Everest Group - Finastra IT Services PEAK Matrix® Assessment 2022

Market Banking & Financial
Report Services IT Services
Finastra IT Services PEAK Matrix® Assessment 2022

December 2021
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Contents 1. Introduction and overview


Research methodology
Key information on the report
5
6
7
 Introduction 8
 Focus of the research 9
2. Market update 10
 Summary of key messages 11
 Summary of key demand themes for Finastra IT services 12
 Enterprise feedback summary on Finastra product suite and service providers 13
 Finastra IT services market overview 14
 Enterprise feedback for service providers 15
3. Services PEAK Matrix® characteristics for global assessment 16
 PEAK Matrix framework 17
 Everest Group PEAK Matrix for Finastra IT services 19
For more information on this and other research  Service provider capability summary dashboard 20
published by Everest Group, please contact us:
 Characteristics of Leaders, Major Contenders, and Aspirants 23
Ronak Doshi, Partner 4. Profiles of service providers 24
Pranati Dave, Practice Director  Leaders 24
Kriti Gupta, Senior Analyst – Accenture 25
Kriti Seth, Senior Analyst – Capgemini 26
Saurabh Anand, Senior Analyst – Cognizant 27
Japshabad Singh, Analyst

Contents  Leaders (continued)
– HCL Technologies
– Infosys
28
29
 Major Contenders 30
– Interswitch 31
– Luxoft, A DXC Technology Company 32
– NTT DATA 33
– Synechron 34
– TCM Partners 35
– Wipro 36
 Aspirants 37
– Anabatic Technologies 38
– Be 39
– Neoflex 40
– Sophos Solutions 41
5. Appendix 42
 Glossary 43
 Research calendar 44

01 Introduction and overview


Research methodology
Key information on the report
Background of the research
Focus of the research

Our research methodology is based on four pillars of strength to produce actionable and
insightful research for the industry
01 02 03 04
Robust definitions Primary sources Diverse set of Fact-based research
and frameworks of information market touchpoints Data-driven analysis
PEAK Matrix®, market Annual contractual Ongoing interactions with expert
maturity, and technology and operational RFIs, across key perspectives,
adoption/investment service provider stakeholders, input from trend-analysis across
briefings and buyer a mix of perspectives market adoption,
interviews, web-based and interests, supports contracting, and service
surveys both data analysis and providers
thought leadership
Proprietary contractual database of Banking and Financial Services (BFS) IT services contracts (updated annually)
Year-round tracking of 20+ service providers and annual RFI process
Large repository of existing research in platform IT services in BFS
Over 30 years of experience advising clients on strategic IT, business services, engineering services, and sourcing
Executive-level relationships with buyers, service providers, technology providers, and industry associations

This report is based on four key sources of proprietary information
Service providers assessed1

 Proprietary database of IT services contracts of major IT service providers with application and digital services
in scope of work (updated annually) for capital markets
 The database tracks the following elements of each contract:
– Buyer details including size and signing region
– Contract details including service provider, contract type, TCV & ACV, service provider FTEs, start & end
dates, duration, and delivery locations
– Scope details including share of individual buyer locations being served in each contract, Line of Business
(LoB) served, and pricing model employed
 Proprietary database of application and digital service providers in the banking industry (updated annually)
 The database tracks the following for each service provider:
– Revenue and number of FTEs – Revenue split by region
– FTE split by different LoBs – Location and size of delivery centers
– Investments in innovation and partnerships – Technology solutions developed
 Service provider briefings

– Vision and strategy – Key strengths and improvement areas
– Annual performance and future outlook – Emerging areas of investment
 Buyer reference interviews, ongoing buyer surveys, and interactions

– Drivers and challenges for adopting capital markets applications and digital services
– Assessment of service providers’ performance
– Emerging priorities
– Lessons learnt and best practices
1 Assessments for Anabatic Technologies, Be, Interswitch, Luxoft - A DXC Technology Company, Neoflex, NTT DATA, Sophos Solutions, Synechron, TCM Partners, and Wipro excludes service provider inputs on this study and are based on
Everest Group’s research, which leverages Everest Group’s proprietary Transaction Intelligence (TI) database, ongoing coverage of these service providers, their public disclosures, and interaction with buyers. For these companies, Everest
Group’s data for assessment may be less complete.
The source of all content is Everest Group unless otherwise specified.
Confidentiality: Everest Group takes its confidentiality pledge very seriously. Any contract-specific information collected will only be presented back to the industry in an aggregated fashion.

