Nucleus Software: Delivering high quality at high frequency

NUCLEUS SOFTWARE: DELIVERING HIGH QUALITY AT HIGH FREQUENCY P R O J E C T

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UCLEUS SOFTWARE: LIVERING HIGH QUALITY HIGH FREQUENCY Parag Bhise, CEO of Nucleus Software, reflects on the company’s history of innovation and highlights the cutting-edge technologies – such as AI, ML, cloud-native solutions, and advanced data analytics – it’s developing to propel itself into the future.

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NUCLEUS SOFTWARE IS A LEADING PROVIDER OF LENDING AND TRANSACTION BANKING SOLUTIONS TO THE GLOBAL FINANCIAL SERVICES INDUSTRY. he company’s software powers the operations of more than 200 financial solutions in 50 countries, managing $1.2bn in global loans – supporting retail finance, corporate & SME finance, transaction banking, automotive finance, mobile banking, as well as other business areas. With over 500,000 daily users, the robustness and seamless user experience of the company’s solutions are remarkable.

But how is the company embracing emerging technologies in such a fast-moving sector? We’re joined by Parag Bhise, CEO of Nucleus Software, to explore the company’s culture of innovation.

“You have to embed innovation when operating in this space,” says Parag.

“Throughout our journey, the solutions we’ve delivered to our customers have 4

consistently leveraged advanced technologies, ensuring they remain at the forefront of transformation.

“For instance, around three decades ago, we collaborated with Citibank to develop email software at a time when email networks were not yet widespread. Other solutions developed for them included document management systems, ATM switch integrations, and many more, which were certainly ahead of their time, especially in the Indian technology landscape during that period. Similarly, we implemented screen scraping for another bank well before the advent of robotic process automation (RPA).

Although the technology wasn’t available then, we found innovative ways to deliver the solutions our clients required. These experiences taught us that innovation is not just a goal but a fundamental aspect of how we operate.

“When you think of innovation, it often gets equated solely with technological advancements. However, true innovation is far broader than that.

At Nucleus Software, we continuously innovate not only in technology but also operationally, ensuring that our processes and strategies evolve alongside the shifting dynamics of the banking and financial services (BFS) industry. Decades of BFS domain expertise enable us to consistently meet the evolving needs of our

clients, helping them thrive in an everchanging landscape.”

Over its three decades of operations, Nucleus Software has established a reputation for providing cutting-edge, future-proof solutions.

“We call ourselves one of the oldest fintechs in India,” shares Parag.

“The terminology didn’t exist when we began, but the kind of work that fintechs do – providing solutions at 5

a fast pace and actively innovating – is the work we’ve been doing for decades. The financial services industry changes at such a rapid pace, and we must stay ahead to remain relevant.

“Today, our focus is on implementing AI responsibly. A few years ago, we created components for various AI and machine learning methodologies, which we use in fraud detection, credit assessment and customer service.

While technologies like chatbots have become commonplace, we are constantly evolving and refining these innovations to explore their full potential and deliver even greater value to our clients.”

Two particularly notable achievements are the development of intellectual property products like FinnOne Neo® and FinnAxia® that originated from Indian soil. Over the years, these solutions have been developed and redesigned to best serve the needs of the modern consumer, and stay at the forefront of innovation in the financial sector.

“FinnOne Neo® is a solution that caters to retail, corporate and SME lending,” explains Parag. “The first release of this product was created in the late 1990s, and we decided to completely re-architect it in the early 2010s.

“We recognised that the banking landscape was evolving towards increased connectivity, prompting us to undertake a complete overhaul of 6

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“WHILE NUCLEUS SOFTWARE HAS SPENT DECADES DEVELOPING AND REFINING THESE TECHNOLOGIES, IT’S THE COMPANY’S RELATIONSHIPS WITH CLOUD INFRASTRUCTURE PROVIDERS LIKE AWS THAT ARE HELPING TO MAKE THESE SOLUTIONS AVAILABLE ON A WIDER SCALE” FinnOne™. This led to the creation of FinnOne Neo®, which provides a comprehensive, automation-ready framework featuring 480+ APIs, designed to align seamlessly with today's dynamic environment.

“FinnAxia® is our next-generation product designed for transaction banking. We have integrated AI to enhance fraud detection and prevention using pattern analysis.

This technology identifies suspicious behaviour, which is then reviewed by a human expert who evaluates the detected patterns to make informed decisions.”

