The GXS FlexiCard is designed to help new-to-credit consumers spend prudently while building up their credit worthiness
SINGAPORE, Oct. 8, 2024 /PRNewswire/ — GXS Bank today announced the launch of the GXS FlexiCard, Singapore’s first and only credit card that charges flat fees in lieu of interest on outstanding balances.
The GXS FlexiCard is designed for consumers who are new to credit or who often struggle with access to credit products due to a lack of credit bureau history. These include individuals who are about to embark on or have just started their careers, gig workers and entrepreneurs. To ensure that these consumers have an option to credit while not being overleveraged, the GXS FlexiCard has a limit of S$500.
GXS FlexiCard-holders can choose to settle their credit card bill in full or make the required minimum payment with a S$5 extension fee. The Bank is disrupting the market practice of charging daily interest on outstanding balances after the repayment due date for credit cards, thereby easing hefty interest payments for consumers.
Ms Jenn Ong, Head of Retail at GXS Bank, said, "We are thrilled to introduce the GXS FlexiCard, our latest product that continues to push the boundaries of financial inclusivity. The GXS FlexiCard is available to eligible Singaporeans and permanent residents, including the one in five workers[1] here who earn less than $2,500 a month and do not meet the income requirement for most credit cards in the market. With the GXS FlexiCard, these consumers now have the opportunity to start building their credit history.
"As Singapore’s homegrown digital bank, we are with our customers every step of the way as they build their credit worthiness and thrive financially. The GXS FlexiCard could be their first credit product and that is why we designed it to safeguard them from the burden of snowballing interest repayments while ensuring flexible repayment options, transparent charges, and instant cashback."
GXS FlexiCard – a stepping stone to credit worthiness
The GXS FlexiCard is open to eligible Singaporeans and permanent residents aged 21 to 55. There is no income requirement to apply for the GXS FlexiCard. Successful applicants will receive a credit limit of S$500.
Similar to the GXS Debit Card, the GXS FlexiCard offers instant cashback for eligible transactions. Additionally, travellers will benefit from no foreign transaction fees on their overseas purchases.
GXS FlexiCard-holders will also enjoy the flexibility for which the GXS Bank experience is known. At the point of application, they are able to choose their preferred repayment date according to what best fits their preferences and ability to pay.
Given that late credit card repayments will impact an individual’s credit rating, GXS FlexiCard customers will receive timely prompts and nudges via the GXS Bank app before their monthly repayment date.
There may be occasions when customers are unable to repay their outstanding balance in full. To extend their payment, GXS FlexiCard customers simply need to pay the minimum payment amount which can be from as low as S$15[2] and a flat fee of S$5.
At the same time, to encourage good credit discipline and to discourage defaults, customers who missed their repayment or repay less than the minimum payment amount will be charged a late fee of S$50. This is also less than the typical late charge of S$100 in the market today.
A full suite of financial solutions
With the launch of GXS FlexiCard, GXS Bank now offers a comprehensive range of retail banking products that empower customers to save, spend and borrow better.
This includes the GXS Savings Account that credits interest daily and includes a Boost Pocket feature that boosts the interest rate customers can earn on their savings. GXS Savings Account-holders may also apply for the GXS Debit Card that offers unlimited rewards on eligible transactions and no foreign transaction fees.
For customers looking for help to stretch toward their goals, GXS FlexiLoan offers a flexible revolving line of credit that enables customers to make multiple drawdowns. Interest is calculated on a daily non-compounding basis, allowing customers to save on interest when they repay early. In the first year GXS FlexiLoan was launched, customers were able to cumulatively save S$4million in interest by repaying their loans early. GXS FlexiLoan customers can also choose to take a GXS FlexiLoan Balance Transfer where they enjoy zero per cent interest with a one-time processing fee.
More details on GXS FlexiCard can be found at www.gxs.com.sg/flexicard.
[1] Ministry of Manpower Labour Market Statistics: https://stats.mom.gov.sg/Pages/IncomeTimeSeries.aspx
[2] Typical minimum payment in the market today for credit cards is S$50.
About GXS Bank
GXS Bank is a digital bank with a relentless focus to make banking better for the everyday consumer and small business. This includes Singapore’s underserved individuals and businesses.
The Bank aims to improve financial inclusion and to drive financial revolution for its customers through the secure and ethical use of technology and data.
GXS Bank holds a banking licence issued by the Monetary Authority of Singapore.
It is owned by a consortium consisting of Grab Holdings Inc. – Southeast Asia’s leading super app, and Singtel – Asia’s leading communications technology group.
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