Belgian financial services technology firm Callataÿ & Wouters is partnering with IA Group, the Malaysian consulting, technology and outsourcing company, to develop an Islamic banking system, initially for Malaysia and then the global market.

Partnering with IA is part of an ongoing drive to expand in South East Asia and marks a commitment to the Malaysian market, Callataÿ & Wouters said in a statement. The system’s first client will go live with Thaler Islamic Banking by early 2010 and from then the system will be rolled-out globally.

The Thaler Islamic Banking system includes functionality for deposits, loans, securities, treasury and payments, and can run either as an end-to-end core banking system, or on a modular basis to support individual business lines such as wealth management.

“As Islamic banking continues to grow around the world, Shariah-compliant solutions have to look to provide alternative banking and services particularly in Asia and the Middle East. For Callataÿ & Wouters, the partnership with IA presents an opening to not only acquire new customers in the region, but also to venture into a new line of business, offering a solution with global reach and opportunities,” said Marc Groote, chief executive of Callataÿ & Wouters.

The development of Thaler Islamic Banking can be seen in the context of global growth in Islamic finance, and an explosion in Shariah-compliant investment and banking products. While Callataÿ & Wouters is hoping to expand its presence in South East Asia through partnering with IA, for its part the Malaysian firm is aiming to position itself to tap into the growth of Islamic finance in the European market.