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India-based public bank, Corporation Bank, is progressing with its implementation of a new core banking system, Finacle from Infosys.

The bank has signed for the 10.2.x version of Finacle. On the way out is the legacy LaserPanacea core system, supplied by another India-based software vendor, Intellect Design Arena.

 

Mangalore, home of Corporation Bank HQ ©Byawarsi, Wikimedia Commons

Mangalore, home of Corporation Bank HQ ©Byawarsi, Wikimedia Commons

According to SR Bansal, chairman and managing director of Corporation Bank, by the end of the current fiscal year all branches will be connected to the system. The bank has a vast network of 3200 branches, plus another 4000 of so-called ‘branchless banking’ outlets.

The core banking software renovation comes at a cost of INR 3.6 billion ($54.2 million).

The project started earlier this year, with Wipro as the system integrator. Wipro beat rival HP to the deal.

Incidentally, HP and Wipro were also the finalists for the previous selection at Corporation Bank, which took place in 2013. HP with Infosys was understood to have been the selected partnership for the INR4 billion ($64 million) contract, but the selection was scrapped and restarted in 2014.

No official confirmation from the bank has been forthcoming as to why the first selection was shelved, but the bank’s chairman and managing director resigned shortly after the initial awarding of the contract.

As for the incumbent provider, Intellect Design Arena, it was keen to keep the relationship going, but Corporation Bank had other ideas. When the bank went to market in search of a new core system, the vendor did not meet the criteria set out in the bank’s RFP.

Intellect Design Arena (known as Polaris at the time) felt the terms of the RFP were weighted so that to exclude it from participation and took the bank to court (see the court document here).

In response, the bank made some less than complimentary remarks about Polaris, including; ‘the respondent encountered various problems like file corruptions and system slowness in the existing core banking solution which put the bank in avoidable embarrassment’ and ‘the petitioner has failed miserably in addressing the bank’s requirements’.

The judge subsequently ruled that there was no case to answer for, saying that the claim was ‘devoid of merits’.

By Tanya Andreasyan

More news from India:

DBS to soft launch mobile banking platform in India

FIS opens innovation lab in India to boost banking access

Paytm plays ‘payment bank’ as India boosts digital banking growth

Visa launches new India development centre and mobile payments service

Core system selection concludes at Indian Overseas Bank

 

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by Darshana Adanwale
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