Finacle users see average transaction cost cut by 35%: Survey

Survey conducted across 52 banks by independent agency

Banks using Infosys' core banking solution Finacle, have reduced their average transaction cost by over 35%, the Bangalore-based information technology (IT) services major today said.

According to the 'Business Value Articulation' survey conducted by an independent research agency Feedback Business Consulting, Infosys, Finacle also helped banks to reduce efforts in rolling out innovative products and services by average 37%.

Finacle also helped banks in creating new revenue streams, the survey said.

The survey was conducted across 52 banks and evaluated Finacle's performance on six business areas-growth, operational efficiency, architecture simplicity, agility, compliance, and customer relationship management.

"More than 90% of the banks surveyed acknowledged Finacle's role in improving management of customer expectations. Banks deploying Finacle enjoyed an average reduction of 19% in customer complaints," it said.

The survey added that banks running on Finacle have realised an average 11.5% return on investment and average increase in return on assets of over 25%. Additionally, it said, banks witnessed an average 11% increase in revenue earned from higher fees post implementation of Finacle and an average increase in profit on capital by 19%.

Infosys' flagship product also led to an average improvement of over 40% in time taken to execute customer transactions, the survey showed.

"It is heartening to see our clients realise and articulate the significant business benefits delivered by Finacle," said Haragopal M, senior vice president and global head - Finacle. "The fact that this benefit was seen by our key customers across critical business metrics of cost to income ratio, customer acquisition growth rates, cross-sell success ratios, and returns on deployed assets, is extremely important to us."

Finacle, which clocks revenue of about $300 million annually, was developed in 1999 and is Infosys' most successful product till date. It has seen a compounded annual growth rate of around 20% over the past five years. The product commands around 60-65% of the core banking product space in India.

Infosys had last year released a new version of the product, Finacle 11 E (Enterprise). The new version was aimed at making inroads into tier I banks in the global markets.