This page contains a Flash digital edition of a book.
g


Independent commentary by country


Bahrain Bahrain has never generated the number of deals of UAE but there has been a steady number of selections over the years, with a mix of core banking and treasury, with selections heading to a mix of regional and international suppliers but with no one dominant. The market is relatively international and there are over 100 financial institutions, of different categories. There are 28 retail banks, 71 that are classified as wholesale; in total, there are around 24 Islamic banks. There are signs of consolidation in this small market. Islamic lender Al Salam Bank merged with fellow Bahraini lender, BMI Bank, an affiliate of Oman’s Bank Muscat. Khaleeji Commercial Bank, 47 per cent owned by Gulf Finance House, was evaluating local lender, Bank Al Khair, in the second half of 2013. And in March, National Bank of Bahrain and a local pension fund bought a 51.6 per cent stake in Bahrain Islamic Bank from Kuwait’s Investment Dar. There were five deals in 2007, a peak of nine in 2008, then six in 2009. It is one of the countries that has seen political unrest as well as economic downturn and in 2010 there were just two deals, for BML at Capivest (which merged with Elaf Bank in 2012 and subsequently consolidated on Path’s iMAL core system) and Temenos at the operation of Qatar Islamic Bank. Notably, there were no deals at all in 2011. 2012 was


little better, with a retail lending win for Indian supplier, 3i Infotech, and a treasury success for Murex. 2013 saw two deals again, this time a treasury win for Sungard and T24 selection for Temenos, while 2014 saw just Investrade, an investment company, taking ITS’s Ethix. Eskan Bank awarded contract to BML Istisharat for the universal banking system in 2015.


Iran


While dominated by a small number of domestic suppliers, and with plenty of complications, Iran has thrown up occasional deals. State-owned banks are prevalent but there have been moves in the last decade towards privatisation by the central bank. Heightened sanctions in 2011 and 2012 did not aid the banks’ efforts, at home or abroad, but the recent thaw in relations with the west offers some hope. In the past, FNS (now TCS Financial Solutions) inked a


large deal with Iran’s agricultural bank, Bank Keshavarzi, for its Bancs core system in 2004. Malaysia-based Infopro signed Ghavamin Finance & Credit Institution in 2008 for its ICBS core offering. And UK-based Neptune Software followed in 2010 with a deal at Aryan Bank (now defunct)


for its Rubikon system. Most projects over the years have fallen by the wayside,


partly as a result of international sanctions and partly due to the complexities of the market. Complications include the Solar Hijri calendar (the official calendar of Iran and Afghanistan) for day-to-day calculations, the application of ratified profit rates to credit or savings periods, the availability of right-to-left screens and the application of the Persian language. Those complexities caused Delta Informatique (now part of Sopra Banking Software) to pull back from one deal. In 2009 Delta’s French rival, SAB, gained a win at


Karsazan Ayandeh, a credit institution with around 300,000 customers and 140 branches at the time, which was moving to become a full bank. Karsazan Ayandeh remains the main international vendor project and, by March 2013, 26 branches were running on SAB’s platform, albeit with plenty more to go (by this time, the institution had 300 branches and 800,000 accounts). Going forward, despite the recent improved dialogue


following the arrival of President Rouhani, there may still be reputational risks for international vendors wanting to do business in the country: there were two deals in 2011 but both were confidential and it is unclear whether the projects went ahead. Sanctions by Western countries still limit the capacity of the banking industry to undertake large IT projects.


A key domestic supplier is Tosan, which has been seeking


to take its core system to market, via a wholly-owned subsidiary, IDCorp in Malaysia. The group lists some of Iran’s largest banks as clients, including Parsian Bank for front-to- back office core banking (the bank attempted to implement Misys’ Bankmaster in 2002 but did not succeed), Bank Melli Iran for Islamic credit card management, Bank Mellat for card management and payment solutions, and the Central Bank of Iran for a national exchange switch that connects the country’s 700 money exchange operators. Tosan has been around since the late 1990s and operated under the name of Kishware prior to its rebranding in 2010. Tosan has brought in some deals for its relatively new Java-based Islamic banking system, Banco. These included Pishgaman Credit and Finance Institute and the Co-operative Financial Institute of Tehran Municipality in 2012. Another major domestic provider in Iran is Fanap, the


IT arm of Bank Pasargad. It supplies core banking software and a range of auxiliary solutions to the bank and other members of the Pasargad group (leasing, insurance etc). The core system is also marketed to the wider Iranian market, and in early 2014, a new subsidiary, Dotin, was set


Market Dynamics Report www.ibsintelligence.com 225


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  |  Page 267  |  Page 268  |  Page 269  |  Page 270  |  Page 271  |  Page 272  |  Page 273  |  Page 274  |  Page 275  |  Page 276  |  Page 277  |  Page 278  |  Page 279  |  Page 280  |  Page 281  |  Page 282  |  Page 283  |  Page 284  |  Page 285  |  Page 286  |  Page 287  |  Page 288  |  Page 289  |  Page 290  |  Page 291  |  Page 292  |  Page 293  |  Page 294