Payments

Japan’s JCB Taps on Soft Space’s Expertise to Power its Tap on Mobile Contactless Payment

									by Fintech News Malaysia
April 29, 2020
0 comments

JCB, Japan’s international payment brand, is leveraging Malaysia’s Soft Space’s technological expertise to develop the Tap on Mobile programme that capitalises on the wide availability of Android smartphones equipped with NFC (near-field communication). The programme enables merchants to accept card payments by simply having their customers tap their card on the merchant’s mobile phone.
This expansion is consistent with a previous statement to Fintech News Malaysia by Soft Space’s CEO Joel Tay which he shared that the company has their eyes set on Japan where they can leverage off their existing relationship with Sumitomo Mitsui Card.
JCB Contactless card or mobile device can be used at any merchants that support JCB Contactless, Aimed at driving greater contactless acceptance among JCB acquirers worldwide, JCB has developed the Tap on Mobile programme which will be used to govern all aspects of contactless payment transactions securely made on NFC-enabled Android smartphones, off the shelf. This programme is secure and interoperable based on EMV and PCI standards.

Similarly, in Malaysia, Soft Space deployed tap-on-mobile solutions in collaboration with the likes of PayNet and Maybank,
Tac Watanabe
“We are pleased to be working with Soft Space on this Tap on Mobile programme,”
said Tac Watanabe, the Executive Vice President for JCB’s Brand Infrastructure and Technologies Department.
“The Tap on Mobile is secure yet convenient for our customers, and given the growth of contactless payment transaction and consumer smartphones worldwide, we believe that the Tap on Mobile will be the key initiative for JCB to drive our contactless agenda to grow globally.”
Joel Tay
“We are privileged to be working on JCB’s Tap on Mobile programme,”
said Joel Tay, Chief Executive Officer of Soft Space.
“With businesses being constantly challenged by changing global economic scenarios, Tap on Mobile is a tool that can aid them through such times by offering them an innovative, cost-effective and secure payment solution.”

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Lending

microLEAP Partners with Masryef Management House to Launch Shariah-Compliant P2P Financing

									by Fintech News Malaysia
April 30, 2020
0 comments

Microleap PLT, a P2P (Peer-to-Peer) financing operator which manages microLEAP, has partnered with boutique Shariah advisor, Masryef Management House, to launch its Shariah-compliant investment notes.
Based on principles of Commodity Murabahah, Masryef Management House ensures that the Islamic funds raised on microLEAP’s platform adhere to ethical and Islamic teachings and that they are compliant with the resolutions issued by the Shariah Advisory Council of the Securities Commission of Malaysia.
“We have worked together with microLEAP and our Shariah Supervisory Board to ensure that its Islamic Investment Notes are compliant with resolutions issued by the Shariah Advisory Council of the Securities Commission of Malaysia (SACSC) and within Islamic teachings.” states Khairil Anuar Mohd Noor, Principal of Masryef Management House.

Tunku Danny Nasaifuddin Mudzaffar
“With Malaysia being a global leader in Islamic Capital Markets, Issuers on microLEAP’s platform have the option of raising funds via our Shariah-compliant Investment Notes to tap the Islamic P2P financing market. Provided that the nature of business is in line with Shariah requirements, any Issuer may raise Islamic funds.”
states Tunku Danny Nasaifuddin Mudzaffar, Founder and CEO of microLEAP.
“Added to that, any P2P Investor may invest in these notes if they are looking for Islamic and ethical assets.”

Featured image: (L) Founder & CEO, microLEAP, Tunku Danny Mudzaffar & (R) Principal, Masryef Management House,  Khairil Anuar Mohd Noor

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E-Wallets
WealthTech

Securities Commission to Allow for E-Wallets to Sell Capital Market Products; TNG eWallet Welcomes the Move

									by Fintech News Malaysia
May 5, 2020
3 comments

The Securities Commission Malaysia (SC) announced today that it will facilitate the online distribution of capital market products such as unit trusts, through e-Services platforms like e-wallet or e-payment service providers.
The Guidelines on Recognized Markets has been amended to introduce a new chapter on “e-Services platform”, which contains the registration requirements and ongoing obligations for e-Service providers.
This amendment will allow operators of e-wallet or e-payment applications to partner with Capital Markets Services Licence holders to distribute capital market products to investors. E-wallets or e-payment operators which are currently subject to the oversight of another sectorial regulator will be required to obtain the prior approval from the said regulator before submitting their application to the SC.

Datuk Syed Zaid Albar, Chairman of the SC said,
Datuk Syed Zaid Albar

‘‘The SC will continue to facilitate the development of innovative digital solutions to improve access to investments for all participants of the Malaysian capital markets. The introduction of the e-Service platform framework will facilitate the wider distribution of capital market products through digital platforms which are already familiar to our investors,”

Welcoming the move, Ignatius Ong, CEO, TNG Digital who operates one Malaysia’s most popular e-wallet brands said,

“As a brand that champions digital inclusivity for our users from all walks of life, we are pleased with the Securities Commission’s move to allow players such as Touch ‘n Go eWallet, the leading e-wallet in Malaysia to officially offer financial products. We will be rolling out a suite of financial management products soon that will enable us to build financial resilience and literacy for the masses. Our 10million strong users from various financial capabilities will now have the opportunity to navigate and manage their finances through a platform like Touch ‘n Go eWallet.”
The SC had stated during its virtual press conference held on 16 April 2020 that it observed an increase in the number of online trading accounts being registered. At the same time, there has also been a shift among licence holders towards using digital channels to distribute capital market products and services.
Interested operators will have to register with the SC as a recognized market operator (RMO) and may submit their applications from today onwards.

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Blockchain/Bitcoin

Meet the Team Launching a Crypto Exchange During the COVID-19 Pandemic

									by Vincent Fong
May 11, 2020
4 comments

The cryptocurrency market sure has come a long way from its very tumultuous year of 2019 when the then Finance Minister Lim Guan Eng announced new regulations that meant crypto exchanges operating with prior approval from Securities Commission Malaysia may face RM 10 million in fine or face a ten-year jail sentence.
The new regulation which kicks in a day after the announcement, triggered a rush of players seeking approval from the regulator, of the over 40 exchanges that were identified by the Securities Commission to be operating at that time, 22 applied and a year later we now have 3 cryptocurrency exchanges that are permitted to operate in Malaysia.
Among the 3 exchanges that were approved, only SINEGY is a homegrown company. The company was founded in 2017 in George Town, Penang, by Kelvyn Chuah a former Wall Street trader along with his team founding team Wei Chi and Edgar who run the business development and operations respectively.

Having caught the earlier wave of cryptocurrency adopters, the company was able to transact over US$ 16 million in 6 months before they had to put trading on pause when new regulations kicked in. Spending most of their year ticking the checkboxes of the regulators, SINEGY secured blessings from Securities Commission Malaysia to operate their exchange in March.
Though fate is a tricky thing sometimes, their approval came right in the thick of the COVID-19 pandemic and the Movement Control Order. Cryptocurrencies saw a sharp decline which sent bitcoin prices hovering around US$ 4,000 – US$ 5,000. At the time I asked Kelvyn where he sees the prices moving towards — he didn’t seem too concerned about the temporary drop in prices, he was confident that the early adopters and bitcoin fundamentalists would drive prices up again nearer to the much anticipated halving event.
Looking at the charts — it seems Kelvyn’s statements prove to be right, several days away from the bitcoin halving the price has briefly broken the USD$10,000 barrier. Regardless of price, he sees plenty of opportunities for Malaysians to look at cryptocurrencies as an alternative stream of income, Kelyvn has observed a number of enterprising Malaysian arbitrage traders who are taking advantage of the price discrepancies between exchanges.
Despite the fact that they had to effectively put their business on pause for nearly a year to comply with new regulations, Wei Chi lauded the regulator for putting in place a framework to protect investors. He commented that given Malaysia’s position as an emerging economy, the priority should first and foremost be investors protection and not short term gains.
Edgar echoes Wei Chi’s view as well, he seemed bullish about the upcoming IEO regulations by the Securities Commission which was announced in January this year. The new guideline permits for digital token offerings to be carried out by a recognised platform operator. This move allows for enterprises a new method of fundraising and investors a new asset class to consider.
In the face of very challenging market conditions brought on by the pandemic, Kelvyn remained optimistic about the prospects for SINEGY. With all the right regulations mostly in place he said his team is shifting gears to now ramp up awareness and generate demand in Malaysia. Kelyvn also hinted at interests in being an IEO platform to facilitate fundraising exercise and his openness to team up with local players.
Ultimately, his eyes are set on being the leading digital asset exchange in Malaysia, he estimates that only 1% of Malaysians are exposed to digital assets and that in a few years time we will have a robust digital assets marketing comprising of institutional and retail investors.
To learn more about SINEGY and the work they do do check out their site at www.sinegy.com

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Blockchain/Bitcoin

GlobalSadaqah to Enable Zakat and Waqf Payments Using Bitcoin

									by Fintech News Malaysia
May 11, 2020
2 comments

GlobalSadaqah in collaboration with SINEGY and LuxTag announced today an initiative to facilitate cryptocurrency donations on their platform. In their statement, they said that the aim of this collaboration is to raise awareness and to educate the community of Muslim cryptocurrency owners about the need to pay Zakat on their digital assets.
GlobalSadaqah  Islamic Social Finance Platform focusing on CSR, Zakat and Waqf Management. It features a wide range of campaigns from trusted and verified partners from across the globe. SINEGY is a digital asset exchange which is approved by the Securities Commission Malaysia and Luxtag enables the tracking and tracing of products using blockchain.
Mohd Alim, Co-Founder and Chief Product Officer of Global Sadaqah believes that the crypto community can make a huge impact and that this is a major step forward.

