DPRO-110268 Product Report

Ellen Walsh 26 September 2002

Infosys Finacle eChannels

Summary

Finacle echannels provides a consumer e-banking solution to the bank’s retail customers through the
Internet and Mobile channels. It enables banks to offer single point of access to multiple products.

Table of Contents
Overview
Analysis
Pricing
Competitors
Strengths
Limitations
Insight

List Of Tables
Table 1: Infosys Finacle echannels: Features and Functions

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Infosys Finacle eChannels

Corporate Headquarters

Infosys Technologies Ltd.

Plot No. 44 & 97A, Electronics City
Hosur Road

Bangalore, India 561229

Tel: +91-80-852-0261
Fax: +91-80-852-2390

Internet: www.infosys.com
Infosys Technologies Ltd.
#27, Infosys Towers, Bannerghatta Road
Bangalore, India 560076
Tel: +91-80-6588668
Fax: +91-80-6588676
Internet: www.infosysinbanking.com
Overview
The Business Banking Unit of Infosys offers enterprise-banking solutions to banks across the world. The
Business Banking Unit employs approximately 500 people. Under a common Finacle brand, Infosys has
multiple products addressing core banking, consumer e-banking, corporate e-banking, Customer
Relationship Management (CRM) and Treasury. Infosys has a very large services arm, which works
closely with the Banking Business Unit on an as needed basis.
• Finacle echannels is a component based, consumer e-banking solution addressing retail banking
functionality and electronic bill presentment and payment (EBPP). This solution enables banks to
offer a consistent experience to their retail customers through the Internet and Mobile channels. Built
on open industry standard platforms, Java 2 Platform, Enterprise Edition (J2EE) and .NET, it is
divided into three layers — Channel access layer, Application layer and Enterprise Application
Integration (EAI) layer:
• The Channel Access Layer offers gateways to Secure Hypertex Transport Protocol (HTTPS),
Wireless Application Protocol/ Shared Messaging System (WAP/SMS), Extensible Markup Language
(XML) and customized gateways for teller, emerging channels and third-party applications.

• The Application Layer: Comprises several functional modules:

• Retail Banking: This module supports cross channel retail banking services including account
management, fund transfers and request management.
• Customer Management: This module is the repository for the business rules that govern client
interactions through various channels and handles cross channel password maintenance and
setting of channel specific transaction limits.

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• EBPP: Finacle echannels enables the bank to act as a consolidator by allowing bill presentment
and bill payment. The module supports multiple customizable bill formats and incorporation of
complex rules for payment.
• Personalization and Content Management: Finacle echannels allows for personalization and
customization of products and services based on customer profile.
• The Enterprise Application Integration layer contains connectors to enterprise applications such as
CRM, Data Warehouse, Trade Finance, Treasury, Corporate and Retail back office systems or
connectors to standard industry middleware.
Table 1: Infosys Finacle echannels: Features and Functions
Multilingual and Multibyte enabled. Fully Multicurrency enabled.
Account Information View Real-time account details or offline balances
Search transactions by date, transaction, last “x” transactions or check number
Pending instruments status
Stop payments
Transaction details
Check book/check status enquiry, online stop payments, Temporary Overdraft
inquiries
Loan Accounts Loan expiration date, number of principal demand installments in arrears, principal
demand arrears, interest demand installments in arrears, interest demand arrears,
bank charges demand installments in arrears, bank charges demand arrears, other
charges demand installments in arrears, other charges demand arrears
Account statement download in American Standard Code for Information
Interchange (ASCII) format or to Personal Financial Managers
End customer can view principal and interest attached to an account
Display sanction date, sanctioned amount, disbursed amount and current liability
View repayment schedule with flow amount, due date, installment frequency,
number of installments and next installment due dates
Deposit Schedules View principal and interest attached to deposit account
View Schedules
View deposit and maturity amount
Investment Accounts View the statement of holdings in various companies, the net available positions,
locked position, transaction details. Issue instruction to the bank to transfer shares
(backend support required).
Funds Transfer Transfer funds between accounts of same user and between own account and other
accounts of a third party or between two valid third-party accounts
Multicurrency transfers require the exchange rate to be obtained from the back-end
system or offline from a local database based on rate codes defined at the time of
installation
This is a one time process setup
Negotiated Rates agreed on by the customer and the bank
View or stop pending transfers
All transfer requests can be configured for additional authentication of transactions
using transaction password or other mechanisms like secure id
Bank administration can configure cut-off time for transfers

