According to a recent survey by ANEXT Bank, four in five MSMEs have never purchased investment instruments, citing a lack of excess liquidity, know-how, and suitable product options as the top reasons.
Singapore based ANEXT Bank partners with global asset management firm Schroders to lower investment barriers for micro, small and medium enterprises (MSMEs).
Through this partnership, ANEXT Bank claims that it 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.
According to ANEXT Bank CEO Toh Su Mei, over 30% of its customers are Foreign Business Owners 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,” says Mei.
According to the recent survey by ANEXT Bank, 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. 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.
As an SMB and client of ANEXT Bank, Orchids Singapore Director Eileen Chan agrees.
“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,” says Chan.
By leveraging secure APIs to facilitate seamless integration between ANEXT Bank’s online banking platform and Schroders’ products, MEI claims that 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 claim that they will collaborate to promote financial literacy among MSMEs, helping them better understand investments and wealth management, thereby lowering barriers to entry.
“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 our 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,” says Mei.
Commenting on the partnership, Schroders Singapore CEO Lily Choh agrees that MSMEs are the backbone of Singapore’s economy, allegedly comprising 99% of its enterprises.
“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,” says Choh.
Notes from the Editor: The Survey commissioned by ANEXT Bank was conducted by YouGov Singapore Pte. Limited with 225 Singapore MSMEs in October 2024.
ANEXT Bank is a digital wholesale bank providing digital financial services MSMEs. 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.
Schroders is a global investment management firm with USD 978.1 billion assets under management, as at 30 June 2024. Established in 1804, the founding family remains a core shareholder, holding approximately 44% of Schroders’ shares. The first fund from Schroders is expected to be available through ANEXT Bank by 1Q 2025, subject to regulatory approval.
