Head office: Infosys Limited, Electronics City, Hosur Road, Bangalore 560100, India Tel: +91 80 2852 0261 Email:
finacleweb@infosys.com Other offices: India (12+), Australia (4+), Belgium, Brazil, Canada (3), China (4+), Czech Republic, Costa Rica, Denmark, Finland, France (2), Germany (4), Hong Kong, Ireland, Japan (2), Malaysia (2), Mauritius, Mexico, Netherlands (2), New Zealand (2), Norway, Russia, Singapore (2), South Africa, Spain, Sweden, Switzerland (3), UAE (2+), UK (3), US (18+) Website:
www.infosys.com/finacle Contacts: Venkatramana G (India), Amit Dua (UK) Founded: 1981 Ownership: Finacle is a Unit of Infosys Group, which is listed on Mumbai and National Stock Exchanges and NYSE. Public ownership is 29.83%; Institutions own 54.91%; Corporations (public) own 0.01%; Individuals own 13.28%; State owned shares 1.97% Number of staff: 187,000+
US activities
In the US, 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 at Union Bank was to consolidate 30 different systems. 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 mentioned, when the deal with Utah- based Zions Bancorporation was lost to TCS. Infosys then came close to buying US vendor, Open Solutions, to the extent that there was considerable due diligence. For whatever reason, Infosys ended up not buying the struggling US vendor and it was subsequently picked up by Fiserv.
This US activity ended up focused on an implementation at Discover Financial Services in the US, with little known about the project and its progress. There was some progress to the south. A first Mexican user was gained in the form of Banca Mifel in 2007, to replace its legacy solution, IBS from Miami-based Datapro. 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
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ongoing in 2012, would cover Panama, El Salvador and Puerto Rico as well as Colombia, although the bank was unavailable for comment.
In April 2014, Infosys had a breakthrough in the US for the e-banking component of Finacle. Boston-based Eastern Bank became the first internet/mobile banking software taker of Finacle in the US. The bank’s growth via acquisitions over the last few years had left it with a number of different solutions, which it decided to replace with a single centralised and harmonised platform. The existing online banking set-up is outsourced to FIS and there would be a major change by bringing Finacle in-house. The bank was keen to move away from the hosted approach for its digital channels software, as it felt that an onsite deployment would give it more control, would facilitate creating more personalised solutions and enhance user experience, according to Vikas Gupta, regional head for Americas at Infosys. Around 30,000 customers were using Eastern Bank’s online banking services in Q1 2014. By this stage, Infosys had launched a new version of Finacle, unveiled in September 2013, with an emphasis on components and an improved product factory. It also included integration adaptors for the most common parts of infrastructure, such as HP and IBM hardware stacks, Oracle and Peoplesoft general ledgers, or enterprise consoles from IBM and other facets. The latest version was unveiled as 11E. There were six new enterprise components in the 11E suite, and some of the largest Finacle customers worldwide had taken different ones of these. The components were for payments, a multichannel framework, offers and catalogue, liquidity management, loan origination and dashboards. However, it sounded as though there was more work to
do. Overall, it had been a tough year or so for the banking software business. In Infosys’ results for the year-ended 31st March 2014, it was announced that the Finacle business saw an $8 million drop in year-on-year revenue in Q4. Rajiv Bansal, CFO at Finacle, stated that the outlook for Finacle over the next year did not look much better, citing investment in the system to capture emerging markets. ‘Finacle will continue to under-perform the company to a large extent, even into next
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