ANDiS4EMV supports Islamic banking

 
Latest version of Bell ID's ANDiS4EMV solution enables issuers to comply with the specific requirements of the Islamic banking system.

Rotterdam, 03 January 2006

The principles set out in the Islamic banking code are not new. With increasing globalisation, financial institutions from Islamic countries are doing more and more business with companies with no Islamic background. Bell ID is aware that the capacity to operate in line with - and to be sensitive to - Sharia principles is both necessary and desirable to meet its customer's requirements.

The principle of sharing risk in Islamic finance is fundamentally different from the practice of charging interest. Prohibition of payment and receipt of interest on deposits and loans are key concepts in the Islamic economic system. Islamic bankers, keeping pace with sophisticated techniques and latest development, have evolved investment instruments that are not only profitable but also ethically motivated.

Islamic law extends the requirements on contracts to ensure security and fairness in financial transactions. These restrictions have an impact on the launch of banking card products, IT infrastructures and joint initiatives such as EMV.

André Kievit, Sales Manager at Bell ID, states: We at Bell ID know it is essential to support companies that apply Islamic banking principles in order to enhance quality of service. Therefore, we are happy to confirm that Bell ID's ANDiS Card, Application and Key Management Systems is inline with Islamic Sharia practices.

 The primary difference between an EMV payment process and transactions performed in line with Islamic banking principles is that the latter requires extensions to the current security model and message flow. Accordingly, ANDiS Key Management System is a crucial component ensuring management, generation, exchange and storage of the cryptographic keys.

 In addition to key management, ANDiS4EMV Smart Card and Application Management System provides the following migration path:

Following these principles will create a real reduction in sales transaction expenses. The increase in Islamic transactions will result in additional revenue stream for both merchants and issuers. EMV provides a good basis for interoperability and global coverage. Furthermore, in view of the fact that cardholders already have a trust relationship with their issuer, the existing EMV infrastructure will result in cost-effective solutions.

 
About Bell ID

From its base in Rotterdam, the Netherlands, Bell ID B.V. has developed ANDiS©, its open software platform comprising of a suite of turnkey products and services for multi-application smart card and key management schemes. Bell ID operates as main contractor and/or as technology and software platform provider. By providing highly secured, modular, flexible and scalable smart card management solutions, Bell ID has gained a leading position in its market segments. Bell ID's clients include Governmental and Financial institutions, large Corporations, Universities and Telecommunication companies around the globe.