Existence of international trade has been there for centuries and introduction of trade finance in the banking and finance industry acts as a major catalyst in facilitating it further. The fundamental objective of Islamic trade finance is to facilitate trade activities by providing Shariah-compliant products for various entities using Shariah compliant modes of financing. This ever increasing demand for trade finance products has compelled the banks to look into innovative IT solutions in order to provide suitable products for their clients which would enable them to evaluate various risk and return, along with working as an intermediary of pre and post-shipment financing products.

Ababil has built-in readily available Islamic trade finance module. Ababil Islamic Trade Finance products cater to all different types of trade finance activities which includes the following:

  • Issuance and advising of letter of credit (L/C): Both Sight L/C and Usance L/C, Bills Receivable, Trust Receipt, Banker’s Acceptance (Sale and Purchase), Pre-Shipment Finance, Shipping Guarantee, Domestic and Foreign Bill Purchase, Usance Bills and Immature Bills, Inward and Outward Bills for collection.
  • Export financing facility (pre & post shipment). Direct integration with Islamic Financing modules for Murabaha and Musharaka type investment along with Wakala and Kafala L/G.
  • Handling different types of banker’s guarantee including performance guarantee, tender/financial guarantee and other contingent liabilities.
  • Availability of integration with Ababil SWIFT Middleware solution in order to make the module a one-stop solution for Islamic Trade Finance.

Ababil Islamic Microfinance solution is a complete Islamic Microfinance module specifically designed for Islamic banks and Islamic microfinance institutions. The module enables small and medium sized enterprises to get the required financing without much hassle. The solution has the ability to efficiently manage various portfolios. It also enables the financial institutions the ability to provide financial services at a cost much lower than normal financing. The solution is available for various models including market-based model (for banks), non-profit model (Islamic MFI).

Key features 

  • Profit and Loss Accumulation and Distribution
  • Group Specific Investment Mechanism
  • Availability of Process Mapping to Diagnose Inefficiencies
  • Holiday Declaration according to Organization/ Branch/ Outlet/ Group/ Member Basis
  • Ability to generate various types of reports according to the requirement of the clients
  • Various Group meeting synchronization
  • Tracking Financing History
  • Availability of integration with Mobile Banking and Agent Banking modules.

With the help of this module, client institutions can now be benefited from reduced financing processing time and cost leading to less operational cost, a fall in operational cost may also encourage financial institutions to lower transaction costs which will be favorable for the borrowers.

Ababil Islamic Treasury Management solution supports various treasury operations of Islamic finance institutions along with presenting them with extensive reporting capabilities which will help the management to make better and timely decisions. The solution also has report customization ability through integration which allows financial institutions to structure various reports according to the policy of the client institution.

Ababil Islamic Treasury Management offers wide range of features which includes the following:

  • Dynamic Dashboard facility with extensive reporting system.
  • Industry Standard open Architecture, with integrated, secure and scalable reporting infrastructure.
  • Easy configuration of new products and processes accomplished through built-in parameters.
  • Trading and transactions of Islamic Money Market instruments which includes deposits exchange, placements, borrowing etc.
  • Availability of Foreign Exchange Transactions (Forex today, tom, spot).
  • Integration with Ababil SWIFT Middleware solution in order to wire various message generation, such as SWIFT
  • Automated generation of Journal Vouchers and settlement confirmation.

Ababil Agent Banking solution has opened a new door for the banking business through financial inclusion. The solution holds a bright future and huge potential by offering Agent Banking services through agents for the rural customer who does not have access to formal banking system even through Mobile Banking.

Agent banking means providing limited scale banking and financial services to the underserved population through engaged agents under a valid agency agreement, rather than a teller/cashier. It is the owner of an outlet who conducts banking transactions on behalf of a bank.

Ababil Agent Banking provides the following services:

  • Collection of small value cash deposits and cash withdrawals
  • Inward foreign remittance disbursement
  • Facilitating small value financing disbursement and recovery of financing, installments
  • Facilitating utility bill payment
  • Cash payment under social safety net program of the Government
  • Facilitating fund transfer
  • Balance inquiry
  • Collection and processing of forms/documents in relation to account opening, financing application, credit and debit card application from public
  • Post sanction monitoring of financing and advances and follow up of financing recovery
  • Receiving of clearing cheque
  • Other functions like collection of Islamic insurance premium including micro Islamic insurance, etc.

Offshore Banking is a term used to describe banking activity in currencies other than the currency of the country in which the bank accounts are held. Offshore banks provide a continuum of services in connection with financial management such as deposit taking, money transmissions, creation of provision of foreign exchange, trade finance, credit facilities, investment and fund management, corporate administration, and trustee services.

An Offshore Banking Unit (OBU) is usually located outside the country of residence of the depositor in order to provide financial and legal advantages. However, any banking unit may be treated as an Offshore Banking Unit irrespective of geographical location or presence, with prior approval from the Central Bank.

