Bank of Abyssinia has announced the signing of an agreement with Path Solutions, an Islamic fintech solutions provider. The agreement is going to facilitate the provision of Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI)-certified software for the Bank’s Islamic banking related services.
One of the systems, iMAL*PCS, provides end-to-end capabilities to manage the entire profit calculation and distribution cycle and make profit distribution highly efficient. The process automation coupled with a complete set of dashboard data analytics capabilities gives decision-makers the tools to make quick and reliable decisions.
The software also includes innovative pool structures and profit distribution rates to ensure customer satisfaction is maximised in accordance with Sharia principles.
Ethiopia has recently allowed the formation of full-fledged interest-free banks, and thus several banks are currently planning to convert to Islamic or raising funds to start Islamic banking services. Of note among these institutions is Hijra Bank, which is in the finals stages of formation and even inaugurated its headquarters last week in front of Dembel City Centre in Addis Ababa.
However, most fintech tools in the country are designed for the conventional banking infrastructure making Path Solutions and other similar companies integral for the full realisation of the country’s financial sector development.
Bank of Abyssinia currently serves more than 4.6 million customers through its more than 580 branches across the country and is Path Solutions’ first client in Ethiopia.