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Business News/ Companies / Nucleus Software plans an aggressive one-year growth roadmap
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Nucleus Software plans an aggressive one-year growth roadmap

It had recently launched FinnOne Neo aiming to capture 70-80% share of retail lending, transaction banking market in 3 years

FinnOne Neo, a revamped version of the older FinnOne, is claimed to be 50% faster.Premium
FinnOne Neo, a revamped version of the older FinnOne, is claimed to be 50% faster.

Mumbai: BSE-listed Nucleus Software Exports Ltd, a global software product and solutions company, has drawn up an aggressive one-year growth plan that involves expanding its product portfolio and exploring new geographies.

The company, which has a market capitalization of 671.15 crore, offers banks niche products for retail lending and transaction banking, including collections, payments and liquidity management for banks’ corporate customers.

It recently launched FinnOne Neo, a software suite to manage the lending requirements of the banking and financial services industry (BFSI).

Chief executive officer Vishnu Dusad says this is the company’s third product launch in 12 months and that it is aggressively ramping up its offerings for the banking sector.

FinnOne Neo, a revamped version of the older FinnOne, is claimed to be 50% faster. It is aimed at capturing a 70-80% share of the retail lending and transaction banking market in the next three years.

Nucleus Software launched FinnAxia transaction banking suite in February and a mobile version of FinnOne in September 2013, called FinnOne Mobility Solutions, Dusad said.

“FinnOne Neo is the third launch within a year, and we are already implementing this product with two private sector banks and are in talks with several other banks to provide this solution."

The company also sees a huge opportunity in the mobile payments space. It says mobile payments is a 50,000 crore-per-annum opportunity in India in the next three-five years.

It is working on a solution that can reduce the cost of mobile banking transactions. The product should be ready by next year, the company said.

“Apart from this, we are also looking to target developed countries, especially North America and Europe, where we see a huge opportunity for upcoming projects in the BFSI space. Indeed, out of the $30 trillion worth of retail assets in the world, $15 trillion are from the United States. However, till date, although we are present in 50 countries, developing countries make up 70-80% of our revenues (10-15% from India), while only 10-15% comes from 25 developed countries where we are present. Thus, we are actively trying to change this by partnering with existing customers in these countries and major accounting firms like KPMG, Deloitte, PricewaterhouseCoopers (PwC) and Ernst & Young (EY) to customize our solutions for these markets," said Dusad.

Nucleus will be looking at automobile loans, followed by educational loans and mortgages in these new markets.

“The mortgage market in the US alone would be worth $7.5 trillion, automobile loan space would be worth $500 billion, and educational loans would be worth $200 billion. From the $500 billion of automobile loans, we are targeting capturing $100 billion in the next three-four years, and two years later when we would have solutions ready for the mortgage market, our goal would be to capture $500 billion of that market over three years. We have also interacted with one university in the education segment and talks are at an advanced stage. Overall, we would look at capturing $100 billion share of the educational loan market," Dusad said.

To support these expansions, employees who have worked with banks and have used Nucleus’ products, will train others.

The company is also planning to hire 100 more experts from the banking sector to better cater to its BFSI customers.

The R&D costs—typically 10% of Nucleus’ revenues, which were 345 crore for the fiscal ending March—will go up by 15% in 2014-15, and HR spends will increase by 20%, the company anticipates.

In India, too, Nucleus has hired about 20 management trainees from the top five Indian Institutes of Management—the biggest single hiring from tier-1 and 2 institutions that the company has done this year.

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Published: 01 Jul 2014, 06:24 PM IST
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