Background of the research
 Finastra has seen massive surge in demand since Misys and D+H joined hands in early 2017, owing to banks undertaking digital transformation initiatives to achieve resilient operating
models and meet the ever-changing customer expectations. It has emerged as one of the largest BFS-focused core platform with a vast coverage of products across payments, treasury,
risk and compliance, open banking, lending, and capital markets
 With traditional banks adopting platform-centric operating models, Finastra has been successful in differentiating itself from other product vendors by delivering componentized solutions
and open platforms that can be on-premise/cloud and have microservice capabilities. It has also made significant investments in the form of acquisitions and strategic partnerships to
broaden its capabilities in banking and capital markets
 There is an increasing shift in demand for Finastra products from Fusion Summit and Kondor to Fusion Global PAYplus (GPP) and Loan IQ
 The launch of Finastra’s developer portal and addition of multiple non-competing platform vendors to this portal has allowed banks to continuously explore the breadth of solutions and
innovations that system integrators have built around the Finastra product suite that they can leverage as part of their transformation journeys
This report includes the profiles of the following 15 IT service providers featured on the Finastra IT Services PEAK Matrix:
 Leaders: Accenture, Capgemini, Cognizant, HCL Technologies, and Infosys
 Major Contenders: Interswitch, Luxoft – A DXC Technology Company , NTT DATA, Synechron, TCM Partners, and Wipro
 Aspirants: Anabatic Technologies, Be, Neoflex, and Sophos Solutions
Scope of this report:

Geography Service providers Services
Global 15 leading Finastra IT service Platform IT services in
providers in BFS BFS

Definition and scope of application and digital services in Finastra IT services

PEAK Matrix® Assessment 2022
Services in scope
Platform upgrade and Platform enhancement Platform maintenance and

Platform consulting Platform implementation
migration services services support services
Supporting clients across product Supporting clients across Supporting clients with version Supporting clients with Supporting clients across helpdesk,
selection, feasibility assessments, requirements gathering, technical upgrades, data migration, and L2 and L3 customization features incident management, service
roadmap creation, strategy, and functional design, data cloud migration. and value-add features through request management, issue
change management, etc. conversion, workload integration bespoke development, API resolution, service governance,
system and process configuration, integration, etc. and documentation.
and deployment.
Scope of this assessment includes the entire suite of Finastra products: ILLUSTRATIVE
Flagship products Other products
FusionBanking FusionBanking FusionCapital FusionRisk FusionInvest UltraData NetCapture ActiveView Item CreditQuest
Essence Loan IQ Treasury Regulation Derivatives Enterprise Suite Processing Rating Manager

02 Market update


Summary of key messages
Summary of key demand themes for Finastra IT services
Enterprise feedback summary on Finastra suite and service providers
Finastra IT services market overview
Enterprise feedback for service providers

Summary of key messages
Everest Group Finastra IT Services PEAK Matrix® Assessment 2022 Everest Group Finastra IT services PEAK Matrix® Assessment 20221
 Analysis of 15 IT service providers for Finastra IT services leveraging Everest Group’s Leaders Major Contenders Aspirants
PEAK Matrix® highlights the following three categories: High
Leaders Accenture
– Leaders: Accenture, Capgemini, Cognizant, HCL Technologies, and Infosys
Infosys
(Measures impact created in the market)

– Major Contenders: Interswitch, Luxoft – A DXC Technology Company, NTT DATA , Major Contenders Cognizant
Synechron, TCM Partners, and Wipro HCL Technologies
Wipro Capgemini
– Aspirants: Anabatic Technologies, Be, Neoflex, and Sophos Solutions
 Leaders are trusted strategic partners in business transformation and have done large-
Market impact
Luxoft2
scale Finastra-focused transformations across the globe. They are investing in
Synechron
developing proprietary IPs, adding capabilities to Finastra products, and training certified NTT DATA
resources for both upstream and downstream services
 Domain-specific thought leadership, advisory capabilities, and joint Go-to-Market (GTM) Interswitch
TCM Partners
strategies with Finastra have helped the Leaders in driving engagements and becoming Aspirants Neoflex
preferred/exclusive partners for select products and geographies Anabatic Technologies
 Major Contenders are focusing on becoming product-specific specialists and investing in
Sophos solutions
expanding their breadth of offerings to position themselves as an end-to-end partner Be
Low
under all engagements. They are increasingly partnering with Finastra to organize Low High
webinars and build though capital to display their capabilities and domain knowledge Vision & capability
(Measures ability to deliver services successfully)
 Aspirants are investing in becoming leaders in niche products such as Fusion Risk or
1 Assessments for Anabatic Technologies, Be, Interswitch, Luxoft, Neoflex, NTT DATA, Sophos Solutions,
high-growth markets of Latin America and Africa. They are working toward building Synechron, TCM Partners, and Wipro excludes service provider inputs on this study and are based on Everest
capabilities across the Finastra landscape by hiring regional sales and consulting talent Group’s research, which leverages Everest Group’s proprietary Transaction Intelligence (TI) database, ongoing
coverage of these service providers, their public disclosures, and interaction with buyers. For these companies,
from the product firm (Finastra).They score higher on client intimacy and local presence Everest Group’s data for assessment may be less complete.
2 Luxoft, A DXC Technology Company
Source: Everest Group (2021).

