Kuwait Finance House (“KFH”) Successfully completed the upgrade of its fully automated STP Islamic Treasury solution

KFH customers can look forward to benefitting from best practices and enhanced features of the new Path Solutions’ Java-based platform iMAL R14.1, allowing them to offer a wider range of Islamic Treasury products and services based on specific requirements to its customers around the world

Path Solutions, announced that Kuwait Finance House (“KFH”), Kuwait’s Islamic banking pioneer has successfully completed the upgrade of its fully automated Straight Through Processing (STP) IslamicTreasury solution to the new Path Solutions’ Java-based platformiMAL R14.1, as of 21st February.

KFH, considered a pioneer in Islamic finance or Sharia-compliant banking, was established in 1977 as the first bank operating in accordance with the Islamic Sharia, and today it is one of the foremost Islamic financial institutions in the world.

The successful Go Live signifies a pivotal point in KFH’s development. Built on an open architecture and developed in Java, the iMAL R14.1 allows the bank to take advantage of the digitalization, flexibility, reliability, scalability and portability that this new Islamic Treasury platform offers.

“KFH constantly invests to enhance its systems by implementing latest technology and innovative solutions to

Kuwait Finance House

ensure we offer world-class products and services to our customers”, said KFH Acting Group CEO, Abdulwahab Al-Roshood.

Al-Roshood added, “We are happy to have completed the successful upgrade of our Islamic Treasury solution to iMAL R14.1 in a smooth and timely manner. With the new Sharia-compliant fully STP automated Islamic Treasury platform, our customers will benefit from the best practices and enhanced features that Path Solutions has invested in the software since our last implementation. Moreover, we will be able to continue to scale in line with our growth strategy and stay ahead of industry trends as we continue to expand into new segments”.

Mohammed Kateeb, Group Chairman & CEO, Path Solutions, commented, “Collaboration is vital in order to stay ahead of in an ever-changing financial landscape. By collaborating with our clients to help them identify key customer expectations that will enhance their daily processes and interactions, and investing around 30% in R&D, we ensure that we remain the industry leader in Islamic software solutions. iMAL R14.1 will empower KFH to be future-ready, given the rapid digital disruption that the segment is facing. The result is a dynamic ecosystem of innovation that will only drive incremental growth and customer satisfaction. We look forward to continuing to work with our long-standing partner KFH and our clients all over the world to modernize their platform and bring real-time and fully digital banking services to their customers”.

Meanwhile, Treasury GM – KFH Group, Ahmad Eissa Al-Sumait mentioned that the successful implementation and Go Live of the new Islamic Treasury solution that is fully automated with Reuters, Bloomberg and 360T at KFH Group will improve the performance of all treasury functions at the bank. “KFH can now offer a wider range of Islamic Treasury products and services based on specific requirements to its customers all over the world”.

He further expressed his gratitude and appreciation to Path Solutions and KFH teams for their dedication and great efforts in implementing the new system remotely due to COVID-19 lockdowns while ensuring a high quality and stable production environment. All channels and surround systems were verified and got satisfactory results.

Companies call for greater financing support from Covid-19 fallout

As almost nearly 88 per cent of companies say that their banking needs have changed because of the pandemic, Hind Salim Eisa Executive Vice President and Head of Services and Manufacturing at Mashreq Bank says that more flexible and responsive finance solutions are essential

Companies in the UAE are calling for continued financial support and greater flexibility on loan repayments in light of the impact of Covid-19 on their revenues and cash flow. In a survey of 63 companies in the UAE conducted by MEED and Mashreq, nearly 88 per cent of companies said that their banking needs have changed because of the pandemic, with over 50 per cent saying that they have an increased need for financing. “Companies across all areas of the economy have been knocked by the impact of Covid-19 on their business,” says Hind Salim Eisa, Executive Vice President and Head of Services and Manufacturing at Mashreq Bank. “Many have had revenues hit by lockdowns and travel restrictions. While others have seen productivity levels fall and costs rise as a result of the disruption,” she adds. “In order to continue through these challenges, new, more flexible and more responsive finance solutions are essential.”

Supporting through the challenges

Nearly all companies, regardless of their size, have seen a shift in their financing needs as a result of the pandemic. “Medium-sized companies, who are considered as the backbone of the UAE economy, constitute the largest segment of customers in our corporate banking portfolio in terms of number of customers – and by extension number of transactions too,” explains Eisa.

About 57 per cent of medium-sized companies surveyed, those with annual revenues of between $30m to $270m (AED100m -AED1bn), reported increased need for financial services as a result of the pandemic.

Mashreq supported this segment and others through initiatives including extended debt obligations, longer loan tenors, providing top ups for existing loans and delaying collection. “Throughout the crisis, our focus remained on providing our customers with as much financial flexibility as possible, by relaxing the terms and conditions around tenors and credit facility,” says Eisa. “A lot of this was ultimately possible thanks to the support that we in turn received from the Central Bank.”

Refining the digital response

In addition to the increased need for financing, companies in the UAE have also called for more responsive digital

Hind Salim Eisa, Executive Vice President and Head of Services and Manufacturing at Mashreq Bank

platforms and increased access to expert advice, as they seek to respond to a significantly changed market. For instance, about 31 per cent of mid-sized companies called for more responsive digital platforms to facilitate their financial transactions. “It is convenient and costeffective for banks to conduct corporate customers’ transactions remotely, given the lesser reliance on physical branches, reduced human error, quicker turnaround time, etc,” says Eisa. “The entire process becomes more streamlined, both from a lender and borrower perspective.”

But despite the demand for increased online services, the shift to digital processes is also the source of most anxiety for mid-sized companies. One third said that cyber security was their biggest pain point, while about one quarter said that the lack of tailored services was a significant problem. “Banks recognise the challenges and concerns facing our customers,” notes Eisa. “And with every digital strategy we implement, our first and foremost priority is always our customer.”