As of today, with the addition of Bitcoin, GlobalSadaqah allows donors to donate using FPX (direct bank transfer system), Visa, Mastercard, PayPal, and various e-wallet options in Malaysia such as TouchnGo, Boost, GrabPay, and RazerPay. Donations via ApplePay and GooglePay are also available for donors donating from countries where the service is supported. They said this is in line with GlobalSadaqah’s mission to make giving charity as easy and as efficient as possible.
Umar Munshi
Umar Munshi, Managing Director of Ethis Global, the parent company of GlobalSadaqah said,
‘Blockchain has a lot of potential to increase the effectiveness of social finance. This is just the first step for us to integrate blockchain into the Islamic fintech ecosystem we are building. Another interesting area is blockchain-based notarizing of Waqf (Islamic endowments) documents and wills, among other things.’
Islamic social finance has been identified as a large and important avenue to alleviate the challenges brought about by the ongoing pandemic, and can play a large role in economic recovery through social upliftment. Zakat alone is estimated to be at least five hundred billion dollars a year.

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Crowdfunding
Lending

MTDC to Co-Invest up to 30% in P2P and ECF Campaigns with pitchIN and MicroLEAP

									by Fintech News Malaysia
May 12, 2020
0 comments

Malaysian Technology Development Corporation (MTDC) today signed two MOUs with pitchIN and MicroLEAP respectively to collaborate and cooperate in the areas of peer-to-peer (P2P) financing and equity crowdfunding (ECF).
The collaboration enables MTDC to participate in equity crowdfunding investment and P2P financing up to 30% in eligible prospective companies per campaign. In a statement, they said this partnership is to create synergy between private funded companies and funds provided by the government.
The idea behind this partnership is to collaborate with private funding companies so that synergies can be created between the funds provided by the government and the sophisticated investors that invest in this platform.

In their respective agreements, MTDC will co-invest up to RM900,00 or 30% with investors in pitchIN’s crowdfunding platform and up to RM 500,000 or a maximum of 30% of notes issued by MicroLEAP’s P2P financing platform.
MTDC has allocated a co-investments of RM 10 Million for the ECF platform, meanwhile, for the P2P financing platform they’ve allocated a RM 2 million co-investment fund.

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Insurtech

How COVID-19 Has Forced Insurers to Rethink Digital

									by Vincent Fong
May 21, 2020
0 comments

We’re living in a once in a generation health crisis. Millions of people worldwide have been affected by the coronavirus pandemic, and many have been left jobless and many more will be feeling the impact for several years to come.
Now is the time for institutions and industries to be our heroes and help the societies that have been supporting them for so long. One of the oldest industries on the planet has one of the most important roles to play: keeping our citizens healthy. With a health crisis such as this one, the role of the insurer has never been so relevant.
In a virtual fireside chat, I spoke to Rohit Nambiar, CEO of AXA AFFIN Life Insurance Malaysia where we deep-dived into the impact of COVID-19 on the insurance sector and what the company is doing in response to it.

AXA AFFIN’s Role in Combatting COVID-19
Rohit explains that they have been on the ground since day one, on a national level, AXA AFFIN has done a wide variety of things to combat the crisis from donating to ICUs to launching crowdfunding campaigns to raising funds to buy PPE equipment for our medical frontline. AXA AFFIN is also part of the consortium between Life Insurance Association of Malaysia (LIAM), Persatuan Insurans Am Malaysia (PIAM) and Malaysian Takaful Association (MTA) to provide RM 8 Million fund to widen access to COVID-19 testing.
On the customer’s front, Rohit said that they have teamed up with Naluri, a healthtech firm started by Azran Osman Rani to help provide their customers free 2 weeks mental health care through the app to help them cope with this uniquely difficult situation. Much like other insurers, AXA AFFIN will be providing coverage for any customers affected by COVID-19 and premium deferrals for those who are eligible
The Virus’ Impact on the Insurance Sector

Rohit mentions that one of the main impacts he is seeing on the insurance industry is a large increase in awareness of the importance of having health insurance. Insurance, he says are unfortunately still a very trigger-based purchase, a pandemic like this wakes people up to how important it is to be protected.
He added that insurance is one of the few sectors where customers are looking to increase the value, where 30% of customers are looking to either purchase new products or add more coverage. Sharing data from AXA AFFIN Life, Rohit said that their digital insurance business tripled compared to last year and this year they are looking at double that amount, he attributed it partially to COVID-19 being a catalyst for digital adoption.
They are also seeing higher engagements on their digital platforms to perform a number of things including updating their details, Rohit sees this trend as positive as it will free up the time of insurance agents and enable them to do what they do best — provide service to their customers.
A Complete Reinvention of the Agent Distribution Model

There was a time where insurance agents view the digital distribution model as an existential threat to them. Rohit is of the view that digital technologies will be complementary to agents rather than a threat.
As an example, he shared about their medical card AXA eMedic which can be purchased online within 5 minutes and without medical checkup (I know, I’ve tried). With the price point being as low as RM 37, Rohit jokingly said that the commission was hardly worth it for insurance agents to sell.
This digital channel, instead of acting as a threat to the agents, instead has been a boon, Rohit said that this has acted as a funnel for customers looking to expand their protection plan. This pool of customers were passed on as leads to the agents where they can provide tailored advice on what plan best meets their financial needs.
With MCO, agents have to move their interactions online, insurance agents are able to serve more customers than they were able to before. Instead of looking for parking and getting stuck in Malaysia’s infamous traffic jams, agents can focus their time on interacting with customers instead.
Rohit is of the view that this trend will continue post-MCO. Similar to more advance insurance markets in the world like UK and China, he predicts that advisory channels will still remain the largest contributors to life insurance and commercial insurance sales. He foresees that transactional products like general insurance, motor and simpler products will go fully digital.
He is actively encouraging agents to have a strong digital presence, something Rohit believes could open the door to many new opportunities.
The full video of our fireside chat can be found below if you are interested in even more nuggets of wisdom.

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WealthTech

In Less Than 3 Years, Rakuten Trade is Now Profitable

									by Fintech News Malaysia
May 13, 2020
0 comments

Rakuten announced that is has marked a major milestone by turning to black ahead of its third anniversary.
According to their media statement, they have activated almost 85,000 trading accounts. They also shared that they have handled more than RM12.5 billion in total trading value on Bursa Malaysia since business their inception. As of 30 April 2020, Rakuten Trade’s retail market share is more than 5% while the clients’ assets under trust had exceeded RM1 billion.
Positive on the growth prospects of the company as it enters its fourth year of business, Mr Kaoru Arai, Managing Director of Rakuten Trade, said,

Kaoru Arai
“Innovation and our FinTech framework has been pivotal for the company turning a profit in April 2020. It is, though, a balancing act of being cost-effective, flexible and keeping our client’s experiences at the core of everything that we do. In less than three years, we surpassed our internal targets and continue to appeal to the rising number of technology savvy investors in Malaysia. These investors prefer a convenient, zero contact, and easy to use mode of investing,”
added Arai.

The digital brokerage firm also previously reported a 100% month-on-month growth with over 11,000 new accounts opened in March. Rakuten Trade expects to reach 100,000 active accounts by the end of 2020.

Featured image by Lorenzo from Pexels

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WealthTech

11% of eToro’s Asia Pacific Customers Are From Malaysia

									by Fintech News Malaysia
May 18, 2020
5 comments

Multi-asset investment platform eToro has announced that it will extend its commission-free stocks offering to clients in Asia-Pacific, effective immediately.
The zero-commission offering for Asia Pacific clients applies to all stocks on its platform that are traded on the Nasdaq and NYSE exchanges. The company believes this makes eToro the first platform to offer commission-free stocks and fractional shares globally
In an email to Fintech News Malaysia, the platform claims that in Malaysia alone the number of people investing for the first time in on eToro grew over 200% in the first for months this year compared to the same period last year. They also shared they 11% of their users in Asia-Pacific are from Malaysia.

When seeking comment on their legality to operate in Malaysia, they clarified that investors in Asia are “regulated under eToro’s Australian Securities and Investments Commission (ASIC) license” and “therefore investors can trade through the ASIC license”
We’ve also reached out to Securities Commission Malaysia to seek further clarification and will update this once we get an official response.
UPDATE: Securities Commission Malaysia has issued an official statement that eToro is not licensed to operate in Malaysia, the full statement can be read here.
Yoni Assia
Yoni Assia, Co-Founder and CEO of eToro, said:
“eToro was founded with the goal of opening up financial markets to all. We hope that by offering commission-free investing for the most frequently bought stocks on eToro more people will start investing. We are on a mission to get more people passionate about investing.”
The move to zero-commission on all stocks on eToro that are traded on the Nasdaq and NYSE exchanges removes one of the main barriers to entry for many investors – costs. By offering fractional shares the eToro platform allows investors to buy as little as 0.001 of a share, enabling users to diversify their portfolio with stocks that they otherwise might not be able to afford. People can open a position in the most popular stocks without commission from as little as $50.
Stocks traded on the Nasdaq and NYSE exchanges are the most popular stocks on the eToro platform. They currently represent 82% of all stocks traded on eToro globally.
Asia Pacific is one of eToro’s fast-growing markets. In the first four months of this year, the platform has seen over a 400% increase in users from APAC, investing for the first time compared to the same period last year.

Jasper Lee
Commenting on the move, Jasper Lee, Managing Director of Asia, eToro, said:
“A commission-free stocks offering is the next step in eToro’s expansion in Asia Pacific. We’re committed to growing our footprint here and are therefore continually enhancing our proposition to deliver value to our users. By reducing the cost of entry, we also want to encourage more people to start investing.”

