JMR Infotech

Islamic banking is a banking activity which follows principle of Sharia law and its practical application through the development of Islamic economics. It is also termed as Sharia Compliant Finance. Islamic bank prohibits ‘Interest based Banking’ but permits ‘Profit sharing based Banking’. The concept is based on a verse of the Holy Quran that says ―Allah has allowed only legitimate trade and prohibits interest which states as Allah is against interest as it is believed to lead to exploitation and unproductive income.

Working of Islamic Banking

Islamic banking works on few laws which derive from Sharia Law practices as

1. If customer deposits money in bank, bank should guarantee the money should return to customer. 2. Customer can withdraw the money anytime. 3. Bank can charge you a fee for looking after customer money and may pay hibah(gift)to customer if it deems fit. Islamic banking module divided into four type of principle which derived from Holy Quran.

1. Mudharabah (Profit Sharing)

It is an Islamic contract which on one side provides capital and other side Labour. The profit must share in proportions agreed upon before implementation of contract.

2. Bai’ Bithaman Anjil- BBA (Deferred Payment Sale)

This module more concentrates on sale of goods where the buyer pays the seller after the sale together with an agreed profit margin

3. Murabahah (Cost Plus)

Murabahah id the transaction module which involves the sale of goods which include a profit margin after both parties agreed upon it.

4. Salam

This module enables the banks and farmers to contract with each other of the crop to get finance at appropriate time.

India is a good market for Islamic Banking due to its large size of Muslim population which is fourth largest in world. However it requires change in regulatory system and increase awareness of benefit of Islamic banking among Muslims.  One study by renowned financial institution in India states that “India holds a promising growth for Islamic banking due to its favourable regulatory condition, whose asset base is expected to increase more than 1 trillion USD in   coming year”.

According to Grail Research which is a leading marketing intelligence and data analysis provider states that “Islamic banking gains popularity and fast pace in market like USA and UK which has history of backdrop of the banking sector woes impacting the market”.

RBI (Reserve bank of India) also considering to implement and offer Islamic banking product to compete in emerging market for its overseas branches and subsidiaries.

Oracle Enterprise Risk Management Solutions helps banks and financial solutions to manage risk and address compliance issue. Oracle product follows Basel II regulation which gives an operational synergy between finance and risk functions. Oracle provides the establishment to unify GRC prerequisites and an enterprise risk management framework to set clear accountabilities for risk management and control over the endeavor.

Oracle Enterprise management solution (OERMS) products includes the methods and processes used by organizations to manage risks and creates opportunities relate to achievement of user’s goals. ERM solutions can be described as a risk based approach to manage an enterprise.

Oracle Financial Services Operational Risk provides an in-depth level of insight across the enterprise to effectively identify, monitor, and manage risks and controls across lines of business and across processes within a comprehensive governance, risk, and compliance (GRC) framework. This gives leverage senior management and stack holders the confidence that the business is performing well.

Features of Oracle risk management solutions

 It spans all areas of risk  It enables financial institutions to manage risk and compliance based reporting  It helps address Basel III regulations  It enables a close operational synergy between finance and risk functions.  It interoperate with existing and legacy applications through Oracle open architecture

Benefits of Oracle ERM solutions

 It  calculates accurately  risk based pricing exposure  It assess risk for portfolio across multiple parameters  It sets key performance indicators to reflect risk adjusted returns  It provides risk and performance metrics to rating agencies and shareholders  It helps ensure compliances  It defines and manage plans that cross risk and performance management

JMR Infotech incorporated in 2007 with the vision of track down the niche market of BFSI. In short existence JMRi has grown to have top banks as clients. JMR Infotech is a fast growing IT company with dynamic and highly skilled people globally in the group. JMR Infotech with operations in all major continents directly or through strong business collaborations augmented by delivery and development centers in India is a leading player in the area of Oracle FLEXCUBE® and Oracle Financial Services implementation and support services. JMR Infotech team has also succeeded in implementing various Oracle Financial Services Analytical Applications (OFSAA) products to its client. JMR Infotech achieves World’s first Platinum partnership from Oracle due to sheer dedication and the milestone achievement in banking sector.

