Transforming to Electronic

Islamic Finance & Commerce

Ismail Ali

ManagerProduct development – Banking Industry

B r i d g i n g t h e d i v i d e

ITS Overview

Geographical Coverage

ITS Profile

ITS Profile

Our Development Center

Banking Key Drivers

Key business drivers

Easier access to knowledge

Rapid advances

in technolo

gy

Globalization

Strategy for banking organizations

Short term planning cycles Proactive environment shaping Agility and ability to handle

continuous chaos to evolve competitive advantages

Long term planning ‘Fishbowl’ management Long lasting competitive

advantage

In the past Going forward

Deg

ree o

f ch

an

ge in

en

vir

on

men

t

Delivering Service Based Banking

B2B & B2C Affiliations & Collaboration of

Global Services

XML SOUP in financial services

B2B ScenarioB2B Scenario

Initial offering & discussion

Product rollout planning meeting

Distribution incentive for new product

Discussion Groups

Initial offering & discussion

Product rollout planning meeting

Distribution incentive for new product

Discussion Groups

Business Partners

Customers

Your Employees

Review partners input Match & make profiles

with products Meet with internal team

to discuss changes product release schedule Customer-centric product

design discussion Preparing marketing

campaigns

Review partners input Match & make profiles

with products Meet with internal team

to discuss changes product release schedule Customer-centric product

design discussion Preparing marketing

campaigns Internet Market-place Check related New

items. Finding the new

products based on profile

Internet Market-place Check related New

items. Finding the new

products based on profile

ITSHarnessing Technology

for

Innovative Islamic Banking

Software Windows

Key Islamic Banking Challenges

Key Business ComponentsRich

Customer InformationBackend

Integration

Audit Trail for all

Activities

System Administr-

ation Report & Forms Engine Deal Costing

& Pricing

Goods Inventory -

Vendors

Islamic Product Engine

Islamic Instrument

Engine

Islamic Business Models

Approval and Override

Users Profile and

Authority

Instrument and Product Engine

Modules & Features

• The System is designed to be an Islamic engine through creating Various Islamic Instruments based on Islamic business models and combination of Sharia’ah compliant business process sequence

Islamic Business Models

Modules & Features

Islamic Instrument Definition Engine

• Example: Murabahah Finance

[ Steps configuration ]

[ Items Selection ]

[ Instruments Listing ]

Modules & Features

• Example: Automobile Finance– Comprehensive system administration module for system and new

Products set-up

Islamic Product Definition Engine

Modules & Features

Profit Matrix• User defined factors &

criteria

• Supports multiple criteria

• Automatic profit rate at deal level

• Also Allow override at transaction level

Modules & Features

Example: Murabahah Deal

Rich Process Flow

3

2

4

5

6

87

Initiate deal

Send to approve1

Receive goods Issue

Purchase Order

Deliver goods

Approve or reject deal

Sign contract

Originate murabaha

Modules & Features

[ Entry Package Setup ]

[ Entry Leg Setup ]

Modules & Features

Accounting Entry Generator• The bank can attach accounting entries in

each step of the product workflow

Modules & Features

PURCHASING• Process purchase

order (PO)• Schedule goods

receipt in phases• Handle purchase

returns• Create & maintain

vendor & supplier information

• Handle purchase through agents/brokers

Modules & Features

ASSET CONSTRUCTION

• Track construction progress

• Schedule & track progress payments

• Handle payment deductions

• Create & maintain developer & consultant information

• Strong reporting engine for contracts, advices and statements printing

• Reports generation can assigned to workflow steps

Reporting Engine

Modules & Features

Key Benefits

Thank You

Please visit uswww.its.ws