Bank Sarasin & Co has selected Avaloq's Islamic Banking Solution, in an effort to upgrade its range of Sharia-compliant offerings to private clients.
The new system covers a range of Islamic products, such as murabaha finance and placement, diminishing musharaka, and others. Murabaha refers to a form of fixed-income commodities trading, where parties agree on an upfront price pre-sale, and the seller takes physical receipt of the commodity before passing it on.
Islamic finance has strict rules regarding riba, or interest, which is forbidden under religious law collectively referred to as Sharia. Most transactions, in contrast to capital markets trading in the US and other Western regions, also involve having tangible assets in possession, and include a culture of risk sharing between counterparties.
"Islamic banking is one of the fastest growing segments of the worldwide financial industry, extending across the Middle East, South East Asia, Africa and Europe," says Francisco Fernandez, CEO at Avaloq. "Our Islamic Banking Solution addresses that trend in an efficient and integrated way."
More from Buy Side Technology
Updating your subscription status
Winner's Announced: Buy-Side Technology Awards 2014
The winners of the 8th annual Buy-Side Technology Awards 2014 were announced in London on November 7, recognizing the leading technologies and vendors in their area of expertise, through an auditable and transparent methodology . To view the winners across the 31 categories click here.
The catalyst for change in client reporting is a more empowered, digitally aware consumer. Excellence of service delivery will be key to investment managers...
Without a consistent source of data and limited functionalities in existing systems, firms are unable to perform tasks that are becoming increasingly important...