Oracle Financial Services

Oracle Financial Services Analytical Application (OFSSA) is a business intelligence application which gives users to measure and meet risk adjusted performance objectives.

OFSAA gives support for Metadata management, User administration and additional capabilities to support the individual business application  like OFSAA funds transfer pricing, OFSAA profitability management ,OFSAA asset/liability management, OFSAA balance sheet planning.

Oracle analytics help banks to become smarter in manage challenges they face in daily activities. The overall penetration of OFSAA in banking is still in a preliminary stage but it has grown tremendously in years with better consulting experience, measurable and sustainable business result approach.

Benefits of Use of OFSAA

• It improves financial performance and more effective expense control through timely monitoring of expense details, delivered to departmental managers in time to take corrective action.

• It optimizes case flow through detailed accounts receivable, account payable and inventory analysis.

• It reduces time spent on compile, reconcile and consolidate data from fragment financial system and enables employee to spend more time in making proactive decision and taking action.

• It drives budget accountability down to departmental managers and provide them daily visibility into budget versus actual performance.

• It improves cash collections by identifying slow paying customers or billing issues and reducing DSO (daily sales outstanding).

JMR Infotech is leader of banking and financial services software and software related services has spread across 40 countries in world since its establishment in 2007. During this short incorporation, it has grown tremendously and made top banks as the clients. JMR InfoTech team has succeeded in implementing various OFSAA product to its client like OFSSA AML (anti money laundering) and KYC (know your customer). For the contribution of Implementation of Oracle product JMR InfoTech has been awarded as world first Oracle Platinum Partner with fully specialized in all financial solution.

               There is a need for a comprehensive LOS that enables the financial institution to process multiple loan types through a single LOS — effectively serving as a single point of loan origination.

Here is what should an ideal Loan Origination System comprise of:-

• Have a structured workflow for automatic routing of applications for different loan products. • Support multiple loan products and loan types. 

• Support different origination channels. • Easily interface with different external systems. 

• Provide internal credit checking, credit scoring and compliance checking.  • Maintain all the application details and provide status updates as and when required.  • Support document imaging and archiving for various loan application-related documents. Loan Origination

Loan processing is among the most complex of a financial institution’s operations. A loan origination system (LOS) is developed specially to support banks and other financial institutions’ loan application processing needs. It employs workflow technology to control and monitor the various steps in loan processing and uses digital imaging technology to reduce the delays and inefficiencies associated with paper documents.

Loan and collateral monitoring

While annual audits of loan portfolios may address these risks, time has revealed that continuous monitoring is the most efficient approach. Identifying control breaches, anomalies and high-risk activities at an early stage and employing a firm remediation strategy often prevents and minimizes the impact of any potential portfolio impairment. Lending is a key business activity in the financial services sector. The loan portfolio is one of the largest assets and a chief source of revenue for banks, but is also a great source of risk to a bank’s safety and soundness. Whether due to lenient credit standards, poor portfolio risk management, or weaknesses in the economy, loan portfolio problems have historically been among the major cause of financial institutions’ losses and failures. Loan Management Software

Global Presence of jmrinfotech​

With delivery and development centres in India, offices in 30 countries and customers spread across 5 continents, JMR Infotech is a leader in banking & financial services software and software-related services. In our short existence, since 2007, we have grown to have top banks as our clients.

Our leadership in the Banking and Financial Services (BFS) IT market is backed by better understanding of client's business needs and innovative solutions to advance their business goals. The title of World's first Oracle Platinum Partner fully specialized in all financial solutions is a testimonial to our comprehensive offering, strong focus and unmatched expertise in BFS domain.

Over the years, #JMR Infotech has grown its employee base to 315 as of April 30, 2015 located in offices across Africa, Americas, Asia, Europe, JAPAC and Middle East.  

Companies require to undertake a time consuming and costly approach of purchasing and integrating multiple tools from various vendors. Oracle Business Intelligence combines all the solutions by delivering a comprehensive product.

