Kuala Lumpur, 29 January 2021 — Versa, a digital cash management platform with a mission to encourage and educate Malaysians on better ways to manage their finances and unlock the potential of their idle cash, today officially launches their comprehensive, user-friendly digital platform. Accessible as a mobile application, users on the Versa platform can acquire returns that are similar to other low-risk deposit options while enjoying the flexibility of a savings account.
Realizing the Importance of Money Management
In light of the pandemic, and the economic downturn that has taken place as a result, the necessity for more financial education and investment options have been at an all-time high with many Malaysians forced to realise the importance of saving money for rainy days. In fact, many have taken the opportunity to be more prudent in terms of spending, saving and investing during the movement control order (MCO) period. Throughout last year’s pandemic, a high percentage of households across T20, M40 and B40 categories have recorded a reduction in spending, while some had started investing more in stock markets and fixed deposits.
Making Money Market Fund Accessible to the Masses
Derived from the concept of money market fund (MMF), a type of mutual fund available in the market, Versa offers many benefits to ordinary investors due to its low-risk and high liquidity nature.
While money market funds provide a more reliable financial solution to manage one’s cash over savings accounts and fixed deposits, many common investors, such as the average Malaysian, are typically unaware of the opportunities that MMFs provide.
Launched in partnership with Affin Hwang Asset Management, the third largest asset management operation in Malaysia (RM73.0 billion1 of total assets under administration as at 31 Dec 2020), Versa carries the mission to democratise MMF and to make it more readily accessible to the average Malaysian investors, and in the process educate the public on the best ways to manage their finances in a modern world.
“We are currently in an economic climate where average Malaysians, especially the younger generations, are paying more attention to their financial circumstances. Hence, we are grateful to have the full support of Affin Hwang Asset Management in launching Versa during these trying times. Moving forward, we hope that Versa’s digital cash management platform can alleviate their financial worries, and introduce better and more practical investment alternatives over traditional ones such as fixed deposits and trading,” said Teoh Wei-Xiang, Chief Executive Officer, Versa.
“Digitisation is a journey that Affin Hwang Asset Management will continue to embark on as we look to continuously innovate and serve our clients better. Against a low interest rate environment, the search for yield will continue to be a recurring theme for investors. Our partnership with Versa will provide a solution for investors to diversify their investments and maximise the potential of their cash reserves in their portfolio,” said Teng Chee Wai, Managing Director, Affin Hwang Asset Management.
“Through our partnership with Versa, we are excited to bring a new solution into the market that will allow Malaysians to more easily tap into money market funds which were not commonly accessible to retail investors in the past. We continue to see strong demand for MMFs amongst high-net-worth individuals and corp1orates seeking to park their cash and earn positive yield. We expect the retail segment to follow suit too as awareness builds. This new digital cash management solution that will be available through a mobile app will help Malaysians get the most from their idle cash through higher yields but without sacrificing liquidity,” said Allen Woo, Chief Innovation Officer, Affin Hwang Asset Management.
Transforming Sleeping Cash into Money-Earning Opportunities
Through its user-friendly interface and seamless onboarding process that allow users to create an account within minutes, Versa provides a multitude of professionally-developed features that ensure the convenience and flexibility to manage funds digitally.
As the platform is connected to every bank in Malaysia through the convenient and secure online payment solution FPX, users who wish to sign up for a personal account can easily transfer a deposit from an external savings account to begin their cash management journey with Versa. Versa users can also benefit from the platform’s null lock-in period and return rates that are similar to the rates of other fixed deposits in the market. This feature allows users to make full use of their idle cash by transforming them into money-earning opportunities without any strings attached.
In prioritising cash flow and liquidity, Versa account holders have the autonomy to withdraw their funds at any moment without incurring any penalties, which is useful for emergencies. Additionally, Versa’s model excludes any sales, transfer and exit fees. With these features, Versa intends to appeal to investors rather than alienating them, further establishing itself as an instrumental cash management platform for Malaysians.
“As we venture into a new decade, it is high time that financial management and solutions continue evolving based on the current needs. The younger generation, for example, have less disposable income and are not as financially-stable compared to high net-worth individuals. With Versa’s low-risk money management model that complements their spending patterns, they can kick start their investment journey with a low entry fee, and at the same time have full access to their funds, enabling them to withdraw money within a 24-hour window without any penalties incurred,” Teoh added.
Versa is a recognised market operator (e-Service platform) under Section 34 of the Capital Markets & Services Act 2007 with approval and license from the Securities Commission Malaysia (SC). The Versa platform officially launches today, 29 January 2021, and the mobile application is now available on the App Store and Google Play. For more information on Versa, visit https://versa.com.my/.
For the step-by-step Versa sign-up process, kindly refer to Appendix A
