Hong Leong Islamic Bank Launches Malaysia’s First Restricted Digital Investment Account

• Launches Portfolio Investment Account Designed to Fit Client’s Digital Lifestyle
• Works with HLISAM to provide clients with the convenience of managing investments

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

In a statement, HLISB said it has worked with Hong Leong Islamic Asset Management (HLISAM) to provide its clients with the ability and affordability to invest in Sharia-compliant mutual funds on a digital platform, their allowing them to manage their investment at any time. , all over.

The Shariah principle for this product is Wakalah bi Al-Istithmar, an agency contract where the investor authorizes HLISB to manage clients’ investment on their behalf, the bank said. He added that the PIA-i was designed to adapt to the increasingly digital lifestyles of today’s customers.

The PIA-i is a streamlined investment product that allows clients to digitally diversify their personal investments across a mix of Sharia-compliant funds via 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 aware.

Jasani abdallah (photo, left), the Managing Director (CEO) of HLISB said the Covid-19 lockdown 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 accelerating transformation into an advanced digital economy, HLISB PIA-i’s offering 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 to more superior personal wealth management, ”he said.

Jasani added that the PIA-i encompasses inclusive banking services and accessible financial support by simplifying the investment process as almost anyone with basic financial knowledge can start investing easily.

“This is crucial as we look forward to rebuilding, recovering and increasing resilience beyond the pandemic,” he said.

Through PIA-i, client funds will be invested in three Sharia-compliant investments; Hong Leong Dana Al-Izdihar, a money market fund; Hong Leong Dana Maa’rof, a balanced fund; and Hong Leong Dana Makmur, an award-winning equity fund from Refinitiv Lipper.

Noor Aini Shaik Awab (photo, right), CEO of HLISAM Shared that with digital technologies providing greater accessibility for clients to invest as well as increased consumer awareness of sustainability issues, sharia-compliant asset management is expected to develop further in the coming years.

“We believe that by leveraging Sharia investment principles with digital technologies, we will be able to make Islamic asset management a leading investment offering in Malaysia. In addition, we are actively working to integrate environmental, social and governance considerations into our existing Sharia investment processes to meet the growing demand for ethical and sustainable investment products, ”said Noor Aini.

Prior to this, HLISB also released the Term-i Investment Account (TIA-i), a type of investment account based on a Sharia profit-sharing contract known as the Mudarabah Contract. It’s a simple investment for low risk takers offering potentially higher returns in three, six or twelve months.

Click here to learn more about the HLISB portfolio investment account.