Circulating Wealth

Maybank Group announced the launch of its IWM regional offshore hub in Singapore on 20 November last year. It is the first bank in Singapore to offer end-to-end Islamic wealth solutions for customers.

The hub’s services are distributed across five pillars of Islamic Wealth Management: Wealth Creation, Accumulation, Preservation, Purification and Distribution, creating a closed-circuit effect.

With this, funds can be circulated to facilitate better wealth management.

Holistic Wealth Solutions through the five Pillars of IWM

The first pillar is Wealth Creation, where consumers generate wealth through savings and businesses derived from their income.

The second pillar, Wealth Accumulation, enhances consumers’ wealth by generating returns via Shariah-Compliant Investments and Instruments such as Islamic equities, sukuk (Islamic bonds) as well as Islamic funds. For example, Maybank Asset Management Group has a collaboration with Italian money manager Azimut Holding SpA for its Islamic funds to cater to the demand for hard currency sukuk products in Malaysia and Singapore.

The third Pillar, Wealth Preservation, aims to safeguard one’s wealth through takaful – also known as Islamic insurance. Maybank Malaysia offers Shariah-compliant schemes covering house ownership to accident coverage.

The principle of Zakat – giving alms to the poor and needy – is key to Islamic practices and obligatory upon every Muslim who fulfils the requirements to pay Zakat. This embodies the fourth pillar of IWM solutions, which is known as Wealth Purification. With Maybank Singapore, one can make Zakat payments fuss-free via Paynow through the Maybank2u SG (Lite) application.

The final pillar of IWM, Wealth Distribution, covers the distribution of wealth for future generations. This is aligned with Maybank’s emphasis on Wealth Distribution or legacy planning, through solutions such as will planning (wasiat), gift giving (hibah) and estate administration.

For example, Maybank Singapore has a partnership with iWasiat, the first online will generator compliant with Shariah law in Singapore.

Customers can apply for the service via the Maybank website. The platform, iWasiat will then assist customers in the planning and arrangement of their will and inheritance in compliance with faraid, also known as Islamic inheritance law.

Done online, the process is fuss-free, allowing customers to receive an electronic will in the comfort of their homes.

Powered by tech for the next generation

The bank is also powering ahead with the digitalisation of its IWM services through the use of new technologies such as AI and big data.

Just last year, Maybank Asset Management Sdn Bhd partnered global investment advisory and technology company Arabesque AI to launch an AI-powered Hyper-Customised Discretionary Portfolio Mandate (DPM).

The service can craft asset management portfolios for customers according to their personal preferences, demonstrating Maybank’s uptake of cutting-edge technology to improve its IWM services.