Azentio Software, a Singapore-headquartered technology firm owned by funds advised by Apax Partners, builds an iMAL Islamic Financing and iMAL Profit Calculation System for the Bank of Abyssinia (BoA). Azentio completed the system in less than four months to support the growth of its Islamic banking operations.
Azentio Software adopted an innovative approach, a variation from the standard system, allowing BoA to save the costly process of migration iterations, frequent CIF and account updates maintenance. The iMAL Islamic Financing & Profit Calculation System enhances BoA’s profit distribution by automatically adjusting the profit rate following Islamic law.
Sharia banking is banking that abides by the Islamic law that states earning and charging interest are forbidden, and Sharia banks can’t invest in businesses, like gambling, alcohol, tobacco, or explicit content. In Ethiopia, Islamic banking has grown tremendously in recent years. BoA partnered with Azentio due to their years of experience, industry expertise, and team professionalism to keep up with the growing Islamic banking demand.
The Shariah-compliant profit calculation and distribution system help BoA compete with both Islamic banks and regular banks’ interest payouts in rates and customer satisfaction, reducing time-to-market for new products and distributing profits. BoA will manage restricted & unrestricted Islamic investments and compute & share profits, according to Shariah.
