Bank Muamalat targets RM100m in new AUM

The bank is collaborating with Wahed Invest to offer innovative solutions, especially on robo-advisory


BANK Muamalat Malaysia Bhd is aiming RM100 million in new assets under management (AUM) by 2020, following its collaboration with US-based Shariah-compliant digital investment platform, Wahed Inc.

Bank Muamalat head of consumer banking division Zury Rahimee Zainal Abiden (picture) said the collaboration is the first step in the bank’s journey into digitalisation, offering innovative solutions for its customers, especially on robo-advisory.

“This allows our customers to invest more cheaply and efficiently. It is done digitally with a reasonable sales charge and can be done anywhere.

“We have to take some risk assessments and get the relevant approval. Hopefully in the first quarter of 2020 (1Q20), we will launch this product with Wahed Invest,” he said in a press conference after the signing of the memorandum of understanding (MoU) between Bank Muamalat and Wahed Invest Malaysia yesterday.

Under the collaboration, the bank will promote Wahed Invest’s products and services on its distribution channels to strengthen its outreach and marketing as a new brand in Malaysia.

Malaysia’s Islamic digital economy is expected to contribute about 20% to the country’s GDP next year.

As Wahed Invest is present in over 130 countries, the collaboration will provide the bank with a competitive edge in achieving the perfect balance in customer relationship management and wealth planning.

“Furthermore, its technological advancement in providing automated rebalancing capabilities and asset allocation based on the client’s risk profile and market movements, allows the bank to be more creative in its delivery method for advisory services and enables our wealth advisors to engage in deeper conversations with customers,” Zury Rahimee said.

Meanwhile, Wahed Invest Asia Pacific regional head Syakir Hashim said Malaysia is the first country outside the US and the UK for the group to expand its brand.

“This shows our commitment to growing the Islamic financial technology space in South-East Asia with Malaysia as an Asia-Pacific hub.

“Many people don’t know about us and they take time to build trust with Wahed Invest, so by working with a reputable and established bank like Bank Muamalat, it strengthens our value proposition,” Syakir said.

When asked about the group’s plans to raise its visibility, Syakir said the group is working on online and offline collaborative campaigns with Bank Muamalat.

“We also foresee certain collaborations at the offline level, maybe at the branch level where clients can go and ask for more details about Wahed because there are certain groups in the community that are not on social media and prefer face-to-face interaction,” he said.

Being the first Securities Commission Malaysia (SC) — licensed Islamic digital investment manager, the group launched its digital platform in Malaysia on Oct 29 this year.

Wahed Invest provides a simple, accessible and smart investment solution to Malaysians via its Wahed Invest app which can be downloaded via Google Play or Apple App Store with a minimum investment of RM100.

To date, Wahed Invest has received an overwhelming response from customers and has served a few thousand clients in the last three weeks.