additional $109M into its digital banking JV, GXS Bank.
- GXS Bank launched in Singapore last September as a licensed digital bank.
- Grab aims to tap its super app user base to expand GXS Bank regionally.
Singapore-based super app Grab has again displayed its commitment to digital banking through an additional S$145.10 million (approximately US$109 million) investment in GXS Bank, made via its wholly-owned subsidiary As-DB Holdings Pte Ltd.
This caps a string of capital injections by Grab over the past year as GXS Bank, a joint venture between Grab and telecom giant Singtel, aims to cement itself as a leading digital bank in Southeast Asia.
One of SG’s first licensed digital banks
Launched in September 2022, GXS Bank was one of Singapore’s first licensed digital banks. Since then, Grab has made multiple large investments – S$137 million in July 2022 and S$75.8 million in April 2023 – as GXS looks to rapidly expand its customer base by leveraging Grab’s super app ecosystem.
Regulatory filings show that Grab and Singtel have already earmarked an additional S$229.5 million for injection into GXS Bank in Q3 2024.
A bright future in the market
In neighboring Malaysia, GXS Bank subsidiary GX Bank Malaysia commenced operations late last year and has already onboarded over 100,000 users, showing strong early traction in the market.
Grab and Singtel have also extended their digital banking footprint to Indonesia via investments in Bank Fama and Bank Allo.
Targets to be a leading digital bank
GXS Bank seems poised to achieve its goal of becoming a leading digital bank for consumers and small businesses across Southeast Asia.
Its regional expansion will enable the bank to tap into Grab’s extensive user base and promote financial inclusion across multiple rapidly growing Asian economies.
