The double digital growth in constant currency was possible due to traction for its product platform Finacle and its acquisition of Stater.
Infosys registered a strong double digital growth in its banking, financial services and insurance (BFSI) sector for the quarter ended June 30, 2019, despite softness in the sector.
According to the management, it was possible due to traction for its product platform Finacle, and its acquisition of Stater.
BFSI grew 9.5 percent year-on-year to Rs 6,856 crore in the first quarter of FY20 compared to Rs 6,075 crore in the comparable quarter last year. In constant currency basis, the sector grew 11.5 percent.
Infosys in May 2019 completed its acquisition of 75 percent stake in ABN AMRO Bank's subsidiary Stater, one of the largest mortgage service provider, for close to Rs 1,000 crore.
This complemented the company’s portfolio as it is building its sub-sectoral capabilities specifically for the mortgages space. “Mortgages are the largest revenue line for the banking clients. This is another example of our differentiation,” he added.
During the earnings call, the senior management said that the company's banking platform Finacle has seen significant traction. "We had a great quarter in terms of TCV bookings, expansion in North America and European markets. That is one unique differentiation for us given the strength of the product,” he added.
Apart from these, the company is also seeing traction in the digital space as banks continue to invest in the digital transformation journey.
“We have seen significant traction in the cloud space and entire digital transformation journey. Digital studios, like the one we have been building in Shoreditch, London, are helping us engage with banks for branch transformation perspective and user experience,” the senior official added.But yes, there is weaknesses in the capital market space and some challenges in the European market. However, consumer banking space, commercial banking, corporate and mortgages have seen good traction, the official added.The Great Diwali Discount!
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