When you think of the underbanked, the Islamic world may not immediately come to mind. But the launch of Misys FusionBanking Essence Islamic banking solution suggests that the Finovate Best of Show winning banking innovator has been thinking about the sector for awhile.
Calling Islamic banking ripe for disruption, Mahmoud Tallat—product manager, FusionBanking Essence Islamic—pointed to the sector’s growth of more than 17% a year compared to its poor return on equity (12.6%) compared to the rest of the industry (25%). He also highlighted the importance of getting both Sharia-compliance and superior service right: A survey by PricewaterhouseCooper showed only 52% of Islamic banking customers believe their bank to be “truly Islamic.”
With regard to service, this means both providing the unique tools and resources required for Islamic banking, as well as increasing the number and quality of products available to customers. Misys notes that the average products per customer in conventional banking is more than twice that in Islamic banking (4.9 compared to 2.1).
Decades ago, Misys brought online the first Islamic bank in the United Kingdom, Al Rayan Bank, formerly the Islamic Bank of Britain. Misys believes that its platform experience—embrace of technology, 24/7 response, and social aspect—put it in the unique position to help “ambitious Islamic banks … accumulate new customers and increase their share of wallet.”
FusionBanking Essence Islamic features pre-configured, Sharia-compliant products, including Murabaha and Finance Ijara instruments. The platform uses these “pre-defined micro workflows” to give banks more control over individual elements of an Islamic banking product: In other words, it has already streamlined those regulatory elements that traditionally have made Islamic banking more complex and costly.
Founded in 1979 and headquartered in London, Misys has made three appearances on the Finovate stage, most recently in February at FinovateEurope 2015. Nadeem Syed is CEO.