Finacle on IBM Cloud Modernizes Banking Core Systems, Delivering 33% Higher Returns on Assets
Financial institutions implementing Finacle on IBM Cloud modernized their core banking systems and achieved significant operational efficiency and financial returns.
Value Results Summary
Banks worldwide face mounting pressure to modernize aging core banking systems that struggle to keep pace with digital transformation demands. Traditional infrastructure cannot handle the massive transaction volumes required by digital banking, manage complex regulatory compliance across multiple jurisdictions, or support the personalized customer experiences that modern fintech competitors deliver. Infosys' Finacle, a digital core banking platform trusted by banks across 100+ countries serving over 1.7 billion people, addresses this challenge by enabling banks to migrate to cloud-native architecture. By deploying Finacle on IBM Cloud®, banks unlock the scalability, flexibility, and security required for next-generation banking operations.
The Finacle on IBM Cloud solution leverages a comprehensive technology stack including IBM Cloud Kubernetes Service, Red Hat OpenShift®, IBM Power Virtual Server, and IBM Cloud Databases, enabling seamless integration, optimized performance, and enhanced security. For banks operating on-premises Power Systems, IBM Power Virtual Server provides a "lift and shift" migration path that eliminates costly replatforming while delivering cloud advantages. The hybrid cloud model allows banks to maintain on-premises data centers while running disaster recovery on IBM Power Virtual Servers, significantly reducing total cost of ownership (TCO). With pay-as-you-go pricing and straightforward integration across IBM Cloud services, financial institutions can scale operations efficiently while maintaining compliance with stringent regulatory requirements through IBM Cloud for Financial Services®.
Client banks deploying Finacle on IBM Cloud achieved measurable financial improvements across key performance indicators. Banks experienced 33% higher returns on assets compared to industry peers, with top performers reaching 4.7% versus the 1.2% industry average. Clients also realized 19% higher returns on capital, with leading implementations achieving 33% compared to the 15.6% industry average. Additionally, financial institutions improved their cost-to-income ratio by 3.9 percentage points, with best-in-class deployments reaching 16% against the 47.2% industry average. These results demonstrate that cloud-native core banking systems directly drive operational excellence, competitive advantage, and sustainable profitability across the banking sector.
