Accenture plc (ACN) recently announced that its management consulting services have been selected by Hong Kong-based Wing Lung Bank, for an undisclosed amount. Per the deal, Accenture will support the Bank in restructuring its information technology (IT) system.
Wing Lung Bank is the oldest Chinese bank and a wholly owned subsidiary of China Merchants Bank. The bank has kept itself in tune with the technological changes of the modern day, which has enabled it to retain its goodwill. Wing Lung Bank will now be deploying Accenture’s popular core banking system (CBS) across its 50 branches.
Accenture’s CBS is expected to deliver real-time bank processing capabilities and support higher transaction volumes, while streamlining and enhancing the bank’s risk management functions.
Core banking systems form the backbone of banks' IT infrastructures. The system unifies banking services through a group of networked bank branches. Bank customers can access their funds from any of the member branch offices. They can also make simple transactions such as the opening and transferring of deposit accounts, processing loans, mortgages and payments. Banks make these services available across multiple channels like ATMs, Internet banking and branches.
Accenture CBS solution is already being used across 200 financial institutions including Banco Bilbao Vizcaya Argentaria, S.A. (BBVA). The solution’s increasing demand has attracted recognition from Celent, an industry analyst firm. The firm conferred ‘XCelent Functionality Award’ to Accenture for its contribution toward the successful implementation of CBS within large and midsized institutions.
Accenture’s comprehensive service offerings have made it one of the key IT service providers. A large product and service base has also provided the company a top spot in the market. Accenture has regularly won deals from all industrial sectors as well as the federal vertical.
Though Accenture’s deal prospects look bright, its large number of government contracts (which carry low margins), stiff competition from IBM Corp. (IBM) and significant European exposure may temper its growth going forward.
Currently, Accenture has a short-term Hold rating, denoted by the Zacks #3 Rank.
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