GXS Bank must incentivise usage to chart its path to profitability

IN AN unpopular move, GXS Bank last week slashed interest rates for its savings accounts, called Savings Pockets, to 2.68 per cent – an 80 basis point drop from 3.48 per cent previously.

The digital bank also raised its interest rates for Main Accounts to 2.38 per cent from 0.08 per cent, and upped reward points that GXS account holders receive for using Grabpay or Singtel Dash.

But with interest rates expected to remain on the uptrend, the cut in interest rates for savings accounts was much to customers’ chagrin.