Summary of key demand themes | Finastra IT Services
There is an increasing demand for cloud and as-a-service offerings around the Finastra suite of products from large as well as the growing
market of small and mid-tier banks, specifically in North America and Europe
The ability to handle and automate all the stages of financial services life cycle using a single platform has created a growing market for
Finastra products across the globe to streamline operations
As banks are increasingly investing in modernizing their payment systems and infrastructure, Fusion Global PAYplus and its payment hub
have emerged as one of Finastra’s fastest growing products, especially in Europe
Banks are looking for service providers that can act as strategic partners and can collaborate with them to identify untapped functions of the
pre-integrated Finastra platforms and co-invest in adding new capabilities
Although System Integration (SI) opportunity on Finastra has been limited to North America and Europe, it is now increasing in other high-
growth markets such as the Middle East and Africa
SIs, such as Accenture, Capgemini, and Cognizant, have built a diverse portfolio of cloud-enabled and as-a-service proprietary offerings for
Finastra products across banking, payments, risk, and trade
Wipro and NTT DATA have built expertise in Finastra services through acquisitions of specialist firms. Aspirants, such as Be and Neoflex, are
investing in acquiring Finastra talent for local sales and domain expertise

Enterprises have highlighted Finastra’s strength in its investments and partner network but
expect it to modernize its structure and reduce costs; they also expect their service
providers to innovate and add value beyond the ask
We appreciate the capabilities and the partner network

We expect service providers to have end-to-end knowledge
Finastra has built over the years, but the net benefit of
of the product suite and expertise in local markets to avoid
integrating and maintaining Finastra is similar or lesser to
any pitfalls during implementation.
other core platforms that have equal capabilities but cost
less.
– Head of Payments,
– Head of Data Quality Unit,
A large financial services brand in the UK
One of the top 3 banks in Ireland
While Finastra has been successful in winning deals with Service providers should actively try to bring value creation
large banks, it still is a big java monolith in need for ideas to the table if they want to become a preferred partner.
modernization that may not be relevant for digital-only banks. However, besides a few large players, the majority lack the
The pace of modernization has also been slower. objective or resources to do so.
– Head of Technology, – Vice President,

One of the top 5 Australian banks An American multinational bank

Only three of the top 15 IT service providers grew their global Finastra IT services
revenues by more than 20%
IT service provider revenue1 and growth rate1 in Finastra IT services

Finastra IT service provider YoY revenue growth in 2020
>20%
10%-20%
<=10%
<5 5-10 10-15 >15
1 Based on Everest Group estimates.

Finastra IT service provider revenue in US$ million in 2020
Source: Everest Group (2021)

Service providers have demonstrated high levels of client intimacy, technical expertise, and
commercial flexibility in Finastra IT services engagements
Buyer satisfaction scores, 2021 Low High Leaders Major Contenders Aspirants
 While Leaders and Major Contenders have

Technical expertise been highly rated for their technical expertise,
0 10
clients expect them to have better domain
expertise and bring greater value addition
 Aspirants, with their limited client portfolio, have
Domain expertise
0 10 fared well in managing the clients who seek
greater attention and customization toward
engagements
Talent management  Major Contenders have been highly

0 10 appreciated by clients for their innovative and
flexible construct and for providing value for
money
Commercials  Talent management has been a major concern
0 10 for all service providers, as attrition and
availability of suitable talent hinder project
management and time-to-market
Client management  Enterprises expect service providers to
0 10
proactively share industry best practices and
work as a strategic partner in their
transformation journey. While Leaders have
Strategic initiatives been successful in doing so, Aspirants and
0 10 Major Contenders are lagging behind due to
their limited services and domain coverage
Source: Everest Group (2021)

03 Services PEAK Matrix® characteristics for global
assessment


PEAK Matrix framework
Everest Group PEAK Matrix for Finastra IT services
Service provider capability summary dashboard
Characteristics of Leaders, Major Contenders, and Aspirants

Everest Group PEAK Matrix® is a proprietary framework for assessment

of market impact and vision & capability
Everest Group PEAK Matrix
High
Leaders

Major Contenders
Market impact
Aspirants
Low
Low High
Vision & capability

Services PEAK Matrix® evaluation dimensions
Measures impact created in the market –

captured through three subdimensions
Market adoption Leaders

Number of clients, revenue base,
YOY growth, and deal value/volume Major Contenders
Market impact
Portfolio mix
Diversity of client/revenue base across
geographies and type of engagements
Aspirants
Value delivered
Value delivered to the client based
on customer feedback and
transformational impact
Vision & capability
Measures ability to deliver services successfully.

This is captured through four subdimensions
Vision and strategy Scope of services offered Innovation and investments Delivery footprint
Vision for the client and itself; future Depth and breadth of services portfolio Innovation and investment in the enabling Delivery footprint and global sourcing mix
roadmap and strategy across service subsegments/processes areas, e.g., technology IP, industry/domain
knowledge, innovative commercial
constructs, alliances, M&A, etc.

