Nitin Sirohi, Principal Consultant, TCS Financial Solutions
Axis Bank is one of India’s first “new-generation” private- sector banks. Since then, Axis Bank has become a “next generation” bank and the third-largest private sector bank in India, offering the entire spectrum of financial services to corporates, SMEs, agricultural and retail customers.
India’s payment systems have been evolving at a rapid pace since the passage of the Payment and Settlement Systems Act of 2007.
Like so many other financial institutions coping with accelerated business growth, Axis Bank had accumulated or otherwise constructed numerous silo-based applications related to payments. By 2012, this situation led to mounting operational constraints, service limitations and cost drivers:
- Several existing payment systems were reaching or exceeding their capacity limits.
- Slow performance became a bottleneck due to soaring business volumes.
- Given an extraordinary volume of payments, back-office staff was stretched thin due to manually-intensive processes such as reconciliations of payments sent via domestic payment and settlement systems.
- Due to the large number of separate payment silos, visibility into intra-day cash positions at the central bank was delayed by over an hour, making it difficult for risk managers to monitor real-time liquidity.
- Branch staff were unable to give their customers adequate levels of service with bulk payments processing.
- IT maintenance had become highly complex due to rapid evolution in market payments standards and the advent of mobile banking.
In order to keep pace in this fast-moving marketplace expanding both in size and sophistication, the management team decided to build a centralized payment processing platform: an Enterprise Payments Hub (EPH) for the bank’s entire payment operations. EPH had to provide a single platform for all payment products, delivering enhanced service levels to customers at high levels (>99.99%) of system availability. Furthermore, EPH was to operate separately from the core banking solution.
Axis Bank selected TCS BaNCS for Payments as the core technology supporting the entire EPH project. Read how TCS BaNCS helped the bank to build a centralized payment processing platform for their entire payment operations.
Read the case study.