The Malaysian Takaful Association (MTA) signed a Memorandum of Understanding (MOU) with the Fintech Association of Malaysia (FAOM) to spur the adoption of fintech among takaful players in Malaysia.
MTA said that this strategic initiative supports the 3 third strategic thrust of Bank Negara Malaysia’s Financial Sector Blueprint – to advance the digitalisation of the financial sector.
The 24-months cooperation has identified various areas of mutual cooperation to accelerate and encourage fintech in the takaful space.
FAOM will set out to connect subject matter experts with takaful industry players who can offer technical advice, share the latest trends in fintech industry and provide mentorship support to MTA.
MTA will be exploring platforms to connect and increase participation of FAOM members and fintech startups at its events, programmes and initiatives.
Both parties will support and co-organise programmes related to digital technology and digitalisation initiatives, takaful transformation and development as well as general awareness building
They will also support the cross promotional and marketing of each other’s programmes and initiatives.
Mohd Radzuan Mohamed, CEO of MTA said,
“The cooperation between the two associations will pave the way for Malaysian takaful operators to explore the potentials and opportunities of fintech as we individually and collectively aim to achieve greater productivity, efficiency and effectiveness in our business operations, stakeholder communications (including agency networks) as well as customer interactions.
More importantly, the cooperation allows us to explore avenues towards the implementation of initiatives identified under the Value Based Intermediation for Takaful (VBIT) Roadmap (launched in July 2022) and relevant initiatives under the national FSB 2022-2026.”
Wilson Beh, President of FAOM said that he expects the cooperation to bring value to the takaful players and the industry’s further development.
“It is exciting to think about the potential impact fintech can have in the takaful space and for Malaysian consumers.
With the introduction of takaful-tech, we can imagine revolutionising and simplifying the access to takaful protection plans, claims handling and management and agency transactions on your mobile phones and devices.”
