MUMBAI: Tata Consultancy Services (TCS) is working with Israel’s finance ministry to build platforms that will make technology affordable for small banks in the country, a top company executive told ET.
With the Indian IT industry undergoing a transformation, TCS has invested in developing platforms in the banking, insurance, capital markets and retail segments. “In India, we created a core banking platform and have taken it to other markets. Having developed the first one, the Ministry of Finance wanted us to set up a complete banking service bureau in Israel,” said N Ganapathy Subramaniam, Chief Operating Officer at TCS.
Bank Yahav, its customer, went live in 2017 with TCS’ BaNCS Universal Banking platform, following which the software company established an IT infrastructure and banking application landscape to the match the standards of the bank and regulators in Israel. “The Ministry wanted to move beyond the big three or four big banks. They want new banks to come up at affordable technology; they can quickly adopt technology that straightaway goes to an open banking concept,” said Subramaniam.
A small number of large banks and financial institutions dominate the entire financial and credit sector in Israel, despite efforts by the regulator to break the monopoly and widen the market. An open banking system will use open APIs that enable third party developers to build applications and services around the financial institution. “Banking platforms are significant for TCS. Platforms are the way to go. It gives faster go-to market for IT firms. It can be used by clients with minimum customisation,” said Urmil Shah, a research analyst with brokerage IDBI Capital.
TCS says its bet on platforms is yielding returns.
Source: Economic Times