Bank Rakyat unveils new scheme for private sector's employees

New Straits Times

18-06-2025

KUALA LUMPUR: Bank Kerjasama Rakyat Malaysia Bhd (Bank Rakyat) has launched Pembiayaan Peribadi-i Swasta (InstaCash), a new Shariah-compliant personal financing product targeted at private-sector employees.
The initiative forms part of the bank's wider strategy offering up to RM50,000 with approval granted within 24 hours.
Bank Rakyat chief retail banking officer Khairudin Abdul Rahman said InstaCash is designed to meet the day-to-day financial needs of private-sector workers.
"InstaCash comes with competitive profit rates and is structured to support financial wellness among underserved segments, in line with Islamic banking principles.
"In just two days since its soft launch, the product has already recorded RM1.3 million in financing disbursed, with 88 applications approved, underscoring the strong early demand," he said at a media engagement today.
Khairudin highlighted the application requires minimal documentation, such as salary slips and Employees Provident Fund (EPF) statements, chosen for their reliability and difficulty to forge.
"EPF data is harder to fake. If needed, customers can come in, provide a thumbprint and we can verify it instantly through online access. That is part of our risk mitigation strategy," he added.
To further streamline the application process, the bank has introduced a QR Brick scan feature, enabling users to initiate their InstaCash application instantly via mobile.
Once approved, no guarantor is needed, and customers can sign the financing contract on the same day. Disbursement follows the next morning in accordance with Bank Negara Malaysia's settlement regulations.
"This marks a major expansion for the cooperative bank, which currently counts 1.2 million out of Malaysia's 1.6 million civil servants as customers.
"With only about 400,000 civil servants left and many already with other banks, it's a saturated space. So it's time we look to the private sector," Khairudin added.
Bank Rakyat expects InstaCash to contribute RM130 million in financing by December this year, with an annual target of RM240 million starting from 2026.
"If performance and demand are strong, we're open to expanding the facility. But all changes will go through a review cycle for six months, or a year," Khairudin said.