Press Statement By Securemetric
Securemetric Invests In Innov8tif With A Positive Outlook Of E-KYC Growth In Post-Covid 19 Malaysia
We, the Board of Directors at Securemetric Berhad, would like to make an exciting announcement. On the 8th of September 2021, marks as a historical date in which Securemetric will invest RM8 million into Innov8tif Solutions Sdn Bhd.
The RM8 million investment consists of the purchasing of 50,000 ordinary shares, equivalent to 10% of the total issued shares, as well as the subscription of 62,500 ordinary shares that is equivalent to 10% of total enlarged shares of Innov8tif Solutions Sdn Bhd.
Innov8tif Solutions specializes in Digital ID assurance (e-KYC), Digital low-code process automation and Mobile biometric authentication. These services are fast becoming essentials in the growing digital world that require much tighter security than before.
Hence, Innov8tif’s business outlook remains positive especially in the area of Digital ID Assurance (e-KYC) as it experienced a sharp increase in demand due to the unprecedented pandemic that hit the world. Covid-19 and the repetitive lockdowns pushed businesses to prioritized digitization of their customers’ on-boarding process.
With the risk of financial loss of fine by the authorities due to on-boarding fraudulent IDs, businesses are finding it a need to include e-KYC as part of their digital customer acquisition process. The 2021 Identity Fraud Study released by Javelin Strategy & Research, revealed that the total combined fraud losses climbed to $56 billion in 2020, and are expected to climb further in years to come.
Innov8tif foresees this growing trend even in the post-Covid market as consumers and businesses would prefer more contact-less options, as well as digital engagement with their customers and Innov8tif, is well prepared with solutions to cater to this growing demands.
Innov8tif will also continue to grow its market share in the ASEAN countries with a key focus in Indonesia, Cambodia, Thailand and the Philippines in tandem with its goal to be the leading regional ID Assurance solutions provider. Currently, it serves a broad spectrum of customers particularly in the telco sector in Malaysia.
The telcos, since 2016, has benefitted from Innov8tif’s digital ID verification services which enables a 24/7 real-time customer onboarding channel. During the Movement Control Order in 2020, Innov8tif witnessed its telco customers experiencing an average of 279% growth from online self-service prepaid SIM registration from February 2020 till April 2020. This opens up doors of opportunities to provide a broader range of solutions to meet the demands of its customers.
With the release of e-KYC policy and guidelines by Bank Negara Malaysia as well as Securities Commission Malaysia, it is believed that the e-KYC market will expand exponentially where Innov8tif will stand to gain the most.
The investment by Securemetric is expected to create a dynamic synergy between the two companies whereby Securemetric will be able to cross-sell its products and solutions by leveraging Innov8tif’s strong local clientele base in Malaysia. On another hand, the investment also provides Securemetric immediate access to Innov8tif’s e-KYC technology that will be integrated into Securemetrics’ digital signing solution which will be offered to their existing and future customers. This enables the company to leverage Innov8tif’s expertise and technology instead of developing the technology in-house.
Upon the completion of the investment’s transactions, Innov8tif will be a 20%-owned associate company of Securemetric. The investment is expected to enhance Securemetric’s future earnings as Innov8tif recorded profit after tax for the past three audited financial years.
BOARD OF DIRECTORS