Access to credit and cross-border growth: How embedded finance deepens MSME relationships with business platforms

EMBEDDED finance is no longer a side feature – it has become a growth lever in today’s digital economy.  

In practice, embedded finance means putting financial services directly inside the business platforms of companies such as SaaS (software-as-a-service product) providers, business-to-business (B2B) marketplaces or logistics operators so that users can pay invoices, get short-term loans, or even send money overseas without having to log into a separate bank account.

It is like giving your customers a built-in banking function within the platform they are already working on – saving them time, keeping them engaged and creating extra revenue opportunities for your business.

This shift is especially relevant in South-east Asia, where more than 70 million micro, small and medium-sized enterprises (MSMEs) form the backbone of the economy. For many of these businesses, embedded finance represents not just convenience but may be their only practical channel to access working capital and other financial services.

For some, it is a critical solution that fills long-standing gaps in traditional banking access.

Blind spots to look out for

While the opportunities of embedded finance are clear, integrating these solutions come with challenges. 

Says Qiu Kai, chief executive officer of Anext Bank: “To digital platforms, there should be no difference in security and compliance. However, some non-financial platform operators may have blind spots when exploring embedded finance solutions.”

This is especially pertinent for those that are considering building these solutions themselves. 

“You could build the financial infrastructure in-house, but that means you’ve got to learn the regulations of each market you operate in, secure licences yourself and maintain bank-grade systems,” Qiu points out. 

A know-your-customer process that works in Singapore, for instance, may not pass muster in Indonesia. Likewise, a loan product that is legal in one country may be restricted in another.

Further, one of the most common traps that platform operators might fall into is trying to launch several embedded finance offerings at once. For Qiu, the smarter play is to assess users carefully and start small by addressing specific pain points. 

If users face cash flow gaps, the platform can start by piloting a working capital loan offering. Other examples of targeted launches include adding foreign currency exchange and payment capabilities if the platform serves cross-border businesses, or offering interest-bearing deposit options if users tend to have surplus funds. 

“In our experience, treating each service as a standalone module – testing, measuring and iterating on each one – lets platforms move faster without overcommitting resources. This is how you evolve from a single feature to a complete financial ecosystem,” Qiu says. 

Capturing opportunities

Understanding how to include embedded finance solutions can only take business leaders so far, especially if they’re going at it alone. For most SaaS or marketplace founders, doing it themselves could be a costly distraction from working on their core product. 

“Working with licensed providers removes the ambiguity around critical aspects like anti-money laundering and risk management,” Qiu says. 

Partnering with these firms also helps streamline integration, particularly through application programming interfaces (APIs).

Anext Bank, for instance, has designed its APIs to be consistent in quality and security, while ensuring local compliance across markets. Its onboarding process satisfies Singapore’s regulatory requirements and can be adapted to other jurisdictions in Asia. As a Singapore-based digital wholesale bank regulated by the Monetary Authority of Singapore, Anext Bank positions itself as an open and collaborative partner for SMEs. 

According to Qiu, 69 per cent of Anext Bank’s end-customers are MSMEs. Out of that group, 56 per cent use its loan solutions, while 80 per cent have availed of its deposit products. These MSMEs come from 79 countries, including Singapore, China, Indonesia, Japan and South Korea. 

“Many of them are expanding regionally, making cross-border-ready finance a growing necessity too,” Qiu adds. 

The next chapter in embedded finance

Today, embedded finance is still largely about access to services such as lending, payments and deposits. But according to Qiu, the next wave will be defined by two shifts. 

First, there will be broader product depth through offerings such as tokenised assets, as well as bank-grade solutions like fixed deposits and sustainability-linked investments. 

Second, platforms that integrate embedded finance will unlock richer customer insights and seamless financial access, all while deepening bank-partner synergies.

As the industry matures, Qiu believes that embedded finance is on track to become a baseline expectation rather than a differentiator. He says that founders who move early – with the right compliance, scalability and customer insight – will set the pace.

“I think embedded finance is more than a technical integration – it’s a strategic shift. Done thoughtfully, it can create a mutually reinforcing cycle: As your customers grow, so does the value and resilience of your own platform,” he adds. 

Find out how Anext Bank’s embedded finance solutions can help your platform.

This article was first published in Tech in Asia.