g
Path. It had netted double-digit annual sales in the past few years and traditionally outsold its competitors. But compared to 13 new-name deals in 2009, the result of four in 2010 looked to indicate that the landscape was moving.
Some of the heavyweight suppliers seemed to have got their act together and have developed credible Islamic versions of their offerings that can go at least a fair way to matching the offerings of the market incumbents, such as Path. Seven of Temenos’ 2010 deals, for instance, had an Islamic component, whereas only three had the previous year. Three of Nucleus’ deals for FinnOne included Islamic banking. So did four of 3i Infotech’s Kastle Universal Lending deals, all coming out of Saudi Arabia. Oracle FSS had two deals for its Shari’ah-compliant version of Flexcube: the off-the-record customer in Brunei and Mashreq Bank in the UAE. SAP and Sungard scored one each in 2010, in Malaysia and Egypt respectively, as mentioned. As for the more regional vendors, there is still a way for them to go to catch up with Path, but BML had one sale in 2010 – at the aforementioned Islamic investment bank in Bahrain, Capivest. ICS also had one win, at Iraqi Islamic Bank. Neither BML nor ICS had recorded any core banking sales to Shari’ah-compliant institutions in 2009.
How about the market in 2011? Well, the ‘Arab Spring’ looked unlikely to have aided the short-term demand for systems in those countries that were involved. It certainly held up some projects. And the global economic situation was still being felt in centres such as Bahrain (which also had unrest) and UAE. Islamic banks avoided some of the turmoil (they cannot participate in derivatives and other speculative trading), but they did have exposures to real estate. Meanwhile, there were few entrants in 2011 as central banks raised the hurdles ever higher. Nigeria was an exception, with the Central Bank paving the way with new regulations. Jaiz International Bank was seeking to take advantage (see case study). This would-be entrant was, predictably, underpinned by Path’s iMAL. However, Path had another quiet year, with Ahlibank in Oman and a start-up, Qinvest, in Saudi Arabia, the other new takers for iMAL. The only deal for the year from Iraq went to ICS, with Al Baraka Turk Participation Bank (ICS also had Islamic deals in Sudan and Jordan). There were no Islamic deals at all in Bahrain or UAE. Perhaps giving a boost in a few areas was the fact that 2011 actually saw an increase in capital investment in Islamic banking in relation to 2010, reflected in the view that it represented a relatively safe haven.
Nevertheless, in another quiet year for core banking system sales per se, Shari’ah selections were again notably fewer than pre-crisis. Outside of the Middle East, aside from the one site in Nigeria, a notable move into Malaysia was achieved by BML in the form of Bank Simpanan Nasional. FIS had an off-the-record deal for Profile in the same region. Misys gained International Islamic Liquidity Management for OpicsPlus while Oracle FSS won Bank Muamalat in Indonesia. Temenos also had a deal in Indonesia, Bank Artha Graha, plus Access Bank in Azerbaijan with an Islamic banking aspect to it.
2012-2013
Path Solutions had a notable bounce back in 2012, in terms of new- name wins. Oman was busy and Path won four deals here. There were also a couple in Mauritania for Path, comprising Banque Populaire de Mauritanie and Bank Al Muamelat Assahiha, although it didn’t have things all its own way, as a start-up Islamic bank in the country, Maurisbank, opted for SAB’s core system during the year. Path also gained Burj Bank in Pakistan in 2012, plus a couple of deals in Malaysia, one in Tajikistan and one in Iraq (the latter country was much quieter than in the previous few years). Path’s total of eleven new-name deals wasn’t back to the levels of yester-year but it was a good haul, nonetheless. Burj Bank, or First Dawood, as was, was a replacement for Sungard’s Ambit Core Banking. ITS rolled out the Islamic version of its Ethix core system in 2012 at the Sudanese subsidiary of Abu Dhabi Islamic Bank (ADIB). ADIB was a long-standing user of the system in the UAE, Iraq, Egypt, Yemen and the UK. Qatar was added in 2011. In Sudan, the project commenced in September 2012 to support retail and corporate activity as well as delivery channels. By this time in Sudan, the vendor already had Al- Jazeera Bank and National Bank of Egypt on the user list (NBE went live in September 2012, after a three-month implementation ). In neighbouring Egypt, ITS finalised a deal with NBE to implement Ethix for Shari’ah-compliant banking operations, front-to-back office, across domestic branches. The system was taken to sit alongside the main core banking solution at NBE, Oracle FSS’s Flexcube (this project had been under way since 2009).
ITS was also rolling out Ethix at Egypt’s oldest Islamic bank, Faisal Islamic Bank, during 2012. Meanwhile, in Libya, the vendor made progress at Gumhouria Bank, with a go-live at the first branch in
Islamic Report
www.ibsintelligence.com 29
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 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132 |
Page 133 |
Page 134 |
Page 135 |
Page 136 |
Page 137 |
Page 138 |
Page 139 |
Page 140 |
Page 141 |
Page 142 |
Page 143 |
Page 144 |
Page 145 |
Page 146 |
Page 147 |
Page 148 |
Page 149 |
Page 150 |
Page 151 |
Page 152 |
Page 153 |
Page 154 |
Page 155 |
Page 156 |
Page 157 |
Page 158 |
Page 159 |
Page 160 |
Page 161 |
Page 162 |
Page 163 |
Page 164 |
Page 165 |
Page 166 |
Page 167 |
Page 168 |
Page 169 |
Page 170 |
Page 171 |
Page 172 |
Page 173 |
Page 174 |
Page 175 |
Page 176 |
Page 177 |
Page 178 |
Page 179 |
Page 180 |
Page 181 |
Page 182 |
Page 183 |
Page 184 |
Page 185 |
Page 186 |
Page 187 |
Page 188 |
Page 189 |
Page 190 |
Page 191 |
Page 192 |
Page 193 |
Page 194 |
Page 195 |
Page 196 |
Page 197 |
Page 198 |
Page 199 |
Page 200 |
Page 201 |
Page 202 |
Page 203 |
Page 204 |
Page 205 |
Page 206 |
Page 207 |
Page 208 |
Page 209 |
Page 210 |
Page 211 |
Page 212 |
Page 213 |
Page 214 |
Page 215 |
Page 216 |
Page 217 |
Page 218 |
Page 219 |
Page 220 |
Page 221 |
Page 222 |
Page 223 |
Page 224 |
Page 225 |
Page 226 |
Page 227 |
Page 228 |
Page 229 |
Page 230 |
Page 231 |
Page 232 |
Page 233 |
Page 234 |
Page 235 |
Page 236 |
Page 237 |
Page 238 |
Page 239 |
Page 240 |
Page 241 |
Page 242 |
Page 243 |
Page 244 |
Page 245 |
Page 246 |
Page 247 |
Page 248 |
Page 249 |
Page 250 |
Page 251 |
Page 252 |
Page 253 |
Page 254 |
Page 255 |
Page 256 |
Page 257 |
Page 258 |
Page 259 |
Page 260 |
Page 261 |
Page 262 |
Page 263 |
Page 264 |
Page 265 |
Page 266
