Finacle to forego license fee in CBS deal

Finacle will be paid implementation and annual maintenance charges for the CBS deal

 

Finacle, the banking solution business division of Infosys Technologies, may forego its lucrative license fee in a new core banking solution (CBS) deal it is looking to win from The Standard Bank of South Africa .

 

The Standard Bank of South Africa , having assets in excess of $160 billion, has put forward a proposal to Finacle asking them to implement its CBS in three countries, where the bank has its operations but without the payment of the licence fee, according to person familiar with the situation.

 

However, Finacle will be paid the implementation and annual maintenance charges for its CBS. The value of the proposed deal could not ascertained. Industry watchers say that such an agreement, if implemented, deviates from the normal practice of bidding for such deal while adding that Finacle could be probably looking at garnering a larger pie of business from The Standard Bank of South Africa going forward.

 

Source: The Economic Times