Infosys' Finacle banks on unique solutions to grow in fintech space
US banks are as yet an untapped market for Indian core-banking systems and there have only been sporadic deals in the sector.
Banks globally are struggling with slender margins and huge compliance costs as regulations continue to be tightened in the aftermath of the financial crisis. "Banks are struggling. Regulations were considered loose, 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," Rajashekara V Maiya, associate VP Finacle Product Strategy, told ET.
US banks are as yet an untapped market for Indian core-banking systems and there have only been sporadic deals in the sector. He added that Infosys was looking to give its clients access to innovative technologies through tie-ups with startups.
"At Infosys, we believe that we do not need to reinvent everything we do. Earlier this year, we launched Finacle Fintech Connect. We had about 6,000 entries, out of which we shortlisted 25. We took that down to about five and we are offering these solutions to our customers," Maiya said.
Fintech startups Active.AI and ToneTag are some of the companies that have tied up with Finacle. "When Blockchain started, banks created their own internal centres-of-excellence and proof-of-concepts because there was no talent available anywhere. Now, they are beginning to engage with outside providers," Maiya said.