KUALA LUMPUR (April 29): Grab Holdings Ltd said the digital bank consortium comprising GXS Bank Pte Ltd — its digital bank joint venture with Singapore Telecommunications Ltd (Singtel) — and Malaysian investors including Kuok Brothers Sdn Bhd will enable local micro-SMEs and other financially underserved segments such as gig economy workers.
In a statement on Friday (April 29), it said SMEs are expected to be key beneficiaries of digital banking, pointing out that this segment forms the backbone of the Malaysian economy — representing over 97% of overall business establishments, contributing approximately 38% of national gross domestic product, and employing nearly half of the working population.
Subject to regulatory approvals, Grab said GXS Bank will hold a 55.45% stake in the proposed digital bank, which will be led by Lai Pei Si as its chief executive officer. She previously served as managing director and country head of the consumer, private and business banking segments for Standard Chartered in Malaysia.
She will be assembling a team with diverse backgrounds in finance and technology, with over 200 roles targeted to be filled by launch, including in the areas of product design, data, technology, risk and compliance.
“The Malaysia digital bank consortium is honoured to be given the opportunity to build a next-generation digital bank and drive access to financial services for underbanked Malaysians. We are thankful to Bank Negara Malaysia (BNM) for their trust in us.
“We will leverage the consortium’s combined strengths, including our technology expertise, data from highly-engaged consumers using everyday services, experience providing financial services across Southeast Asia, and deep understanding of the Malaysian market, to redefine the banking experience for underbanked Malaysians and improve their economic outcomes — small businesses will have access to growth capital, and individuals the opportunity to dream bigger,” said Grab Financial Group (Digibank) senior managing director Reuben Lai.
Singtel group chief financial officer Arthur Lang said the telco is glad to have the opportunity to support Malaysia’s vision of greater financial inclusion for its people.
“Our consortium partners and ourselves are excited to build a platform that will provide innovative digital banking services for the underbanked as well as the SMEs that are the backbone of the Malaysian economy.
“This aligns closely with our goal of harnessing technology to empower people across the region, bringing greater options and positive change as we build something special across the region. We aim to spur fintech innovation that will transform the banking experience, making financial services more accessible, relevant and affordable,” said Lang.
Earlier on Friday, BNM named the consortium of GXS Bank and Kuok Brothers as one of the five successful applicants for the digital bank licences as approved by the Minister of Finance.