Alibaba’s Ant Group has made an additional S$200 million investment into ANEXT Bank, its wholly-owned subsidiary and SME digital bank, according to news reports made yesterday (March 25).

According to DealStreetAsia, the digital finance and tech giant previously pumped S$250 million into the digital bank, with the total investment amounting to approximately US$502.61 million.

This investment aims to spur Ant Group’s efforts in digital finances in Singapore and the Southeast Asian region following its receipt of a digital wholesale banking license from the Monetary Authority of Singapore (MAS) in late 2020.

ANEXT Bank has been making losses since its launch

However, the bank has reported an almost fivefold increase in financial losses, from about S$6,000 to S$33,000 in 2021 and 2022, respectively, despite earning S$3,195 in revenue in the latter year.

This investment is a critical move to ensure that the bank can continue empowering micro, small, and medium-sized enterprises (MSMEs) and championing financial inclusion. As of 2023, 78 per cent of ANEXT Bank’s Business Account customers are micro-businesses, and 51 per cent of ANEXT Bank’s business loan customers are MSMEs.

Ant Group launched its Singapore office in September 2023 as part of its global strategy. Speaking at the Singapore Fintech Festival that same year, Eric Jing, CEO of Ant Group, aims to capitalise on the increase in digital technology adoption in the ASEAN region.

Featured Image Credit: ANEXT Bank

[This is a sponsored article with OCBC Business Banking.]

Enabling cashless payment options to customers is essential for businesses in the digital landscape. 

This way, you can provide customers with convenience and speed in making payments for your products or services.

Furthermore, if your business is looking to deal with customers from across the causeway, the importance of offering digital payments is heightened.

Understanding such needs, OCBC has a way for its business banking users to ease the process via OCBC OneCollect.

Seamless and efficient transactions

OCBC OneCollect enables businesses to collect payments seamlessly through QR codes by incorporating Malaysia’s national payments QR, DuitNow QR to support Ringgit (MYR) collection.

Using the OCBC OneCollect app, you can set up a dedicated DuitNow QR code for your business, and display it for buyers to scan and pay via any banking app or ewallet of their choice.

DuitNow QR runs on a real-time transfer basis, meaning upon a customer’s transaction, you’ll receive these payments instantly. There’s no need to rent a dedicated terminal for payments, reducing the operations cost for your business. You’ll also be notified when payments are received at the point of sale.

One local user of OCBC OneCollect is Redsea Esports Center, a cybercafe based in Wangsa Maju. Its business owners Tan Song Chun and Skeith Wong shared that they appreciate the speed, efficiency, and convenience of receiving payments via the QR payment solution.

They also reported that utilising OCBC OneCollect has been cost-effective for their business, as the bank does not charge transaction fees for the QR feature.

Receive payments from Singaporean customers

If your business deals with customers who are based in Singapore and transact with Singaporean Dollars (SGD), OCBC OneCollect has made it easy for you to transact with them as well.

OCBC OneCollect offers cross-border QR payments by integrating PayNow QR, which is Singapore’s version of DuitNow QR. To enable this function, you can generate a dynamic PayNow QR with a predefined transaction amount through the OCBC OneCollect app.

Upon scanning the PayNow QR, your customers will make payments in SGD while you receive the predefined amount in MYR. 

For online businesses that don’t have a storefront, you can screenshot and share the dynamic PayNow QR code for your customers from Singapore to make payments. AM PM Pharmacy is a local user that uses this function from OCBC OneCollect to receive payments from their customers in Singapore.

Previously, their Singaporean customers would have to withdraw cash to make payments at the pharmacy, which sometimes led customers to abandon their purchases. For online transactions, AM PM Pharmacy would also experience delays in payment collection as overseas transactions from banks can be time-consuming.

“Since we adopted OCBC’s PayNow service, it has helped us address this issue, as my team are only required to send a QR code to the customer for payment, and it takes less than five minutes for the overall process,” said Ng Kee Wei, CEO of AM PM Pharmacy.

OCBC OneCollect is the first platform to offer cross-border payments between Malaysia and Singapore since 2020, with the app receiving the Recognition of Excellence Award by OpenGov Asia in 2023. This was for helping SMEs use the channel to ease their collections.

In the same year, OCBC Malaysia also won the ‘Malaysia Customer Experience of the Year – Banking” by Asian Experience Awards 2023 and the “Malaysia’s Bank of the Year 2023” by The Banker of London, awards achieved by providing exemplary customer service.

Track your transactions in real-time

As highlighted above, DuitNow transfers happen in real-time, so you’ll receive your customers’ payments instantly and be notified via the OCBC OneCollect app.

