Genpact to enter rural Indian banking market with atyati acquistion

Source: Genpact

Genpact Limited (G), a global leader in business process and technology management, today announces that it has signed a definitive agreement to acquire atyati technologies, a technology platform provider for the rural banking sector in India.

Closing is expected in three-to-four weeks, subject to satisfaction of certain customary conditions. Terms of the deal are not disclosed.

The acquisition of atyati technologies provides Genpact with a leading technology platform in the rural banking space with last mile functionality that allows Indian banks to serve the millions of people who reside in rural areas. This supports a major initiative in India driven by the government, India's central bank (RBI), and the financial services industry to provide banking services as well as facilitate payments of multiple government programs to the rural population. Rural India remains an untapped market for banking and financial institutions with opportunities for providers in the banking, insurance and mutual fund sectors.

Atyati's clients include several of the large Indian Public Sector Banks with a significant opportunity for growth. Atyati's GANASEVA solution is a comprehensive, mobility-based technology platform designed to deliver the complete suite of banking services to the rural population, including a fully automated and secure banking platform with smart card and biometrics-based authentication capabilities. Atyati hosts the solution on a private cloud so that banks can have the benefit of a totally outsourced service that is charged on a pay-per-transaction or pay-per-village model.

"This is a very strategic acquisition for three reasons. First, it adds a platform-based solution in a highly underpenetrated and large market, with significant potential to drive non-linear growth by increasing the coverage and adding multiple financial products for both rural and semi-urban markets on the platform," said Tiger Tyagarajan, president and CEO, Genpact. "Second, we also add several marquee Indian banks and clients to our portfolio with the ability to cross sell multiple Genpact products and services. Third, it leverages all of the latest cutting-edge technology around mobility and biometrics that makes it hkes it highly scalable and able to be taken to the global markets, including to the micro-finance institutions (MFIs). Emerging markets such as India and China are becoming an increasingly important part of our global strategy and we are excited to support these large and critical initiatives of the Indian government and financial sector. We are delighted to add the very strong and capable leadership team of atyati to Genpact."

"Genpact's operational excellence, process expertise, scale and delivery footprint will enable us to accelerate deployment of our technology platform and enable us to meet the aggressive goals of the financial sector, bringing significant value to our banking customers so that they can scale profitably with robust operational control. The financial inclusion market closely mimics the agent banking models across the world and has tremendous potential in terms of new product offerings like insurance, bill payments, mutual funds and EBT as well as leveraging Genpact's global presence to expand internationally," said Prakash Prabhu, CEO, atyati technologies. "I personally believe that this is very good for our customers, our employees and our shareholders. We are thrilled to join the Genpact team to more effectively serve our banking clients and are excited at the opportunities and potential that this association has to offer.

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