Failure at Union Bank


On the other side of the Atlantic, arguably even more notable was the fact that Union Bank (formerly Union Bank of California) appeared to be on the point of signing with Infosys for Finacle towards the end of 2008. The bank declined to comment at the time, but Infosys’ share value soared in late October that year on the back of rumours of this deal. In 2009, the year Union Bank contracted Infosys, it put the price tag on its project at $200 million. This implementation was repeatedly cited as an important one for Infosys in its efforts to penetrate the US banking market, and was also a significant contract in its own right, with Union Bank being the 18th largest bank in the US (according to 2010 data from Federal Deposit Insurance Corporation). The new Finacle-based platform was to consolidate 30 different systems at Union Bank. However, the project came to a permanent halt in mid-2011. According to Infosys, the reason was Union Bank’s ‘changed business priorities’. The only comments from Union Bank were that the project was ‘in the past’ and was not something the bank would be focusing on. Infosys insisted that the parting was done ‘on amicable terms’. In terms of additional US activity, there was further disappointment as a deal with Utah-based Zions Bancorporation was thought to be lost to TCS and there was a failed attempt to acquire US vendor, Open Solutions (subsequently picked up by Fiserv). An implementation at Discover Financial Services in the US remained ongoing.


Further international growth


There was progress, nevertheless, in Latin America as a first Mexican user was gained in the form of Banca Mifel. In 2007, the bank decided to replace its legacy solution, IBS from Miami-based Datapro. Finacle was selected the following year after a nine month evaluation process, initially involving ten vendors, which was whittled down to Infosys, Temenos, Fiserv and Oracle FSS. The implementation commenced in 2009 and was due for completion in late 2011. Banca Mifel, however, later overlooked Finacle for its treasury requirements, opting instead for Financial Software Systems’ Spectrum in 2010. Bancolombia, Colombia’s largest universal bank, also signed with Infosys late in 2009, planning to standardise its operations on Finacle. The project, which was due to last into 2011 but was still believed ongoing in 2012, would cover Panama, El Salvador and Puerto Rico as well as Colombia, although the bank was unavailable for comment. This would be the Indian vendor’s second attempt in Panama, where an earlier project at Banco Continental de Panama was unsuccessful.


In the Middle-East, Oman-based Bank Dhofar selected Finacle for its 52 branches to replace Misys’ Bankmaster. Oracle FSS, Polaris and Misys were also considered, with Temenos being beaten at the shortlist stage. The implementation was completed in mid-2010. Bank Dhofar later chose Path Solutions’ iMAL for its new Islamic off-shoot, Maisarah Islamic Bank, following the decree by the country’s authorities that Oman’s banks had to fully separate their conventional and Shari’ah-compliant activities. Other wins around this time came at DSB Bank in the Netherlands (its first win in the country); Akbank (although this project failed to materialise, see below); and Rizal Commercial Banking Corporation (RCBC) in the Philippines (the first taker of Finacle on a Linux DB2 mainframe platform). A cut-over at Hatton National Bank came in 2009, with the Sri Lankan bank succeeding with Finacle where it had failed with Temenos’ Globus/T24. The practical work started with Infosys delivering five pilot sites, including the head office (with major central functions such as the GL) and four branches. This was completed by September 2008. Following the successful hand-over, the bank then took over the roll-


out, with the remaining 186 branches going live at the end of August 2009. However, there were more clouds on the horizon. DSB Bank in the Netherlands went bust late in the year, so Infosys’ win there did not yield the rewards it could have done for the vendor. Also, following reports that the implementation at DBS Bank in Asia Pacific had been unsuccessful, Sanat Rao, Infosys’ head of sales for Finacle, confirmed there had been a ‘time-out’ in Singapore and Hong Kong, but suggested there were separate deals with DBS in other countries. According to an update provided in August 2011 by David Gledhill, MD and head of group technology and operations at DBS, in 2009, the bank initiated a project to implement Finacle 10.2 (it has already had live sites with the 10.1 version by then) across a number of markets. As a result, Finacle now runs as DBS’s core banking solution in twelve markets. These include Hong Kong, China, Indonesia, Taiwan, India and Vietnam. The roll-out has enabled the bank to enhance product features for retail and corporate customers, and has also improved operational efficiency and MIS reporting, claimed Gledhill. Also in 2009, DBS implemented Finacle’s liquidity management module in Singapore ‘to help manage funding for a number of large corporate clients’, said Gledhill. Meanwhile, the CRM module has been deployed in all geographies for the management of the global corporate customers’ relationship. Over the following three years, DBS continued to add on modules across its key markets. Kiwibank in New Zealand, which had signed for Finacle in 2008, also cancelled, re-committing to Ultradata, its existing vendor, in early 2010. There were some losses in Nigeria on Infosys’ customer list following the nationalisation of eight of the country’s banks in 2009 and the subsequent conclusion by the Central Bank of Nigeria that these banks suffered from over-indebtedness, exposure to non-performing assets and corporate governance problems. Infosys has teamed up with Microsoft for Finacle on Azure and has signed a deal with Qantas Credit Union in Australia for a private cloud deployment. The deal at Qantas Credit Union is for private cloud, rather than Azure, but represents a notable breakthrough for Infosys in this sector. The deal spans core banking, e-banking, mobile, digital and Infosys’ Edgeverve digital contact centre offering. The project at Qantas Credit


Back Office Systems & Suppliers (BOSS) | www.ibsintelligence.com 375


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