The OCBC OneCollect app’s reporting function can also give you a clear view of your daily sales report to ease the reconciliation process, saving you the time which could be allocated to planning for your business. 

Furthermore, when consolidating your daily or monthly sales reports, OCBC OneCollect’s app seamlessly tracks your transactions and gives you an overview of them. 

Redsea Esports Center praised this function in the app too, and shared, “OCBC OneCollect has notably improved our cash flow management and reduced transaction costs, contributing to an increase in overall revenue over approximately 3,500 transactions per month.”

AM PM Pharmacy shared the same sentiment, and expressed, “The user-friendly online banking interface and mobile app have provided quick access to the team on essential financial information and tools, contributing to efficient financial management.”

If you’re a serial entrepreneur managing multiple outlets, you can create different “Shops” in the OneCollect app. 

These Shops can help you identify the transactions received by each of your businesses, keeping your business finances orderly. 

Moreover, you can easily add your business partners or employees as users through the OCBC OneCollect app, and set up customised functions to meet your daily operational needs.

If you’re already an OCBC Business user and would like to start your digitalisation journey for your business by collecting payments through QR codes, you can download the OCBC OneCollect Malaysia app from the App Store and Google Play Store.

Meanwhile, if you’re newly starting your business and are keen to sign up for an OCBC eBiz Account, you’ll enjoy a 100% online application that comes with complimentary digital tools. They include OCBC OneCollect and OCBC Velocity, which are OCBC’s business banking portals containing useful business tools for you to run your business seamlessly.

• Learn more about OCBC OneCollect here, the OCBC eBiz account here, and OCBC Velocity here.
• Read more finance-related topics we’ve written here.

Featured Image Credit: OCBC

You might have seen reports circulating last year that merchants would be charged transaction fees for using DuitNow QR.

It was stated that merchants would have to pay 0.25% of each DuitNow QR transaction value, otherwise known as the merchant discount rate (MDR).

An official statement later clarified that measures would be taken by the central bank to minimise the potential impact small businesses might face from these transaction fees. 

Then, speculations arose. Will customers foot the MDR? Might merchants hike their prices to cope with added transaction fees?

To clear the air, we first have to understand what MDR is.

Understanding the Merchant Discount Rate

Investopedia defines the MDR as a fee that merchants and other businesses must pay to a payment processing company on cashless transactions. 

The MDR is typically charged to businesses using card readers, otherwise known as point-of-sale (POS) terminals to accept debit or credit card payments.

In the context of DuitNow QR, it was said that the MDR is intended to cover costs and investments needed by the financial industry to upkeep its payment systems. This includes cybersecurity and fraud prevention controls to maintain high service and security standards for payment services.

News reports circulating in late 2023 claimed that traders receiving money via the DuitNow QR would incur a 0.25% fee when transferred from a bank account, and a 0.5% fee for transfers made via credit cards to POS terminals.

Malaysia’s national payments network, Payments Network Malaysia (PayNet) pointed out that such transaction fees on DuitNow QR have always been present since the platform was introduced in 2019. These fees were simply waived temporarily amidst the pandemic.

Following the news reports though, this led to merchants questioning: If my business is going to be charged transaction fees for offering cashless payments, why not go back to cash?

There are various advantages to using cashless payments

By only accepting cash-based payments, merchants would have to hire and compensate additional employees who are trained to accurately and efficiently manage transactions.

This hassle can be mitigated when card-based payments are offered. However, there are additional fees to foot when utilising this system too, including equipment leasing fees for the POS terminal, transaction fees, statement fees, etc. 

Hence, the lowest barrier to entry for micro and small businesses to offer cashless systems is through DuitNow QR, as it offers several advantages:

1. Transaction fees will continue to be waived for micro and small businesses

Most DuitNow QR merchant acquirers have announced that they will continue to waive the MDR for micro and small businesses accepting DuitNow QR payments.

In general, microenterprises are defined as having a sales turnover of less than RM300,000, or less than five full-time employees. Meanwhile, small businesses are companies with sales turnover between RM300,000 to RM3 million, or between five to 30 full-time employees.

These measures will enable micro and small businesses to keep utilising DuitNow QR payment services at zero cost, while ensuring that QR payment services remain efficient, reliable, and safe for all consumers.

2. Quick and simple to set up

It’s also simple to offer a cashless payment system like DuitNow QR.

Merchants will just have to set up a business banking or ewallet account to generate a dedicated QR code, and display it for buyers to scan and pay via any banking app or ewallet of their choice.

Since 2023, DuitNow QR has made it possible to receive cross-border payments as well.

