by TMR / pic source: mcis.my
MCIS Insurance Berhad (MCIS Life) acquired a 4.99% stake in Merchantrade Asia Sdn Bhd, the leading e-money player and the country’s largest Money Services Business operator, through the acquisition of new ordinary shares of an undisclosed amount.
MCIS Life CEO and Managing Director Prasheem Seebran (picture) said the collaboration allows MCIS to break away from the traditional bancassurance model which often incurs exorbitant fees and simultaneously strengthens position as the sole life insurance partner within the Merchantrade ecosystem.
Prasheem added that MCIS Life’s strategy is focused on enhancing customer experience through innovative product solutions and digitised service offerings. The synergies between the two companies will be further supported by Merchantrade’s technology solutions as well as its foray into the payment space, he said in a statement today.
“We aim to achieve our targets by rolling out more products to suit Merchantrade’s target market and this strategic alliance is expected to contribute over 25% of MCIS Life’s non- agency new business contributions by 2025,” he added.
Ramasamy Veeran, Founder and Managing Director of Merchantrade said the partnership will accelerate the rollout of innovative financial services and strengthen comprehensive ecosystem of interconnected technologies, such as global remittance, payments, e-wallet solution, foreign currency exchange, micro-insurance, tele-health, micro- loans, telco services and more.
“All with aspirations of giving customers a dependable digital first experience and elevating financial access across all walks of life,” he added.
The acquisition complements the existing ties between both companies since 2019 and MCIS Life sees tremendous value in Merchantrade mobile e-wallet application and nationwide on ground touch points allowing access to the underserved communities.
“Currently MCIS Life is the exclusive life insurance partner of Merchantrade. Considering the potential of the company and various opportunities to collaborate and create value for existing and prospective customers, this investment is expected to bring significant value to us,” Prasheem explained.
In line with its brand promise – “People Helping People” – MCIS Life also aims to roll out more inclusive, simple and affordable solutions to Merchantrade’s underserved customer base such as Malaysia’s B40 segment and migrant workers.
It will also expand its offerings on employee benefits and bespoke products for corporate clients, high end products for the remittance market and online products for the technology savvy.