Versa, in collaboration with Affin Hwang Asset Management, recently launched their latest digital money management platform. They are the first fintech to focus solely on money market funds for retail investors. The public can invest from as low as RM1. Depositors will soon be able to earn daily interest up to 2.4% per annum and unlock the potential of your cash. 

Previously, money market funds were not easily accessible to the public with common options being trust funds with high management and commission fees. The starting capital for money market funds were also quite substantial with some requiring almost RM10,000 to invest.

Versa, in collaboration with Affin Hwang Asset Management, recently launched their latest digital money management platform. It does not charge sales charge, transfer nor exit fees so this would be a useful addition to diversify your portfolio. However, they do charge management and trustee fees up to 0.35% per annum.

They had their soft launch in January 2021 and officially launched on 7th April 2021. Since January, they had garnered around RM10 million in deposits in three months since their launch. They had also registered over 4,000 accounts with RM2,700 deposit per user. Quite an outstanding feat!

A New Appeal On Low Risk Investments

The low interest rate environment due to the COVID-19 pandemic and economic factors have caused investors to have lower yield on their fixed deposits return, with banks now offering 1%-2% interest rates on fixed deposits. That situation was exacerbated by the added restrictions where depositor cannot withdraw their funds within lock-in period to avoid penalty or fees.

Versa tackles this gap by offering better returns and flexibility in depositing/withdrawing funds. So, in a way, Versa offers a platform for people who cannot commit to long-term commitments. It definitely sounds like product for younger folks who have less accumulated funds to play with!

Versa can be useful in portfolio diversification. It’s a small step towards improving financial literacy through fintech especially among the younger generations in a world where financial instruments are being made more accessible.

How Versa Works

From as low as RM1, Versa offers Malaysians the opportunity to invest in Affin Hwang Enhanced Deposit Fund, a RM2 billion-sized money market funds (MMF) that aims to provide users with returns guided by the fixed deposit rate of Malaysia.

“Versa was created to solve a personal problem statement – I had to break my fixed deposits several times to meet emergency situations. As such, we are promoting a new way for users to manage their spare cash. In such unpredictable times, the ability to invest and also have cash on hand when the time calls for it is extremely important. With Versa, we want to encourage the general Malaysian public to understand the benefit of MMF in our current situation – be it the stability, liquidity or security that it offers, they will be able to rest assured knowing that they will be well taken care of with Versa. Our partnership with Affin Hwang Asset Management, who has a longstanding history of asset management will help us to help Malaysians to invest smart, and do it well,”  said Teoh Wei-Xiang, CEO of Versa.

How To Register for Versa

Step 1: Download the Versa app from App Store or Google Play and register using your email with verification code.

Step 2: Verify account with mobile number and OTP sent to your mobile phone.

Step 3: Submit MyKad front and back for verification.

Step 4: Submit a selfie and personal information.

 

Are you using the Versa app for your cash solutions? What do you like or dislike about the app? Let us know in the comments below. 

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