Breaking News and Top Stories
There is no escaping the lack of activity in the core banking software market in 2013, despite signs of a recent global economic pick-up. Other research firms may be 'predicting growth' or 'remaining bullish' with their copycat big leagues, waves, quadrants and hype cycles, but at IBS we don't have our head in the clouds and publish what is actually happening out there. It is not pretty, at least not… Read More
Latest Publications Updates
- Back Office Systems Guide
- Islamic Systems Guide
- Payments Guide
- Risk Guide
- 7 March 2014
- 7 March 2014
- 3 March 2014
- 28 January 2014
Also in the News
With the year coming to a close, there remains a healthy pipeline of deals within the financial services sector as banks and insurance companies specifically continue to tackle tougher regulations and restrictions meaning sell offs of non-core assets remain inevitable through to 2014.
Path Solutions has topped the latest Islamic Sales League Table after a couple of quieter years. IBS speaks to its chairman and CEO, Mohammed Kateeb, about the state of the market.
Although the overall number of deals has fallen, Path Solutions has managed to keep its nose in front of rivals in the latest Islamic banking sales league table.
Mohammed Kateeb, chairman and CEO of Path, describes the Islamic core banking systems market as 'pretty steady', although he feels that it is unlikely to sell the same number of core banking solutions in 2013 as in 2012. 'It will be difficult to reach double figures because the competition is becoming much stronger and the number of banks is not,' he says.
In 2012 Path hauled in a comparable number of deals to...continues (login/subscribe).
ITS predicts a bumper year for Islamic system sales in Libya, as all banks must become Shari'ah-compliant.
Haitham Abdou, group director of corporate marketing and banking business solutions at ITS, echoes some of the points made by Mohammed Kateeb, chairman and CEO of Path Solutions (see 'Vendor view: Mohammed Kateeb, Path Solutions'). The main one concerns Libya, where ITS is already working with the country's largest bank, Gumhouria Bank, to convert it to Shari'ah compliance (IBS, June 2012, Ethix goes live at Libya's largest bank). The roll-out is proceeding by branch (of which there are about 140). During the last six months or so ITS has seen banks in Libya releasing RFP documents, and Abdou expects that ITS may finalise as many as...continues (login/subscribe).
After a lean year in 2011, Path Solutions has won almost half of all the Islamic core banking deals recorded by IBS in our annual Sales League Table (SLT). With the overall total dropping again, there were slim pickings for other vendors.
The Islamic core systems market has exhibited a steady decline in new-name deals in the years since IBS tracked this metric, starting in 2009. Adding a fourth year of data shows the overall number of deals falling by...continues (login/subscribe).
It seems as though banks will do just about anything to avoid an entire core replacement these days, with many either wrapping their legacy cores with new layers or upgrading ageing solutions for improved functionality. Why did Kenya-based First Community Bank, a long-standing user of Path Solutions' iMAL, choose to upgrade?
Rather than 'ripping and replacing', many banks are investing to make their legacy systems current. Banks want to be able to develop new products quickly, offer enhanced customer services, and be up to date with the ever-changing market demands without having to completely change their core solution. This is due to the fact that many core replacement projects either fail, take much longer, or cost far more than originally anticipated.
One bank which opted for the upgrade route was First Community Bank (FCB) in Kenya. FCB, the first fully-fledged Shari'ah-compliant bank in the country, offers commercial banking services as well as a variety of retail banking products such as murabaha (the bank buys and sells the items required by the customer), mudaraba (profit and loss sharing) and musharaka (joint venture). To date, it has assets under management amounting to KES10 billion (around $116 million), 17 bank branches across the country and a staff headcount of around 400.
Since its inception in mid-2008, FCB has been running Path Solutions' iMAL offering, which was chosen ahead of...continues (login/subscribe).