Islamic Banking

Intel Corp Chief Executive Paul Otellini unveiled new microchips for portable gadgets and home electronics on Monday, saying advances in chip technology were making such devices more powerful than ever.

"We're now in the midst of the largest opportunity to redefine consumer electronics and entertainment since the introduction of the television," Otellini said in prepared remarks ahead of a keynote address to the Consumer Electronics Show.

As the world's largest chipmaker, Intel's microprocessors power some 80 percent of the world's personal computers, but Otellini made scant references to PCs, which the company has pushed as digital media hubs at past CES showings.

Instead, Otellini focused on consumer devices, describing for the first time a new chip aimed at electronics such as set-top boxes, media players and televisions.

Dubbed "Canmore", the new chip is to go on sale in the second half of 2008 and will consist of a processor like those used in personal computers but augmented to handle high-definition video, surround sound and 3D graphics.

"Packaging several important functions -- such as computing, graphics and audio-video processing -- into a single chip will help devices do more while taking up less space and energy," Otellini said.

The emphasis on consumer gadgets comes as Intel has faced slowing growth in the PC industry in recent years. Previous forays into electronics such as digital music players have fizzled, while other moves such as its backing for the Wi-fi wireless technology have helped open up new markets.

Also later this year, Intel plans to ship "Menlow", its first platform for mobile devices optimized for Web access, Otellini said. At the heart of the platform is a chip called "Silverthorne" that is five times smaller and uses 10 times less power than similar chips sold two years ago.

Otellini said future devices will have image recognition technology capable of feats such as helping travelers translate signs and recognize landmarks. Video games and virtual worlds eventually could be controlled by cameras that sense a user's body movements.

Islamic finance is one of the fastest growing new business models for banks, more so for the financial services companies globally and is growing at a rapid pace of 15-20 per cent per annum.

It is currently estimated to be worth approximately $300 billion. 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 conventional investment transactions.

In brief, Shari’ah business principles do not support interest payments, speculative trade and bars investments in negative industries like smoke products, alcohol, gambling, banned drugs, etc.

Shari’ah principles encourage investment in building industries that can show factual use of money and show sustainable growth.

Although majority of products that are available in conventional banking are now fast getting re-created in Islamic Finance workflow. These include simple activities like savings and current accounts, to complex mortgages, leasing and hire purchase, complex bonds and now even derivatives and private equity, besides insurance products and private wealth management.

Islamic Finance boom time lies in Islamic Wealth Management, Private Equity and Islamic Insurance.

IT moves Islamic Banking
The major growth of Islamic Financial services cannot be served without appropriate technology. Islamic Finance technology is no old wine in new bottle. This requires a completely new generation technology that has ability to quickly adopt to fast changing and emerging complex rules, analytics, policies and processes, workflows to create new Shari’ah Compliant products with changing market needs and also follow dual compliance standards.

The success of an enterprise technology lies in its genes that take care of security needs, scalability and robustness, integration capability and expandability requirements, to meet growing needs of new age organisations.

The technology that will drive Islamic Finance too would be required to work in different currencies, languages and will have to deliver straight thru processing, for meeting high client service levels and for effective use of resources deployed by the financial institutions.

Unlike core banking systems of previous generation, Islamic Finance technology at enterprise level will be structured as a sophisticated Assent Management and Basket Product Solution being supported on a back bone of Open Products Architecture.

Indian Scenario
According of H. Tripathi, managing director of Infrasoft Technologies Limited, Islamic finance is entirely a new business model and hence will be a great attraction to Indian Investors looking for new instruments for expanding their portfolios.

“Besides, India with a large Muslim population (the highest among non-Islamic countries) will soon become an attractive destination for Islamic finance. Given the modern trends and fantastic growth in Islamic Banking sector, it is only a matter of time before Islamic Banking catches up in India. It will bring in greater competition and enhanced and more transparent returns to the investors. Islamic finance may also cause inflow of investments from other countries into India, especially Middle East nearer home,” he said.

Infrasoft has invested in enhancing the company’s OMNIEnterprise products suite, specially targeted at Islamic Banking.

“OMNIEnterprise is a comprehensive financial industry solution which acts as a robust and scalable full function Islamic Finance Solution. This would be probably the first ever Open Architecture Solution for Islamic Finance institutions, modularly available for Retail Banking, Lease and Hire Purchase, Corporate Finance, Wealth Management, Treasury and Trading, and Private Equity Finance. The Islamic Insurance is nearly completion,” Tripathi added.

Infrasoft today serves more than 120 financial industry clients globally and has major presence in UK, India and Middle East, Africa, Malaysia and USA..

“Islamic Finance Solution is a comprehensive Front Office-Mid Office-Back Office Solution. The solution offers easy integration of third party products on to a single technology back bone with STP transaction management and also the market feeds, trading feeds, payment systems and clearing networks. The solution is complete with customer services delivery through Internet, Branches, Relationship Managers, Agents, Phone Banking and Hand Held Devices,” he said.

Some of the features offered by OMNIEnterprise suite, which are applicable for Islamic banking in general, include Murabaha Lending for corporate and retail clients, and Commodity Murabaha and Reverse Murabaha based fund management products. The suite also offers Mudaraba Placements and Acceptances. Ijara Leasing and Ijara Wa-iktina (lease purchase), Sukuks investments and participation arrangements with configurable fee structures, Wakala Placements and Acceptances are some of the added features in the software suite.

On the enterprise and corporate banking suite, Infrasoft Technologies has incorporated import trade finance through Murabaha and Ijara lending, Istisna Riba-free checking accounts, and Musharaka Bank Guarantees Letters of Credit

“The OMNIEnterprise is built on a Service Oriented Architecture offering inherent advantages including capability to operate 24x7, managing workflow across multiple delivery channels and interfaces to payment gateways. The solution is customer-centric offering multi-currency support and a clear identification of returns and expenses enabling clean profit identification and sharing process complying with the Shari’ah laws,” added Tripathi.