Everest Group PEAK Matrix®

Everest Group Finastra IT Services PEAK Matrix® Assessment 20221
High Leaders
Leaders Accenture
Major Contenders
Infosys Aspirants
Major Contenders
Cognizant
HCL Technologies
Wipro Capgemini
Market impact
Luxoft2
Synechron
NTT DATA
Interswitch
TCM Partners
Aspirants Neoflex
Anabatic Technologies
Sophos solutions
Low Be
Low Vision & capability High
1 Assessments for Anabatic Technologies, Be, Interswitch, Luxoft, Neoflex, NTT DATA, Sophos Solutions, Synechron, TCM Partners, and Wipro excludes service provider inputs on this study and are based on Everest Group’s research, which
leverages Everest Group’s proprietary Transaction Intelligence (TI) database, ongoing coverage of these service providers, their public disclosures, and interaction with buyers. For these companies, Everest Group’s data for assessment may be
less complete.
2 Luxoft, A DXC Technology Company
Source: Everest Group (2021).

Summary dashboard | market impact and vision & capability assessment of providers
for Finastra IT services
Leaders
Measure of capability: Low High
Market impact Vision & capability

Vision and Scope of Innovation and
Service Provider Market adoption Portfolio mix Value delivered Overall strategy services offered investments Delivery footprint Overall
Accenture
Capgemini
Cognizant
HCL Technologies
Infosys

Major Contenders

Interswitch
Luxoft, A DXC
Technology Company
NTT DATA
Synechron
TCM Partners
Wipro

Aspirants

Be
Neoflex
Sophos solutions

Finastra IT Services PEAK Matrix® characteristics
Leaders:
Accenture, Capgemini, Cognizant, HCL Technologies, and Infosys
 Leaders have significantly grown their Finastra IT services practice and emerged as preferred partners for select geographies and products, driven by their expertise in advisory, domain-specific thought
leadership, and joint GTM strategies with Finastra
 Players, such as Accenture, Capgemini and Cognizant, have built a diverse portfolio of cloud-enabled and as-a-service proprietary offerings for Finastra products across banking, payments, risk, and trade
 Players, such as Infosys and HCL Technologies, have invested in leveraging their other product partners to build added capabilities on Finastra platforms and developing a talent base of certified Finastra
engineers and consultants
 Leaders have a significant client base in North America, Europe, and Asia Pacific and are now focusing on winning large-scale digital transformation deals in high-growth markets of Middle East, Africa, and
Latin America
Major Contenders:
Interswitch, Luxoft – A DXC Technology Company, NTT DATA, Synechron, TCM Partners, and Wipro
 Major Contenders cover a spectrum of service providers – from large players with global consulting and technology capabilities to mid- and small-sized payers with regional focus
 Small players, such as TCM Partners and Interswitch, have built meaningful capabilities and specializations for a few Finastra products in their local regions of Latin America and Africa respectively, where
other system integrators have minimal presence
 Players, such as Luxoft and Synechron, have made significant investments in developing a rich talent pool of Finastra-certified experts and ex-Misys consultants to support their clients on large-scale
transformations and become an end-to-end partner
 SIs, such as Wipro and NTT DATA, have built expertise in Finastra services through acquisitions of Finastra specialist firms with a strong presence in the regions they operate in
Aspirants:
Anabatic Technologies, Be, Neoflex, and Sophos Solutions
 They are either focused on a region(s) or vertical(s), or currently have a relatively small Finastra practice
 Players, such as Neoflex, are investing in becoming challengers to the Leaders and Major Contenders in specialized products such as Fusion Risk
 Aspirants are continuously investing in acquiring ex-Finastra/ex-Misys resources, local sales, and domain experts, to differentiate themselves from its peers and offer better client servicing

04 Enterprise sourcing considerations
 Leaders
– Accenture
– Capgemini
– Cognizant
– HCL Technologies
– Infosys

Accenture
Everest Group assessment – Leader

Scope of services Innovation and
Market adoption Portfolio mix Value delivered Overall Vision and strategy offered investments Delivery footprint Overall
Strengths Limitations
 Accenture has invested in building unique IPs and accelerators, such as a banking  Accenture is considered as a premium-priced player by the market, and,
insights app on Finastra’s Fusion Fabric Cloud (FFC) and other as-a-service solutions, therefore, needs to align its pricing models for different segments of players in order to
across payments, lending, treasury, and risk deliver value to all its clients
 It has demonstrated exceptional capabilities in lending by not only winning the largest  There is a perception in the market that it lacks solutioning flexibility because of the
global Loan IQ deal but also the first Loan IQ project in mainland China push to embed its in-house IPs and platforms
 It has created a broad Finastra services portfolio and strong global delivery capabilities  With Finastra pivoting its messaging toward promoting open banking in engagements,
inorganically, through specific acquisitions in this space especially in Europe, Accenture lacks focus on leveraging its existing open banking
expertise and partnerships to enhance offerings
 Accenture’s investments to scale Finastra-certified resources, especially in lending and
trade finance, have helped them win deals across the globe including high-growth  Accenture lags peers in weaving Finastra services capabilities with its broader digital
markets such as Middle East and Africa solutions/services offerings and partner products to serve end-to-end transformation
needs
 Clients have appreciated the domain expertise Accenture brings to a project

