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Hong Leong Islamic Bank’s 1st Digital Restricted Investment Account

HLISB’s new Portfolio Investment Account enables customers to invest in a blend of Shariah-compliant funds with the convenience of digital platform.

by K. Vatsala Devi

Hong Leong Islamic Bank (“HLISB” or the “Bank”) has expanded its digital Islamic wealth management ecosystem with the introduction of the first-in-market digital restricted investment account, Portfolio Investment Account (“PIA-i”).

For the PIA-i, HLISB has collaborated with Hong Leong Islamic Asset Management (“HLISAM”) to offer to its customers the opportunity and accessibility to invest in Shariah- compliant unit trusts funds on a digital platform, allowing customers the convenience of managing their investment anytime, anywhere. The Shariah principle for this product is Wakalah bi Al-Istithmar, an agency contract where the investor authorizes HLISB to manage the customers’ investment on their behalf.

Hong Leong Bank Strives to Put Customers at the Fore

HLISB which was awarded the IRBA Excellence Award 2020 for Islamic Digital Banking by the prestigious global Islamic Retail Banking Awards for being a front-runner in innovating and shaping the Islamic digital retail banking landscape in Malaysia, has designed the PIA-i to suit the increasingly digital lifestyle of today’s customers. The PIA-i is a simplified investment product that allows customers to digitally diversify their personal investments across a blend of Shariah-compliant funds through HL Connect, the Bank’s digital banking platform, in place of a traditional investment experience. It is tailored to the financial needs of various customer segments including working adults, families with children and those who are socially and ethically conscious.

Jasani Abdullah, Chief Executive Officer of HLISB said, “The COVID-19 lock down has been a catalyst for retail investment in the country as Malaysians saw the urgency to invest in their future financial sustainability. With Malaysia’s accelerated transformation towards an advanced digital economy, the digital offering of HLISB PIA-i is another step towards the increased use of digital tools and technology in an ever-expanding digital first society. In addition, PIA-i also aims to serve and facilitate the journey towards a more superior personal wealth management.”

He continued, “We strive to provide simple and convenient banking services for the community at large with our Digital-at-the-Core strategy and personalized services to build simple and seamless banking products that add value to our customers’ lifestyles. These have been key in the innovation of HLISB’s Shariah-compliant digital Islamic banking products, services and experience, as well as growing the digital Islamic banking and wealth accumulation space.”

“The PIA-i embraces inclusive banking services and accessible financial support by simplifying the investment process to the extent that almost anyone with basic financial literacy can start investing with ease. This is crucial as we look forward to rebuilding, recovering and increasing resiliency beyond the pandemic,” added Jasani.

Through the PIA-i, customers’ funds will be invested into three Shariah-compliant investments; Hong Leong Dana Al-Izdihar, a money market fund; Hong Leong Dana Maa’rof, a balanced fund; and Hong Leong Dana Makmur, a Refinitiv Lipper award-winning equity fund.

hong leong bank

Hong Leong Islamic Bank Marries Traditional with Digital

Noor Aini Shaik Awab, Chief Executive Officer of HLISAM shared that with digital technologies providing greater accessibility for customers to invest as well as heightened consumer awareness on sustainability issues, Shariah-compliant asset management is expected to further develop in the next few years.

“We believe by leveraging Shariah investment principles with digital technologies, we will be able to make Islamic asset management a leading investment offering in Malaysia. Additionally, we are actively working on integrating environment, social and governance (“ESG”) considerations into our existing Shariah investment processes to meet the growing demand of ethical and sustainable investment products,” said Noor Aini.

Prior to this, HLISB also released the Term Investment Account-i (“TIA-i”), a type of Investment Account based on a profit sharing Shariah contract, which is known as Mudarabah contract. It is a simple investment for low-risk taker offering potential higher returns in 3, 6 or 12 months.

HLISB, a wholly-owned subsidiary of Hong Leong Bank (“HLB”), shares its digital platform with HLB which recently won Best Digital Bank 2021 by Asiamoney and Global Retail Banking Innovation Awards 2021 by the Digital Banker for its innovative products and services which offers convenience and a simplified, fast and seamless experience for customers.

Find out more here.

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