Indonesian E-Wallet OVO Rolls Out in-App Investment Productby Fintech News Indonesia February 3, 2021
Indonesian e-wallet unicorn OVO has tied up with Manulife Aset Manajemen Indonesia (MAMI) and its strategic partner Bareksa to roll out an instant redemption mutual fund. OVO claims that this offering is the first of its kind in Indonesia.
The money market mutual fund product is offered in the OVO mobile app under its OVO Invest feature from IDR 10,000 (USD 0.70) onwards. OVO said that the product also offers instant redemption.
With this offering, OVO aims to revolutionise the micro-investment landscape in Indonesia and make investing both attractive and accessible to beginner investors.
In 2019, only 1.7% of the population participated in the capital market according to data from the Financial Services Authority (Otoritas Jasa Keuangan). Barriers to participation include lack of access to investment opportunities, high capital entry requirements, payment problems and illiquidity of the invested funds.
This collaboration with MAMI is the latest in a series of recent high-profile partnerships for OVO, including a partnership with Prudential Indonesia in the insurance sector and a joint venture between OVO’s parent company BCP with regional insurtech firm ZA Tech.
Jason Thompson, CEO of OVO said,
“As part of serving our users better, we are excited to announce the launch of OVO’s long-planned investment vertical, starting with Indonesia’s first instant redemption mutual fund product.
This breakthrough product marks a new milestone in OVO’s evolution to become a financial services provider, in hopes of creating more opportunities for our users to participate in Indonesia’s economic growth through the power of digital technology.”
Afifa, Director, Interim President Director of MAMI said,
“We are grateful to be entrusted by OVO and Bareksa to provide the first mutual fund in OVO Invest. As one of the leading and most trusted asset management companies in Indonesia, MAMI is committed to developing the mutual fund industry in Indonesia.
We believe our collaboration with OVO and Bareksa will increase financial literacy and inclusion of mutual funds in Indonesia, especially the younger generation.”
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Featured image credit: OVO