Banking solutions provider Infosys Finacle on Thursday said the government’s decision to merge several public sector banks is a positive development and will not adversely impact its business.
The company, which has implemented its digital banking suite on cloud solution for Shivalik Mercantile Co-operative Bank Ltd, said it is also witnessing strong client wins internationally from markets like the US and Australia.
“Impact is positive…last year, the government had merged Bank of Baroda with Dena and Vijaya, the platform is ours,” Infosys Finacle Senior Vice President and Global Head of Sales Venkatramana Gosavi said.
When asked if there could be a loss of business on account of these developments, he answered in the negative.
Speaking at an event, he said there could be challenges on the tech front, among other areas, for these banks may be operating on different banking software and versions.
In the biggest consolidation exercise in the banking space, the government in August had announced four major mergers of public sector banks, bringing down their total number to 12 from 19.
Gosavi said Infosys Finacle has a dominant market share in India and is steadily expanding its presence in the international markets as well.
“Our early success has been in our home market as expected from a product company.
“In the last 10-12 months, we have had big wins in the US, in the UK and Australia…revenues are now secular in nature. At one point in time, this part of the world (India) was contributing largely (to revenues) but now that is changing which is in line with our aspiration for growing,” he said.
Currently, banks in over 100 countries use Finacle to cater to more than a billion consumers and 1.3 billion accounts.
Talking about the partnership with Shivalik Mercantile Co-operative Bank Ltd, Gosavi said the deployment of Finacle Digital Banking Suite on cloud will provide the bank with agility to scale operations in a cost effective manner.
The two parties started working together about a year back and about three lakh customers of the Bank have migrated to the Finacle platform.
Working with end-to-end managed services, the bank shifted its banking platform from a capital expense model to an operational expense model, ensuring that the bank only pays for what it uses without significant upfront investments.
“Without technology modernisation, cooperative banks face a persistent threat to their continuity, with big banks, fintechs and non-banking players investing to continuously expand their customer base,” Shivalik Bank MD and CEO Suveer Kumar Gupta said.
He added that the cloud-based solution will help the bank expand business, while giving customers a world-class experience.
Gupta said the bank, which has 31 branches in Uttar Pradesh and Madhya Pradesh, has received approval to expand into Delhi and Uttarakhand.
Source: Economic Times