Touch ’n Go eWallet Approved To Offer Investment Products
This conditional approval for Touch ’n Go was granted by the Securities Commission.
To novice investors out there, there might be good news for you as the Touch n’ Go eWallet may soon be the first e-wallet in Malaysia to offer basic investment services. News of this comes after the Securities Commission of Malaysia granting conditional approval for the Touch ‘n Go Group’s subsidiary, TNG Digital Sdn Bhd, to operate as a Recognised Market Operator.
According to Touch ’n Go, this conditional approval granted by the Securities Commission will enable the company ‘to directly distribute capital market products, including money market unit trust funds, through the Touch ‘n Go eWallet platform, without having to be directed to third-party applications’. In other words then, it means that users will soon be able to perform small scale investments easily through the e-wallet app.
Partnering with Principle Asset Management, one of the country’s largest fund management company, this new endeavour by Touch n’ Go is in line with the Securities Commission’s prior announcement in May of last year in which it will facilitate the online distribution of capital market products such as unit trusts through e-wallet and other e-payment services.
In a statement by Effendy Shahul Hamid, the Chief Executive Officer of Touch ’n Go Group, this move by the company and its subsequent conditional approval for the launch of ‘a string of innovative digital offerings’ to its users is aimed to disrupt the status quo in the market. As for details of these offerings, a ‘financially inclusive investment product’ is set to debut in the first quarter of the year, with basic investment services starting from as low as RM10.
More information regarding this new Touch n’ Go e-financial service is to come in due course.
PRESS RELEASE: Touch ‘n Go (“TNG”) Group today announced that its subsidiary, TNG Digital Sdn Bhd (“TNGD”), had been granted conditional approval to operate as a Recognised Market Operator (“RMO”) by the Securities Commission of Malaysia (“SC”).
The conditional approval by the SC will enable the company to directly distribute capital market products, including money market unit trust funds, through the Touch ‘n Go eWallet platform, without having to be directed to third-party applications.
“This truly is a landmark development and an industry first. Our teams have been working tirelessly together with regulators and partners to get to this stage. The RMO status will allow us to bring a string of innovative digital offerings to our users. Aimed at disrupting the status quo, we will be launching a financially inclusive investment product in the first quarter of the year, allowing our users to access basic investment services for as low as RM10,” said Effendy Shahul Hamid, Group Chief Executive Officer, TNG Group.
“We feel that this offering will add significant value to our large payments and transportation user base and continue our evolution into financial services. We aim to make this an extremely seamless and frictionless offer to Touch ‘n Go eWallet users. With the approvals behind us, we will now focus on ensuring the user-experience is best-in-class as we move towards a launch,” added Effendy.
This innovative proposition is made possible through TNG’s collaboration with Principal Asset Management (“Principal”), one of Malaysia’s largest fund management company. This win-win partnership combines platform development, technology and data expertise of Touch ‘n Go eWallet and Principal’s expertise in investment strategy and fund management. Using Touch ‘n Go eWallet as a delivery platform also supports the nations digital and cashless agenda; as well as support financial inclusion.
More details about the e-financial solution offering will be announced soon.