Capgemini

 Capgemini’s maximum revenue is from payments, however; efforts to increase revenue  Capgemini has a highly offshore-dominated delivery mix and lacks sufficient
from banking and lending have been successful with client wins focused on its corporate nearshore/onshore talent with local domain knowledge
banking and automated product suites
 It has not made significant investments in trainings and certifications to build a talent
 Capgemini has made significant investments in multiple accelerators focused on GPP pool of Finastra-certified resources, which may emerge as a challenge due to the
and authors the world payments report annually to differentiate itself from its peers. It has increasing demand for such resources in the current talent war
positioned itself as a leader in payments space
 It lacks credibility in complex implementations and consulting since most of its revenue
 It is investing heavily to develop new offerings for mid-tier banks pertaining to the trade is from QA and testing
finance solution-in-a-box delivered on cloud, wrapped around Capgemini's IT and
 Though Capgemini has a strong investment roadmap with an innovative strategy,
business process operations
enterprise clients have pointed out that it is not proactive in pitching innovative offerings
 Capgemini’s solution scope and delivery flexibility are well recognized in the market to improve clients’ cost dynamics

Cognizant

 Cognizant has made continuous investments in aligning its vision with Finastra’s vision by  It has not shown a lot of interest/objective in leveraging other ecosystem partners or the
focusing on Global PAYplus in Europe, Loan IQ in North America, Fusion Corporate Finastra fusion cloud developer portal
Channels and Fusion Trade Innovation in Asia Pacific, and Islamic banking in Middle
 Cognizant has not made significant investments under their joint GTM initiative with
East
Finastra
 It has developed a wide range of IPs and tools with a focus on customization and
 In comparison to peers of similar size, Cognizant's scale of Finastra-certified resources
automation during integration; this helps it to deliver productivity benefits, faster time-to-
is lower. This issue is getting compounded with industry-wide retention challenges of
market, and drive certainty in engagements
these valued resources required for driving Finastra transformation programs
 To cater to the growing demand from small and mid-sized banks, Cognizant has invested
in creating as-a-service offerings on cloud for banking, payments, and trade, while the
majority of other providers only have treasury-as-a-service
 Clients appreciate Cognizant’s innovative pricing constructs and flexibility exhibited in
Finastra engagements

HCL Technologies

 HCL has displayed the fastest growth in Finastra IT services among its peers and has  The majority of HCL Technologies’ Finastra services revenue comes from Asia Pacific
been successful in pivoting itself from being a testing partner to a holistic system and Europe, hence it needs to explore alternate geographies such as Middle East,
integrator Africa, and Latin America to reduce concentration risk
 It was recognized as partner of the year in 2021 and as an exclusive distributor for  The service provider needs a better local talent and a more balanced onshore and
Finastra Cash Management (FCM) and Summit in South Korea and Taiwan, which nearshore delivery mix for better client engagement
highlights the provider’s credibility as a trusted partner
 Clients have expressed concerns about HCL Technologies’ ability to communicate and
 HCL has been proactive in terms of co-investments and innovation with Finastra. It has manage a steady state of resources across engagements. They expect HCL to have
engaged with Finastra to provide product engineering services aimed at faster resource replacements and knowledge transfer
augmenting/building its product offerings
 Enterprise buyers have appreciated solutioning innovation and domain and product
expertise that HCL brings to a deal
 Capitalizing on its engineering heritage, HCL has invested in adding capabilities to
Finastra’s platform by cross-leveraging offerings from partners such as Tookitaki and
Xcelerate

Infosys

 Infosys has invested in leveraging its broad portfolio of FinTech partners to identify gaps  Infosys has not displayed significant Finastra-specific deal wins in high-growth markets
in Finastra’s offerings and customize the solution as per the clients’ needs, for instance, such as Latin America and Middle East. High concentration in select accounts in the
integration of Ncino with Loan IQ for a major lender Asia Pacific region is a major risk for Infosys
 It has established joint innovation centers to co-invest in products where Finastra product  Its current offerings are not suited for small and medium-sized businesses in markets
SMEs and Infosys domain and technology experts co-create solutions such as North America and Continental Europe
 Aligning itself with Finastra’s overall vision, Infosys aims to become a leading partner in  It lags peers in terms of IPs/accelerators/solutions on fusion fabric for areas such as
payments and lending. It has made credible investments in creating IPs for GPP and open banking, payments, and lending
Loan IQ, which has allowed it to increase its revenue share from the UK and Europe
 Clients have mentioned that Infosys needs to improve flexibility in commercial
 Clients have highlighted Infosys’ strength in delivering a good mix of onshore/offshore constructs and resource management
talent and the knowledge of the GPP product