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Table 1: Infosys Finacle echannels: Features and Functions

Requests There is a submit request infrastructure which is used to do straight through
processing with the back-end or send mail to designated relationship managers or
use menus
Prepackaged solution sets can be targeted at the certain customer groups to make
customer self-service possible: online simulation of loan account pre-closure,
account opening and checkbook requests.
Online real-time processing for requests such as online demand draft request
processing, based on back-end host support of remote interfaces
Customer can mail request or select straight through processing of request
Users can review request status and delete or retry requests
Mail Management Users can create and send new mail messages
Users can view, delete, search, retrieve status
Banks can designate personnel to receive messages
Using the Simple Mail Transfer Protocol (SMTP) gateway facility, the relationship
manager can communicate with the customer from external mail systems at the
bank through Microsoft Exchange
Alerts Multichannel alerting facility—which supports logon alert (secure e-mail), SMTP e-
mail alerts and alerts over mobile (SMS)
Financial Modeling Tools are available for the end customer to model the loans and term deposits with
the bank
Scheme-based modeling maintained by the bank for house loans, car loans or
account-based modeling where users can pick established accounts and do what if
analysis
Loan Modeling support includes Demand Loans
What If analysis can be done by modifying input data by loan amount, payback
period, installment and balloon amount
Deposit parameter amounts set are deposit amounts, maturity amounts and period
amounts
Results can be graphed
Enrollment Online registration supported. Users choose logon id and temporary password.
Taxes Financial year and previous year tax information available online, available at
customer level
Joint Accounts Joint users are supported
Permissions include Funds transfer only, inquiry only or full permission involves
cumulative amount, number of transactions, tenure
User Preferences Users can set preferences such as e-mail address, ad modify links, date and
amount format, minimum balance, mobile phone number, enable/disable from SMS
banking, enable/disable Wireless Application Protocol (WAP) banking, activate,
deactivate SMS alerts and external e-mail alerts
Activities can be audited across SMS, WAP, Internet
Electronic Bill Create/Add Payees
Payment
Modify/delete payees from payee list
View/modify/delete pending payments
Schedule recurring payments
Search completed payments

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Table 1: Infosys Finacle echannels: Features and Functions

Banks designate account for payees who do not have an account
Create standard list of payees
Assign account numbers to payee during payee creation
Pay any or pay some at menu profile
Assign number of days required for payment at bank level
Payment transaction creation/upload
Update payment status for reprocessing of particular payment
Purge unused payees, old payments
Electronic Bill Handle biller specific formats and literals
Presentment
Display bills in biller specific formats
Handle biller specific payment details
Bill presentment status inquiry and modifications
Accept presented bill
Sending payment and registration information to billers in biller specific format (flat
file and report)
SMS/Global System Users can change mobile phone numbers through Internet banking customization
for Mobile option
Communications
(GSM) Banking
Functionality
View last five transactions, transfer funds, balances, bill payment, messages to
relationship managers
WAP Functionality Multiple Device Display Support: users can use any phone to access the WAP
banking services. Banks can customize displays to make usage of screen size.
Bank needs to maintain separate templates based on the WAP phone.
Administrative Administrator setup of transaction level limits
Module
Funds transfer rules on bank, branch and account levels
Credit and debit limit amounts are limited by bank level amounts defined in
configuration files
Multicurrency funds transfer online conversion rate is obtained at time of initiation of
a transaction at user level
Alerts on number of days for loan repayment, term deposits, minimum balances,
password expiration, unread mails and pending third-party payments can be set
Loan Modeling Scheme setup by specifying scheme codes, maximum repayment
period, minimum amount, round-off amount, flat rate flag, interest calculation
frequency and round-off indicator
Modify/delete scheme parameters
Add/modify/delete multiple interest rate slabs for a loan scheme by specifying slab
serial number begin/end amount, interest rate and penalty interest rate
Add/modify/delete deposit scheme parameters
Reports Data dictionary is available allowing the bank to use reporting tools like Crystal
reports to develop custom reports. Some canned reports are available in the
application.

