GoPay Explores Gadget Insurance, OVO Strengthens Investment Services

Financial technology (fintech) startups GoPay and OVO strengthened services earlier this year. GoPay penetrates gadget insurance, while OVO integrates digital wallets (e-money) and investment. Previously, Gojek’s insurance service, GoSure, provided cracked cellphone screen insurance.

Now, the company provides protection for the whole gadget or moveable all risk. “We understand very well the importance of protecting gadgets, which are now almost the primary needs of society,” said GoPay Managing Director Budi Gandasoebrate in a press release, Wednesday (27/1).

Gojek and GoPay are working with the insurance startup (insurtech) PasarPolis to provide these device protection products. This insurance covers theft and accidental damage, due to fire, lightning, explosion, liquid to natural disasters. Users can insure tablets and smartwatches, aka smartwatches with a protection period of up to 12 months.

There are two premiums offered, namely the basic type of IDR 25 thousand and a premium of IDR 50 thousand. Its competitor, OVO is also strengthening its financial services. This purple nuanced fintech integrates its services with the financial and investment platform Bareksa.

OVO also Launched the Invest Feature in the Application

OVO also launched the Invest feature in the application. “This is the first breakthrough that has occurred in Indonesia, integrating e-money and e-investment, like Alipay and Yu’e Bao in China,” said OVO President Director and CEO Bareksa Karaniya Dharmasaputra in a press release, Tuesday (26/1).

The fintech has consulted with Bank Indonesia (BI) and the Financial Services Authority (OJK) to integrate the two services. “We are grateful for the support of BI and OJK who are pro-innovation and visionary in the use of fintech to increase inclusion and deepen financial markets,” said Karaniya.

The launch of the Invest feature also refers to OJK data that the financial inclusion index in Indonesia is 76.2%. Meanwhile, the level of financial literacy is still low at 38%. Based on the OVO and Kantar survey regarding the investment habits of the millennial generation, six out of 10 respondents prefer to save rather than invest.

Half of the respondents also considered that mutual fund investment was high risk, one of the reasons was that the disbursement process was not friendly and it took a long time to earn profits. Therefore, OVO launched the Invest feature. Its product is the Manulife OVO Bareksa Likuid (MOBLI) money market mutual fund, which is managed by Manulife Aset Manajemen Indonesia.

Investors can invest in mutual funds starting from IDR 10 thousand using OVO and there are no fees for purchasing or disbursing investment funds. The disbursement process is claimed to be instant. The investment returns are also claimed to be attractive with a relatively low level of risk.

Afifa, the Interim President Director of Manulife Aset Manajemen Indonesia, added that the company is active in educating the public about finance. “We believe this collaboration will benefit the Indonesian people in increasing mutual fund literacy and inclusion,” he said.

The Younger Generation Can Get Benefits from Reksa Dana Investments

Financial coach Philip Mulyana said, there are several benefits the younger generation can get if they start investing in money market mutual funds early on. One of them is a profit of 4-6% per year compared to conventional savings which are only 2%.

“Mutual fund investment can also be a good emergency fund savings option for novice investors,” said Philip. “What’s more, the instant disbursement feature, so it’s easier to cash when suddenly needed.”

Meanwhile, the founder of the Learning Platform and Mentorgue Fellexandro Ruby gave tips to start investing early. First of all, set aside excess funds on a regular basis and invest them in mutual fund instruments.

When there are enough funds, you can try to diversify your investment. He gave an example, by opening a business or buying productive assets such as apartments or houses to rent back. “Currently, we are faced with a corona pandemic situation. So, we must have the awareness to set aside excess funds that are invested for unexpected times,” he said.