it then tested the modules before certifying the system as Shari’ah- compliant. The offering could operate as a standalone module alongside Profile or another third party solution, according to Alaeddin. Functionality comprised investment products, deposits (mudarabah and wadiah), and asset and equity-based loans (murabaha, ijara, tawaruq etc).
In Asia, the system would be primarily targeted at Malaysia and Indonesia, with plans also afoot to expand into the MENA region following any necessary adjustments for the differing version of Islamic finance here. Nigeria, Russia and Australia were also identified as new markets for Islamic finance that were ‘expected to take off’. Although FIS was a few years behind its main international competitors in pitching to the Islamic banking industry, its Shari’ah certification was ‘not something many other vendors have’, said Alaeddin. Also, the offering enabled the complete segregation of Islamic and conventional customer accounts (a fundamental requirement for Shari’ah-compliant operations, emphasised Alaeddin), by having separate databases for these. The database separation feature was absent in most rival systems, he claimed, giving Profile Islamic Banking a ‘huge competitive advantage’. By this stage, there was already a first taker of the solution in the form of National Bank of Pakistan, which was scheduled to go live with Profile Islamic before the end of 2012. There were ‘some tweaks and minor customisation’ completed to make the product compliant with the
Pakistani Shari’ah banking rules. The work was being carried out in parallel with the implementation of the conventional functionality of the system.
A deal in the same region in 2011, one of four wins in total for Profile, was also Islamic, although it was off-the-record. In late 2012, Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) selected Profile to replace the SIBS system from Malaysia-based vendor, Silverlake. This had been running for many years at the bank. Profile beat off competition from Temenos’ T24, Oracle FSS’s Flexcube, Infosys’ Finacle and Fiserv’s Signature to gain the deal. This was one of five new-name wins for Profile in 2012, three of which were in its US stronghold. The fourth one was in Thailand. Profile had 3 new name deals in 2013, two of which were in India and one in the UK at Sainsbury Bank. In 2014 there were 2 new name deals Bandhan Bank in India and Tisco Bank in Thailand. There were three new deals in 2015. There were three known takers of FIS profile in 2016 and 2017 with new banks in India, Northeast Payments Bank and Fino Payments banks selecting the system. There was a major cutover in Thailand, when Kasikornbank (Kbank) the bank with the largest share of the digital banking market, went live with a new core banking system, FIS’s Profile, following a three-year modernisation project. There was a reversal for FIS in Pakistan when Soneri Bank replaced its customized legacy system based on AllProfits by Temenos T24.
More progress and acquisitions
In the first half of 2013, UK-based Sainsbury’s Bank selected FIS as its technology partner for its retail banking operations. A hosted facility housing Profile on a Unix platform, as well as FIS’s Touchpoint front-end and its credit card processing platform, was planned to support the bank’s deposit, savings, loans, mortgages and credit card accounts, across back office and telephone, internet and mobile delivery channels. Also in 2013, Profile gained two new takers in India, the first of which was Shivalik Mercantile Co-operative Bank. The bank, with 100,000 customers in Northern India, selected Profile on a hosted ‘pay per use’ model in June and went live with the system in December. Shivalik was the first customer other than ING Vysya, which originally took the system in 2002 and deployed it onsite. The second taker was Bharatiya Mahila Bank, the country’s first public sector bank catering
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exclusively for women. It commenced operations in Q3 2013. The bank opted for a hosted ‘pay per use’ model. Infosys, Polaris and TCS also bid for this deal. The selection took place in summer 2013, led by SBI Capital Markets, the advisor to the Government of India for setting up the new bank. In terms of corporate twists and turns, in April 2009 it was announced that Fidelity had acquired Metavante, a US-centric vendor which offered its own core system on an ASP basis. This created a colossus in the US payment and financial core processing sector, bringing together 8000 customers from the latter and 14,000 from the former. FIS itself was also the target of a $15 billion leveraged buyout by three private equity firms, Blackstone Group, Thomas H Lee Partners and TPG Capital. However, FIS turned down the offer of $32 per share. It was believed the vendor intended to go down a leveraged recapitalisation route instead. In late 2010, FIS added Capco for $292 million. Capco was majority owned by private equity firm, Symphony
Islamic Report
www.ibsintelligence.com
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