Register now or log in to join your professional community.
The difference is mainly in the processing of the products which have different characteristics.
Although conventional core banking could be put towards incorporating islamic banking products using workarounds, the better option would always be one whcih is developed specifically for islamic banking products.
Islamic banking is an approach for banks to present Shariah-compliant products to customers which makes it distinct from conventional banking. Islamic banking is mostly used in the east/middle east
Difference is of product structures and the core concept. In conventional banking we accept deposits on a fixed mark up. however, in Islamic banking we accept deposits on profit and loss sharing basis. when it comes to lending then there is difference in procedures e.g., in conventional banking we use pledge of gold or property against a fixed or floating markup over a period of time but in islamic banking we use purchase and re-purchase agreement as in Islam use of interest is forbidden.
