Hong Leong Islamic Bank launches Malaysia’s first digital restricted investment account

• Introduces Portfolio Investment Account designed to suit customer’s digital lifestyle  
• Collaborates with HLISAM to offer customers convenience to manage investments

Hong Leong Islamic Bank (HLISB) 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).

In a statement, HLISB said it 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 them 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 authorises HLISB to manage the customers’ investment on their behalf, the bank said. It added that the PIA-i was designed 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 (pic, left), chief executive officer (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 accelerated transformation towards an advanced digital economy, the 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 said.

Jasani added that 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,” he said.

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.

Noor Aini Shaik Awab (pic, right), CEO 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 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 takers offering potential higher returns in three, six or twelve months.

Click here to find out more about the HLISB Portfolio Investment Account.