ANEXT Bank shifts SME credit to workflows as loan book grows 281%

Embedded lending risks invisibility as platforms own relationships while workflow data reshapes SME underwriting.

ANEXT Bank’s 281% loan book growth is reframing how digital banks serve micro, small and medium-sized enterprises, with lending increasingly tied to customer workflows rather than standalone financing.

Philip Tan, Chief Financial Officer of ANEXT Bank, said deposit growth remains important because it gives banks the funding base to expand. But the larger question is how those deposits are deployed.

“Deposits provide the fuel, lending quality determines the returns,” Tan said.

He said not all deposits carry the same value. Banks need stable and sticky funding rather than balances attracted mainly by the highest rates. Sustainable value comes from building a quality lending book based on customer understanding, reasonable capital allocation and support for businesses that can perform across economic cycles.

For cross-border micro, small and medium-sized enterprises, Tan said profitability begins before financing. Business owners are more focused on customers, suppliers, inventory and growth than on banking products.

The opportunity for banks is to become part of those workflows earlier through collections, payments, foreign exchange and cash flow visibility. Tan said this gives banks a better understanding of how customers operate and creates opportunities to serve multiple financial needs beyond a single loan.

Embedded lending is also changing how banks reach small businesses. Tan said it allows banks to meet customers where financing needs arise, lowers acquisition costs and improves customer experience.

Underwriting is evolving as well. Instead of relying mainly on historical financial statements, banks integrated into customer workflows can build a more continuous understanding of business activity. That can support more relevant solutions and better risk decisions.

The risk is that banks become invisible behind digital platforms. Tan said if customers only see the platform, the platform owns the relationship and the bank becomes a utility.

For ANEXT Bank, the test is whether workflow-led lending can expand small business credit whilst allowing the bank to deepen customer relationships beyond financing.