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Payments

Soft Space First to Join Visa’s Fintech Fast Track Program in Malaysia

									by Fintech News Malaysia
May 21, 2020
1 comment

Visa announced today that Soft Space is joining Visa’s Fintech Fast Track program, becoming the first Fintech partner to do so in Malaysia. The Fintech Fast Track program allows Fintech partners to build and deliver new commerce experiences on Visa’s payments network.
As part of the Visa Fintech Fast Track program, the two companies will work together to offer start-ups and technology companies the opportunity to work with Soft Space to launch Visa prepaid card products in Malaysia.
This solution is introduced through Soft Space’s wholly-owned subsidiary, Fass Payment Solutions Sdn. Bhd. (“Fasspay”), which is an e-money license holder regulated by Bank Negara Malaysia.

Ng Kong Boon
Visa Malaysia’s country manager, Ng Kong Boon, says that there are huge opportunities for startups and technology companies to transform their business offerings to consumers in an age of digitalisation.
“We are excited to welcome Soft Space as our inaugural partner for Visa’s Fintech Fast Track program in Malaysia. We will work closely with Soft Space to support their growth in creating digital payment products that are relevant to the needs of our cardholders in the country.”
Joel Tay
Soft Space’s Chief Executive Officer, Joel Tay, said,
“By joining Visa’s Fintech Fast Track program, our partners are able to introduce their own Visa prepaid cards, thereby offering more features including expense tracking and worldwide acceptance. Moreover, partners will not have to deal with complex technology and regulatory approval issues, thereby enabling them a quicker go to market in a cost-effective manner especially during uncertain economic times.” he adds.
This is not the first time that Visa and Soft Space are working together. In June 2019, the two organisations collaborated on developing Maybank’s Tap2Phone solution.
A world’s first, Tap2Phone supports PIN-based contactless card acceptance on NFC-enabled (near-field communication) Android smartphones. The launch is aimed at catering to small businesses as well as delivery and sales agents, all of whom can enable card payments via the app instead of using a point-of-sales (POS) terminals.
The Visa Fintech Fast Track program makes it easier for Fintechs to access the global Visa payments network. The program is part of Visa’s global strategy to open up our network and support a broad range of players that are developing new commerce experiences.
The Fintech Fast Track program provides a new commercial framework that includes eased access to Visa’s payment capabilities and streamlined processes to support companies of different sizes and at different growth phases.

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Insurtech

Digi Partners With AXA AFFIN to Offer a Pre-Paid Internet Plan That Comes with Insurance

									by Fintech News Malaysia
May 22, 2020
0 comments

Digi together with AXA AFFIN Life Insurance is offering Digi Abadi, Malaysia’s first of its kind prepaid internet plan that comes bundled with free life insurance cover. This prepaid plan that they described as “limited edition” is an effort by both companies to ensure Malaysians continue to stay connected and well protected especially when health is a key concern for everyone at this time.
Digi Abadi bundles both connectivity and insurance cover into one single plan. Exclusively available via Digi Online Store for 100,000 customers, this plan is open to all eligible Malaysians aged 30 to 55 years old.
To subscribe to Digi Abadi, customers will need to purchase the starter kit at RM28, preloaded with a life insurance cover of up to RM40,000 for death, accidental death and funeral expenses, providing customers protection at no additional cost.

The plan also offers customers 3GB of fast internet quota with 30 days validity, 10 sen/minute for calls and SMSes to all networks, and a 365-day SIM validity. Every 30 days, this plan will subsequently renew at RM20 where customers continue to enjoy the life insurance cover and internet quota. Customers will also enjoy loyalty bonuses of up to RM55,000 life insurance and 6GB internet quota the longer they stay on the plan.
Digi Abadi is open to new registrations only while existing Digi customers will need to register a new line if they are interested. Each customer is entitled to only one line with one Life Insurance policy.
Loh Keh Jiat
Digi’s Chief Marketing Officer, Loh Keh Jiat said,
“Our aim is to provide customers with an easy and affordable way to look after their family as Malaysians brave through these unprecedented times. We understand the renewed urgency to be insured while being able to manage spend on essentials such as connectivity. And so, we developed this plan to give customers the peace of mind of knowing they are protected without any additional financial commitments. It is truly one plan with two great values; maintain your line and you continue to enjoy connectivity and be insured for free.”
Rohit Nambiar
Rohit Nambiar, Chief Executive Officer, AXA AFFIN Life Insurance added,
“Congratulations to Digi for creating such an innovative proposition for their customers by making protection accessible along with internet, while they stay safe at home. We are honoured to be partnering with Digi once again to inaugurate another first-in-the-market offering that could potentially bridge the protection gap for Malaysians. As an insurer, it is our responsibility to reach out to as many people possible to ensure they understand the importance of insurance especially in times of heightened awareness. I am confident that this collaborative approach would enable us to offer products and services that best suit each individual’s needs, reinforcing further our purpose to empower people to live a better life.”
Customers will enjoy loyalty bonuses with consistent renewals. They will receive an extra RM5,000 in death benefits and a 1GB upgrade to the base Internet quota on every 13th renewal, with a maximum of three upgrades that will increase their Internet quota to 6GB Internet and death benefit up to RM45,000. The Accidental Death and Funeral expenses benefits remain at RM8000 and RM2000 respectively.

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Payments

How Past Lessons in Digital Payments Can Help Banks Navigate in the New Normal

									by Wissam Khoury, Finastra
May 20, 2020
0 comments

The past couple of decades have seen a complete upheaval in where we buy things and how we pay for them. New technologies have led to huge shifts in consumer behavior and expectation, while businesses have benefitted from faster and more efficient processes.
Today, with physical businesses closed and much of the world’s population still being asked to stay at home, we find ourselves in an unprecedented situation. As a result, the growing acceptance and adoption of digital payments – a trend which was already strong in APAC – has seen years of progression in a matter of months.
As we look towards an uncertain future, it is useful to reflect on the journey so far to look at the challenges those in the payments space have, are, and might face – and how they can overcome them.

Milestones in Consumer Payments
The first decade of the new millennium saw a boom in online payments, with companies like Amazon, eBay and PayPal managing to build payments experiences that were relatively frictionless, as well as demonstrating that online payments were secure.
The decade that followed was the era of mobile. Apple released the first iPhone in 2007, firing the starting gun on a race for innovation and new business models that has been as fast as it has impactful. Mobile payment options began to emerge and Google wallet was introduced in 2011, offering consumers the ability to store and pay with credit cards on a mobile device.
Apple responded with Apple Pay in 2014 and the number of global mobile payments skyrocketed, surpassing desktop transactions for the first time.
image credit: VISA
Mobile also created a platform for a new generation of technology companies that would benefit from APAC’s high rates of smartphone penetration and high numbers of people who are unbanked or underbanked. By focusing on customer service and user experience, as well as being able to offer access to payments services to those neglected by traditional finance, these players have taken banks by surprise and acquired significant amounts of customers in a short space of time.
This has led to a significant lesson for incumbent banks – the value of fintech collaboration. Big banks need to offer more innovative payments services to customers in order to compete with digital challengers. However, the incumbents are often hampered by legacy infrastructure, whereas the challengers are digitally native, agile, and often able to focus on doing one thing really well. By partnering with agile fintech developers, big banks have been able to bring new services to market quickly, avoiding the costs and long lead times involved in developing capabilities themselves.
The Challenges for Business
Businesses have faced similar challenges to banks. While digital solutions offer the chance to do things better and offer new revenue streams, they must also deal with existing processes. Many businesses are still accommodating several payment channels, each with an independent system and workflow. The lack of visibility between these channels can create bottlenecks in the process, often challenging an organization’s cash flow.
Even with digital payments, it isn’t uncommon for payments to arrive separately from remittance information, requiring manual matching. Inefficiencies like this can create friction, making it difficult to determine when a payment has been made and to track overdue invoices. Time spent resolving these issues can lead to high costs for businesses.
With businesses expected to process many more electronic payments in future, it is important they work with technology providers that can help them implement high rates of straight-through processing (STP). This automated process allows the entire payment process, from initiation to final settlement, to be free of human intervention, greatly reducing error and cost.
Another significant challenge for businesses is ensuring that all payment processes work together. Without a seamless relay of information, delays in processing can result as well as a lack of transparency that inhibits efficiency. There is also a continued reliance on paper invoices, despite the availability of technologies that allow for digitization of the payments. Businesses spend many hours per week on paper-based processes, such as investigating invoice exceptions, discrepancies and errors.
Emerging technology
Fortunately, advanced technologies are leading to solutions that can help banks support business customers with the tools they need for seamless, efficient accounts receivables and accounts payables processes.
For instance, Robotic Process Automation (RPA) is a form of automation technology, leveraging artificial intelligence and machine learning, that can perform simple, repeatable human tasks faster and with fewer errors. With payments, RPA can rapidly extract data from invoices or account details. Reducing the need for manual entry not only speeds the process but also reduces the risk of error. This will also benefit businesses by capturing data from various channels and integrating legacy payment systems and core banking environments to automate the entire payment lifecycle.
The next decade will also be more secure, as consumers and businesses alike strike back against cybercrime and identity theft. Biometric authentication, which is already ubiquitous on smartphones and has been tested in physical retail settings, has the potential to replace frustrating and time-consuming multi-factor authentication processes by the decade’s end, securing financial data and systems for a more integrated and safe payment tomorrow.
Payments in the new normal
As we move into a future where even more people are using digital payments and the use of cash declines even further, consumers can expect to have greater choices of payment method. They will be able to choose based on ease-of-use, their cash flow management needs, credit accessibility and rewards programs. Artificial Intelligence will help consumers decide which option will work best for them at that point in time. The only question is how quickly banks will react to the new normal in the face of agile, specialized digital challengers.