This allows international travellers in Malaysia to use their mobile payment apps to scan DuitNow QRs to make payments to merchants. Currently, this feature is available to users from Singapore, Thailand, and Indonesia.

3. Instantly receive payments

DuitNow QR also runs on a real-time transfer basis, meaning upon a customer’s transaction, merchants will receive these payments instantly in their business banking account. There’s no need to deposit large stacks of cash to the bank, reducing the operations cost for businesses. 

These online banking methods will also notify both merchants and customers when payments are received at the point of sale.

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At the time of writing, major banks and ewallet providers nationwide will continue to waive MDR for micro and small businesses accepting DuitNow QR payments. 

Therefore, customers will only need to pay for what is stated on the price tag, while businesses will likely not raise their prices for the sole purpose of covering such transaction fees.

At the end of the day, DuitNow QR functions as an efficient, convenient and secure payment method that can further boost digital payment adoption in Malaysia.

• Learn more about DuitNow here.
• Read other financial-related articles here.

Featured Image Credit: Vulcan Post

AEON Bank Berhad, formerly known as ACS Digital Berhad, announced on January 8, 2024 that Bank Negara Malaysia (BNM) and the Ministry of Finance has approved for it to commence its digital banking operations in Malaysia.

This positions AEON Bank as the first Islamic digital bank in the country. According to a press release, BNM’s approval was granted in accordance with its validation of AEON Bank’s operational readiness.

On the same day, the Boost-RHB Bank consortium has also received the official approval to commence operations of its digital bank, Boost Bank. Its Alpha testing is opened by invitation to a select group of customers.

AEON Bank is an associate company of AEON Credit Service (M) Berhad (ACS) and a subsidiary of AEON Financial Service Co., Ltd. (AFS).

In April 2022, it was announced that ACS, AFS, and MoneyLion were one of two consortiums approved for a digital banking licence under the Islamic Financial Services Act 2013 (IFSA).

MoneyLion, a US-based neobank company, has since pulled out of the consortium.

The other consortium that was given an Islamic digital banking licence was KAF Investment Bank.

ACS is a non-bank financial institution that has been operational in Malaysia since 1996, providing services such as the issuance of credit cards, easy payment schemes, personal financing, and insurance.

In short, it promotes financial inclusion by providing access to financing to individuals who have traditionally not been able to access funding.

Similarly, AEON Bank’s core mission is to advance the promotion of financial inclusion as well as Islamic banking, said Raja Teh Maimunah, the CEO of AEON Bank.

“As part of one of Malaysia’s most recognised retail household brands, we aim to provide accessible, inclusive and Shariah-compliant digital banking solutions to our AEON Group of customers as well as to all Malaysians,” he said.

Offering new, innovative products

Having been present in Malaysia since 1984, AEON is a highly recognised household name that has served Malaysians nationwide.

With AEON Bank now in its group of companies, AEON Group aims to further expand and enhance its services to retail and wholesale customers as well as ecosystem partners such as auto dealers, merchants, suppliers, tenants, and more, the release said.

To this end, the digital bank will introduce “new and innovative products” for the AEON Group.

One of AEON Bank’s priorities is financial literacy and education initiatives to empower individuals and small businesses, providing knowledge and tools for them to make informed financial decisions.

Beyond educational efforts, the digital bank shared it will extend financial services to individuals and small businesses who otherwise would not have access to funding and other financial services.

According to the release, the AEON Bank app will be rolled out in phases, starting with an exclusive beta testing phase which is open to AEON Group’s employees. Feedback from these users will be gathered to refine the app.

AEON Bank targets to unveil its phased rollout in the first half of this year.

Ushering in a new era of digital banking

In November 2023, Malaysia welcomed our very first digital bank through the Grab-powered GXBank.

Having tested out the app, we were able to understand how digital banks can better serve underbanked Malaysians in a way that traditional banks may not be able to.

With AEON Bank joining the scene, which will also strive to serve the Islamic market, we hope to see even more innovative solutions to promote a more financially inclusive Malaysia.

• Learn more about AEON Credit Service here.
• Read other articles we’ve written about digital banking here.

Featured Image Credit: (From left) Raja Teh Maimunah, CEO of AEON Bank; Daisuke Maeda, Managing Director of AEON Credit

As part of this year’s Singapore Week of Technology and Innovation (SWITCH 2023), tech giant Google and consultancy firm Bain & Company took to the stage to present the main findings from their 2023 e-Conomy SEA report on Wednesday (November 1).

