KUALA LUMPUR – GXBank, the country’s first digital bank to be licensed by Bank Negara Malaysia (BNM), intends to introduce cyber insurance protection to shield its users from potential harms resulting from financial fraud.
According to GXBank chief executive officer Lai Pei Si, the scheme will be the next installation in a series of cybersecurity-related measures the bank has undertaken to address public concerns about online scams.
“In a short time, we will launch our version of cyber insurance, which will cover financial scams. Online fraud can happen to anyone, so it’s a meaningful product for us,” Lai told Scoop when met at the sidelines of the officiating ceremony for GXBank’s regional headquarters in First Avenue at Petaling Jaya today.
Besides its upcoming cyber insurance policy, Lai said the bank, which received BNM and the Finance Ministry’s approval to commence operations effective September 1 last year, would also implement other initiatives to safeguard its users.
“We have the right technological infrastructure and tools to monitor (suspicious online activities), thus allowing us to detect issues (if they arise).
“We also provide financial education – not only with our staffers – but we also work with different agencies to ensure that we can continuously educate our users on how to avoid scams.”
Deputy Finance Minister Lim Hui Ying told the Dewan Rakyat on July 9 that banks must bear responsibility for losses incurred by scam victims due to the financial institutions’ negligence or weaknesses.
The deputy minister added that the burden to conduct detailed investigations into unauthorised banking transactions lies with the banks, following reports on how at least RM1.3 billion was lost in about 30,000 cases of online fraud last year.
Meanwhile, Lai highlighted that a defining factor separating GXBank from other traditional banks is the former’s fully online operations, which provide ease of access for users keen on adopting a digitised financial management approach.
“GXBank is no different from conventional banks in the sense that we’re also regulated by BNM and our users’ deposits are protected by the Malaysia Deposit Insurance Corporation.
“However, while traditional banks have a physical location, we exist solely in a digital form with an end-to-end digital mechanism. If users want to open an account, all they have to do is input their details on our app.
“The entire (account creation) process takes less than four minutes since users won’t have to visit a branch at any point – it’s a more convenient and friendlier experience.”
During the event today, GXBank also launched its GX Untuk Semua initiative aimed at nurturing local tech talent while developing top industry practices and innovative solutions.
While GXBank’s financial inclusion initiative Impian GIGih has managed to provide bursaries to 1,200 recipients in Kelantan and Johor, GX Untuk Semua is seeking to leverage on the latest technological advances to supply financial access and sustainable solutions for the underserved.
GX Untuk Semua is also part of the bank’s RM1.5 billion investment into Malaysia over the next five years, with the campaign targeted to solidify the nation’s position in the digital banking landscape.
For the record, GXBank has managed to garner more than 750,000 users who have opened more than 800,000 savings accounts since the launch of its platform last November, with over 13 million transactions collectively recorded via its GX card and QR code.
The event today was officiated by Prime Minister Datuk Seri Anwar Ibrahim accompanied by Digital Minister Gobind Singh Deo and Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz.
Also present at the function was GXBank chief executive officer Lai Pei Si, the bank’s board of directors and shareholders, Grab Holdings Inc CEO and chairman Anthony Tan as well as Grab Malaysia’s senior management.
GXBank is a subsidiary of GXS Bank Pte Ltd, a digital joint venture between Grab Holdings Ltd and Singapore Telecommunications Ltd (Singtel) with the support of a consortium of other Malaysian investors, including the Kuok Group. – August 2, 2024