BackSAP plans banking software foray
SAP plans banking software foray
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SAP AG, the world’s largest business software maker, is now looking beyond its traditional enterprise resource planning software, and plans to offer software for automating retail banking and treasury management to organizations such as the Life Insurance Corp. of India (LIC).
This move will help the German ERP (enterprise resource planning) vendor open another battlefront with arch rival Oracle Corp., which acquired Mumbai-based I-Flex Solutions Ltd for addressing the core and retail banking software space.
SAP is banking on the success of its banking and treasury management software, “as the company offers more modular solution across areas such as treasury management, loan management and software for connecting the branches," said Geraldine McBride, president and chief executive of SAP Asia Pacific and Japan.
According to people at SAP, who did not wish to be identified, LIC is alreadyin the process of deploying treasury and loan management software from the company. There are around 20 financial institutions including Punjab National Bank, General Insurance Co. and Reliance Insurance in the country currently using different solutions from SAP.
In 2006, seven banks including Deutsche Postbank AG and Standard Bank of South Africa Ltd bought SAP’s deposits management system, according to International Banking Systems that tracks the banking software space.
However, SAP will face challenges in the Indian markets, “especially since most of the large banks such as State Bank of India Ltd and HDFC Bank Ltd have already deployed core banking software," said Sanjay Sharma, chief information officer of IDBI Bank Ltd.
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