Technology companies offering niche services to banks face a challenge as public sector lenders consolidate, with issues around shrinking revenue, reduced clients and heightened competition, industry experts have said.
Banks may consider changing their technology infrastructure, analysts said. This means, these lenders will look at centralisation of the technology infrastructure, a service largely provided by companies such as NTT Data, IBM and DXC Technology, said Sanchit Vir Gogia, CEO of Greyhound Research.
Beyond infrastructure, integration of platforms such as Infosys’ Finacle may also take more than two years even if two or more amalgamating banks are using the same solution, according to industry observers. “You will see rationalisation of services only after the banks complete merger of existing systems. For now, infrastructure consumption will go up significantly and the banks will look to centralise the technology infrastructure,” Gogia said. “Ancillary services such as payroll will also be impacted eventually,” he added.
Analyst:
Sanchit Vir Gogia: Sanchit is the Chief Analyst, Founder & CEO of Greyhound Research, a Global, Award-Winning, Technology & Innovation Research & Advisory firm. To read more about him, click here.
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