This article first appeared on fintechnews.sg

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E-Wallets
Payments

Razer Fintech and Google Partners for Offline Payments

									by Fintech News Malaysia
May 27, 2020
1 comment

Razer Fintech has announced that Google Play Store consumers can make offline-to-online (O2O) payments through its Razer Cash solution.
With Razer Cash, Google Play Store customers can have the added option of purchasing Google Play in-app items and topping up of Google Play credits by paying cash at offline acceptance points.
This O2O solution especially addresses the needs of users who had the interest in purchasing digital goods yet unable to due to a lack of a credit/debit card, or an internet-ready bank account. This solution will be first available at the 2,761 7-Eleven stores across Malaysia.

Limeng Lee
“Razer Fintech recognizes the needs of the underserved and underbanked population, and we want to bridge the gap between offline to online channels,”
says Razer Fintech CEO Limeng Lee.
“With Razer Cash, we can now open up a new channel for users to gain access to Google’s in-app products. This partnership underlines Razer Fintech’s commitment to work with a best-in class industry leader such as Google to create and deliver practical financial solutions for the general public especially in the emerging markets”.
The acceptance of Razer Cash represents the deepening partnership between Razer Fintech and Google.
“Regionally, in Thailand and Malaysia, Razer Fintech has already availed the Google Play Store gift cards at physical stores. There, users can purchase these Point-of-Sale-Activated (POSA) cards to top up their Google Play balance,”
Eng Sheng Guan, Head of Razer Merchant Services adds.
“Meanwhile, Razer Cash is already utilized by other leading partners in Malaysia such as Lazada, Shopee and Agoda.”

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Lending

CapBay Partners With TheLorry to Offer Financing for SME Lorry Drivers

									by Fintech News Malaysia
May 29, 2020
0 comments

CapBay, P2P Supply Chain Financing platform registered with Securities Commission Malaysia, announced a collaboration with TheLorry their “Express Financing” Program. The program is said to be tailored to the logistics industry and is aimed at increasing accessibility of digital financing solutions to TheLorry’s SME base.
With this, they said lorry drivers can easily apply for collateral-free financing upfront and defer toll expenses up to 60 days later. CapBay has seen a spike in financing volumes in recent weeks for the Express Financing program as there has been increased activity in the logistics sector driven by a switch to e-commerce in light of Covid-19 risks.
Through the collaboration, CapBay is able to access over 10,000 driver partners on TheLorry platform, most of which are underserved by traditional banks and have very limited access to financing. CapBay enables fast and seamless onboarding with simplified credit checks, made possible using track record available from TheLorry’s platform marketplace. This means that even lorry drivers with poor credit score can enjoy favourable financing rates.

Nadhir Ashafiq
“Through the financing solutions offered by CapBay, driver-partners can now join us without much hesitation,”
said Nadhir Ashafiq, Co-founder and Executive Director of TheLorry.
“TheLorry offers a comprehensive and integrated marketplace model. We connect professional drivers with corporate and individual customers through game-changing technology. Ever since integrating our offerings with CapBay’s Invoice Financing solution to support our business and driver-partner community, we have seen operational costs reduced as well as improved cashflow position – all of this whilst empowering our driver-partners to unlock weekly cashflow at the same time.”

“Our business partners and team members have worked tirelessly to get the Express Financing program up and cater to the increased demand ahead of Hari Raya,”
said Darrel Ang, Co-Founder of CapBay.
“It was designed to help even the smallest businesses and entrepreneurs. Many of our customers who would typically struggle to get traditional financing were happy to get it from us and in time for Hari Raya. We have been a strong advocate of financial inclusiveness, and we hope our program will continue to scale in helping the B40s, during Covid-19 and beyond.”

Featured image: from left to right: Darrel Ang, Co-founder of CapBay and Ethan Lim, Country Manager of TheLorry signs MoU

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Insurtech

PolicyStreet Raises RM 7.8 Million Series A Round Led by KK Fund

									by Fintech News Malaysia
June 2, 2020
0 comments

During the height of the COVID-19 crisis, PolicyStreet, a Malaysian insurtech company opened its fundraising exercise to the angel network via equity crowfunding platform PitchIN.
The startup closed its campaign earlier than scheduled after achieving more than 500% of the minimum requirement, making it one of the largest funds to be raised from an ECF platform in Malaysia. The exercise was participated by both international and local investors including a government co-investment fund that saw the potential of its insurance business; having grown more than 40 times last year.
PolicyStreet has successfully raised US$ 1.8 million (MYR 7.8 million) in the Series A investment, which is led by KK Fund, an existing investor of PolicyStreet. The investment round is also see participating from Spiral Ventures, another Singapore-based venture capital fund.

It aims to use the funds raised from this round to sharpen its technological capabilities, increase sales and marketing activities, and expand into new markets. It is looking forward to filling protection gaps and address customer needs in the South East Asian emerging markets.
Lee Yen Ming
According to Lee Yen Ming, co-founder and CEO of PolicyStreet,
“We are grateful and thankful to have the support of KK Fund, Spiral Ventures and 274 angel investors who believed in our business and saw our potential. We have undeniably attracted very notable and sophisticated investors from Board Members of listed companies, Executive Directors, C-suites, Vice Presidents and many others whom we will be looking up to for guidance and advice leveraging on their respective experiences.”
Koichi Saito
Koichi Saito, General Partner of KK Fund also added,
“I am very proud of the PolicyStreet team for being able to fundraise during this unprecedented crisis. Covid-19 has increased the awareness and need to have an adequate insurance protection which has accelerated the business demand for PolicyStreet. I am looking forward to seeing higher growth in their business as they expand in the region.”
Sam Shafie
Sam Shafie, CEO of PitchIN echoes the same sentiments,
“We’d like to congratulate PolicyStreet on their fundraising. Despite the challenges of fundraising during a global pandemic and the restrictions accorded by the local Movement Control Order, PolicyStreet has now become the most successful company to have fund-raise via Equity Crowdfunding in Malaysia. We’ve put this down due to their commitment to making themselves available for investors by utilising virtual platforms to reach out to the investors and a clear vision of where they’d like to take PolicyStreet to.”

In 2019, PolicyStreet was the only local insurance technology company that obtained the Financial Adviser and Islamic Financial Adviser approval from the Central Bank of Malaysia enabling it to work with over 35 insurers and offer more than 1,000 insurance products. The company serves emerging affluent, large conglomerates and SMEs.
They are also listed in Fintech News Malaysia’s top 20 fintech startups in Malaysia.

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Payments

KiplePay Joins Visa’s Fintech Fast Track Program

									by Fintech News Malaysia
June 4, 2020
2 comments

KiplePay announced today that the company is now able to issue Visa prepaid cards and has also joined Visa’s FinTech Fast Track program. Visa has been expanding its Fintech Fast Track program in Malaysia to allow FinTech companies to gain access to Visa’s network. In May, Soft Space was the first company to join the program.
The program is part of Visa’s global strategy to open up its network and support a broad range of players that are developing new commerce experiences.
Ng Kong Boon
“At Visa, we are focused on engaging and building strategic partnerships with the FinTech community. We’re extremely pleased to have KiplePay join us as a Fintech Fast Track program partner, and principal issuer. With KiplePay coming on board, we can reach out to underserved segments in Malaysia, such as merchant and student communities, and create relevant payment solutions to enable the movement of funds seamlessly and securely. This is aligned with our objective and the government’s goal to accelerate the use of digital payments in the country,”

said Ng Kong Boon, Visa Country Manager for Malaysia.
Kay Tan
Kay Tan, CEO of KiplePay, said that this partnership is an endorsement of the innovative work being carried out at KiplePay in the FinTech space. It also enables KiplePay to significantly expand its product and solution offerings.
“Once we issue a Visa prepaid card, we are able to leverage on Visa’s global acceptance footprint. We’re extremely excited to enable both online and offline payments using the 16-digit payment credential to our customers.”
“KiplePay’s vision has always been focused on powering the masses given we’re a digital financial services platform provider. We have been driving an inclusive cashless agenda across different communities, from instant disbursement of funds for government aid/benefits to powering small merchants and student communities,”
added Tan.
Both KiplePay and Visa will work together to enhance its e-wallet offerings including money withdrawals and access to 61 million merchants in over 200 countries. Through a spectrum of features such as loyalty programmes, mobile discounts, peer-to-peer transfers and a personalised e-wallet, KiplePay customers can make online and offline payments using a single app. The partnership with Visa will also enable e-wallet users and white label customers of KiplePay to tie their e-wallet offerings with either a physical or virtual Visa card.

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E-Wallets
Payments

Malaysia to Spend RM 1.2 Billion Promoting E-Wallets in 2020

									by Vincent Fong
June 8, 2020
1 comment

Malaysia’s Prime Minister Tan Sri Muhyiddin Yassin, announced a series of economic stimulus plans last week that is targetted at revitalising the economy which was weakened by the COVID-19 pandemic.
There were 40 initiatives worth RM 35 Billion under this recovery plan that was dubbed as “PENJANA”. Under the same plan, the Malaysian government announced an allocation of RM 750 million that is aimed at driving the adoption of e-wallets in Malaysia.
RM 50 will be credited into e-wallet accounts of approximately 15 million Malaysians. According to the Prime Minister’s speech, the RM 50 will also be matched with vouchers, cashbacks, and discounts of RM 50 from e-wallet companies participating in this scheme.

Malaysian’s above the age of 18 and earning less than RM 100,000 per annum are eligible for this scheme which will begin July 2020. It was not mentioned during the speech which e-wallets will be participating in this initiative.
A similar initiative named e-Tunai was launched by the previous government in January 2020 which set aside RM 450 million to give eligible Malaysians a one-time RM 30 credit into their e-wallets. The previous e-Tunai programme was participated by 3 e-wallet brands namely; Boost, GrabPay and TNG Digital.
If history is any indication it is likely that these three players will be part of the governments new RM 750 million plan to drive cashless adoption. In total, both administrations have allocated RM 1.2 billion to promote the use of e-wallets in Malaysia.

