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Islamic insurance company Noor Takaful tied up with Abu Dhabi Global Market-based technology start-up Algofy.ai to roll out a digital savings plan.
UAE nationals and residents can purchase a savings plan made up of fund portfolios managed by advisory firm Morningstar and life takaful insurance through the platform, the insurance firm said in a statement on Tuesday.
"People have no time to actively manage their money or move money between funds," Fadi Jawdat Al-Hindi, chief executive and founder of Algofy.ai, told The National. "To help achieve this, Noor Takaful contracted Morningstar to invest in low, medium and high-risk model portfolios to achieve returns for consumers."
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The tech start-up designed the savings plan on its Bliss platform using artificial intelligence and machine learning.
Users can download the Bliss Savings Plan app on either iOS and Android. They can open a plan without a deposit and contribute amounts starting from Dh500 per month. All services on the platform can be accessed through a smartphone.
The saving plans offer low, medium and high returns, depending on the user’s risk appetite. All investments made through the plan will be in Shariah-compliant funds, Mr Al-Hindi said.
“We want people to have a long-term goal of systematic investment every month in order to reap the rewards later. They can benefit from the power of compounding interest,” he added.
A survey in November by Bayt.com and market research company YouGov found that 68 per cent of people in the UAE consider saving money as a top priority in 2021. The Covid-19 pandemic highlighted the importance of saving and having an emergency fund for short-term liquidity needs, according to the survey results.
Bliss savings plan users can change their risk strategy at any time through the app. The investments will be revised on a quarterly basis and customers will have 24/7 visibility on the performance of their portfolio, Mr Al-Hindi added.
Customers can maintain their Bliss Savings Plan after leaving the UAE by updating their app with a valid credit/debit card. If they wish to discontinue the saving plan after five years, no cancellation charges will apply. However, a fixed 5 per cent fee will be levied if the plan is cancelled within the first five years, the statement said.
Investors will have to pay a monthly fee of Dh25 as well as an allocation fee of 5 per cent to maintain the Bliss Savings Plan.
“Noor Takaful is committed to delivering protection and peace of mind to every UAE national and every resident,” said Rajesh Sethi, chief executive of Dar Al Takaful, the holding company of Noor Takaful. “Our partnership with Algofy.ai and the launch of Bliss Savings Plan on their platform is a testament to that commitment.”
The app also offers users retail rewards, which can be earned through referrals. Customers can also opt in for Algofy.ai’s “Burn & Earn” rewards programme, where they receive financial rewards for meeting daily fitness targets.
“Two big problems facing people are savings and health,” Mr Al-Hindi said. “On the health front, through our collaboration with Apple, we offer wellness cash rewards through exercise. We will bring a similar exercise rewards offering to the Android platform in the first quarter of 2021.”