Path Solutions: MEED Assessment

07 March 2011

The company is continuing to grow through penetrating new markets in Africa

In the late 1990s, Path Solutions began focusing on developing products that were competitive internationally and has since established itself as the leading provider of sharia-compliant banking software services.

The growing popularity of Islamic finance has helped the firm to quickly increase market share. Banks from London to Kuala Lumpur now run Path Solutions’ systems, which is creating both loyalty and brand recognition.

One of the keys to its success has been the iMAL suite. The creation of a fully integrated system enables banks to run all their IT systems on Path Solutions’ platforms, avoiding the need to resort to external providers. This also enables Path Solutions to offer more competitive pricing to its clients.

Servicing the specific technology requirements of Islamic banking institutions is the cornerstone of Path Solutions’ business model and it has proved successful in a short space of time. The firm has seen its revenues grow 2,300 per cent from $1.25m in 2004 to $30m in 2010.

Its branding as a Middle East-based firm that understands the market well has also contributed to Path Solutions’ success. Its services are not viewed as off the shelf items re-engineered for the Islamic market.

Islamic banks are coming under pressure from customers to develop more efficient delivery channels, using both the internet and mobile banking. Path Solutions’ strong position in the Islamic finance market means it is well placed to meet this demand.

The firm did not escape the economic downturn that hit the region’s financial services sector. The crisis impacted Path Solutions’ capacity to expand in Europe and even the mature Gulf markets suffered. However, the firm is continuing to grow through penetrating new markets in Africa. With the strong long-term growth forecast for the Islamic finance sector, Path Solutions’ early mover advantage, combined with a strong brand appeal, should ensure continued revenue growth. 

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