ADDIS ABABA – Path Solutions announced on Wednesday the signing of a new partnership agreement with the Bank of Abyssinia (BoA), one of the leading banks in Ethiopia.
The bank currently serves more than 4.6 million customers through 580+ branches and Islamic windows.
Path Solution, a global provider of AAOIFI-certified software solutions and services for Islamic banks and financial institutions, said it has added the Bank to its fast-growing client base.
Bank of Abisinay will be implementing its systems for its Islamic window operations, said the IT firm in a statement.
One of the systems, iMAL*PCS, provides end-to-end capabilities to manage the entire profit calculation and distribution cycle, making Islamic profit distribution highly efficient, it added.
The process automation coupled with a complete set of dashboard data analytics capabilities gives decision-makers of Islamic financial institutions the tools to make fast and accurate decisions.
The solution includes innovative pool structures and profit distribution rates to ensure customer satisfaction is maximized in accordance with Sharia principles.
Mohammed Kateeb, the Group Chairman and CEO of Path Solutions said he was delighted to welcome Bank of Abissinia to the company’s growing list of partners in Africa.
“BoA’s decision to entrust our Sharia-compliant profit calculation and distribution system is testament to our ability to effectively address the business pains financial institutions are experiencing, and the severe consequences for Sharia non-compliance,” he said.
Ethiopia has recently allowed the formation of full-fledged interest-free banks, and thus several banks are currently planning to convert to Islamic or raising fund to start Islamic banking services.
However, most technology and software solutions in the country are designed for the conventional banking infrastructure.
“After much research and due diligence on Islamic banking software, we chose Path Solutions’ iMAL for its broad and comprehensive set of features, flexibility, and compliance with AAOIFI’s Sharia and accounting standards”, said Abdulkadir Redwan, Director – Interest-Free Banking at BoA.
“The iMAL*PCS deployment will enable us to utilize the net income during the calculation period and distribute it among investors according to the Sharia guidelines,” he said.
BoA represents the first signing for Path Solutions in Ethiopia.