New Delhi: The Union Bank of California has cancelled a banking project with Infosys Ltd that involved the implementation of the software services company’s Finacle Solutions, NDTV has reported. Finacle is Infosys’ flagship core banking solution and contributes around 5% to its revenue.
According to the report, this was a multi-year, multi-million dollar deal for Infosys. The licensing revenue from the deal was supposed to be small but would have been made up by servicing.
Infosys confirmed the order cancellation and said it has already been factored into guidance for FY12.
“Union Bank’s changed business priorities have led the bank to discontinue the program. Union Bank and Infosys have parted on amicable terms, and Union Bank wishes Infosys all the best in the US market,” Infosys said in a statement.