Transforming Banking Girish G. Vaidya. Analyst Meet 2003© Infosys Technologies Limited...

Transforming BankingTransforming Banking

Girish G. Vaidya

© Infosys Technologies Limited 2003-2004 Slide 2Analyst Meet 2003

Agenda

» Banking Business Unit - an overview

» Products and solution offerings

» Summary

Banking Business Unit – an overviewBanking 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


Banking Business Unit – an overview

Revenues

3.7 5.1

10.14

21.73

34.62

0

5

10

15

20

25

30

35

40

1999 2000 2001 2002 2003

Mill

ion

US

D

BBU Revenue Split

68%

80%

77%

23%

20%

32%

0

5

10

15

20

25

30

35

40

2000-01 2001-02 2002-03

in M

illio

n $

Services

Products

CAGR 75%


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» 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


Marque’ Clientele

» 78 banks across 21 countries

» Some of the leading clients include :

Today, we are team of ~700 professionals both in the technical and domain streams

Largest bank in asset size based in Japan One of the largest investments

of US


Key differentiators - Implementation

» Our key mantra for faster, smooth implementation» ‘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


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


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

Product and Solution offerings – an overview

Product and Solution offerings – an overview


Finacle allows the bank to derive several key Finacle allows the bank to derive several key business benefits like faster time-to-market for business benefits like faster time-to-market for new products and services that span across new products and services that span across functional areas, easy customizability and functional areas, easy customizability and

integration of data.integration of data.

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

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.

Tightly integrated suite comprising best-of-breed solutions


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


Finacle – the lowest risk option

The Finacle suite of solutions is truly world class. They are:» 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

SummarySummary


Key Risks & Challenges banks evaluate

Change of Technology

Platform

Product Risk Technology Risk

Implementation RiskVendor Risk

Thank YouThank You

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Transforming Banking Girish G. Vaidya. Analyst Meet 2003© Infosys Technologies Limited...

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