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3rd Global Islamic Microfinance Forum' 2013


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AlHuda-Centre of Islamic Banking and Economics (CIBE) is a well known name in Islamic Banking and Finance sector which focuses on training, awareness, advisory and publications on Islamic Banking & Finance in order to promote the industry. AlHuda CIBE has organized a successful Conference "3rd Global Islamic Microfinance Forum" held on 6th & 7th October, 2013 in Dubai. AlHuda CIBE is very much pleased to share the topics and presentations being held in the Forum.

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3rd Global Islamic Microfinance Forum' 2013

  1. 1. IT Solutions for the Islamic Microfinance Industry 3rd Global Islamic Microfinance Forum 6 - 8 October 2013 Dusit Thani Hotel - Dubai Rohana Abdul Munim General Manager Malaysia Head of Islamic Finance Strategic Initiatives Path Solutions
  2. 2. Possible Challenges in Islamic Microfinance  Financial products that comply with Shariah law  Diversity of products to cater for the Islamic Microfinance requirements  Sustainable business models that incorporate operational efficiency and risk management  IT solution that can support and drive the Islamic Microfinance activity  Capacity building at both the macro and micro levels  Sources of funding Powering Islamic Financial Markets
  3. 3. Ultimate Goal for the Islamic Microfinance Industry  Create successful and prudent Microfinance sector that can bring impact to the socio economic development among the poor  Moving from poverty alleviation to entrepreneurial development as a natural progression and outcome of the Microfinance program  Create growth and self-sustainable Microfinance organizations, and reduce reliance on external sources of funding  Microfinance as an effective platform for financial inclusion among the unbanked, voluntarily or involuntarily financial excluded segment Powering Islamic Financial Markets
  4. 4. Usage of IT in Islamic Finance and Microfinance  Systematic data management, consolidation and reporting  Bird’s eye view of the organization achievement and growth  Improve productivity and efficiency at both operational and business level  Shariah compliant processes and behaviour  Support diversity of products and innovation  Support growth and sustainability of the organization  Proper risk management and reporting Powering Islamic Financial Markets
  5. 5. About Path Solutions Path is a Kuwaiti Shareholding Company Founded in (as an IT Consultancy Firm) November 1992 Beirut development center October 2000 Bahrain support office October 2003 London support office February 2007 Kuala Lumpur support office September 2007 Karachi support office April 2009 Riyadh support office August 2009 Jakarta support office November 2009 Khartoum support office December 2009 Egypt( development center), Dubai, Kenya, Singapore India support office 2010 July 2013 Upcoming support center in Oman Powering Islamic Financial Markets
  6. 6. Our Vision To be the most trusted and innovative provider of information technology solutions and services for the global financial industry & in specific the Islamic Financial industry. Quality Code High quality in our products and services is vital to the success of our customers and partners. In helping our customers and partners become successful, we must strive to maintain the highest ethical standards and integrity. To achieve these goals, it is our policy to involve all employees in programs to improve our products, services, and the productivity of our internal processes. Mohammed Kateeb Chairman & CEO Powering Islamic Financial Markets
  7. 7. Our People 6 Employees in 1993 20+ Employees in 1997 64+ Employee in 2005 120+ Employees in 2006 205+ Employees in 2007 398 Employees Employees Count Year in 2008 450 Employees in 2010 375 Employees in 2012 2005 2006 2007 2008 2010 2011 2012 2013 in 2011 400 Employees 1997 1992 Employees 398 6 485 Employees in 2013 1 20 2 64 3 120 4 5 450 375 6 7 8 9 485 400 205 10 Powering Islamic Financial Markets
  8. 8. Our Expert Resources Path team constitutes of full time consultants in the areas of: Finance Banking & Investment IT development System Engineering Accounting, Internal & System audit Powering Islamic Financial Markets
  9. 9. Area of Focus Path offering consists of integrated business solutions and services for the following major business segments: Islamic Banks Islamic Investment Companies Islamic Consumer Finance Companies Islamic Microfinance Institutions Universal Banks Investment Companies and Fund Managers Financing Companies Powering Islamic Financial Markets
  10. 10. Our Products and Services Our Services Offering include Project management Business and technology consulting Systems integration Business continuity planning (Make sure of the plan ) Customization - address clients specific needs (Plan matching with the solution) On going maintenance and first line of support Our Products Offering include Islamic Core Banking Solution - iMAL Islamic Window Solution - iWINDOW Financial institutions, SMEs and Microfinance Organizations - iSHRAQ Powering Islamic Financial Markets
  11. 11. iSHRAQ for Islamic Microfinance Industry Powering Islamic Financial Markets
  12. 12. iSHRAQ Product Suite Investment Common Components Swift • Portfolio & Asset management • Fund management • Sukuk management • Private equity Data Mart Islamic Financing Scheduled Tasks Common Components Approval Workflow Business Parties Collaterals Islamic Treasury Products & Assets Security General Ledger Service Bus Back Office Core Banking Credit Bureaus Legacy Systems Powering Islamic Financial Markets
  13. 13. Functional Architecture 1 2 3 4 • Multiple Organization • Multiple Companies • Multiple Branches • Multiple Currencies Powering Islamic Financial Markets
