 "Infy's Finacle to power Paytm's payments bank")
As it gears up to launch its new payments banks in August, mobile wallet turned e-tailer Paytm is learnt to have selected Infosys' Finacle for its core banking system. Wipro, another Bengaluru-headquartered information technology services company, is setting up the tech infrastructure at Paytm as system integrator.
"Infosys has obtained the interim letter of intent and Paytm is likely to make an announcement to this effect after obtaining permission from RBI (Reserve Bank of India)," highly-placed sources told Business Standard. Sources at Infosys confirmed this, saying that a joint announcement to this effect would be made in Mumbai sometime next week. A Paytm spokesperson declined to comment.
| INFY’S FINACLE REACHES ANOTHER PINNACLE |
FINACLE’S REACH
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Apart from Finacle, the other core banking products that were in the fray at the initial stages included Oracle Financial Services Software and BaNCS, a core banking solution owned by Tata Consultancy Services (TCS), sources added.
Finacle is one of Infosys' most successful products till date. Developed in 1999, the product commands 60 per cent market share in the core banking product space in India. Some of the prominent banks and financial institutions in India that use Finacle are ICICI Bank, Punjab National Bank, Bank of Baroda, Vijaya Bank, Axis Bank and IDBI Bank.
Infosys has also deployed the Finacle CBS platform at India Post, which underwent a massive technology modernisation to transform its post offices as 'mini banks'. India Post is also one of the payments bank licence holders and is expected to launch the service sometime next year.
Among the other payments bank licence holders, Airtel is also learnt be deploying Finacle core banking solutions banking on the telecom service provider's long-standing partnership with Infosys. In 2012, Bharti Airtel had selected Infosys as a technology partner for its wallet service, Airtel Money. Infosys had deployed its mobile commerce platform WalletEdge to power Airtel Money.
At present, Finacle is part of EdgeVerve Systems, a wholly-owned subsidiary of Infosys, that focuses on products and platforms business. In the financial year ended March 31, products, platforms and solutions accounted for five per cent of Infosys' total revenues of Rs 62,441 crore.
In August last year, Paytm, which is 40 per cent owned by Chinese e-commerce giant Alibaba, along with 10 other players, had got approval from RBI to launch payments banks. Of these 10, three players - Tech Mahindra; a consortium of Sun Pharmaceutical Industries promoter Dilip Shanghvi, IDFC Bank and Telenor Financial Services; and Cholamandalam Investment and Finance Co - have withdrawn their plans.
As a system integrator for Paytm's payments bank, Wipro will manage the integration of various systems such as regulatory reporting and anti-money laundering solutions, apart from looking after Paytm's data centres.
SOME LARGE BANKS IN INDIA USING FINACLE
- ICICI Bank
- Punjab National Bank
- Bank of Baroda
- Federal Bank
- Corporation Bank
- United Bank of India
- IDBI Bank
- IndusInd Bank
- Vijaya Bank
- UCO Bank
- ING Vysya Bank
- Andhra Bank
- Oriental Bank of Commerce
