This article first appeared in The Edge Financial Daily on April 21, 2017 - April 27, 2017

KUALA LUMPUR: AEON Credit Service (M) Bhd has formed a partnership with HelloGold Sdn Bhd for the non-banker lender to offer financing for the latter’s customers.

HelloGold is a syariah-compliant mobile-based digital platform which consumers can use to buy investment grade gold at lower than current market prices. The platform focuses on consumers from the middle-income group.

The duo signed a collaboration agreement yesterday. The partnership is expected to help expand AEON Credit’s customer base.

Under the partnership, AEON Credit will provide financing to interested HelloGold customers at a competitive profit rate of 8% per annum. Customers will be eligible for personal financing of up to RM10,000, with a minimum of RM1,500 purchase in gold on the platform.

“Fintech (Financial technology) has stimulated new business models and opportunities as sources of growth. Hence, when HelloGold approached us with this pioneering opportunity, we saw it as a platform to add value and enhance customer experience,” said AEON Credit managing director Kenji Fujita at the signing ceremony yesterday.

Kenji added that he is confident AEON Credit would be able to gain a significant number of customers from the partnership. “We did not set a target for our customer base gain from this partnership, but we hope to leverage on the users of HelloGold,” he said.

According to HelloGold chief executive officer Robin Lee, the company’s target is to achieve half a million users in the next five years.

“HelloGold’s product is designed so that everyone can buy gold in a safe, accessible and affordable way. It enables our customers to start saving in gold with just RM1,” said Lee.

Access to credit is the main challenge that HelloGold intends to resolve. “We are excited that this will help the 75% of adult Malaysians who still do not have access to any financing products,” said Lee.