Over 50% of Global Retail Banks Expect Digital Investments to Yield Measurable Returns by 2020: Infosys Finacle-Efma research

Study reveals digitizing products and services, customer journey and security as top focus areas for innovation and transformation

Bangalore, India and London, UK – November 8, 2017: Infosys Finacle, part of EdgeVerve Systems, a product subsidiary of Infosys (NYSE: INFY), and Efma, a global not-for-profit organisation, today launched the ninth annual study of Innovation in Retail Banking. The research revealed that technology investments in 2018 will revolve around ‘topical’ areas such as information security, advanced analytics and open banking APIs, as opposed to ‘future-looking’ areas such as conversational AI, robotic process automation, the Internet of Things, augmented reality or virtual reality. However, 70% of organizations planned to support a conversational AI solution, with close to 25% having made investments in AI.

According to the report, retail banks continue their thrust on innovation in all functional areas, with customer experience and channels (both at 78%) being at the forefront. Other segments that have witnessed higher spends in innovation include products (67%), process improvement (64%) and marketing (57%).

The research, in which over 300 bankers globally participated, found that retail banks consider large technology companies, challenger banks, and smaller fintech start-ups as threats to their growth. Similar to 2016, the greatest impact of transformation is expected to be in the areas of payments and mobile wallets.

Other key findings:
· The top three innovation challenges include systems integration, legacy technology, and the time and cost required to move from concept to reality

· Small and mid-size banks are falling behind in virtually all levels of innovation, reflecting an inability to invest, the impact of competing priorities, the need to focus on cutting costs and respond to compliance requirements

· More than 50% of respondents expect to see a measurable ROI from their investment in innovation in 1-3 years; more than 30% expect to see results in less than a year

· Only 10% of respondents have a robotic process automation solution

· There is a vast distribution on the level of maturity within organizations leveraging data-driven insights. Nearly 37% of banks believed they were able to provide only descriptive analytics based on what had already happened. Nearly 20% of banks (usually larger firms) stated they have sound predictive capabilities and can help customers understand what will happen in the future. Interestingly, only 15% of banks were able to provide advisory or prescriptive capabilities around what the customer could do in the future given the insight known

· The challenge of acquiring the right skills and expertise in innovation led areas such as AI, blockchain and digital banking is a major concern across the industry

Quotes:
Vincent Bastid, CEO, Efma:
“Nowadays so many new technologies are reaching maturity and a growing number of new entrants are offering alternative customer experiences and transaction interfaces. The 9th edition of the Innovation in Retail Banking study provides a roadmap to help organizations of all sizes prioritize their strategic choices and investments. We also believe the insights from this report will help incumbents strengthen their innovation initiatives and be more successful in their deployment.”

Sanat Rao, Chief Business Officer and Global Head of Finacle:
“The 9th edition of the Innovation in Retail Banking report clearly reflects the sentiment we are witnessing globally. The case for investing in digital transformation and innovation has never been stronger, with changing customer preferences, technology upsurge and competition from the non-banking sector. Finacle has proactively invested and developed capabilities across the focus areas identified in the report, to help customers stay ahead with their innovation programs. We believe that this report will help banks with their planning and technology investments.”

Jim Marous, Owner and Publisher of the Digital Banking Report and author of Study:
“As we expanded the scope of organizations included in this year’s study, we find a significant difference in the innovation maturity and commitment to technology investment between the largest and smaller organizations, with smaller firms appearing to fall further behind market leaders. We also see a continued focus on iterative innovation as opposed to disruptive innovation, limiting the potential benefits of big data, advanced analytics and digital technologies. The winners in the future will be defined by those organizations that can leverage these three pillars in the delivery of a better customer experience.”

MauBank Adopts Infosys Finacle Leasing Solution to Drive Business Growth

Infosys Finacle, part of EdgeVerve Systems, a wholly-owned subsidiary of Infosys (NYSE: INFY), and MauBank, a leading bank in the Republic of Mauritius, today announced the bank’s successful adoption of Finacle’s Leasing Solution for its strategic leasing services business. MauBank’s leasing system will run on a single platform that enables higher operational efficiency, reduced costs and an enhanced banking experience for its customers.

The merger of Mauritius Post and Cooperative Bank (MPCB) and National Commercial Bank (NCB) in January 2016 created the new MauBank, which is powered by Infosys Finacle Solutions that includes Core Banking, Online Banking, Treasury and Alerts. Furthermore, NCB’s subsidiary Mauritius Leasing Company, offering leasing products, was also integrated into MauBank and the Finacle Leasing Solution was chosen to replace its earlier legacy third-party platform.

