Infosys Finacle reduces bank transaction costs by 35 percent, says survey

Banks using the multichannel functionality of Finacle core banking solution have reduced average transaction costs across channels by over 35 percent, said an Infosys survey.

Infosys Finacle helped to reduce the effort to roll out innovative products and services by an average of 37 percent and create new revenue streams for banks.

Also read: Mauritius Post upgrades core banking solution to Infosys Finacle 10

The latest Infosys Finacle Business Value Articulation survey analyzed responses of 52 banks, which evaluated Finacle’s impact on six business areas such as growth, operational efficiency, architecture simplicity, agility, compliance, and customer relationship management.

Infosys finacle

Also read: Bank One of Mauritius implements Infosys Finacle Treasury solution

The survey noted that banks running on Finacle have realized an average 11.5 percent return on investment and average increase in return on assets of over 25 percent.

Dennis C Bancod, senior EVP & Head – IT Shared Services & Operating Groups, RCBC, Philippines, said: “With Finacle, we are able to bring products to market three times faster and provide a wider set of integrated products and services for our customers. It has also been instrumental in helping us achieve a 400 percent increase in the average numbers of new customers each month. Turnaround time for operational reporting has been cut in half, while relationship manager’s sales effectiveness has improved by 40 percent.”

The survey said banks witnessed an average 11 percent increase in revenue earned from higher fees post implementation of Finacle and an average increase in profit on capital by 19 percent.

Finacle’s architecture has resulted in an average improvement of over 40 percent in time taken to execute customer transactions.

Aruna Rao, executive vice president & group chief technology officer, Kotak Mahindra Group, said: “Our experience with the Finacle core banking solution has seen increase in new sales, cross sales, and fee income since its adoption. Internal analysis indicates a 44 percent increase in the number of accounts added in the quarter succeeding Finacle implementation, compared to the quarter preceding it. Our customers have also provided positive feedback, specifically in terms of processing time at branches and their experience on the internet banking solution.”

Banks using Finacle have also seen an average increase in assets of over 30 percent in the review period compared to the previous year.

More than 90 percent of the banks surveyed acknowledged Finacle’s role in improving management of customer expectations. Banks deploying Finacle enjoyed an average reduction of 19 percent in customer complaints.

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