Samuele Saini, the Director of Apps, E-commerce and Entertainment (AECE) for Southeast Asia (SEA) at Google and Dr Willy Chang, partner at Bain & Company presented the main takeaways of the report, which outlined the advancements of the digital economy in Southeast Asia, as well as the trends, future opportunities and challenges and forecasts of the sector.

Investors are changing expectations

The global economy has been riddled with many challenges, from increasing inflation to low interest rates, hence adding many layers of complexity for startups and investors alike.

Despite those challenges, the digital economy in Southeast Asia has performed better than other regions, as markets in the region are seeing a come down in inflation and increase in interest rates post-COVID 19. Saini stated that the digital economy in the region is in transition and has tremendous potential for growth and setting new standards.

But this does not mean that Southeast Asia was immune to the funding winter. According to the report, investor funding has hit a new low from 2017’s US$9 billion to a private funding value of US$4 billion in the first half of 2023, along with the number of deals. This presents a funding decline of over 50 per cent.

While these numbers may be depressing at first sight, it is producing some positive behaviours in the ecosystem and more companies are becoming more realistic and productive in how they approach their mission.

Samuele Saini, AECE SEA Director of Google

Saini shared that while most of the funds put into established sectors such as e-commerce and digital financial services have decreased along with the overall funding values, more investments have been put into developing industries like Education and Agriculture as investors have reset their expectations.

He also noted that the investment behaviours need to change to encourage more funds to be raised. Firstly, entry valuations need to be realigned following the shift in expectations from investors. Secondly, easier exit pathways and a dependable monetisation model that ensures trust from investors into the business is key.

Monetisation is the name of the game

In the past, Southeast Asia was seen as a emerging market in the digital economy sector, where getting more people to get connected online was the main priority of many startups. Fast forward to a decade later, 90 per cent of consumers in Southeast Asia are connected online, shifting the focus to developing sustainable monetisation plans to achieve greater profitability in the future.

“Monetisation is the name of the game,” stated Dr Chan, adding that the Southeast Asian market has achieved an incredible feat of US$100 billion in revenue in 2023 despite pessimism from investors and a challenging economy.

Along with the increased adoption of technology, it is safe to say that cash is no longer king as more are looking for digital financial services in the region. Digital payments and lending services continue to be in demand, while wealth and insurance management has yet to gain as much traction online.

Ultimately, this has increased the competitiveness within the ecosystem in Southeast Asia, with pure-play fintech players at the front of the race, with their offerings for the underbanked and solidifying their position in the market.

Traditional banks are not falling behind with their digital banking payment platforms and services, while consumer tech platforms are met with mixed success. Dr Chang added that the launch of e-wallets has increased traction and drove them to offer other financial products and services. On the other hand, digital banks still remain nascent as they have yet to overcome restrictive regulations set in place. Nonetheless, there is still a large potential for growth in the region.

Expanding reach to the underbanked and unbanked

According to the report, high-value users are often users who have higher spending powers and have lifestyles that support the integration of digital financial products and services. Saini shared that although high-value users make higher contributions to the revenue of these companies, finding them is not necessarily straightforward.

“Companies should not forget that while [acquiring] high-value users may be a solution in the short term, it may not be a solution for the long term,” said Saini. He added that although majority of the population are not high-value users, companies should not neglect the possibility that they may become high-value users in the coming years as digital financial services have become more mainstream.

Despite majority of the SEA market are connected and are interested to purchase digital products and financial services, the short supply continues to be a hurdle yet to be conquered.

[How do we] continue to extending our services into the rural areas, the underbanked and the unbanked? [Not only is] this a challenge for internet economy players, it is a challenge for businesses.

Dr Willy Chang, partner at Bain & Company

Dr Willy was quick to clarify that by no means the Southeast Asian region should solely focus on profitability and not growth. He stated that there is still a large room to grow in the digital economy and regulators and government organisations in the ASEAN region play important roles to facilitate greater advancements.

Ultimately, it seems that the prospects of digital businesses continue to remain strong despite all odds. Will it become a game changer? Based on this report, the answer is a ‘yes’.

Featured Image Credit: Vulcan Post

Making a “bold move into a new era of digital banking”, Bank Rakyat announced on October 24 that it is future-proofing its banking operations through 5G connectivity, powered by CelcomDigi. According to the press release, this makes them Malaysia’s first 5G-connected bank.

This will drive the bank’s endeavour of providing end-to-end smart banking solutions and help its overall operational efficiencies whole delivering high-quality services to customers.  

Moving to serve the underserved

The first phase will involve Bank Rakyat equipping its Bank Bergerak fleet with 5G technology powered by CelcomDigi.

With enhanced connectivity, the mobile banks can provide smoother transactions and real-time updates during banking activities no matter where they are located.

