Industry
Banking
Banking Services Transformation: Unlocking Exponential Value
Solution
TCS BaNCS™
TCS BaNCS™: Enabling Transformation in Banks and Financial Institutions
Highlights
- The payments marketplace is experiencing unparalleled hypergrowth globally. The current fragmented, silo-based systems restrict financial institutions to keep pace with growth in volumes, frequent market changes, and regulatory evolution.
- To keep pace with these challenges, many institutions are deploying Payment Hubs built on the latest technology stack.
- TCS BaNCS helps banks consolidate payments across products, countries, and currencies into a single solution with centralized, ISO 20022-compliant connectivity to any payments rail.
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Payments hypergrowth
In Switzerland, Japan, UAE, Sweden, and across the world, the leading providers in payments have turned to TCS BaNCS. The payments marketplace is experiencing unparalleled hypergrowth. More regions and countries have expanded the availability of newer payment types like real-time payments, retailers and consumers have embraced non-cash digital payments at the point-of-sale, and enterprises are embedding payments throughout their entire supply chain. These trends are leading to more frequent payments, varied types of payments, and a broader range of counterparties.
Financial institutions also need to address the adoption of the ISO 20022 messaging standard for both domestic and international payments. Starting November 2022, SWIFT enabled ISO 20022 messages for cross-border payments, with coexistence for MT and MX messages for a three-year transition period. Payments networks in the United States, United Kingdom, Europe, and Australia have adopted or are in the process of adopting ISO 20022 standards for domestic clearings.
The current fragmented, silo-based systems restrict the capability of financial institutions to keep pace with growth in volumes, frequent market changes, and regulatory evolution. To keep pace with these challenges, many institutions are deploying Payment Hubs built on the latest technology stack with microservices architecture hosted on a public or private cloud.
TCS BaNCS helps banks consolidate multi-product, multi-country, and multi-currency payments into a single solution with centralized, ISO 20022-compliant connectivity to any payments rail.
TCS BaNCS also enables the processing of real-time payments across multiple geographies with different clearing rules, SLA requirements, account addressing, and messaging standards.
Instant transfer, instant debit, request-to-pay, and pay-by-proxy – these are among the latest real-time payment mechanisms that financial institutions can quickly implement through the market-ready, modular deployment of TCS BaNCS for Real-Time Payments, which is already live in multiple countries including Sweden, India, the Kingdom of Saudi Arabia, United Arab Emirates, and Bahrain.
Built using cloud-native microservices for maximum flexibility and ease of deployment, the TCS BaNCS solution enables faster time to market, faster compliance with new payments regulations, and an enhanced user experience.
Länsförsäkringar Bank
In one of the fastest core banking and payments transformations in Sweden, Länsförsäkringar modernized with its go-live of TCS BaNCS in April 2019.
The result has been faster time to market for new and innovative products. Using the real-time payment components of TCS BaNCS, LF Bank now connects its customers to Swish, a real-time Swedish mobile payment service, and to several clearing and RTGS networks in Sweden. The rich API repository of TCS BaNCS enables open banking and participation in the larger ecosystem, positioning LF Bank for continued growth and success, and an award winning core banking transformation.
MUFG
TCS implemented a Regional Payments Hub, powered by TCS BaNCS for Payments, for MUFG Bank, Japan’s largest financial institution.
Bloomberg ranks MUFG Bank as the eighth largest bank in the world. It has an extensive branch network throughout Japan and fifty other countries. As part of its transformation journey, MUFG Bank consolidated its extensive multi-entity, multi-country, cross-border payment processing operations, which were running on an array of disparate legacy systems, onto a Regional Payments Hub powered by TCS BaNCS for Payments.
With this transformation, MUFG Bank has realized its vision to streamline all payment operations across the entire Asia-Pacific region to drive future growth, improve efficiency and lay a strong foundation to enable innovation.
Emirates NBD
Emirates NBD deployed TCS BaNCS for Payments as an “Enterprise Payment Hub” in the ENBD group technology landscape. It is deployed as a single-instance, multiple-entity solution supporting payment rails across seven ENBD entities. This platform supports standardized payment processing and operations, including clearing and settlement for international and domestic payments.
With a multi-entity, multi-currency, multichannel Enterprise Payments Hub, Emirates NBD has become the market leader in innovation.
PostFinance
PostFinance is the number one provider in the Swiss payment transactions market, ensuring a seamless daily flow of liquidity for its customers.
In 2011, the Bank standardized its payments platform with TCS BaNCS.
Banks in GCC
Two of the top banks in the Gulf Cooperation Council (GCC) region have implemented TCS BaNCS Enterprise Payments Hub for their international and domestic operations.
For their Enterprise Payments Hub deployments, the banks selected components including real-time payments, credit transfer (domestic and international), standing order, direct debit, cheques and bill payments.
With TCS BaNCS, both banks will achieve operational benefits and efficiencies through automation of key processes; reduced risk with real-time connectivity to core banking; and strengthened compliance from configurable business rules. The solution also supports onboarding to new clearing rails including GCC RTGS.
With the multi-entity capabilities of TCS BaNCS, the banks have consolidated operations across multiple entities and eliminated manual steps for payment operations, using standardized payment processing that supports country-specific functionality.
Next-gen Indian bank
A universal bank with tens of millions of customers transformed its payments landscape with the cloud-based microservices architecture of TCS BaNCS Enterprise Payments Hub.
In response to triple-digit hypergrowth in payment volumes, the bank deployed the TCS BaNCS Enterprise Payments Hub. With auto-scaling using microservices and containerization deployed on Amazon Web Services, the application precisely matches computing capacity with transaction volumes, ensuring high resiliency and zero downtime for a 24/7 operation.
The microservices-based deployment of TCS BaNCS Enterprise Payments Hub has given the bank a standardized solution that handles all payment types, optimizes transaction processing costs, and minimizes disruption of core systems.
Leading Indian bank
A major player in corporate and institutional payments for Indian enterprises has deployed the payment processing engine of TCS BaNCS along with channel solutions for branch and internet banking.
With the deployment of TCS BaNCS, the bank has transformed its payment initiation and servicing capabilities across a large branch network, enabling staff to process large files in a fraction of the time previously required. The system has scaled smoothly to support hypergrowth in payment volumes.
The bank also offers virtual account-based solutions for corporate customers, including a collections and reporting service and a pension investment tool for employees. These new business capabilities have enabled the bank to improve its strategic positioning with its corporate and institutional client base.
