new process and its costs but pointed out that ‘what has been certified is certified’. The other certified supplier, ITS, came to the same conclusion and withdrew. Path stated: ‘AAOIFI no longer certifies that the Islamic banking and finance information systems offered by Path Solutions as being compliant to AAOIFI standards, and bears no responsibility on the Shari’ah compliance of their systems.’ A Path spokesperson told IBS: ‘We are exploring other very respectable Shari’ah regulatory and audit bodies in the industry to obtain a premium and global certificate of compliance from renowned Islamic finance standard-setting bodies including, but not limited to, AAOIFI. I think this has probably upset AAOIFI.’ Path then worked with Deloitte on Shari’ah-compliant certification, with this announced in October 2014. ‘It was an extensive process and we are very satisfied with the results,’ stated Kateeb. Deloitte concluded that no modification was required as iMAL was deemed to be fully compliant with the Shari’ah principles and accounting standards set by AAOIFI, he said. Path had only four new-name deals for iMAL in 2014, coming in UAE, Saudi Arabia, Sudan (Sudanese Egyptian Bank), and Gambia. This was clearly considerably down on Path’s tallies for 2013 and 2012 (ten and eleven new-name wins respectively). Kateeb, said: ‘Some really key markets were having tremendous troubles’. Libya, for instance, was a market that had a lot of deals in the pipeline but no vendor would be willing to send its staff there at present, he felt. In terms of where to look for future growth, the answer
seemed to be North Africa, particularly Morocco. In November 2014, the Moroccan government adopted a bill regulating Islamic finance and sukuk issues. The governor of the central bank, Bank Al-Maghrib, said recently that it had received 15 requests from foreign entities wanting to open Islamic banking operations. ‘We are seeing some new markets coming up but they
are doing so very slowly,’ said Kateeb. There is always a delay in putting in place the legislation but he felt that Morocco would be the next big market, with the laws being finalised and licences starting to appear. He also predicted some activity in Tunisia, although this is a much smaller market. However, sometimes such hopes can be dashed. Two changes of government in Egypt of late had seen a lessening of previous enthusiasm for Shari’ah- compliant banking. On the corporate front, there were strong rumours in the
latter part of 2014 and first half of 2015 that Path Solutions might be in discussions with KFH about acquiring ITS. This was strenuously denied by ITS although it was known that Path’s somewhat troubled rival had been going through a strategy review and there were a couple of changes at the helm in fairly quick succession. Sudanese Egyptian Bank (SEB) went live with a new core banking system, iMAL, supplied by Path Solutions. The system supports SEB’s Shari’ah-compliant retail banking operations across its seven branches. iMAL replaced a legacy solution that
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was supplied on an outsourced basis. Path Solutions announced that Kenya-based National Bank
successfully went live on April 27th 2015 with iMAL Islamic core banking system for its Islamic window named National Amanah. The iMAL implementation was the smoothest in the history of National Bank which considered the project duration a record-breaker in comparison to previous core banking system implementations. National Bank went live with the Branch Automation module, the Retail and Corporate Islamic Financing applications, the Islamic Profit Calculation, the Electronic Check Clearing system with interfaces to ATM/POS. The year 2016 saw Path Solutions expand its reach into
new geographies with wins in Suriname ( Central America) and Tunisia (North Africa). Siraj Finance based in Abu Dhabi selected iMAL to replace the existing Ethix solution from ITS after a detailed selection process. It also implemented iMAL solution at the Bahrain branch of Bank of Khartoum, the Sudan based bank. Mobilink Microfinance Bank in Pakistan has onboarded Islamic core banking solution from Path Solutions. They have won 3 new accounts in Morocco, including Dar Assafaa, the new Islamic banking unit of Attijariwafa Bank, Credit du Maroc and an undisclosed bank. They went live with Wifak International Bank in Tunisia. They have also done well in Sudan enlisting two new clients including Faisal Islamic Bank, and extended their deal with Bank of Khartoum to UAE region and upgrading the solution to R14 at Al Baraka Bank. In November 2016, Path solutions developed a fully automated Straight Through Processing (STP) system Kuwait Finance House (KFH) treasury department, making it the first Islamic bank in the GCC to deploy such system. The solution was developed in collaboration with Thomson Reuters. Path Solutions announced that Wijak International Bank,
based in Tunisia, will be implementing iMAL Islamic banking and investment system. Path Solutions was selected from among 5 shortlisted systems following a comprehensive assessment and technical and financial evaluations of the bid. The company has indicated that the system has gone live in May 2017.
Suriname based TrustBank tapped up iMal Islamic Banking system to give Path Solutions its first major core banking deal in the Americas. Trust bank had shortlisted three vendors - Path, Temenos and Oracle who gave a demo over two weeks post which Path Solutions was selected after a management lead comprehensive assessment of the product. iMal is planned to be implemented in Trustbank’s four branches, with the process set to start immediately. An initial completion date has been set for September 2017. In June 2017, Crédit du Maroc (CDM) opted for the implementation of Path Solutions Core Islamic Banking system, iMAL. In August 2017, Faisal Islamic Bank, Sudan also chose iMal Islamic core banking system across its 100 branches. The bank will also deploy Mobile and Internet Banking solutions as well as BI and Risk Management to support its channel strategy.
Universal Banking Systems Market Report |
www.ibsintelligence.com
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