Anyone tried GXBank? Feedback?

[mattmanticus]

@blurredcontours no need to worry about sustainable or not, just enjoy while it lasts. Its no diffrent from lazada/shoppee....whole malaysia uses them..but both are burning tru millions every month and completely unsustainable...just use while its up

 

[blurredcontours]

@mattmanticus True. But I'd argue Lazada and Shopee are not financial institutions where your hard earned money is held. Personally I'd rather not get caught holding the bag and I have other ways to make money.

 

[jess25]

@blurredcontours Shopee does have shopeepay tho. And GX is protected by PIDM so your money is safe

 

[ivan777]

@blurredcontours

Call me old fashioned, but I'd rather not park my money with a bank run by an e-commerce company that focuses on supergrowth at the cost of burning through investor money; taking unfair cuts from merchants and delivery riders; and monopolizing the industry. Grab may have a good product, but the business model sucks.

The deposits are PIDM ensured, Grab can be as sucky as they want to be, but for the average folk, their deposits are secured.

If anyone thinks GXBank giving out 1% cashback on debit transactions is sustainable, not sure what you are smoking. I guess giving out 3% on savings is possible, and I am assuming they are using money-market funds. People will be tempted now because GXBank is throwing goodies, but what will happen when the music stops? Would you really want to park your money there?

It's a campaign to attract users that should end by 5 November 2024. Not sure what you are smoking, but I don't see an issue with cashback campaigns to attract users.

What happens when the music stops? Like how you don't get any cashback with any other banks' debit card anyhow? Did Malaysians stop using them because MBB or PBB didn't give cashback for debit card usage?

On a side note, I'm surprised GXBank deposits are PIDM insured seeing that they are probably using MMF to make that 3%. That doesn't seem fair to other industry players like KDI, Versa, etc.

That is because GXBank, like the name implies, is a bank and therefore required to be under PIDM. You do know they have to pay annual premiums and levies to PIDM for this right? It's a cost more than a benefit. KDI and Versa are not banks, and as such they aren't members of PIDM.

 

[blurredcontours]

@ivan777

What happens when the music stops? Like how you don't get any cashback with any other banks' debit card anyhow? Did Malaysians stop using them because MBB or PBB didn't give cashback for debit card usage?

This is not an issue now but will be an issue later on in GXBank's life, when they start offering real loans. You can't be giving out cash willy-nilly. COFs will increase. When GXB turns off their goodies, people will withdraw funds to move to somewhere else. They will not able to match their assets with the liabilities and they will be in serious shit.

For now if they are just basing their income off MMF, that's fine. If they start to shift their model that's when cracks will appear.

I mean, if people want to take advantage of the the free money GXB is dishing out, sure, by all means. Just go in with your eyes open.

 

[ivan777]

@blurredcontours I mean, that's the point of Personal Finance. They dish out goodies, we maximise it.

People here cancel credit card the money they reduce miles redemption, it's no different to this.

 

[s3r10uschris]

@blurredcontours Why so negative? Legacy banks have been abusing customers for years, yet continue to be protected by regulators. More choice, esp if these digibanks make good on their financial inclusion promises, can only be positive for customers.

 

[joep222w]

@s3r10uschris How have they been "abusing" customers?

 

[s3r10uschris]

@joep222w Mainly how they treat customers at branches + exploiting customers via aggressive cross/upselling products. A wake up call is long overdue.

 

[blurredcontours]

@s3r10uschris I think you are also in for a wake up call if you think these digital banks won't do the same. Buy Now Pay Later has already been criticized as being predatory.

 

[blurredcontours]

@s3r10uschris Traditional banks don't give loans to people who can't afford it. That is why our banking system is what it is today and is fairly resilient. Even with that you still hear of people borrowing more than they can afford. When GXB (or any other digital bank) starts to offer loans, they will be scraping the bottom of the barrel customers (i.e. not credit worthy or high risk).

When these people are not able to pay back their loans (and they will not be able to) it will lead to high NPLs. BNM will just ask the large banks to bail them out and eat the losses.

https://theedgemalaysia.com/article/most-digital-banks-not-profitable-simonkucher-study-shows

Oh well, this is my own opinion. I'll see if I'm right.

 

[s3r10uschris]

@blurredcontours Well, Kaspi has been a very profitable digibank. And Aeon has made plenty lending to the underbanked. The model can work.

 

[blurredcontours]

RemindMe! 10 years

 

[exposetheevilthroughjesus]

@blurredcontours I will be messaging you in 10 years on 2034-04-02 04:34:39 UTC to remind you of this link

CLICK THIS LINK to send a PM to also be reminded and to reduce spam.

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[wenjie]

@blurredcontours Savage lol

 

[ericdude]

@eeevie So far so good, love their 3% interest. Moved all my cash there, no down time experienced.

There’s a 5% interest promo in the next two week if i recalled. Only for 1 month tho

 

[rebekah_h]

@ericdude 3% interest per annum or daily?

 

[mariz]

@rebekah_h 3% interest per annum (yearly), given daily (take that 3% interest divide by 365/366 days) multiply by the amount you keep in the bank.

 

[ant101]

@eeevie I moved all my spare cash there. Daily payout of nearly FD-equivalent rates is very attractive. Everyday the interest give me free kopi (mamak kopi, not starbucks kopi)!

 

[bunnycloud]

@eeevie Performance-wise it is satisfactory. With my samsung phone, it rarely glitches and the fingerprint login has been smooth and fast (quicker than my main bank's implementation). I've been using it since its release and so far, I have not encountered any money deposit issues.

I've also been using it more regularly to pay for airplane tickets, shopping, bills, food & drink, and steam game purchasing. Not once have I encountered problems with the transaction failing and the authentication has been non-glitchy so far.

In fact, nowadays I am treating GXbank as if it's a buffer bank account for myself. I put in only the necessary amount of funds I'd need per month and using only GXbank to pay for essentials. Now, my main bank account is less exposed and hopefully reduces my risks to fraud or other malicious attempts from scammers/hackers. If you are wondering why I have not used an ewallet to be a buffer in the past, it's simply because it is not PIDM insured, and hence I do not dare store a one-month worth of essential money in there. I might be too paranoid but yeah, just my personal opinion on how to protect my money.