Digibank GXS entering consumer loans market at inopportune time

SINGAPORE’S three local banks have just finished reporting their results for the first quarter of this year. No surprise, their net interest margins (NIMs) are still strong.

The higher interest rate environment has allowed the banks to charge more for loans. And although they have also raised interest rates on current accounts and savings accounts, the margin they enjoy is still a significant one.

So, when GXS bank announced the launch of its first credit product, a flexible loan offering, it would appear as if the fledgling digital bank is taking the first step towards building a profitable business line.