By LYDIA NATHAN / Pic by ISMAIL CHE RUS

Bank Kerjasama Rakyat Malaysia Bhd (Bank Rakyat) aims to achieve a 30% growth for safekeeping services and cash financing through the “Kempen Emas 1 Kilo”.

The cooperative lender has already achieved a 20% increase in account openings via the campaign that started early this month.

The campaign is a partnership between Bank Rakyat and its pawnbroking division Ar-Rahnu. Bank Rakyat and Ar-Rahnu hope to grow the approximately 600,000 existing customers with the new campaign, which is set to run for one year.

Bank Rakyat senior VP of marketing and communications Nizam Sani said one of the campaign’s main goals was to encourage subscribers to utilise the 187 Ar-Rahnu branches across Malaysia.

“We want to change public perception that pawnshops are only for those who have financial problems. It can also be a place for you to keep your gold accessories and avoid riba (usury),” he said to reporters in Kuala Lumpur yesterday.

Through this campaign, subscribers can deposit their gold for a cash back payout or use the gold as collateral for cash assistance.

“Subscribers can place the gold for safekeeping. We will give them 65 sen for every RM100 worth of gold that they bring in. Furthermore, all the gold will be insured by Syarikat Takaful Malaysia Bhd,” he said.

The gold placed at Ar-Rahnu will be calculated and 70% of the value can be turned into cash financing.

“It is one of the easiest financing alternatives for SME (small and medium enterprise) entrepreneurs as a startup capital,” he said.

Bank Rakyat is also targeting to grow its overall related financing and deposit business by 30% via the campaign in the next five months.

Meanwhile, Ar-Rahnu business VP Dr Mokhrazinim Mokhtar said as the price of gold rises, more subscribers will benefit from the product. Gold was quoted at RM176 per gramme yesterday.

“In this current economy, we want to encourage people not to sell their gold, but rather to invest with us and get a return. The outside market will give you a lower value too if you sell.

“Some people may use the monthly returns to buy more gold and the outcome in a few years can be profitable,” Mokhrazinim said.