Headquartered in Khartoum, Al Khaleej Bank is an Islamic institution that focuses on corporate banking and microfinance. Furthermore, the bank also finances industrial and agricultural projects in Sudan. It also offers digital banking services such as phone and internet banking.

Kuwait-based Path Solutions provides a range of Sharia-compliant software solutions and technology-based services for the Islamic financial services industry. The set of services offered by the company enables its clients to deploy the technology on-premise or in the cloud.

The Core Banking Platform of the company – iMAL is AAOIFI-certified and covers a broad spectrum of Islamic Capital Markets, Islamic Treasury, Islamic Deposits, Islamic Investments, and Islamic Finance. iMAL is a cloud-enabled, fully scalable, and highly reliable solution with n-tier architecture that supports open banking and digital transformation leveraging artificial intelligence and machine learningled tech stacks as well as other new age technologies.

Project Scope

Al Khaleej Bank Sudan wanted to thrive in the emerging banking landscape and comply with increasingly strict regulatory requirements. The bank launched a request for proposal in 2019 to transform and modernise its core banking platform. The bank considered multiple software providers that offer a complete range of solutions and services for Islamic banking. The bank saw that Path Solutions’ iMAL Islamic Core Banking Platform could provide comprehensive Islamic finance capabilities. The bank also received positive feedback from other Sudanese banks running on the same platform. The assessment and good user feedback assured Al Khaleej Bank of Path Solutions’ technological and implementation capabilities.

Further to an effective selection process, the bank selected iMAL to benefit from the solution’s rich end-to-end functionalities and Path Solutions’ competence and know-how of Islamic banking in Sudan. The project scope included deploying the complete iMAL Islamic Core Banking Platform at Al Khaleej Bank, replacing the entire core banking system, and migrating its existing data into the new system.

Implementation Process

The deployment covered most of the iMAL set of services such as Security Management, Customer Service Management, Accounting and Finance, Branch Automation, Loan Origination System covering Facility Management, Trade Financing and Islamic Investment, Islamic Treasury, Provisioning, Islamic Profit Calculation, Asset Management, Fixed Assets, Personal and Payroll, Central Bank Reporting, FATCA and AML Compliance, SMS Messaging, in addition to ATM, RTGS / SWIFT messages, Electronic Cheque Clearing, Credit Bureau, and other interfaces such as Utility Payment Gateway and Cheque Book Printing Integration. The solutions for Risk Management and Business Intelligence would be part of the phase 2 implementation.

The bank wanted to enhance its user experience and deliver more innovative Islamic banking products. Its focus is also on enhancing business process automation, an essential element for improving workflow and business processes, controlling costs by reducing manual intervention, saving time, and increasing efficiency while facilitating data reconciliation between departments

Challenges Faced

The project started during a difficult period of lockdowns and travel restrictions due to the Covid-19 pandemic. Periods of office closure were also encountered due to political disruption in Sudan. The team had to work remotely from different locations and in different time zones.

Due to the very different data structure of the two systems, data mapping was complex. The system had to be integrated withcthird-party systems and the Central Bank of Sudan. New operating procedures were put in place to take advantage of the enhanced processes enabled by the functionality and flexibility of iMAL, and all bank staff had to be trained.

The project had a limited budget when considering the scope of work and modules to be implemented. Resource allocation was managed efficiently and meticulously to avoid exceeding the budget.

Despite the challenges encountered during project implementation, the project was completed in one year and seven months (March 2020 – October 2021). The bank was delighted with and grateful to Path Solutions’ implementation team, who showed total dedication, commitment, and perseverance throughout the project duration, contributing to a successful closure.

Benefits Achieved

With the successful implementation of iMAL, Al Khaleej Bank could adopt new age technologies with a wide range of features and functionalities in line with Islamic Sharia which was earlier limited in its existing system.

According to Abd Elkhalig Elsamani, the General Manager of Al Khaleej Bank, the top management and staff saw the bank taking a massive leap in operational efficiency, system performance, and scalability, which would eventually help it meet the challenges in the new digital age. The bank is excited about uncovering the full value of the iMAL platform.

With iMAL, Al Khaleej Bank introduced new and innovative Shariacompliant products more quickly and efficiently. This helped it reduce operational costs and offer a pioneering digital experience to its customers.

Conclusion

This case study demonstrates Path Solutions’ Islamic banking technological and implementation capabilities. Following this successful core banking replacement, Al Khaleej Bank plans to transform faster and expand further in the region. The bank is currently exploring the implementation of Path Solutions’ Digital Banking suite to continue delivering a first-class service that meets the needs of modern tech-savvy customers in Sudan while staying true to Islamic principles.

Key Facts

Bank: Al Khaleej Bank
Headquarters: Khartoum, Sudan
Founded: 2017
Supplier: Path Solutions
Solution: iMAL Core Banking Platform
Timeline: March 2020 – October 2021