Highlights:
· The implementation was completed in 10 weeks, with zero impact on ongoing customer services
· The bank has increased operational efficiency by over 40 per cent with the optimization of processes through the Finacle Leasing Solution
· With the new solution, the bank has eliminated duplicate systems and unified various components, achieving a 20 per cent saving in maintenance costs
· Automation of processes like statement generation, late fee computation and reconciliation, among others, have resulted in a significant drop in human error and person dependencies
· Integration of the new leasing solution with rest of the enterprise applications has ensured consolidation and optimization of customer data into a single source. This supports faster resolution of customer requests and enables the bank to make targeted offerings, thereby improving the end customer experience significantly

Quotes:
Sanat Rao, Chief Business Officer and Global Head, Infosys Finacle:
“Simplifying the technology footprint is a critical step in renewing legacy systems and moving towards a truly digital banking experience. Following the merger, MauBank has been very progressive in its decision to consolidate and modernize its banking systems. The latest step towards a unified platform for their leasing services will ensure a sound technology foundation for the bank, enabling growth, profitability and a smarter banking experience for its customers.”

Sayyad Khodabocus, Head – IT Applications, MauBank:
“MauBank is committed to being the most progressive and preferred bank in Mauritius. Our aim of ensuring world-class banking services along with industry leading growth, is tied to consolidating our operations on best of breed banking platforms. We believe the Finacle Leasing Solution will help us scale our leasing operations and boost productivity, thus positioning the service line as a key business driver.”

Digitization and Disruptive Technologies spurring Banks to invest in New Business Models

Infosys Finacle-Efma research shows 78 percent of banks becoming more customer centric through reimagining banking practices

Infosys Finacle, part of EdgeVerve Systems, a product subsidiary of Infosys (NYSE: INFY), and Efma, a global not-for-profit organization today launched the eighth annual study of ‘Innovation in retail banking’. The research revealed that 77 percent of banks regard the threat from technology companies, start-ups, retailers and/or telecom players as high or very high. Over half now consider the threat from technology companies and start-up challenger banks as significant.

However, the research, in which 158 banks from 56 countries participated, showed that banks have largely embraced digitization and are aggressively adopting new technologies in order to innovate. The proportion of banks with an innovation strategy has increased to 74 percent in 2016, from only 37 percent in 2009. In addition, banks are now more likely to collaborate with startups in order to stay competitive, with nearly three quarters (73 percent) seeing them as the best way to leverage new technologies.

Key findings:
· The vast majority (86 percent) of banks believe that emerging competitors will have a significant impact in the payments area
· Additionally, 73 percent of banks consider working with innovative start-ups as the best approach to access disruptive technologies. Meanwhile 41 percent are collaborating with startups as suppliers, 32 percent are making direct investments into startups, and 27 percent are running accelerators and incubators
· For half of the banks surveyed, legacy technology environments are the biggest barrier to digital transformation, followed by a lack of unified vision (44 percent) and a lack of skills and expertise (38 percent)
· Three quarters (74 percent) of banks now have an innovation strategy in place and more than two-thirds (69 percent) believe they are becoming more innovative; but the proportion of banks increasing innovation investment has fallen to 78 percent from 84 percent last year
· The most disruptive new technology for banks is advanced analytics and big data, with 79 percent of banks claiming it is having a significant impact now or will have within in the next two years. This is followed by mobility and wearables (75 percent) and open APIs (69 percent)
· A fifth of banks are launching or considering launching a digital only bank as a strategy for dealing with digital transformation
· Open API Technology is seen as a major development that will have a high impact on the industry over the next two years, especially with local compliance forcing banks to open their payment systems

Quotes:
Vincent Bastid, CEO, Efma:
“This year’s global banking study shows that banks have resolutely turned to start-ups to drive their own digital transformations. However, banks are being held back by old legacy systems and are still divided on where and how much to invest. Banks should think globally and embrace new ways of doing business.”

Sanat Rao, Global Head of Infosys Finacle, EdgeVerve:
“Changing customer preferences, rapid evolution of technology and pressures from outside of the traditional banking world are accelerating a major transformation of the banking industry. The confluence of these forces is putting digitization at the center of technology renewal, enabling multi-channel touch-points for superior customer service. From the research findings and customer interactions, it will likely be the development of open API’s, AI and blockchain that shall cause the next big change in banking.”

