However, he did point out that online finance is ripe for disruption. “Much of these online finance offerings or platforms are predominantly single-use cases which only exist to sell investment products,” he said. Online finance is “ripe for disruption” He explained that online finance needs to transform from being largely “transactional and utilitarian”, to actual end-to-end delivery. “That space has been there for the taking for some time,” emphasised Effendy, “GO+ is the first step.”
At the time of publishing, the listed Daily Return Rate is 1.43% per annum, which may not be particularly enticing to seasoned investors, but as Effendy Shahul Hamid, Group CEO, Touch ‘n Go (TNG) Group pointed out, “It does pay a lot higher than your current account!”. This launch comes only a few months after becoming the first e-wallet to obtain conditional approval in January to operate as a recognised market operator (RMO) by the Securities Commission Malaysia (SC), which allows the company to “directly distribute capital market products, including money market unit trust funds”.
The company recently launched a new product called GO+, which allows the balance in the TNG eWallet to earn returns. The underlying fund for GO+ is Principal e-Cash – a money market fund managed by Principal Asset Management Bhd, a joint venture between Principal Financial Group and CIMB Group Holdings Bhd.
Leading the market, and eventually consolidation Effendy revealed that there are currently 15 million registered users on the TnG eWallet. The goal is to acquire a million GO+ accounts in 2021.
Nevertheless, there are limits to their ambitions. “We will not be evolving the TnG wallet into a bank,” was the comment made, although Effendy did not rule out future partnerships in that direction. “It is premised on making sure that we are able to find the right consortium, and if we do, we will certainly participate in one way, shape or form,” he said. Having said that, three specific areas they have identified for future products include asset management and investments, insurance and personal lending. They are also keen to roll out sharia products in the future. “Basic financial services — in this case, simple low risk investments — are still not accessible to large portions of society,” said Effendy.
The News Highlights
- Touch ‘n Go steps for online finance with GO +, with more to come
- Check the latest News news updates and information about business, finance and more.
For Latest News Follow us on Google News
- Show all
- Trending News
- Popular By week