Fintech and the Challenge of Digital Disruption in Takaful Operation

Abstract

It is undeniably true that the digital disruption situation is unavoidable and real. The use of financial technology (fintech) is a prerequisite nowadays and was no longer an alternative back in those days. Consumers can have all the banking services available at their fingers through smart devices and this creates a good user experience. However, it shall be noted that although fintech has provided the consumers with much convenience, it should not distract the main purpose of banking industries for being the ‘safekeeper’ of consumers’ money. The challenge faced by Takaful operation due to digital disruption is either to adapt to it or suffer a slow death. One of the initiatives taken by Takaful Malaysia is to collaborate with software company Fusionex to transform its core software and to promote social media marketing. The response was very welcome and about 40 million insurance policies was sold on its digital platform since its first product launched online within a period of three months. Takaful Malaysia on the the hand is putting in effort seeking to reach more people especially the senior citizens with no or minimal knowledge Internet knowledge and also rural customers who lack of internet access.