Named by the UK’s Business Financing as the most-searched for digital bank in Malaysia, BigPay’s performance during the year proves not only that people are researching the fintech, but that they also recognise its value proposition as a neobank and are buying into the platform. By end 2021, the app had been downloaded by more than two million users, out of whom one million were carded and transacting. The latter marks an incredible doubling since the end of 2020, despite the pandemic creating an uncertain environment for spending. BigPay’s success can be distilled to the fact that it seeks to do in finance what AirAsia has done for flying – provide services that people really want utilising a channel that is accessible, convenient and that carries lower costs, enabling it to pass these savings to users. BigPay’s mission is to democratise financial services by bringing low-cost, fair and transparent products to Asean. This is enabled by access to the rich repository of data that has been accumulated by Capital A, its major investor. Already, it has developed effective algorithms for distribution and to assess the eligibility for credit and other financial services of customers who would normally be bypassed by banks. Customers, meanwhile, benefit not only from financial products that they genuinely need but also from simplified and hyper-personalised delivery. A key concern with fintechs is the issue of trust. And this is an area that BigPay has invested considerably in. While ensuring transparency of its products and fees, BigPay has also been ramping up its security features and even started providing content on financial literacy via its blog and online news publications to address any concerns customers may have. Product development, meanwhile, is shaped by market needs in order to stay relevant. In the face of the continued pandemic, for example, BigPay has introduced micro-insurance, Bill Pay and virtual cards. Its all-in-one Lifestyle insurance – with premiums starting from as low as RM30 a year – covers key areas like accidental death, hospitalisation and permanent disability, as well as areas that are relevant to today’s youth such as online purchase protection, smart device protection and loss of sports equipment. Bill Pay and virtual cards are quite standard except many students, young working adults, freelancers and SMEs do not have access to these facilities, which are not just convenient but increasingly necessary in an environment of restricted movement. That these products are filling real gaps in the market is reflected in their take-up rates, which get stronger by the day. Adding to user convenience, du r i ng t he y ea r B i gPay introduced a cash top-up feature, enabling users to topup their accounts at any of the 2 ,400 7-Eleven out lets in Malays ia. In response to demand, it also increased its wallet size from RM10,000 to RM20,000. Initially offered only to a limited group of people, this feature will be rolled out for all BigPay users in the first half of 2022. The investment from Capital A has added benefits for marketing and distribution too. Via its 51 million strong database, BigPay is able to offer attractive travel deals to potential customers in collaboration with the airline business. Guests spending outside of their home country, whilst travelling or purchasing online, also benefit from one of the best foreign exchange rates in the region. In addition, BigPay has cultivated strong acquisition channels with high long-term value segments while also showing high retention rates. An example of this is that BigPay was chosen to be the sole pay-out partner of Malaysia Digital Economy Corporation (MDEC)’s eRezeki programme through which income generating opportunities are provided to low-income earners via online crowdsourcing platforms. During the year, BigPay also piloted a pay-out solution with Capital A businesses like Teleport and airasia ride. This was subsequently extended to gig economy workers more generally, leading to 34% growth in the number of freelancers and SMEs on the platform. BigPay is excited about its prospects in 2022. In August 2021, it had secured Series A financing of up to USD100 million led by SK Group. This enables the team to accelerate its product development while expanding into more markets such as Thailand, Indonesia and the Philippines. Having built a successful tech-first model in Malaysia and Singapore, it is ready to scale it across Asean to reach millions more people. Digital B i g P a y As Covid-19 accelerates the digital transformation of banking and financial services, more and more people in Asean are becoming aware of digital banking and a significant number are also keen to adopt such services into their daily lives. In Malaysia, one fintech in particular is gaining great traction: BigPay. Business Review (cont’d.) 0 9 0 C A P I T A L A B E R H A D
RkJQdWJsaXNoZXIy ODU0MjU5