SAP has vowed to triple its financial services business, and become the largest IT supplier to banks within three years.
Dominic Trotta, head of the financial services business at SAP, told Computerworld UK that banks, trading firms and insurance companies were a "strategic industry" for the software vendor.
"We're going to triple our business and become the number one software provider for tier one and tier two clients by 2015," said Trotta, formerly a chief information officer at Barclays and a CTO at Citigroup.
The revenues generated by SAP's financial services business are not publicly broken down, but sources close to the vendor estimate it to have crossed the 1 billion mark in the last financial year. Total group revenues, including this and other sectors, were 12.5 billion in 2010, meaning that while banking is a large business for SAP, it does not yet have a clearly dominant portion of revenues.
SAP expressed strong confidence over its future growth in financial services. "The core banking market is very fragmented from a vendor perspective, with companies such as Fidelity, Temenos, Oracle and the Indian players in specific areas - and none has more than five percent or so marketshare," Trotta said. "We should easily be able to hit our targets."
SAP modules available to banks address everything from core analytics, transactions, reporting, sales, finance and human resources, Trotta said. The company is likely to draw on its existing presence with specific business modules in use at banks in order to offer them an expanded range of software.
SAP is promising banks better outcomes through the "strategic use of standard software", including enterprise resource planning, Netweaver as an integration platform, service oriented architecture, BusinessObjects business intelligence, Sybase mobile capability, a mixture of cloud and on-premise platforms, and in-memory computing.
Trotta said he expected the large banks to initially stick mainly with on-premise transactional computing, as well as fixed and mobile customer relationship management and business intelligence. Over time, however, he expects cloud computing to become more popular among the large banks, mirroring their smaller counterparts that are already making software as a service investments.
Over the last two years, SAP has been pushing its in-memory computing offerings across industries, and Trotta said it was an attractive proposition to banks and trading firms. "Anytime we speak to a large bank, the topic comes up. In-memory is so much more efficient, and the high speed of access to risk and capital data is something they really look at."
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