Misys, a financial software company, has launched Misys FusionBanking Essence Islamic, a major new component in its banking platform, Misys FusionBanking Essence.

Mahmoud Talaat, Product Manager, FusionBanking Essence Islamic, Misys, said: “Islamic banking is ripe for disruption.”

“It is a growing segment, with customers looking for proven Shari’ah-compliant banking services with service levels on a par with, or exceeding conventional banking,” he said.

With an annual growth of 17%, Islamic banking is a key area where banks can stay ahead of their competition and gain market share.

Technology is stagnating banks’ profitability, with Islamic banks averaging just 12.6% Return on Equity, while the rest of the industry averages 15%.

Misys FusionBanking Essence Islamic has been developed as a specialist Islamic banking solution, with pre-configured Shari’ah compliant products, such as Murabaha and Finance Ijara instruments.

The process-driven nature of the system empowers banks’ business users to design and build new Shari’ah-compliant products in a simplified and intuitive manner.

According to PwC, Islamic banking consumers need the assurance that their bank is totally Shari’ah compliant – only 52% believe their bank is a true Islamic bank, following Shari’ah laws.

With FusionBanking Essence Islamic, banks have a solution and roadmap to transform their operations from the ‘outside-in’.

FusionBanking Essence Islamic allows banks to create a new, differentiated customer experience, tailoring services and communications for millions of individuals, according to Misys.

“With more than three decades of experience in this field, we have developed this new solution so that ambitious Islamic banks can modernise and transform their operations, so they can acquire new customers and increase their share of wallet,” said Talaat.