KUALA LUMPUR (March 7): Capital A Bhd’s airasia Super App has inked a memorandum of understanding (MoU) with CGS-CIMB Securities Sdn Bhd to introduce stock trading as a new feature via ProsperUs, CGS-CIMB Securities’ digital investment platform.

At the MoU signing ceremony on Monday (March 7), Capital A’s chief executive officer (CEO) Tan Sri Tony Fernandes said the collaboration between the investment holding group and the financial solutions provider was inspired by the rise of zero-fee stock and crypto trading provider Robinhood in the US which had democratised share ownership for the public.

“For airasia Super App to do it by ourselves would take a long time to get regulatory approvals, plus [stockbroking] is not our expertise. As we move forward, this will become a joint venture (JV) to really democratise institutional broking,” Fernandes said.

He added that CGS-CIMB Securities’ footprint in the Southeast-Asian region and competitive advantages complement airasia’s strong branding and large customer base, making the partnership a “powerful” combination.

Speaking on the collaboration, CGS-CIMB Securities’ CEO Ruzi Rani Ajith said the financial solutions provider is excited to partner with airasia Super App by capitalising on CGS-CIMB Securities’ investment-as-a-service model.

“With over 40 years of experience in Asia, we have evolved from being a pure-play traditional broker to being a trusted financial solutions provider for not only institutional clients but also for the man in the street.

“With our focus on ESG, we will level the playing field by providing financial literacy courses so that as 'everyone can invest', they do so with knowledge and wisdom.

“Ultimately, we want to create investment opportunities for those who would otherwise be left behind, with a platform that is simple to use and affordable,” Ruzi said.

Asked when the service will be available, airasia Super App’s chief fintech officer Mohamad Hafidz Mohd Fadzil said the public can expect to use the service within the next six months.

“The work starts after the MoU signing. There are, of course, the considerations around regulations which we have to make sure that it is done correctly and according to what the Securities Commission [Malaysia] and regulators ask us to do.

“Right now, we have already started engaging the regulators to ensure that [our product] is within the confines of the regulation. Once that is clear, we will be hitting the market very quickly.

“We also have a lot of work to do to develop the community, education as well as product fit for the community we have within our Super App itself, we hope to do this very quickly because we want to develop the ability for our users to collect extra wealth,” Hafidz said.

He added that the partnership with CGS-CIMB Securities bodes well with airasia’s aim to provide inclusive, affordable and accessible services while providing the best financial services for the underserved and public at large.

Meanwhile, CGS-CIMB Securities deputy CEO Alan Inn shared that stocks will be the first landing point in terms of product offerings for the collaboration with fractional share trading as a means to make share ownership accessible to the public.

“We will be offering other products as well such as portfolio management through a robo-advisory type platform, there are other instruments like fixed income or bonds, futures, contract for difference (CFD) and crypto in the future.

“Today in the various platforms we see in Malaysia, apart from the platforms which are typically difficult to use, people buy stocks in one lot — which is 100 shares on Bursa Malaysia — we are going to change that so that customers do not have to buy in lots but in dollar terms.

“For example, if a customer has US$100 or RM100 and wants to buy Maybank or CIMB shares for a RM100 worth, that typically will be less than one lot and we are going to enable that,” Inn said.

At midday break on Monday, Capital A shares were unchanged at 63 sen, valuing the group at RM2.62 billion based on 4.16 billion shares.