Picture of building with tall windows. Tagline: Leaping into a Bold New Phase, Bank Muamalat. Picture of building with tall windows. Tagline: Leaping into a Bold New Phase, Bank Muamalat.

Banking

Leaping into a Bold New Phase: Bank Muamalat

Business Challenges

Bank Muamalat operates under dynamic market conditions, against a backdrop of strong domestic and global demand for Islamic banking products. Being one of the smaller banks in Malaysia and serving specific demographics in its customer base, the bank's proposition to its existing customers has had to remain somewhat distinct to that of the largest banks. The bank’s existing infrastructure before the core banking infrastructure refresh was somewhat unique. Being a product of historical mergers of other banks meant that its mainframe core was parked next to that of another bank. This sharing of physical space presented an issue. While still operating on separate systems and although there was no sharing or intermingling of data between the banks, this situation no longer met with Bank Negara's security and risk requirements. It became imperative that a new core banking system was needed to meet regulatory compliance and for new business growth.

Solution from Silverlake Axis

Bank Muamalat's management took the decision to explore a total system refresh for their core banking system. Silverlake Axis' solution was dubbed the “Muamalat Banking Solution” with the Silverlake Axis Integrated Islamic Banking Solution (SIIBS) being chosen as the core banking framework which would drive the transformation of the bank while still adhering to Shariah guidelines.

Benefits to the Business

Turnaround times for day-to-day business have improved and new products are brought to market at a faster pace than before. Existing products and services, which need changes to parameters, can now be reconfigured and sent back to market more quickly. Senior management at Bank Muamalat now speaks of clearly seen reductions in data errors and loss of data – likely a result of the simplified and integrated architecture that is now in place. Bank Negara’s regulatory requirements as well as Shariah compliancy are now fully met. In addition, future changes to regulation from both bodies are able to be quickly implemented. Most importantly, the new core has seen the bank take important steps towards its ultimate aim of increasing customer satisfaction and experience and in using these pillars to increase its market share.