Indian multinational Infosys is considering implementing a usage of the Bitcoin blockchain into its core suite of banking software, Finacle. The move is part of a revitalisation strategy which has seen Infosys CEO Vishal Sikka task Senior Vice President & Global Head Michael Reh with a reorganisation of approach for the suite.
In a report in the Hindustan Times, an unnamed executive is reported to have said: “The thing with this (Blockchain) is that we still do not know the full technology impact it can have. More than just knowing the payments, we can get insights in legal documents, or use for even credit-worthiness of parties. All this obviously makes your (core banking) product stand out,”
Along with another executive, the unnamed party is reported to have indicated that the blockchain research is largely being done in the mobile banking space, and in the area of insurance domain technology.
“As soon as the client base of global banking platform vendors (mainly banks) consider Bitcoin and Blockchain as mainstream,” said Forrester Research’s vice-president of banking applications and architecture Jost Hoppermann, “it will be the time when banking platform vendors should incorporate Bitcoin/Blockchain capabilities into their solutions,”
Finacle is currently estimated to be worth in the region of $300mn (£204mn) of turnover, and employs 6000 people, according to the HT’s anonymous sources. A lack of investment in next-generation banking software has caused an estimated slide of the software suite’s fortunes since 2012.
Bitcoin’s blockchain is the underlying ledger transaction system which supports the cryptocurrency, and it is proving to be of more interest as a development and infrastructure tool than the fiat currency that it supports. In March IBM was reported to be investigating a ‘Bitcoin-style’, blockchain-based currency transaction system – to a certain amount of criticism from the Bitcoin community, who feel that the Bitcoin ecostructure is at risk of being co-opted in favour of the exploitable potential of the engine that powers it.
The blockchain is kept active and transactional by Bitcoin miners, often using custom-designed processing hardware, who are rewarded by dividends according to their contribution to the node-based network. Though there is no reason why new projects could not equally reward cycle and bandwidth contributors, the establishment of them is likely to depend on the ongoing health of Bitcoin in the interim.