The small and medium enterprises (SMEs) sector, which encompasses 90% of all businesses globally, is a critical yet underappreciated force in the world of finance.
Contributing approximately 50% of the total Gross Domestic Product (GDP) to the global economy and accounting for around 70% of worldwide jobs, SMEs face significant challenges in accessing financial services, with an alarming $5.2 trillion in unmet financing needs each year.
In response to this gap, Ant International launched ANEXT Bank, a digital wholesale bank dedicated to servicing SMEs, in Singapore in 2022.
According to Toh Su Mei, CEO of ANEXT Bank, the organization identifies two primary obstacles impeding financial inclusion for SMEs: the perceived lack of credibility and the fragmented access to cross-border financial services.
To address these challenges, ANEXT Bank employs alternative data and advanced credit assessment models to enhance the evaluation process for SMEs seeking financing.
The bank has also leveraged the innovative financial solutions successfully implemented by Ant Group in other countries, tailoring these strategies to fit Singapore’s unique business environment.
ANEXT Bank has implemented an open and collaborative platform designed to cater to the diverse needs of its clients, taking into consideration various levels of financial and digital literacy.
The bank is committed to building secure, reliable, and seamless financial products that foster trust among clients while addressing their specific pain points.
With the increasing pace of digitalization, SMEs now have greater opportunities to expand their reach internationally. ANEXT Bank aims to facilitate this growth by offering financial services that promote business resilience, enhance customer appeal, improve profitability, and ensure regulatory compliance.
As the global economy continues to rely heavily on the contributions of SMEs, ANEXT Bank stands at the forefront of a movement to provide much-needed financial inclusion, paving the way for a more equitable financial landscape.
