Arab Bank Iraq implemented BML Istisharat’s ICBS G5 Core Banking Solution, establishing a scalable banking infrastructure that ensures regulatory compliance and operational efficiency positioning the bank for long-term growth in Iraq’s financial landscape.

In the rapidly evolving banking sector, core banking systems play a crucial role in enhancing operational efficiency, ensuring regulatory compliance, and delivering superior customer experiences. Financial institutions worldwide are investing in next-generation core banking solutions to streamline processes, integrate digital banking capabilities, and enable real-time transactions.

Arab Bank Iraq, established in 2024 as a private Iraqi joint-stock company, represents a significant expansion for Arab Bank, a global financial institution. With its headquarters in Baghdad, this bank focuses on consumer banking, corporate and institutional banking, and Treasury solutions. To support its operations, Arab Bank Iraq required a cutting-edge core banking solution that abides by the parent bank’s business and technology standards while adhering to local regulatory requirements. The bank selected BML Istisharat, a technology provider with over five decades of expertise in banking solutions initially founded in Lebanon and Now headquartered in Dubai. BML Istisharat’s ICBS G5 Core Banking solution was chosen for its ability to meet Arab Bank Iraq’s stringent functional, technical, and compliance requirements while providing the scalability needed for future growth.

Project Overview

The implementation of ICBS G5 Core Banking Solution at Arab Bank Iraq was driven by the need to establish a high-performance, fully compliant banking system that could support its aggressive market entry strategy. The solution provided a foundation for the bank’s operations, and was designed to ensure operational efficiency, meeting customer experiences expectations, and adhering to dynamic financial industry standards.

By integrating a customer-centric banking platform, the solution streamlined key banking operations such as KYC compliance, risk rating, and financial product management. The product suite covered deposits, loans, trade finance, and collateral management, allowing Arab Bank Iraq to offer a diverse range of services from the outset. Seamless API-driven integration had also enabled the bank to connect with digital banking platforms, payment gateways (SWIFT, ACH/RTGS), anti-money laundering (AML/CFT) systems, and reporting tools. The scalable architecture ensured compliance with regulatory mandates, positioning Arab Bank Iraq for sustained growth in the Iraqi market.

Implementation Process

This project began with detailed planning, while leveraging the parent bank’s expertise and Iraqi regulations. The system was configured using a model bank approach, allowing for best-practice implementations tailored to local banking needs. This phase involved tight stakeholder collaboration to ensure that workflows, security, and compliance were integrated effectively.

Following the configuration phase, rigorous testing and quality assurance were carried out, including system stability assessments and user acceptance testing (UAT). The deployment phase then focused on seamless system rollout and extensive staff training. Post-go-live support was also a critical component, involving continuous monitoring, system optimizations, and periodic enhancements to ensure the banking platform’s efficiency and reliability over time.

Challenges

The implementation primary hurdle was the development of the banking infrastructure from scratch. Establishing high-availability data centers, secure networks, and digital banking platforms required meticulous planning and execution. Arab Bank Iraq needed a modern banking technology stack capable of supporting realtime interactions across multiple digital channels. Implementing advanced fraud detection, AML/CFT screening, and online payment processing required agile middleware solutions and API management capabilities. Ensuring smooth communication between internal systems and third-party providers while maintaining high-security standards added to the complexity of the project.

Navigating the regulatory landscape was another major challenge. Arab Bank Iraq had to comply with both the parent bank’s rigorous business practices and the local banking regulatory framework. Harmonizing global corporate policies with local operational mandates demanded significant time and effort, particularly in securing approvals for banking licenses and regulatory clearances. Recruiting and training a diverse workforce with varying levels of familiarity with the innovation-led strategy was also a key consideration. Change management strategies and extensive training programs were critical in overcoming these workforce integration challenges.

Benefits Achieved

• Successfully launched operations on schedule with a fully functional & future-ready banking platform.
• Automated banking processes reduced manual interventions & enhanced accuracy.
• Provided customers with seamless & personalized banking experiences, driving higher engagement and satisfaction.
• Full regulatory compliance was achieved with adherence to global & local banking standards.
• Advanced security frameworks & risk management tools were deployed, ensuring data protection, fraud prevention, & regulatory compliance.
• Scalable architecture allowed for easy expansion & adaptation to new business opportunities.
• Seamless API integrations enabled real-time transactions & enhanced external connectivity.
• This success resulted in a strong partnership between Arab Bank & BML Istisharat, leading to extended collaboration on future projects, with the adoption of the Islamic ICBS window solution by another entity within the group.

Conclusion

The successful implementation of BML Istisharat’s ICBS G5 Core Banking Solution at Arab Bank Iraq highlights the critical role of strategic technology partnerships in financial sector transformation. With a solid foundation now in place, Arab Bank Iraq is well-positioned to expand its footprint across the country and leverage technologydriven financial solutions to meet the evolving needs of customers. The deployment of a comprehensive banking ecosystem framework has not only enabled seamless customer experiences but also ensured operational efficiencies and regulatory compliance. This project underscores the importance of careful planning, meticulous execution, and strong leadership in launching a banking entity in a new market.

Key Facts

Supplier: BML Istisharat
Headquarters: Dubai
Client: Arab Bank Iraq
Solution: ICBS G5 – Universal Banking
Website: www.istisharat.com