Sonali Bank Limited emerged as the largest and leading Nationalized Commercial Bank by proclamation of the Banks’ Nationalization Order 1972 (Presidential Order – 26) liquidating the then National Bank of Pakistan, Premier Bank and Bank of Bhwalpur. As a fully state-owned institution, the bank had been discharging its nation-building responsibilities by undertaking government entrusted different socio-economic schemes as well as money market activities of its own volition, covering all spheres of the economy. The bank has been converted to a Public Limited Company with 100% ownership of the government and started functioning as Sonali Bank Limited from November 15, 2007, taking overall assets, liabilities, and business of Sonali Bank. The bank has 1,226 branches across the country with 2 branches in the UK. The bank wanted to undertake an Islamic core banking transformation for its ICT division and hence, approached Millennium Information Solution.

Implementation Process

With the previous vendor, the bank’s 6 existing branches had been running as an Islamic Window. However, the bank was facing various challenges with the earlier system such as data conversion and migration from that legacy system without data loss. The other 52 branches had to be set from scratch. There was no docker available from the Bank. The MISL had to build a custom docker bespoke for this installation. Being a new client, the implementation team had to adjust to the New Environment and deliver at a record time of just 45 days in phase 1 and 60 days in phase 1 and 60 days between January to  March 2020 in phase 2. Furthermore, with no steering committee available from the bank, MISL also had to develop and implement the strategies for this implementation while performing the Additional Responsibilities beyond the initial scope of work.

The scope of the project included design, development, need-based customization, implementation, and maintenance of “Ababil NG” Islamic Core Banking window at Sonali Bank Lt. Moreover, the solution was to be implemented at 11 branches in phase 1 and 47 branches in phase 2. A total of 24 people were part of the implementation process i.e. 1 project manager, 3 technology and system engineers, 7 development engineers, 3 QA, 3 data conversion engineers, 1 DB, 4 implementations, and 2 support staff.

The project was offered to MISL as a challenge from Sonali Bank. There was no dedicated Islamic Governance Department or Committee at Sonali Bank at that time, the Business Development Department being assigned with Additional Responsibility. Development of Islamic Banking Principles was shouldered by MISL banking on its global shariah-compliant prowess. MISL also engaged in identifying the business need and educating the Business Process to all stakeholders. The Bank however did provide all support pertaining to Bangladesh Central Bank Guidelines. Despite all these challenges the first phase of implementing the Islamic window in 11 branches was completed in only 40 days.

The software was implemented on a state-of-the-art Docker System, thus enabling, clean installation and easy serviceability. Springboot Development Framework was used in Ababil Islamic CBS software which itself is built on the speedy Apache Kafka platform based on a  Java Microservices Architecture. The Project was implemented using an Agile PM Methodology. MISL also developed a Data Migration tool for the 6 branches with legacy data. A proprietary Issue Tracking System, MITS, was used throughout the project for efficient and effective system implementation.

 Benefits Achieved

Some of the key benefits experienced by the bank post-implementation of Ababil Islamic CBS at Sonali Bank Limited are highlighted below.

• Firstly, it enabled Sonali Bank to run a state of the art, fully Centralized, and Structured Islamic Core Banking System
• Secondly, our ISRA Certified Shariah Compliant solution, featuring evident profit-sharing has enabled the clients of Sonali Bank to truly avail of Islamic Banking services. This has significantly increased the Transaction Volume and Islamic Banking client base of Sonali Bank, allowing it to tap a segment representing 24% of the market share
• Finally, MISL has been assigned to perpetually expand the Islamic window across all the 1200+ branches of Sonali bank thus enabling the most accessible Islamic banking network in Bangladesh

Conclusion

Sonali Bank Limited was satisfied with the execution of Ababil Islamic CBS solution. Some of the key highlights of the project are as mentioned below.

• Replacing an existing System based on Merit and features thus, ensuring a Shariah Compliant and fully centralized Islamic Banking window
• Earning the experience of implementing Ababil Islamic CBS at Sonali Bank, the largest State-owned Bank of Bangladesh, which is a de facto proxy of Bangladesh Central Bank, all the while overcoming its bureaucratic challenges
• From agreement to go live, the project was completed in 45 days during phase 1, and 60 days in phase two, which combined is about half the usual project timeline of 180 days in the industry, thus setting a record for agility

Key Facts

Bank: Sonali Bank Limited
Headquarters: Dhaka, Bangladesh
Supplier: Millennium Information Solution
Solution: Ababil NG; Islamic Core Banking Window
Timeline: Phase 1 – 45 days between November 2018 and January 2019; Phase 2 – 60 days between January to march 2020