3 rd Global Islamic Microfinance Forum 6 - 8 October 2013 Dusit Thani Hotel - Dubai

3rd Global Islamic Microfinance Forum6 - 8 October 2013

Dusit Thani Hotel - Dubai

Rohana Abdul Munim General Manager Malaysia

Head of Islamic Finance Strategic InitiativesPath Solutions

IT Solutions for the Islamic Microfinance Industry

3Powering Islamic Financial Markets

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


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


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


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 2010

India support office July 2013

Upcoming support center in Oman


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.

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 KateebChairman & CEO

Quality Code


Our People

1 2 3 4 5 6 7 8 9 10

1992 1997 2005 2006 2007 2008 2010 2011 2012 2013

6 20 64 120 205398 450 375 400 485

Employees Count

Year Employees

6 Employees in 1993

20+ Employees in 1997

64+ Employee in 2005



398 Employees in 2008






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


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


Our Products and Services

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 Services Offering include

Our Products Offering include

Islamic Core Banking Solution - iMAL Islamic Window Solution - iWINDOW Financial institutions, SMEs and Microfinance Organizations - iSHRAQ


iSHRAQ for Islamic Microfinance Industry


Common Components

Business Parties

Collaterals

Products & Assets

Service Bus

Back Office Core Banking Credit Bureaus Legacy Systems

• Portfolio & Asset management• Fund management• Sukuk management• Private equity

Investment

Islamic Financing

Islamic Treasury

General Ledger

Approval Workflow

Common Components

Swift

Data Mart

Security

Scheduled Tasks

iSHRAQ Product Suite


Functional Architecture

1

•Multiple Organization

2

•Multiple Companies

3

•Multiple Branches

4

•Multiple Currencies


Functional Architecture

5

•Multilingual / Localization

6

•Real Time Processing

7

•Back Date Transaction

8

•Task List


System Architecture – N Tier

Database Tier

Presentation Tier

Control Logic

Business Tier

Data Access Tier


iSHRAQ Product Suite – Technology Roadmap

• Application Server : .Net • Dbase : Oracle, MS-SQL

Existing

• Application Server : + JAVA • Dbase : + Sybase

Future


iSHRAQ*Finance – Main Components

Facility Management

Corporate and retail finance

contracts

Contract maintenance transactions

Business Parties

Approval Workflow Engine

Collaterals Management

Provision Management Charge scheme

Collection and Settlement

Limit Management

Scoring Scheme

Transaction, performance, and statistical reports


Business Entities in Finance – Legal Entities

Vendors

Sales Agents

Market makers

Credit information Providers

Constructors

Clearance companies

Central Banks

Banks

Guarantors

Financers

Customers

Employees

Financial Facilitator


Is Your Customer Credit Worthy?

Individual and Corporate Financial

Statements

External Credit Scoring

Weighing Individual and

Corporate parameters


Repayment – Setup

Define Installment Intervals

Define Profit Type (Fixed, Floating)

Define Profit Calculation Method

Define Profit Distribution Method


Charges – Setup

• Taxes• General

Insurance• Financial

Institution Fees

• Customer• Financial

Institution

• Per Transaction• Per Installment• Periodic

• Fixed• Variable

• Percentage• Base Rate +

Offset %• Multi Tier

Charge Category Payer

Charge Occurrenc

eCharges

Value


Collateral – SetupAsset Rating

Select Financial Product

Asset Selection + Coverage%


Approval Work Flow – Setup

• Individual

• Committee (Assembled/Circulating)

Assign Decision Making

• Review Only

• Decision

Define Number Of Nodes per Approval Work Flow

• Retail

• Corporate

Define Product

• Principle

• Profit Rate

• Others

Define Assessment Factor


Financial Product – Setup

Repayment PlanChargesCollaterals Others


Financial Product – Setup

Automatic matching between sub products and

applicants (based on applicant's attributes

)


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


Provision – Setup

Define Sectors

Define Financial Products

Set Provision Rate According To Debt Aging

Set Specific Customer

Set Specific Contract

Set Provision Value

Set Calculation Provision Period


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


Collection and Settlements

• Continuous Follow up until Payment

• Escalations, Customer Buckets’ Maintenance

• Follow up• Collector performance• Bucket performance• other

• SMS• Mails• Calls • Visits • Legal

• Customer Bucket Level 0• Customer Bucket Level 1• ….• Customer Bucket Level N

Bucket Criteria- Reminder- Past due - follow up

Collector - Collection Intelligent Notes.- Customer Contract, contacts details & Responses history

Customer Response

Reports


Collection and Settlements

Stan

ding

In

stru

ction

(SI)

Bank Transfer

Cash SettlementsMobile PaymentPayment

History/Tracking


Campaign Booking Follow-up & Maintenance Post-Maturity

iSHRAQ for Islamic Microfinance


Applicant visit

Application filling

Primary approval

Encouragement meetings

Commitment fee payment

Attendance tracking to induction course

Collection of attendance fee

Campaign



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

Booking



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

Follow-up

& Maintenance



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

Post Maturity



Thank You!

www.path-solutions.com

If you are interested to know more about iSHRAQ offering, please contact:

Rohana Abdul [email protected]

Mobile: +6012-3349020

mailto:[email protected]

http://www.youtube.com/watch?v=RNVGJkl2kxM

http://www.linkedin.com/company/path-solutions?trk=company_logo

https://twitter.com/PathSolutions

https://www.facebook.com/pathsolutions

192 Ahmad Block, New Garden Town, Lahore - Pakistan.Ph: (92-42) 35913096 - 98, Fax: (92-42) 35913056

Email: [email protected]

www.alhudacibe.com

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3 rd Global Islamic Microfinance Forum 6 - 8 October 2013 Dusit Thani Hotel - Dubai

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