Touch ‘n Go Group has announced that TNG Digital Sdn Bhd, which manages Touch ‘n Go eWallet, has been granted conditional approval by the Securities Commission of Malaysia (SC) to operate as a Recognised Market Operator. This enables Touch ‘n Go to offer money market unit trust funds through its eWallet platform without having to be directed to another 3rd party application.
SC had announced back in May 2020 that it will allow online distribution of capital market products through online platforms such as eWallet and ePayment service providers. The guidelines on Recognised Markets were amended to enable eWallet providers to partner with Capital Markets Services Licence holders to distribute capital market products to investors.
According to Touch ‘n Go Group’s Group CEO Effendy Shahul Hamid, this is an industry’s first and they have been working tirelessly with regulators and partners to get it to this stage. With the RMO status, they will be introducing a string of new innovative digital offering which include a financially inclusive investment product within the first quarter of 2021. Touch ‘n Go will allow its users to access basic investment services for as low as RM10.
Effendy said “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.”
Touch ‘n Go is collaborating with Principal Asset Management, a joint venture between Principal Financial Group and CIMB Group Holdings, for its upcoming investment products. According to the press statement, the partnership combines platform development, technology and data expertise of Touch ‘n Go eWallet and Principal’s expertise in investment strategy and fund management. More details of the eFinancial solution will be announced soon.
It’s also worth mentioning that U Mobile’s GoPayz eWallet also offers unit trust products through its platform via FSMOne. However, the experience isn’t really integrated as the app loads a webpage which requires you to login separately.