Malaysia’s state-owned Permodalan Nasional (PNB), the country’s largest fund management company, has launched a mobile application that allows users to channel spare change into investments.
The micro investing app is called Raiz and was developed by Raiz Malaysia, a joint venture between PNB unit Jewel Digital Ventures and Raiz Invest Australia, a unit of Raiz Invest Limited.
PNB Chairman Zeti Aziz hailed the development of an “exciting idea” into an app.
“With the launch of the Raiz app and with more than 90% of Malaysians using a smartphone, it means that almost anyone can start investing in this way,” she says in a statement on July 25.
PNB President and Group Chief Executive Ahmad Zulqarnain Onn adds that the app is part of the company’s move to leverage digital technology to strengthen efficiencies and drive the company’s performance.
“For an institution with a vision of becoming a distinctive world-class investment house, we are excited to embrace cutting-edge tools and to be at the forefront of this technology adoption,” he says.
Raiz users link their debit cards to the app. Their purchases are rounded up to the nearest ringgit and the extra sum is channeled into unit trust funds in the Raiz portfolio.
App users with less than 6,000 ringgit (US$1,410.94) in their accounts pay a fee of 18 ringgit a year or 1.5 ringgit a month. Users with more than 6,000 ringgit are charged 0.3% of the account balance annually.
Users can also deposit money into their accounts, and can withdraw their savings and investments at any time at no charge.
PNB had over 300 billion ringgit of assets under management at the end of 2019.
Raiz Invest Limited, which is listed on the Australian Securities Exchange, had A$440 million ($314.15 million) of funds under management as of end-2019.