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National Australia Bank (NAB) is nearing the completion of an overhaul of its global trade finance business with Misys' Trade Innovation. Its New Zealand-based subsidiary, BNZ, is expected to go live in September this year, after the system was rolled out to its Asian locations over the last 15 months.Read More
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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).
ME Bank, a small player in Australia with big ambitions, is investing AU$60 million (US$57 million) in its technology transformation programme, which will deliver 24 technology solutions over 15 projects. IBS talks to Kathryn Hawkins, CIO of ME Bank.
To begin with, the bank invested in building an organisation competence model, which was then used to overlay the strategic business plan and the technology support. This is when it was discovered that the existing technology set-up was too limited, and lacked agility and flexibility. 'We spent a fair amount of time working across the organisation to understand where we wanted to be and what we needed to support it – this is where we understood our existing core solutions were not going to support our journey and knew that we would need to go to market. At this point we...continues (login/subscribe).
As the UK's banking sector is yet to settle down in the aftermath of the crisis, calls for more competition and diversification are widespread. Smaller players and new entrants should be able to get a foot in the door easier. The era of top-tier banks dominating the market should come to an end. Big banks should fully segregate their retail and investment activities. None of this rings new. But what about... uniting everyone on a common banking platform?
A round-up of recent orders in the financial technology sector worldwide. Calastone, Infosys and Provenir are among the vendors gaining new deals. Erbil Stock Exchange and Klarna acquire new software.