“Not a bank, not a gamble”: Chocolate Finance wants your SME’s spare cash
Two years ago, Chocolate Finance built its name on a simple pitch to Singapore consumers: park your spare cash with us instead of a savings account, and we’ll try to get you a better return. It worked well enough that the fintech now manages roughly US$1.3 billion in assets across more than 150,000 customers. Now […] The post “Not a bank, not a gamble”: Chocolate Finance wants your SME’s spare…
Chocolate Finance, founded by Walter de Oude, has launched a new product called Chocolate Business aimed at Singapore SMEs. The product allows businesses to park their spare cash, with a targeted return of 1.5% per annum on balances up to SGD300,000, no minimum deposit, and withdrawals available at any time. Chocolate Finance invests customer funds in conservative corporate debt and money market funds, with the value potentially fluctuating with market conditions.
To protect customers from a market downturn, Chocolate Finance offers a Top-Up Programme, which covers any shortfall if the portfolio drops below the targeted return. The company's assets are held with licensed third-party custodians, segregated from Chocolate’s own balance sheet. Unlike traditional banks, Chocolate Finance is not covered by Singapore’s Deposit Insurance Scheme (SDIC), meaning customers’ funds are not insured in the event of a failure.
Chocolate Finance’s promise of quick withdrawals, typically within one to two business days, is framed as a significant advantage for SMEs. However, the product is entering a competitive market with other fintechs like Aspire, StashAway, and Syfe, as well as traditional banks. De Oude emphasizes that the main differentiators of Chocolate Business are the lack of fees, quick withdrawals, and the Top-Up Programme, rather than the headline interest rate.
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