TCS BaNCS for Islamic Banking: A Sharia-compliant Solution

Industry

Solution

Highlights

TCS BaNCS for Islamic Banking helps conventional and pure Islamic banks develop banking products that are Shariah-compliant.
It offers flexible, agile, and function-rich product configurations such as Murabaha cost-plus financing, Tawarruq Shariah-compliant financing, and Ijara leasing.
The solution enables financial institutions to develop new instruments while focusing on corporate and small business financing such as investment banking and Takaful insurance.

With a growing population and increasing affluence in the Islamic communities, the focus on Islamic banking and financial products has increased manifold. The scope of Islamic banking is continuously evolving with the introduction of a range of new products targeted at new customers and their needs.

TCS BaNCS for Islamic Banking enables financial institutions innovate and develop new Islamic instruments while focusing on corporate and small business financing, including investment banking and Takaful.

Challenge

With Islamic finance poised for further growth in the near future, the industry is in need of customized technology solutions and interoperable systems offering a 360-degree view of processes addressing the critical areas of risk and compliance. The need for rapid time-to-market for innovative products, scalability to manage large volumes, and a competitive cost structure lies at the core of business needs. Meanwhile, conventional banks are looking for a common platform that can provide opportunities to invest and borrow according to Islamic principles defined in the Shariah law while offering the benefits of diversification and a full range of banking products.

Solution

TCS BaNCS for Islamic Banking is for both conventional banks and pure Islamic banks looking to create an Islamic window or subsidiary with their core banking, risk management, and treasury needs. It also enables financial institutions to innovate and develop new instruments while focusing on corporate and small business financing, including investment banking and Takaful.

With our expertise in financial services consulting, technology, and outsourcing, we have partnered with numerous financial institutions to offer cost-effective solutions. Our customers across banking, capital markets, and insurance domains in Australia, India, Indonesia, Qatar, Bahrain, and Europe have deployed TCS BaNCS for Islamic Banking successfully. From one of the largest banks in South Africa (~2.2 million customer base) to a bank in Indonesia (~6.5 million customer base) running the solution, including the first Takaful insurance company in Bahrain, TCS BaNCS for Islamic Banking covers the entire spectrum of Islamic finance. Retail and investment banking, Islamic treasury, and trade finance solutions backed by best practice business processes for Shariah-compliance come together to empower our customers across the entire value chain.

Benefits

TCS BaNCS for Islamic Banking is an integrated Islamic financial ecosystem, offering banking, capital markets, and insurance solutions on both conventional and hybrid instances, made available on a common platform. The solution, which also includes core banking, risk management, and treasury, caters to organizations looking to enter the Islamic banking space, and those who wish to maximize returns from their existing Islamic banking strategy. In addition, the solution:

Offers a 360-degree view of the customer for the bank, and of the bank for the customer
Enables platform flexibility, cost efficiency, and scalability through its component-based technology architecture
Allows for rapid product development and process configuration
Helps address critical areas of compliance and risks, additional contracts, and unique tax treatments under the Shariah law across geographies
Enables the innovation and development of new instruments