ANEXT Bank and Schroders will offer investment opportunities for MSMEs

Singapore’s digital wholesale bank ANEXT Bank, has joined forces with global asset manager Schroders to unlock new investment avenues for micro, small and medium enterprises (MSMEs). This partnership, designed to reduce the entry barriers to wealth growth for smaller businesses, will enable ANEXT Bank to diversify its offerings, adding Schroders-managed investment funds alongside the bank’s existing ANEXT Fixed Deposit product.

With the first Schroders fund expected to launch by early 2025, pending regulatory approval, ANEXT Bank’s MSME clients will gain access to investment tools traditionally less accessible to smaller companies. This initiative is expected to benefit a broad demographic, as over 30% of ANEXT Bank’s customers are foreign business owners in Singapore, and nearly 70% are micro-businesses. These new options aim to accommodate businesses that prioritize flexibility, as the investment products will offer liquidity without a lock-in period.

ANEXT Bank’s recent survey, conducted with YouGov Singapore, highlighted the primary obstacles that MSMEs face when entering the investment market. According to the survey, four out of five MSMEs have never invested, citing limited excess funds, a lack of investment knowledge and insufficient access to suitable investment products as major barriers. ANEXT Bank and Schroders aim to address these concerns by providing user-friendly investment options within ANEXT’s banking platform and incorporating financial education initiatives to guide MSMEs through wealth management.

The collaboration also holds potential for future innovations. ANEXT Bank and Schroders plan to explore investment solutions involving asset tokenization, a feature that could further enhance accessibility for small business owners.

Through secure API integration, ANEXT Bank clients can seamlessly access and monitor Schroders’ funds directly on ANEXT’s platform. This simplified process will empower MSMEs to manage their investments while focusing on business operations.