China’s Ant Group, which is a financial technology (fintech) giant majorly controlled by billionaire Jack Ma, on June 6 confirmed that it has launched a digital wholesale bank that is incorporated in Singapore, called ANEXT Bank.
The digital bank received approval from the Monetary Authority of Singapore (MAS) to start a business on June 2, Ant, and fully owned ANEXT said in a joint statement. This move marks one of Ant’s largest overseas pushes since its $37 billion initial public offering (IPO) was derailed by the Chinese regulators in late 2021.
Ant got one of Singapore’s first digital wholesale banking licenses at the end of 2021 enabling it to serve large clients, like corporations and financial institutions.
The company, about 33% owned by e-commerce leader Alibaba Group Holding Ltd, stated that ANEXT’s focus was micro, small, and mid-sized enterprises (SMEs), mainly those with cross-border operations.
MAS Chief Fintech Officer Sopnendu Mohanty stated:
“This marks yet another milestone in Singapore’s digital bank development journey, a strategic effort to ensure the banking sector remains progressive, globally competitive, and vibrant.”
Tech firm Sea and a venture of ride-hailing and Fintech Company Grab won “digital full bank” licenses in 2021, enabling the Singaporean firms to directly accept deposits and provide related services locally to retail and corporate clients.
MAS has stated that it expects the two firms to launch digital banks this year.
Led by banking veteran Toh Su Mei, ANEXT will create an open framework for financial institutions in partnership with Proxtera, a local brand initiated by MAS and Singapore’s Infocomm Media Development Authority.
ANEXT Business Account will be made available for SMEs from the third quarter of 2022, according to the companies.
