Banking Business Unit

Girish G Vaidya
Senior Vice President and Head Banking Business Unit, Infosys

Safe Harbor
Certain statements made in this Analyst Meet concerning our future growth prospects are forwardlooking statements, which involve a number of risks and uncertainties that could cause actual
results to differ materially from those in such forward-looking statements. The risks and
uncertainties relating to these statements include, but are not limited to, risks and uncertainties
regarding fluctuations in earnings, our ability to manage growth, intense competition in IT services
including those factors which may affect our cost advantage, wage increases in India, our ability to
attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time
frame contracts, client concentration, restrictions on immigration, industry segment concentration,
our ability to manage our international operations, reduced demand for technology in our key
focus areas, disruptions in telecommunication networks or system failures, our ability to
successfully complete and integrate potential acquisitions, liability for damages on our service
contracts, the success of the companies in which Infosys has made strategic investments,
withdrawal of governmental fiscal incentives, political instability and regional conflicts, legal
restrictions on raising capital or acquiring companies outside India, and unauthorized use of our
intellectual property and general economic conditions affecting our industry. Additional risks that
could affect our future operating results are more fully described in our United States Securities
and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year
ended March 31, 2004 and quarterly report on Form 6-K for the quarter ended June 30, 2004.
These filings are available at www.sec.gov. Infosys may, from time to time, make additional written
and oral forward-looking statements, including statements contained in the company's filings with
the Securities and Exchange Commission and our reports to shareholders. The company does not
undertake to update any forward-looking statements that may be made from time to time by or on
behalf of the company.

Infosys Technologies Limited 2004-2005

Analyst Meet 2004 | New Game. New Rules.

Slide 2

The Changing Banking Paradigm

External drivers compel banks to leverage the developments in
Information Technology and continuously innovate
External Drivers

Tool

Result

Regulatory change
and consolidation

Competitive forces
Technology-led
Innovation
Changing Consumer

Product & Service

Innovation

Organizational &
process Innovation

Technological
developments

Infosys Technologies Limited 2004-2005

Analyst Meet 2004 | New Game. New Rules.

Slide 3

Leveraging technology for innovation

Product & Service Innovation

Implication for
Technology

Extensible
Flexible
Parameterizable
Organizational and process Innovation

Incorporates best-business practices

Straight Through Processing
Workflows to automate processes
Process Centralization
Single window service

In the past, industry has tended to be overly focused on PRODUCT innovation. Product innovations
at best gives a bank a 3 month head start over competition. PROCESS innovation can put a bank
more than a year ahead of competition. Continued success, therefore, comes from process
innovation. And the ability of the bank to build ongoing process innovation is determined by flexibility
and adaptability of its core banking systems - Chairman of a Large International Bank

Infosys Technologies Limited 2004-2005

Analyst Meet 2004 | New Game. New Rules.

Slide 4

Key imperatives for solution providers

Support end-to-end solution as well as best-of-breed approach
End-to-end solution straddling all banking businesses/ customer channels
Modular architecture plug and play solution
Open technologies to easily work with multitude of applications for e.g.
solutions for niche areas like Regulatory Reporting, Anti Money Laundering
(AML) solutions etc.

Flexibility/ extensibility
Greater business agility USPs, Lower Time-to-Market
Low dependence on vendor for product launches, process changes etc.

Better ROI through

Strong implementation and support capability upgrades, trouble-shooting

Lower overall cost hardware, software, network, change management
Future proofing of technology
Scalability
Process efficiencies and resource saving through Straight Through Processing

Support global business rules multi-entity, currency, country, time-zones

etc.
Better management control through relevant and timely MIS
Infosys Technologies Limited 2004-2005

Analyst Meet 2004 | New Game. New Rules.

Slide 5

Rules of the Game

Risk

Growth

Lowest overall risk

Most scalable core banking solution

Efficiency

Agility

Cost effective automation

Flexibility beyond parameters

Infosys Technologies Limited 2004-2005

Analyst Meet 2004 | New Game. New Rules.

Slide 6

Infosys offers the lowest overall Risk

Vendor Viability
Strong Balance Sheet and visionary management

End-to-end solution comprising

Fast-growing product suite spanning all banking businesses

Business Process Outsourcing
IT Outsourcing
IT Services

Delivery excellence
Consistent on-time, on-budget delivery
Rapid implementation, setting new benchmarks in every market
Our philosophy is driven by the corporate motto to always strive to
deliver beyond expectations

Proven and highly scalable solution

Finacle powers some of the largest banks world-wide on Open
Systems
Infosys Technologies Limited 2004-2005

Analyst Meet 2004 | New Game. New Rules.

Slide 7

Rules of the Game

Risk

Growth

Lowest overall risk

Most scalable core banking solution

Efficiency

Agility

Cost effective automation

Flexibility beyond parameters

Infosys Technologies Limited 2004-2005

Analyst Meet 2004 | New Game. New Rules.

