Misys Sees Growth in Islamic Banking’s Global Market Drive Demand for Specialised Software Solutions

The rapid growth of the global Islamic banking market over the last five years has boosted the demand for specialised Islamic banking and finance software solutions, reports Misys plc (LSE: MSY), the global application software and services company. With the influx of mainstream banking institutions, particularly leading Western brands, into Islamic banking throughout the world, the support from specialist solution vendors has become a necessity to ensure a smooth transition to Shariah-based banking.

“Banks embarking on Islamic banking operations in key markets around the world are searching for partners with a thorough understanding of the sector and a proven track record in delivery,” states Samir Safa, Business Development Manager, Islamic Banking at Misys. “Islamic banking has opened new and exciting growth possibilities, but it remains a challenge for banking institutions to work within the Shariah-based banking system and adopt its distinct practices. The core banking technology used by financial institutions that operate in this market is essential for meeting local customers’ needs, regulatory reporting, operational requirements and Shariah boards’ approvals.”

Research from the analyst community estimates that the global Islamic banking market is now worth over USD 500 billion, with growth forecast of between 10 and 15 per cent during 2010. Samir Safa continues: “Misys has provided specialised services and software solutions for over two decades that have enabled banking institutions to maintain their competitive edge in this burgeoning market. Although the Middle East has in the past been the primary market for Islamic banking, we have been expanding our presence in other regions as the market grows globally. The experience and knowledge we have built from more than 25 years of delivering integrated, comprehensive solutions to customers puts us at the forefront of the marketplace.”

Misys provides its BankFusion Equation Islamic Banking and Finance solution for retail and corporate banking clients that helps them deliver robust and efficient products and services to their customers. The solution supports a wide range of Islamic Finance products, including Murabaha, Ijarah, Istisna, Musharaka and Al Tawarruq, together with fully automated Islamic Profit calculation and distribution. BankFusion Equation uses our revolutionary BankFusion platform to deliver re-usable components. This brings customers state-of-the art technology and unique flexibility, re-architecting Equation into a service-oriented environment.

Misys also offers a world-class Islamic treasury solution in Misys Opics Plus, a service-oriented, treasury and capital markets solution with unsurpassed STP and back-office capabilities. Misys Opics Plus is a comprehensive solution for front-to-back office, cross-asset processing of a wide range of financial instruments. The solution provides support for Commodity Murabaha (including Contributor Trades), Reverse Murabaha, Wakala Investment and Financing, Deposit Exchange, Sukuk, Al Tawarruq and FX spot.

The two systems are fully integrated for financial institutions that require total Islamic coverage (including operational window) to satisfy all the needs of their customers.

About Misys plc

Misys plc (LSE: MSY), provides integrated, comprehensive solutions that deliver significant results to organisations in the financial services and healthcare industries. We maximise value for our customers by combining our deep knowledge of their business with our commitment to their success.

In banking and treasury & capital markets, Misys is a market leader, with over 1,200 customers, including all of the world’s top 50 banks. In healthcare, Misys plc owns a controlling stake in NASDAQ-listed Allscripts-Misys Healthcare Solutions, Inc, a clear leader in the provision of healthcare technology, serving more than 150,000 physicians, 700 hospitals and nearly 7,000 post-acute and homecare organisations. Misys employs around 6,000 people who serve customers in more than 120 countries

source : Misys

ABSA Islamic Banking SA`s best

Absa Islamic Banking is the inaugural recipient of the 2009 Best Islamic Bank in South Africa award, according to the Islamic Finance news, a leading industry publication. The accolade, determined on a poll basis by the publication’s readers, recognises excellence, achievement and leadership in Islamic banking and finance. It is the first time that the awards are designated by country, and not by continent.

Amman Muhammad, Managing Director of Absa Islamic Banking, described the accolade as an “honour and a vote of confidence in our products and services from our customers across the globe”. He added: “The fact that this is the result of an international poll augurs well for our future growth and ongoing expansion of our suite of products.”

He added that at 98%, ABSA Islamic Banking boasts one of the best retention rates in the conventional banking environment; an achievement Muhammad attributes to the customers’ endorsement of Absa’s response to their needs. “ABSA Islamic Banking has certainly mastered the art of turning customer approval into tangible outputs, most notably in the form of awards,” he said.

In the recent past, Islamic Finance News voted Absa Islamic Banking as the Best Islamic Bank in Africa for two consecutive years – 2007 and 2008. The same publication had also bestowed Absa with the 2006 Shariah Deal of the Year award for South Africa. Most recently, the editors of the Global Finance Magazine – following extensive consultation with bankers, corporate finance executives and analysts throughout the world – voted ABSA Islamic Banking as the 2009 World’s Best Islamic Financial Institution Award in the category for the non-Gulf Cooperation Council Middle East/Africa region.

According to Global Finance Magazine, criteria that counted in Absa’s favour included its growth in profitability, its strategic relationships, new business development and innovation in products. “The winning banks were all noteworthy in their dedication to satisfying their customers’ needs in accordance with the rules of Islamic finance,” the magazine declared.

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