ETHIX-Finance

ARCHITECTURE

With the use of SOA technology, ETHIX-Finance o�ers an application architecture which conveniently supports agile and business processes management. In order to facilitate simple as well complex business processes, ETHIX-Finance is able to integrate all third-party applications including in-house banking software. Produced with a comprehensive array of functions, ETHIX-Finance is also designed to provide prompt and accurate reports.

KEY FEATURES

Instrument De�nition Engine (IIDE)ETHIX-Finance is highly �exible system through Islamic Instrument De�nition Engine (IIDE) in which banking and �nancial institutions are easily able to structure and engineer various Islamic Business Models from the Islamic Banking Business Lines. The IIDE enables �nancial institutions to respond to market needs quickly and e�ciently.

Transaction steps management ETHIX-Finance can provide a bank or �nancial institution with the facility to customize the operational based transaction steps. Produced in accordance with the Shari’a based steps, ETHIX-Finance o�ers full �exibility for a range of business and needs. In addition, with the facility to add user de�ned steps, the ETHIX-Finance tool allows a bank to handle both operational and Shari’a requirements.

Credit scoring facility The ETHIX-Finance credit scoring tool allows the user to compute a comprehensive credit score for the customer. The function is based on a parameterized algorithm and uses pre-de�ned parameters including the customer’s salary, occupation, and relationship with the bank, any other liabilities and past defaults.

Cash �ow engine and pro�t calculation The cash �ow component of ETHIX-Finance has been developed in accordance with the IAS-18 and IAS-39 accounting rules and covers the pro�t based on the actual Net Present value and XIRR. The system calculates the XIRR and generates the earning plan based on the international accounting standards.

Transaction journal and audit trail By o�ering the facility of a transaction journal, ETHIX-Finance allows the user to review all transactions at any time. The audit trail contains all administration parameters which then records old and new values together with username, date and time.

Backend support ETHIX-Finance is integrated with the Core Banking system as the backend transaction processing application. The Core Banking System serves as the backbone for accommodating the following features and functionalities of ETHIX-Finance:

Customer information management Financing information Bank general ledger

Fees & charges ETHIX-Finance allows the user to pre-de�ne di�erent fees and charges, which cover the following:

All or partial amount of total fee All or partial amount of total fee of the transaction repayment valueCharge and collect fee amount separately as lump sum or installments

Comprehensive application securityThrough a comprehensive system of access rights, ETHIX-Finance o�ers an e�ective security system. With a multi-level authorization mechanism the user has control on all vital information and is also able to implement the following:

Assign privileges and permissions to user groups Encrypt user passwords on screen and in databaseIntegrate with Domain Active Directory

Deal tracking facility Deal tracking o�ers an important tool for key personnel within �nancial institutions and banks across the globe. The facility logs every contract and transaction in the database and keeps a permanent record of the action as well as the date, time and name of the person responsible for each step in the process. Application tracking helps monitor contracts at all stages as well as highlights problems and mistakes in the work�ow.

Regional Islamic and international practices ETHIX-Finance is fully compliant with the Islamic Shari’a guidelines and conforms fully with the AAOIFI and IAS Accounting Standards.

Accessing informationETHIX-Finance provides the facility to conduct real time information gathering on any transaction, contracts and accounting details. The facility also allows the user to obtain relevant information while completing a transaction. Listed below are examples of information available:

User‐speci�c applications All applications Installments Customer previous deals Financial accounts Blacklisted customers Customer statements Inventory items Customer’s rim portfolio Group limit inquiry Facility limit Guarantor information Commitment tree Customer/ bank relationship

Additional utility services ETHIX-Finance provides a number of utility services including a pro�t matrix and transaction reviews. The pro�t matrix is a fully parameterized tool for de�ning pro�t and uses both �xed and variable rates depending on the product market. The transaction review facility o�ers supervisors and managers the convenience of an additional text �eld for comments, notes and actions.

ETHIX-Finance OverviewIslamic banking is emerging as an alternative source of banking and the products and services o�ered are fundamentally di�erent from those of conventional banking. As Islamic banks develop, technology is becoming a key enabler for future business.

ETHIX-Finance o�ers an integrated and comprehensive system for �nancial institutions and banks to deliver Shari’a-compliant products.

Produced in accordance with Shari’a guidelines ETHIX-Finance is in full compliance with the Accounting and Auditing Organizations (AAOIFI) and the International Accounting Standards (IAS). As a stand alone module, ETHIX-Finance is easy to integrate and o�ers full support through cleverly designed accounting backend functionalities with Straight through Processing (STP).

