As part of a longer strategic relationship, AIA Malaysia will acquire a minority investment in TNG Digital, the owner of the Touch ‘n Go eWallet.
According to The Edge, AIA will become TNG Digital's fourth stakeholder, joining CIMB Group Holdings, China's Ant Group, and New York-based investment company Bow Wave Capital Management.
According to the article, this “values TNG Digital at roughly US$700 million or approximately RM3 billion.”
TNG Digital is believed to be looking to raise up to $250 million by the end of 2021, which would be more than the current biggest fintech financing round of US$ 70 million held by its e-wallet competition, Boost.
Following Great Eastern's investment in Axiata Digital, this is the second time an insurer has bought a share in an e-wallet player.
In addition, AIA announced a sustainable collaboration to deliver “innovative and personalized digital insurance solutions” to over 16 million Touch ‘n Go eWallet consumers countrywide.
AIA will provide Touch 'n Go eWallet clients with a "seamless, convenient, and seamless experience that makes it simple to buy, claim, and renew insurance."
Customers of the Touch 'n Go eWallet will be ready to buy both directly online and through consultative selling supplied by AIA's current distribution channels, including its 19,000-strong agency force capable of advising on more extensive insurance and takaful coverage.
Ben Ng, Chief Executive Officer of AIA said,
“Today's announcement advances our digital transformation journey and seeks to achieve new consumer groups through online channels. More significantly, it reaffirms our dedication to delivering new and creative goods to market in this increasingly connected world.”
Effendy Shahul Hamid
Effendy Shahul Hamid, Group Chief Executive Officer of Touch ‘n Go Group said:
“Insurance is a critical pillar for us as we seek to advance into financial services, and we look forward to working with AIA to disrupt the market and provide better and more relevant goods and services to Touch ‘n Go eWallet customers. We also anticipate AIA's strategic involvement as a stakeholder in the Touch 'n Go eWallet firm. Their participation corresponds with our ongoing expansion into new sectors of financial services.”