According to Bank Rakyat’s website, its fleet of mobile banking kiosks will prioritise those in semi-urban and rural areas, allowing these underserved customers there to perform various banking transactions.

Services said to be offered by the Bank Bergerak includes:

• Account Opening (Savings-i, Deposit-i, Current-i)
• Cash Withdrawals
• Deposit
• Fund Transfer
• Financing Payment
• Bill Payment
• Tabung Haji Services
• SSM Services
• SSPN Services
• Ar-Rahnu services (available at Bank Bergerak – Kota Tinggi, Sandakan, and Bintulu)
• Remittance (by Merchantrade)
• Issuance/ Replacement of ATM Card
• Distribution / Collection of Personal Financing-i and Card Credit-i application
• Financial Advisor

As for the Bank Bergerak locations, Bank Rakyat’s website has a list updated as of August 7, 2023. There appears to be mobile banks in nine regions, namely:

• Selangor and Kuala Lumpur
• Termeloh, Pahang
• Kota Bharu, Kelantan
• Alor Setar (Kedah and Perlis)
• Kota Tinggi, Johor
• Bintulu, Sarawak
• Sandakan, Sabah
• Keningau, Sabah  
• Kota Marudu, Sabah

A strategic move towards its goals

Other than the Bank Bergerak, CelcomDigi’s solutions will ensure seamless connectivity in some of Bank Rakyat branches across Malaysia, as well as enhance the security and surveillance for off-premises.

Following this, Bank Rakyat stated that it will be poised to explore digital IoT opportunities, especially in the realms of cloud and cybersecurity solutions.  

“These initiatives will create avenues for additional digitalisation solutions and applications, fortifying the bank’s digital capabilities, improving customer touchpoints, and elevating competitiveness in the market,” the release stated.

Dato’ Dr. Mohammad Hanis Osman, the CEO of Bank Rakyat, shared in the release that these solutions are in line with the bank’s digitalisation plans as well as the great customer experience agenda, both of which are pillars outlined in its five-year strategic plan, the Bank Rakyat 2025 (BR25).

“This initiative also aims to address financial inclusion and catalyse the advancement and flourishing of small and medium-sized enterprises (SMEs),” he added.

Developing a small and medium enterprises value creation centre is also a part of the BR25’s blueprints.

• Learn more about Bank Rakyat here.
• Read other articles we’ve written about fintech here.

Featured Image Credit: Bank Rakyat / CelcomDigi

Sea Limited’s wholly-owned digital bank, MariBank, has partnered asset management company Lion Global Investors to launch a new investment product, Mari Invest, today (October 3).

According to the digital bank, Mari Invest is the first investment account by a bank in Singapore to provide instant cash-out.

Through the investment account, investors will have access to low-risk investments such as MAS Treasury Bills, money market and high-quality bond funds, as well as the Lion-MariBank Save Plus fund in collaboration with Lion Global Investors. This enables investors to reap potentially higher returns while keeping overall portfolio risk low. 

Additionally, Mari Invest is also designed to make investing simple by eliminating traditional barriers to investing, such as high minimum investment amounts, sales or platform charges, and lengthy lock-in periods with long redemption timelines. 

Investors can start investing through Mari Invest with just S$1 and withdraw their investments instantly in cash anytime, capped at S$10,000 per investor daily, subject to availability. The platform does not charge any sales or platform charges and there are no lock-in periods or penalties for withdrawals.

We know that consumers today want to grow their wealth, but may find it hard to make decisions with the complex investment products out there. That’s why we introduced Mari Invest, it offers consumers a simple way to manage their wealth with relatively low risk.

– Zheng Yudong, CEO, MariBank

Mari Invest complements MariBank’s flagship savings product, Mari Savings Account, providing simple and rewarding offerings for users to manage their finances. 

The Mari Savings Account currently offers a per annum interest of 2.88 per cent, paid daily, without the need to fulfil any additional conditions such as salary crediting or minimum spend. 

Featured Image Credit: MariBank

Within 12 months of its launch, Trust Bank has captured a 12 per cent market penetration in Singapore, positioning itself as the world’s fastest-growing digital bank by market share with over 600,000 customers.

The bank first launched with three financial products — a credit card, savings account, and family personal accident insurance. Within a year, it has doubled its range of products to include a market-first fully supplementary credit card, an instant loan offering, and a financial management tool, Budget Buddies.

But what has propelled the bank to remarkable success in such a short span of time?

The partnership behind Trust Bank

Underpinning Trust Bank’s growth is the partnership behind the bank, which brings together one of the city-state’s leading consumer ecosystems, FairPrice Group, and Singapore’s longest-standing bank, Standard Chartered.

