Grab Financial Group (GFG), the fintech arm of Grab, has launched a suite of new financial and wealth management products that will launch in Singapore first before heading to other countries later this year, including Malaysia.
Among the new products to be launched is Grab AutoInvest, a micro-investment solution that is the product of Grab’s acquisition of Bento, a Singaporean robo-advisory startup. Grab AutoInvest aims to make investing more convenient by letting users invest small sums of money as they spend on the Grab app. They will be able to earn returns of an estimated 1.8% per annum, which can then be cashed out directly to their GrabPay wallet.
Currently, Grab is planning to launch AutoInvest in Singapore in early September to eligible users. Deposits into AutoInvest are invested into fixed-income funds managed by Fullerton Fund Management and UOB Asset Management, and will have a “low all-inclusive fee”.
Besides that, Grab will also introduce a third-party consumer loan platform, which enables its users to discover personal loans offered by Grab’s bank partners. The new service will also allow them to apply for the loans directly from the Grab app. Grab further said that the platform will be introduced first in Singapore, before expanding to Malaysia and other countries. However, it did not specify a date as to when the platform will be launched.
Aside from consumer loans, Grab is also expanding its “buy-now-pay-later” offerings by introducing PayLater Instalments and PayLater Postpaid on select e-commerce sites in Singapore and Malaysia. Set to launch in October, these features allow users to make their purchases now and pay for it via monthly instalments (PayLater Instalments) or by deferring their payments to the following month (PayLater Postpaid).
In Malaysia, Grab had launched the pilot PayLater service in November 2019, before suspending it at the end of April 2020 until further notice (though some users have reported that they still can use PayLater on their accounts). With this announcement, Grab users in the country will very likely see the revival of the PayLater feature soon.
Finally, GFG will also increase its range of insurance options with the expansion of its Ride Cover micro-insurance policy into three new markets (Philippines, Thailand, and Vietnam) by the end of this year. Ride Cover, which offers protection for users while on Grab rides and is charged on a “pay-per-trip” structure, is already available in Singapore, Malaysia, and Indonesia.
There will also be a new insurance product, called Hospital Cash Cover. It is GFG’s first hospitalisation insurance plan for consumers, it will first roll out in Indonesia.
Grab further commented that its suite of new financial services is launched under the “Thrive with Grab” strategy, which seeks to expand its range of offerings to tap into Southeast Asia’s vast mass market financial services opportunity.
“As a leading fintech company is Southeast Asia, our ‘Thrive with Grab’ strategy will enable users to build their wealth, manage their finances and protect what they value during this uncertain period. By offering innovative micro-transaction-based financial services, convenient financial management tools and access to products from leading global financial institutions, we hope to unlock the tremendous potential in financial services in the region in ways that serve all Southeast Asians,” said the senior managing director of Grab Financial Group, Reuben Lai in a statement.
(Source: Grab Singapore)