Mumbai Welcomes Islamic Finance Business

The first Islamic Finance Conference was recently hosted in Mumbai. This marks the beginning of an era where India centric fund managers and bankers also may commence their Islamic Finance business soon, a completely new business model that has stormed the world markets in last few years.

Islamic Banking or Shariah Finance although a 15-20 year old legacy, has now caught up  in the past 3-4 years, in unexpected financial capitals of the world like London and France, over and above Islamic  geographies like Indonesia, Malaysia and Middle East countries. 

Islamic Finance is growing at a rapid pace of 15-20% per annum globally, currently estimated to be worth approximately $300 billion today.  Retail and Investment banking Shari’ah compliant products are helping to unlock trillions of dollars of funds lying dead with high networked individuals and corporate world globally, who follow Shari’ah principles in their day to day business and investment and thus would not participate in usual financial transactions.

Growth of any new business model in financial services is heavily dependent on availability of right technology to meet customer services expectations, operations and compliance.  InfrasoftTech has been a pioneer in launching a full service enterprise wide technology solution that provides end-to-end automation of retail, wholesale and investment banking services that are fully Shari’ah compliant.

InfrasoftTech’s OMNIEnterprise Islamic Banking Solution was first adopted by the European Islamic Investment Bank, UK in 2006 and since then InfrasoftTech has built a portfolio of 25 Financial Institutions in the world market that are in the process of finalising or implementing Shari’ah Compliant Islamic Finance technology solution.

Hanuman Tripathi, CEO of InfrasoftTech says that, “soon all the sophisticated financial products one sees in the global markets today, would be available in Shari’ah  compliant business processes, including project financing, bonds trading, exotic derivatives, wealth management, private equity etc. We have a comprehensive technology solution that can help automate all of these businesses of a large bank or a multi-SBU financial services house. People often misunderstand Islamic Banking as a form of business that is merely devoid of interest. In reality, Islamic Finance has sophistication that requires complex business processes to be incorporated and dual compliance to be managed at FI level.”

In India, the Islamic Finance market is opening up, probably waiting for the regulators’ approval.

Added on March 23, 2007 Comment

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