Finacle on IBM Cloud delivers agility, scalability and security-rich innovation, empowering banks to modernize core systems and drive growth.
For decades, core banking systems have been the foundation of the financial industry’s infrastructure. Though they operate behind the scenes compared to more visible fintech solutions, these systems are crucial to the functioning of banking services. As the banking sector starts its digital transformation journey, core systems are becoming increasingly outdated.
The rise of digital transactions means banks must handle a massive volume of transactions per second, particularly during periods of high demand. Banks also deal with an extensive amount of sensitive financial data and are subject to a labyrinth of regulations that vary by country and region—many of which were established long before cloud computing became mainstream. Moreover, the growing presence of non-traditional competitors is reshaping customer expectations.
To meet these new challenges, banks are increasingly adopting cloud technologies. These solutions offer the ability to scale personalized services and accelerate the development and deployment of innovative customer experiences. To fully unlock the potential of cloud computing, banks need a modernized, digital core system specifically built for cloud environments.
Finacle is a leading digital core banking solution from EdgeVerve Systems, a wholly-owned product subsidiary of Infosys. The solution is trusted by banks in over 100 countries and serves more than 1.7 billion people. As an IBM Platinum Partner, Infosys brings Finacle to the IBM Cloud® platform.
This partnership helps banks accomplish digital transformations by modernizing their traditional core systems for the cloud. With Finacle on IBM Cloud, banks can leverage the full benefits of public cloud for their core banking applications. The solution allows banks to unlock ecosystem innovation, improve business agility, automate intelligent operations, and ensure best-in-class security and compliance. Thereby, the total cost of ownership (TCO) is reduced, and flexibility and scalability are enhanced.
For clients seeking to refactor or replatform, IBM Cloud offers a suite of advanced services and solutions, such as Red Hat® OpenShift®, IBM Cloud Kubernetes Service, IBM Cloud Databases and various storage and networking options (block, file, object storage, VPN, gateways, load balancers). These cloud native services are complemented by IBM® Power® Virtual Server and key encryption and lifecycle management services. Each service helps ensure that banks can securely operate and scale their core banking systems on the cloud.
Some of the key differentiators of Finacle on IBM Cloud are seamless integration, flexibility, optimized performance, and enhanced security. These capabilities allow banks to scale operations efficiently while managing costs and maintaining robust security and compliance frameworks.
For banks already running on-premises Power Systems with Finacle, IBM Power Virtual Server provides an ideal “lift and shift” solution, enabling seamless migration of mission-critical workloads to the cloud without the need for replatforming. IBM Power Virtual Server preserves application integrity while introducing cloud advantages and delivering the same enterprise-grade performance and reliability as on-premises systems.
With pay-as-you-go pricing and straightforward integration with other IBM Cloud services, IBM Power Virtual Server accelerates cloud migration, making it cost-effective and well-suited for hybrid cloud strategies. This enhanced migration approach ensures seamless continuity for high-performance workloads. Banks can choose to run their data center environment on-premises and disaster recovery (DR) on IBM Power Virtual Servers to achieve TCO benefits. With this hybrid model of Finacle deployment, customers can achieve significant reduction in overall TCO as they can go with lower capacity of DR which can be increased to 100 percent capacity when the actual need for DR arises.
Through the combined strengths of IBM Cloud for Financial Services® and IBM Power Virtual Server, Finacle aims to deliver heightened customer engagements, operational excellence, and more secure, resilient cloud infrastructure—all while driving innovation and growth in the banking sector.
With Finacle’s core banking suite deployed on IBM Cloud, clients achieved significant financial improvements.
The companies saw a 33% higher return on assets compared to peers, with average returns at 1.2% and top-performing clients reaching 4.7%. Additionally, clients experienced a 19% higher return on capital, with the average at 15.6% and top performers at 33%. The cost-to-income ratio also improved by 3.9 percentage points, with the average ratio at 47.2% and the best-performing clients achieving an impressive 16%.
Infosys, founded in 1981 and headquartered in Bangalore, is a global leader in consulting and IT services. The company serves clients across a wide range of industries, including finance, manufacturing and technology. With a strong presence in over 50 countries, Infosys is renowned for their innovative solutions and digital transformation capabilities. As of the latest reports, Infosys has over 300,000 employees and generates substantial annual revenue, positioning them as a major player in the global IT services market.
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