Similarly Ababil OBU solution is designed to meet all offshore banking requirements along with availability of direct integration facility with the client bank’s Core Banking System.

Along with all the features available in Ababil Islamic Core Banking Solution, Ababil OBU includes some salient features like Usance Payment at Sight (UPAS), MDB, QFCD.

Under the Islamic pawnshop (Ar-Rahnu scheme), a customer can place an amount of gold with the bank for safe-keeping (Wadiah Yad Dhamanah) and receive an interest free margin of advance (Qard al Hasan) with the gold being held as collateral (Ar-Rahnu) for a tenor.

Ababil Ar-Rahnu Solution facilitates financial institutions by enabling an automated Ar-Rahnu module and provide a source of immediate financing to assist clients in overcoming short-term cashflow needs.

Features in Ababil Ar-Rahnu Module include:

  • Configuration facility related to Rahnu including, but not limited to, configuration of Custody fees and Credit limits for different levels of values of received gold ornaments.
  • Automatic valuation of received gold based on configuration data and auto suggestion of credit limit to parties.
  • Closing of a Gold Lot including auction information of gold goods in case of defaults, settlement of dues amongst parties and bank, giving back gold goods to parties, etc.
  • Managing records including certificates and other documentation. 

Capital market is a channel which helps in mobilizing funds from the non-productive to the productive channels which facilitates in the promotion of economic growth in a country. It plays a major role to channel fund in all the developed countries in the world. With the constant increase in the size of the Islamic finance sector, Islamic capital market has an important role to play in this as well. The Islamic capital market is an important component of the overall Islamic financial system especially in providing an element of liquidity to the otherwise illiquid assets.

SWIFT is an internationally-recognized identification code for banks around the world. It supports financial data communication and processing needs of financial institutions through a range of financial messaging services.

All these institutions need to acquire separate “user” from SWIFT in order to transfer and receive payment using their transport network which in turn, becomes costly as it leads to additional cost for the banks. Along with that, currently banks use SWIFT Alliance Access (SAA) to generate and route SWIFT messages which is a different application from core banking application. As a result, the bank needs to enter same information in two systems, one in core banking system to store record and another entry in SAA (SWIFT Alliance Access) to generate, route and read messages. This type of dual entry for single task is not only time consuming but also has room for error and waste of money.

In order to overcome these situations, Millennium Information Solution Ltd. (MISL) offers Ababil SWIFT Middleware Solution that helps bank to generate, route, parse and read SWIFT messages. The middleware will save additional cost for the client banks as they will be able to create unlimited user without extra cost. It can also be integrated with the core banking solution so bank will save time by removing the present dual entry procedure.

Salient Features

  • Automated message generating, routing, parsing and reading facility
  • Cost reduction for Business Identifier Codes (BIC) implementation
  • Integration with Blacklisted/Sanctioned Screening
  • Multi-level verification for message transmission
  • Unlimited user creation facility
  • Ensure data consistency
  • Time saving due to single point of entry (CBS)
  • Automatic SWIFT message archiving facility

All these salient features will lead to less chance of getting SWIFT NAK (Negative acknowledgement) from the generated messages. This as a result will lead to saving of huge penalty money for routing invalid messages.

A cheque book is an integral item for a bank account holder as it is one of the major instrument to withdraw money from an account.

During the time of opening a bank account, cheque book is issued to the account holder for withdrawing money. Before exhausting all the Cheque leaves, account holder produces Cheque requisition slip contained in the Cheque book duly signed by him to the Bank for new Cheque book. Bank verifies the signature of the A/C holder and other particulars and requests Head Office for supplying newly printed Cheque book. After getting supply of Cheque book from Head Office branch delivers the book to the A/C holder.

Ababil Cheque Requisition solution comprises of all relevant activities necessary during cheque requisition.

Salient features of Ababil Cheque Requisition Solution include:

  • Clients can deposit his cheque requisition slip at any branch other than his own account maintaining branch.
  • Ability to get delivery of his printed Cheque Book from any branch as per his option given to the bank.
  • Availability of Magnetic Ink Character Recognition (MICR) cheque.
  • Parameterized process which makes all functions predefined for easy use.
  • Availability of Multi-layered security.
  • Allocation of predefined user ID and password.

Ababil Finance Origination System (FOS) enables bank users to take care of financing applications starting with client selection and ending with sanctioning of the finance upon client acceptance. 

Salient Features:

  • Customization
    • Flow of Activities
    • Roles, Rights and Privileges
  • Multi Layer Authentication
    •  “4 Eyes” Principle
  • Abiity to View Assigned Tasks
  • Define Credit Risk Grading (CRG) System and pricing engine
  • Ability to Manage Documentation
  • Applicable for funded and non-funded products
  • Ability to integrate with other applications
    • Valuations, credit checks, fraud analysis, and insurance quotes
  • Extensive Report generation facility