Singlife founder’s buzzy new firm wants your spare cash

He’s back.

Singlife founder Walter de Oude once put a novel spin on insurance by paying out monthly interest via an account that customers in Singapore could access and spend.

Chocolate Finance CEO Walter de Oude (left) with brand ambassador and actor Henry Golding, who starred in “Crazy Rich Asians”  / Photo credit: Chocolate Finance

His insurtech firm had merged with the UK-based Aviva via a US$2.3 billion deal that was completed in November 2020. By January 2022, de Oude had stepped down as deputy chairman and executive director of Aviva Singlife.

Now, he wants to change the way people manage their spare cash through a new venture, which he heads as founder and CEO.

Chocolate Finance is not a bank. Yet it offers an alternative to deposits that’s not just similarly liquid, but also yields bigger returns.

The startup is also not an investment machine designed to help people achieve their retirement or other financial goals.

“Customers want immediate liquidity and optimal, stable returns. We constructed a portfolio that delivers this,” says de Oude, who spoke to Tech in Asia ahead of Chocolate Finance’s official launch this month.

Why is a fintech company named after a sweet treat? “Everybody loves chocolate. Just like chocolate brings joy and comfort, we want our customers to feel happy about their money,” he adds.

Founded in early 2022, the fintech firm, which received a Capital Markets Services licence from the Monetary Authority of Singapore, has been generating buzz through attractive returns and invite-only sign-ups as it makes the rounds on social media.

Chocolate Finance has secured investment from the likes of Peak XV Partners, Prosus, Saison Capital, and GFC. Together with de Oude, investors have poured a total of US$19 million into the startup so far.

But Chocolate Finance is playing in a crowded space, with digital banks, investment brokerages, and wealth management platforms also joining the fray. Questions have also been raised over the higher-risk nature of its product compared to other cash management alternatives on the market.

Huge demand for a deposit replacement

Currently available only to Singapore residents, Chocolate Finance’s sole product is an alternative to bank deposits that offers a return of 4.2% per annum on a customer’s first S$20,000 (US$15,100) and returns of up to 3.5% per annum on amounts beyond US$15,100.

Its rates on offer are non-guaranteed and move in line with the market. While it offered a return of 4.5% per annum during its pilot in August 2023, current rates stand at 4.2% per annum.

The secret to higher returns

Next on the cards