The digital bank is 60 per cent owned by Standard Chartered Bank, with the remaining 40 per cent owned by NTUC Enterprise and FairPrice Group.

The involvement of FairPrice Group in Trust Bank’s journey was of integral importance to its growth in the past year.

By being embedded in FairPrice Group’s ecosystem and loyalty program, Link Rewards, which serves more than a million customers every day through 570 touchpoints, the bank was able to achieve incredible rates of engagement.

In fact, Dwaipayan Sadhu, the CEO of Trust Bank, shared that its customer acquisition costs are sustainable and are around seven times lesser as compared to the usual acquisition rate in the market.

Moreover, given the fact that a Trust Bank account is the only way to accelerate savings and reward points within the FairPrice ecosystem, more Singaporeans are incentivised to sign up for the digital bank.

Meanwhile, by being backed by Standard Chartered, the digital bank was able to establish credibility easily within the Singaporean market.

Standard Chartered was one of the first international banks to secure a qualifying full bank license in the city-state back in 1999. Prior to Trust Bank, Standard Chartered was behind the launch of Hong Kong-based digital bank, Mox, in 2020.

Trust Bank has created one of the fastest onboarding processes

Beyond the partnership, Dwaipayan shared that the digital bank’s journey over the past year has been “led by a number of market-leading innovations”.

These innovations are focused on improving the user-friendliness of the digital banking platform, with the aim of making it more inclusive to attract a wider range of users across different demographics.

For instance, by leveraging automation, the bank has created one of the fastest onboarding processes globally. In fact, about 90 per cent of its users manage to open an account with the bank within just three minutes, delivering them a fuss-free experience when signing up for an account.

To further ramp up its efforts in ensuring a seamless transition to digital banking for all customers, Trust Bank has taken a significant step by establishing the Trust Experience Centre, a physical touchpoint located at VivoCity, last October.

The centre was established for our customers to get assistance in understanding Trust’s products and how to use them. The centre is staffed by our dedicated Digital Ambassadors who have been trained to  guide customers through the Trust App and become more digitally-savvy. 

– Dwaipayan Sadhu, CEO, Trust Bank

Customers who are accustomed to cash withdrawals can do so at a Trust ATM located at the Trust Experience Centre and at Standard Chartered ATMs islandwide.

Today, Trust Bank’s customer base consists of a wide range of ages, disproving the fallacy that digital banking is only reserved for the young.

We have a large number of young customers, but we also have many older customers. In fact, more than 10 per cent of our customers are aged 65 and above.

– Dwaipayan Sadhu, CEO, Trust Bank

Aside from providing inclusivity and an easy-to-use platform, Dwaipayan also attributes the bank’s rapid customer growth to its ground-breaking customer referral programme.

Recognising that Singaporeans prefer real-time, everyday rewards over larger, high-value items, the bank provides digital rewards such as FairPrice e-vouchers for each successful referral, which customers can instantly use for their grocery spending.

“As a result, 70 per cent of our customer base comes from referrals by friends and family,” the CEO shared.

The bank aims to achieve profitability by 2025

Looking forward, Dwaipayan views that there still are many opportunities in the Singapore retail market for the bank’s expansion.

While the digital bank has achieved substantial success thus far, Dwaipayan acknowledges that it must continue to innovate new products and services in order to stay competitive in a mature banking landscape like Singapore.

However, it is essential for these new products and services to be built around the needs of Singaporeans, which is why the bank places a strong emphasis on customer feedback.

Customer feedback drives the  development of our products and features and every single customer feedback is made transparent to all employees via our internal communications channel. This then feeds into our product development cycle and allows us to tap on every team’s diverse expertise, collectively ideating solutions to contribute to a customer’s user experience. 

– Dwaipayan Sadhu, CEO, Trust Bank

Through this feedback loop, the bank is not only able to create new products, but also improve existing features that meet the needs of customers.

The CEO further shared that the bank has several new products on its roadmap, which will be rolled out in the next couple of months. As with all of its products, the upcoming products will be focused on bringing its customers an “experience that is easy, transparent, and rewarding”.

He added that the bank aspires to become Singapore’s fourth-largest retail bank by 2024 and achieve profitability by 2025.

This is just the beginning for us, and we will continue to improve so that our customers benefit from  being with Trust and continue to enjoy an innovative and delightful experience.

– Dwaipayan Sadhu, CEO, Trust Bank

Featured Image Credit: Trust Bank

Digital bank GXS Bank (GXS) announced yesterday (July 19) the expansion of its GXS Savings Account offering to all eligible individuals in Singapore, marking the next phase of the bank’s growth strategy.

