Published Date: March 22, 2006
Core banking replacement emerging as a key priority for banks across the globe
Goa/Bangalore, March 22, 2006 The banking industry is in the midst of a transformation and business and technology professionals need to prepare themselves for the banking customer of the coming decade, who, in all likelihood, is going to be very different and even more demanding than what is seen today. This message came through clearly in the deliberations and discussions at the Finacle Conclave at Goa.
In his keynote address, Mr. K V Kamath, Managing Director and CEO, ICICI Bank, set out the ground rules for doing banking for the masses. Citing ICICI bank as a model of successfully leveraging technology to achieve leadership and competitive advantage, he traced the bank’s technology-led transformation from year 1999 with the bank deciding to use it as a disruptive tool to expand service delivery to the growing customer base coupled with lower costs. Outlining the bank’s new growth horizon, he said that the bank is now focusing on rural banking as a key growth driver and there is need for new business model and distribution strategy to reach the un-banked world.
In an interesting session on emerging technologies, William Conner, Lead Analyst, Financial Services Technology, Datamonitor said that upper tier banks are beginning to consider core systems replacement over the next five years, although due to their size and complexity, they will be approaching replacement incrementally. The new generation core banking technology will play a key role in defining business agility and operational efficiencies of the organizations to compete with the older behemoths. Underlining the importance of service-oriented architecture (SOA), he added that banks need to understand how to take advantage of the benefits it can provide and make the transition from their existing architecture with the minimum disruption. The majority of upper tier banks are expecting SOA to impact their business in the next three years and see web services as having the most significant impact. He further added.
Finacle Conclave, the prestigious global banking CXO forum, is being organized by Infosys Technologies. Over 100 delegates from 26 countries comprising of global banking leaders, leading analysts and renowned experts from the banking sector are participating in the event.
Finacle, the universal banking solution from Infosys, empowers banks to transform their business leveraging technology. The solution addresses the core banking, e-banking, treasury, wealth management, CRM, and cash management requirements of universal, retail and corporate banks worldwide. Finacle has been architected out of years of experience with global banks and offers several powerful and differentiating features making it one of the most comprehensive, flexible and scalable solutions in its class. www.edgeverve.com/finacle
Infosys Technologies Ltd. (NASDAQ: INFY) defines, designs and delivers IT enabled business solutions. These provide our customers strategic differentiation and operational superiority, thereby increasing business competitiveness. Each solution is delivered with a high degree of time and cost predictability that ensures peace of mind. With Infosys, you get a transparent business partner, business-IT alignment with flexibility, world-class processes, speed of execution and the power to stretch your IT budget by leveraging the Global Delivery Model that the company pioneered. For more information, visit www.infosys.com
Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, industry segment concentration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks or system failures, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Infosys has made strategic investments, withdrawal of governmental fiscal incentives, political instability and regional conflicts, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2005 and our reports on Form 6-K. These filings are available at www.sec.gov. Infosys may, from time to time, make additional written and oral forward-looking statements, including statements contained in the company’s filings with the Securities and Exchange Commission and our reports to shareholders. The company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the company.