Finacle develops software for rural banking ops

After consolidating its position in the traditional banking segment, the banking product division of Infosys Technologies, Finacle, is now diversifying itself to develop a software product suite for the rural operations of the financial sector.

"In today's financial environment accessing the bottom of the pyramid has become a key business as well as social imperative for banks. With increased reach, Regional Rural Banks (RRB) can become principal vehicles for financial inclusion in the country," Infosys Technologies (Finacle) Head Haragopal M told PTI.

There is a great opportunity in the segment, which has started picking up in the domestic market, he said, adding, the company has already bagged a beta client.

Besides adding to the bottomline, the product suite would help banks enable financial inclusion in a cost-effective manner, he said.

Last month, Punjab National Bank awarded a contract to Infosys to power its core-banking initiative for the rural market.

Under the agreement, Finacle will be implemented across the bank's six RRBs covering 1,300 branches.

Speaking about the December quarter performance of Finacle, Haragopal said the revenues of the company witnessed a growth of 25.8 per cent to $50 million against the same quarter last year. However, on sequential basis, the topline grew by 17 per cent.

During the quarter, Finacle added six new customers and completed the implementation of seven projects.

In the nine months of this fiscal, the total revenue has gone up by 28 per cent to $138 million, he said.

Finacle, with a footprint across 61 countries, had clocked a turnover of $150.8 million during 2007-08.