Bank Islam to set up RM9 million JV with Reldyn Tech to offer Shariah-compliant FinTech solutions and Islamic Banking-as-a-Service
Bank Islam Malaysia Bhd has embarked on a significant strategic move to expand its presence in the Islamic digital finance space by forming a new joint venture with a local technology partner. The deal centers on establishing Finodyn Sdn Bhd, a technology finance entity designed to deliver finance-related digital technology products and services through a business-to-business model. The joint venture represents a RM9 million cash investment, with Bank Islam contributing 40% of the capital and its partner, Reldyn Tech Sdn Bhd, contributing the remaining 60%. This collaboration aims to accelerate the development of Shariah-compliant financial platforms, consulting, maintenance, and support services tailored for a broad base of businesses and organizations across various sectors. The venture signals a deliberate push to modernize Islamic financial services through digital infrastructure, harnessing technology to meet evolving customer needs while aligning with Shariah principles.
JV Formation and Capital Structure
The establishment of Finodyn Sdn Bhd marks a strategic expansion of Bank Islam’s digital finance capabilities by creating a dedicated technology finance entity designed to serve a diverse client ecosystem. The total investment of RM9 million underscores a substantive commitment by both parties to build robust, scalable digital platforms that can be deployed across multiple industries. Bank Islam’s 40% stake translates into a meaningful minority investment that shares risk while enabling the bank to retain substantial influence over strategic direction and governance. Reldyn Tech Sdn Bhd’s 60% stake positions the technology partner as the dominant shareholder, reflecting its role as the primary driver of product development, technical architecture, and ongoing innovation. This ownership structure creates a balanced partnership that leverages Bank Islam’s sector expertise and customer reach alongside Reldyn’s technical prowess and market experience.
Finodyn will operate as a technology finance entity with a clear business-to-business orientation. Its core mandate is to deliver a suite of financial and banking platforms that enable clients to adopt, integrate, and manage advanced digital solutions. The offerings are designed to be Shariah-compliant, ensuring that religious principles govern product development, pricing, and risk management. In addition to platform delivery, the venture will provide consulting services to guide clients through digital transformation journeys, as well as ongoing maintenance and support to ensure sustained performance, security, and compliance. This combination of platforms, advisory services, and lifecycle support is intended to deliver a holistic value proposition for a wide range of companies and organizations seeking to modernize their financial operations in a manner consistent with Islamic principles.
The investment and ownership structure reflect a deliberate calibration of risk and return. Bank Islam’s participation aligns its digital ambitions with its strategic objective to broaden Islamic finance adoption through technology-enabled solutions. Reldyn Tech Sdn Bhd’s heavier ownership stake emphasizes its role as the principal technology architect, responsible for product roadmaps, system integration, and scalable deployment. The joint venture is expected to operate with governance mechanisms designed to ensure clear decision-making, robust risk management, and strict adherence to Shariah guidelines. This governance framework should facilitate rapid iteration, secure software development practices, and transparent reporting to stakeholders, including regulators and customers seeking assurance on compliance and reliability.
The placement of Finodyn within the broader Bank Islam ecosystem signals a structured path toward expanding the bank’s influence in the Islamic digital economy. By combining capital, technical expertise, and a shared vision for customer-centric, Shariah-compliant digital finance solutions, the JV seeks to accelerate time-to-market for innovative products while maintaining rigorous standards for security, privacy, and regulatory compliance. The expected outcomes include enhanced product offerings, faster deployment cycles, improved customer experiences, and the establishment of a scalable platform capable of supporting a broad client base across industries—from manufacturing and services to government-friendly frameworks and beyond.
Business Model, Product Focus, and Phased Execution
Finodyn Sdn Bhd has articulated a clear business-to-business model that centers on delivering comprehensive financial and banking platforms. The focus is on creating solutions that enable clients to access, deploy, and manage digital financial tools that are aligned with Shariah principles. The platforms are designed to support core banking functions, digital payments, asset management, compliance reporting, and automation features that streamline back-office operations. In addition to platform delivery, Finodyn will offer consulting services to help clients navigate regulatory requirements, compliance frameworks, and the best practices for digital transformation. Ongoing maintenance and support services will be provided to ensure platform reliability, security, and continuous optimization, which is vital in a market where cyber risk and system downtime can undermine customer trust and operational efficiency.
A phased execution plan guides the rollout of Finodyn’s capabilities and market reach. The initial phase is anticipated to span up to two years, with a concentrated emphasis on product development and infrastructure build-out. During this period, the JV will invest in core technology development, cloud infrastructure, cybersecurity measures, data governance, and the development of modular, reusable components that can accelerate subsequent deployment cycles. The objective of this phase is to establish a solid, scalable foundation that can support a wide range of financial products and services while ensuring alignment with Shariah compliance standards and robust risk controls.
