AEON Credit Service Malaysia Bhd (5139), a consumer finance provider, plans to sell insurance policies through the Internet and its service centres around the country to boost fee-based income.
Managing director Naruhito Kuroda said it will sell general insurance from AIG and ACE, and life insurance from AIA to begin with.
The firm, controlled by Japanese consumer credit company AEON Credit Service Co Ltd, now earns mostly from easy-payment schemes that allow small consumers to buy products ranging from electrical appliances and furniture to motorcycles through instalments.
He said the firm also plans to introduce an Internet portal to allow customers apply for credit cards, easy payment, personal financing and insurance online with quicker processing, he said.
“Our current business model is done over the counter, and we want to create online shopping for our members,” Kuroda told reporters after a shareholders meeting in Kuala Lumpur yesterday.
It has 29 service centres around Malaysia currently.
AEON Credit yesterday reported 20.4 per cent growth in its first- quarter net profit to RM12.2 million. Revenue in the three months ended May 20 was 21.8 per cent higher at RM51.5 million.
Despite the economic downturn, its gross non-performing loan ratio improved to 1.85 per cent at the end of first quarter, compared with 2.05 per cent in the same period last year.
Kuroda said profit in the current financial year will probably still grow by a double-digit rate amid the weak economy, as cash conscious consumers will more likely opt for easy payment schemes when they shop.
Last year, its net profit expanded by 46 per cent to RM48.8 million on a 23.1 per cent higher revenue of RM186.9 million.