Islamic Banking Solution

The Finacle Islamic banking solution offers an integrated and comprehensive approach for banks to define and present Shariah-compliant products to their customers. What differentiates the solution is its strong product features, support for Islamic accounting and complete traceability for audit. The solution is entirely self-contained, and is replete with the accounting backbone required to support back office functionalities and straight through processing (STP) capabilities on a ‘Service Oriented Architechture’ platform.

A single solution built on the standard technology infrastructure available for conventional banking; the Finacle Islamic banking solution addresses both Islamic banking and international needs. Developed with incisive insight into the Middle East, Far East and European markets, the solution is truly geared to address region-specific Islamic banking requirements.

International accreditation

The Finacle Islamic Banking solution has been recently assessed by Al Futooh Consultancies and has been certified compliant with Shariah rules and principles and AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions) standards. Al-Futooh Consultancies has partnered with Shariah scholars who are members of the Shari'ah Board of more than 26 Islamic banks and Islamic finance companies. The study has been conducted over a 5 year time frame, covering Financing, Investments and Trade Finance modules of Finacle.

Key modules

  • Islamic asset products
  • Islamic liability products
  • Mudarabah pool management and profit sharing
  • Hijri calendar

Business benefits

Differentiated product spread

The Finacle Islamic banking solution offers a flexible and varied feature repertoire for banks to design and deploy products for varying market segments, based on different Islamic concepts including Mudarabah, Murabaha, Ijarah, Istisna and Tawarruq. The solution also offers a wide range of possibilities for business users at the bank to create products and embellish them with innovative features.

Lowered total cost of ownership (TCO)

The solution’s custom-definable watertight modules address both international and Islamic banking needs. This empowers banks with the flexibility to define and change the organization structure, offering Islamic banking as an add-on product at a branch of choice, and then converting it to an independent Islamic banking unit, if required. Proven scalability and robust performance for both conventional and Islamic banking are assured. All of this results in significantly lowered TCO for the bank.

Greater process efficiency

The solution is powered by the BPEL and BPML compliant workflow engine. This, coupled with high parameterization capabilities, results in greater process efficiency, better risk mitigation and supports rapid roll out of Shariah-compliant products.

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