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Payments

Vircle Introduces Malaysia’s First Cashless Nurturing Solution For Schools

									by Fintech News Malaysia
June 11, 2020
0 comments

The much-anticipated reopening of schools has been revealed to begin in phases from 24 June onwards, with strict guidelines being reviewed by the government to help curb the spread of COVID-19.
As students resume activity at schools, they will once again have to handle bank notes and coins for their daily needs.
Concerned parents will have to look towards ensuring their children’s health and safety needs are met fully following schools reopening. To that end, Vircle has launched its parent-controlled cashless payment and nurturing solution, providing a convenient, contactless alternative to bank notes and coins.

With additional features allowing parents to be more involved with their children’s spending and eating habits digitally, Vircle provides a solution that delivers beyond the immediate COVID-19 needs, to being a lifelong partner to parents in the journey to nurturing smart, healthy and financially literate children.
The newly launched Vircle app enables parents to build a safe trust circle into which they can onboard their children into the cashless world. The Vircle E-wallet enables parents to provide digital spend allowances to children accompanied by usage rules, and have visibility and insights into how such allowances are being spent.
The purchase and consumption behavior of children is then converted into powerful health, nutrition insights and financial literacy actions to help parent nurture street smart children.
Gokula Krishnan
“As a parent myself, my children’s well-being is top priority for me, especially as they resume schooling. The holistic development of our children matter to us, COVID-19 will come and go but as parents we want our children to be successful, not only in the classroom but also in life in general.
This is why we are committed to providing the best parental control cashless experience that is truly financially inclusive for children, and a nurturing platform that stretches beyond the digitization of payments. While there are many solutions made available today that enable cashless transactions, Vircle is built by parents for parents, is extremely child-friendly and the first to enable both a parent and child to co-exist in a single E-wallet platform.”
said Gokula Krishnan, Founder and CEO of Vircle.
Gokula said that his startup was built upon 18 months of intense research and development involving banking, finance, child development and mental wellness experts.
Co-founders Gokula Krishnan and Paresh Khetani realized there was a much bigger opportunity around child nurturing which can be addressed through a properly designed parental control cashless platform.
Vircle’s unique platform meant they had to innovate from scratch, eventually becoming Malaysia’s first parental controlled cashless payment and nurturing solution.
To do this, Vircle had to go through a long and rigorous regulatory compliance process alongside their financial services partner Fass Payment Solutions Sdn. Bhd. (Fasspay), a subsidiary of Soft Space.
The reopening of schools will lead to canteens resuming operations where students may need to pre-order their meals and consume them in their classrooms.
Schools that partner with Vircle will allow parents to select, pre-order and monitor the meals consumed by their children at school. As COVID-19 conditions ease out, parents may gradually move from pre-order plans to giving children the freedom and control to select and purchase items in a true cashless manner.
With an estimated one in two adults found to be overweight or obese and nearly one in five contracting diabetes, Malaysian eating habits need to be improved, and fast.
Nutrition is the foundation of a healthy life and Vircle continues to innovate here, gamifying food consumption based on nutrition scores that motivate children to compete within a school or between Vircle schools by making healthier food choices.
As child allowances go digital with Vircle, so does the ability of parents to start teaching children financial literacy skills, like the ability to regularly save by setting daily, weekly, and monthly goals.
This is very much in line with the National Strategy for Financial Literacy 2019-2023 and teaches children to start spending and saving responsibly from a young age.
Bringing accessible and affordable holistic life skills to children around Malaysia is Vircle’s ultimate goal as it looks to expand its reach to more educational institutions in the coming weeks.
With over 14 leading schools committed to launch Vircle in stages across Malaysia and more coming onboard, Vircle is bullish on its’ future and is planning to release new and compelling nurturing features and capabilities regularly to keep parents, schools and children engaged.

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E-Wallets
Payments

Malaysians Donated Over RM1 Million During MCO via Boost

									by Fintech News Malaysia
June 12, 2020
0 comments

Beginning from the start of the Government initiated Movement Control Order (MCO) up through the holy month of Ramadan, caring Malaysians were quick to respond to calls for help and contributed over RM1 million to back the fight against COVID-19 and support underprivileged communities as part of homegrown e-wallet Boost initiatives.
A total of RM694,843.13 was donated to the Tabung COVID-19 by Boost fund to aid frontliners in the fight against the COVID-19 pandemic. The main disbursements were made to the Ministry of Health’s (MOH) Tabung COVID-19 and the National Disaster Management Agency (NADMA).
Mohd Khairil Abdullah
“It is very uplifting to see fellow Malaysians coming together during a time of crisis and it shows how the nation is ready to embrace digital technology as not only a new way of life, but also a means for doing good. The amount we’ve collected through Tabung COVID-19 by Boost helped MOH and NADMA in purchasing medicine, equipment and medical necessities to fight against the deadly virus. We are honoured for the opportunity to use our platform to serve our countrymen during this difficult time,”
said Mohd Khairil Abdullah, CEO of Boost.

Apart from Tabung COVID-19 by Boost, throughout the 30 days of Ramadan, Boost also collected a total of RM479,000 for charity organisations through the successful 30 Hari 30 Amalan campaign. The Ramadan campaign was in line with the larger ongoing #DoGoodWithBoost initiative and this year’s donations increased by four times (4x) the amount from what was collected during the same Ramadan period last year.
During the holy month, Boost featured one charity each day on its social media channels and within the Boost app to raise awareness about the great work these organisations have been doing for the needy as well as vulnerable communities.
“A key contributing factor to the success of these two donation drives was the simplicity of the process. Contributing to these causes and charitable organisations via Boost only takes a few simple screen taps, making it safe, easy and convenient to lend a hand and brighten up the lives of the underprivileged,”
Khairil said.
“Boost is determined to drive more innovative solutions through its e-wallet that will help make contactless & cashless experience the safest and most convenient way to transact. We will continue to look for ways to disrupt the way cash is used to transact and increase efficiency in all types of industries.
“Following the COVID-19 pandemic, we believe that we will continue to see an upward trajectory in cashless payment adoption. We are hopeful that Malaysians will embrace this ‘new normal’ and adopt a digital lifestyle. As e-wallets gain traction, Boost will continue evolving from a payment platform into providing wider reaching digital financial services for all Malaysians paving the way for the nation’s digital transformation,”
he concluded.

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Payments

500 Startups Invests in Recurring Payment Platform Curlec

									by Fintech News Malaysia
June 15, 2020
5 comments

Curlec announced today that they have secured funding from 500 Startups. The fintech startup which focuses on simplifying recurring payments said that they will be using the fund to further grow their Malaysian operations through product development, strategic initiatives and market expansion.
The company was launched in 2018 and received its seed funding from Captii Ventures in March 2019. Since its launch, Curlec now serves companies such as AXA Affin, Axiata, and Stashaway, as well as a wide range of SMEs.

Zac Liew
“In light of Covid-19, we continue to see growth in our offering, with many traditional businesses having to shift online. Despite the lockdown in Malaysia, we are continuing to average 20% month-on-month growth this year in transaction volumes, which just highlights the current demand that businesses have to move towards online recurring payments. We are thrilled to have a VC like 500 Startups believe in us and support us in this journey,”
said Zac Liew, Co-Founder & CEO of Curlec.

Khailee Ng
“Curlec has successfully gained strong traction in fulfilling the current market needs, in addition to accelerating business performance. There is a huge opportunity for the company to grow in this space, especially now with the unprecedented collaboration between FinTechs and governments in solving national issues of financial inclusion and digitalisation of economies not just in Malaysia, but also with other ASEAN countries on a national FinTech roadmap level,”
said Khailee Ng, Managing Partner of 500 Startups.

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Payments

BigPay Adds Vietnam and Australia to its Remittance Corridor

									by Fintech News Malaysia
June 19, 2020
0 comments

BigPay announced today the addition of two more new corridors for its international remittance service — Vietnam and Australia, with China coming soon. This follows their announcement in January of adding India, Nepal and Bangladesh corridors.
BigPay said that offering low-cost, transparent, and accessible way of transferring money abroad is a cornerstone of its financial inclusion strategy. According to them, these three countries have some of the highest numbers of outbound remittances from Malaysia and are likely to drive further growth.
There are 26,000 Malaysian students in Australia, and 174,000 Malaysian-born expatriates living in the country. Transfers from Malaysia to both Vietnam and China are in the billions per year, according to World Bank Data.

BigPay launched its international remittance services in September 2019, enabling users to send money directly from Malaysia to bank accounts in Singapore, Thailand, Indonesia, and the Philippines, with no hidden fees or extra charges.

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E-Wallets
Payments
Virtual Banking

Great Eastern Invests US$70M in Axiata Digital — The Largest Fintech Investment in Malaysia Yet

									by Vincent Fong
June 25, 2020
1 comment

Axiata Digital the digital services arm of telco operator Axiata Group today announced a strategic investment of US$ 70 Million by Great Eastern to boost its fintech business across the region. Leading up this strategic investment, the Axiata Group and Great Eastern previously entered into a partnership to promote insurance products through Axiata’s various platforms.
This deal is a significant milestone for Axiata Group and the Malaysian fintech scene as this is the largest investment yet into a Malaysian fintech. The closest second would be the acquisition of a 60% stake of Tranglo from Ekuinas by TNG Fintech, a Hong Kong based e-wallet operator that is not related to the local e-wallet operated by Touch ‘n Go. That deal was valued at RM 115 Million, equivalent to roughly US$ 26 Million.
With this investment, Great Eastern takes a 21.875% stake in the holding company for Axiata Digital’s digital financial services business with Axiata Digital Services Sdn Bhd holding the balance. The company, called Boost Holdings Sdn Bhd will comprise of its e-wallet business in Malaysia and Indonesia named Boost, Aspirasi a microfinancing and microinsurance platform, Apigate an API platform and Trust Axiata Digital Limited a joint venture with a local bank in Bangladesh Launchpad.

