• Malaysia’s first digital bank, GXBank, officially launched after beta testing, offering up to 3% savings interest.
• It plans to introduce a Mastercard debit card soon.
• Regional activity suggests traditional banks face disruption from digital-only competitors.
Inside the Launch of Malaysia’s First Digital Bank
After initially releasing a beta trial version of its mobile application earlier in the month, Malaysia’s GXBank has formally launched its digital banking services to the general public, becoming the first bank in the country to operate as a purely digital entity.
The new bank offers an attractive 3% annual interest rate on savings held in users’ main accounts or “Pockets,” GXBank’s built-in savings goal feature.
“Nearly 50% of our beta testers used Pockets to save towards specific goals,” said GXBank CEO Pei Si Lai. “We’re excited to help even more Malaysians take control of their finances.”
On the Virtual Horizon
The bank also announced plans to launch the GX Card, a debit card offered in partnership with Mastercard, but did not specify the launch timeline.
GXBank was the first of five digital bank license applicants to receive approval from Bank Negara Malaysia, the country’s central bank.
Other license holders waiting in the wings include Sea Group-YTL Digital Capital and Boost Holdings-RHB Bank joint ventures.
Redefining Financial Services
Across the border, Singapore digital bank GXS Bank saw deposits hit nearly $3 million by the end of last year after raising deposit limits to $56,000 per account.
Regional super apps Grab and Singtel have also set sights on digital banking in Indonesia via investments in Bank Fama.
The flurry of activity suggests that financial services incumbents in Southeast Asia face an immanent wave of digital disruption.
With promises of higher returns and smooth mobile experiences, neobanks like GXBank may soon attract customers away from traditional banks.
GXBank Officially Launches, Offering Up To 3% Interest