Following the initial development phase, Finodyn will move into an accelerated sales phase designed to enhance market penetration. In this stage, the focus shifts toward customer acquisition, deployment of pilot projects, and scale-up of implementation capabilities across targeted sectors. The acceleration is expected to be driven by a combination of direct sales efforts, channel partnerships, and collaboration with Bank Islam’s existing client base. The transition from development to commercialization will require careful project management, performance tracking, and iterative enhancements based on customer feedback and regulatory developments. The objective is to achieve rapid adoption, broaden market coverage, and demonstrate tangible value through measurable improvements in efficiency, compliance, and user experiences.
The strategic emphasis on Shariah-compliant digital finance solutions is central to Finodyn’s business model. By embedding Shariah principles into product design, pricing, and risk management, the JV aims to meet the expectations of clients who seek ethical, compliant financial technologies. The integration of Shariah-compliant features into platforms is intended not only to reassure customers but also to differentiate Finodyn in a competitive fintech landscape where religious considerations are increasingly important to business buyers and financial institutions alike. The combination of product excellence, rigorous compliance, and strong service capabilities will be critical drivers of growth and customer loyalty in the long run.
The joint venture’s capability to offer Islamic Banking-as-a-Service (IBaaS) is anticipated to be a key differentiator. By providing a modular, cloud-based IBaaS solution, Finodyn could enable banks and allied financial institutions to offer Shariah-compliant digital banking services without incurring the full burden of building a complete in-house platform. This approach aligns with a broader industry trend toward platform-as-a-service models that reduce time-to-market, lower upfront capital expenditure, and enable rapid experimentation with new features and business models. For Bank Islam, the synergy lies in expanding its reach through technology-enabled channels while maintaining control over the Shariah framework and customer experience. For clients, the value proposition includes faster deployment, better risk management, and access to a compliant, modern digital banking ecosystem.
Reldyn Tech Sdn Bhd’s leadership has underscored the collaborative nature of the venture, emphasizing that the combined strengths of the two companies will drive superior customer experiences and a more agile, secure, and customer-centric financial services landscape. The integration of Reldyn’s technical capabilities with Bank Islam’s industry knowledge is expected to create a powerful platform for digital transformation, enabling clients to navigate complex regulatory environments, optimize operations, and deliver innovative financial solutions to end-users. The leadership also highlighted the importance of maintaining security and reliability at every touchpoint, given the heightened emphasis on data protection, fraud prevention, and system resilience in modern financial ecosystems.
From an investor relations perspective, the venture’s performance will be closely watched by market participants. Bank Islam’s stock traded at RM2.46 at noon on the day of the announcement, reflecting a 0.4% decline in sentiment around the news. The company’s market capitalization stood at RM5.58 billion at that time, providing a benchmark against which market participants will gauge the JV’s potential contribution to earnings, long-term growth, and strategic positioning in the Islamic finance and fintech landscape. While stock movements can be influenced by a wide array of factors beyond the JV, the strategic significance of Finodyn and its potential to unlock new revenue streams through digital platforms positions the partnership as a meaningful long-term catalyst for the bank’s digital agenda.
The Finodyn venture also aligns with broader industry trends toward digitization in Islamic finance. As financial institutions increasingly embrace digital channels, there is a growing demand for Shariah-compliant solutions that can be deployed quickly, scaled efficiently, and integrated with other enterprise systems. Finodyn’s emphasis on consulting, maintenance, and support services complements its platform offerings by ensuring clients receive end-to-end assistance as they adopt and optimize digital solutions. The combination of technology, advisory services, and ongoing support is designed to deliver sustainable value for customers and partners, while enabling Bank Islam to deepen its digital footprint and expand its product suite in a regulated, compliant manner.
Bank Islam’s move to establish Finodyn embodies a strategic mission to accelerate the Islamic digital finance ecosystem. By combining capital with technical expertise and a clear commercial plan, the bank seeks to unlock new opportunities for growth in a rapidly evolving fintech landscape. The venture’s success will largely depend on effective governance, rigorous project management, and the ability to translate strategic intent into practical deployments that deliver measurable outcomes for clients and stakeholders. If successful, Finodyn could become a reference point for how Islamic banks partner with technology firms to deliver compliant digital finance solutions that meet the needs of modern businesses.
Leadership, Vision, and Operational Excellence
The executive leadership from both Bank Islam and Reldyn emphasizes a shared commitment to delivering superior customer experiences through digital transformation. Noor Farilla Abdullah, Bank Islam’s group chief digital officer, framed the partnership as a catalyst for accelerating the expansion and advancement of the Islamic digital finance space. She highlighted the potential to deliver long-term Shariah-compliant solutions that empower the market, reinforcing the bank’s strategic objective to blend faith-based considerations with advanced technology to meet customer needs. The emphasis on Shariah-aligned innovation reinforces the bank’s positioning as a leading provider of ethical, compliant digital financial services.
