MCIS Insurance (MCIS Life) has taken up a 4.99% stake in Merchantrade Asia, a Malaysian money services business provider, for an undisclosed sum.
The acquisition is set to accelerate MCIS Life’s digital transformation journey and leverage on Merchantrade’s digital capabilities, access to extensive network of over 1,000 physical touchpoints throughout the country and their three million customers.
The synergies between the two companies will be further supported by Merchantrade’s technology solutions as well as its foray into the payment space.
MCIS Life aims to roll out more inclusive, simple and affordable solutions to Merchantrade’s underserved customer base such as Malaysia’s B40 segment and migrant workers.
It will also expand its offerings on employee benefits and bespoke products for corporate clients, high end products for the remittance market and online products for the technology savvy.
The two companies kicked-off a partnership in 2019 where MCIS Life provided a life insurance protection plan for Merchantrade’s customers which includes Malaysians as well as migrant workers.
In August 2021, they teamed up again to provide a product targeted at underserved communities for the Perlindungan Tenang Voucher (PTV) scheme.
In October last year, Kenanga Investment Bank had similarly acquired a 4.99% stake in Merchantrade following a collaboration to introduce its own e-wallet, Kenanga Money.
Prasheem Seebran, CEO and Managing Director at MCIS Life said,
“Forging this partnership with Merchantrade provides MCIS Life with significant upside potential. It allows us to break away from the traditional bancassurance model which often incurs exorbitant fees and simultaneously strengthens our position as the sole life insurance partner within the Merchantrade eco-system.
We aim to achieve our targets by rolling out more products to suit Merchantrade’s target market and this strategic alliance is expected to contribute over 25% of MCIS Life’s non-agency new business contributions by 2025.”
Ramasamy Veeran, Founder and Managing Director of Merchantrade said,
“Having an established brand like MCIS Life with us resonates with our goals of expanding our insurance offerings as it allows us to better develop next-generation products and services that continue to add positive value to customers and communities around us as we make the future convenient, easier and more secure for generations to come.”