MTA-FAOM MoU explores fintech innovation, investment

• Aims to make takaful more accessible to the Malaysian public
• The initiative will pave the way for rooftop operators to explore fintech potential

The Malaysian Takaful Association (MTA) signed a memorandum of understanding (MoU) with the Fintech Association of Malaysia (FAOM) to stimulate the use of financial technology (fintech) and encourage digital innovation and use of fintech among takaful players in Malaysia.

In a joint statement, both parties said that the signing of the MoU is a strategic initiative of the MTA that supports Strategic Thrust Three: Advancing Financial Sector Digitization to Bank Negara Malaysia’s Financial Sector (FSB) Plan 2022-2026.

MTA CEO Mohd Radzuan Mohamed said: “It is our collective aim to achieve greater productivity, efficiency and effectiveness in our business operations, stakeholder communications (including agency networks) as well as customer interactions.

“More importantly, the collaboration allows us to explore avenues towards the implementation of initiatives identified under the value-based dissemination for takaful roadmap, launched in July 2022 and relevant initiatives under the national FSB 2022-2026,” said Mohd Radzuan.

President of FAOM Wilson Beh expects that the collaboration will add value to the takful players and the industry’s further development.

“It is exciting to think about the potential impact fintech can have in the taful space and for Malaysian consumers.

“With the introduction of takaful tech, we envision revolutionizing and simplifying access to Takaful protection plans, claims management and administration and agency transactions on your mobile phones and devices,” Beh said.

The 24-month collaboration has identified various areas for mutual collaboration to accelerate and encourage intech in the takaful space, including:

• FAOM to connect subject matter experts with industry players who can offer technical advice, sharing of latest trends in the fintech industry and mentoring support to MTA;
• MTA to explore platforms to connect and increase the participation of FAOM members and fintech startups in MTA’s events, programs and initiatives;
• Both parties will support and co-organize programs related to digital technology and digitization initiatives, taful transformation and development as well as general awareness building; and
• Both parties will support cross-promotion and marketing of each other’s programs and initiatives.

Innovations and digitization in the takaful sector are expected to benefit the industry, helping it raise its game, especially by making takaful more accessible to the Malaysian public, the associations said.

This will contribute to greater economic inclusion and social protection among Malaysians, they added.