  14. 14. Functional Architecture 5 6 7 8 • Multilingual / Localization • Real Time Processing • Back Date Transaction • Task List Powering Islamic Financial Markets
  15. 15. System Architecture – N Tier Presentation Tier Control Logic Business Tier Data Access Tier Database Tier Powering Islamic Financial Markets
  16. 16. iSHRAQ Product Suite – Technology Roadmap Existing • Application Server • Dbase : .Net : Oracle, MS-SQL Future • Application Server • Dbase : + JAVA : + Sybase Powering Islamic Financial Markets
  17. 17. iSHRAQ*Finance – Main Components Approval Workflow Engine Contract maintenance transactions Collection and Settlement Business Parties Corporate and retail finance contracts Facility Management Collaterals Management Provision Management Charge scheme Limit Management Transaction, performance, and statistical reports Scoring Scheme Powering Islamic Financial Markets
  18. 18. Business Entities in Finance – Legal Entities Vendors Sales Agents Employees Market makers Customers Credit Financial Facilitator Financers informatio n Providers Guarantors Constructors Clearance Banks companies Central Banks Powering Islamic Financial Markets
  19. 19. Is Your Customer Credit Worthy? Individual and Corporate Financial Statements External Credit Scoring Weighing Individual and Corporate parameters Powering Islamic Financial Markets
  20. 20. Repayment – Setup Define Installment Intervals Define Profit Type (Fixed, Floating) Define Profit Calculation Method Define Profit Distribution Method Powering Islamic Financial Markets
  21. 21. Charges – Setup •Taxes •General Insurance •Financial Institution Fees •Customer •Financial Institution Charge Category Charges Value •Fixed •Variable •Percentage •Base Rate + Offset % •Multi Tier Payer Charge Occurrence •Per Transaction •Per Installment •Periodic Powering Islamic Financial Markets
  22. 22. Collateral – Setup Asset Rating Select Financial Product Asset Selection + Coverage% Powering Islamic Financial Markets
  23. 23. Approval Work Flow – Setup Assign Decision Making Define Number Of Nodes per Approval Work Flow Define Product Define Assessment Factor • Individual • Committee (Assembled/Circulating) • Review Only • Decision • Retail • Corporate • Principle • Profit Rate • Others Powering Islamic Financial Markets
  24. 24. Financial Product – Setup Define Rule Violation Define Rules And Behavior Eligibility Criteria Choose From The Created Select Product Component • Repayment Plan • Charges • Collaterals • Others Powering Islamic Financial Markets
  25. 25. Financial Product – Setup Automatic matching between sub products and applicants (based on applicant's attributes ) Powering Islamic Financial Markets
  26. 26. Limit Management Levels • Transaction • Per Period • Exposure Factors • Financial Product Class or Investment Asset Class • Financial Product or Investment Asset • Currency • Customer Sector/Category/specific • Customer • Region/Nationality • User Group/specific user Powering Islamic Financial Markets
  27. 27. Provision – Setup Define Sectors Define Financial Products Set Provision Rate According To Debt Aging Set Provision Value Set Specific Contract Set Specific Customer Set Calculation Provision Period Powering Islamic Financial Markets
  28. 28. Contract Maintenance Transactions Change Orders Full Early Settlement Partial Early Settlement Contract Revolving Contract Switching Reschedule Repayment Plans Merging Profit and Expenses Declaration Installment Dropping Item Sale Contract Termination Powering Islamic Financial Markets
  29. 29. Collection and Settlements • Customer Bucket Level 0 • Customer Bucket Level 1 • …. • Customer Bucket Level N Bucket Criteria - Reminder - Past due - follow up Reports • Follow up • Collector performance • Bucket performance • other Collector - Collection Intelligent Notes. • SMS • Mails • Calls • Visits • Legal - Customer Contract, contacts details & Responses history Customer Response • Continuous Follow up until Payment • Escalations, Customer Buckets’ Maintenance Powering Islamic Financial Markets
  30. 30. Collection and Settlements Cash Settlements Powering Islamic Financial Markets
  31. 31. iSHRAQ for Islamic Microfinance Campaign Booking Follow-up & Maintenance Post-Maturity Powering Islamic Financial Markets
  32. 32. iSHRAQ for Islamic Microfinance  Applicant visit  Application filling  Primary approval  Encouragement meetings  Commitment fee payment  Attendance tracking to induction course  Collection of attendance fee Powering Islamic Financial Markets
  33. 33. iSHRAQ for Islamic Microfinance  Collection of required financing application documents  Agreement on financing amount and repayment tenure  Final Approval  Takaful coverage  Group forming, leader selection, and setting the periodical meeting date / location  Financing disbursement Powering Islamic Financial Markets
  34. 34. iSHRAQ for Islamic Microfinance  Periodical meetings for payment collection  Periodical visits to follow up on the usage of fund  Maintenance for the financing facility:  Financing rescheduling  Early settlement  Financing cancellation  Arbitration closures Powering Islamic Financial Markets
  35. 35. iSHRAQ for Islamic Microfinance  Compliance with Microfinance program will allow members to:  Apply other financing programs before or after current financing maturity  Apply similar financing program after its maturity with greater amounts Powering Islamic Financial Markets
  36. 36. If you are interested to know more about iSHRAQ offering, please contact: Rohana Abdul Munim Mobile: +6012-3349020 Thank You! Powering Islamic Financial Markets
  37. 37. 192 Ahmad Block, New Garden Town, Lahore - Pakistan. Ph: (92-42) 35913096 - 98, Fax: (92-42) 35913056 Email: