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Briefs
SBI-TCS set up tech platform
The country’s largest bank, State Bank of India (SBI)
will provide a technology platform to rural and smaller banks through its joint
venture company, C-Edge Technologies Limited. SBI has tied up with Tata Consultancy
Services (TCS) in floating the joint venture company. While SBI will hold 49
percent stake in the new company, 51 percent will be with TCS, informed A K
Purwar, Chairman, SBI, in Kolkata recently. He was speaking at an IT seminar
held in the city on the benefits of using technology in the banking operations.
SBI plans to provide advanced technology solutions and domain consulting to
the banking and financial services sector through this collaboration. “C-Edge
Technologies will provide a technology platform to regional rural banks and
cooperative banks in the country. These banks cannot set up a technology backbone
because of paucity of funds. We will provide them with a ready infrastructure,”
Purwar said.
 The
technology company will have an authorised capital of Rs 40 crore. Purwar said
that the process of forming the company had just started. C-Edge Technologies
will focus on developing high-value, niche assets and solutions by leveraging
domain and technology capabilities of the two parent companies.
TCS has recently acquired FNS, an Australian company providing banking solutions.
“This is a great opportunity for the smaller banks to be in the competitive
core banking market,” Purwar said. “C-Edge will perform as a platform
where other banks will be able to access and adopt technology, against payment
for consultancy services,” he added.
The SBI Chairman said that technology development for small banks is the need
of the hour as it will help them hold back big customers, who have been shifting
to high technology driven private and foreign banks for better services.
“Modern technology is important for banking across the globe,” Purwar
said. He felt that retail banking is the new mantra for customer-friendly services
and banks that are equipped with modern technology will be able to sustain in
the long run.
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