Infosys has been positioned as a Leader in Gartner’s just released ‘International Retail Core Banking Report 2013’ for the seventh time in a row for its Finacle core banking solution. Temenos has also attained the same honour, alongside other usual suspects such as TCS, Polaris and other big core banking vendors.
The need to accommodate 'surround systems' such as mobility, analytics and fraud/AML capabilities alongside payments and account-based transaction processing is a continuing theme in the core banking marketplace. Innovation is also often being left to smaller players, sometimes backed by venture capital (VC) money, while the bigger vendors wait to buy them up when and if they attain enough customers. This consolidation trend will no doubt be exascerbated by the reduction in the number of banks post-crash and the increasing trend towards shared services, which places an additional connectivity requirement upon platforms.
The Infosys Finacle core banking solution was recognised from among 20 other global vendors, such as FIS, Fiserv and so on, who were all evaluated on two key parameters: ability to execute and completeness of vision, with the vendor far along the leaders ‘Magic Quadrant’ rating. The continuing bank desire for agility and flexibility is also evident with chief information officers (CIOs) wanting a service orientated architecture (SOA) that is capable of quickly accommodating new launch products and new demands. The ability of core banking systems to fit into these wishes is, of course, a continuing tension in the industry with legacy concerns often an issue.
According to the Gartner consultancy report, “vendors in the Leaders Quadrant tend to possess high-order market understanding - they make it their business to monitor market trends, funnelling progressive innovation into their product road maps. About half of this group either possess software development quality certifications (such as CMMI) or are pursuing them. With few exceptions, the Leaders are progressively ‘thinking small’ or targeting component-based architecture as a gateway to providing increased accessibility to the granular functionality that banks need to drive the basis for differentiation.”
As Don Free, vice president of Gartner Inc, explains the purpose of the Magic Quadrant is to assist chief information officers (CIOs) by focusing on what matters most – namely, the relevance of vendor and product attributes to the alignment of critical business strategies and technology trends. “Gartner evaluates the competitive landscape of core banking vendors … and uncovers the leading strategies of these vendors and products, revealing their underlying product and service capabilities,” he said.
Haragopal M, global head of the Finacle core banking suite at Infosys is naturally delighted with his firm's listing, adding that the vendor, “is playing a crucial role in enabling our client banks to achieve their vision of scale, and help them introduce new products and services, while simultaneously delivering a quality banking experience to customers.”
David Arnott, CEO of Temenos, is equally pleased, commenting that: “To be positioned within the leaders’ quadrant for the fifth consecutive year is testament to our long-term vision and commitment in delivering innovation and customer success."
By Neil Ainger