Singapore:
ANEXT Bank, a digital wholesale bank incorporated in Singapore and a wholly-owned subsidiary of Ant International, today announced its partnership with global asset management firm Schroders to lower investment barriers for micro, small and medium enterprises (MSMEs).
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ANEXT Bank and Schroders plant seeds of growth to mark the partnership (Left: Ms Lily Choh, Head of South Asia and CEO, Schroders Singapore; Right: Ms Toh Su Mei, CEO, ANEXT Bank) (Photo: Business Wire)
Through this partnership, ANEXT Bank will expand its product suite to include a selection of investment funds managed by Schroders, offering MSMEs more opportunities to grow their wealth alongside ANEXT Fixed Deposit, the bank’s existing investment product. The first fund from Schroders is expected to be available through ANEXT Bank by 1Q 2025, subject to regulatory approval.
Over 30% of ANEXT Bank’s customers are Foreign Business Owners (FBOs) from 78 nationalities, operating businesses incorporated in Singapore, while 69% are micro businesses. This expanded offering will allow a diverse global community of MSMEs to manage and grow funds with greater flexibility, while ensuring cash flow liquidity with no lock-in period required.
Despite the wide availability of financial products, many small business owners find it challenging to start investing due to high entry barriers and limited financial literacy. According to a recent survey1 conducted by ANEXT Bank, four in five MSMEs have never purchased investment instruments. The top three barriers cited were a lack of excess liquidity, insufficient investment know-how, and limited suitable investment options.
Ms Eileen Chan, Director at Premium Orchids Singapore echoes the sentiment on investments: “As a small business owner, investing has never really been on my radar because I always thought it was only for larger companies with substantial capital. With ANEXT Bank’s new investment offerings, I’m excited about the opportunity to grow my bank balance, even with small amounts. For businesses like mine, every cent counts. This initiative also spares me the hassle of navigating the complexities of different investment options, allowing me to focus on running my business.”
The partnership between ANEXT Bank and Schroders is designed to make investments more inclusive, catering to the needs of small businesses. By leveraging secure APIs to facilitate seamless integration between ANEXT Bank’s online banking platform and Schroders’ products, the collaboration allows ANEXT Bank customers to conveniently access, manage, and track their investments directly within the platform.
ANEXT Bank and Schroders will also explore innovation to enhance investment access for MSMEs through asset tokenisation as well as sustainable investment solutions, supporting their sustainability journey. In addition, the two companies will collaborate to promote financial literacy among MSMEs, helping them better understand investments and wealth management, thereby lowering barriers to entry.
“The partnership with Schroders marks a significant milestone for ANEXT Bank as our first collaboration with a global partner. By combining the strengths of both companies, we are bringing greater value to MSMEs by making high-quality investment products more accessible and opening up the world of financial growth to small businesses. Leveraging Schroders’ leadership and decades of expertise in the investment space, alongside ANEXT Bank’s insights into MSMEs and tech-driven innovation, we are excited to take a holistic approach to driving financial inclusion. This includes not only offering innovative products but also providing knowledge and capacity-building to making financial services more inclusive and accessible to micro and growing businesses,” said Ms Toh Su Mei, CEO of ANEXT Bank.
“MSMEs are the backbone of Singapore’s economy, comprising 99% of its enterprises. We are excited to partner with ANEXT Bank to better serve this dynamic client segment. This marks our first partnership dedicated to supporting MSMEs by enabling them to start their investment journey and providing easy access to tailored educational investment content. By leveraging ANEXT Bank’s deep expertise in the MSME community alongside our best-in-class global investment capabilities, we aim to develop innovative solutions that will unlock new investment opportunities and address their evolving needs. This partnership exemplifies our commitment to financial inclusion and empowers MSMEs to thrive in a rapidly changing financial landscape,” said Ms Lily Choh, Head of South Asia and CEO, Schroders Singapore.
About ANEXT Bank
Incorporated in Singapore and regulated by the Monetary Authority of Singapore, ANEXT Bank is a digital wholesale bank providing innovative digital financial services to empower local and regional micro, small and medium enterprises (MSMEs) to future-proof their businesses through digital adoption, sustainable practices and global expansion.
With embedded finance at the core of its strategy, ANEXT Bank is dedicated to accelerating fintech development and financial inclusion in the region. Adopting an open and collaborative approach, ANEXT Bank believes in joining hands with ecosystem partners to provide MSMEs with financial services that are accessible, effortless and secure.
ANEXT Bank has been recognised with numerous awards, including the “World’s Top FinTech Companies of 2024” by CNBC and Statista, “SBR Technology Excellence Awards 2024” in the Fintech – Banking category, and the “SME Partnership Initiative of the Year 2024” by Asian Banking & Finance Wholesale Banking Awards in the Singapore Domestic Bank category.
ANEXT Bank is a wholly-owned subsidiary of Ant International. For more information on ANEXT Bank, please visit www.ANEXT.com.sg.
Schroders plc
Schroders is a global investment management firm with £773.7 billion (€912.6 billion; $978.1 billion) assets under management, as at 30 June 2024. Schroders continues to deliver strong financial results in ever challenging market conditions, with a market capitalisation of circa £6 billion and over 6,000 employees across 38 locations. Established in 1804, the founding family remains a core shareholder, holding approximately 44% of Schroders’ shares.
Schroders has benefited from a diverse business model by geography, asset class and client type. It offers innovative products and solutions across four core businesses; Public Markets, Solutions, Wealth Management and our private markets business Schroders Capital. Clients include insurance companies, pension schemes, sovereign wealth funds, high net worth individuals and foundations. Schroders also manages assets for end clients as part of its relationships with distributors, financial advisers and online platforms.
Schroders aims to provide excellent investment performance to clients through active management. It also channels capital into sustainable and durable businesses to accelerate positive change in the world. Schroders’ business philosophy is based on the belief that if we deliver for clients, we will deliver for our shareholders and other stakeholders.
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1 Survey commissioned by ANEXT Bank carried out by YouGov Singapore Pte. Limited with 225 Singapore MSMEs in Oct 2024
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