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he says. “It’s not as rigid as it was and some committees are more liberal than others, but it is still an issue in this marketplace.”
This could negate the on/off ‘switch’ marketing of the large conventional vendors, which is redundant if local sharia committees won’t allow Islamic and conventional core banking systems to run side-by-side. Users could leave such systems on ‘Islamic only’ settings. However, the synergies a conventional bank would hope to gain with its ‘Islamic window’ would be lessened.
Core banking firms battle for market share
There is no doubt conventional vendors are investing heavily in Islamic functionality in anticipation of more
Path Solutions’ Mohammed Kateeb
‘windows’ and are targeting it for long-term growth. “They hope to use their existing footprint in the many Middle Eastern, Asian and other markets that they are already present in to gain ground,” says Hoppermann. Their challenge shouldn’t be discounted, but specialist vendors can counter that they too have local knowledge, contacts and installation experience, and they can deploy their standalone Islamic credentials in the marketing war.
In answer to the question ‘will conventional firms eclipse specialist vendors?’ Forrester’s Hoppermann says he “doesn’t like crystal ball gazing” and “there is the proviso of what local sharia committees will and won’t allow vis-à-vis Islamic windows”.
The gauntlet has been thrown down with Misys launching a specifically Islamic solution recently and many other generalists also looking to the sector for growth. What is or isn’t ‘Islamic’ often comes down to
www.ibsintelligence.com © IBS Intelligence 2016
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