Ant International’s Digital Bank Anext Records Surge in Cross-Border Transactions Among MSMEs
Anext Bank, a subsidiary of Ant International, is growing internationally.
The Singapore-based digital wholesale bank recorded a six-fold year-on-year surge in the total amount of cross-border transactions facilitated in Southeast Asia (SEA) and beyond. The highest growth was seen among micro-, small- and medium-sized enterprises (MSMEs) in sectors like wholesale and retail trade, professional services and information, communication and technology (ICT).
Moreover, Anext Bank customers grew their global presence, with operations extending markets outside Singapore, such as China, Hong Kong SAR, the United States and other SEA countries.
The bank itself saw a sizeable increase in the number of Foreign Business Owners (FBOs) incorporated in Singapore. As of 31 May 2024, nearly 31% of the bank’s customers are FBO from 78 countries, including China, Indonesia, Japan, Malaysia and South Korea. It also served a growing number of foreign incorporated-businesses through its embedded finance partners.
“It is heartening to witness how MSMEs are growing beyond their markets, especially micro and small businesses," said Ms. Toh Su Mei, CEO of Anext Bank. "Internationalisation is no longer a growth strategy limited to large corporations – through technology and innovation, MSMEs can now easily access global markets."
"As we celebrate two years of delivering innovative digital financial services, we remain committed to supporting more MSMEs embrace new possibilities and achieve their global aspirations," she added.
As of May 31, 2024, the majority of Anext Bank's customer base are micro businesses at 69%, and the segment accounts for 56% of loan customers and 80% of deposit customers. Additionally, over the past two years, 31% of Anext customers started banking with the bank during their start-up stage.
The reported surge comes on the back of Anext marking some notable milestones in the most recent financial year ending 31 December 2023. The "loans to customers" surged by 434%, reaching S$222 million, while the "deposits balance" increased by approximately 368%, reaching a total of S$295 million. Anext also reported S$24.5 million in gross income, underscoring its capacity to generate revenue from primary banking activities.
Anext Bank's digital financial services include multi-currency business account for local and overseas transfers, unsecured financing with flexible repayment options and fixed deposit accounts with a relatively low minimum investment.
Anext Bank recorded a six-fold year-on-year surge in the total amount of cross-border transactions facilitated in Southeast Asia (SEA) and beyond.
The bank also saw a sizeable increase in the number of FBOs incorporated in Singapore, with the group accounting for 31% of its customers.
The surge comes on the back of Anext reporting that its "loans to customers" surged by 434%, reaching S$222 million, in the most recent financial year.