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Understanding Infosys Finacle Core Banking System

What is Infosys Finacle?

Finacle is a banking solution built by the Indian Corporation, Infosys to provide core banking solutions and promote a growth of the e-banking facilities. It was first launched in the year 1999. It was used for the very first time by the State Bank of India to bring an overall change in its structure of E-Banking. It was built under the leadership of Sharad Hedge.

Banks Using Finacle

India’s leading banking network State Bank of India used this core banking product way back in 2003 after which it was followed by the Punjab National Bank which implemented the same in the year 2008.

SBI implemented its new treasury maintenance product Finacle across 25 nations. SBI’s total global business platform is provided by Finacle and is based on the same. Earlier the State Bank of India had its data centres over India, USA and UK. After implementation of the Finacle platform, the total database was brought under the same roof in India. This did not only help them reduce the cost but also let them provide easier and better services to the customers. Have a look at various menus under Finacle7.

Products Served by Finacle

Finacle offers a list of products, which are evaluated time to time by independent research firms like Forrester.

  • Finacle Core Banking Solution
  • Finacle CRM Solution
  • Finacle Online Banking Solution
  • Finacle Treasury Solution
  • Finacle Wealth Management Solution
  • Finacle Islamic Banking Solution
  • Finacle Direct Banking Solution
  • Finacle Mobile Banking Solution
  • Finacle Mobile Teller Solution
  • Finacle on Cloud
  • Finacle Analytics Solution
  • Finacle Alerts Solution
  • Finacle Assure Solution
  • Finacle Finanz Tools
  • Finacle Digital Wallet
  • Finacle Origination Solution
  • Finacle Omni Channel Hub
  • Finacle Youth Banking Solution
  • Finacle SME Enable
  • Finacle Payments Solution
  • Finacle Liquidity Management Solution
  • Finacle Nostro Recon Solution
  • Finacle Customer Assist Solution
  • Edgeverve Blockchain Framework for Financial Services
  • Edgeverve Digital Authentication Solution

More about Finacle

Finacle today is one of the highly demanded core banking solutions. It is powered by EdgeVerve, which is a wholly owned subsidiary of Infosys. The solutions and the services help banks of all sizes accelerate a growth in the digital world which enhances the globalisation thereof and also help the banks in maintaining a deeper and better contact and relation with the stakeholders, customers, etc. Today, Finacle is being used by banks across 94 countries and serve around 848 banked population which counts as 16.5% of the bank users globally.

Sanat Rao, the Chief Business Officer of Infosys stated that the globalisation and digitization are the only ways that could bring the cost of actions and applications among the banks low. This is because with the increasing population and digital banking facilities the banks are coming under huge pressure, leading to the increase of expenditure on infrastructure. So, cloud services and facilities are the only ways that the banks could think of and certainly there is no better alternative.

“Banks are struggling. Regulations were not considered tight, now they are tight and we believe that globally, regulators will look at how to make them ‘right’. All these challenges are an opportunity for us,” said Rajashekara V Maiya, associate VP Finacle Product Strategy 

Why Finacle?

  • Finacle services allow bank to reduce the cost of maintaining the database by downsizing the data centres into one.
  • The products of Finacle make global banking easier by bringing them to a single platform instead of maintaining scattered database.
  • The banks can adopt the Finacle services to meet the increasing needs of digital and cloud banking facilities
  • The platform ensures that the banks are able enough to keep up with the rapid changing demand regarding the banking systems of the customers.
  • With the reduction of the burden of application and infrastructure the banks will now be able to focus on the development and innovations.

Market Structure

Right since Finacle entered the market of banking solutions, it has turned the heads of the banks towards itself with its potential and great features. The Indian Corporation Infosys has successfully laid impacts on the banking sector. Bank of India, Oriental Bank of Commerce, Punjab National Bank, Bank of Baroda, IDBI Bank, Andhra Bank, Federal Bank, Punjab & Sind Bank, South Indian Bank, Qantas Credit Union in Australia and many more.

Right at its birth, Finacle was identified as a long term leader in its sphere. It was so for it provided a comprehensive setup to the banks, a customer oriented banking facilities, etc.

Infosys Finacle was positioned to be the Lead of the Gartner Magic Quadrant for International Retail Core Banking in November 2014.

The Infosys also ceased a 700 Crores INR deal with the Central Government regarding India Post Service for which Infosys had to incorporate few changes and bring transformation in the postal services of India through Finacle. The deal included digitisation of the postal services of India. Infosys was asked to set up ATM services for India Post. After the deal was ceased, around 1, 50,000 post offices all over India went under technical transformation and around 1000 India Post ATMs were set up all over India. Under the deal, Infosys was also responsible for training 35,000 India Post employees all over India regarding the usage of the newly transformed and implemented database oriented service and the software involved.

Downfall

Though the Infosys Finacle had created a demand for itself in the market due to its world class features and services, it also witnessed a gradual downfall in the year 2012. By the financial year ending of 2011- 2012 in March, Finacle’s contributions went down to 4.4% from 4.8% in the October-December quarter of 2011. It was also down already from 5.4% which was the estimate by the year ending of 2010- 2011.

Wrap Up

The global market scenario, according to Celent, a research firm, clearly states that some of the North American and European organisations already have own set of core banking facilities developed. To add to the pain of the Indian companies, there are few US and European banking solutions which have a pre-existent dominance in the market. This is more so because of the US regulatory environment of the global business market.