 Major Contenders
– Interswitch
– Luxoft, A DXC Technology company
– NTT DATA
– Synechron
– TCM Partners
– Wipro
30
Interswitch
Everest Group assessment – Major Contender

 Being Finastra’s lead technology and strategic partner in Nigeria, Interswitch has become  Interswitch has limited consulting capabilities that hold it back from positioning itself as a
Finastra’s go-to business for financial solutions for trade and treasury in Africa strategic partner for clients
 Interswitch is one of the few niche players that has been very proactive in jointly  Its capabilities are limited to Fusion Kondor, Fusion Corporate Channel, and Trade
organizing events/webinars in Africa to promote modernization of banking infrastructures Innovation. The company should leverage its payments expertise and explore adding
capabilities in GPP for African financial institutions
 It has built a strong portfolio of tools/accelerators/templates for efficient implementation
and maintenance of tasks to differentiate itself from its peer group  It lacks sufficient messaging and focus on the next-generation demand themes for cloud
and as-a-service offerings on Finastra’s product suite
 The key highlights are Interswitch’s investments in building a Finastra-certified talent pool
including ex-Misys consultants and treasury specialists

Luxoft, A DXC Technology Company


 Even though Luxoft has one of the most recent partnerships with Finastra, it has made  Luxoft’s core capabilities revolve around Kondor Plus and Treasury-as-a-Service, which
significant investments in building a talented resource pool with 100% of their FTEs are the lesser growing Finastra products. They lack credible capabilities in Finastra’s
certified under their Finastra Center of Excellence (CoE) faster growing products
 It was recognized by Finastra for its excellence in enablement by developing a rich talent  It does not have sufficient investments in adding next-generation capabilities, such as
pool trained on all Finastra products and business lines analytics, to Finastra products by cross-leveraging other partner products or Fusion
Fabric
 Luxoft has been successful in winning deals in Europe, Middle East, Africa, and Asia
Pacific by leveraging its expertise in the treasury and capital markets and investments in  It lags peers in terms of the breadth of its investments in internal
as-a-service offerings IPs/accelerators/solutions
 Finastra and Luxoft have previously partnered to jointly organize webinars and publish
white papers

NTT DATA

 NTT DATA’s subsidiary – Everis – has been Finastra’s strategic partner on lending and  NTT DATA’s articulation of its capabilities on Finastra’s Fusion Trade Innovation is
trade finance solutions to focus on capabilities around Loan IQ and Fusion Trade subpar in comparison to its peers
Innovation (TI) for EU-based BFS firms since 2018
 Though NTT DATA has strong open banking expertise, it lacks investments around
 Everis has previously partnered with Finastra to jointly organize webinars around next- leveraging its partner network/knowledge to create value add frameworks to Finastra
generation themes such as blockchain in lending products
 It has meaningfully invested in building a talent base for traditional as well as next-  NTT DATA has not been able to demonstrate credible proof points of co-innovation with
generation skills, along with experts who are Finastra implementation specialists Finastra. FinCloud is the last known joint solution that was developed with Misys, which
calls for a need to do more joint solutions
 NTT DATA’s investments in domain talent to augment its business strategy and change
management offerings resonates well with clients. Clients also appreciate its ability to
gain sufficient knowledge of the client organization and establish a relationship with the
bank's leadership
 It has been successful in organically increasing revenue share from Asia Pacific over the
last few years and was recognized by Finastra as emerging partner of the year

Synechron

 Synechron has been successful in achieving a distributed revenue mix by winning deals  While Synechron has published Finastra-specific thought leadership papers, it does not
in geographies ranging from North America and Europe to Latin America, Asia Pacific, have much evidence on the investments it is making in collaboration with Finastra
Middle East, and Africa
 Synechron has minimal focus on cloud and as-a-service offerings that can hinder
 Under their talent strategy, the provider has achieved a good mix of onshore and offshore revenue growth from regional and mid-tier banks
resources with the practice being led by an ex-Misys SME
 It lags peers in terms of creating accelerators/solutions/IPs around Finastra GPP and
 Synechron has been successful in differentiating itself from its peers by driving Fusion Fabric Cloud
innovations through automation, blockchain, and AI on the Finastra platform using their
CoEs and Finlabs
 It has been proactive in publishing thought leadership and case studies to highlight its
capabilities and vision
 Synechron’s expertise across Fusion Capital, Fusion Banking, and Fusion Risk has
allowed it to diversify its presence across the globe including Latin America, Middle East,
and Africa

