India's Tech Mahindra announced it is acquiring Finastra's cash management products, which banks use to serve corporate clients. The deal covers Finastra Cash Management, Virtual Accounts and Liquidity Management, as well as CashPlus, Global CashPlus, the related APIs and intellectual property. Staff who support the products will move to Tech Mahindra. The price was not disclosed.

What it means: Finastra keeps selling parts of its portfolio, and every change of ownership matters to banks that run critical services on these systems, such as virtual accounts for matching receipts or liquidity pooling for groups. For banks and large companies in Greece using cash management solutions, the practical question is whether the product roadmap, licence pricing and quality of support will change. Tech Mahindra is mainly an IT services firm, so it may strengthen integration and customisation, but clients should ask for a written commitment that development will continue. Under DORA, European banks must assess critical technology providers and keep their register of contracts up to date, so a change of counterparty calls for a review of exit clauses, data access and where support is delivered from. Banks' corporate customers will probably see no immediate difference, as the transition happens behind the scenes. For software vendors, the deal shows the market for treasury and cash systems remains active, with demand for virtual accounts and real-time liquidity views. Banks with renewals due soon may also find this a useful moment to negotiate terms.

Read the original on Tech Mahindra

Related service: myDATA integrations

Related stories