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High Drama and Big Impact: Trump’s Bold Tariff Plans and What to Expect

Expect significant new tariffs on Chinese imports and moderate levies on goods from other nations , as President-elect Donald Trump rolls out his protectionist agenda. However, with his preference for chaotic policymaking and sudden shifts , there’s uncertainty on how soon these import taxes will actually hit. Dubbed “ Tariff Man ,” Trump aims to use tariffs both strategically and tactically . He’s mentioned taxing all Chinese goods up to 60% and potentially setting 10%-20% tariffs on imports globally , but details on these plans remain vague . Key players within Trump’s team are divided: Robert Lighthizer , a staunch tariff advocate, sees permanent duties as crucial to balance US trade , while others, like billionaires John Paulson and Scott Bessent , view tariffs as temporary leverage. Trump’s previous administration had mixed feelings, especially on national security-related trade limits , which he sometimes dismissed, favoring an “open for business” approach. High-profile busin

Digital Bank GXS Aims for Profit by 2027 with Aggressive Growth Strategy

GXS Bank Pte Ltd, the digital bank supported by Grab Holdings Ltd and Singapore Telecommunications Ltd (Singtel), has set an ambitious goal to achieve profitability by March 2027, focusing on doubling its loan book every six months.

Key Takeaways:

  • Target Market: GXS Bank targets financially underserved sectors, including gig economy workers and small businesses, primarily those transacting through the Grab app. This creates a valuable data source to assess creditworthiness.

  • CEO's Vision: “We’re not competing for the same customer that the big bank is trying to get,” said GXS group CEO Muthukrishnan Ramaswami. “There are so many people who are underserved that there is enough money to be made by serving them.”

  • Competition: GXS Bank faces stiff competition from Singapore’s established brick-and-mortar banks, DBS Group Holdings Ltd, Oversea-Chinese Banking Corp, and United Overseas Bank Ltd, which dominate the market.

  • Financial Performance: GXS reported losses of S$152.1 million in 2023, up from S$113.7 million in 2022, as it expanded operations. The bank offers incentives like bonus interest to attract deposits, which are capped at S$75,000 per customer.

  • Growth Goals: Ramaswami aims for S$3 billion in deposits and a S$2 billion loan book over the next three years. The average loan size in Singapore is about S$6,000. Higher loan volumes and cost-effective digital channels are expected to drive profitability.

  • Ownership and Funding: Grab holds 60% of GXS, while Singtel owns the remaining 40%. They have committed S$1.5 billion in capital through March 2027, with about half already invested. There are no plans for an IPO within this period.

  • Leadership Change: GXS Bank announced that CEO Charles Wong stepped down, with Ramaswami taking over his responsibilities as group CEO.

Challenges and Opportunities:

  • Scaling Up: Scaling the business is a significant challenge. GXS needs to expand beyond its current ecosystem to achieve sufficient volume, according to analysts like Zennon Kapron of Kapronasia.

  • Regional Expansion: Sarah Jane Mahmud of Bloomberg Intelligence suggests that limited earnings prospects may push digital banks in Singapore to consider regional expansion. Ramaswami indicated that while Singapore will drive revenues for the next few years, Indonesia's larger population offers long-term growth opportunities.

  • Southeast Asian Market: Digital banks across Southeast Asia aim to serve the unbanked or underbanked via mobile apps, with mixed success so far.

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