Raiz Invest exits Malaysia

Raiz Invest, one of the new upcoming micro-investing platform, has announced its exit from Malaysia after four years of operation. As a user of Raiz in Malaysia, I wanted to share my thoughts on this development and what it means for us as investors. Let’s explore the reasons behind Raiz’s decision and how this impacts the financial landscape in Malaysia.

First off, let’s talk about why Raiz is leaving Malaysia. The company, which was operating here as a joint venture with Jewel Digital Venture, a subsidiary of Permodalan Nasional Berhad (PNB), has decided to focus on its core business in Australia. According to Raiz, the decision is strategic, aiming for greater growth and profitability in a more established market. While it’s disappointing to see them go, it’s understandable that businesses need to prioritize their strengths and focus on areas where they can thrive.

In Malaysia, Raiz faced a tough financial landscape. The competition from well-established players with extensive branch networks and robust investment products was intense. Moreover, the micro-investing market here is still developing and might not have reached the critical mass necessary for Raiz’s sustained growth. As a user, I appreciated Raiz’s user-friendly approach, but the challenges they faced highlight the difficulties new platforms encounter in a competitive market like Malaysia.

• Versa Cash: Offers an indicative interest rate of 3.77% per annum.
• Versa Cash-i: Provides an interest rate of 3.33% per annum. Both options offer daily compounding interest and monthly payouts
• Wahed Invest: doesn’t explicitly advertise a fixed savings rate but offers a range of diversified investment portfolios with different risk levels
• StashAway: A robo adviser platform that offers indicative rate of 3.6% onwards.
• ASNB: Amanah Saham National Berhad, a government backed investment program, yield differs from year to year though the latest 2023 financial year they announced a 4.25% dividend.

Raiz has assured users that they are committed to a smooth transition. They’ve allocated RM3 million to ensure an orderly and timely wind-down process. This means we, as users, have been given ample time to withdraw our investments and transition to other platforms. It’s a relief to know that Raiz is handling this responsibly, allowing us to secure our assets without any hiccups.

For users, Raiz’s departure is definitely a setback. However, it also opens up opportunities to explore other micro-investing platforms available in Malaysia. There are several local players offering similar services with low minimum investment requirements. This could be a chance to evaluate what else is out there, compare features, and maybe even find platforms that better suit our individual needs.

Raiz’s exit from Malaysia isn’t just about pulling back; it’s also about focusing resources where they can be most effective. For example in Australia, Raiz is looking to expand and strengthen its operations in a market that’s already more mature and lucrative. For us here in Malaysia, the departure of Raiz might encourage local platforms to step up their game, offering new and innovative solutions to capture the growing interest in micro-investing.

In conclusion, while it’s sad to see Raiz go, their exit highlights the evolving nature of the fintech landscape. As users, we have the responsibility and opportunity to explore other platforms and continue our investment journeys. I’m optimistic about what the future holds for micro-investing in Malaysia. Thanks for tuning in! If you found this video helpful, don’t forget to like, subscribe, and hit the notification bell for more updates on the latest in fintech. Until next time, happy investing!