But while Nucleus Software has spent decades developing and refining these technologies, it’s the company’s

relationships with cloud infrastructure providers like AWS that are helping to make these solutions available on a wider scale.

“When we started, many of our solutions were only available to big players, but now we have cloud capabilities that make these solutions much more accessible,” explains Parag. “Smaller finance companies who don’t have their own infrastructure are able to utilise these technologies through cloud Infrastructure providers. A customer can start with a small engagement with our platform using the cloud, and as the customer’s business grows, the infrastructure can be increased and enabled.”

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“WE ARE A LEARNING COMPANY, WE UNDERSTAND THAT OUR GREATEST ASSET LIES IN OUR PEOPLE: THEIR SKILLS, KNOWLEDGE, AND ADAPTABILITY DEFINE OUR COLLECTIVE SUCCESS” Parag Bhise, CEO According to Parag, flexibility is key in such a dynamic and fast-changing industry – to navigate these changes, the company is looking outside the software industry and towards the manufacturing sector.

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“We’ve been fascinated by Toyota’s lean principles in manufacturing,” says Parag. “A few decades ago, Toyota deployed total quality management (TQM) into their manufacturing systems, which is rooted in the principles of customer first, quality first and continuous improvement.

“We’ve since seen approaches like this adopted in manufacturing, but there are significantly fewer cases of lean strategies like this in software organisations. So we decided to start our own journey into lean principles around three years ago. We’ve been reading books, attending training sessions and experimenting with our operations.

“We do value stream mapping in any process to try and foresee any adverse effects that can be eliminated. Since implementing this approach we’ve seen very significant productivity improvements. One of the areas where we adopted this lean principle was to reduce the turnaround time for queries and defects. By eliminating some of our negligible processes, we were able to bring down our outstanding requests from over 200 to under 40 on any given day.

“We are one of the very few software product companies globally, who have successfully made possible 32 releases with precision and consistency – but more than this, with releases

that are future-proof and on cuttingedge robust technology platforms.

By adopting lean principles, we can accelerate future releases, providing direct benefits to our end users.”

And speed is of the essence. Parag believes the future of this sector – and of Nucleus Software – is going to be centred around the technologies and niche companies that can get personalised products to end users as quickly, securely and efficiently as possible.

“We’re seeing more and more integration with fintechs in this industry,” says Parag. “There are fintechs coming out with very niche,

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specialised solutions that we can now provide to our clients at a faster rate.

“AI and machine learning are also facilitating this growth, particularly generative AI. It’s helping provide stronger customer service and making product documentation easier for the end user. However, while I think these technologies are exploding right now, blockchain has high potential and is often overlooked.

“We typically refer to blockchain in the context of crypto, but I think its potential stretches far beyond that. It can be very handy with distributed ledgers, smart contracts and authenticating records 12

that may have been duplicated. I think we’ll be seeing blockchain being used in this way more and more, particularly in the BFS space where we operate.”

“We are a learning company,” says Parag. “We understand that our greatest asset lies in our people: their skills, knowledge, and adaptability define our collective success. Our commitment to Human Capital Development is unwavering. We believe in fostering a culture of continuous learning and skill development that empowers every individual to thrive in their roles and contribute meaningfully to our organisation’s growth journey.

Through targeted L&D initiatives, we

ADDED VALUE EMBRACING A CULTURE OF INNOVATION Parag is instrumental in developing many leaders, while also contributing to the overall growth of the organisation and broader industry. He puts this down to creating a culture of innovation.

equip our workforce with the latest tools, technologies, and industry insights necessary to stay ahead of the curve. When we talk about learning, we’re not just talking about adopting tools and techniques. It’s a complete mindset shift.

“I think this value of learning is a part of the reason why our staff retention is so high. I’ve spent over 35 years here, and you’ll find many people with comparable tenure. Nucleus is a unique company in this way, and it’s an excellent place to forge a career.”

Learn more about Nucleus Software here.

“I’ve been involved in driving innovation in areas like AI, fintech, and sustainability, given my past experience foreseeing industry trends,” says Parag. “The ability to foster a culture of innovation, promote diverse perspectives and an inclusive environment that inspires others to think creatively about solutions is most important. Additionally, building team proficiency in leveraging data analytics to inform strategies and demonstrate thought leadership through evidence-based insights is vital.”

“Thought leadership is very important to me, and it’s one area that I believe all industry leaders should be contributing to,” adds Parag.

Connect with Parag

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nucleussoftware.com

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