Al Baraka Banking Group (ABG), a leading international Islamic banking group and one of the largest Islamic banking players in the world, today announced that it has opted for Path Solutions’ iMAL, the multi-award winning Islamic core banking system.
ABG runs a number of Islamic core banking systems. iMAL was selected to be the new Islamic core banking system in four of its subsidiaries, in addition to its newly established subsidiary in Morocco.
ABG’s decision to implement a new Islamic core banking system was threefold: The ability to meet its growth in areas such as Sharia and regulatory compliance; hence, the richness of iMAL and what it can offer on the Islamic level and the flexibility to launch new Islamic products quickly. iMAL is an upgradable solution which will enable Al Baraka to capitalise on the thousands of enhancements delivered every year based on industry best practices; and the company’s fast and cost-effective implementation approach and world-class support services.
The signing ceremony took place on the sidelines of the 24th General Strategy Meeting at ABG headquarters in Bahrain Bay on December 7th, in the presence of Mr. Adnan Ahmed Yousif, President and Chief Executive of Al Baraka Banking Group, Mr. Mohammed Kateeb, Group Chairman & CEO of Path Solutions, and the CEOs of the group’s subsidiaries and representatives from Path, during which Mr. Kateeb presented the future roadmap of iMAL and the company’s five-year strategic plan.
ABG is licensed as an Islamic wholesale bank by the Central Bank of Bahrain, listed on Bahrain Bourse and Nasdaq Dubai stock exchanges. It is a leading international Islamic banking group providing its unique services in 15 countries with a population totaling around one billion.
On this occasion, Mr. Adnan Ahmed Yousif, President & Chief Executive of Al Baraka Banking Group said, “We clearly view this as a strategic initiative to address the bank’s new business requirements, adapt to dynamic market conditions and increasingly complex compliance mandates, and enhance our customer service. iMAL is at the heart of this technology-driven transformation strategy”.
ABG aims to foster its leadership internationally, leveraging cutting-edge Islamic platform to derive benefits through innovation and product differentiation, and expand its branch network and customer base.
Commenting on this strategic partnership, Mr. Mohammed Kateeb, Group Chairman & CEO of Path Solutions stated, “We are extremely pleased to expand our partnership with ABG, an organization with which we share a common objective of advancing Islamic finance worldwide. As Islamic banks across the world are having aggressive plans to increase market share through expansion, and extend their reach through digital transformation, a significant step to achieve these goals is by upgrading to a new core banking platform as aging legacy systems hinder Islamic banks from expanding and launching innovative products to the market”.
Mr. Kateeb continued, “We are delighted to extend our long-term strategic partnership with ABG. Throughout the years, we have built a working relationship based on trust. We are confident that this reinforced collaboration will allow us to better answer their growth aspirations. This strategic breakthrough will provide an excellent reference model for multi-subsidiary Islamic banking groups looking at replacing their legacy core banking systems with iMAL to drive cost reductions and to achieve business agility with a lower total cost of ownership. We look forward to supporting these four newly signed banks of ABG, and help empower them to achieve their full potential”.
ABG issued RFPs at the end of 2016 to find a replacement for their legacy Islamic core banking systems. Following a rigorous evaluation process, iMAL Islamic core banking platform was selected based on its broad Islamic coverage and technological strengths, being the perfect match for the group’s current and future requirements.
Path Solutions will install iMAL, including retail banking, corporate banking, finance, payments, digital channels, branch automation and administration, to support the growth strategy and expansion of each institution. Eight subsidiaries of ABG have chosen to go for iMAL in the pursuit of their growth plans, reconfirming the company’s dominance of the Islamic core banking software market, while leveraging on unparalleled breadth and depth of industry-specific solutions and services.