Infosys Finacle and Huawei Partner to Create New Financial Cloud Solution

Joint offering will enable banks globally to accelerate digital transformation while keeping technology costs under control

Infosys Finacle, part of EdgeVerve Systems, a wholly owned subsidiary of Infosys (NYSE: INFY), and Huawei, a leading global ICT solutions provider, today announced the global availability of the industry leading Finacle Universal Banking Solution Suite on Huawei’s FusionCloud based cloud platform. With this joint offering, financial services clients can expect substantial reductions in infrastructure and application management costs with high resilience and enhanced customer service efficiency across channels. The highly available platform will allow customers to run Finacle suite of applications on a private cloud network, delivering considerable performance, maintenance and total cost of ownership advantages.

Highlights:
· As part of this partnership, Huawei and Finacle carried out a benchmarking activity, observed and reviewed by the global advisory firm EY. The test was simulated on a Finacle database size of almost 1 TB, with 6000+ branches, 33 million+ customers, 61 million+ accounts and 20,000+ branch users. 3,846,000 transactions were successfully processed in a total test duration of 2 hours and 33 minutes at the rate of 627.66 transactions per second in one hour of peak user load.

· The solution will provide enhanced agility and quick service rollout, by enabling elastic, on demand and secure computing resource pools, while supporting all-round management and service automation. Customers will gain a range of flexible capabilities such as product factories, extensive parameterization and reusable business rules, and Open APIs, thereby enabling greater agility

· The solution will help reduce operating expenditure by ensuring optimum infrastructure utilization. Besides, customers will enjoy superior operational excellence owing to flexible process orchestration, robotic process automation, straight through processing and industry standards driven integrations

· The solution will provide a real-time 360 degree view of customer with actionable insights from its powerful analytics capabilities, helping banks drive right-sell opportunities and create personalized services for customers. This along with a unified and frictionless omnichannel experience will markedly improve user satisfaction

· Extensive self-service capabilities will allow users to apply for computing, storage and network resources to be allocated on a per use basis. This will thereby reduce dependence on IT support and maintenance resources, and enhance end-user satisfaction

Quotes:
Qian Yuan (Diana), President – Marketing and Solution Sales Department, Huawei Enterprise Business Group:
“This new offering from Huawei and Finacle will empower financial institutions with a world class banking software, with competitive capex, reduced opex and superior flexibility in operations. With reduced total cost of ownership and increased return on investment, banks will benefit from substantial savings which can be channelled to accelerate innovation and strengthen profitability.”

Andy Dey, President – Customer and Operations, EdgeVerve:
“The increasing digitally native customer base of financial institutions is resulting in rapid increase in transactions loads, pushing the need for flexibility in designing and managing IT deployment strategies. This joint offering from Finacle and Huawei is a perfect fit, bringing to market an industry leading, digital age banking solution suite along with the security, flexibility and scalability of a private cloud.”

Infosys Finacle Named a Leader among Customer-Centric Global Banking Solutions

Infosys Finacle, part of EdgeVerve Systems, a product subsidiary of Infosys (NYSE: INFY), today announced that it has been named a leader by Forrester Research, Inc. in ‘The Forrester Wave™: Customer-Centric Global Banking Platforms, Q3 2016’ report. Finacle was recognized as a leader among nine top banking platforms, which were evaluated on a comprehensive set of 40 criteria focusing on strategy, current offering and market presence.

Assessing the market, Forrester mentions in the report that, “Many banks’ existing banking platforms still leverage overly mature — and in some cases ancient — technologies that are neither up to all of these business requirements nor provide a great basis for innovation. Thus, the vast majority of banks are already working on transforming their application landscape or planning to start doing so any time now.”

Highlights:
· Infosys Finacle received the highest score among all vendors for Current Offering
· With a score of 4.35 (out of 5), Infosys Finacle is the only vendor who scored above 4 in the category of Current Offering
· Infosys Finacle received the highest score possible on the criteria of ‘Channels and Touchpoints’, ‘Customer –focused product configurator’ and ‘Market Approach’

Quotes:
Referring to Finacle, Jost Hoppermann, VP and Principal Analyst, Forrester, says in the report, “EdgeVerve’s Infosys Finacle banking platform excels at current offering. Today, Infosys Finacle’s traditionally strong architectural focus shows key ingredients such as service-oriented architecture (SOA), components, SOAP and RESTful APIs, and API management. Infosys Finacle’s product configuration and bundling capabilities are particularly sophisticated. A reference client explained that the solution allowed his firm to significantly reduce time-to-market for new banking products. One powerful differentiator: Finacle’s preventive maintenance services, which are unique in this market today.”

