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The Atom of the Bank
Sanjeev Jain
Thursday, September 1, 2005
Nucleus Software opened doors in New Delhi, in 1989 as a software company obsessed with the newfound love for developing a product that will run banks and track financial transactions. Sixteen years later it is still a fledgling company trapped under two other banking software behemoths— i-flex and Infosys with their banking software.

While i-flex ‘Flexcube’ is the world’s largest selling banking software, Infosys follows close at number five and Nucleus is ranked at a distant 10. However Nucleus has a claim to fame- its flagship banking product ‘FinnOne’. FinnOne is the most preferred software in the Japanese banking and finance market.

One of Japan’s biggest banks Shinsei Bank and a host of others in Asia Pacific and Japan have deployed FinnOne. “Our product is perhaps the best selling because of the depth of its functionality and futuristic features it has which no other product offers,” says Vishnu Dusad, Chairman and Managing Director of Nucleus Software.

Yet for most of its existence, Nucleus has been a kind of two hit wonder, bagging the lucrative Japanese market and a multi-year, multi-million contract with General Motors Acceptance Corporation, the financial services subsidiary of the world’s largest carmaker General Motors. “Though our products are currently sold in 18 countries, with the GM contract, our products will be in use in 37 countries around the world,” says Dusad. “We have done implementation for them in China, Taiwan and India. The first implementation in Europe will be done in October in Italy,” he adds.

Though the company has been in existence for quite a long time, it hasn’t been able to make a dent in the Banking and Financial Services Industry arena and its size is still small compared to other companies who entered this space in the last decade. This could be because of their relationship with large banks, which are their biggest clients and major shareholders.

The $23.4 million company’s profit was up 59.96 percent to $195,000, as compared to previous year. “Nucleus’ 35 percent revenues come from products and 65 percent from services,” informs Dusad.

In 2002-2003 Nucleus was awarded the 75th rank in the listing of the top 250 fastest growing technology companies in Asia Pacific by Deloitte and Touche Tohmatsu and IBS publications in their annual sales league table which ranked FinnOne by Nucleus, the 15th highest selling Back Office Banking System Product globally.

“The company is also in the process of setting up a subsidiary in the U.S. and has expanded its marketing operations into Canada, Africa, Gulf and the SAARC. The company has taken initiative to achieve CMM Level 3 quality certification at the earliest,” Dusad says. With growing need for expansion the company aims to be present in 100 countries by end of 2010. Nucleus recently moved to a 700-seat facility in Noida, New Delhi. They have also expanded workforce to 935 including India and offshore thus adding value and sharp focus to the growth.

Like a typical nucleus, Nucleus Software needs lot of fusion to create energy.
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