This investment puts the valuation of Boost Holdings Sdn Bhd at US$ 320 Million, Tan Sri Jamaludin Ibrahim, Group CEO, Axiata, shared during their press conference that the group is looking to build Malaysia’s first unicorn.
According to their media statement, the Boost e-wallet in Malaysia has over 7.5 Million users and 170,000 merchant touchpoints whereas their Indonesian arm has 544,000 merchant touchpoints. Meanwhile, according to Khairil Abdullah, CEO, Axiata Digital, the Aspirasi platform has already disbursed over US$ 20 million in loans to date.
The company will use the funding to expand its digital financial services businesses over the next year in Malaysia and the region which includes securing Boost’s next level push to develop its ecosystem of merchants and customers, enhancing Aspirasi’s credit scoring technology and potentially housing the digital bank.
Axiata Digital expressed earlier this year their interest to bid for the digital banking license under a new Bank Negara Malaysia framework that is to be issued soon. The company said in a previous statement that they are eyeing to launch a digital bank by 2021.
It sees massive potential in this are to serve diverse segments, especially the unbanked and underserved population, as using technology would drive down acquisition, distribution, and underwriting costs for a slew of financial products. Khairil further shared that on their Aspirasi platform, 50% of the merchants are receiving loans for the first time.
This marks the third strategic investment secured by Axiata Digital from well-established financial industry players. In 2018, Sumitomo placed an investment of US$ 20 Million into its digital advertising business ADA, and in 2019, Mitsui channeled an investment of up to US$50 million into the company.
Commenting on the strategic investment, Khairil Abdullah said,
Khairil Abdullah
“Over the past two years, we have been sharpening our focus on building and enhancing our digital financing services using digital technologies and our telco assets to serve the underserved. With the investment from an esteemed partner like Great Eastern we hope to further leverage emerging technologies to develop distinct financial and insurance innovations for consumers at the bottom of the pyramid as we continue on our journey to narrow the financial inclusion and protection gap in the country.”
Khor Hock Seng, Group CEO of Great Eastern said,

“This strategic investment will enable Great Eastern to participate in Axiata’s growing fintech expansion plans in the region. Axiata’s focus on providing financial services for the underserved, unbanked, and underinsured segment also resonates well will our business strategy.  By leveraging on Axiata’s network and digital capabilities, and partnering with them, we want to grow our reach into new customer segments to provide for the financial needs and ultimately improve their lives.”

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Digital Transformation
Virtual Banking

Bank Negara Malaysia Unveils New eKYC Guidelines Ahead of Its Virtual Banking Framework

									by Fintech News Malaysia
June 30, 2020
1 comment

Bank Negara Malaysia issued its policy document on Electronic Know-Your-Customer (e-KYC) on Tuesday, which follows their earlier exposure draft in December 2019. This new policy is in effect immediately for all financial institutions including banks, insurers, remmitance companies, money changers and more.
The policy document aims to accelerate and streamline practices of industry players in their adoption of e-KYC technology, the online process of identifying and verifying individual customers.
We’ve previously written extensively about how e-KYC is a crucial piece of digital banking puzzle and is an important preamble to the virtual banking framework which is anticipated to be released in 2020.

e-KYC enables the digital on-boarding of customers to occur anytime and anywhere. With the implementation of e-KYC, a majority of customers no longer need to visit the physical premises of a financial service provider to open an account. In addition to increased customer convenience, the digital on-boarding of customers enabled by e-KYC also lowers cost for both users and providers. This can also help increase competition in the financial sector over the long term.
The policy documents state that financial institutions may rely on humans to conduct eKYC via video calls or utilise technology like AI, machine learning and predictive algorithms to manage the process.
In their media statement, the central bank said that the introduction of this is in line with their effort to facilitate greater digital offerings of financial services. This is expected to pave the way for greater innovation in the financial sector, including end-to-end offering of digital financial services for customers.
The full document can be found here.

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E-Wallets
Insurtech

Boost and Aspirasi Launches Micro-Insurance Underwritten by Great Eastern Life Assurance

									by Fintech News Malaysia
July 1, 2020
0 comments

Axiata Digital’s e-wallet Boost and its digital financing platform Aspirasi announced today the launch of “Aspirasi Protect” – a microinsurance plan which provides affordable, accessible and on-demand protection to Malaysians. This new insurance product is underwritten by Great Eastern Life.
This launch follows Great Eastern’s 21.875% acquisition of a stake in Axiata Digital at US$70 million just last week.
The micro-insurance solution by Aspirasi builds on the ‘Protect’ pillar of the existing #BoostGotYou campaign launched during MCO which focused on catering to the daily necessities of businesses and households amid the outbreak.

With just RM1.50, the ‘Aspirasi Protect’ 7-day insurance coverage offers up to RM37,500 for accidental death of various causes, RM12,500 for critical illness protection for major head trauma or coma, and RM5,000 bereavement benefit upon accidental death.

The plan comes with additional financial assistance in the form of RM200 daily hospitalisation cash assistance upon diagnosis of COVID-19 up to a maximum of 60 days of hospitalisation and RM20,000 financial assistance upon fatality due to the virus. COVID-19 Assist is an additional financial assistance programme offered by Great Eastern Life Assurance (Malaysia) Berhad.
Mohd Khairil Abdullah
“The COVID-19 pandemic has given us all a wake-up call when it comes to safeguarding our health as we are now feeling the ripple effects of ensuring the health and economic crisis brought on by a viral outbreak that can affect not only our physical and mental health but also our livelihoods and future. Boost understands that our health is our wealth. As the economy begins to reopen, it is the right window of opportunity to expand our offerings beyond just a payment option but also an e-wallet that offers affordable and accessible insurance coverage.
This is aligned with our long-term goals towards achieving a complete financial services offering. With that, we do hope Malaysians can be assured and have peace of mind that they are protected and covered when going about their daily lives in this ‘new norm’,”
said Mohd Khairil Abdullah, CEO of Boost.
Sheyantha Abeykoon
Echoing Khairil’s sentiments, Sheyantha Abeykoon, Executive Director of Aspirasi said,
“At Aspirasi, our goal is to narrow the protection gap in the country and we aim to achieve this by offering affordable and customisable micro- insurance solutions. As we navigate our way along with our customers during this unprecedented situation that is continuously evolving, we have been focused on innovating and developing new solutions to ensure that all Malaysians have simplified access to the right protection based on their needs.”
As a way to encourage users to obtain insurance coverage and protection, Boost will be offering 100% cashback for users who enroll for the 7-day insurance plan from now until 15 July.
Users can sign up in-app under the ‘Boost Protects’ tile by clicking to enroll via the ‘Aspirasi Protect’ micro-site. From there, simply enter your personal details and make a payment with Boost to get covered for a week. To be eligible for ‘Aspirasi Protect’, users must be aged between 18 – 69 years and must be a Malaysian citizen or permanent resident in the country.

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Insurtech

Finology Lands Partnership with Zurich for Road Tax and Motor Insurance Renewal Services

									by Fintech News Malaysia
July 2, 2020
0 comments

Over two million Malaysian road taxes remain expired since the Road Transport Department (JPJ) counters closed during the Movement Control Order (MCO). In an effort to help address this as well as Malaysia’s alarming number of uninsured vehicles on the road, Zurich General Insurance Malaysia is collaborating with Finology and their affiliate partner PayLink Global (M) Sdn Bhd (Payquik) to provide road tax renewal services and motor insurance purchase via Payquik’s network of kiosks in Malaysia.
Through this collaboration, road users in Malaysia will be able to renew their road tax or purchase motor insurance for their vehicles at approximately 250 kiosks. This will be available nationwide located primarily in the offices of utility companies, shopping malls, and government buildings for easy access.
Junior Cho
Zurich General Insurance Chief Executive Officer, Junior Cho, commented,

“We are constantly seeking fresh solutions that would meet the market’s evolving needs. Modern lifestyles have fueled the growing demand for convenience and ease of purchasing goods and services. With economic activities starting to resume, we understand the importance of road tax renewal, as well as motor insurance so Malaysians can commute to work with peace of mind as their renewal exemption period ends. This three-way collaboration with Finology and Payquik will provide wider access for drivers as well as riders to obtain the service and protection they need in a fast and easy manner.”
According to the 2018 statistics from JPJ, there are about 29 million registered vehicles in Malaysia. Out of this, only 19 million vehicles renew their road tax every year and about 95% of expired road tax are motorcycles.
Jared Lim
Jared Lim, Managing Director of Finology, shared,
“One might ask why a service kiosk is necessary if people have the option of paying online now. The reality is that there are still customers who prefer to pay with cash or who do not own a credit card. This means that these people do not have sufficient access to the necessary financial services online. Enabling motor insurance purchasing and road tax renewal through kiosks is a great alternative to paying online or over the counter. Plus, these kiosks are available 24 hours, allowing customers to make purchases or renewal at their convenience.”
They described this collaboration as a joint effort to promote financial inclusion and offer Malaysians comprehensive coverage while on the road. In 2019, Zurich and Finology collaborated to offer customers end-to-end online insurance quotation and purchase services via Finology’s platform loanstreet.com.my.

