Further developments and sales
In early 2006, Fernandes said that Infosys had invested more than $20 million in Finacle over the previous two years. He said that future enhancement work would include the areas of product bundling, liquidity management, and Islamic banking, plus a debt collections module. In late 2007, Fernandes departed from Infosys to pursue other interests. His replacement as head of the Finacle business was Haragopal Mangipudi. He had been with Infosys since 1993, starting with five and a half years in product engineering and culminating in eight years or so as head of global professional services. Meanwhile, on the implementation front, Aspis Bank in
Greece went live with the treasury portion of Finacle in early 2006, with the larger core retail portion following about a year late, in the final quarter of 2007. And in the US, SBI went live in its largest operation, New York, adding another cut-over in its 20+ site Finacle roll-out. Reflecting the company’s continued success, year end
figures at 31st March 2006 were again encouraging. Infosys reported revenues of $2.15 billion, a year-on-year growth of 35 per cent. Its consolidated revenue increased to $2.76– $2.80 billion, up between 28 and 30 per cent. It added 15,965 employees for the year. It was predicting earnings per share of $2.57–$2.61 for the following financial year. Continuing the positive trend, in June 2006, as mentioned, another of the Indian public sector banks, United Bank of India, announced that it had selected Finacle for its core system. This left only Dena Bank and Punjab & Sind Bank to go, with the former opting for Finacle a few months later, and the latter making a less predictable decision when it chose Symbols from System Access, in partnership with Satyam. United Bank had the predictable shortlist of Infosys (with Hewlett-Packard as the partner), TCS with Bancs, and I-flex (with IBM as the partner). Ernst & Young worked on the selection; the RFP was circulated in January 2006, so it was a relatively swift selection. A source at the bank suggested that the Infosys bid was not the lowest priced.
Most of United Bank’s 1300+ branches are in eastern and north eastern parts of the country. It had a rocky time in the 1990s and there were five efforts at recapitalisation by the Indian government. As with most Indian banks, UBI had a mix of decentralised systems in its automated branches, including TCS’s ISBS. The bank’s general manager, IT, Ashoke Roy Choudhury, said the intention was to roll out Finacle to 600 branches by September 2009. Networking of those branches was under way, working with HCL Comnet. The project at Punjab & Sind with Symbols did not go well.
The next attempt was with I-flex’s Flexcube, with Satyam as system integrator. By March 2009, Punjab & Sind Bank was live with the first phase of Flexcube, according to RP Singh, chairman and MD of the bank at the time. In August 2009, Singh was replaced by a new chairman and MD, GS Vedi. Satyam was then replaced (this was not the worst problem Satyam was experiencing in 2009, being embroiled in lawsuits and fraud allegations). A new tender was issued and this time the contract went Wipro’s way. The ten-year deal, worth nearly
200
$22 million, was for Wipro to implement and support Finacle. There was also chopping and changing at Kotak Mahindra
Bank, with Infosys again the winner in the end. By June 2010, the implementation of Finacle was under way. The bank was a long-standing client of Oracle FSS (as I-flex had become) and used Flexcube, as well as the vendor’s offering for wealth management, Flexcube Private Banking. The latter was the more recent of the two Oracle FSS projects at Kotak Mahindra, dating back to 2008. Arvind Kathpalia, who spoke at length to IBS about the Flexcube project and who was group head of operations, technology and finance at Kotak Mahindra at the time, had changed roles, becoming group head of risk. The operations and technology were now handled by Vikram Sood (group COO) and Aruna Rao (CTO, EVP, and ex-Polaris). Neither was available to comment. The bank’s spokesperson told IBS that a ‘confidentiality clause with our vendors’ prevented it from disclosing details. Infosys also declined to comment further. A spokesman at Oracle FSS stated that ‘Kotak Mahindra Bank is operational and live on Flexcube and Flexcube Private Banking, and it has upgraded to the recent release of Flexcube Private Banking’. In 2014, Kotak Mahindra Bank and ING Vysya Bank received the necessary approvals from India’s central bank to merge under the Kotak Mahindra brand. ING Vysya was the first user in the country of FIS’s Profile core banking system so there was immediate speculation as to which way the bank would go for its core. Infosys’ push into Europe gained a further boost in September 2006, with news of the implementation of Finacle at the UK and Ireland-based Zurich Banking Business Unit of Zurich Financial Services (ZFS). The bank decided to replace its existing legacy systems with Finacle core banking, Finacle consumer e-banking and CRM solutions. The deal took ‘close to six months from RFI to decision’,
according to Sujeet Pramanik, Infosys’ marketing manager for Europe. ZFS started with a list of eleven at the RFI stage. This was whittled down to four – Infosys, I-flex, Temenos and Misys – for RFP. The final shortlist was Infosys and Temenos. ‘ZFS wanted to standardise its processes and systems across its three banking brands – Zurich Bank, Dunbar Bank and Zurich Bank International,’ said Pramanik. He said that implementation was planned in three phases, with two of these already live in September 2006, and the final one shortly afterwards. Following hot on the heels of ZFS’s announcement came further evidence of Finacle’s encroachment into Europe. In October 2006, Hrvatska Postanska Banka (HPB) in Croatia selected Finacle to replace in-house legacy systems operating on a decentralised basis. The bank also decided to take Infosys’ e-banking and treasury solutions. The roll-out at the bank was phased: the e-banking product went live in mid-2007, and Finacle Treasury followed. HPB migrated its banking functionality to Finacle in May 2010 according to a spokesperson from the bank. There was also good news for Infosys at Emirates NBD. Not
Universal Banking Systems Market Report |
www.ibsintelligence.com
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