(Source: Middle East Company News)
Albaraka Bank Limited, the South African subsidiary of Bahrain- based Albaraka Banking Group B.S.C. (ABG) last year initiated an intensive project to replace its core banking system with the Equation Islamic Banking and Branch Automation System from Misys Plc., contributing to an improvement in the bank's competitive edge.
The multi-million Rand IT solution is in line with the bank's holding company's strategic direction and is being rolled out to select ABG subsidiaries around the world, inclusive of the South African banking operation.
ABG is widely regarded as the world's leading Islamic banking group with units in 12 countries and a global branch network of some 300 branches.
Albaraka Bank Limited was established in 1989 and has pioneered Islamic banking in South Africa as an alternative to conventional interest-based financial services provision and is the country's only fully-fledged Islamic bank.
Commenting on the systems change, Albaraka Bank's Information Technology Manager, Mr Naushaad Khan, said:
"The acquisition of the Equation Islamic Banking and Branch Automation System was the result of the existing core banking system, which supported our business requirements, having reached the end of its life-cycle. Importantly, we have identified tremendous opportunities for leveraging the functionalities and systems automation offered by Equation in terms of Islamic banking, which will contribute strategically to the bank's competitive edge."
The bank's equation project was launched towards the end of 2008, with phase one implementation taking place during the second quarter of this year. Phase two will follow later this year once the core systems have been successfully bedded down.
With dramatic increases in the cost of doing business during recent years, Albaraka Bank's migration to the Equation banking system will realise a reduction in business costs through the automation of processes and the attendant positive contribution of operational efficiencies throughout the bank's business environment.
In addition, it is anticipated that the system's Relationship Management tools will enable staff to enjoy a 360 degree view of customer profiles and dealings with the bank, so leading to significantly improved levels of customer service, while the delivery of Islamic banking products and services in a timely and flexible manner will contribute appreciably to the bank's product innovation capabilities.
Misys Plc., a United Kingdom-based company with a global footprint, was responsible for the provision of the Equation banking system solution.