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Table 1: Infosys Finacle echannels: Features and Functions

Maker Checker functionality is available in the admin module for
inserting/updating/deleting limit records and limit-user linkages. It can be selectively
enabled/disable for a particular table.
Self Auditing Online activity inquiry for self and for administrators. Covers date, activity type,
description.
Marketing Ability to display advertisements to users
Information
Display specific products of the bank for the purpose of cross-selling
Online Mall Bank users can make purchases of gifts, bookings, CDs and travel from external
sites and pay through bank account
The shopping mall exists as part of the application itself
Platforms Combination 1:
Application server: Websphere 4.0
Operating System: Windows 2000
Database: SQL 2000
Web Server: IIS 5.0
Combination 2:
Application server: iPlanet 6.5
Operating System: Solaris 2.8
Database: Oracle 8i
Combination 3:
Operating System: Win2000 advance server with .Net Framework
Database: SQL 2000
Browser IE 5.5 or above or Netscape 4.7
Secure id Server Ace Server 5.0
(optional)
Reports (optional) Crystal Reports Enterprise 8.5
SMTP Server SMTP 2.0 compliant server
WAP Server Nokia WAP 1.1; Nokia 1.1
(optional)

Analysis

Architecture

Finacle echannels has been architected on open industry standard platforms like J2EE and .NET and
uses standards-based interface protocols like HTTPs and XML. Infosys provides a multichannel
framework architecture to obtain a unified view of customer interactions across all delivery channels.
Finacle echannels currently allows views across Internet and mobile devices. Infosys plans to extend this
to the branch, call center and ATM channels. Fiancle echannels offers three basic functional modules:
• Retail Banking
• Electronic Bill Payment and Presentment
• Internal and External Shopping Mall Facility
The architecture consists of the following layers:
• Delivery Layer — end-user touchpoints such as Internet, ATMs, Wireless, and Call Center
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• Tools such as personalization and content management across multiple channels

• Functional modules including Retail (asset products such as loan and liability products such as
savings accounts, current accounts, checking accounts and deposits), EBPP, and shopping mall
• Infrastructure Services for funds transfer, e-mail management, financial modeling, requests,
administration and security
• Interface Layer for links to back-end systems via middleware or customer built application
programming interfaces (APIs) to communicate with host and third-party applications
The Finacle echannels solution is based on J2EE and .NET standards and consists of three main layers:
• Tier I handles protocol transcoders for various industry protocols like HTTP(s), XML, Wireless
Markup Language (WML), SMS. This is being extended to cover other channels.
• Tier II is the business objects and Rules Layer which is further divided into the following layers:
Presentation, Command, Business Objects, Data, and Interface Layer.
• Tier III is the Backend Interface layer to various Host Applications.

Tier II

Model View Control (MVC) Framework has been used to describe the Tier II architecture. Model is the
component that contributes to business functionality. View Controls the presentation logic, Control
ensures that the right business components are called.

Solution Architecture Under the J2EE Framework

Presentation Layer

View is controlled by Java Script Pages (JSPs). The JSPs contain the logic that is necessary to construct
and control the presentation and user interface of the application. All requests from the browser are
submitted to the servlet, which resides in the Servlet Engine part of the infrastructure layer.

Command Processing

This layer provides correspondence to the control aspect of the MVC and provides a standard way to
invoke the business logic request. Command processing is initiated by the servlet by invoking a command
object and passing the necessary repository object.

Business Objects Layer

This layer corresponds to the Model layer of the MVC framework and consists of Enterprise Java Beans
(EJBs). These beans contain the business logic for the applications. Stateless session beans are used,
and all EJBs can be accessed only through a proxy provided by the EJB container. The bank can also
develop new business rules by developing new EJBs with specific business logic and deploying them.

Data Layer

The Data layer consists of two elements: Data Access Objects (DAO), a class that contains life cycle
methods of a business entity and Value Object, a serialized class which contains all the properties of a
business entity.

Tier III Layer

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The interface layer has an XML/ISO8583-based interface with the backend systems. Finacle echannels
sends a request as an XML/ISO 8583 message.

Infrastructure Layer

The infrastructure layer consists of an underlying J2EE compliant application server.

