Launched in June 2022, ANEXT Bank, a digital wholesale bank under Ant International, has focused on empowering micro, small, and medium enterprises (MSMEs) through tailored, accessible financial solutions. With products and services specifically designed to address the unique challenges MSMEs face, ANEXT has made strides in expanding financial inclusion. CEO Toh Su Mei shared insights into ANEXT’s journey, its pioneering offerings like remote onboarding and multi-currency accounts, and the bank’s continued innovation in embedded finance and sustainability. This commitment positions ANEXT as one of the frontrunners in bridging financial inclusion gaps and supporting MSMEs' growth in the digital era.

Mission-driven approach to financial inclusion

ANEXT Bank’s inception aligns with Singapore’s broader initiative to promote digital transformation in the banking sector. In 2020, Singapore introduced its first digital wholesale bank licences, granting ANEXT the opportunity to target MSMEs that often fall outside traditional banking due to their size or lack of financial history. Toh explained that ANEXT was founded with the mission to reimagine financial services for MSMEs, a sector that comprises over 99% of Singapore’s enterprises and contributes significantly to the regional economy. With 69% micro businesses, ANEXT addresses a critical segment within the business ecosystem.

“Our licensing as a wholesale bank gives us the flexibility to serve MSMEs across borders,” Toh noted. In fact, ANEXT serves clients from 79 nationalities, with 30% of clients being foreign business owners. This international presence underscores ANEXT’s commitment to supporting businesses with cross-border needs, and its remote onboarding process—one of the first in the market—allows MSMEs to open accounts or apply for loans digitally, bypassing travel requirements and ensuring a seamless, inclusive experience.

Breaking down barriers with accessible financial products

Recognising that traditional financial products often fall short for smaller businesses, ANEXT has focused on creating low-barrier, flexible offerings tailored to MSME needs. The bank’s loan products, for instance, allow minimum amounts as low as SGD 5,000 (approximately $3,650), enabling smaller businesses to access credit without the high thresholds common in traditional banking. This flexibility is designed to address MSMEs’ most pressing challenges, such as cash flow management and access to working capital.

The bank’s multi-currency accounts provide additional value, allowing MSMEs engaged in cross-border trade to manage various currencies seamlessly. These accounts are also interest-bearing, helping MSMEs to earn a return on their balances, which can aid cash flow. “Our products address the core financial needs of MSMEs,” Toh said. “By designing accessible and practical solutions, we allow small businesses to manage day-to-day financial needs with greater ease.”

Harnessing data for personalised and seamless service

In line with its digital-first approach, ANEXT uses data-driven insights to enhance the MSME experience. By analysing customer behaviours, transaction patterns, and financial profiles, the bank tailors its services to meet each business’s needs. “For many MSMEs, access to investment products has been limited by lack of know-how and technical barriers,” Toh said. “Our approach is to make complex financial products digestible and accessible, aligning them with each customer’s unique needs.”

ANEXT has streamlined traditionally complex processes such as investment onboarding, enabling MSMEs to make informed financial decisions without needing a relationship manager. This efficient, self-directed model allows business owners to access products suited to their financial literacy and risk profile, all through ANEXT’s digital platform.

Strong financial growth reflecting market demand

ANEXT’s recent financial results reflect its significant impact and traction among MSMEs. Over the past year, customer loans grew by 434%, reaching SGD 222 million (approximately $162 million), while deposit balances surged by 368%, totaling SGD 295 million (approximately $215 million). The bank’s gross income reached SGD 24.5 million (approximately $18 million), a figure that underscores its revenue potential in the digital wholesale banking sector. “These numbers demonstrate the demand for accessible financial services among MSMEs,” said Toh, highlighting that ANEXT’s customer-centric approach has attracted a diverse and expanding client base.

Commitment to sustainable finance and digital transformation

Beyond its core banking services, ANEXT is committed to helping MSMEs transition to sustainable business practices. The upcoming “Net Zero Collective” initiative is designed to lower barriers to sustainability for MSMEs, providing resources and tools to aid their journey toward greener operations. Toh noted that as MSMEs become more integrated into global supply chains, the need for sustainable practices has grown, driven by cost-saving and regulatory pressures.

On the digital front, ANEXT prioritises security and compliance, leveraging technologies like privacy-preserving computing to protect data. This is especially critical for cross-border clients who require secure transactions across jurisdictions. “Our technology-driven approach isn’t just about security—it’s about empowering MSMEs with tools that respect their operational and privacy needs,” said Toh, emphasising the bank’s commitment to responsible innovation.

Collaborative growth through embedded finance

ANEXT has also embraced embedded finance as a growth strategy, embedding its services within various ecosystem platforms such as e-commerce, logistics, and advertising. By partnering with these platforms, ANEXT extends its reach to MSMEs within their day-to-day operational channels, offering a seamless integration of banking services into their business workflows. “Our goal is to offer financial services without borders,” said Toh. “Whether through embedded finance or multi-currency capabilities, we focus on creating a unified banking experience for MSMEs across the globe.”

This collaborative model aligns with the broader mission of Ant International, leveraging technology to scale and adapt services to the diverse needs of MSMEs across Southeast Asia and beyond. ANEXT’s partnerships and platform integrations enable it to remain agile and responsive in a rapidly changing market, ensuring that its offerings evolve in step with the business needs of its clients.

Strategic partnership with Schroders to enhance MSME investment opportunities

ANEXT Bank recently announced a strategic partnership with global asset management firm Schroders to lower investment barriers for MSMEs. This collaboration aims to provide MSMEs with access to a range of Schroders’ investment products, tailored specifically to address the needs of smaller businesses that often lack the liquidity or financial expertise required for traditional investment options. The partnership highlights ANEXT’s commitment to empowering MSMEs not only through credit access but also through long-term financial growth strategies.

“This collaboration is about more than just offering investment products,” Toh explained. “It’s about creating a pathway for MSMEs to participate in wealth growth that was previously out of reach for many of them. By working with Schroders, we’re introducing products designed with flexible terms and no lock-in periods, helping business owners maintain cash flow while still exploring investment opportunities.”

Through this partnership, ANEXT and Schroders plan to develop an array of accessible investment solutions, from fixed-income products to sustainable funds, that cater to the risk profiles and cash flow requirements of MSMEs. The collaboration also includes financial education initiatives aimed at helping MSME clients better understand investment options and make informed decisions, which is a critical part of ANEXT’s broader mission to support financial literacy among its clients.

The partnership’s first offerings are set to launch by early 2025, with ANEXT and Schroders aiming to expand product options over time. This aligns with ANEXT’s long-term vision of supporting MSME growth and helping them navigate both local and regional markets with financial security and resilience.

Empowering MSMEs for a sustainable and inclusive future

ANEXT Bank’s efforts underscore its mission to build a sustainable and inclusive future for MSMEs in Singapore and throughout the region. As it continues to expand its portfolio, ANEXT remains focused on digital innovation, partnerships, and sustainable finance. Under Toh’s leadership, ANEXT is setting the stage for a future where MSMEs can thrive through accessible, secure, and innovative financial solutions tailored to their unique challenges.