Ejabiah awards central banking system contract to Path Solutions
By LÃ©andra Monteiro
The newly established Saudi Arabia finance company, Positive Facilities Co. Ltd. ‘Ejabiah’, signed an agreement with Path solutions for the implementation of its basic interest-free banking platform.
Ejabiah will offer a zero rate financing product, similar to Qard Hassan or voluntary loan. Ejabiah offers a strategy to expand the penetration of low-cost digital financial services in the country and enable small and medium-sized businesses to access cost-effective financing solutions.
The company’s five-year plan is to serve up to 50,000 SME clients in Saudi Arabia with affordable 0% interest financing loans with an estimated total number of financing transactions exceeding 30 million transactions per year.
The Ejabiah interest-free product is a viable option to reduce financial exclusion by extending funding to those who cannot access any commercial microfinance loans, either due to a lack of affordability due to the high cost of funding, lack of credit history or being part of a market segment that is not served by current financial institutions.
âEjabiah will champion a more sustainable, diversified and transparent bank in the Kingdom through the implementation of a positive banking concept to create a more prosperous future for all,â commented Riyad Al Rabiah, CEO of Ejabiah. âWe believe now is the perfect time for our incorporation with a business strategy to meet the demands of more sophisticated banking clients. Our IT unit understands the vital role of digital technology in today’s banking and financial services industry to help clients identify the right financial solutions to achieve their goals, both for current and future needs. As a newly established company in Al Khobar, Saudi Arabia, Ejabiah will have the advantage of launching innovative products and services without interest to its customers while capitalizing on the latest digital alternatives â.
Path Solutions’ Sharia-compliant core banking platform is customized to ensure product market fit with positive banking and full regulatory compliance through open banking technology, which would improve profitability, perceived value, functional quality and quality of service of Ejabiah.
âWe are delighted to have our first cloud-based iMAL subscription in Saudi Arabia hosted on the Oracle cloud. This SaaS model will continue to gain momentum in the region as it delivers superior economy, enables digital transformation, improves efficiency and lowers costs. It provides our customers with a highly secure, compliant, available and scalable system while reducing the physical infrastructure footprint and allows them to focus on growing their business. The financial industry is experiencing technology-induced disruption, and therefore adaptability and rapid response are imperative to remain relevant in a changing business environment, and this model simply works, âsaid Mohammed Kateeb, Group Chairman. and CEO of Path Solutions, in a statement. âWe look forward to working with Ejabiah to enable them to seize strong growth opportunities by delivering sustainable and impactful digital solutions as more and more customers are now mastering digital services,â he said.
Positive Facilities or Ejabiah, the newly formed finance company, is preparing for deployment in the Saudi Central Bank (SAMA) sandbox and is expected to officially begin lending operations in the fourth quarter of 2021. This project will be implemented in three phases of a total estimated duration for an achievement of approximately 11 months. The first phase should be completed within 7-8 months to allow Ejabiah to expand its operations.
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