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Payments

Adyen Expands Acquiring Capabilities to Malaysia

									by Fintech News Malaysia
July 6, 2020
0 comments

Adyen, a global payments platform, today announced the expansion of its acquiring capabilities to include Malaysia.
They said that this move complements the company’s all-in-one payment platform allowing merchants like Fave, foodpanda and Love, Bonito to get the most out of each transaction with local payment processing.
A quick check on the Bank Negara Malaysia website shows that Adyen’s name has been added to the central bank’s list of regulatees, confirming its license to operate in Malaysia as a merchant acquirer.

This announcement extends Adyen’s local acquiring capabilities in Asia-Pacific, following launches in Australia, Hong Kong, Singapore and is supported by demand from international merchants looking to better serve Malaysia’s growing internet economy.
Warren Hayashi
“Rolling out our acquiring solution in Malaysia demonstrates our commitment to the region and to our customers’ needs in the market.
With Adyen’s acquiring solution in place, international merchants can better serve their customers and benefit from higher authorization rates and lower transaction fees.”
said Warren Hayashi, President, Adyen, Asia-Pacific.
With its technology and acquiring expertise, Adyen says that it is looking to provide insights around local regulations, schemes, and payment methods to help international merchants serve Malaysian shoppers better. Local acquiring will allow merchants to leverage Adyen’s integrated platform to deliver unified commerce experiences regardless of where their customers prefer to pay in store, online or using the app.
Adyen manages the entire payment flow which includes gateway, risk management, and acquiring for its merchants. This enables brands to accelerate global expansion and optimise payment processes, while continuing to meet the expectations of customers.
Adyen offers local acquiring in Australia, Brazil, Canada, Europe, Hong Kong, Singapore and the U.S.

Featured image: Warren Hayashi, President, Adyen, Asia-Pacific

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Blockchain/Bitcoin

Luno Malaysia Launches Litecoin on Its Platform

									by Fintech News Malaysia
July 6, 2020
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Following the introduction of XRP, Luno announced today that it has added Litecoin (LTC) to its trading platform. This is the fourth digital asset approved by the Securities Commission Malaysia to be traded by Malaysians. From 7th July, Malaysian customers will be able to buy, sell, store and learn more about this digital asset.
Litecoin (LTC), often referred to as the silver to Bitcoin’s gold, is a top ten cryptocurrency with a market cap of US$2.7 billion. The cryptocurrency, initially created in 2011, was developed to provide a faster and cheaper alternative to Bitcoin, with the aim of offering a better option for day-to-day digital currency commerce.
David Low
David Low, General Manager (Southeast Asia) at Luno commented:

“The Covid-19 outbreak is creating challenges for individuals, regions and nations around the world. However, unlike previous pandemics and crisis, we’re more technologically connected than ever – working remotely and shopping online – which is also changing the way people perceive cryptocurrencies. From large investment companies through to individuals everyone is reassessing how and where they work. They are also looking at how and what they invest in, what they use to make purchases or exchange value, and want to have access to digital assets like Litecoins.

Although LTC and Bitcoin (BTC) share some similarities, there are key differences between the two: LTC has new blocks four times as often, meaning it has shorter confirmation times (2.5 minutes against 10 in the Bitcoin network). Unlike BTC, which will only ever have up to 21 million coins, Litecoin will ultimately have four times as many coins meaning it is proportionately cheaper than Bitcoin. Finally, LTC’s hashing algorithm is memory-based rather than CPU-based, making it easier for the average person to mine.
“We only list digital assets that are safe, secure and have the utility benefits our clients want, that is why we’ve introduced Litecoin after seeking approval from the Securities Commission Malaysia. These are uncertain times but LTC’s instant and near-zero cost transactions are certainly characteristics which have contributed to the increase in interest for this digital asset. The turmoil caused by the pandemic has instigated a surge in the usage of digital money (as we’re encouraged to avoid the handling of physical cash) and fintech apps. Times have changed, more and more people are turning to cryptocurrencies, and as soon as they do they understand the benefits they offer.”
added Low.
Luno, is the first regulated digital asset exchange approved by the Securities Commission Malaysia they claim to have already handled RM 32 billion in transactions globally.

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Blockchain/Bitcoin

Securities Commission Malaysia Cautions Against Illegal Crypto ATMs

									by Fintech News Malaysia
July 9, 2020
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The Securities Commission Malaysia (SC) cautioned the public against the usage of Crypto ATMs. Crypto ATM are machines that allows individuals to buy and/or sell digital assets like Bitcoin and Ethereum, and XRP. These machines are installed in various locations in Malaysia, facilitating the exchange of different types of digital assets with fiat currency and vice versa.
The regulator reiterates that Crypto ATM operators are considered to be operating a Digital Asset Exchange (DAX) which requires registration with the SC. In this regard, the SC said that it has not authorised any entity to operate Crypto ATMs.
The SC also warned all unauthorized Crypto ATM operators in Malaysia to immediately cease their activities. Operating a DAX without authorization from the SC is an offense under Malaysian securities laws. Anyone convicted may be liable to a fine not exceeding RM10 million or imprisonment up to ten years or both.

Members of the public may verify if a digital asset operator is registered with the SC. Additionally, investors are encouraged to alert the SC if they come across any suspicious activities or websites, and if they receive any unsolicited phone calls or e-mails offering investment advice and opportunities, especially those that offer high returns with seemingly little or no risks.

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Lending

GHL Gets Nod to Start Lending Operations in Philippines

									by Fintech News Malaysia
July 14, 2020
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GHL Group Berhad announced today that its Philippines arm has received approval for the Philippines Securities and Exchange Commission to operated a lending business via its new unit, GHL Phlippines Financing Services Inc.
GHL who is traditionally known for its payments business has been seen diversifying its business of late. Towards the end of 2019, GHL similarly received the nod to operate its lending business in Malaysia and Thailand. Subsequent to that, they’ve entered into a partnership with Axiata’s micro-lending platform Aspirasi with the aim of “narrowing the financial inclusion gap” in Malaysia.
In early 2019, they’ve also partnered with an Australian fintech startup that offers “Pay Later” solutions to enable their merchants to offer interest-free monthly payments to their customer base.

Danny Leong
Commenting on their newly launched operations, Danny Leong, Group CEO, GHL said,
“We are excited with our Philippine operations getting the go-ahead to start lending services to our merchant base. This is part of the group’s strategy to further value add to our merchants in addition to payment services.
COVID-19 has brought many challenges to many SME merchants and we hope to be able support them through the difficulties and to assist them to catch the recovery wave.”

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Blockchain/Bitcoin

Securities Commission Malaysia Adds Binance to Investor Alert List of Unauthorised Entities

									by Fintech News Malaysia
July 17, 2020
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Securities Commission Malaysia (SC) today added the popular crypto exchange platform Binance to in its investor alert list which warns the general public about entities that are not authorised in carrying out regulated activities in Malaysia.
They were added to the list for “operating a recognized market without authorisation from the SC.” To operate a crypto exchange in Malaysia an entity is required to be registered as a Digital Asset Exchange (DAX). Currently, there are only 3 crypto exchanges that received the nod to operate in Malaysia, they are namely — Luno, SINEGY and Tokenize.
This comes after a warning from the regulator that crypto ATMs are also required to be a registered DAX platform to operate in Malaysia. Securities Commission Malaysia previously reminded the public that operating a DAX without authorization from the SC is an offense under Malaysian securities laws. Anyone convicted may be liable to a fine not exceeding RM10 million or imprisonment up to ten years or both.

Members of the public may verify if a digital asset operator is registered with the SC here
Image Credit: Screengrab from Youtube

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Digital Transformation

UOB Finlab’s Jom Transform Goes Digital This Year

									by Fintech News Malaysia
July 17, 2020
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UOB Malaysia’s innovation accelerator The FinLab has launched a regional digital platform to where local SMEs and start-ups can start their digital transformation journey.
The FinLab Online digital platform will incorporate the Jom Transform Programme, a business transformation programme in Malaysia to help local SMEs digitalise their operations for productivity and revenue growth. The programme which will commence in August 2020 is supported by The Malaysia Digital Economy Corporation (MDEC) as a strategic partner to provide advisory in digitalisation.
SMEs in the programme will go through a one-month curriculum on the digital platform where they will have access to industry mentors from UOB and its regional ecosystem partners through online workshops, video tutorials and webinars.

They will also be able to conduct a self-assessment of their technology needs based on The FinLab’s proprietary business analysis tools. They will then be guided on digitalisation strategies and solutions to address immediate business challenges and be matched with relevant technology solution providers.
In addition, The FinLab Online’s community network will enable SMEs and start ups to address issues specific to their business and operational needs such as e-commerce, marketing, human resources, administrative operations and customer relationship management.
Mr Wong Kim Choong, Chief Executive Officer, UOB Malaysia said,
“Given that the current operating environment has been impacted greatly by the COVID-19 pandemic, it is now even more critical for businesses to use technology effectively to upskill their employees and to manage their operations more efficiently. This will help ensure that they remain viable and relevant as consumption increasingly shifts online and against the backdrop of social distancing standard operating procedures and guidelines set up by the government. With the Jom Transform Programme conducted digitally on The FinLab Online, SME business owners can learn how to tap technology for their digital transformation and do so from the safety of their own homes.”
Pauline Sim
Ms Pauline Sim, Co-Head, The FinLab, said,
“Digital adoption is not a one-size-fits-all approach, and there is a clear demand for tailored, actionable support for SMEs and start-ups to take charge of their business growth journey. The FinLab Online leverages UOB’s extensive network and close to 85 years of experience operating in ASEAN to provide The FinLab Online’s community with the necessary expertise, knowledge and connections. We will also share insights from UOB’s own experience in growing a successful regional business with our community members to help them navigate their own expansion in ASEAN in an increasingly digital world.”
SMEs who completed the programme last year had expected to raise their productivity by up to 30% through digitalisation. This year, the programme includes support from MDEC through its Smart Automation Grant, which will be offered to participating businesses that successfully pitch their digitalisation plans and demonstrate tangible outcomes.
Since its launch in 2015, The FinLab has received interest from more than 2,000 businesses in Malaysia, Singapore and Thailand on their digitalisation journey.

