KUALA LUMPUR (Aug 24): Kenanga Investment Bank Bhd (Kenanga IB) aims to integrate its portfolio of digital products into a one-stop centre with its Wealth SuperApp, which is expected to be launched in the first quarter of 2023 (1Q23).

The investment bank's group managing director Datuk Chay Wai Leong said Kenanga IB is investing about RM10 million to RM15 million to develop the superapp, which is leveraging on mobile platform as a service (mPaaS) from Ant Group's digital technology unit.

Chay was speaking to the press on Wednesday (Aug 24) at Kenanga Tower, after the signing ceremony of a memorandum of understanding (MOU) between Kenanga IB and Ant Group. 

Ant Group general manager of international business Derrick Loi, who was also present at the ceremony, said Ant Group’s Alipay provides financial payments and other services for over 1.3 billion customers and 80 million merchants. 

“We have the privilege to work with Ant Group and their network; they have wallets across Asia,” Chay said, noting that the Chinese fintech giant is a good partner to develop the superapp, which he said will be “the first in Malaysia and a pioneer in the Asean region”. 

Some of Kenanga IB’s current products include online stock trading platform Rakuten Trade, artificial intelligence robo-advisor Kenanga Digital Investing and securities broking e-wallet Kenanga Money.

“We see this superapp as another distribution channel. Each of the verticals (Kenanga products) will benefit from the superapp. 

“We are very conservative people. (Though) we would foresee in the short term that it will be massively lucrative for us, this is [really about] future proofing ourselves. 

“In order to survive, this is the only way to go,” Chay said when asked if the superapp will heighten Kenanga IB’s revenue in its financial year 2023 (FY23). 

He said the superapp’s initial target audience will be the affluent group, but it intends to eventually reach the majority of the middle 40% household income group (M40s) as part of its financial inclusion goal.   

“There is a lot of focus in the market today about the lending business, the banks are doing that, maybe digital banks will be focusing on that. 

“If you look at the household debts of the country, it is pretty high. So is there any focus on telling people how to invest and to save? I think we are kind of in the minority at the moment, that is our future direction,” Chay said. 

Kenanga IB executive director and head of group equity broking business Lee Kok Khee, in his speech during the ceremony, highlighted that 70% of Malaysians are still not well-versed with basic financial concepts. 

According to Chay, Lee and Kenanga IB group chief digital officer Ian Lloyd, Kenanga IB hopes the superapp will attract more new investors in the M40 range, as well as help people in the category to step up in wealth generation and management. 

In Kenanga IB’s bourse filling, it said the MOU with Ant Group will be in force for twelve months. Kenanga IB’s share price closed was up 0.5 sen or 0.56% to 90 sen on Wednesday, valuing the group at RM662 million.