Oracle Business Intelligence - Key Benefits:

Oracle Business Intelligence helps a company in many ways and most importantly it reduces the cost and complexity associated with building and deploying BI solutions. It features award-winning BI tools from adhoc query, reporting and analysis to extract, transform and load (ETL) to BI application development, and more, in a single, affordable and comprehensive package. With Oracle Business Intelligence customers can leverage existing BI infrastructures to extend intelligence to users enterprise-wide to support accurate business decisions and improve business performance.

Some of the key benefits that a corporate can derive from Oracle Business Intelligence is that it makes corporate data easier for business users to access. Moreover it provides a common infrastructure for producing and delivering enterprise reports,scorecards, dashboards, adhoc analysis and OLAP analysis. It contains rich visualization, interactive dashboards, a vast range of animated charting options, OLAP-style interactions and innovative search, and actionable collaboration capabilities to increase user adoption.

Lastly it decreases cost with a proven Web-based service-oriented architecture that integrates with existing IT infrastructure. OBI Provides a powerful, near-real- time, multi-step alert engine that can trigger work flows based on business events and notify stakeholders via their preferred medium and channel. It allows users to visualize their analytics data using maps, bringing the intuitiveness of spatial visualizations to the world of business intelligence.

                                                 Islamic Banking or Sharia Banking is an age old method and traditional method of banking. This type of banking activity is consistent with the principles of sharia and its practical application through the development of Islamic economics. A more accurate term for Islamic banking is 'Sharia compliant finance'.

Here are the top 3 reasons why Islamic Banking should be adopted in present times:-

  1) According to Ernst and Young (E&Y) Islamic Banks have grown in double digits, this surpasses all conventional banks in terms of growth. In their latest World Islamic Banking Competitiveness report, shows the assets of Islamic banks grew at an average rate of 17% per year between 2008 and 2012. This is two to three times faster than the rate at which conventional banks grew over the same period, due in part to the global financial crisis. Islamic Banks have no only outperformed conventional banks in terms of growth but also outdone them in terms of profitability.

2) Economic growth has been strong in several emerging market countries with a large Muslim population. E&Y identify 25 "rapid growth market" countries which they predict will account for half of global GDP by 2020, and out of these, 10 have a high Muslim population. Iran accounts for nearly half of the banking assets in Islamic banks worldwide and the rest is in the QISMUT nations [Qatar, Indonesia, Saudi Arabia, Malaysia, UAE and Turkey where growth has averaged 6.5% per year for the last five years. Expansion of Islamic banking has been mainly through Islamic windows in conventional banks rather than in pure Islamic banks which has allowed existing banks to easily enter the Islamic banking market and is likely to continue being a mechanism for growth for the probable future.

3) Sharia Banking is still untapped in many of the countries, even places which have a presence of Sharia Banking do not have a strong existence. Hence the potential of expansion is pretty big. In Indonesia, the world's most populous Muslim country, Islamic banking currently has less than 5% market share. There are also huge untapped Muslim populations around the world including India, Pakistan and Bangladesh in South Asia; Egypt, Nigeria, Morocco and Nigeria in Africa; and a number of the former Soviet Republics.

A few smart and innovative ways can pave way for growth following steps could help banks drive innovation.

Streamlined Operating Environment

Standardized Business Processes

Automated Operating Environment

Adaptable Core Banking Systems

Successful core banking system transformations need to keep evolving and banks need to keep on building on agility and mobility. These methods at a later stage help in producing and sustaining higher revenues. Along the way, banks can gauge their progress towards practical, profitable core systems. By closing critical gaps, they can avoid efforts that don’t speed time-to-value and maximize ROI.

Three C’s of Core Banking:

Customization: The new age is all about customization and personalization; it’s not limited to price attributes of a product or service offered. It also includes the manner in which services are delivered. Aspects such as balance and balance changes of different account names, loyalty point affiliations, transaction and information alerts, and marketing alerts form a part of customization.

Convenience: The entire dimension around convenience is changing from ‘Anytime’ and ‘Anywhere’ to ‘Anyhow’. New age banking would require banks to facilitate boutique like services, providing doorstep facilities to rural branches using field agents and partners to carry out disbursements, collections and deposit transactions. Another new age concept which is emerging to the fore is transferring information without rekeying. This will have significant effects towards maintaining information accuracy and productivity across all branches.