Malaysia’s GXBank seeks wider growth as business lending expands

Malaysia’s digital lender GXBank is seeking regulatory approval to move beyond the initial restrictions placed on new digital banks, as its lending business expands. The application follows a September agreement with the International Finance Corporation to support financing for smaller businesses with limited access to conventional credit.

Bank seeks removal of asset limit
Chief executive Kaushik Chowdhury told The Edge Malaysia that Bank Negara Malaysia was evaluating GXBank’s application to leave its foundational phase early. During that phase, Malaysian digital banks face a RM3 billion limit on total assets.

GXBank reported assets of RM2.54 billion at the end of June, including a RM1.21 billion lending portfolio. Deposits stood at RM2.03 billion, while the bank said it served more than 1.6 million customers. Approval would give it greater room to expand its balance sheet.

IFC agreement supports smaller borrowers
The risk-sharing partnership, announced on 14 September, is intended to support an eligible micro, small and medium-sized enterprise loan portfolio of up to US$110 million.

IFC’s maximum exposure is US$4.95 million through an unfunded guarantee covering part of the portfolio’s initial losses. The US$110 million figure represents the targeted lending portfolio, rather than a cash investment by IFC.

The arrangement is designed to help GXBank lend to businesses that lack extensive financial records or physical collateral. It combines the bank’s digital credit assessment with protection against a portion of potential defaults.

Business accounts provide a starting point
GXBank said approximately 15,000 smaller businesses had opened accounts and more than 5,000 loan drawdowns had been recorded. Its business lending strategy includes sole proprietors and merchants whose income patterns can make conventional credit assessments more difficult.

The bank has also worked with Credit Guarantee Corporation Malaysia on guaranteed financing. Separately, it completed a trial with local fintech Finory to examine automated account onboarding using business licences issued by local authorities.

Profitability remains a target
Expansion has yet to translate into a net profit. GXBank reported a first-half 2026 loss after tax of RM122.1 million, compared with RM119.9 million a year earlier, despite higher operating income.

Management continues to target its first full-year profit in 2028. The immediate priorities are expanding lending, managing credit risk and obtaining approval for growth beyond the foundational asset limit.

Newshub Editorial in Asia – 9 October 2026