KUALA LUMPUR (Feb 6): Bank Islam Malaysia Bhd (KL:BIMB) said on Thursday it has signed an agreement to set up a joint venture with a local firm to sell finance-related digital technology products and services.

The total investment is RM9 million cash, of which Bank Islam will contribute 40% of the capital and 60% will be contributed by partner Reldyn Tech Sdn Bhd, the company said in an exchange filing. The joint venture Finodyn Sdn Bhd will operate as a technology finance entity, it said.

Finodyn will adopt a business-to-business model, focusing on delivering financial and banking platforms that offer Shariah-compliant financial solutions, consulting, maintenance, and support services to diverse businesses and organisations, Bank Islam said.

The joint venture will be executed in three strategic phases, the company said. The initial phase, spanning up to two years, will focus on product and infrastructure development, followed by an accelerated sales phase to drive market penetration.

“We are optimistic this partnership will accelerate the expansion and advancement of the Islamic digital finance sphere while delivering long-term Shariah-compliant solutions that empower the market,” Bank Islam group chief digital officer Noor Farilla Abdullah said.

The partnership will also allow Bank Islam to offer Islamic banking-as-a-service.

“By combining our solutions with Bank Islam’s expertise, we are focused on delivering superior customer experiences, driving digital transformation, and creating a more agile, secure, and customer-centric financial services landscape,” Reldyn chief executive officer Jayaprasad Rao Ethamukkala said.

Bank Islam’s shares were 0.4% lower at RM2.46 at noon trading break ahead of the joint venture announcement. At the last price, the company has a market capitalisation of RM5.58 billion.