Al Salam Bank was established in April 2006 in the Kingdom of Bahrain and operates under an Islamic banking licence issued by the Bahrain Monetary Agency. The bank needed a system to support the establishment of its head office operations and with the scalability to facilitate its strategy of future regional expansion. The bankâs requirements also included the ability to develop and deliver a range of Sharia-compliant financial products.
Yousif Taqi, CEO, Al Salam Bank, says: âIn order to establish ourselves as a global force in the Islamic financial services industry, it is critically important to ensure that we have the right technological foundation. We are committed to providing clients with innovative and differentiated Sharia-compliant products and services through the utilisation of the latest available technology and in line with the highest international standards in the industry.
âWe chose TEMENOS because of its excellent track record in the Middle East region, having completed implementations for several Islamic banks. We were also impressed and reassured by TEMENOSâ significant investment in R&D, which ensures TEMENOS T24 remains the most advanced system available.â
TEMENOS has a consistent policy to invest substantially in its technology. In 2005, the company invested 18.3% of its revenues in R&D, totalling US$30.9 million, and since 2002 has invested over US$130 million.
During the three-month evaluation period, Al Salam Bank considered a number of leading providers of core banking systems for Islamic banks before signing the deal with TEMENOS in August 2006. TEMENOSâ open technology gives the bank the flexibility to choose the most appropriate platform and database for its needs. The system will run on HP servers in the bankâs Bahrain head office with Oracle 10G database software. TEMENOS will install core TEMENOS T24 functionality, including Islamic, retail, corporate, treasury, trade and private banking capabilities.
TEMENOS T24 is a functionally rich, thin client, scalable, integrated, modular banking system. It is built on open service oriented architecture, and uses established technology standards such as HTTP, XML and HTML. It offers a single client view across the enterprise and can support large numbers of users with true non-stop resilience. Its fully-integrated architecture enables it to offer a significant cost advantage compared to other competing products. It offers multiple application server support and is the only system available with no end-of-day batch processing and so can genuinely boast of providing real-time 24/7 non-stop banking.
Andreas Andreades, CEO, TEMENOS, adds: âThis is the latest in a successful line of projects for us in the Islamic banking sector. Al Salam Bank joins a growing list of financial institutions in the Middle East, including Saudi Hollandi Bank and Finance House, which are utilising our core banking technology to compete successfully in this rapidly growing and competitive market.â
According to the latest International Banking Systems sales league table, published in March 2006, TEMENOS has the largest core banking client base in the world with a stated 600 live sites. The company continues to attract global tier 1 and regional banks as a result of its superior products, TEMENOS T24 and TEMENOSâ¢ COREBANKING.