TCM Partners

 TCM Partners’ regional expertise in Latin America has helped Finastra establish a deep  TCM Partners lacks sufficient investments in proprietary offerings such as accelerators
footprint and become a preferred partner in a geography where other system integrators and value-add frameworks focused on data analytics and AI/ML
have not seen many wins
 It faces concentration risk as most of its revenues are derived from Fusion Kondor+
 Finastra recognized TCM Partners as an emerging markets partner for its expertise in
 TCM Partners should focus on building a talent base with regional expertise in Europe
local talent hiring and loyal customer base in high-growth markets
to increase its revenue footprint beyond Spain, Portugal, and Andorra to other regions in
 TCM Partners has strategically invested in acquiring/recruiting ex-Misys consultants and Europe
sales heads who have expertise in treasury and capital market products. It has also
successfully hired senior leadership from Finastra for their regional sales strategy skills
 It has built managed service capabilities for cloud and SaaS-based Finastra offerings to
increase revenue share from SMB clientele in Latin America and Europe

Wipro

 Wipro's acquisition of Encore Theme Technologies has helped it build expertise for  Wipro’s solutions do not resonate well with mid- and small-segment clients that require
Finastra trade finance solutions across high-growth markets of Asia Pacific, Middle East, more customized / low cost-as-a-service solutions
and Africa
 It lacks certified talent base for scaled implementations beyond the talent Encore Theme
 It has made strategic co-investments with Finastra in thought capital and marketing Technologies’ acquisition brings in for treasury-specific capabilities
collaterals focusing on modernizing trade finance
 Wipro should explore other Finastra products and build IPs beyond accelerators for
 Wipro's client-centric flexible engagement approach and domain expertise focused on value addition
banking and trade finance products are considered by clients to be its key strengths
 It has minimal investments to boost its capabilities on next-generation technologies
 It has displayed consulting expertise with a decent mix of onshore/offshore talent across specific to Finastra Fusion Fabric
its engagements


 Aspirants
– Anabatic Technologies
– Be
– Neoflex
– Sophos Solutions
37
Everest Group assessment – Aspirant

 Anabatic Technologies has a widespread portfolio and capabilities on Finastra and other  Anabatic Technologies lacks investment to increase its credentials and qualifications on
core banking products. It is relevant for clients looking for transformation support on Finastra. It needs to focus on achieving premier consulting partner status with Finastra
Finastra based DevOps and SaaS solutions specific to the Indonesian market
 It has limited capabilities and footprint around cloud-native application development and
 Displayed strong transformation capabilities for top Indonesian banks with focus on payment modernization initiatives on Finastra
Finastra-specific platform migrations/upgrades
 Despite some new deal wins, clients currently do not see Anabatic Technologies as the
 It has built industry-specific IPs specifically for challenges with Indonesian banks and first “go-to” choice for large-scale, strategic Finastra initiatives beyond the Indonesian
financial institutions market

Be

 Be has developed expertise in niche areas, such as risk and compliance and payments  Be needs to further expand market mindshare and credibility by evolving its consulting
(SWIFT) to aid enterprises on their Finastra-specific migrations capabilities and building thought leadership
 It has shown credible capabilities and proof points in DevOps, SaaS-based solutions, and  Lacks capabilities on high-growth Finastra products as current focus is limited to
platform migration services on Finastra treasury, cash management, and liquidity management. Needs to invest in building a
practice around Finastra LoanIQ to enhance cross-selling opportunities with existing
 Be has a good relationship with Finastra and utilizes the Finastra-native services
large clients
extensively. It also supports other third-party vendors as per requirement
 Limited experience in serving clients beyond Continental Europe
 Clients have appreciated its accountability, knowledge of existing platform architecture
stack, and advisory capabilities for Finastra-specific services  It should focus on actively investing in increasing its credentials and qualifications on
Finastra and achieving premier advisory partner status with Finastra

Neoflex

 Neoflex’s client base is distributed across the high-opportunity market of Europe, and it  While Neoflex has rich experience in serving clients in the risk management space, it
also has experience of working with clients within high-growth geographies of Asia lacks expertise in leveraging the Fusion Fabric Cloud or adding capabilities to Fusion
Pacific, Middle East, and Africa Risk
 It was the first Finastra partner in the world to be granted Finastra Certified Implementer  Neoflex’s portfolio for Finastra services is skewed toward clients looking for
(FCI) certification for Finastra Fusion Risk implementation and managed services; it should further enhance its consulting
capabilities to better serve its clients in building a strategic roadmap and guidance on
 Neoflex has been chosen by Finastra as a partner for the development and support
business transformation
program to help challenger Banks enter the banking market
 Most of its resources are in offshore areas and client feedback suggests that it could
 It has invested heavily in creating expertise in Fusion Risk and has been successful in
evolve its client proximity to better cater to upstream services
delivering flexible, tailor-made solutions that automate risk management and is willing to
align its solution to meet very specific client requirements

