Investec picks Infosys Finacle for banking overhaul

Investec has selected the Infosys Finacle digital banking suite on Microsoft Azure for its banking operations in South Africa, the UK, Mauritius and the Channel Islands.

The bank plans to replace legacy platforms with Finacle as part of a multi-country overhaul of its banking systems. The programme includes the Finacle Deposits Suite, Finacle Lending Suite, Finacle Virtual Accounts Management and Finacle Liquidity Management Solution in a multi-region software-as-a-service setup.

The project is intended to create a new technology base for the next phase of Investec's growth strategy. It is also expected to improve day-to-day operations and support regulatory requirements across several jurisdictions.

The rollout covers some of Investec's core banking markets, underlining the scale of the change for the lender and wealth manager. The group operates in Southern Africa and the UK, with additional operations in other international markets.

Platform shift

The migration will replace older systems with a cloud-based banking platform delivered through Microsoft Azure. The arrangement is expected to support real-time data access, broader use of artificial intelligence tools and closer links with financial technology partners through application programming interfaces.

The lending component is intended to support digital lending journeys from application to servicing. The virtual accounts product is aimed at corporate cash management, including collections, payments and reconciliation.

Liquidity management is another part of the programme, as the bank seeks more immediate visibility of cash positions and working capital across entities. That is particularly relevant for financial groups operating across multiple regions and regulatory regimes.

For Infosys, the selection adds a sizeable banking client to its Finacle business, which provides banking software to financial institutions in more than 100 countries. Finacle sits within EdgeVerve, a product subsidiary of Infosys.

Executive views

Lyndon Subroyen, Global Head of Digital and Technology at Investec Group, outlined the bank's rationale for the overhaul.

"Our partnership with Infosys Finacle and Microsoft Azure marks a step change in our digital transformation journey. We are building a stronger digital foundation that allows us to scale with our clients, deliver a more seamless and personalized experience, and operate with greater precision. Digital is no longer a layer that supports the business. It is integral to how we grow, deepen client relationships and improve our efficiency," said Lyndon Subroyen, Global Head of Digital and Technology at Investec Group.

The deal also highlights the continuing shift by banks away from older in-house or heavily customised systems towards cloud-based software sold as a service. Such projects can be complex because they involve core deposits, lending and transaction functions at the centre of a bank's operations.

Large banks and specialist lenders have increasingly pursued technology modernisation to reduce the burden of maintaining legacy systems, respond more quickly to product changes and improve data management. In markets such as the UK and South Africa, those efforts have also been shaped by competition from digital-first providers and the need to meet changing compliance demands.

Investec's choice of a software-as-a-service model through Microsoft Marketplace suggests it wants a platform that can be deployed across regions without building and running all the infrastructure itself. Multi-region deployment can also help firms manage resilience and service continuity requirements.

Sajit Vijayakumar, Chief Executive Officer of Infosys Finacle, said the agreement reflected broader change in banking technology.

"At Infosys Finacle, we are committed to helping banks accelerate growth by inspiring better banking. Our next-generation, cloud-native banking solutions are designed to help institutions like Investec accelerate innovation, strengthen operational agility, and deliver more intelligent and personalized experiences at scale. By combining open APIs and events-driven architecture with strong data and AI foundations, Finacle will empower Investec to stay ahead of evolving client expectations and unlock new avenues for value creation and delivery," said Vijayakumar.

Investec was established in 1974 and has about 8,000 employees. The group has a dual listing in London and Johannesburg.