TCS wins digital transformation deal from Ikea founder’s Swedish bank

Tata Consultancy Services (TCS), India’s largest information technology (IT) services firm by market cap, announced earlier today that it has won a digital transformation deal from Swedish retail and commercial bank, Ikano Bank, founded by Ikea founder, Ingvar Kamprad. While the total value and duration of the deal was not disclosed, the move will see TCS offer its BaNCS cloud platform to unify Ikano’s pan-Europe core banking solution to consumers as well as enterprises.

A joint press statement by TCS and Ikano Bank said that the adoption of BaNCS will see the latter’s core banking services, which are presently fragmented and sourced from multiple technology service providers, be unified under the same cloud platform. “(Ikano) runs on different core banking solutions in the eight countries it operates in, working with multiple broker solutions and agency banking arrangements in each. This led to country-wise silos within the organization, hindering unified risk management and a consistent customer experience.”

The adoption of the new platform, according to Ikano, will help the bank “support rapid launch of new products, and expansion into new markets.”

TCS has previously offered its BaNCS platform to multiple global banks, which include South Africa’s Absa CIB in August last year, Commercial Bank of Kuwait in June 2021, and Societe Generale in Europe in March 2021, among others.

Banking and financial services (BFSI) is the largest revenue driver for India’s largest IT services firm — in its April 12 exchange filing of FY23 financial results, revenue from BFSI deals grew 14.6% annually to ₹86,127 crore, and accounted for 38.2% of its net annual revenue of ₹2.25 lakh crore.

TCS announced multiple deals and service launches this month, which include the launch of TCS Generative AI for clients in partnership with Google Cloud and a digital transformation deal with Versuni (formerly Philips Home Appliances) on May 22, and a banking transformation deal with Zurich DIFC, and an innovation program for Jaguar Land Rover in Israel on May 23.