Touch ‘n Go launches first digital microlending, GOpinjam

Digital initiative: (From left) Touch ‘n Go eWallet CEO Alan Ni, Effendy, Tengku Zafrul, CIMB Group chairman Datuk Mohd Nasir Ahmad and CIMB Group CEO Datuk Abdul Rahman Ahmad at the launch of GOpinjam in Kuala Lumpur.

TOUCH ‘n Go (TnG) Group targets to disburse around RM300mil this year after launching of GOpinjam, an inclusive digital personal loan proposition available in TnG eWallet and delivered 100% electronically.

GOpinjam is developed in partnership with CIMB Bank Bhd which offers personal loans as low as RM100 to a maximum of RM10,000 for Malaysians aged between 21 and 63 years of age.

The flexible repayment period ranges from one week to one year, with no hidden fees for early settlement. Interest rate starts from 8% per annum

This is believed to be a huge break through in the world of lending where first-time users who wish to apply are required to submit either a one-month payslip or latest Employees Provident Fund statement along with basic information for the loan application.

Potential borrowers are required to have a minimum monthly income of RM800 to gain access to GOpinjam. This is to promote inclusion and accessibility to as many people as possible targeting the underserved and lower income segments.

“The credit underwriting process is also differentiated, built using data that of credit bureau and also eWallet spend data resulting in greater accessibility for the under-banked segment,” according to a statement released by the group.

“The financial inclusion element was always at the forefront of our thinking, and we expect GOpinjam to be available to those who otherwise would not have been able to access formal credit facilities,” TnG group chief executive officer Effendy Shahul Hamid said.

The acceptance of the loan application will be known within the next business day upon full and accurate submission of the income documentation.

Effendy expects the approval rate to be higher than the current banking industry’s approval rate of about 25% to 30%.

Applicants will see the funds reflect into either their TnG eWallet or a CIMB Bank account immediately after approval. However, returning users will not need to go through submission process instead getting a straight-through approval and instant loan disbursement.

This is the first lending offering that allow users to borrow as low as RM100 through CIMB Bank’s e-Zi Tunai Personal Loan product which has been approved by Bank Negara.

Effendy said TnG wishes to educate borrowers towards debt management at the same time aiding Malaysians through legitimate financing facilities rather than opting to borrow from unauthorised moneylenders.

During his speech in the launch, Effendy said there is over 60 million users for TnG eWallet with over five million transactions with the group monthly.

This makes them the largest eWallet company in Malaysia with over RM15bil in total transaction value last year, 20 times more compared to what it was in 2019.

Effendy said about five million TnG cards and two million radio frequency identification (RFID) tags are linked to TnG eWallet.

TnG’s other key financial services such as TnG’s GO+ micro-investment proposition launched last year has around 2.25 million users while on the insurance side, TnG contributed 31% of the Perlindungan Tenang Voucher Programme by the government.

Meanwhile, CIMB Group CEO Datuk Abdul Rahman Ahmad said CIMB is proud to support GOpinjam through its CIMB e-Zi Tunai Personal Loan.

“This development is also in line with our long-term strategy and intent for the TnG group, and to allow it to develop into one of Malaysia’s leading non-bank digital financial services providers,” Abdul Rahman said in a statement.

The GOpinjam was officially launched by Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz.

During his speech in the launch, Tengku Zafrul said the past two years have accelerated inevitable trends ranging from how people make payments to the consumption of financial products.

He added there is an increase in e-payment transactions for an average Malaysian to 221 transactions last year from 150 transactions in 2019. Similarly, the mobile banking and e-money transactions grew at a faster rate.

According to Tengku Zafrul, mobile banking transactions nearly quadrupled to RM800bil in 2021 from RM203bil in 2019.

Meanwhile, e-money transactions grew nearly threefold to RM51bil in 2021 from RM18bil in 2019 with 47 non-banking money issuers.

Tengku Zafrul believes that consumers and merchants have quickly adopted to the new normal of a cashless environment.

He also believes this development would not be possible without the acceleration of technological adoption and financial and payments industry role like TnG in promoting a digital and mobile first mindset.

In pushing finance for all agenda under the five-year Financial Sector Blueprint, the government recognises that it is not only the availability of digital finance product that is important, but also the access to these products.

“This year will continue to be a transformative year supported by solid fundamentals in the financial sector and the ever changing trends,” Tengku Zafrul said.

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Touch 'n Go , GOpinjam


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