In recent months, we’ve seen a sharp uptake in digital banking and financial services. This is partially due to the demand driven by the Covid-19 pandemic as SOPs advise towards minimal physical contact, encouraging digital payments.

With e-payments, tap-to-pay, e-wallets, online shopping and food deliveries being ingrained in our daily lives, it’s easy to assume that Malaysia as a whole, is fully digitised and operating in the future of finance. However, the reality of our digital economy is a little different. Bank Negara Malaysia (BNM) statistics reveal that many Malaysians do not even have basic access to financial activities and services.

Numbers from BNM suggest that approximately one-third of Malaysians, including half of low-income earners (B40) does not have any banking or financial accounts. In terms of demographics, 55% of those unbanked are women, while 46% of youth aged 15 - 24 does not have a formal financial account. Looking at household units, 53% of Malaysian households do not own any form of financial assets.

The B40 and some of M40 groups are greatly impacted by the lack of financial accounts as this affects their ability to borrow, invest or even have access to credit, foreign exchanges and tax reliefs, let alone save. With the limitations presented due to the lack of a financial paper trail, it creates a never-ending cycle of poverty.

So how does an increasingly digitised world affect the unbanked people of Malaysia?

Telcos x Fintech: Made For Financial Inclusion

Whilst a large percentage of Malaysians may be without financial records, almost everyone in Malaysia is mobile connected. According to a survey by MCMC, Malaysia has a mobile/ cellular penetration of 131.4% as of 2019, with over 40 million postpaid and prepaid users combined.

Therein lies the upper hand of telcos when it comes to fintech. The access to users is built-in to the cycle, enabling them to reach customers in a way that is far broader, and more intimately than possible for banks. Using the existing connections with customers, many telco companies are venturing into developing financial products and services for their customers.

From insurance, to investments, and even as support for micro/SME businesses, a lot of telco companies have moved away from just being communication providers, to life assistants.

Finance through your mobile

Combining the ready-made access of mobile connections with affordability of products, U Mobile’s foray into the fintech world saw the launch of GoPayz and GoBiz. The duo is part of U Mobile’s fintech ecosystem, with GoPayz focusing on accessibility of digital financial services and products for the everyday Malaysian, and GoBiz as the partner for your business needs.

GoPayz is a universal e-wallet that strives beyond the basics of cashless payments. Embedded in a single app is a wealth of products and services, such as insurance, investments, currency exchange, bill payments, Zakat payments, and more.The idea behind having so many services in one place is not just about affordability (though they are affordable, and we will get into that later), it is also about building convenience. With the ability to protect (through insurance), build securities (through investments) and aid in your day-to-day life (bill payments, top-ups, etc.), it negates the need to travel to a multitude of places to get things done.

Customers will also be able to use GoPayz anywhere in the world too - be it through a virtual or physical bank card. Their partnership with payment processors like, MasterCard, UnionPay and Visa means that you could move money with ease and guarantee that it complies with international regulations, credit card security standards, and their respective data privacy and security laws - ensuring that the customer data they collect and use are entirely confidential.

“The beauty of our ecosystem is that we have both the acquiring and issuing license. A lot of e wallet players only have an issuing license, and a lot of mobile carriers on a proprietary wallet. U Mobile is the only e-wallet that has all three card schemes which are Visa, Master and UnionPay on our e-wallet. It is a universal wallet - you can use it overseas, buy eCommerce items, and you can apply for a [physical] card that … can be used like a debit card.” - U Mobile CMO, Jasmine Lee.”

Back to the subject of affordability, one of the biggest advantages has to be GoPayz’s insurance offerings. It takes a complicated, and daunting; albeit necessary product, and simplifies it to just a few taps on your phone. As a fully digital life microinsurance product, GoLife Plus,(which is borne from a partnership with Sun Life Malaysia) is all about affordability that doesn’t compromise quality. The low premium which starts from just RM13 per month (with coverage of up to RM76,000) is designed to be far more accessible for lower income groups as they believe that every Malaysian should have equal opportunity for protection. Together with the general insurance solutions from Chubb Insurance Malaysia such as - - personal accident, motor and travel insurance packages which start from just RM6 per month, the evolution of telcos into fintech is already making huge strides in closing the gaps for the unbanked.

GoBiz, a Digital Payment Acceptance solution, on the other hand, as implied by its branding, is specifically tailored to the needs of businesses - be it big or small. Like its consumer-focused twin, it’s a one-size-fits-all ecosystem, as budding entrepreneurs are able to enter U Mobile’s fintech ecosystem entirely digitally, without having to physically walk into a building to start your business. This, according to U Mobile Chief Marketing Officer, Jasmine Lee, coupled with the fact that U Mobile is prepared to give microloans to SMEs via a partnership with P2P lending platform Funding Societies, will benefit many of those affected by COVID-19 and the Movement Control Order.

“Working with Funding Societies, we also give micro loans to SMEs - which I think is very crucial in these times of COVID-19. They just need a little bit of cash to start an online store or an IG (Instagram) store to be able to start a business. It’s a very easy application process - all digital and no collateral needed.”

Furthermore, with GoBiz’s partnership with Mastercard, UnionPay and Visa, businesses are able to accept digital payments with customized solutions such as mobile point-of-sale (mPOS) or mobile virtual terminals (MVT), from customers all over the world - making it easier for local businesses to access and service different markets. They’ve not forgotten about logistics either, as U Mobile has plans to work with logistics companies, to complete the entire payment and purchase cycle - making the entire ecosystem completely holistic in starting and maintaining a business.

GoBiz users also have the option to generate additional revenue for their business by offering their customers services such as telco prepaid top-ups, bill payments and even game credits.

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For more information on GoPayz and GoBiz, visit gopayz.com.my and gobiz.com.my to find out more.

Listen to the podcast with Morning Run presenter Wong Shou Ning, as she discusses its ins and outs of GoPayz and GoBiz with U Mobile Chief Marketing Officer, Jasmine Lee.