Malaysian digital cash management platform Versa is officially launched

  • First recognised market operator to obtain approval from Securities Commission
  • Seeks to democratise MMF to the masses; offers easy onboarding, no-penalty withdrawals

Versa account holders have the autonomy to withdraw funds at any moment without incurring any penalties.

Homegrown Malaysian digital cash management platform Versa, officially launched their digital platform on 29 Jan. Accessible as a mobile application, Versa offers users a better way to manage their finances and give their idle cash a bit more to do – the platform allows users to acquire returns similar to other low-risk deposit options with the flexibility of a savings account.  The mobile application is now available on the App Store and Google Play.

Established in 2020, Versa is the first recognised market operator (e-service platform) to obtain approval and license from the Securities Commission Malaysia (SC). Versa is derived from the concept of money market fund (MMF), a type of mutual fund available in the market.

While money market funds provide a more reliable financial solution to manage one’s cash over savings accounts and fixed deposits, the average Malaysian investor is typically unaware of the opportunities that MMFs provide. Versa seeks to democratise MMF and make it more readily accessible to the average investor.

Versa is launched in partnership with Affin Hwang Asset Management, the third largest asset management operation in Malaysia with US$18 billion (RM73 billion) of total assets under administration as at 31 Dec 2020.

“We are currently in an economic climate where average Malaysians, especially the younger generation, 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,” says Versa chief executive officer, Teoh Wei-Xiang.

“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.”

Affin Hwang Asset Management managing director Teng Chee Wai adds: “Digitisation is a journey that we will continue to embark on as we 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.”

 

Putting sleeping cash to work

Versa features a user-friendly interface and touts a seamless onboarding process that allow users to create an account “within minutes”. It also provides a multitude of professionally-developed features to more conveniently and flexibly manage funds digitally.

The platform is connected to every bank in Malaysia through FPX, so users who wish to sign up for a personal account can easily transfer a deposit from an external savings account. Versa says that they have 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 without any strings attached.

Versa account holders also have the autonomy to withdraw their funds at any moment without incurring any penalties, so your funds are not locked out in case of emergencies. Additionally, Versa’s model excludes any sales, transfer and exit fees.

“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,” adds Teoh.

“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.” 

 

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