Paytm partners with Wipro for new payments bank
India-based Paytm has teamed with IT services integrator Wipro for its new payments bank, as it gets ready for an August launch.
Wipro will be implementing the new core banking system, and Banking Technology understands that Infosys, Oracle FSS and TCS Financial Solutions were in the running to provide their core banking solutions to Paytm. The core system of choice is believed to be Infosys’ Finacle.
TCS did bid to become the system integrator, but lost out to Wipro.
Wipro will also manage the integration of other systems, such as regulatory reporting and anti-money laundering (AML) solutions; and look after Paytm’s data centres.
Last year, Paytm, which is 40% owned by Chinese e-commerce giant Alibaba, got approval from the country’s central bank and regulator, Reserve Bank of India (RBI), to become a payments bank.
As a result, Paytm, and ten other institutions, will be able to offer deposit accounts, debit cards and utility payment processing.
Paytm founder Vijay Shekhar Sharma said in 2015: “We will do every justice to this opportunity [and] bring half-a-billion Indians to the mainstream economy by 2020. We want to be the driver of financial inclusion.”
Shinjini Kumar, a former central banker and senior executive at consultancy firm PwC, has been appointed as the CEO of the new bank.
Other personnel include Saurabh Sharma, a former Airtel executive, who will lead merchant and agent acquisition; and Vikas Purohit, previously with Amazon India, who will take charge of banking operations.
The wheel turns faster
This latest Paytm deal demonstrates the advanced pace of fintech change within India for many companies and organisations.
Recently, the RBI set up a scheme to provide financial assistance to urban cooperative banks for the implementation of core banking solutions. It will offer assistance and technology support as it plans to standardise the banking systems.
Swift India Domestic Services (Swift India) also went live as the nation seeks to improve its digital economy. Swift India is a joint venture created by Swift, the global banking co-operative, and nine partner banks to “address domestic market needs” of the Indian financial services industry.