iFAST Corporation (SGX: AIY) has emerged as a success story for Singapore’s fintech sector.
The company started as a local investment platform, and has now grown into a multi-market wealth management hub, offering a range of financial products, from investment distribution to pension solutions.
Recent initiatives, including digital banking and international expansion, have pushed the share price to a 52-week high of S$11.60 (on 28 January 2026).
The key question for investors: is iFAST expanding too fast, or is this just the beginning of a longer growth story?
A Scalable Platform with Recurring Income
iFAST derives most of its revenue from recurring fees on assets under administration (AUA), advisory fees, and more recently, banking revenue.
Unlike typical brokers, revenue is not driven by trading volumes but by the amount of assets that come onto the platform.
The figures confirm this trend.
In the third quarter of 2025 (3Q2025), AUA stood at S$30.62 billion, a 29.6% year-on-year (YoY) increase, with net inflows of S$1.49 billion in the quarter, more than double compared to the previous year.
For the first nine months of 2025 (9M2025), net inflows stood at S$3.72 billion, surpassing the full-year 2024 figure.
In summary, iFAST is adding more money to its platform, which is a precursor for future revenue increases.
Revenue Growth and Improving Profitability
As AUA grows in size, so does its revenue.
In 3Q2025, gross revenue reached S$135.82 million, up 37% YoY, and net revenue grew to S$89.53 million.
Net profit also rose 54.7% to S$26 million, driven by both demand and improving operational efficiency.
On a trailing twelve-month basis, revenue reached approximately S$467 million (up around 30% YoY), indicating that the business is scaling well.
Some investors worry that investments in digital banking and expansion will negatively impact profitability.
However, net margins have improved notably, showing that scale benefits are emerging despite ongoing investments in new initiatives.
Management expects further margin gains as these platforms mature.
iFAST also distributed cash back to shareholders.
For 3Q2025, the company announced a third interim dividend of S$0.023 per share, a 53% increase on the year.
The total amount of interim dividends paid in 9M2025 was S$0.059.
The annual dividend guidance indicates a potential payout of S$0.082 for the full year, a 39% YoY increase, and this signals confidence in cash flow stability.
What’s Driving iFAST’s Expansion
There are three key initiatives behind iFAST’s expansion:
- Hong Kong eMPF Platform: A digital pension system that generates recurring revenues. While adoption is growing, its long-term prospects are promising.
- Digital banking: iFAST Global Bank has been profitable for four consecutive quarters through 3Q2025, and digital banking is driving more customer engagement despite higher costs.
- International expansion: Markets such as Malaysia and China offer growth opportunities, and the digital model allows iFAST to expand without significant cost escalation.
Why the Expansion Could Pay Off
The platform-based business model of iFAST provides the company with good operating leverage, as the company’s revenues tend to increase at a faster rate than costs as AUA increases.
These fee-based revenues from wealth management and pension platforms provide good earnings visibility, as iFAST is not dependent on trading volumes.
Structural drivers such as the growth of digital wealth, increasing affluence, and the focus on retirement planning continue to provide tailwinds for the company’s business model.
The proven track record of the company’s management in executing a multi-year growth strategy provides comfort for the success of the company’s expansion strategy and the potential for a positive impact on the company’s earnings base.
Too Ambitious – or Just Getting Started?
The bull case for iFAST is its potential to convert today’s high investments into tomorrow’s earnings growth.
While it is costly to invest in areas like digital banking and Hong Kong’s eMPF platform, the business model is structured to produce sticky and high returns once scale is achieved.
From a bearish perspective, iFAST faces a double-edged sword of execution risk and stretched valuations.
The market has arguably already baked future successes into the stock price, even as the company manages a complex, multi-front expansion.
Regulatory pressures in banking and pensions could also be a drag on growth.
Investors should look out for AUA growth, margin improvement from new platforms, and earnings contribution from digital banking and eMPF over the next 12 to 24 months to gauge if the strategy is working.
Get Smart: Scale Matters More Than Speed
The expansion of iFAST is a reflection of the company’s management’s confidence in its platform model and the long-term growth potential of digital wealth and retirement planning in Asia.
Although risks are present, especially with regards to execution and valuation, the company’s model has the potential to substantially grow its earnings base if scale is achieved.
For long-term investors, the question is not how fast iFAST is growing, but whether it can continue to deliver high-quality profits from those growth rates.
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Disclosure: Darien C. does not own any of the shares mentioned.
