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
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
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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
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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
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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
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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
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Our People
6 Employees
in 1993
20+ Employees
in 1997
64+ Employee
in 2005
120+ Employees in 2006
205+ Employees in 2007
398 Employees
in 2008
450 Employees
in 2010
375 Employees
in 2011
400 Employees
in 2012
485 Employees
in 2013
Employees Count
1997
1992
6
1
20
2
2005
64
3
2006
Year
Employees
2007
2008
120
205
4
5
2010
2011
2012
398
450
375
400
6
7
8
9
2013
485
10
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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
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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
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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
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iSHRAQ for Islamic Microfinance Industry
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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
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Functional Architecture
1
2
3
4
• Multiple Organization
• Multiple Companies
• Multiple Branches
• Multiple Currencies
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Functional Architecture
5
6
7
8
• Multilingual / Localization
• Real Time Processing
• Back Date Transaction
• Task List
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System Architecture – N Tier
Presentation Tier
Control Logic
Business Tier
Data Access Tier
Database
Tier
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iSHRAQ Product Suite – Technology Roadmap
Existing
• Application Server
• Dbase
: .Net
: Oracle, MS-SQL
Future
• Application Server
• Dbase
: + JAVA
: + Sybase
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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
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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
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Is Your Customer Credit Worthy?
Individual and
Corporate Financial
Statements
External Credit
Scoring
Weighing
Individual and
Corporate
parameters
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Repayment – Setup
Define Installment Intervals
Define Profit Type (Fixed, Floating)
Define Profit Calculation Method
Define Profit Distribution Method
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Charges – Setup
•Taxes
•General Insurance
•Financial Institution
Fees
•Fixed
•Variable
•Percentage
•Base Rate + Offset %
•Multi Tier
•Customer
•Financial Institution
Charge
Category
Payer
Charges
Value
Charge
Occurrence
•Per Transaction
•Per Installment
•Periodic
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Collateral – Setup
Asset Rating
Select Financial Product
Asset Selection + Coverage%
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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
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Financial Product – Setup
Define Rule
Violation
Define Rules And
Behavior
Eligibility Criteria
Choose From The
Created
Select Product
Component
• Repayment Plan
• Charges
• Collaterals
• Others
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Financial Product – Setup
Automatic
matching between
sub products and
applicants (based
on applicant's
attributes )
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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
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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
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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
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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
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Collection and Settlements
Cash
Settlements
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iSHRAQ for Islamic Microfinance
Campaign
Booking
Follow-up &
Maintenance
Post-Maturity
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iSHRAQ for Islamic Microfinance
 Applicant visit
 Application filling
 Primary approval
 Encouragement meetings
 Commitment fee payment
 Attendance tracking to induction course
 Collection of attendance fee
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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
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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
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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
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If you are interested to know more about iSHRAQ offering,
please contact:
Rohana Abdul Munim
Rmunim@path-solutions.com
Mobile: +6012-3349020
Thank You!
www.path-solutions.com
Powering Islamic Financial Markets
37
192 Ahmad Block, New Garden Town, Lahore - Pakistan.
Ph: (92-42) 35913096 - 98, Fax: (92-42) 35913056
Email: info@alhudacibe.com
www.alhudacibe.com