Indonesian E-Wallet OVO Launches Its First Shariah-Compliant Digital Investment Offeringby Fintech News Indonesia July 5, 2021
Indonesian e-wallet OVO has launched its first shariah mutual fund product, which comes with one of the lowest buy-in for a product of its kind (less than US$1) and allows investors to instantly cash out their funds in real time.
The Syariah Syailendra OVO Bareksa Tunai Likuid mutual fund product is offered exclusively in the OVO app in collaboration with Indonesian asset management fund Syailendra Capital and its strategic partner Bareksa.
The firm said in a statement that “by setting the minimum investment threshold to one of the lowest in the industry at just IDR 10,000,- (SG$1 or US$ 0.70) and allowing investors to access their funds at any time to pay for purchases, OVO has removed key barriers to investing”.
Previously in January 2021, OVO launched its first digital mutual fund product to strong response, reportedly attracting around 450,000 investors in the first three months.
More recently, OVO launched its first shariah-compliant financial services product in the form of a shariah-compliant digital life insurance product called PRUTect Care – Hospital Cash in collaboration with Prudential.
“Approximately 40 percent of Indonesians that we surveyed have expressed interest in investing in shariah investments through the OVO application. We believe that there is enormous untapped potential for shariah products and services.
With this instant cash-out feature and shariah-compliant product, OVO is continuing to drive innovation in the micro-investment landscape in Indonesia, towards enabling more Indonesians to participate in their country’s growth story.”
said Rajiv Chandna, OVO Chief Commercial Officer for Financial Services.