Customer & Market Customer & Market Access Modes of Financing Modes of Funding

Financing Product De�nition Engine

Customer Information Management

What-If-Analysis Tool/Credit Score

Deal Processing

Deal Payment Rescheduling

Liability Transfer

Postponing Installments

Early Settlement

Deal Collections

Islamic Instrument De�nition Engine

Income/Pro�t Recognition

Guarantee/Collateral Control

Banks’ Own Capital Resources

Managed Investment Funds

Parallel or Back-to-Back Financing

BASEL II Compliance

Regulatory Compliance

Debt Servicing

Early Payment Rebates

Business Operations Management and Support

Core Business Operations

Business Resource Management

Financing Operation Lease Operation Investment Operations

Inventory Management Fleet Management Real Estate Management

Financial Resources Management

Accounts Payable General Ledger

ARCHITECTURE

With the use of SOA technology, ETHIX-Finance o�ers an application architecture which conveniently supports agile and business processes management. In order to facilitate simple as well complex business processes, ETHIX-Finance is able to integrate all third-party applications including in-house banking software. Produced with a comprehensive array of functions, ETHIX-Finance is also designed to provide prompt and accurate reports.

KEY FEATURES

Instrument De�nition Engine (IIDE)ETHIX-Finance is highly �exible system through Islamic Instrument De�nition Engine (IIDE) in which banking and �nancial institutions are easily able to structure and engineer various Islamic Business Models from the Islamic Banking Business Lines. The IIDE enables �nancial institutions to respond to market needs quickly and e�ciently.

Transaction steps management ETHIX-Finance can provide a bank or �nancial institution with the facility to customize the operational based transaction steps. Produced in accordance with the Shari’a based steps, ETHIX-Finance o�ers full �exibility for a range of business and needs. In addition, with the facility to add user de�ned steps, the ETHIX-Finance tool allows a bank to handle both operational and Shari’a requirements.

Credit scoring facility The ETHIX-Finance credit scoring tool allows the user to compute a comprehensive credit score for the customer. The function is based on a parameterized algorithm and uses pre-de�ned parameters including the customer’s salary, occupation, and relationship with the bank, any other liabilities and past defaults.

Cash �ow engine and pro�t calculation The cash �ow component of ETHIX-Finance has been developed in accordance with the IAS-18 and IAS-39 accounting rules and covers the pro�t based on the actual Net Present value and XIRR. The system calculates the XIRR and generates the earning plan based on the international accounting standards.

Transaction journal and audit trail By o�ering the facility of a transaction journal, ETHIX-Finance allows the user to review all transactions at any time. The audit trail contains all administration parameters which then records old and new values together with username, date and time.

Backend support ETHIX-Finance is integrated with the Core Banking system as the backend transaction processing application. The Core Banking System serves as the backbone for accommodating the following features and functionalities of ETHIX-Finance:

Customer information management Financing information Bank general ledger

Fees & charges ETHIX-Finance allows the user to pre-de�ne di�erent fees and charges, which cover the following:

All or partial amount of total fee All or partial amount of total fee of the transaction repayment valueCharge and collect fee amount separately as lump sum or installments

Comprehensive application securityThrough a comprehensive system of access rights, ETHIX-Finance o�ers an e�ective security system. With a multi-level authorization mechanism the user has control on all vital information and is also able to implement the following:

Assign privileges and permissions to user groups Encrypt user passwords on screen and in databaseIntegrate with Domain Active Directory

Deal tracking facility Deal tracking o�ers an important tool for key personnel within �nancial institutions and banks across the globe. The facility logs every contract and transaction in the database and keeps a permanent record of the action as well as the date, time and name of the person responsible for each step in the process. Application tracking helps monitor contracts at all stages as well as highlights problems and mistakes in the work�ow.

Regional Islamic and international practices ETHIX-Finance is fully compliant with the Islamic Shari’a guidelines and conforms fully with the AAOIFI and IAS Accounting Standards.

Accessing informationETHIX-Finance provides the facility to conduct real time information gathering on any transaction, contracts and accounting details. The facility also allows the user to obtain relevant information while completing a transaction. Listed below are examples of information available:

User‐speci�c applications All applications Installments Customer previous deals Financial accounts Blacklisted customers Customer statements Inventory items Customer’s rim portfolio Group limit inquiry Facility limit Guarantor information Commitment tree Customer/ bank relationship

Additional utility services ETHIX-Finance provides a number of utility services including a pro�t matrix and transaction reviews. The pro�t matrix is a fully parameterized tool for de�ning pro�t and uses both �xed and variable rates depending on the product market. The transaction review facility o�ers supervisors and managers the convenience of an additional text �eld for comments, notes and actions.

Finance Lease

InvestmentTrading

• Murabahah and Reverse Murabaha• Musawamah• Tawarruq• Istisna’ and Parallel Istisna’a• Bai’ Salam and Parallel Bai’ Salam• Qard Hasan• Wakalah

• Cash Sell• Permanent Musharakah• Diminishing Musharakah• Mudarabah

• Ijarah Muntahia Bitamleek• Ijarah Mausaufa Fi Zimmah• Operating Ijarah

ETHIX-Finance INSTRUMENTS

ETHIX-Finance has been created and developed to help Finance users in di�erent major business areas of �nancing, leasing and investment. As a result, the product comprises of designed features which make it powerful, functional, and secure as well as user friendly.

