Driving innovation in Ethiopia’s Islamic finance market
The Bank of Abyssinia (BoA), a pioneer in Ethiopia’s financial services landscape, is on a mission to expand financial inclusion and lead the country’s growing interest-free banking (IFB) sector. With nearly three decades of service, BoA has become synonymous with innovation, customer trust, and Shari’ah-compliant banking excellence.
Bridging regulatory and technological gaps
Following Ethiopia’s 2019 regulatory reforms that enabled full-fledged Islamic banks, BoA faced a significant challenge. The bank needed to rapidly scale its interest-free offerings but was constrained by legacy systems built for conventional banking. With no standardized Islamic banking platforms readily available in the market and evolving regulatory requirements, BoA required a purpose-built solution to remain competitive, compliant, and efficient.
Strategic partnership with Azentio
To meet these demands, BoA partnered with Azentio to implement iMAL, a comprehensive Islamic core banking system. The platform enabled the bank to:
- Rapidly launch Shari’ah-compliant products that meet regulatory standards.
- Automate profit-sharing with custom rules and pool structures.
- Reduce operational costs and manual tasks through streamlined workflows.
- Enhance customer trust with fair and timely payouts.
- Minimize disputes and audit preparation time with real-time reporting.
A testament to transformation
With iMAL, BoA achieved measurable success in scaling its IFB operations:
- 6.07 billion birr mobilized in 2024 IFB deposits, contributing to a total IFB portfolio of 24.14 billion birr.
- Automated, accurate profit-sharing improved operational efficiency and minimized manual tasks.
- Enhanced customer confidence and loyalty through timely, transparent profit payouts.
- Reduced disputes and audit preparation time thanks to real-time reporting and audit-ready records.
Daniel Hailu, CIO of Bank of Abyssinia, remarked: “With Azentio, we’ve achieved full Shari’ah compliance while streamlining our operations and delivering transparent, efficient services to our customers. The solution has been a reliable backbone in our journey to scale and lead in Ethiopia’s interest-free banking sector.”
BoA’s journey shows what’s possible when purpose meets innovation. Where the future of banking is digital and Shari’ah-compliant, BoA partnered with Azentio to not just transform, but to lead, inspire trust, and shape the future of Islamic finance.