Convenience vs financial yields: Mitigating the trade-offs

In a commentary, Dr Xie Taojun, a lecturer at NTU's SSS, said that Singapore-based fintech Chocolate Finance's recent pause to its instant withdrawals and shift to a standard, but longer, redemption timeline due to a surge in withdrawal requests is primarily a liquidity management challenge, rather than a solvency issue. Still, the episode highlights the importance of stronger liquidity planning in fintech fund management. While Chocolate Finance remains solvent, its experience underscores the need for safeguards to handle sudden withdrawal surges.

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