India-based Infosys is considering the use of blockchain technology to enhance its widely used Finacle banking software.
The multinational company conducts business consulting, technology, engineering and outsourcing services. Its Finacle product is used by numerous banks globally. Senior management has reportedly been leaning towards greater focus on its mobile banking offerings, but Michael Reh, who has been tasked with revamping the software, is evaluating the usefulness of the blockchain.
One executive said that he didn’t see this as a large-scale re-working of Finacle, but he acknowledged that there were areas that could be re-engineered. A second executive commented:
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“The thing with this (Blockchain) is that we still do not know the full technology impact it can have. More than just knowing the payments, we can get insights in legal documents, or use for even credit-worthiness of parties. All this obviously makes your (core banking) product stand out.”
Recently, major banks UBS and Bank of NY Mellon both announced initiatives to look into how blockchain technology can make transfers faster and more cost effective. They are two of possibly numerous other institutions that are reportedly doing the same but have yet to publicize their plans.
Ripple’s technology for currency transfers has already been implemented by Fidor Bank and two smaller banks in the US.
The addition of such technology by a software provider may add the effect of killing several birds with one stone, and in theory, can contribute to a domino effect whereby more banks growing interested in this area reveal their existing plans.