[sbinews] Indian banks seen 10 years ahead of Europe,post-CBS (Business Standard)

  • From: rspai@xxxxxxxx
  • To: sbinews@xxxxxxxxxxxxx
  • Date: Wed, 19 Nov 2003 21:45:37 +0500

Indian banks seen 10 years ahead of Europe, post-CBS 
(Business Standard)
Our Banking Bureau in Mumbai 
Published : November 19, 2003 

Banks in India will leapfrog ahead of their counterparts in Europe by around 10 
years once the implementation of the core banking solutions (CBS) drive is 

Also, India and Africa have become key markets in the world for the 
implementation of CBS. 

“The amount of activity in India is startling and that too in a market which is 
depressed. In the last 18-24 months around 22 banks in India have gone in for 
CBS. The markets in the UK and western Europe are not investing. India is seen 
as balking the trend,” says Martin Whybrow, director and chief editor, Internal 
Banking Systems (IBS) Publishing. 

IBS Publishing is a London-based publication and is dedicated to the wholesale, 
retail and private back office systems market sector. 

A host of banks, especially public sector banks, are in the process of 
implementing CBS in the country. The banks which are in this process include 
State Bank of India (SBI), Punjab National Bank, Union Bank of India, Syndicate 

“Banks in India will leapfrog ahead in technology. They will be able to provide 
better customer service, lower their cost base etc. Compared this with banks in 
Europe which still have legacy systems. It will take 10-15 years for banks in 
Europe to come up with similar systems,” he added. 

Though there is a major demand for CBS in the country, foreign suppliers have 
not been able to get a toehold in the market. 

Of the more than 22 banks which have gone in for CBS, only two have chosen 
overseas suppliers — SBI has gone in for FNS from Australia, while ING Vysya 
has roped in the US-based Sanchez. 

“The Indian market is difficult for non-Indian suppliers. Domestic companies 
have a strangle hold on the markets and it is very difficult to compete on 
price, support functions etc. Also Indian banks have bigger volumes and the 
system needs to be scaleable to handle volumes,” says Whybrow. 

However, the implementation of CBS is taking a lot of time in the country. 
There has also been a problem of telecom infrastructure which has now improved 
leading to faster implementation in the recent projects. 

Also, as most of the banks are either implementing Flexcube or Finacle, there 
is not much competitive differences in the information technology structure. 

“All the banks are ending up with the same systems. There is a sort of catch-up 
which is happening among different banks,” adds Whybrow. 

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