As part of its Value-Based Intermediation (VBI) offerings, Hong Leong Islamic Bank (HLISB) has launched a brand-new social finance initiative called “HLB Jumpstart – Micro Business” in order to support social development in the nation and advance financial inclusion.

The ultimate objective is to assist underprivileged micro-entrepreneurs, which can include gig economy employees, stay-at-home moms, and members of the thin-file, in improving their quality of life by providing them with a reliable source of income.

This programme will offer funding to people who may not have the resources or opportunities to find full-time employment as well as to prospective business owners who lack the credit history and opportunity to launch their own small businesses.

With this new social finance effort, HLISB will distribute cash through its two partners, MADCash and AlfieTech, and offer capital opportunities and zero-profit financing for business startups, as well as mentoring and training on how to operate the firm.

The goal of MADCash and AlfieTech is to promote financial inclusion in marginalised communities. By offering micro-funding and promoting digital financial inclusion, MADCash, a Shariah-compliant Fintech ecosystem builder, aims to enable women micro-entrepreneurs to increase their revenue and credit standing. AlfieTech, on the other hand, is a company that specialises in alternative data intelligence and provides impoverished areas with digital micro-financing.

Two different types of startup funding are available to participants for their enterprises. Participants in MADCash will receive RM4,000 in starting funding each, with a 12-month payback period and no profit margin. Participants will be given a mentor who will offer advice and discuss best practises for creating a successful and long-lasting business.

On the other hand, AlfieTech would provide up to RM1,500 each applicant as e-commerce credit to be used to operate the business by making orders on their own exclusive platform.

Jasani Abdullah, CEO of HLISB, said, “This is a part of the Bank’s efforts to expand its VBI offerings as a strategy to positively and sustainably impact underprivileged areas.

“We are heartened by the good effects we have witnessed in several AlfieTech and MADcash participants’ enterprises.

This is evidence that social finance, which gives marginalised populations more power by enhancing access to financial services and financial knowledge, is a successful way to close funding disparities in the nation. As a community bank that places a strong emphasis on “community investment,” we are thrilled to engage with AlfieTech and MADcash and provide them with the resources and assistance they need to continue their good work and reach more people. The CEO of HLISB, Jasani Abdullah, stated that the organization’s main goal is to inspire Malaysians to pursue their entrepreneurial ambitions and help them create a better future for their communities, families, and themselves. A new programme under HLB Jumpstart called “HLB Jumpstart – Micro Company” works directly with aspiring business owners and nonprofit organisations to provide them with chances to launch successful, long-lasting ventures.

The programme aims to elevate social finance as a crucial component of the Islamic finance ecosystem and is in line with Bank Negara Malaysia’s Financial Sector Blueprint 2022–2026.

https://www.bollyinside.com/news/hong-leong-islamic-introduces-a-brand-new-social-finance-initiative