IDBI Intech Ltd, the technology services arm of IDBI Bank, is expanding into business geographies like Europe, South East Asia and Japan to provide services including digital regulatory compliance. The firm is also in talks to acquire fintech firms to boost revenue offerings, Surajit Roy, MD & CEO, IDBI Intech said.
At present it has 20 fintechs in its ecosystem.
Private sector lendet IDBI Bank, which holds 100 per cent stake in IDBI Intech, is looking to divest 49 per cent stake in the Infotech firm. The lender has appointed IDBI Capital markets as advisor to rope in a strategic investor. It aims to finalise deal in the current financial year.
It has roped in technology advisory firm, Lemon Advisors UK Ltd, to extend its fintech products and services for the banking and financial services sector to new global markets. IDBI Intech has a suite of products in the area of Financial Crime and Payments.
Roy said this association will help IDBI Intech access global markets by leveraging the significant reach that Lemon Advisors brings on board, across the geographies in Southeast Asia, Japan, Australia, the UK and the EU.
IDBI Intech posted an income of Rs 115.08 crore with net profit of Rs 12.07 crore in 202021, up from Rs 99.09 crore with net profit Rs 9.07 crore in 2019-20. It plans to total reach revenues of Rs 180-190 crore in two-three years, Roy added.
The company aims to build a profitable portfolio of its global revenue over the next 18-24 months from these regions (EU, South East Asia etc).
It is estimated that the global spends by financial institutions on regulatory compliance are projected to grow at the rate of 21 per cent to over $5.6 billion by 2024. Nearly 75 per cent of this spending will be spent on financial crime prevention and detection.
Source: Business-Standard