ANEXT Bank empowers SMEs to reimagine possibilities

ANEXT Bank is dedicated to supporting entrepreneurs by helping them future-proof their businesses through digital adoption and global expansion.

Micro, small and medium enterprises (MSMEs) represent 99% of Singapore’s nearly 310,000 businesses, yet they face significant growth and international expansion challenges. A major obstacle is the affordability of financing. The Singapore Business Federation reported that over 80% of local businesses were affected by rising interest rates, and nearly half experienced a credit crunch last year.

Young businesses, often considered high-risk by traditional lenders due to their small size, limited scale and lack of track record or collateral, find it particularly challenging to access funds. Many MSME owners also lack the financial expertise to navigate these complexities.

To address these issues, MSMEs in Singapore are increasingly turning to digital wholesale banks like ANEXT Bank for tailored solutions. ANEXT Bank focuses on purposeful, human-centric innovation to provide accessible and affordable financial services to MSMEs.

ANEXT Bank observed a six-fold increase in cross-border transactions year-on-year, particularly among MSMEs in wholesale and retail trade, professional services and the information, communication, and technology sectors. This growth aligns with Singapore’s global trade and financial hub status. Many ANEXT Bank customers have extended their operations beyond Singapore, establishing a presence in markets such as the Chinese mainland, Hong Kong, the United States and Southeast Asia.

In addition to the regional and global expansion of Singapore MSMEs, ANEXT Bank has seen a notable rise in foreign business owners (FBOs) incorporating businesses in Singapore. By May 31, 2024, nearly 31% of the bank’s customers were FBOs from 78 nationalities, including China, Indonesia, Japan, Malaysia and South Korea. Through partnerships with embedded finance providers, ANEXT Bank is also serving an increasing number of foreign-incorporated businesses.

As of May 31, 2024, 69% of ANEXT Bank’s customers are micro businesses. Breaking down by product categories, 56% of loan customers and 80% of deposit customers are micro businesses. Over the past two years, 31% of ANEXT Bank’s customers started banking with the bank during their start-up stage.

ANEXT Bank offers a range of services tailored for MSMEs, including multi-currency business accounts for local and overseas transfers with no minimum balance, unsecured financing with flexible repayment options and fixed deposit accounts starting from just US$5,000 for as short as one month. These services can be set up within minutes.

In the financial year ending December 31, 2023, ANEXT Bank achieved significant financial milestones. The “loans to customers” surged by 434%, reaching S$222 million, while the “deposits balance” increased by approximately 368%, totaling S$295 million. The bank also reported S$24.5 million in gross income, highlighting its strong ability to generate revenue from primary banking activities and its progress towards driving financial inclusion.

The bank encourages entrepreneurs not to be limited by the current size of their businesses, but to focus on their potential when they embrace disruption and reimagination.