Syfe & Wallex introduce Syfe Earn, offering up to 3.5% returns with next-day access.

Syfe research reveals SME cash management challenges; SGD 800 million lost in potential interest annually

• On average, Singaporean SMEs are collectively missing out on SGD 800M in potential interest earnings.
• A recent Syfe survey revealed that nearly half of Singapore’s SMEs prioritise guaranteed returns and liquidity when managing cash – with traditional banking solutions that often means losing out on potential returns on their capital.
• Syfe has partnered with Wallex to empower SMEs with competitive returns of up to 3.5% and next-day fund access, offering a smarter, more flexible solution to strengthen financial resilience.

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[13 February 2025, Singapore]

Singaporean SMEs are collectively missing out on an estimated SGD 800 million annually by keeping idle cash in low-yield bank accounts, according to Syfe’s internal estimates. Syfe, Asia Pacific’s leading saving and investment platform, recently surveyed 350 SMEs which revealed the pressing cash management challenges these businesses face: nearly half prioritise guaranteed returns (48%) and value liquidity (45%) – with traditional banking solutions that often means losing out on potential returns on their capital.

The survey also revealed that the average Singaporean SME has fewer than 11 months of cash reserves to sustain operations during periods of poor performance, leaving them vulnerable to economic disruptions. Rising interest rates, inflation, and operational costs compound these challenges, while internal issues like delayed payments and supply chain disruptions further strain cash flow.

The findings also show that SMEs prefer diversified strategies for cash management, balancing risk and returns. Popular methods include money market funds (43%), standard business bank accounts (43%), and fixed deposits (41%).

Jack Prickett, Chief Commercial Officer at Syfe, shared, “This data underscores the difficulties SMEs face in optimising their cash reserves. Many businesses are operating with limited financial buffers while external pressures continue to mount. At Syfe, we believe that SMEs deserve better tools and strategies to unlock the value of their idle cash. By empowering businesses with smarter financial solutions, we can help them build the resilience needed to navigate challenges and drive growth.”

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Closing the gap

Syfe estimates that by leveraging smarter cash management strategies, such as those prioritising competitive returns and high liquidity, SMEs could recover significant financial value from their idle cash.

One example is Syfe Earn which was recently launched in partnership with Wallex, which is a tailored cash management solution designed to help SMEs unlock value from their cash reserves while addressing their top priorities. This product offers competitive returns of up to 3.5% and no minimum lock-in period, addressing the critical need for guaranteed returns and liquidity.

Syfe Earn is designed to support a diverse range of businesses, from sole proprietors to mid-sized enterprises across various industries. Clients already benefiting from Syfe Earn include consultancy firms, food manufacturers, education providers, churches, and property management companies. Beyond offering competitive returns, Syfe Earn solves two other pain points SMEs face: lengthy onboarding processes and limited liquidity. Businesses can start earning returns in as little as 24 hours, with funds readily accessible through next-day withdrawals, enabling SMEs to maintain operational flexibility without sacrificing yield.

Prickett added, “Syfe Earn is one way we’re helping SMEs build financial resilience. By turning idle cash into a growth engine, businesses can reinvest these gains into hiring, operations, or innovation—areas that directly contribute to economic growth.”

Hiro Kiga, GM, Payments at M-DAQ Global & Co-Founder, Wallex, stated, “SMEs often operate with limited financial resources, making effective cash management business critical. We’re excited to partner with Syfe to introduce this new feature, enabling  businesses to transform their Wallex wallet funds into a steady, low-risk source of returns, while maintaining liquidity. This addition enhances our cross-border payments product  line, offering speed, support, and savings.”‍

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About the Study

The survey polled 350 SME business owners aged 25+ in Singapore, with SGD 100,000 - 20,000,000 in cash reserves to analyze how they manage their idle cash reserves and the financial challenges they face in doing so.

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About Syfe

Syfe is Asia Pacific’s leading saving and investment platform, empowering people to build their wealth for a better future. Built on the pillars of access, advice and affordability, Syfe caters to the different wealth needs of individuals with diversified proprietary portfolios, cash management solutions and brokerage. In Singapore alone, Syfe manages multiple billion dollars in assets and over 5% adult citizens are using the platform to achieve their financial goals.

Licensed and operational in Singapore, Hong Kong and Australia, Syfe has customers from 60+ countries. The company has raised SGD 105 million to date and is backed by leading global investors including Peter Thiel’s Valar Ventures, Unbound and partners from DST.

For more information on Syfe, please visit: www.syfe.com