Solution Architecture under .NET

Presentation Layer

This consists of Active Server Page Extensions (ASPX), which contain the logic that is necessary to
construct and control the presentation user interface of the application. All requests from delivery
channels are submitted to the HTTP Handler, which resides on the IIS Engine in the infrastructure layer.

Command Processing Layer

This layer corresponds to control of the MVC framework and is initiated by the HTTP Handler by invoking
a command object from the corresponding assembly and passing the necessary repository object.

Business Layer

This corresponds to the Model layer of the MVC framework and consists of the .NET Remote Objects.
These objects contain the business logic for the application. All the objects can be accessed through
.NET remote.

Data Layer and Interface Layer

These layers are similar to the J2EE infrastructure.

Infrastructure Layer

The infrastructure layer consists of the underlying .NET framework. The current version of Finacle
echannels is available on the Windows Advanced Server. Some of the key features of the .NE T
framework used in Finacle echannels application are:
• Session Management

• Database Connection Management

• .NET Remote
Pricing

Infosys does not provide specific pricing. Infosys charges customers an up-front license fee as, well as
ongoing maintenance fees.

GSA Pricing

No.
Competitors

Corillian

Unlike Infosys, which supports a broad range of platforms, Corillian supports only Microsoft environments.
Corillian utilizes its own proprietary Voyager middleware. Rather than developing the functionality itself
and providing an integrated suite as Infosys does, Corillian relies on partners for extended functionality.

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Corillian is starting to support the .NET architecture for features such as personalization. Although most of
Corillian’s clients support the packaged application model, Corillian is starting to gain customers in the
Application Server Provider model.

Financial Fusion

Financial Fusion provides a suite of e-finance solutions for Web and wireless applications, as well as
enterprise middleware for retail banking and institutional electronic trading. The primary architecture is
based on Enterprise Java Beans. Financial Fusion also offers adapters for protocols used in the
communication of financial information in both the capital markets and banking (Society for Worldwide
Interbank Financial Telecommunication [S.W.I.F.T], Financial Information Exchange [FIX], Open Financial
Exchange/Interactive Financial Exchange [OFX/ IFX]). Like Infosys, Financial Fusion also separates the
business logic from the application layer.

S1 Corp.

S1’s applications sit on top of the S1 Enterprise Platform, which is based on the J2EE architecture. The
S1 architecture supports database 2 (DB2), as well as SQL Server and works on the IBM and Wintel
architectures. S1 phased out the Edify Retail and Business Banking Suites and moved the Q-UP IBS
Platform for community banks over to run under the Enterprise Platform. The S1 Personal Banking and
Small Banking products replaced the IBS platform. The Small Business Package replaced the FICS, IBS
Cash Management and Edify Business Banking products. All of this consolidation has taken a lot of time
and effort for S1. S1 also purchased Software Dynamics Inc. (SDI) and plans to incorporate branch
functionality into the S1 Enterprise Platform application Suite. S1 sells the Enterprise Platform, which
serves as the infrastructure, and then S1 developed applications that sit on top of the platform. The
Internet banking suite of products are the first to be moved over and will be followed by the Wealth
Management, Insurance and Corporate Banking products. S1 will host the product for the customer or will
allow the customer to bring it on-site. For customers who choose to customize the applications, S1 sells a
development toolkit. A Software Application Manager serves as a user-friendly GUI interface where
managers can go to customize account parameters, control marketing messages and setup configuration
rules.

Other Competitors

Like Infosys, these competitors provide core banking functionality, as well as a multichannel architecture
that can be used for Corporate banking and other functions. Some of them also have CRM solutions.

Eontec

Like Infosys, Eontec is based on an EJB Server with business components that support financial service
transactions (such as open account, deposit, loan origination and bill payment), customer contact and
customer services. The Eontec Multi-channel Service is the multichannel architecture, which provides
services within the EJB server. These services enable delivery of financial transactions to customer
touchpoints and to back-end systems and also provide system access, logon, security; and
administration. A branch module supports all aspects of “over the counter” activity at branches and other
bank outlets. Internet Banking provides secure banking services delivered over the Internet.

