Digibank licenses drive SME growth in SG, Hyphen Group hints at comeback

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Hi there,

The SME market is a gift that keeps on giving in Asia. Even in developed countries like Singapore, small businesses still play a vital role in the domestic economy – they account for 99% of enterprises in the city-state.

One common challenge for SMEs though is limited access to adequate financing from traditional banks or financial institutions, which often set stringent requirements or collateral demands. This is an opportunity for the tech community to step in.

Singapore, for one, has introduced digital bank licenses to facilitate better access to financing for SMEs. Anext and Green Link are among the license recipients, as highlighted by my colleague Rachel in this week’s Big Story.

Anext, a subsidiary of Ant Financial, aims to serve Singapore-based SMEs with overseas operations. It plans to do this by leveraging its parent firm’s experience running MyBank in China. Green Link, on the other hand, seeks to support businesses in Singapore and China, drawing on the real estate expertise of its parent company, Greenland Group.

These digibanks offer lower minimum loan amounts, require less paperwork, and have innovative, tech-based credit assessment methods, making them attractive options for SMEs.

Meanwhile, for this week’s Hot Take, I delve into Hyphen Group’s upcoming Nasdaq listing under its new identity as MoneyHero Group. After facing layoffs and a failed SPAC attempt, is it time for the fintech firm to stage a comeback?

— Budi

THE BIG STORY

From China with love: Digital banks Anext and GLDB aim to fill SME lending void in SG

Image credit: Timmy Loen

The city-state’s wholesale digital banks add spice to the lending market by offering lower interest rates and more.

THE HOT TAKE

Bridgetown’s merger a fresh start for MoneyHero Group

NEWS YOU SHOULD KNOW

FYI