AIA Malaysia announced that it will be taking a minor stake in TNG Digital, the owner of Touch ‘n Go eWallet, as part of a long-term strategic partnership.
The Edge reported that this move will make AIA the fourth shareholder of TNG Digital in addition to CIMB Group Holdings, China’s Ant Group and New York-based investment firm Bow Wave Capital Management.
The report quoted a source saying that this “values TNG Digital at about US$700 million or approximately RM3 billion”.
TNG Digital was said to be seeking to raise up to US$150 million by end of 2021 which will surpass that of the current largest fintech funding round of US$ 70 million, a record that is held by its e-wallet competitor, Boost.
This marks the second time an insurer has taken a stake in an e-wallet player following Great Eastern’s investment in Axiata Digital.
Additionally, AIA formed a long-term partnership to provide “innovative and personalised digital insurance solutions” to meet the protection needs of over 16 million Touch ‘n Go eWallet customers nationwide.
AIA will offer Touch ‘n Go eWallet customers a “seamless, convenient and frictionless experience, making it easy to buy, claim and renew policies”.
Touch ‘n Go eWallet’s customers will be able to purchase both directly online as well as through consultative selling provided by AIA’s existing distribution channels, including its 19,000-strong agency force, who are capable of advising on more comprehensive insurance and takaful coverage.
Ben Ng, Chief Executive Officer of AIA said,
“Today’s announcement marks the continuation of our digital transformation journey and ambition to reach new customer segments using online platforms. More importantly, it reinforces our commitment to bringing new and innovative products to market in this increasingly digital world.”
Effendy Shahul Hamid, Group Chief Executive Officer of Touch ‘n Go Group said:
“Insurance is a key pillar for us as we continue to expand into financial services, and we look forward to collaborating with AIA to disrupt the segment and bring better and more relevant products and services to Touch ‘n Go eWallet users. We also look forward to AIA’s strategic participation as a shareholder of the Touch ‘n Go eWallet company. Their involvement coincides with our continued evolution into deeper areas of financial services.”
