|
Getting your Trinity Audio player ready...
|
The financial landscape is rapidly evolving, with digital innovations paving the way for more inclusive banking solutions. GXS Bank, a digital bank in Singapore, is at the forefront of this transformation, focusing on gig economy workers, entrepreneurs, and young adults who are often underserved by traditional banking systems. According to the GXS Progress Quotient 2024, these groups remain uncertain about their financial futures, highlighting a significant area for improvement and innovation.
The GXS Progress Quotient (GPQ) is an index created to gauge individuals’ perceived potential for financial progress. This score, derived from factors such as financial decision-making behaviours, perceived past and future financial progress, and emotional responses to financial decisions, provides a comprehensive view of financial confidence. The 2024 survey revealed that underserved consumers have a GPQ score of 5.1 out of 10, indicating a moderate level of confidence in their financial future.
GXS Bank’s Group CEO emphasises the importance of understanding consumers’ relationships with money to improve banking services. The insights from the GPQ survey have already informed GXS’s strategies to enhance customer experiences, particularly through financial literacy initiatives aimed at reducing financial anxiety.
One significant finding from the GPQ survey is the heightened stress and anxiety experienced by underserved consumers, particularly gig economy workers and young professionals. While stress and anxiety are common across all demographics, they are notably higher among self-employed individuals, with 43% experiencing stress and 41% feeling anxious about their financial situation. These negative emotions are compounded by limited access to financial education and relevant banking products.
Recognising these challenges, GXS Bank has prioritised the development of banking solutions tailored to the needs of underserved segments. For instance, the bank offers products that credit interest daily on savings, allowing customers to benefit from daily compounding. This approach is designed to help consumers grow their passive income, a crucial aspect of financial stability, especially in the face of rising living costs and inflation.
GXS Bank also places a strong emphasis on leveraging technology to improve financial inclusion. The bank is backed by a consortium and operates independently with a focus on secure and ethical use of technology and data. This technological foundation enables GXS to offer innovative banking solutions that address the unique needs of underserved consumers.
The GXS Progress Quotient 2024 survey, which included 1,300 Singaporeans and permanent residents, provides valuable insights into the financial attitudes and behaviours of different demographic segments. These insights are crucial for GXS Bank as it continues to refine its products and services to better meet the needs of its customers.
GXS Bank is committed to using technological innovation and strategic partnerships to empower underserved consumers. By addressing the unique challenges faced by gig economy workers, entrepreneurs, and young professionals, GXS aims to enhance financial inclusion and drive high-quality economic development in Singapore. Through continuous innovation and a deep understanding of consumer needs, GXS Bank is setting a new standard for digital banking in the region.
