Path Solutions announced the signing of a new partnership agreement with Bank of Abyssinia, one of the leading banks in Ethiopia serving more than 4.6 Million customers through 580+ branches and Islamic windows.
Mohammed Kateeb, the Group Chairman & CEO of Path Solutions commented, “I am delighted to welcome BoA to our growing list of partners in Africa. We’ve got an impressive track record of working with financial institutions in integrating our AAOIFI-certified suite of services with their existing core banking platform, whether conventional or Islamic. 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”.
Ethiopia has recently allowed the formation of full-fledged interest-free banks, and thus several banks are currently planning to convert to Islamic or raising fund to start Islamic banking services. However, most technology and software solutions in the country are designed for the conventional banking infrastructure. A pure Islamic software, certified by AAOIFI such as iMAL from Path Solutions can be seamlessly incorporated into an Islamic financial institution, and it can be integrated with any conventional core banking platform to enable the organization to compete more effectively in this competitive business environment.
“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 Sharia and accounting standards”, said Abdulkadir Redwan, Director – Interest Free Banking at BoA. “Our partnership with Path Solutions is vital to ensure all Islamic requirements are met for our stakeholders, and to compete in the rapidly changing Islamic financial landscape in the country. The iMAL*PCS deployment will enable us to utilize the net income during the calculation period and distribute it among investors according to the Sharia guidelines. In addition to its advanced automation capabilities, this all-inclusive system will allow us to offer new Sharia-compliant products to our customers with a truly differentiated customer experience”.
BoA represents the first signing for Path Solutions in Ethiopia. Driven by ambitious objectives and the lure of new untapped markets, more and more IT vendors are looking to expand in Africa. Path Solutions has a long history of addressing the special needs of Islamic banks in the African continent, particularly with the provision of AAOIFI-certified software solutions and services.