Abyssinia Hires Path Solution to Boost Interest-Free Banking Services

The Bank of Abyssinia

The Bank of Abyssinia (BoA) has taken a step towards improving its interest-free banking services by signing a partnership with Path Solutions, a software solution provider for Islamic banks and financial institutions. Abyssinia, which reported over 850 million Br in profit last year, is looking to upgrade its Ameen interest-free banking services with automated processing, enabling more accurate profit calculations and efficient distribution, its executives say. The Bank started its Ameen service in late 2017 following a directive from the National Bank of Ethiopia (NBE) that allowed banks to establish interest-free services. It currently offers these services at all 503 of its branches across the country. “Our partnership with Path Solutions is vital to ensure all Islamic requirements are met for our stakeholders and to compete in the rapidly changing Islamic financial landscape in the country," said Abdulkadir Redwan, director of interest-free banking at Abyssinia. Over half of the private commercial banks currently operating in the country provide interest-free banking services. In 2018, the central bank passed another directive that allowed for the establishment of full-fledged interest-free banks. Two such banks (ZamZam and Hijra) are preparing to begin providing their services this year.