Swift's representative in the Middle East Edward Di Corse said that there is dire need to develop products that serve the Islamic banking industry, since it carry a rapid growth.
Swift Corporation is considered as the biggest corporation that deals with electronic transactions between banks and financial institutions.
He highlighted after meeting Deputy AGM for Operations in Kuwait Finance House (KFH) Anwar Bader Al-Ghaith that Swift in cooperating with KFH for the development of Murabaha transfers messages since KFH is considered as a leader in the field of Islamic banking.
Furthermore, He announced that such joint project initiatives & efforts will be discussed deeply in a conference soon that it will be hold in Hong Kong, where the two parties will attend the conference, in addition to most worldwide banks and financial institutions that they benefit from the services offered by Swift.
Moreover, Di Corse explained that since Islamic banking differ from their conventional counterparts, the Islamic industry will require numerous technical services & setup as a result of the growing rapid demand on their products and services.
He noted that transactions related to Murabaha product has reached 60% of the banks and Islamic institution total operations, which prompted Swift to meet their needs, especially when we realize that the cost for every manual processing will reach up to $100, that defiantly it will increases operational load & cost.
In addition, He mentioned that the worldwide manual transactions processing cost approaching almost $300m every year which it's very significant & considerable and that's why the Islamic banks & intuitions must work together to avoid such high costs by creating a system that works well with the Islamic products.
Meanwhile, Al-Ghaith asserted that KFH and all Islamic banks need such a system to minimize the overhead costs related to the manual transaction processing and to improve the work efficiency & controls which reveals KFH keenness to develop the Islamic banking industry by offering a well designed services and products to its valued clients.
Furthermore, he explained that the project will directly facilitate this service required by many clients and it will increase for sure the demand on such Islamic finance operations.
He went on to explain that the intensive joint workshops has already started to gather the requirements & business specifications according to the Islamic Shariah and then the infrastructure development & preparation process will commence afterwards to the Swift environment.
Finally, he mentioned that KFH has made many technological achievements lately by deploying SunGuard system that its considered as one of the best applications in the world for managing and monitoring risks incidents. As the SunGuard application is complied with the requirements of the Central Bank of Kuwait and Basel2.
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