Thinking out of the box to carve a niche in Singapore’s saturated personal loan market

Customers benefit because this means that interest is computed based on the outstanding balance at the end of the previous day. If a prepayment is made, the outstanding amount is reduced which decreases the interest charges the following day, resulting in immediate interest savings.

One year on, our hypothesis that a loan designed right can alleviate pain points experienced by consumers has been proven right. Since we launched the GXS FlexiLoan in April 2023, GXS FlexiLoan customers have cumulatively saved over S$4 million in interest and we have disbursed over 100,000 loans. The savings they enjoy can go into funding their dreams and aspirations instead.

Making a difference for the underserved

At GXS, we are laser-focused on making a difference for the underserved. These are everyday men and women who could be successful entrepreneurs, or self-employed workers. Because they do not have a fixed monthly income, their credit bureau history may be thin. Same too for younger borrowers who just started their jobs and thus are new-to-bureau. These customers are creditworthy borrowers but still struggle to access a loan when they need one, or end up with high interest rates.

Some 15 per cent of our customers fall within this category. We are able to meet them where they’re at thanks to the backing of our ecosystem partners, Grab and Singtel*, which together serve more than 3 million customers in Singapore alone.

When our customers transact across the ecosystem, and if they give us consent, we can feed the data into our proprietary ecosystem risk score which we overlay with their credit bureau score.

A self-employed person without sufficient credit history may not qualify for a loan by other banks, or be offered a lower loan quantum or asked to put in additional collateral. But if this person rates highly on our ecosystem risk score, they could qualify for a GXS FlexiLoan without having to jump through extra hoops.

As they continue to use their GXS FlexiLoan prudently and for their needs, they are building up their credit bureau score which in turn will help them as they progress further in their financial journeys.

Uplifting customers by putting them at the heart of the matter

It certainly would have been easier to build a model that—similar to existing market practices — charges the same interest on a monthly basis, regardless of whether customers pay their loans early. We chose a model that is able to calculate interest dynamically. We did this because it makes sense for our customers.

Consumers will always need financing regardless of the market cycle. As the cost of living continues to increase, it is important that they are offered accessible and affordable financial products that can help them reach their goals.

That is why we’re doubling down on our efforts. It took us a year to help 100,000 dreams take flight and we aim to double it this year. 

Which brings me back to the original question I asked: Does Singapore need yet another loan product?

My answer is still “yes”. But it must be one that is personalised and fit-for-purpose. That is why we designed the GXS FlexiLoan from the ground-up, challenging the conventional notions of what a personal loan is and can do.

And as we continue to evolve the product, based on customer feedback, powered by technology, our offering will only get more personalised. 

GXS holds a banking licence issued by the Monetary Authority of Singapore.

*GXS is backed by a consortium consisting of Grab Holdings Inc.—Southeast Asia’s leading super app, and Singtel—Asia’s leading communications technology group. GXS is a separate entity and is not associated with the businesses of Grab Holdings, Singtel and their entities. The GXS FlexiLoan is provided by GXS.