On June 6, Chinese billionaire Jack Ma’s Ant Group announced the opening of ANEXT Bank, a digital wholesale bank launched in Singapore. ANEXT will focus on small and medium enterprises (SMEs), especially those in local and regional trades, to provide an open framework for financial institutions. ANEXT has signed a two-year partnership deal with Proxtera, a non-profit organisation whose main sponsors are the Infocomm Media Development Authority (IMDA), MAS, and private sector enterprises.
On June 2, the Monetary Authority of Singapore approved an application by Ant Group, and the bank will begin operations at Ant and fully owned ANEXT. ANEXT customers will be able to create a consumer account, with access beginning in the third quarter of the year. This is one of Ant Group’s most significant international moves since its $37 billion IPO was halted by Chinese regulators in late 2020.
By the end of 2020, Ant has secured one of Singapore’s first digital wholesale banking licences, allowing it to service large clients such as financial institutions and businesses.
Toh Su Mei, a banking veteran who will be leading ANEXT as its Chief Executive Officer, expressed:
“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 SMEs are doing their businesses digitally. ”
Singapore is becoming more receptive to financial innovation, and Ant Group’s entry demonstrates its welcoming approach. The country’s central bank has already awarded digital banking licences to Sea, a technology startup, and ride-hailing giant Grab, both of which are likely to launch their own banking services in the near future.
Ant Group also has a licence to service the corporate and institutional investor groups in Singapore until 2020, and the advent of ANEXT will significantly supplement its overall effort.
Read More:
China plans to airdrop 30 million digital Chinese Yuan to boost Shenzhen’s pandemic-affected economy
