Singapore FinTech company InfoCorp Technologies is working with Myanma Insurance, an arm of the Ministry of Planning and Finance, and Myanmar holding company RGK+Z&A Group, to carry out a joint pilot project to provide tamper proof livestock identification.
The trio are collaborating with the Livestock Breeding and Veterinary Department of the Ministry of Agriculture, Livestock and Irrigation, reports Myanmar Times.
The work involves identification and tagging of cows and buffalos for the purposes of building an official livestock registry, which will in turn, enable livestock to be insured and to be used as collateral in the loan application process.
“This joint partnership will create a financial ecosystem that solves the risk of livestock insurance and potentially transforms the market into a force for development by enabling the use of livestock as collaterals,” said Mr Roy Lai, Founder and CEO of InfoCorp Technologies.
The project is to be carried out in selected areas of Myanmar, including Yangon, Mandalay and Nay Pyi Taw over three months, after which Myanma Insurance will also be able to specify the premium rate of insurance for each cow and buffalo.
InfoCorp Technologies will implement the service through Sentinel Chain, which it claims is the world’s first platform to accept the use of livestock as collateral. Through the platform, InfoCorp also aims to bring ordinary financial services such as banking, loans and insurance to less developed parts of the country to resolve challenges of small farmers in running their businesses without banking facilities.
Dr Sandar Oo, Managing Director of Myanma Insurance, agreed that the move will contribute to financial inclusion in Myanmar by leveraging technology.
Mr Zeya Mon, CEO of RGK+Z&A Group which has business interests including power, medical systems and electronics, said, "Our government has prioritised reform of the agriculture and rural sector. This study marks a significant effort to support and generate important data relating to livestock and livestock owners.”