IBS Journal November 2016
33
Core banking systems of the future will have to be much more flexible to accommodate such an approach finally giving banks the long hoped for flexible service orientated architecture (SOA). The major core banking vendors will probably also have to accept that not everyone will want to buy their ‘modules’ from them when they can get specialist payment, mortgage or data solutions from standalone niche players at cheaper prices.
“Big vendors should stop trying to make their own
CRMs, mobile or other bolt-ons and just concentrate on providing a flexible core banking system and their processing strengths,” says Al Rayan Bank’s COO Gamil. “They will never be as good on customer experience, AI, data services and so on, as specialist cloud-enabled FinTech firms so they shouldn’t try, especially in the coming API banking world.”
If the SOA environment that Gamil envisages comes to pass, it will no doubt be welcomed by smaller banks that want to compete on functionality with bigger players but haven’t got the Capex money. This cloud- based nirvana will also need the support of regulatory initiatives such as the EU’s Payment Services Directive (PSD) 2 and the UK regulator’s open API Banking standardisation efforts, which are to remove barriers. “That’d be a radical change if it happens in the UK by 2018,” adds the COO.
Such a technology revolution is not likely to be confined to one country, region or sector. It will impact Islamic banks in the West, Asia, GCC or elsewhere. It will affect conventional banks in those same countries. Technology is no respecter of boundaries whether physical or religious.
Glossary: Some key terms SAP’s Laurence Leyden
• Murayama: Asset purchased by the bank and sold on to the customer with an agreed mark-up.
• Suck: Islamic type of bond representing the own- ership by the Suck holders in the underlying asset.
• •
Ibarra: Asset purchased by the bank and leased to the customer over a specified period.
Mishawaka: Investment partnership in which
profit-sharing terms are agreed in advance and losses are attributable to the sum invested. Similar to a joint venture agreement.
• Moradabad: Partnership financing contract under which one party provides the labour while the other provides the capital;
• Takaful: Mutual insurance.
www.ibsintelligence.com
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52
