TCS Financial Solutions Bangalore, India
Bancs » Product suite for retail banking and treasury/capital markets » Cobol back-end in older versions, Java front-end, component-based product suite » SaaS partnership in the US with Savvis » One US user (project underway)
Bancs TCS Financial Solutions
Tata Consultancy Services (TCS) is a subsidiary of the giant Indian Tata Group. It has a long pedigree in the US in the services sector but, as with other non-US suppliers of core banking systems, has struggled to make headway in this sector. However, TCS Financial Solutions, a unit set up in 2007 to focus on TCS’s banking software assets, had a major breakthrough in 2012 at Zions Bancorporation, beating Infosys at the shortlist stage. That project is being watched closely, as other large and mid-tier US banks weigh up their systems options. At its core, the Bancs system is a long-standing retail
banking offering that originated in Australia, within a company called Financial Network Services (FNS). A key attribute has been scalability, despite its roots in State Building Society of New South Wales. It has won several of the extremely high-end deals that have been up for grabs around the globe in the last decade, including State Bank of India and Bank of China, both for their domestic retail businesses.
The suite also has securities support, through the
incorporation of a system called Quartz which was developed jointly with TCS’s Swiss partner, TKS-Teknosoft SA (TKS). TKS- Teknosoft was subsequently bought by TCS as well. FNS also added some treasury and corporate banking support to Bancs, so it is relatively broad.
The acquisition of FNS came in late 2005 and saw the arrival of the core retail back office solution, Bancs. TCS had actually worked on the original development of the system on a contract basis. FNS had moved from Australia into Asia Pacific, the Middle East (particularly working with NCR) and Africa, and then into Central Europe. The system ran on IBM mainframe platforms as well as Unix and Windows, the latter with SQL Server. The treasury support was added in the late 1980s, with ANZ Grindlays as a key partner. This bank had taken Bancs as its retail back office system and planned on implementing it across 25 of its 47 country operations. TCS and FNS were already partners, so the takeover was not a major surprise. It added a lot of R&D and delivery
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capabilities for the banking system and can be considered one of the more successful takeovers in the industry. The deal unlocked a couple of wins which were pending, including a first success in China, at Hua Xia Bank, with the deal at Bank of China following, with this valued at $100 million. Another major win for Bancs was at Banco Pichincha, Ecuador’s largest private bank. This deal was valued at $140 million. During 2007, there was a major restructuring of its banking systems business, as everything was brought into the new unit, TCS Financial Solutions. This spelt the end of the road for the FNS and TKS-Teknosoft names. It was announced that TCS FS would function as a pure products company and the offerings would come under an umbrella brand of TCS Bancs. In a wider context, TCS boosted its Business Process
Outsourcing (BPO) activity at one fell swoop when it acquired Citigroup Global Services Limited (CGSL), the India-based BPO arm of Citi, in an all-cash deal for $505 million. CGSL had been on the market for some time, and other bidders for the operation included IBM, Capgemini and Genpact. TCS announced a full Java version of Bancs with, notably, the signing in early 2010 of Deutsche Bank as the first taker of this. It looked to be one of the largest core banking system deals in years and TCS’s largest to date, eventually intended to span 50+ countries from two hubs. A first cut-over, in Abu Dhabi, occurred on 11th December 2010, running off Bancs in Singapore. Saudi Arabia and the Netherlands followed, but the project has seemingly not moved beyond here. Going ahead, TCS BaNCS is seen to be focused on Tier 1-3 banks to support them in their transformation initiatives with componentized solutions for core banking –eg. Deposits, consumer loans, commercial loans.
TCS claims it is also
planning to launch a cloud based end to end solution offering with regional solution provider partnerships to cater to Tier 4 and community banks.
US Financial Services Technology Market Report |
www.ibsintelligence.com
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