Andy Dey, President – Customers & Operations, EdgeVerve
“Digitization of our world, changing customer demands, increased competition and margin pressures are driving banks to prioritize long-pending modernization decisions. With Infosys Finacle solution suite, we offer banks an opportunity to progressively modernize their legacy application environment and gain new capabilities to drive future growth. We believe, this assessment once again proves that Finacle is the stand out leader for banks looking to accelerate their digital transformation.”

About Infosys Finacle
Finacle is the industry-leading universal banking solution from EdgeVerve Systems, a wholly owned product subsidiary of Infosys. The solution helps financial institutions develop deeper connections with stakeholders, power continuous innovation, and accelerate growth in the digital world. Today, Finacle is the choice of banks across 94 countries, and serves over 848 million consumers – estimated to be nearly 16.5 percent of the world’s adult banked population.

Finacle solutions address core banking, online banking, mobile banking, CRM, payments, treasury, origination, liquidity management, Islamic banking, wealth management, and analytics needs of financial institutions worldwide. Assessment of the top 1000 banks in the world reveals that institutions powered by Finacle enjoy 50 percent higher returns on assets, 30 percent higher returns on capital, and 8.1 percent points lesser costs to income than others.

To know more, visit www.finacle.com

Finacle and Samsung SDS to Deliver ‘Frictionless’ Mobile Banking Experiences

Technology partners sign agreement to deliver enhanced payments and user experiences for mobile device users

Infosys Finacle, part of EdgeVerve Systems, a product subsidiary of Infosys (NYSE: INFY), and Samsung SDS, a global ICT service provider, today announced a global partnership that will provide end customers with a more secure, fast and convenient way to use mobile banking and payment services.

Mobility is a key innovation area for financial services, but it also plays a fundamental part in enabling and retaining end customers in today’s changing banking environment. This partnership offers financial services customers a seamless user experience and hassle-free access without lengthy authentication processes.

This will be achieved using device agnostic Samsung SDS FIDO Authentication, allowing banking and mobile payments customers to use select OEM’s (Original Equipment Manufacturers) and the hand-held device of their choice. Device-optimized authentication for mobile payments helps banking services meet the user experience expectations of younger millennial customers – an expectation of immediate, seamless app-driven services. It will also help to advance and simplify micro payments and enable financial inclusion in developing markets where mobile devices are the dominant form of internet access.

Samsung SDS FIDO is built on Fast IDentity Online (FIDO) specifications which is the de facto standard for simpler and stronger authentication by using user’s biometrics information and PKI (Public Key Infrastructure) technology to store critical user information in mobile and server respectively. Users can scan their fingerprint, use facial recognition or other biometric authenticators such as voice and iris detection to complete a payment or transaction in a secure and frictionless way. This can replace traditional authentication methods such as the entry of a user ID, password or transaction authentication number (TAN).

This partnership comes further to the recent announcement of a partnership between Infosys Finacle and Onegini towards enabling secure mobile banking through advanced biometrics and multi-factor authentication.

Quotes:
Andy Dey, President – Customer & Operations, EdgeVerve
“Customers are becoming far more accustomed to accessing and spending their money via mobile. As such, financial services providers should be empowered with mobile solutions where they never have to choose between providing a good user experience and robust security. We want to enable banking without passwords wherein people can authenticate transactions by using flexible biometric options such as facial recognition and fingerprints. Our partnership with Samsung SDS achieves exactly this kind of friction-less banking, allowing greater customer retention, engagement and loyalty.”

Ho Kim, Head – Advanced Mobile Solution Business, Samsung SDS
“In addition to our recent deployment in the financial sector including Samsung Pay, we are pleased to partner with EdgeVerve to provide our FIDO solution to global banking customers. User authentication and mobile security is gaining more significance in this era of digital banking and Samsung SDS’ standard based biometrics solution ensures simpler and secure user authentication to bring enhanced user experience to our customers. Samsung SDS will continue its innovation to bring Samsung’s technology into the future digital banking.”