AIA Malaysia reveals that it will be acquiring a minority stake in TNG Digital, which is the owner of Touch ‘n Go digital wallet. This deal will reportedly be a key part of a long-term strategic partnership.
The Edge reported that this transaction should make AIA the fourth listed shareholder of TNG Digital. The firm will be joining others with a stake in the firm, including CIMB Group Holdings, China’s Fintech giant Ant Group as well as New York’s investment company Bow Wave Capital Management.
The report from the news outlet cited a source that revealed that this deal may value TNG Digital at around $700 million or about RM 3 billion.
TNG Digital is reportedly looking to secure as much as $250 million in capital by the end of this year, which should exceed the amount acquired in Malaysia‘s largest Fintech funding round of $70 million (a record that was set by local digital wallet firm Boost).
This announcement notably marks the second time an insurance provider has obtained a stake in a digital wallet platform and has come after Great Eastern’s major investment in Axiata Digital.
AIA has also entered a long-term partnership to offer innovative and customized digital insurance solutions in order to address the protection requirements of more than 16 million Touch ‘n Go eWallet clients across the Southeast Asian country.
AIA will be providing Touch ‘n Go eWallet clients a seamless, convenient and frictionless experience, which should make it a lot simpler to purchase, claim and renew existing policies.
Touch ‘n Go eWallet’s clients can buy directly online and also via consultative selling offered by AIA’s distribution channels, which includes its 19,000+ agency force, who are experienced at advising on insurance and takaful coverage.
Ben Ng, CEO at AIA, stated:
“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, remarked:
“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.”