MALAYSIAN fintech startup and digital cash management platform Versa Asia Sdn Bhd announced that it has achieved over RM100 mil in transactions despite its launch in early 2022.
Versa has also witnessed the creation of over 30,000 accounts on its platform in less than a year after the official launch with approval and license from the Securities Commission Malaysia.
Crisis after crisis: A challenging financial backdrop
According to data that the Finance Ministry has gathered, over half of Employees’ Provident Fund (EPF) members have less than RM10,000 in savings, with 3.6 million members having less than RM1,000.
This is due to most Malaysians utilising their EPF savings for temporary financial assistance in the midst of the COVID-19 pandemic.
It is predicted that members will need to work an additional four to six years to replenish their savings that were depleted during the pandemic.
As a result, many Malaysians are now facing the prospect of extending their retirement age owing to a lack of savings for a comfortable life after retirement.
Economists emphasised the need for individuals to reevaluate their financial spending and saving habits.
Meanwhile, Versa CEO Teoh Wei Xiang commented that more than the effect of the pandemic, many people were also affected by the recent floods that ravaged many parts of the country, causing extensive damage and economic losses.
“But what we can take away from these crises is that merely having savings may not be enough, and that the key to handling your finances lies in finding the right place to save,” he said.
“In early 2021, we launched Versa to introduce Malaysians to a new means of saving and growing idle cash, so that they would be able to be more prepared in times of need.”
The future of safe and secure investment
Furthermore, digital cash management platforms, which invest in secure mutual funds with high liquidity, have been a popular investment option in recent years.
Versa, however, recognised the issue of financial uncertainty that individuals faced, emphasising the need for choices that may deliver faster returns without committing to onerous lock-in periods.
The platform also makes investment more accessible to Malaysians by providing easy access via mobile app for as little as RM1.
Launched in collaboration with Affin Hwang Asset Management, Versa is a money market fund investment, which is a type of mutual fund designed to provide high liquidity with a low level of risk.
Interestingly, Versa is able to improve their user’s savings by leveraging compound interest, boasting better returns with interest rates of up to 2.46% p.a. (projected return for 2022) on par with fixed deposits. Versa users may earn interest on top of the interest they earned previously.
“With easy access through a mobile app, Versa has achieved a significant milestone with the help of Malaysians who are turning to digital cash management platforms like ours, as opposed to conventional Fixed Deposits due to the latter’s high minimum deposits, long lock-ins, and lower interest rates,” Teoh remarked.
“As a Versa user, all you need to do is deposit your cash into the application and let Affin Hwang Asset Management handle the rest while you just sit back and watch your savings grow.”– Jan 28, 2022
