Adoption of Virtual Banks and Insurers

Adoption of Virtual Banks and Insurers 44 Survey Findings Virtual banks/insurers offer more products to customers At the time of this survey, Bowtie carries a standard and flexible Voluntary Health Insurance Scheme (VHIS), as well as other health-related insurance products. It plans to launch term life insurance in the second half of 2020. Avo offers general insurance products for individuals, such as eWallet, travel, and health-related insurance. For virtual banks, ZA Bank provides deposit, electronic fund payment, and loans for individuals and SMEs, while Airstar, WeLab Bank and Livi only serve individual customers for the time being. Compared to traditional banks, virtual banks do not have physical branches to provide cash teller or ATM services, which is an important service for retail banking. To resolve this, WeLab Bank has created a numberless debit card (with a virtual function) to access ATMs that is also available to Mastercard holders. 8 Similarly, Mox will also have a numberless card with credit and debit card functions. 9 In addition, Mox’s customers will be able to withdraw cash from both Jetco and Mastercard ATM machines. The respondents were asked if virtual banks and insurers offer more products to customers. The majority of respondents revealed they are indifferent (46.8%). Of the respondents, 37.5% totally disagree or disagree, while only 15.7% totally agree or agree. Most respondents do not see a big difference between incumbents and virtual entries in terms of product offerings. In fact, traditional banks and insurers offer a larger variety of products at this point, which is consistent with the survey results whereby more respondents disagree than agree that virtual entries offer more products than the incumbents. 8 WeLab Bank, Debit Card, https://www.welab.bank/en/feature/debit-card 9 Mox, Features, Smart Spending, https://mox.com/features/ Exhibit 18 Virtual banks/insurers offer more products to customers [1 - Totally Disagree ...... 5 - Totally Agree]