Singapore’s ZA Tech Global, a digital insurance solutions provider, is the latest strategic business partner and investor of Bank Aladin, an Indonesian Islamic digital bank, to collaborate on insurtech offerings for Indonesian consumers.
Under the partnership, the two entities will be providing financial education and planning with accessible and affordable insurance products to customers in Indonesia.
Additionally, ZA Tech and Bank Aladin, also known as Aladin Bank, will be working closely together in the long term, with the tech company being an investor through the bank’s ongoing rights issue process.
“This [collaboration] signals that more big players are looking at Aladin Bank’s value proposition in expanding the reach of Islamic finance in Indonesia. Through this collaboration, we want to increase synergies, especially in the insurance sector of Indonesia. We hope through this initiative, digital insurance products will be more affordable for the wider community, considering that ZA Tech is a very innovative insurtech player globally and has an excellent track record of empowering the digital transformation of insurance business,” noted Dyota Marsudi, the president director of Aladin Bank.
“The collaboration of Shariah digital banking services with insurtech such as Aladin Bank and ZA Tech will provide options for the public to carry out digital and modern insurance transactions,” asserted Young Yang, the general manager of ZA Tech Southeast Asia. “By leveraging cutting-edge technology and our experience in empowering the digital insurance ecosystem, we believe that this investment will facilitate Aladin Bank to democratize financial literacy, especially for the underbanked segment, as well as to expand its footprint as a digital bank that puts forward Shariah principles.”
Bank Aladin is one of six digital banks operating in Indonesia and the only fully-fledged Islamic one (three others run Islamic units).
Both Islamic fintech and insurtech are gaining prominence in the country, with many industry players looking into entering the market. Last year, notably, Asuransi Takaful Keluarga launched the country’s first Waqf insurtech.