Why RHB has joined Malaysian digital investor platform IAP

RHB Islamic Bank becomes the first non-shareholder sponsoring bank of the Investment Account Platform (IAP) set up by a consortium of Islamic banks with the support of Bank Negara Malaysia.

By AvantiKumar
Aug. 8, 2017


Photo - (From left) Dato' Adissadikin Ali, the Managing Director/ Chief Executive Officer of RHB Islamic;  and IAP Integrated's CEO, Mohamed Izam Mohamed Yusof, exchanging documents at the signing ceremony at RHB Islamic headquarters at Menara Yayasan Tun Razak.


  RHB Group's subsidiary, RHB Islamic Bank, has announced it has just signed an agreement with IAP Integrated to become the first non-shareholder sponsoring bank to join the Investment Account Platform (IAP), a joint industry-regulatory initiative in Malaysia.
The IAP consortium, which was set up initially by six Islamic banks with the support of Bank Negara Malaysia (National Bank of Malaysia), is a digital platform owned and operated by IAP Integrated.

IAP Integrated first in 2015 as an internet based multibank investment portal with the object of enabling efficient intermediation by Sponsoring Banks to match financing requirement of ventures with investment from retail and institutional investors via Investment Account (IA).

Dato' Adissadikin Ali, the managing director/ chief executive officer of RHB Islamic said: "RHB Islamic is pleased to be part of a strategic initiative of the Islamic finance industry to operationalise investment accounts. The partnership would bring tangible benefits to the IAP platform, as well as to our shareholders."

Adissadikin also said that with product development "well underway for this year, RHB Islamic will ready itself to offer Investment Account Business to customers from 2018 onwards."

Capital mobilisation

IAP helps to facilitate the matching and channelling of funds from investors to finance appropriate viable ventures and projects in a Shariah compliant capital mobilisation ecosystem.

IAP Integrated's chief executive officer Mohamed Izam Mohamed Yusof said that the market "could see more listing of ventures or projects on IAP in 2018, with the addition of RHB Islamic as a sponsoring bank."
He said the year 2016 saw three listed ventures on IAP:  Perak Transit, Kobimbing or Koperasi Kakitangan Kumpulan BIMB Holdings and ICT Zone Ventures with a total fund of RM20 million. So far, 2017 has seen two listings: SURIA (Specific Unrestricted Investment Account) Fund of RM60 million and the second one under a company called CMC Group that successfully raised RM12 million in early July 2017.

He added that IAP will progress steadily over the next few years with more listings of assets, new sponsoring banks joining, and also new deals in foreign currencies. 
IAP Integrated is a wholly-owned subsidiary of Raeed Holdings (Raeed) which is a consortium of six Islamic banks in Malaysia: Affin Islamic Bank Berhad; Bank Islam Malaysia Berhad; Bank Muamalat Malaysia Berhad; and Maybank Islamic Berhad. The consortium was later joined by Bank Kerjasama Rakyat Malaysia Berhad and Bank Simpanan Nasional.
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