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Infosys Finacle & Huawei Launch Financial Cloud Solution

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Infosys Limited (INFY - Free Report) subsidiary EdgeVerve Systems’ star banking platform Infosys Finacle and premium information and communications technology provider Huawei recently introduced a novel financial cloud solution that will improve performance & maintenance and slash costs for clients. However, this development failed to cheer investors as the share price of Infosys was up a meager 1.2% at the close of regular trading on Sep 2.

For the latest offering, the Finacle Universal Banking Solution Suite has been integrated into Huawei’s FusionCloud based cloud platform. This will help clients operate Finacle applications on a private cloud network, which will bring down infrastructure and application management costs.

Also, the solution promises improved agility for customers as it offers product factories, parameterization and open APIs. Furthermore, consumers can enjoy better self-service capabilities and reduced dependence on IT support and maintenance.

Leveraging on the powerful analytics of this new platform, banks can pursue lucrative “right-sell opportunities” and develop customized services for clients. This solution will also help financial institutions cut down on capital and operational expenditure, increase return on investments and rake in impressive savings that can be reinvested in profitable ventures. 

Meanwhile, Infosys has noticed a pressing need for smart banking solutions that can support the escalating load. This is expected to drive adoption of the new service as it offers a comprehensive, secure, flexible and scalable application, which is precisely the need of the hour.

In fact, Finacle has clients from across 94 countries and serves 16.5% of the banking customers worldwide. Thus, Finacle has proved to be one of the strongest growth drivers for Infosys, fetching new customers every quarter. For the first quarter of 2016, the EdgeVerve unit recorded 16 wins and 21 “go-lives” for both Finacle and Edge. We believe strategic collaborations and impressive customer wins at Finacle will continue to drive growth for Infosys.

Despite Finacle’s bountiful opportunities, the changing pattern of technology use along with rapid proliferation of customizable Internet-based software is hurting Infosys’ traditional outsourcing business. Also, macroeconomic concerns like slowdown in China and economic uncertainty post Brexit might compel business houses to delay discretionary spending. This might pose as a challenge to this Zacks Rank #4 (Sell) company.

Better-ranked stocks in the industry include Barracuda Networks, Inc. , sporting a Zacks Rank #1 (Strong Buy), and Unisys Corporation (UIS - Free Report) and Acxiom Corporation , both carrying a Zacks Rank #2 (Buy).

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