Aditya Birla picks Infosys Finacle core system for new bank
Indian firm Aditya Birla has chosen the Infosys Finacle core banking system for its upcoming joint venture (JV), Aditya Birla Idea Payments Bank.
Aditya Birla has got in-principle approval from the Reserve Bank of India and plans to set up the new payments bank by the end of its financial year (2016-17). Aditya Birla will own 51% of the bank, while Idea, a mobile network operator in India, will own 49%.
The JV is in the process of appointing its senior management team, and it will partner with its 100% financial services arm Aditya Birla Financial Services, along with unnamed “select universal banks” to offer a range of banking products.
The company will integrate with Idea’s national electronic funds transfer, immediate payment service and prepaid payment instruments business, so the new bank will run as a “single entity”.
Earlier this year, another start-up payments bank in India, Paytm, signed for the Finacle core system. Wipro was selected as system integrator.
In Infosys’ financial results for Q2 FY 2017, the quarter ended 30 September 2016, it says its Edgeverve business (which includes the Finacle unit) “delivered a strong performance with 48 wins and 23 go-lives”. One of these includes Infosys teaming with Huawei to bring Finacle to the Huawei FusionCloud.
Dr. Vishal Sikka, CEO, says the firm continues to “navigate an uncertain external environment” and “considering our performance in the first half of the year and the near-term uncertain business outlook, we are revising our revenue guidance”.
Sikka adds: “Longer-term, I believe it’s increasingly clear that our industry’s future lies in evolving from a cost-based, people-only model, to one in which people are amplified by software and AI [artificial intelligence].”
In terms of revenues, Infosys reported $2.5 billion – a quarter-on-quarter (QoQ) growth of 3.5% in reported terms; 3.9% in constant currency terms.
Operating profit was up, with $644 million for the quarter – a QoQ growth of 7%; and a year-on-year (YoY) growth of 5.6%. Net profit was also positive – $539 million for the quarter; meaning a QoQ growth of 5.5%; and YoY growth of 3.8%.
The company’s revenue outlook (consolidated) for the fiscal year ending 31 March 2017, under IFRS, is that revenues are expected to grow 8-9% in constant currency.