RHB Islamic joins IAP as nonshareholder member

By  SHAHEERA AZNAM SHAH/Bloomberg pic

RHB Islamic Bank Bhd has joined the Shariah-compliant investment platform, Investment Account Platform (IAP), as a non-shareholder member.

A signing ceremony of the agreement between RHB Islamic and IAP’s operator, IAP Integrated Sdn Bhd, was held in Kuala Lumpur yesterday.

The agreement, which includes RHB Islamic as the “sponsoring bank”, marks the bank’s role of providing financial services to the investment platform.

“RHB Islamic is honoured to be part of a strategic initiative of the Islamic finance industry to operationalise investment accounts. The partnership will bring tangible benefits to the IAP, as well as to our shareholders,” said RHB Islamic CEO and MD Datuk Adissadikin Ali in a statement.

He said RHB Islamic will be able to offer investment account (IA) business to the bank’s customers starting from 2018 onwards as the product development is on its way.

IA is a new non-capital guaranteed product offering issued by Islamic banks.

Launched in February, IAP is owned by IAP Integrated, a web-based multibank investment portal started in 2015.

The first bank-intermediated financial technology (fintech) platform, IAP allows Islamic finance investors to raise funds in a viable venture, especially for small and medium enterprises (SMEs).

IAP Integrated CEO Mohamed Izam Mohamed Yusof said with RHB Islamic in the picture as a sponsoring bank, the market can expect more listing ventures or projects on IAP next year.

Through the platform, IAP will facilitate investors’ direct investment process and match the ventures’ financing requirement with the right investment.

Last year, three companies were listed on IAP, namely Perak Transit Bhd, Koperasi Kakitangan Kumpulan BIMB Holdings Bhd and ICT Zone Ventures Bhd with a total fund size of RM20 million.

In 2017, two more were listed, the RM60 million Specific Unrestricted Investment Account fund and CMC Group Sdn Bhd’s RM12 million fund raised in July 2017.

The credit rating for IAP’s listed ventures or projects is managed by RAM Holdings Bhd, through RAM Solution Sdn Bhd, which provides credit assessment and rating to each venture prior to its listing on the platform.