1. Finance facility (debt based facility)

Murabahah and Reverse Murabaha MusawamahTawarruqIstisna’a and Parallel Istisna’aBai’ Salam and Parallel Bai’ SalamQard Hasan WakalahEtc……

2. Lease facility (debt based facility)Ijarah Muntahia Bitamleek Ijarah Mausaufa Fi ZimmahOperating IjarahEtc….

3. Investment facility (participation based facility)

Permanent Musharakah Diminishing Musharakah Mudarabah Etc…

4. Trading facilityCash SellEtc…

KEY BENEFITS

Functionality: Through the use of various Finance mechanisms, ETHIX-Finance can provide retail and corporate businesses with a comprehensive range of facilities. Shari’a compliant, the �nance product is designed for processing both asset as well as cash based �nance contracts.

Flexibility: ETHIX-Finance has developed an Islamic Instrument De�nition Engine (IIDE) which allows �nancial institutions to structure and engineer various Islamic Business Models from the Islamic Banking Business Lines. The IIDE enables �nancial institutions to respond to market needs quickly and e�ciently.

Product Flexibility: By developing new products within minutes ETHIX-Finance speeds up product management considerably. Such products can adapt easily to the business line and the set strategy.

Coverage: By delivering an exceptional set of Finance transactions, ETHIX-Finance can provide a wide range of business facilities. Integrated with the Work�ow Management System (WMS), the Finance product also allows business processes to be completed in a smooth and user-friendly manner.

Scalability: ETHIX-Finance is a highly scalable system which has the capability to process a number of monetary transactions ranging from a few hundred to millions and across small, medium and large size businesses. The features of the scalability ensure the Finance system is capable of meeting the growth and expansion requirements of any �nancial institution without a�ecting the performance and regular business.

Marketing: ETHIX-Finance is customer focused and provides a clear and individual view of the client pro�le.

Access: ETHIX-Finance captures, manages and stores central information related to all �nancial transactions. These include transaction information, �nancial accounting transactions, suppliers, guarantors, �nanced assets, insurance details, credit scoring as well as other relevant information. Captures, manages and maintains central information related to the �nancing deals such as deal information, �nancial accounting transactions, suppliers, guarantors, �nanced assets, insurance details, credit scoring and other relevant information.

Multi‐currency support: ETHIX-Finance can process �nancing transactions in any required currency. To accommodate the purpose, ETHIX-Finance captures and updates regularly FOREX rates received from either integrated Treasury Applications or Core Banking Systems.

Reporting and documentation : ETHIX-Finance provides a wide range of built in reports, forms and contracts. ETHIX-Finance can also o�er the �exibility to add and modify existing reports without the requirement of high level IT knowledge. In addition to the existing reports, the system’s central data information is accessible through any standard reporting database tool.

Multilanguage support: ETHIX-Finance is both Arabic / English enabled and can support any other languages supported by Windows Operating System. All screens, forms, contracts, vouchers and reports are bilingual and generated automatically as per the preferred language. The translation of system labels as well as message boxes is made easy by the use of a standard spreadsheet.

Integration: ETHIX-Finance can be integrated into any existing core banking system or ERP system for �nancial institutions. This is due to ETHIX-Finance's global standardization.

GROW YOUR BUSINESS WITH

COMPREHENSIVE SOLUTIONFOR ISLAMIC BANKING

THE NEXT BANKINGGENERATION IS ISLAMIC BANKING

About ITS The next banking generation is Islamic BankingAs a recognized market leader, ITS o�ers unprecedented experience in providing IT infrastructures and software solutions to banks and �nancial institutions worldwide. With a proven track record for successfully implementing �nancial software products within both Islamic and conventional organizations, ITS is regarded as a key solutions provider. Established in 1981, ITS now has a portfolio of more than 150 clients across the globe and is the preferred choice for a growing number of businesses, banks and �nancial institutions. With a team of dedicated professionals, ITS can o�er a range of customized IT services and solutions including fast track implementation, total business solutions as well as providing continuous customer support. Over the years, ITS has gained many awards and certi�cations for Finance Modules including the AAOIFI certi�cation in December 2009. Headquartered in Kuwait, ITS has a wide geographical presence with currently 23 o�ces in the MENA region.

ITS Headquarter Mubarak Al Kabir Street, ITS Tower, Kuwait CityTelephone: (965) 180 3300 / 2240 9100 Fax: (965) 22408664© 2012 ITS – all rights reserved. Warning: This document is protected by copyright law and international treaties. Unauthorized reproduction of this document, or any portion of it, may result in severe and criminal penalties, and will be prosecuted to the maximum extent possible under law.

Best IT solutions Provider in Islamic Finance Industry IIFF – IIR Middle

East, Dubai(April’ 2009)

Best Technology Solutions ProviderWIBC’08, Bahrain

(Nov’ 2008)

Best Technology Provider

Islamic Business & Finance 2008

Best Islamic Financial IT

ProviderWorld Finance (April’ 2009)

AAOIFICerti�cation 2009