Slide 8

Growth most scalable core banking

solution
By aggressively leveraging
technology, ICICI Bank has in the
last 3 years, grown from a retail
bank to a universal bank
2 Mergers in 2 years
Highest peak workload (450
TPS) handled by any open
transaction system in the World
(Winter Corporation, Waltham,
MA, USA)
2001
120 branches
2m customers
500k online customers
<1m peak transactions/day

PNB one of the largest state

owned banks in India, powered
by Finacle, is today LIVE with
30m customers with 10,000
users and is scheduled to cross
60m customers and 20,000
users within the next 12 months

2004
450+ branches
10m+ customers
7m+ online customers
8m peak transactions/day

In a Benchmark on HP Superdome, audited by E&Y, Finacle clocked >16 m transactions

per hour (4,562 TPS) in the online mode (using a real-life transaction mix and measured in
terms of business transactions)
Infosys Technologies Limited 2004-2005

Analyst Meet 2004 | New Game. New Rules.

Slide 9

Rules of the Game

Risk

Growth

Lowest overall risk

Most scalable core banking solution

Efficiency

Agility

Cost effective automation

Flexibility beyond parameters

Infosys Technologies Limited 2004-2005

Analyst Meet 2004 | New Game. New Rules.

Slide 10

Efficiency cost effective automation

STP enabled Finacle
Eliminates manual intervention
CARTS (Complaints And Request Tracking System) at ABN AMRO
Jaguar loan origination system at ABN Amro Bank

Customer migration to channels with Full Service Banking

Delivery channel transactions increased from 6% of the total transactions
in 2000 to >70% in 2004 at ICICI Bank

Enables process integration & orchestration (workflow, document

imaging)
Integration with Staffware for Trade Services processing at ICICI Bank

Re-use of services (> 100 business services exposed)

Infosys Technologies Limited 2004-2005

Analyst Meet 2004 | New Game. New Rules.

Slide 11

Rules of the Game

Risk

Growth

Lowest overall risk

Most scalable core banking solution

Efficiency

Agility

Cost effective automation

Flexibility beyond parameters

Infosys Technologies Limited 2004-2005

Analyst Meet 2004 | New Game. New Rules.

Slide 12

Agility The product managers dream

Extensibility toolkit enables the bank to differentiate and innovate
quickly & cost effectively
Launching new products
ABN AMRO cheque account with loyalty points
ICICI student accounts

Product & Process innovation

Relationship based pricing family units @ ABN Amro bank

Responding to changing regulatory requirements

AML compliance for cash transactions

Delighting the customers

Event based multi-channel alerts for retail and corporate customers by
NCB, a leading Caribbean bank

Infosys Technologies Limited 2004-2005

Analyst Meet 2004 | New Game. New Rules.

Slide 13

Flexibility using parameters

Create segment specific
products using standard
parameters
ICICI Bank Young Stars

Extensibility toolkit to create

USPs
fleXaccount from ABN AMRO
Savings + Loyalty Points

Bank@Campus (student
banking services)
Womens account

Infosys Technologies Limited 2004-2005

Analyst Meet 2004 | New Game. New Rules.

Slide 14

Where we were

31st March, 2000

Revenue

$ 5.32 m

Employees

193

Countries

Products

Infosys Technologies Limited 2004-2005

Analyst Meet 2004 | New Game. New Rules.

Slide 15

Substantial investments to further globalize

Finacle
Global product benchmarks completed
TowerGroup, USA for core banking functionality
Peppers & Rogers for CRM
Celent for e-banking in the US

This year we are investing an additional $ 10 m in Finacle

Products
Substantial increase in our engineering and domain teams to fast track
product developmental activities
New product offerings
Web-based cash management
Wealth management

Sales
More feet on the ground globally
Entry into US and China with a sales team dedicated to products
Expand sales force in Europe and APAC
Infosys Technologies Limited 2004-2005

Analyst Meet 2004 | New Game. New Rules.

Slide 16

 are already showing returns - grabbing a

larger share of the pie
Based on analysts estimates, we believe the annual size of the market
for our products is approximately $ 1 bn (source TowerGroup, Celent)
We believe that an increasingly large number of banks will take a serious relook at their technology solutions
Typically core banking solution replacements consider a 3 years+ lifecycle
Revenues get recognized over multiple years

While we continue to dominate the Indian market. We have further

consolidated our position in West Africa
We dominate the e-banking space in Saudi Arabia too 5 out of 5 deals
in the last 24 months
In the past 12 months, we have signed deals covering new markets
such as USA, Belgium, France, Mainland China, Thailand, Philippines,
South Africa, Australia, etc.
The recently concluded SBI deal has further increased our footprint by 9
countries, spanning advanced markets
Awards from The Banker, London 2004
Mobile Solution of the Year
Commendable Application of the Year Corporate e-banking
Infosys Technologies Limited 2004-2005

Analyst Meet 2004 | New Game. New Rules.

Slide 17

Where we are
31st March, 2000

30th June, 2004

Revenue ($ m)

5.32

29.20 *

Employees

193

860

Countries

29

Overseas sales force

10

Products

CAGR from March 2000 to June 2004 is 49.3%

* LTM
Infosys Technologies Limited 2004-2005

Analyst Meet 2004 | New Game. New Rules.

Slide 18

In conclusion
We believe we have an excellent value proposition for our
customers
We are investing in our products substantially and are committed
to strengthening Finacles position as a leading global banking
solution
In the last 12 months we have entered various new markets
We believe we are well on our way to consolidating our position
as a leading technology partner for banks worldwide

Infosys Technologies Limited 2004-2005

Analyst Meet 2004 | New Game. New Rules.

Slide 19

Thank You