8. These ambitious yet realistic targets can only be achieved through partnerships with leading Islamic banking IT solutions providers. IT solution built for Islamic banking Currently Islamic banks are taking giant strides in technology, attempting to equal and surpass the IT based customer services offered by conventional banks. Modular architecture is the key – Building Blocks approach is what suits most established as well as new banks. The ability to plug and play will surely emerge as the key. In this task, acquisition of ready-made modern pluggable components that can integrate smoothly will be an important consideration Leading Islamic banking IT solutions providers should provide modular component based solution.
9. An IT solution built for Islamic banking Built on the Shari’ah rules & regulations (imbedded the related information capturing features) Facilitate the set-up & ease of tracking RIAs across the system & provide information on timely basis Support proper recording, tracking & management of URIAs, the pools of funds; & compute Profit in efficient timely manner Produce the industry related standard accounting entries & allow the related booking methods of the transactions Allow producing legal documents & confirmations according to the industry standards & the Sharia Rules and regulations; matching with the transaction type Support Sharia Audit procedures (transaction processing log and maintenance of legal documentation) Support customer centricity & CRM & Zakat computation Easily integrate with other applications for data mining Support regulations and Risk Management procedures Support multiple delivery channels
10. IT Challenges resulting from industry’s globalization Flexibility to cater for the distinguishing aspects of a geographical area or specific country in timely manner: quick time-to-market and ROI Income tax and VAT computations Produce consolidated financial statements & compliance to AAOIFI Standards Flexible profit distribution to cover the different approved policies and procedures by the Sharia Board Cover regulatory reporting requirements by country Open architecture that allows interfacing with local central banks or regulatory institutions Engage Islamic Banking subject-matter experts with strong and deep industry knowledge and enough exposure to the industry’s specific operations