Somalia’s Amana Bank selects Path Solutions for Islamic core banking
Somalia-based Islamic lender Amana Bank has selected Path Solutions and its iMAL core banking system.
iMAL will replace the bank’s legacy IT platform. Path Solutions says it went through a “competitive bidding” featuring “all international suppliers” to win the deal.
Amana Bank is on a new digital transformation journey, according to Amana Bank chairman Abdirizak Hussain Malin.
“We required a partner with open and agile technology that will drive powerful change,” he says.
“We have chosen Path Solutions for its ability to deliver vital digital financial solutions at this critical time.”
Malin adds that Path Solutions distinguished itself with a “unique ability to combine core Islamic values with modern digital banking solutions.”
Alongside the iMAL system, Path Solutions is supplying Amana Bank with a selection of digital modules.
“Today, every financial institution has an incredible opportunity to apply advances in cloud computing to redefine every aspect of its business,” says Mohammed Kateeb, Path Solutions CEO.
“Somalia’s Amana Bank is a good example of this transformation to drive innovation forward and ensure much more secure banking experience.
“The bank will also benefit from the full Islamic coverage which bridges the gap between modern customer requirements and intrinsic Islamic values.”
Mobile money in Somalia
Amana Bank is the third Somalian financial institution to opt for Path Solutions. Premier Bank and MyBank both deployed the iMAL core banking system.
Challenger MyBank picked up iMAL in March, and the vendor said at the time it would be focusing on the Somali market to help tackle financial exclusion.
According to World Bank data, 58% of Somalian households make four transactions a month using mobile money.
Somalian mobile network operators don’t charge transaction fees or withdrawal fees. Despite this, up to 63% of households do not withdraw their mobile money as cash.
This could be due a high rate of counterfeit money in circulation. The International Monetary Fund (IMF)’s Somalian country head Samba Thiam has said as much as 98% of the country’s cash could be fake.