Ant Group has launched its wholly-owned subsidiary ANEXT Bank, a digital wholesale bank incorporated in Singapore.
ANEXT Bank will focus on providing digital financial services to local and regional micro, small and medium enterprises, especially those engaging in cross-border operations for growth and global expansion.
“We believe it’s time to offer the next generation of financial services that are accessible and effortless for growing businesses,” said Toh Su Mei, CEO of ANEXT Bank.
“Amid rapid acceleration in the digital economy, business models are changing and pivoting to become digital-first, if not adopting a hybrid model,” she said. “Financial services have to evolve and be where SMEs are doing their businesses digitally.”
ANEXT Bank is adopting an open and collaborative approach, and will work with industry partners and the public sector to provide SMEs with financial services that are simpler, safer and more rewarding.
According to Sopnendu Mohanty, chief fintech officer at the Monetary Authority of Singapore, the MAS expects the digital banks to uplift Singapore’s financial sector to better support the growth of SMEs in the country, the region and in emerging markets.
Also, ANEXT Bank signed a two-year MoU with Proxtera – the entity supported by MAS, the Infocomm Media Development Authority (IMDA) and private sector entities. Proxtera aims to transform and enable holistic cross-border trade among SMEs and businesses through making marketplaces efficient and discoverable globally, with embedded financing, fulfillment services and SME empowerment.
The MoU will see both organisations jointly create and establish an open framework for all participating financial institutions as they provide financing and risk mitigation support for SMEs and platforms in global trades.
ANEXT Bank will also be Proxtera’s first participating digital wholesale bank in Singapore to lead the way in providing financing solutions to the buyers and sellers on Proxtera’s network.
As part of its soft launch, ANEXT Bank provided a preview of the ANEXT Business Account, a dual-currency deposit account with proprietary security measures including three-factor authentication verification as well as features such as remote onboarding and daily interest. This will be made available to the general SME community from the third quarter of 2022.