nam pleased to address my first communication to you as the Chairman ofNucleus Software Exports Limited. Leading such a dynamic organization is a mission that Ihold with utmost respect and commitment.
I am enormously proud to see that many leading banks and financialinstitutions in the world are using our advanced technologies to transform their businessand deliver outstanding experiences for their customers.
Every day in 50 countries around the world more than 300000 userslog into our systems that provide products and services to a large number of customers.
According to Deloitte 2018 could be an important year for banksglobally in accelerating the transformation into more strategically focusedtechnologically modern and operationally agile institutions so that they may remaindominant in a rapidly evolving ecosystem.
Diverse technologies such as artificial intelligence blockchaincloud cyber security and mobility are both promising and intimidating at the same time.They offer opportunities to reach new customers in new ways with new services but theyalso provide the opportunities to non-traditional competitors such as Fintechs. To makematters more complicated a few regulations such as Open Banking PSD2 and General DataProtection Regulations (GDPR) are expected to have a profound effect while presentingconsiderable challenges to financial institutions.
Despite the fact that several technology elements are interacting todrive digital transformation industry wide customers remain at the core of it. Today'scustomers not only expect to be served at a time and a place of their choosing they alsorequire banks to intimately understand their needs and deliver a personalized experiencewithout being overly intrusive. To be their customer's bank-of-choice institutions needto transform their services. They need to understand their customers better andanticipate and offer what they want before they know they need it. But they need to dothis carefully as the line between helpful' and intrusive' is very fine. Banksneed to carefully choose the right technology partners who can offer the new capabilitiesto help them attain their targeted ends. As a pioneer in providing solutions to thebanking and financial industry we are committed to helping our banking customerstransform their businesses in this ever changing world of technology.
Without a doubt 2017 has been a rocky year for financial services;with political disturbances economic uncertainty and planning for numerous regulatorychanges coming into effect in 2018. In 2017 Brexit was a major factor in many parts ofthe world with "uncertainty" spectre looming around the financial sector. As
such the key focus was on the financial services industry craftingtheir post-Brexit strategies particularly on how to continue having access to both EU andUK markets and in turn catering to their customers' demands. According to Gartner by 2019Start-ups will go beyond Amazon Google IBM and Microsoft in driving the artificialintelligence economy with disruptive business solutions. AI services will eat into 30% ofthe revenues of market leading companies by 2019. AI and machine learning will enhanceanalytics and the actions and interfaces of technology-enabled systems. New digitalbusiness models are emerging and new ecosystems are forming to realign business andcustomer relationships and expectations. This will create an intelligent digitalexperience. Big shifts will be needed in the enabling technologies and IT to support thisexperience and digital business ecosystems. Nucleus Software is well prepared to deal withthese changes and is well positioned for meeting these challenges. We are committed tohelping our customers make the right choices take bold technology decisions and stayahead of their competitors.
A strong corporate culture is a must for doing good business besidesdriving growth innovation and upholding ethics. Culture is at the substratum of anorganization's performance and influences the performance by elements such as valuesmission communication and general atmosphere. The Nucleus Board takes cognizance of thisfact and provides the organizational culture the importance and attention it deserves atthe highest level. The Board has established a practice of discussing and reviewing theareas associated with the culture as an inherent part of its governance process. Werecognize that setting the right tone from the top is essential for the Board influencingthe culture and also to ensure that the leadership team is supportive of the desiredculture which is almost always inherent at the top. We are committed to continue buildinga lasting organization that
delivers long-term sustainable performance and nurtures good humanbeings. This essentially links to organization values and culture. Values are the bedrockthat makes the foundation of our organization culture. The elements in our five-facetedvalue-sphere have the right magnitude and direction. We want to ensure that these valuesmanifest in the behaviour of each and every Nucleite thus ensuring that our espousedvalues are clearly visible in our day-to-day behaviors and there is a strong consonancebetween these and the in-practice values. We are an organization with a strong belief inlearning. We learn from institutions who have built and sustained a strong value culturewhile keeping our eyes and ears open to those who have suffered due to cultural mishaps.
To quote from the Rig Veda:
Let noble thoughts come to us from all directions (Rig Veda 1.89.1)
We continue our learnings from all good thoughts. We continue toassimilate and nurture these thoughts to evolve and strengthen a flourishing culture builtover our sound values.
I am confident about where we are placed in the midst of thistransformational environment. Our expertise in building next-generation technology ourpartnerships with the world's technology leaders and the changes that we have made asa company to align ourselves to the changing market conditions have set us up very wellfor the future.
As we continue to add new talent we have a growing team of millennialswho have always lived in a connected world. Next-generation technology and our diversifiedwork force has helped us transform the way we work and respond to the needs of ourcustomers employees and stakeholders. Boundaries dividing work and the rest of our livesare blurring and we at Nucleus Software are sensitive to this change.
We will continue to be guided by the values for which we have alwaysstood by - Collaboration Result Orientation Innovation Integrity and Respect. Thesevalues have made us strong for the last three decades and our adherence to them will helpus endure beyond the present and into the future.
¦ Working together as a team we will continue our relentlessfocus on our customers - helping them achieve their goals through the use of innovativetechnology solutions. We look forward to many years of growth and success.
Date: May 3 2018