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Lending

Fundaztic Launches Malaysia’s First Peer-to-Peer Financing Secondary Market

									by Fintech News Malaysia
July 21, 2020
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Fundaztic a P2P financing platform operator, has officially rolled out their secondary market. This offers over 20,000 members of Fundaztic the opportunity to trade their existing notes with one another, this allows the, adjust their portfolio strategy and increase their flexibility in the management of their cash flow.
Against the backdrop of the current economic situation, the introduction of the secondary market is especially relevant for investors who may need to sell their notes to meet their cash flow needs and to investors who may want to build broader, more resilient portfolios.
Kristine Ng
“We have been preparing for the secondary market for quite some time now. We were extremely excited when the guidelines for the Secondary Market was announced mid-April and since then, have been working relentlessly to ensure that the system is not only compliant with the guidelines but, highly secured and robust,”
says Kristine Ng, CEO of Fundaztic.

Every member on Fundaztic is eligible to participate in the secondary market. The trading value of the notes on the secondary market will be based on the remaining principal of the notes selected for trading (“seling”). The remaining principal of the Notes selected for “selling” or “transfer of rights” must be at least RM5,000. Investors may select to “sell” either a singular note (e.g. RM5000) or multiple notes (e.g. 50 notes of RM100 each) to be bundled as a portfolio at a premium or discount rate which they decide themselves.
“The reason why such a balance is set is to ensure that the transaction is a meaningful one for both the existing investor and new investor of the Notes based on the premise that the Secondary Market is to provide early exits for emergency funds and for new investors to be able to build a resilient portfolio in a quicker manner which has a direct bearing on risk mitigations as well,”
Kristine further elaborates.
The average tenure of investment notes in Fundaztic is 30 months. This provides the opportunity for investors to sell their notes earlier than the end of the investment tenure, which will result in an increase in liquidity on the platform. With that, investors will potentially be able to earn higher gross yields and better manage their portfolio.
Fundaztic is one of the six P2P financial platforms that was registered as a Recognised Market Operator for P2P financing by the Securities Commission of Malaysia (SC) back in 2017.
The platform went live on 7th July 2017 and have just crossed its 3rd anniversary with disbursements exceeding RM82 million to more than 1000 unique MSMEs providing investors with an average return of investments of about 23% after netting of defaults of less than 4% per annum.

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Blockchain/Bitcoin

SC to Seek Feedback on Regulatory Framework for Digital Asset Wallet Providers

									by Fintech News Malaysia
July 23, 2020
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The Securities Commission Malaysia (SC) is seeking industry feedback on the regulatory framework for digital asset wallet providers, which will complement the existing frameworks for Digital Asset Exchange (DAX) and Initial Exchange Offering(IEO).
Digital asset wallet providers are entities that provide custody or storage services on behalf of digital asset owners. Such providers play an important role within the ecosystem in safeguarding the digital assets of the client.
In this regard, SC is reaching out to existing digital asset wallet providers or any interested parties to reach out to the regulator for an engagement on their current business operations or to provide feedback on the framework. Once finalised, the regulatory framework for digital asset wallet providers will be included as part of the Guidelines on Digital Assets.

The SC said that, existing providers and interested persons should contact the SC to arrange for an engagement session not later than 14 August 2020.

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WealthTech

PNB Teams Up With Raiz To Launch an App That Helps You Invest Your Spare Change

									by Fintech News Malaysia
July 24, 2020
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Permodalan Nasional Berhad (PNB) announced on Thursday the launch its micro-investing app Raiz.
Raiz is a micro investing mobile app which utilises users’ virtual spare change from rounding up everyday purchases to proactively invest into ASNB’s variable price funds based on personalised investment portfolios. It is a unique way for users to make the most of every cent being spent, the residual of which can be saved and invested. Apart from this round-up investment, users can choose to invest using lump-sum investments as well as recurring investments.
It developed as a joint venture between PNB’s susbsidiary Jewel Digital Ventures and Raiz Invest Australia. In a statement, they said that Raiz aims to provide unit holders with a “convenient platform to proactively save and invest in Amanah Saham Nasional Berhad (ASNB) unit trust funds” and is initially only available for Maybank account holders.

Unit holders can start their investment journey by downloading the Raiz mobile app and linking it to their Maybank debit cards. They can then authorise Raiz to round up everyday purchases made using their cards and invest the spare change.
PNB Group Chairman, Tan Sri Dr. Zeti Aziz shared that Raiz in Malaysia began when one of PNB’s young talents, Aidi Izham Mohd Khalil, who is now the Chief Executive of Raiz Malaysia Sdn Bhd, pitched his idea at the annual PNB Innovation Challenge. His pitch was on the development of a mobile application that would automatically invest spare change from daily purchases.
Tan Sri Dr. Zeti Aziz
Tan Sri Dr. Zeti Aziz added,
“With the launch of the Raiz app and with more than 90% of Malaysians using the smartphone, it means that almost anyone can start investing in this way. As the saying goes, ‘Sikit-sikit lama-lama jadi bukit’. In today’s technological age, we no longer need to save in coin boxes, instead we can do it with Raiz.”

Datuk Abdul Farid Alias
Group President and Chief Executive Officer of Maybank, Datuk Abdul Farid Alias, added,

“This partnership provides a platform for Maybank customers to be involved in micro investing in ASNB unit trust funds in a simple and hassle-free manner. We hope that this will appeal to the younger segment and will also encourage others to save and invest.”

Featured Image: screengrab from PNB Official Facebook page

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Crowdfunding

ECF Platform Ata Plus Sees 15% Stake Acquisition from NASDAQ Listed Firm

									by Fintech News Malaysia
July 29, 2020
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Ata Plus, an equity crowdfunding platform approved by the Securities Commission Malaysia announced that GreenPro Capital Corp, a NASDAQ-listed firm has acquired 15% stake in the equity crowdfunding platform operator.
According to its NASDAQ listing, Green Pro is incorporated in 2013 in Nevada, USA, and its subsidiaries are involved in businesses including but not limited to: financial consultation services, corporate advisory services, offshore formation advisory services, and loan and credit services.
Following this announcement GreenPro said that it will be relocating its headquarters to Kuala Lumpur. Ata Plus said that the acquisition will help it to “fast track its focus” on becoming a “regional fundraising platform” and eventually a “global fundraising platform”

GreenPro is issuing 457,312 restricted shares for its 15% equity stake in Ata Plus.
Elain Lockma
“The investment by GreenPro is a decisive move not only towards our commitment for financial inclusion, democratisation of wealth and equality of opportunities, but also to fast track our ambition to be a global player. GreenPro’s suite of technological and financial assets will synergise with Ata Plus’ speedy, cost-efficient and easy-to-use fintech solutions, ultimately strengthening our platform’s capabilities to provide the best crowdfunding experience for both our issuers and investors,”
said Elain Lockman, Ata Plus’ Co-Founder and Director.
CK Lee

“Ata Plus’ proven platform for SME fundraising greatly complements GreenPro’s considerable regional financial and technological assets. Together, GreenPro and Ata Plus can generate significant product, customer and cost synergies. We intend to use the Ata Plus platform to provide private high-growth emerging companies – firstly, with frictionless access to a wider pool of global investors, by offering an array of new types of securities made possible with our newly acquired technology and IP; and secondly – with a proven infrastructure for public listing,”
said CK Lee, GreenPro Chief Executive Officer.

Featured image: Signing Ceremony [L to R] Julius Kew, CK Lee, Elain Lockman, Aimi Aizal, Kyri Andreou

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Lending

U Mobile to Offer Funding Societies’ P2P Financing Solution to SMEs Via GoBiz

									by Fintech News Malaysia
July 29, 2020
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Telco operator U Mobile announced a partnership with Funding Societies to offer business financing solutions for Malaysian micro, small and medium enterprises (SMEs), as well as small office/home office (SOHO) customers via its digital payment acceptance solution GoBiz.
Customers of U Mobile and Gobiz will be able to access Funding Societies’ P2P financing platform which offers flexibility in loans ranging from RM3,000 to RM1 million.
They said the entire process can be done digitally through GoBiz’s website and existing customers of U Mobile or GoBiz will not need to provide collateral or retention sum.

They claim that borrowers will be notified of the application status within two working days upon submission of documents
Jasmine Lee, Chief Marketing Officer of U Mobile, said
“Through U Mobile’s collaboration with Funding Societies, we will be making business financing accessible to micro, SMEs and SOHO Malaysian business owners. This is particularly beneficial for businesses finding it hard to secure a conventional bank loan and especially relevant in these challenging times due to the global pandemic. The new service is also extremely seamless and convenient as the entire process will be conducted online via our GoBiz website and it takes less than a minute. We hope this service will also help SMEs and SOHO Malaysian business owners to be less bogged down by admin and have more time and resources to grow their business.”
Wong Kah Meng, Co-founder and Chief Executive Officer of Funding Societies Malaysia commented,
Wong Kah Meng
“Whilst SMEs play an instrumental role in contributing to our nation’s economy, a large number of SMEs are still under-served by traditional financial institutions. Our mission is therefore to help these SMEs to grow through business financing. Our partnership with U Mobile will enable their customers to gain greater access to a variety of financing options via the GoBiz platform. This is made possible by leveraging on our proprietary technology infrastructure to seamlessly connect with U Mobile, thereby digitising and simplifying the application process by SMEs, leading to greater access to financing. Through this partnership, we will be able to provide greater opportunities for under-served businesses to obtain our tailor-made financing products to support their business financing needs.”

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