Yojee extends deal to help service Malaysia’s second largest financial institution
Yojee will provide its logistics technology to Malaysia’s second largest financial institution via a commercial project between Aero Line Services and that institution, which is due to commence on 15 November 2018.
Digital logistics company Yojee (ASX: YOJ) is set to make a deeper foray into Asian markets after announcing an exclusive agreement that will help service Malaysia’s second largest financial institution.
Aero Line Services is the current market leader in express courier services in Malaysia, ensuring that documentation is transferred between banks in a timely and secure manner, and thereby felicitating the smooth running of financial services transactions in the country.
Meanwhile, Yojee is a tech company that utilises modern information technology as artificial intelligence (AI) and blockchain to create a regional collaborative freight network and best in class software-as-a-service (SaaS) product for businesses.
Collaboration between the two companies is expected to add further service features for Aero Line’s existing business while enlarging Yojee’s market footprint in Asia.
The deal serves as an upgrade to Yojee’s existing relationship with Aero Line with its managing director Ed Clarke declaring that the new deal “really underscores the flexibility of our product, and its ability to be applied in multiple verticals.”
As of tomorrow, Yojee will expand its fleet and delivery management contract while extending it to 3 years, in order to provide its logistics technology for a “digital transformation project” to be executed by Aero Line.
According to Yojee, its deal with Aero Line is being extended on “enhanced” commercial terms including minimum monthly fees, a fixed base fee, and now, including project fees set at 10% of total revenue.
Yojee says that future projects could include the interchange of mortgage documents between branches and legal firms, cheque collection, delivery to sorting centres, and the transfer of documents to secure storage units.
Moving through the gears
Under the terms of the deal, Yojee says the extended agreement will allow the company to expand its operations into financial services in Malaysia where there are typically 120 million cheques issued every year – all of which require logistics movements between senders, clearance house and branches.
It is estimated that the South East Asia banking industry is currently worth around US$354.6 billion (A$490 billion), according to Forbes. Many of the region’s economies are set to grow substantially in the coming years, and yet, they still rely on paper-based transactions that require rapid and time sensitive logistics.
Despite a gradual shift towards digitisation and computing that follows in the footsteps of Western economies, paper-based banking remains prominent across Asia, with consumer and business banking, payments, mortgages and many other areas still reliant on express movements of paper-based information.
Given the large requirement of paper-based services, Yojee wants to capitalise on this opportunity by extending its operational remit via Aero Line.
“Our group has built its business and reputation around creating and providing more optimised models that are greenfield, repeatable and scalable and we are now the clear leader in Malaysia,” said Aero Line Services Group managing director, Mr Zamri Bin Khamis.
“The Yojee Solution has proven to provide end-to-end transparency and efficiency and is loved by our customers. Personally, I have a great passion for technology and optimised processes and I see huge growth for Aero Line Services in this sector,” he added.
Today’s news helped Yojee’s shares to rise by 2.67% up to $0.077 per share in morning trade.