Sophos Solutions

 Sophos Solutions is focused on building applications using Fusion Fabric Cloud to add  Sophos Solutions’ Finastra portfolio is skewed toward the Summit and Fusion Treasury
capabilities to the Finastra suite of products, something that differentiates it from other Essential platform; it has scope to further broaden its capabilities in growing products
larger system integrators such as GPP and Loan IQ
 The organization is a banking specialist service provider and uses this expertise to  Limited experience in serving clients in geographies beyond North America and Latin
implement Finastra’s Fusion Summit solution America
 It has expedited time-to-market for its Finastra clients with IP  It still has some distance to cover to become a preferred end-to-end Finastra services
tools/frameworks/accelerators and has shown success in developing customized partner for enterprises, especially due to its smaller talent pool. It needs to further invest
solutions for the management of treasury assets in upskilling and cross-skilling its resources to better serve its clients
 While Sophos Solutions has invested in tools and IP, it needs to ramp up its marketing
efforts to improve its brand recall amongst clients

05 Appendix


Glossary
Research calendar

Glossary of key terms used in this report
AI Artificial Intelligence
AML Anti-money Laundering
API An Application Programming Interface is a set of routines, protocols, and tools for building software applications, specifying how software components interact
BFS Banking and Financial Services
CXM Customer Experience Management
IP Intellectual Property
KYC Know Your Customer
ML Machine Learning
Nearshore Nearshoring is the sourcing of service activities to a foreign, lower-wage country that is close in some dimension of distance
NLP Natural Language Processing is the ability of a computer program to understand human languages
SaaS Software-as-a-Service
SI System Integration
UI User Interface
UX User Experience

Research calendar
Banking & Financial Services IT Services
Published Planned Current release
Flagship reports Release date

Application and Digital Services in Capital Markets – PEAK Matrix® Assessment 2021 December 2020
Healthy Rebound in BFS IT Services Spend – Growth Themes and Cautions March 2021
Modernizing Data, Applications, and Infrastructure for the Next Phase of the Payments Revolution – State of the Market Report 2021 April 2021
Application and Digital Services in Banking – PEAK Matrix® Assessment 2021 June 2021
Application and Digital Services in Banking – Service Provider Profile Compendium 2021 August 2021
Consumer Loan Origination Systems – Products PEAK Matrix® Assessment 2022 December 2021
Platforms IT Services in BFS - PEAK Matrix® Assessment 2022 December 2021
Finastra IT Services PEAK Matrix® Assessment 2022 December 2021
Temenos IT Services PEAK Matrix® Assessment 2022 December 2021
Thematic reports Release date

Consumer Lending on the Cloud April 2021
Cloud in Capital Markets – the Backbone of Digital Financial Infrastructures May 2021
Deconstructing the digital assets revolution - what can financial institution learn from the meteoric rise of Coinbase June 2021
BFSI Enterprise Adoption Guide for Low-Code/No-Code Technology – Market Trends and Provider Landscape July 2021
Decoding the Sustainability Opportunity in BFSI: Deep Dive into the Environmental, Social, and Governance (ESG) Data & Analytics and Technology Provider Landscape July 2021
Sustainability in Financial Services – the Next Big Opportunity in Data, Technology, and Services December 2021
Note: For a list of all of our published Banking & Financial Services IT Services reports, please refer to our website page

Everest Group is a research firm focused on strategic IT, business services, engineering services, and sourcing. Our clients
include leading global companies, service providers, and investors. Clients use our services to guide their journeys to achieve
heightened operational and financial performance, accelerated value delivery, and high-impact business outcomes. Details and
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Report Services IT Services

Finastra IT Services PEAK Matrix® Assessment 2022

Copyright © 2021 Everest Global, Inc.

Our research offerings

This report is included in the following research program(s):

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Proprietary & Confidential. © 2021, Everest Global, Inc. | EGR-2021-31-R-4836 6

This report is based on four key sources of proprietary information

Service providers assessed1

 Service provider briefings

 Buyer reference interviews, ongoing buyer surveys, and interactions

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Background of the research

Scope of this report:

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Definition and scope of application and digital services in Finastra IT services

Platform upgrade and Platform enhancement Platform maintenance and

Flagship products Other products

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Proprietary & Confidential. © 2021, Everest Global, Inc. | EGR-2021-31-R-4836 10

Summary of key messages

(Measures impact created in the market)

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Summary of key demand themes | Finastra IT Services

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We appreciate the capabilities and the partner network

– Head of Technology, – Vice President,

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IT service provider revenue1 and growth rate1 in Finastra IT services

<5 5-10 10-15 >15

1 Based on Everest Group estimates.

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 While Leaders and Major Contenders have

Talent management  Major Contenders have been highly

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Everest Group PEAK Matrix® is a proprietary framework for assessment

Everest Group PEAK Matrix

(Measures impact created in the market)

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Services PEAK Matrix® evaluation dimensions

Measures impact created in the market –

Market adoption Leaders

Measures ability to deliver services successfully.

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Everest Group PEAK Matrix®

Everest Group Finastra IT Services PEAK Matrix® Assessment 20221

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Market impact Vision & capability

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Market impact Vision & capability

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Market impact Vision & capability

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Finastra IT Services PEAK Matrix® characteristics

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Measure of capability: Low High

Market impact Vision & capability

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