ZA Tech Global Limited (ZA Tech), a Singaporean technology venture founded by ZA International and backed by Softbank’s Vision Fund 1, said Monday it has become the latest strategic partner to collaborate with Indonesia first Sharia digital bank Aladin Bank as an investor and a business partner, and is fully committed to strengthening Aladin Bank’s ecosystem.
ZA Tech said in a statement that the Covid-19 pandemic and government policies supporting the digital economy have changed the landscape of various industries, including the insurance industry in Indonesia. These changes have led to more online solutions that transcend geographical restrictions, heightening the potential of InsurTech in providing an alternative distribution channel for insurance products and allowing them to be increasingly accepted by Indonesian consumers.
Seeing this momentum, it said ZA Tech and Aladin Bank are collaborating to seize the opportunity, combining their goals to provide financial education and planning with accessible and affordable insurance products in Indonesia into one unified vision.
With the scope of their partnership not limited to just products and technology, ZA Tech and Aladin Bank will work closely together in the long term. This long-term view is proven by ZA Tech’s commitment to being Aladin Bank’s investor through the latter’s ongoing rights issue process.
“The partnership between ZA Tech and Aladin Bank represents one of our commitments to promoting financial inclusion in Indonesia. The collaboration of Sharia digital banking services with InsurTech such as Aladin Bank and ZA Tech will provide options for the public to carry out digital and modern insurance transactions,” said Young Yang, General Manager of ZA Tech Southeast Asia.
“Being an investor in Aladin Bank will support ZA Tech’s aspirations to do business in Indonesia. By leveraging cutting-edge technology and our experience in empowering the digital insurance ecosystem, we believe that this investment will facilitate Aladin Bank to democratize financial literacy, especially for the underbanked segment, as well as to expand its footprint as a digital bank that puts forward Sharia principles,” added Young.
According to the statement, this breakthrough will create a solid base for collaboration between the two parties, as well as provide innovative solutions to customers and the insurance market in Indonesia.
“Aladin Bank’s collaboration with ZA Tech is a true realization of its commitment to supporting the digital transformation of insurance companies, accelerating the adoption of InsurTech in Indonesia. Aladin Bank as the future Sharia bank is very pleased to be collaborating with ZA Tech. This signals that more big players are looking at Aladin Bank’s value proposition in expanding the reach of Islamic finance in Indonesia,” said Dyota Marsudi, President Director of Aladin Bank.
“Through this collaboration, we want to increase synergies, especially in the insurance sector of Indonesia. We hope through this initiative digital insurance products will be more affordable for the wider community, considering that ZA Tech is a very innovative InsurTech player globally and has an excellent track record of empowering the digital transformation of insurance business. We are also proud that ZA Tech is coming in as one of Aladin Bank’s investors. This will certainly strengthen Aladin Bank as a digital bank, both in terms of capital and various strategic business plans going forward.” added Dyota.
ZA Tech has established strategic partnerships with various leading insurers and internet platforms around the world. It has a regional digital technology partnership with AIA, the largest independent publicly listed pan-Asian life insurance group, in AIA’s markets in Asia excluding Mainland China. In Southeast Asia, ZA Tech has collaborated with Grab, the decacorn mobile technology company, while in Indonesia, it has collaborated with OVO, a digital wallet company.
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