What Does It Mean For SMBs?

AT THE END OF 2020, THE MONETARY AUTHORITY OF SINGAPORE (MAS) ANNOUNCED IT HAD AWARDED FOUR NEW DIGITAL BANK LICENSES OF WHICH TWO WERE DIGITAL FULL BANK (DFB) LICENSES, AND ANOTHER TWO BEING DIGITAL WHOLESALE BANK (DWB) LICENSES. The difference between

them was that a DFB will be allowed to take deposits from and provide banking services to retail and nonretail customer segments. A DWB however, will be allowed to take deposits from and provide banking services to Small and Medium Businesses (SMBs) and other non-retail customer segments.

Ant Group, which won a DWB, formed ANEXT Bank, a digital wholesale bank incorporated in Singapore. As a DWB, the Singapore-based digital bank will focus on providing digital

financial services to local and regional micro, small, and medium businesses, especially those engaging in what it calls “cross-border operations for growth and global expansion”.

Toh Su Mei, the Chief Executive Officer of ANEXT Bank said:

We believe it’s time to offer the next generation of financial services that are accessible and effortless for growing businesses. Amid rapid acceleration in the digital economy, business models are changing and pivoting to become digital-first, if not adopting a hybrid model. Financial services have to evolve and be where SMBs are doing their businesses digitally.

To better understand what digital banking means for local SMBs and the type of services and support they can expect from ANEXT Bank, we spoke to Toh to find out more.

You received the digital wholesale banking licence, who are your target customers? How would a digital bank operate differently from traditional banks (such as investment or retail banks)? How would a digital bank serve the target segment better? SU MEI

Incorporated in Singapore, ANEXT Bank is the newest digital wholesale bank operated under the licence issued by the Monetary Authority of Singapore.

As a digital wholesale bank, we focus on providing innovative and secure 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 that this segment is currently still unserved or underserved. Business models are evolving towards hybrid and digital-first, and so should financial services. Financial services have to evolve and be where SMBs are doing their businesses digitally.

The beauty of being a digital bank is that we can provide next-generation digital financial services that are innovative, accessible and effortless, and provide it where businesses are digitally located.

What verticals are you looking at to start? Cash flow often breaks many SMBs, how can you help them here? Su Mei

We are open to serving micro, small and medium enterprises of all sectors, especially those engaging in cross-border operations for growth and global expansion.

During the soft launch and the start of our operation, we will focus on engaging SMBs, easing them in on the journey to adopt digital financial