Transcript Analyst Meet 2003

Transforming Banking
Girish G. Vaidya
Agenda
» Banking Business Unit - an overview
» Products and solution offerings
» Summary
© Infosys Technologies Limited 2003-2004
Analyst Meet 2003
Slide 1
Banking Business Unit – an overview
Banking Business Unit – an overview
1999
2003
Revenues ( US$ mn )
3.70
34.62
Employees
237
700
Customers
25
78
Countries
8
21
» CAGR of 75% over the four year period
» BBU offers end-to-end banking product solutions under the
Finacle brand covering
»
»
»
»
Core Banking
Consumer and Business e-banking
CRM
Treasury
© Infosys Technologies Limited 2003-2004
Analyst Meet 2003
Slide 3
Banking Business Unit – an overview
Revenues
40
34.62
30
21.73
25
20
15
10
5
10.14
3.7
5.1
0
1999
2000
2001
2002
2003
BBU Revenue Split
40
35
30
in Million $
Million USD
35
32%
25
Services
20
23%
Products
15
68%
10
20%
5
80%
77%
0
2000-01
© Infosys Technologies Limited 2003-2004
2001-02
Analyst Meet 2003
2002-03
Slide 4
Leader in South Asia
» Won significant deals for centralised core banking in the South Asian
region (India, Sri Lanka, Nepal and Bangladesh) in the last 7 months
» Clear market leader in India
» Over 60% market share in the centralised core banking solution space
across multiple segments
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»
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First generation private sector banks: Bank of Rajasthan, Karnataka Bank etc
Second generation private sector banks: ICICI Bank, IDBI Bank, UTI Bank etc
Public Sector banks: Union Bank of India, Punjab National Bank etc
Co-operative banks: Cosmos Bank
Foreign banks: ABN AMRO Bank
» Over 60% market share in the retail internet banking solution space
» ICICI Bank, IDBI Bank, ABN AMRO Bank etc
» Finacle Core Banking is powering some of the largest sites in India
» 8 out of 10 banks that have more than 100 branches running on a
centralised core banking solution are powered by Finacle Core Banking –
80% market share!
» The largest core banking installation in India is powered by Finacle Core
Banking
© Infosys Technologies Limited 2003-2004
Analyst Meet 2003
Slide 5
Marque’ Clientele
» 78 banks across 21 countries
» Some of the leading clients include :
Largest bank in asset size
based in Japan
One of the largest investments
of US
Today, we are team of ~700 professionals both in the technical and domain streams
© Infosys Technologies Limited 2003-2004
Analyst Meet 2003
Slide 7
Key differentiators - Implementation
» Our key mantra for faster, smooth implementation
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»
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‘Empowerment’ and ‘Enabling’ of the core team of the Bank
Insist on right composition and a ideal core team
Core team to perform their activities hands-on to build confidence in them
Train the trainer strategy
» Able to withdraw onsite support fairly quickly - maximum not exceeding 2
months
» Core team of one of the largest public sector banks did the rollouts all by themselves
with no support from our end
» One of the largest banks of Nigeria carried out roll-outs in 66 branches in 3.5 months
post Pilot again with limited support
» This in a market where competition has taken about 2 years to put in about 30+ branches into
the network
» Risk Mitigation policy
» Our philosophy is to be an integral part of the bank’s transformation initiative
and not just offer a typical application vendor
“…but beyond that we draw comfort in knowing two things that Infosys offers, one is their superb risk
mitigation policy that they have and secondly implementations, they never had a failure. That gives us a
lot of comfort”
Herb Phillipps, Member of Board and Director, Transformation Initiatve, NCB, Jamaica
© Infosys Technologies Limited 2003-2004
Analyst Meet 2003
Slide 8
Speed to deliver
» Implementation track record
» Consistently delivering projects on time
» ~70% of projects on time
» 26% of the delays caused due to delays in infrastructure readiness or external
factors
» 4% delays caused when the customer has changed the scope
» 31 out of 35 core banking customers signed prior to March 2003 are
already live
» An average implementation timeframe of ~8 months and the shortest
being 4 months from project initiation to pilot going live
» Have handled projects of various dimensions and complexities
» Big Bang
» Phased rollout (Pilot branches followed by branch rollouts)
» Modular rollout (First Live with Retail followed by Trade Finance)
» Systems replaced
» Mainframe/AS400, Open Systems, Netware based
© Infosys Technologies Limited 2003-2004
Analyst Meet 2003
Slide 9
Our partners - Sharing our success
» Global alliance with Sun Microsystems
» Strong partnership with Oracle, Intel, Microsoft, CGEY, Accenture
» Complementary solution providers
» Oracle, NCR, Newgen, ACE etc
» Service partners to extend our reach and enrich customer value
proposition
» Channel partners across all the regions that we operate, who act
as an extension to our sales effort
© Infosys Technologies Limited 2003-2004
Analyst Meet 2003
Slide 10
Product and Solution offerings –
an overview
The Finacle suite
of solutions is a
suite of new
generation,
functionally rich,
fully integrated,
end-to-end
enterprise
banking solutions
from Infosys
Based on open systems and
industry standard platforms
Tightly integrated suite comprising
best-of-breed solutions
Addresses the end-to-end
requirement of banks like core
banking, retail e-banking, online
corporate banking, CRM and
treasury operations of the bank
Offers banks the benefits of
tremendous flexibility, easy
integration capabilities and
ROI on the bank’s investment
in technology.
Finacle allows the bank to derive several key
business benefits like faster time-to-market for
new products and services that span across
functional areas, easy customizability and
integration of data.
© Infosys Technologies Limited 2003-2004
Analyst Meet 2003
Slide 12
Infosys – a long term player - investing for
the future
» Periodic briefings and joint review with leading industry research
firms / consultants
» Acquired a Signature capture and display system
» This was already being offered to customers through a third party
solution – this acquisition was to de-risk our dependence on the third
party for providing this small but crucial solution
» This solution is now being enhanced to include signature verification
» Acquired the rights to the source code of a CRM solution
» This solution completes our end-to-end story
» Finacle CRM is a banking specialty CRM solution
» We have already added and successfully deployed a new module –
Origination module – which has found good acceptance in the
market
» Acquired a Treasury solution
» Fills a long standing gap in our solution set
» Integration with other solutions largely complete
© Infosys Technologies Limited 2003-2004
Analyst Meet 2003
Slide 13
Finacle – the lowest risk option
The Finacle suite of solutions is truly world class. They are:
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Feature rich
Proven
Robust
Scalable
Secure – Finacle Core Banking has been certified CoBIT compliant,
Finacle eChannels and Finacle eCorporate security features have
been audited by E&Y
© Infosys Technologies Limited 2003-2004
Analyst Meet 2003
Slide 14
Summary
Key Risks & Challenges banks evaluate
Product Risk
Technology Risk
Change of
Technology
Platform
Vendor Risk
© Infosys Technologies Limited 2003-2004
Implementation Risk
Analyst Meet 2003
Slide 16
Thank You
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