With this move, GXS aims to help more consumers achieve their financial goals and cultivate better saving habits. The availability of the GXS Savings Account will be on a first-come, first-served basis, giving everyone an equal opportunity to take advantage of the account’s unique features.

In an effort to encourage saving and financial well-being, GXS Bank has also increased the maximum deposit amount for its GXS Savings Account to S$75,000 per account.

Importantly, all deposits within the GXS Savings Account will continue to be fully covered by the Singapore Deposit Insurance Corporation (SDIC), offering account-holders peace of mind and security.

Overwhelming demand for GXS Bank

The GXS Savings Account has garnered significant popularity since its initial launch in August 2022. Within months of its introduction, all available slots for the GXS Savings Account were taken up, indicating strong consumer demand for this innovative savings product.

Additionally, since March 2023, the waitlist registration for the GXS Savings Account has grown by over 2.5 times, further showcasing the product’s appeal and the growing interest among Singaporeans.

One of the primary features that have contributed to the GXS Savings Account’s success is the integration of intuitive Saving Pockets. These Saving Pockets allow customers to allocate funds towards specific savings goals, enabling them to set money aside for different purposes.

Currently, savings in these dedicated Saving Pockets earn an attractive annual interest rate of 3.48 per cent. What sets this feature apart is that customers do not need to maintain a minimum balance or commit to a lock-in period to enjoy this high interest rate, making it convenient and rewarding for savers of all backgrounds.

Another significant benefit of the GXS Savings Account is its daily interest crediting feature. This addresses the pain points faced by consumers, especially gig workers, entrepreneurs, and early jobbers, who prioritise cash flow and liquidity.

With daily interest crediting, account-holders can enjoy the advantage of interest compounding on a daily basis without the worry of missing out on accrued interest when they need to make withdrawals.

Charles Wong, CEO of GXS Bank, expressed his enthusiasm for the latest development, stating, “Our focus has always been on using data and technology to address the financial pain points of our customers. The GXS Savings Account has been well-received, especially with our innovative Saving Pockets feature, which empowers customers to save for their aspirations more effectively. We are thrilled to open sign-ups for the GXS Savings Account again and help more consumers in Singapore reach their financial goals faster in today’s challenging economic environment.”

Plans to launch debit card next

The GXS Savings Account expansion closely follows the recent launch of GXS Bank’s first credit product, the GXS FlexiLoan, in April 2023.

The GXS FlexiLoan, a groundbreaking unsecured term loan in Singapore, allows customers to make partial or full repayments without incurring any early repayment fees, along with the added benefit of interest savings.

To further enhance the benefits for GXS Savings Account-holders, GXS Bank plans to launch a debit card in the upcoming months. The debit card will offer attractive rewards and cashback for account-holders when they make transactions using their GXS Savings Account.

Customers interested in opening a GXS Savings Account can easily sign up through the GXS app or via the Grab and Singtel Dash apps. The GXS app is available for download on Apple’s App Store and Google Play Store.

Featured Image Credit: GXS Bank

Since its launch in 2022, ANEXT Bank has become a prominent player in Singapore’s digital banking landscape. 

A wholly-owned subsidiary of Ant Group, this fintech giant has taken the reins of digital banking, driving financial inclusion and empowering micro, small and medium-sized enterprises (MSMEs). 

Its offerings aim to address the financial challenges faced by these businesses, and support their growth in this digital era. 

Here is a look at how the bank has grown and the lasting impacts it has made on the MSME sector over the past year. 

Providing underserved MSMEs with accessible financing

Although Singapore has a highly banked population, studies have shown that MSMEs are highly underbanked in the city-state, despite making up about 99 per cent of all companies in Singapore. 

The global tightening of monetary conditions also does not make it easier for these businesses, especially when it comes to accessing financing. “According to the World Bank, [financing] is the second most cited obstacle facing SMEs to grow their businesses in emerging markets and developing countries,” said Toh Su Mei, CEO of ANEXT Bank.

This was why the bank introduced its ANEXT Business Loan last November, which offers a fuss-free and flexible unsecured financing solution. This initiative simplifies the loan application process and caters specifically to the needs of MSMEs.

The minimum loan amount starts from S$5,000, and no documents are required for loans under S$30,000.

– Toh Su Mei, CEO, ANEXT Bank

In addition to business loans, it also offers a comprehensive suite of financial services and expertise, including advisory services, which have proven to be vital to rapidly growing startups such as BRB Selfcare, an online platform that provides anonymous mental health therapy. 

