KUALA LUMPUR: Kenanga Investment Bank Bhd has bought a 4.99 per cent stake in Merchantrade Asia Sdn Bhd, Malaysia's largest money services business operator.
This follows Kenanga's recent collaboration with Merchantrade to introduce Malaysia's first stockbroker e-wallet, Kenanga Money.
Kenanga group managing director Datuk Chay Wai Leong said Merchantrade is one of the fastest growing digital payment and remittance brands in the country.
It is instantly on the forefront of digitisation and driving innovation in financial services, rapidly making waves across Asia in a segment projected to experience exponential growth.
"Both homegrown brands with sights set on digital innovations, there is tremendous synergy between Kenanga and Merchantrade, from our business models, product line-up and corporate values.
"However, it is the underlying shared vision and ambition we have to reshape the financial space through emerging technologies, that will power the many other exciting collaborations in the pipeline.
"Building a robust ecosystem that adds value to the customers is at the core of our digital strategy. To bring that to live, finding the right partners to co-create and collaborate with, is crucial and the key to unlock longer-term growth," said Chay.
Kenanga said the partnership would add to the line-up of digital initiatives Kenanga had embarked on over recent years.
This includes the joint-venture with Japan based Rakuten Inc to introduce the first fully online stocktrading platform in Malaysia, Rakuten Trade, which has since seen record volume growth.
It also recently announced a partnership with award-winning digital supply chain financing company, Bay Group Holdings Sdn Bhd, to transform the traditional factoring market in Malaysia.
Also in the works is a robo-advisory platform that will be launched early next year.
Backed by other shareholders that include Celcom Axiata Bhd and Sumitomo Corporation of Japan, Merchantrade clinched the coveted Fintech Financial Services Award last year and serves a customer base of over three million through its digital online and app- based channels and extensive nationwide physical network.
Merchantrade recently acquired additional stake in Singapore's mobile remittance service, KLIQ Pte Ltd, besides 100 per cent acquisition of local leading digital remittance player, Valyou Sdn Bhd from the Telenor Group.
With the acquisition, Merchantrade will have a combined annual remittance turnover of more than RM11 billion and a network of over 1,700 touchpoints, solidifying its position as the largest remittance player in the country.