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TCS BaNCS™: Enabling Transformation in Banks and Financial Institutions
Highlights
- Ariketh Vasudevan, Head of Sales for Major Markets at TCS Financial Solutions (TCS BaNCS) shares what going live at Zions Bancorporation means for TCS BaNCS in the banking sector in the U.S.
- He doesn’t believe he has seen another U.S. bank of comparable size that has accomplished a full core banking replacement such as this.
- As banks integrate with The Clearing House’s RTP network and the Federal Reserve’s real time payment processing system FedNow, they expect their core banking solution to handle real-time payments. While this capability is being delivered in the U.S., TCS BaNCS has been part of the movement toward RTP in several countries.
On this article
Zions Bancorp Transformation
Ariketh Vasudevan, who heads Sales for Major Markets in TCS Financial Solutions (TCS BaNCS) helps us understand what going live at Zions Bancorporation means for TCS BaNCS in the banking sector in the U.S.
“Zions Bancorp is a $87 billion asset multibank holding company that operates with 8 brands across 11 states. Zions’ core replacement with TCS BaNCS began with consumer, construction, and commercial loan conversions in 2017 and 2019. Subsequently, Zions converted retail and business deposits across multiple brands in 2023 and 2024. This core transformation was foundational to the Bank’s objectives for digital transformation – from improving customer experience, to digitizing and streamlining operations, to leveraging data assets to enhance customer experience.
In today’s world of AI, it is imperative to have a solid foundation to build upon. He believes that Zions has invested in just such a platform with TCS BaNCS for the foreseeable future. By moving to an environment where the core system is connected in a real-time fashion to many other enterprise systems, Zions gained valuable insight into intra-day balances, transaction risks as it occurred, and the immediate impact of banking transactions across the enterprise. The real-time nature of the core system greatly enhances the possibilities for the application of AI to critical business functions.
Zions is one of the largest U.S. Small Business Administration (SBA) lenders. During the pandemic, the U.S. Government created a guaranteed loan program offered through the SBA called the Paycheck Protection Program (PPP) to mitigate the financial impact of the pandemic on small businesses. In the span of three days, Zions was able to implement the program and start providing relief to businesses across the country. To me, that summarizes the agility and strength of a robust core banking platform backed by modern architecture, delivered by a firm that is committed to offering high-performing banking technology”, says, Vasu.
He doesn’t believe he has seen another U.S. bank of comparable size that has accomplished a full core replacement such as this.
“It has helped demonstrate that a full core transformation of scale can be done in the U.S., and it is leading others to consider replacement of all or part of their legacy core systems.”
Change is inevitable, and he believes that banks in the U.S. will have to bite the bullet and make the move. International vendors like TCS BaNCS are changing the narrative and can deliver in the U.S. market. The question for banks to answer today is: That if not now, then when?
State of play
The U.S. banking space is a global anomaly in terms of the number of institutions (4100) and diversity of business models employed.
He says that “Banks are looking at partners who are flexible and whom they can work with in an environment where change presents constant challenges that need to be rapidly met. They are worried about control over customer data, the risks of changing their legacy cores, and disruption and disintermediation by non-banks and fintechs.
With the demand for convenience and customization, be it for real-time payments, fast loan disbursements or personalized wealth management, banks are keen on reimagining their roles, expanding functions, and becoming a central part of their customers’ lives.”
Right core banking solution
Is there a right core banking solution?
“The right core banking solution partner will offer them a wide breadth of functionality built on a modern architecture (read intelligent, digital core), API integration, and the support needed to successfully execute a major transformation program.”
“We want to help our customers keep banking engaging, integrated and secure. The importance of offering real-time processing in this market is another prime criterion.”
Intuitive user interfaces, scalable cloud infrastructure, and a microservices architecture can ensure that the core banking platform can scale and integrate smoothly with external ecosystems.
“We understand the need for banks to expand their reach and create new revenue streams by interlinking with third-party applications to create robust financial ecosystems. Banks can leverage the TCS BaNCS open ecosystem that is rich with possibilities. We work with them to create distinctive solutions rather than thrust solutions upon them. The fact that we are fully compliant and tested with both federal and state regulations in the U.S. is another key factor.”
As banks integrate with The Clearing House’s RTP network and the Federal Reserve’s real time payment processing system FedNow, they expect their core banking solution to handle real-time payments. While this capability is being delivered in the U.S., TCS BaNCS has been part of the movement toward RTP in several countries.
Cloud-based banking
On TCS BaNCS’ cloud strategy for the US market, “We have a multipronged strategy for the cloud. Our focus is to offer cloud-based banking for mid-size banks, and cloud or on-premises solutions for larger banks. It is important to note that most banks already have an enterprise level cloud strategy and TCS BaNCS will align to that strategy and deliver a seamless experience without disruption.
TCS BaNCS Cloud offers banks the agility frequently lacking in their current environments – the freedom to integrate with partners that bring distinctive capabilities. We are flexible to offer managed services or private solutions. We are agnostic to the provider and will follow the bank’s enterprise cloud strategy. For small and medium banks, we offer a wide choice of cloud providers to choose from.
The key differentiators are the breadth and depth of functionality that we offer, and the scale and domain expertise we bring to the table while remaining incredibly agile.
TCS has been operating in the U.S. for nearly 50 years, deriving nearly half of the company’s revenue from the market, and employing over 40,000 people. Banking and Financial Services is the largest industry sector by far, and it continues to grow and expand with new offerings.
He feels that the systems are outdated and need a lot of fixing which the banks are not in control of. This will have repercussions sooner than later.”
Perhaps the time for a change is NOW.
About the Author
Ariketh Vasudevan
Head, Sales, Major Markets TCS Financial Solutions
Ariketh Vasudevan has successfully led multiple cross LOB units to monetize strategic IT business opportunities, across international markets for over 25 years. He has rich experience in developing Enterprise, SME Direct large-ticket sales as well as Channel, Partnerships and Alliances. Proven ability in engaging with large institutions and signing multiple multi-million USD deals.