Temenos’ GLOBUS

GLOBUS is a core processing solution with 24×7 real-time processing that encompasses both retail and
corporate banking functionality in a multichannel architecture. GLOBUS has been integrated with a variety
of legacy, back-end and enterprise applications. Temenos has a strong market presence in Europe, the
Middle East and Asia/Pacific and has recently expanded into the U.S.
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Strengths

Rewrote Application for J2EE and .NET

Unlike some of its competitors who rewrote their platforms to be J2EE compliant by utilizing Java
wrappers, Infosys rearchitected its solution from the ground up. Infosys has adhered very closely to the
J2EE specification, making changes and support easier.

Relationship With Infosys Services

Infosys is one of the largest Information Technology service providers in the world. Although they belong
to separate organizations, the Infosys echannels product team can draw on the expertise of the Infosys
services team to develop functionality that may not be provided as part of the standard offerings. For
example, the product does not currently have pre-packaged interfaces developed to interface with Siebel
for customer relationship management. Infosys services, however have a whole unit dedicated to Siebel
service integration and could easily assist the Finacle echannels product team in providing this
functionality. Infosys has experience with Blue chip clients such as Citibank and Bank of America
providing outsourced services.

Cost Competitive

Finacle echannels product is based out of India where labor costs are significantly less expensive than
other parts of the world. This gives Infosys a pricing advantage over some of its competitors.

Financial Position

Infosys ended the fiscal year in March of 2002 with cash and cash equivalents over US$210 million.
Infosys reported over $545 million in revenue for the year. The Business Banking Unit was responsible for
$21.6 million in revenue last year.

International Functionality

Finacle echannels supports multiple currencies and languages and also supports both SMS and WAP for
wireless functionality. Finacle echannels has been deployed in many different countries.

Bill Payment and Processing

Finacle echannels EBPP solution provides functionality similar to that provided by CheckFree in the U.S.
and has been deployed by a CheckFree like payment aggregator in India.

Java to .NET Integration Strategy

Infosys has developed an architecture that supports both .NET and J2EE. Although other vendors support
parts of .NET, Infosys is more advanced in its support of the .NET architecture. Infosys has developed a
plan for companies that might want to support J2EE until .NET becomes more mature and more widely
deployed. When they are ready, Infosys provides the capability to migrate from J2EE to .NET
architecture.
Limitations

Lack of Presence in Retail Banking Market Outside of India and Asia/Pacific

Infosys has a limited marketing presence outside of India and the Middle East, as well as less Retail
Internet Banking customers than its competitors. Infosys, is however expanding into other markets. Its
services division has a large presence outside of the Middle East and India, which will give Infosys much
needed “brand recognition.”
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Limited Number of Applications

Infosys has less applications that sit on top of its platform than some of its competitors. Infosys continues
working on this by acquiring companies and developing additional applications. Infosys acquired both a
treasury management and CRM products during the second quarter of 2002 and plans to have them run
on top of its platform.

User Friendliness of Administration Module

Unlike some of its competitors, which provide a sophisticated user-management console to make
changes without having programmer intervention, the Infosys administration is harder to utilize. As a
result, Infosys is, developing a more user-friendly administration module.

Lack of Standard Interfaces to Back-end Systems

Infosys has an extremely flexible and strong technology infrastructure, however it needs to develop more
interfaces to back-end systems. The services arm of Infosys has experience in developing interfaces,
however, it must be done on a professional services basis, rather than taking advantage of “pre-
developed” application interfaces. Most of its established customers are using Finacle as a back-end for
core banking functionality. Before signing a contract, Infosys will develop a proof of concept for the client,
ensuring ability to connect to back-end systems.

CRM

Although Infosys has acquired a CRM vendor, most of the functionality is currently horizontal. Infosys
plans to modify the application to provide “banking-specific” functionality and provide integration with the
Finacle echannels product line.

Missing Certain Features and Functions

Although Infosys does provide a broad range of international functionality, it is missing features and
functions that are important in certain regions. For example, it does not provide aggregation or check re-
ordering services, and country-specific protocols such as Bank Administration Institute (BAI) in the U.S.
market are not yet supported.
Insight
Infosys Finacle echannels Internet banking product is a good product for existing Infosys Finacle
customers who want to add Internet banking functionality, as well as those institutions that want a J2EE-
based flexible integrated platform for retail and corporate banking. Infosys also provides a migration plan
for financial institutions that might want to start out with J2EE and later migrate over to .NET.

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