3i Info plans to launch finance solutions

The global information technology company 3i Infotech plans to roll out solutions in key finance areas such as wealth management, trade finance and mutual funds.

"Technology and functionalities are the key growth drivers. Banking in India is at a juncture where the entire set of operations could be managed via core banking alone," said Debneel Mukherjee, president, 3i Infotech.

Mukherjee added that the domestic banks were looking at positioning themselves in niche export markets where they see presence of a unique selling proposition and process maturity.

With more and more banks rolling out wealth management services for the new-generation rich classes, bankers feel that it gives rise to a need for a comprehensive web-enabled platform that ensures speedy disbursals and collection practices.

The total wealth of the Indian market is estimated at around $560 billion, out of that onshore is $260 billion and offshore $300 billion.

Coming to the mutual fund industry, as on November 30, 2005, the total assets under management stood at Rs 2,04,519 crore. There are around 24 asset management companies at present with operations based in India. Of these, there are ten asset management companies sponsored by banks.

The third area, trade finance, has also become a potential business focus for most players in the banking sector. Public sector banks offer pre-shipment and post-shipment finance to domestic exporters.

These banks also cater to financial requirements of exporters in case of project and service exports, joint ventures or setting up of wholly-owned subsidiaries in foreign countries, for the purpose of export promotion.

ICICI Bank offers customers the facility of online processing of applications for issuance of letters of credit and bank guarantees processed online.

3i Infotech provides technology solutions across verticals such as banking, insurance, manufacturing, contracting, retail and distribution.

Mukherjee pointed out that with Indian banks getting increasingly tech-savvy, they will need to shell out larger amounts of investments to spruce up productivity and networks.

A senior banker in this context said that to overcome connectivity bottlenecks, outsourcing serves to be an ideal solution.