BANKING the underserved micro, small-and-medium enterprises (MSMEs) has been the key focus for Ant International-backed Anext Bank since its launch in June 2022. This group makes up 68 per cent of the bank’s customer base.

New companies and startups are embracing the bank as well, with 38 per cent of customers having incorporated in the last two years. The bulk of the loans disbursed by Anext – at 56 per cent, were also to MSMEs.

The bank is also seeing customers come in from overseas, with 31 per cent counted as foreign business owners. Cross-border transactions have also grown in tandem, with an average month-on-month increase of 40 per cent.

Toh Su Mei, chief executive officer of Anext Bank, said: “There are more than 30 per cent of our clients who are foreign business owners, and they are made up of 44 different nationalities.”

The digital bank space is getting crowded with new entrants and incumbents upping their digital bank game. Anext believes that “customer obsession” will be one of the key factors to separating itself from the pack.

With links to Ant International, the bank will look to tap the technology offered by its parent company and subsidiaries in serving its customers. Other Ant International subsidiaries, such as cross-border payments platform WorldFirst, have referred customers looking for loans to Anext.

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In pursuing innovation, Anext will be constantly checking if it matches what its customers need.

“We’re not innovating for the sake of innovation, but rather to really reimagine financial services,” said Toh.

The bank is leveraging partnerships to reach out to prospective customers. The Anext Programme for Industry Specialists is one avenue the bank has tapped. Currently, the programme has five partners spanning fintech, logistics to an e-commerce enabler.

The purpose is to tap pain points and perspectives that Anext’s partners’ customers have. Collaboration with these partners should allow for better service of MSMEs for the bank.

“I can gain faster and real-time insights from the partners who are operating the platforms, and more insights on the SMEs that they are serving,” said Toh.

Anext is committed to having an open ecosystem that could include financial institutions, which are traditionally considered direct competitors. Besides tapping partners to be in touch with what MSMEs need, the bank also engages its customers directly through focus groups sessions for feedback.

The bank has an SME Friends of Anext community for its MSME customers and to extend its relationship with them. It also invites members of the community to test new features and garner feedback.

“We also have festive celebrations which create a good forum and platform for us to share our ideas,” said Toh.

Anext’s plan for next year is to double down on its efforts for MSMEs, with plans to expand its product suite and network to provide financial services across the region. There are plans to leverage technologies such as artificial intelligence and data analytics to anticipate the needs of its customers.

“Data will enable us to have a holistic view of the customers, and we will continue to work on these areas,” said Toh.

For Anext to reach profitability, there has to be a sharp focus on its mission of serving all SMEs, said Toh. The bank aims to serve all and not just those deemed credit worthy from existing banks.

“If done right, we pave the way to financial inclusion, and what it means is that it also creates the right path to business and financial viability of an organisation.”