From the technology partner’s side, Jayaprasad Rao Ethamukkala, the CEO of Reldyn Tech Sdn Bhd, stressed the importance of combining solutions with the bank’s domain expertise to drive better customer experiences. He spoke about the goal of delivering a more agile, secure, and customer-centric financial services landscape. The collaboration is intended to harness Reldyn’s technical capability to build robust platforms while leveraging Bank Islam’s customer relationships and regulatory experience to ensure successful deployment and adoption. This synergy is expected to accelerate digital transformation in a way that benefits end-users, businesses, and the broader Islamic finance ecosystem.
Market Context and Future Prospects
The Finodyn venture arrives at a time when Islamic finance institutions are increasingly prioritizing digital solutions to improve efficiency, reduce costs, and enhance compliance. The move aligns with market expectations for banks to innovate responsibly, providing scalable, secure digital platforms that can support Shariah-compliant financial products and services. The three-phased approach to product development and market penetration is designed to manage risk while building a foundation for sustainable growth. The initial focus on infrastructure and product development will pave the way for subsequent commercialization, allowing the bank and its partner to establish a strong market presence before intensifying sales efforts.
In terms of risk management, the collaboration emphasizes governance, regulatory alignment, and cybersecurity—critical areas for the financial services sector. Finodyn’s success will depend on its ability to maintain robust controls, ensure data integrity, protect customer privacy, and sustain uninterrupted service delivery. The venture’s performance metrics will likely include time-to-market for new features, platform uptime, compliance adherence, customer acquisition rates, churn reduction, and the expansion of Shariah-compliant product lines. As the Islamic digital finance sector mature, Finodyn could become a hub for collaborative innovation, offering modular, interoperable solutions that other financial institutions may adopt or customize for their own digital journeys.
Strategic Implications for Islamic Digital Finance and Banking-as-a-Service
The Finodyn JV signals a broader strategic trajectory for Islamic finance players seeking to harness technology to deliver compliant, scalable financial solutions. By focusing on Shariah-compliant platforms, the venture demonstrates how religious principles can be harmoniously integrated with cutting-edge fintech to create value for clients and stakeholders. This approach aligns with the demand for ethical financial products that meet rigorous standards for risk management, transparency, and governance. The ability to offer consulting, maintenance, and support in addition to platform delivery provides an end-to-end value proposition that can reduce client friction and accelerate adoption.
The potential for Islamic Banking-as-a-Service (IBaaS) emerges as a notable implication of Finodyn’s business model. IBaaS can enable partner banks and financial institutions to provide digital Islamic banking services without building complete in-house platforms from scratch. This model supports faster time-to-market, cost efficiency, and the ability to scale quickly to meet evolving demand. For Bank Islam, the strategic advantage lies in expanding its digital ecosystem through a trusted framework, leveraging Reldyn’s technology expertise to deliver reliable, compliant services to a wider customer base. For clients, IBaaS can translate into access to modern, secure banking capabilities with robust compliance controls, enabling them to compete more effectively in a digital economy.
Shariah compliance remains a central pillar of the Finodyn strategy. The joint venture’s platforms are designed to be compatible with Islamic principles, addressing issues such as permissible contract types, interest-free financing concepts, risk-sharing arrangements, and transparent profit-and-loss sharing mechanisms where applicable. This emphasis is critical in attracting institutions and organizations that require strict adherence to Shariah guidelines, especially in sectors where compliance is essential but access to advanced digital tools is limited. As digital transformation accelerates, the need for reliable, compliant solutions grows, and Finodyn aims to fill this gap by delivering technology-driven capabilities that align with ethical standards. The resulting impact could be broader adoption of Islamic digital finance across industries, with a smoother onboarding process for institutions seeking to modernize operations while maintaining religious and regulatory compliance.
From a market dynamics perspective, the Finodyn venture could influence competitive behavior among peers in the Malaysian and regional Islamic finance landscape. The joint venture’s success could prompt other banks and fintech players to pursue similar collaborations that combine capital, regulatory know-how, and technical expertise to deliver scalable digital solutions. The increased emphasis on data security, customer-centric design, and seamless integration with existing banking systems could raise the bar for service quality across the sector. In the longer term, Finodyn’s approach might inspire a broader ecosystem of technology-enabled Islamic financial services that fosters interoperability, shared standards, and open innovation—benefits that could extend beyond Bank Islam to the wider financial services community.
