Global asset management firm Schroders and ANEXT Bank, a Singapore digital wholesale bank under Ant International, have partnered to make wealth growth and management more accessible for micro, small and medium-sized enterprises (MSMEs) in the city-state.

With MSMEs comprising 99% of Singapore’s enterprises, this initiative targets a vital segment of the economy that faces steep investment barriers.

The collaboration, the parties share, aims to address long-standing investment barriers for MSMEs by offering tailored investment options that cater to the unique financial needs of small businesses.

While various financial products are widely available, 80% of MSMEs, according to a recent ANEXT survey, have yet to invest in any instruments, often held back by insufficient liquidity, investment knowledge and suitable options.

To bridge this gap, the bank plans to roll out a curated range of Schroders-managed investment funds by the first quarter of 2025, pending regulatory approval. This offering will expand the bank’s existing product suite, which currently includes ANEXT Fixed Deposit, providing MSMEs with increased flexibility and no lock-in period.

Both parties will also explore asset tokenization and sustainable investment solutions to promote accessible and socially responsible investing among MSMEs.

In addition, to helping equip MSMEs with knowledge about wealth management, the partnership has built in a robust financial literacy programme, helping to level the playing field for smaller businesses entering the investment space.

Over 30% of the bank’s clients are foreign business owners, representing 78 nationalities; and 69% operate as micro-businesses.

For these smaller entities, the ease of accessible investment options directly within the bank’s platform, supported by secure application programming interface integration with Schroders, offers a significant enhancement to their financial management options.

“This collaboration marks a significant milestone as our first with a global partner,” adds Toh Su Mei, the bank’s CEO. “Together with Schroders, we aim to make financial services more inclusive for MSMEs, offering not just investment products but also capacity-building initiatives to support their growth.”