Looks like major IT companies from India like TCS, Infosys and Cognizant are all set to enter into the domain of blockchain, the technology behind Bitcoin as they have boosted investment in this Fintech over the months. They are looking at ways to build applications around it to provide the latest financial technology that can open new avenues.
Nonetheless, exploring the potential of blockchain technology is just one of the moves the Infosys banking unit is making. This is not to say the company is in love with the Fintech but wants to improve the shrinking profits. It started the first step in 2012 when it established Finacle that was estimated to be worth $314 million USD.
Blockchain, an electronic system which is currently being used by crypto currencies, including Bitcoin and Ripple, and helps in authenticating transactions, is emerging as a technology that can be used in a lot of things. Recently, Honduras announced that it was going to use blockchain technology to keep land records.
Thus, it looks like blockchain technology is touching new popularity every passing day. In fact, the move by the information technology (IT) companies comes at a time when banks and other financial firms as well as the customers are looking at the use of disruptive technology to cut settlement times and bring down costs tied to international payments.
It has come to notice that Infosys CEO Vishal Sikka’s former colleague at SAP and the current head of Infosys’s core banking product Finacle, Michael Reh, had hired executives to look at this new technology. Finacle has been in the midst of change and reform since appointing a new CEO, Vishal Sikka, in late 2014.
The company hiring from Fintech Background to Work on the Mission
Moreover, as exploring new technologies, and business strategies, is the way ahead for the IT company that is almost in saturation mode, this was on the expected line. The company has been acquiring a range of new talented employees for the purpose; for instance, it hired people from rival banking software firms, with offices in Silicon Valley.
Thus, the people who have worked in the companies handling Systems, Applications & Products (SAP) Labs and Sopra Banking Software, Finacle aims to achieve the target. According to an executive familiar with the situation he does not think the company is being structurally reworked. However, it is a leading product recognized globally that need re-engineering.
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