Regulatory and Governance Considerations
Regulatory alignment will be foundational to Finodyn’s operations. The venture will need to navigate financial services regulations, data protection laws, cybersecurity standards, and governance requirements associated with Shariah compliance. Strong governance structures, including independent oversight, clear accountability, and transparent reporting, will be essential to maintain trust among clients, regulators, and investors. The emphasis on maintenance and support services will require robust service-level agreements, incident response plans, and continuous monitoring to ensure platform reliability and security. In addition, risk management practices related to third-party relationships, vendor oversight, and software development lifecycle (SDLC) controls will be pivotal to sustaining a high-quality, compliant product suite.
Market Relevance, Investor Perception, and Long-Term Outlook
Bank Islam’s announcement of Finodyn aligns with broader investor expectations of financial institutions embracing digital transformation to unlock value and broaden revenue streams. The bank’s stock performance around the announcement—trading down slightly on the day—reflects the immediate market reaction to corporate strategy shifts. Over the longer term, the success of the JV will hinge on execution: delivering scalable platforms, achieving rapid but controlled market penetration, and demonstrating tangible returns from the technology investment. If Finodyn can demonstrate compelling performance metrics—such as accelerated product deployment, improved customer satisfaction, reduced time-to-market for new features, and measurable efficiency gains for client organizations—it could help shift investor sentiment toward the strategic merit of the partnership.
For the Malaysian financial services sector, Finodyn’s model showcases how traditional banks can leverage technology partnerships to accelerate digitalization while maintaining a disciplined approach to Shariah compliance. The collaboration highlights a pathway for Islamic banks to expand into new product lines and client segments without sacrificing ethical principles or regulatory requirements. As banks increasingly adopt cloud-based architectures, modular platforms, and service-oriented approaches, the demand for secure, compliant, and scalable digital solutions is likely to intensify. Finodyn’s emphasis on consulting, maintenance, and support services further strengthens the value proposition by ensuring clients can navigate the complexities of technology adoption and ongoing governance with confidence.
Execution and Milestones
Looking ahead, the three-phase strategy will require disciplined execution, with key milestones likely to include the completion of initial product development milestones, the establishment of core platform capabilities, successful pilot deployments with select clients, and a scalable go-to-market program designed to maximize reach and impact. The emphasis on Shariah compliance will require ongoing collaboration with internal and external Shariah consultants to validate product designs, features, and financial arrangements. A successful rollout could position Finodyn as a preferred platform provider for Islamic financial services, attracting additional partnerships, talent, and investment that reinforce the bank’s digital leadership.
As Finodyn evolves, the venture will need to monitor evolving market dynamics, regulatory updates, and customer expectations. The ability to adapt to new technologies—such as advanced analytics, automation, artificial intelligence, and secure digital identity solutions—will be critical to maintaining competitiveness. By combining strategic capital deployment with a robust product roadmap and a relentless focus on customer value, Finodyn can contribute meaningfully to the modernization of Islamic finance in Malaysia and beyond.
Conclusion
Bank Islam Malaysia Bhd’s move to set up Finodyn Sdn Bhd—a technology finance joint venture with Reldyn Tech Sdn Bhd—represents a deliberate investment in the future of Shariah-compliant digital finance. The RM9 million capital commitment, with Bank Islam holding 40% and Reldyn 60%, signals a balanced partnership designed to deliver a comprehensive B2B platform suite, including Islamic banking platforms, consulting, maintenance, and support services. The three-phase rollout envisions a robust foundation for product development and infrastructure in the first two years, followed by an accelerated sales phase aimed at deepening market penetration and expanding the bank’s digital footprint in the Islamic finance ecosystem. Executives from both parties emphasize a shared vision of delivering superior customer experiences, digital transformation, and enhanced security within a Shariah-compliant framework.
Finodyn’s emphasis on Islamic digital finance, platform-based delivery, and the potential to offer Islamic Banking-as-a-Service stands out as a strategic differentiator in a competitive fintech landscape. The venture aligns with broader industry trends toward digitization, platform-based business models, and the growing demand for ethics-driven financial technology solutions. While short-term stock market movements reflect typical investor reactions to strategic announcements, the long-term value will depend on Finodyn’s ability to execute, deliver reliable and compliant platforms, and demonstrate measurable benefits to clients and stakeholders. If successful, Finodyn could accelerate the adoption of Islamic digital finance solutions and set a precedent for future collaborations between banks and technology firms in Malaysia and the wider region. The strategic collaboration between Bank Islam and Reldyn Tech thus positions Finodyn as a potential catalyst for a more agile, secure, and customer-centric financial services landscape, reinforcing the drive toward innovative, compliant, and scalable digital finance capabilities across the Islamic banking sector.