IBS Journal August 2017


21


IBS Islamic banking sales league table 2017 Product


Supplier iMAL


Temenos Core Banking (formerly T24) ICS BANKS Ethix


TCS BaNCS Calypso


FusionBanking Lending


FusionBanking Trade Innovation ICBS


OMNIEnterprise Core Banking Sopra Banking Amplitude Ambit Quantum Autobanker II


Deposits Management Findur


Flexcube


Fusioncapital Kondor MoneyWare


Olympic Banking System TrustBankCBS/Microfins * Data not submitted for given year


Path Solutions Temenos ICSFS


International Turnkey Systems (ITS) TCS Financial Solutions Calypso Technology Misys Misys


BML Istisharat InfrasoftTech


Sopra Banking Software FIS


Autosoft Dynamics SAP


Openlink Financial Oracle FSS Misys


Miles Software ERI


Trust Systems & Software


New-name customers signed in 2016 (Previous years in brackets, with most recent first)


9 (4, 4, 10, 11, 3, 4, 13, 11, 14, 5, 5, 3) 7 (3, 4, 10, 3, 4, 7) 4 (1, 0, 1, 1, 3, 1) 2 (0, 3, 0, 3, 3, 0) 2 (1, 0, 1, 0, 1, 0) 1 1 1


1 (0, 0, 2, 0, 1, 1) 1


1 (1, 0 , 0, 1, 0, 0) 0 (1, 0, 0, 0. 0, 0) 0 (0, 0, 0, 1, 0, 0) 0* (1, 0, 0, 0, 0, 0) 0 (0, 1, 0, 0, 0, 0) 0* (4, 0, 1, 2, 1, 2) 0 (1, 0, 0, 1, 0, 0) 0 (2)


0 (0, 1 , 0, 0, 0, 0) 0 (1, 0, 0, 0. 0, 0)


Footnote 1: The table covers only new-name core banking deals falling under the conventional back-office categories – Universal banking, Retail banking, Wealth management, Wholesale banking and Lending. Contracts known to cover solely front office, corporate treasury, digital or risk have been omitted from the supplier totals. Similarly, domestic deals for suppliers have also been omitted from this table.


Footnote 2: Where no figures appear for previous years, this is either because these systems were not included in previous surveys, the figures were not disclosed, or the systems were not launched at that time.


Footnote 3: Misys has been rebranded to Finastra following its merger with D+H in 2017. Key Universal banking systems Private banking systems


two years have shown that Islamic banking is not without its vulnerabilities with the industry growing in single digits between 2015 and 2016, mainly driven by political conflicts in the Middle East, historically low oil prices and Islamic banks reaching maturity in the GCC region.


However, the potential for further expansion of Islamic banking continues to remain active. Consider this: a report by EY identified 25 “rapid growth market” countries which they predict will account for half of global GDP by 2020. Of these, ten have a high Muslim population. Add to this, the fact that the domestic market share for Islamic banking of the total banking sector increased in a large number of countries in 2016, despite the slowdown.


Currently, Islamic finance assets represent only 1% of the global financial markets with the markets concentrated mainly in the Middle East and Asian countries such as Malaysia and Indonesia. However, other markets are slowly opening up to this system of banking, especially Africa, which has a Muslim population of around 250 million, a majority of them being unbanked. Countries


Retail banking systems Wholesale banking systems Lending systems


such as Ethiopia, Ghana and Kenya have already developed regulatory frameworks for Islamic banking with the latter joining the Islamic Financial Services Board, a Malaysia-based regulatory body, in December 2016. Europe and the US are also warming up to Islamic finance, with the US housing around 25 Islamic finance institutions in the country.


For Islamic banking providers, a key strategy to compete effectively with conventional banks in the future will be to develop their technology and product offerings in line with digital innovations taking place in the banking industry. A few banks in the GCC region are already working towards developing their digital strategy. A recent example is Abu Dhabi Islamic Bank (ADIB), one of the largest Islamic banks in the GCC, which partnered with a German digital-only bank, Fidor Bank, to launch what it calls the GCC’s first “community-based digital bank”. With more Islamic banks moving towards upgrading their banking systems and newer banks introducing Islamic banking products, the demand for core banking technology systems is expected to go up in the foreseeable future.


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