For SMEs, Syfe thinks boring and safe products are the way to go

[SINGAPORE] Wealth platform Syfe has had a 120 per cent increase in business clients since the first quarter of 2025, as companies seek higher returns on corporate cash amid market volatility.

It currently has about US$10 billion in assets under management (AUM), with its business arm gaining 140 per cent in AUM compared to the end of 2024.

When the market becomes more uncertain, businesses get more conscious that they are not earning any interest on the cash they are holding, said Jack Prickett, Syfe’s chief commercial officer and head of business.

He noted that in May alone, the number of customers who signed up for Syfe’s business arm was double that of last December.

In an interview with The Business Times, Prickett said that most small and medium-sized enterprises (SMEs) that bank with the traditional players are earning close to zero interest on their cash balances.

Syfe’s research estimates that S$800 million in potential interest is being lost, due to these businesses’ funds being left in low-yield bank accounts.

“For businesses, treasury money has to be safe… it has to be a boring product,” Prickett said. Among the enterprises using Syfe’s products, 95 per cent utilise the lowest-risk one, which is a cash product.

Underlying that product, called Cash+, is a money market-type instrument that is invested in government debt, quasi-government debt and bank fixed deposits, he added.

The product offers two different plans, Flexi and Guaranteed. Flexi does not impose a lock-in period for funds deposited; Guaranteed schemes require lock-in periods of one, three, six or 12 months.

The returns range from 2.1 to 4.3 per cent a year.

“It is super boring, and it is super safe,” said Prickett.

Getting the foundations right

Last month, Syfe announced that it had raised US$53 million in an expanded Series C funding round, adding to the US$27 million that it had secured in August 2024.

The funds will be used for regional expansion and making strategic hires. They will also go towards automation and tools assisted by artificial intelligence (AI) to enhance efficiency for both the company’s clients and operations.

Within Syfe, AI is used for back-end coding and designing. Through large-language models, the wealth platform is able to deliver personalised educational content on a larger scale.

But even with the increasing use of AI, Prickett insists on getting the foundations right – especially with SMEs.

“I want them to know that we’re boring. I don’t want them to think that we’re a cutting-edge fintech company,” he said.

“Liquidity is extremely important for individuals and businesses,” he added, disclosing that Syfe is working on new features that would enhance liquidity for both its retail and business customers. The liquidation period for its cash products is currently one to two business days.

“The reason we want to improve this is because of the behaviour and the expectation of the users today,” the executive said.