with Indonesia’s PT Inovasi Telematika Nusantara & Nahdlatul Ulama
Potential To Reach 94 Million Members of Indonesia’s Largest Islamic Organisation
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| (4th from left) Mr. Ng Kok Heng, Group CEO of XOX Berhad explaining the features of technology behind the NU Mobile at the launch of NU Mobile in Jakarta, with Datuk Eddie Chai, Group MD of XOX Berhad (4th from right). |
NU Mobile Application on Google Play StoreNU Mobile Application Interface showing some of the features including e-Wallet (Nu Money), E-Banking, NU Invest, Nu Mart and Nu Channel
NU Mobile application was developed on XOX’s proprietary Voopee SIM-less mobile solution in collaboration with Inovasi Telematika Nusantara, an Indonesian telecommunications services provider and Nahdlatul Ulama (NU).
NU is the largest independent Islamic organisation in the world, that is also a charitable body, funding schools and hospitals as well as organising communities to help alleviate poverty. NU has approximately 94 million members in Indonesia.
A recent report highlights that only 36% of Indonesia’s population is connected to formal financial institutions, leaving an estimated 110 million unbanked citizens due to banks’ higher fees, and long distances to branches[1]. In response, The Indonesian Government is supporting innovative Digital Financial Services through new regulations aimed at improving financial inclusion and access for unbanked citizens. Branchless banking and digital financial service schemes with mobile-based agents are also being developed and the Financial Services Authority (OJK) has issued consumer protection regulations regarding electronic payments processing.
The NU Mobile application will offer SIM-less mobile services towards government, banking, education and e-wallet for NU members. XOX provided the relevant technology, while PT Inovasi will provide the on-going technical and maintenance support. Pengurus Besar Nahdlatul Ulama (PBNU) will distribute and market the application to its members.
The launch of the NU Mobile application comes at a time when the Indonesian mobile payment market is expected to record a CAGR of 72.3% during 2017-2021 to reach USD14billion in transaction value terms by 2021, increasing from USD1.6billion in 2017. In 2016, the market registered a growth rate of 88.9% over 2015, to reach US$ 893 million[2].
McKinsey[3] reported that the digital economy is expected to contribute USD150billion annually to the Indonesia economy by 2025.
The NU Mobile application impressed during the launch with its clean, content-focused user-interface and intuitive use, even by those unfamiliar with online banking.
Indonesian President Joko Widodo through a video call shared that the introduction of more digital financial service such as the NU Mobile application would allow more Indonesians to benefit from the opportunities and convenience afforded by the digital economy.
Datuk Eddie Chai, Group Managing Director of XOX Berhad said that the company was delighted that its proprietary Voopee SIM-less mobile solution could provide the platform to empower more Indonesians to participate in the digital economy through the jointly developed NU Mobile application.
“Voopee was originally conceived as a means for secure, SIM-free communication – there are no telco charges involved, making it more affordable and hassle-free as it is not restricted to use with a particular SIM. XOX has invested in increasing the usage and capability of the Voopee solution. We are delighted that through this collaboration with PT Inovasi and Nahdlatul Ulama, our technology can help more people partake in the digital economy,” Datuk Eddie said.
XOX Media is believed to be among the first Malaysian companies to provide its proprietary e-wallet solution to a market as large, and geographically distributed as Indonesia. With a population of 261 million, Indonesia is the 4th most populous country in the world, and the 14th largest with a land area in excess of 1.9million km2.
Voopee combines GSM and with internet protocol(IP) technologies that allow user to make and receive calls and short message services (SMS) to any mobile number, without using a SIM.
According to PBNU‘s Head of Digital, Iman Pituduh, the organisation sought out a partner that could offer its members a solution that would be secure, convenient and that could be used without excessive charges.
“We want to offer our members financial inclusion that is safe and effective. As Indonesia is a huge archipelago, we saw the need for a solution that doesn’t require them to travel far and wide to access and manage their finances, they can do it all from their phone. The application had to be ‘light’ and speedy and require minimal outlay from our members. We found that the Voopee-based application that was developed by XOX and PT Inovasi ticked all the boxes, and through this collaboration we can offer our members the NU Mobile application,” said Iman Pituduh.
“NU Mobile is in-line with the Indonesian government’s 2020 Go Digital Vision campaign with the aim to boost the country’s digital economy. PBNU’s 94 million members make up almost a third of the population, and we want to prepare and equip them to embark on the digital economy,” he added.
The NU Mobile application is available for download from Google Play, at no charge.
“While NU Mobile is being marketed to NU members, there are no restrictions on anyone else downloading and using the app for any of the services. The e-wallet services will be offered for a start. It can also be used to pay Zakat, school fees, to charities and for micro-payments,” Iman Pituduh added.
The collaboration with PT Inovasi and PBNU is for ten years and may be renewed for another ten years with the agreement of all parties. Once the NU Mobile application has been fully deployed and commercialised, it is expected to have positive contribution to the future earnings per share and net assets per share of the group.
Following the launch of the NU Mobile application for the Indonesian market, XOX is expected to introduce a similar e-wallet application for the Malaysian market, as collaborations with multiple merchants are being carried out. The Malaysian e-wallet application is expected to be launched in the first quarter of 2018. About XOX Media Sdn Bhd
XOX Media Sdn Bhd is part of the XOX Berhad that was listed on the Bursa Malaysia in July 2011. Established in 2008, XOX Berhad also own XOX MOBILE that provides mobile phone services via Celcom’s 4G+,4G, 3G and 2G network infrastructure. Although XOX MOBILE is working with Celcom, the brand operates independently and maintains its own brand identity, customer service, management structure and staff.
Targeting Malaysian youths or millennials with its personalised mobile experiences and innovative products, the brand offers prepaid, postpaid and phone bundling services to approximately 2 million subscribers in Malaysia.
Continuously looking towards what lies ahead, the company’s vision is to become regional’s best mutli-platform mobile service provider. XOX Berhad is all about innovating and changing the way telecommunications are currently being used.
[1] Indonesia’s Booming Digital Financial Services Sector
[2] Indonesia Mobile Wallet and Payment Market Opportunities, Market Size and Forecast 2015-2021: Mobile Commerce, P2P transfer, Bill Payment, Retail Spend, Consumer Attitude & Behaviour, and Market Risk – Research and Markets
[3] Unlocking Indonesia’s Digital Opportunity https://www.mckinsey.com/indonesia/our-insights/unlocking-indonesias-digital-opportunity
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