While traditional financial institutions remain cautious, tech giants are accelerating their expansion into Southeast Asia's digital finance market. Ant Group recently injected an additional SGD 200 million (approximately USD 148 million) into its wholly-owned subsidiary ANEXT Bank, a Singapore-based digital bank serving small and medium enterprises, demonstrating its strong commitment to the region.
This latest capital infusion represents another significant investment by Ant Group into ANEXT Bank. Prior to this round, the Chinese fintech giant had already invested nearly USD 188 million in the digital bank. The total investment in ANEXT Bank now stands at approximately USD 502.61 million, reflecting Ant Group's confidence in the bank's growth potential across Southeast Asia.
Despite the substantial funding, ANEXT Bank faces ongoing challenges. Financial statements reveal the bank's losses widened to USD 19.72 million in 2022, a significant increase from previous years, while generating only USD 2.31 million in revenue. These figures suggest ANEXT Bank must intensify efforts to expand its business operations and improve profitability in the competitive digital banking sector.
Ant Group first entered Southeast Asia's digital financial services market in late 2020 when it secured a digital wholesale bank license from Singapore's Monetary Authority (MAS). ANEXT Bank serves as Ant Group's strategic foothold in the region, with a mission to support local SMEs and promote digital economic development. The additional capital is expected to strengthen ANEXT Bank's market position and facilitate further breakthroughs in Southeast Asia's digital finance landscape.