ANEXT Bank’s offerings have bolstered the growth of the business, enabling them to successfully navigate the complexities of expanding their business. Additionally, BRB Selfcare has also managed to  streamline its cash flow management and financial operations. 

“Having a banking partner that understands the unique needs and challenges of startups like ours is invaluable to our growth,” said Joylynn Tan, co-founder of BRB Selfcare.

Evolving financial services to cater to digital-first businesses

With COVID-19 propelling the shift towards digitalisation, the ANEXT Programme for Industry Specialists caters specifically towards the shifting dynamics of business models that adopt hybrid and digital-first approaches. 

Launched back in November, the programme is a B2B solution that aims to empower MSMEs by granting them access to financing solutions through an array of industry partners.

As the programme continues to grow, the bank actively seeks partnerships with e-commerce marketplaces, fintech companies and digital solutions providers to support MSMEs’ cross-border operations.

As business models are shifting towards hybrid and digital-first, so should financial services, which have to evolve and be where SMEs are doing their businesses digitally.

We believe that innovation can be accelerated at scale when we join hands with like-minded industry and public sector partners to drive transformation and create greater value for SMEs.

– Toh Su Mei, CEO, ANEXT Bank

Notable partners, including key industry leaders such as fintech company IN Financial Technologies and business process management provider Bizmann System have joined the programme, with the potential to benefit the staggering number of 15,000 MSMEs that they serve.

Moreover, the bank’s extensive network has proven to be a catalyst to success, as exemplified by the experience of BRB Selfcare.

According to Joylynn, ANEXT Bank provided the startup with a gateway to connect with potential partners, investors and industry experts, which have subsequently “opened doors to strategic collaborations” and expanded its reach.

Reimagining financial inclusivity for all MSMEs

But to those who are not so digitally-savvy, the bank also offers inclusive and accessible solutions to access financing easily, in line with its goal to reimagine financial inclusion. Its clients today include businesses from industries that are not typically digital, such as the trade industry, as well as the building and construction industry.

We’ve been clear from the start when we set out to reimagine financial inclusion to deliver accessible and effortless solutions securely. 

This way, business owners, no matter their industry or digital competency, can access financing easily and without worries.

– Toh Su Mei, CEO, ANEXT Bank

One of the ways the bank achieves this is through its simple and streamlined onboarding process. Singapore-incorporated businesses can initiate their ANEXT Business Account application online, with their Corppass credentials, which automatically pre-fill their application with relevant information. 

The user-friendly digital services offered by the bank have helped multiple clients, including BRB Selfcare. In fact, it has allowed the startup to focus on its core mission of providing therapy, while relying on ANEXT Bank for simple, yet accessible financial services. 

ANEXT Bank also goes the extra mile by incorporating enhanced security measures into its services, such as its three-factor authentication feature that utilises facial recognition to authenticate transactions. By prioritising the security of SMEs, ANEXT Bank not only simplifies their financial interactions but also instills confidence in the integrity and safety of their transactions.

In addition to supporting businesses regardless of their digital competency, the bank also supports the expansion of foreign businesses into Singapore to boost the city-state’s local economy. 

In fact, ANEXT Bank is the first bank in Singapore to provide remote, virtual onboarding services for those based overseas with a registered business in Singapore. By leveraging these services, foreign entrepreneurs can set up their businesses with ease, minimising both the time and expenses involved.

Establishing closer collaborations with MSMEs

Today, 78 per cent of ANEXT Bank’s Business Account customers comprise micro businesses.  Moreover, an astounding 51 percent of ANEXT Bank’s business loan customers comprise MSMEs, solidifying the bank’s vital role in providing support to these enterprises.  

By understanding and addressing the unique challenges faced by MSMEs, ANEXT Bank has positioned itself as a trusted partner for their growth and success.

In line with their commitment to serve the evolving needs of these enterprises, the bank has now introduced a new initiative – SME Friends of ANEXT. This innovative program enables ANEXT Bank to establish closer collaborations with MSMEs, allowing them to gain deeper insights into the pain points and challenges faced by these businesses.

While ANEXT Bank has already made significant strides in its journey to support MSMEs, the digital bank is far from done. Riding the wave of positive month-on month growth, the digital bank aims to double down on their customer-based approach. This includes continuing their efforts to build financial solutions that meet SMEs’ needs and to be tech driven and innovative in order to offer their customers a secure and simple user experience. .

Furthermore, ANEXT Bank has set its sights on expanding its services to benefit more regional SMEs. By tapping into the growing and interconnected digital economy, ANEXT Bank aims to empower these enterprises with the opportunities and advantages offered by global markets. 

Featured Image Credit: ANEXT Bank