Path Solutions, a specialist provider of banking software to Islamic banks and financial institutions, has signed Bank of Abyssinia (BoA) as its new customer.
The Ethiopia-based bank, which has over 4.6 million customers and 580+ branches and Islamic windows, will implement Path Solutions’ iMAL IslamicFinancing and iMAL ProfitCalculationSystem (PCS) for its Sharia-compliant operations.
“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,” comments Mohammed Kateeb, the group chairman and CEO of Path Solutions.
BoA is the first client for the vendor in the country.
Ethiopia first adopted Islamic banking through dedicated banking windows in 2011, and allowed the formation of full-fledged interest-free banks at the end of 2019.
BoA provides interest-free banking services under the “Ameen” brand.
“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 [Accounting and Auditing Organisation for Islamic Financial Institutions] Sharia and accounting standards”, says Abdulkadir Redwan, director – interest-free banking at BoA.
For its conventional banking operations, BoA is understood to be using Temenos’ Transact core banking system, which it installed a decade or so ago.