Bank of Sydney leverages Infosys Finacle on AWS to fast-track digital banking modernisation

Why Did Bank of Sydney Choose Infosys Finacle and AWS for Its Digital Overhaul?

In a major strategic pivot aimed at strengthening its position in the Australian financial services landscape, Bank of Sydney has selected the Infosys Finacle Digital Banking Suite, deployed via Amazon Web Services (AWS), to completely modernise its core banking and digital infrastructure. The bank’s shift to this cloud-native, software-as-a-service (SaaS) model represents not only a commitment to enhanced customer engagement and operational efficiency but also a response to wider sectoral pressures pushing banks toward leaner, more agile platforms.

The deployment includes a full suite of Finacle offerings—from core banking and digital engagement to online, mobile, and onboarding solutions—all delivered securely on AWS infrastructure. The move is part of a broader industry transformation where banks are racing to retire legacy systems in favour of cloud-based core platforms that can meet real-time regulatory, consumer, and innovation demands. This announcement aligns with broader digitisation efforts seen across Australian regional banks, as mid-tier institutions increasingly invest in scalable, API-enabled platforms to remain competitive with both incumbents and digital challengers. The Bank of Sydney initiative also mirrors similar transformations pursued by Bendigo and Adelaide Bank, Suncorp, and Macquarie in recent years, as these firms seek to compress costs and expand digital capabilities.

What Benefits Will Bank of Sydney Gain from Moving to Finacle’s SaaS Platform?

Bank of Sydney’s deployment of the Infosys Finacle Digital Banking Suite in SaaS mode promises significant advantages across cost, compliance, and customer experience vectors. By operating on AWS’s highly secure and scalable infrastructure, the bank can dynamically scale resources to meet customer and business demand fluctuations while mitigating on-premise maintenance costs.

The suite encompasses Finacle Core Banking for real-time transaction processing and regulatory alignment, the Finacle Digital Engagement Hub for orchestrating seamless omnichannel journeys, and both Finacle Online and Mobile Banking to ensure intuitive digital interfaces for customers. Finacle’s Digital Onboarding solution will allow Bank of Sydney to automate KYC and account opening workflows in compliance with Australian financial regulations.

By adopting Finacle’s Australia-ready “Reference Bank” architecture, Bank of Sydney accelerates its time-to-value and ensures alignment with local market norms. The SaaS model also supports easy integration with third-party fintechs via open APIs, positioning the bank as a more collaborative player within the embedded finance ecosystem. Overall, the bank aims to eliminate legacy application sprawl, reduce technical debt, and enhance innovation velocity.

What Does the Deal Signal About Infosys Finacle’s Position in Australia?

The Bank of Sydney engagement is a strategic win for Infosys Finacle, a division of EdgeVerve Systems and a key growth driver for Infosys Limited (NYSE: INFY). The partnership significantly expands Finacle’s reach in the Australian mid-bank segment, signalling rising demand for digital transformation platforms that are modular, scalable, and cost-efficient.

Sajit Vijayakumar, Chief Business Officer and Global Head at Infosys Finacle, framed the deal as part of the company’s long-term commitment to supporting flexible and affordable modernisation for Australian financial institutions. He said the Finacle SaaS suite enables banks to thrive in the digital age by improving engagement, speeding up product launches, and creating leaner operational models. The agreement also reinforces Finacle’s broader global strategy of offering composable banking capabilities, allowing institutions to modernise at their own pace, function by function. In recent years, Finacle has executed similar SaaS transitions in markets such as the Middle East, Southeast Asia, and North America, underscoring the platform’s growing reputation for stability, speed, and configurability.

What Is AWS’s Role in Supporting Bank of Sydney’s Digital Strategy?

As the hosting infrastructure provider, Amazon Web Services offers the operational backbone for the Finacle deployment. Jamie Simon, Director of Banking and Financial Services for AWS Australia and New Zealand, emphasised that AWS delivers the scale, agility, and resilience needed for BoS’s modernisation goals.

AWS’s global cloud infrastructure supports high availability and compliance with financial data protection standards, including the Australian Prudential Regulation Authority’s (APRA) CPS 234 and CPS 230 mandates. This ensures BoS benefits from resilient uptime, operational visibility, and disaster recovery while retaining customer trust. AWS’s capabilities further allow BoS to use real-time telemetry, machine learning, and elasticity—key enablers for analytics, personalisation, and cost optimisation in digital banking. With this transition, BoS not only modernises but also opens the door to adopting advanced fintech functionalities in the future, from AI-driven chatbots to real-time fraud monitoring.

How Is Market Sentiment Around Infosys and Its Banking Suite?

Infosys stock (INFY) has shown marginal upward movement since the announcement, with institutional analysts largely supportive of the Finacle business line’s steady international expansion. While the Bank of Sydney deal may not move the revenue needle in the short term, it adds to Infosys’s pipeline of recurring SaaS revenues, a trend increasingly favoured by long-term investors for its predictability and margin resilience.

In May 2025, Infosys shares traded between $18.40 and $19.10 on the NYSE. Despite macro uncertainty in global IT services, analysts at Nomura and Jefferies have maintained a “Hold” or “Buy” rating on the stock, citing its differentiated digital portfolio, including Finacle, Cobalt, and Topaz platforms. FII flows have shown net neutrality over the past two weeks, but steady DII interest suggests institutional confidence in Infosys’s diversified service architecture. Moreover, Infosys’s cloud partnerships—spanning AWS, Google Cloud, and Microsoft Azure—continue to form the bedrock of its enterprise transformation revenues, contributing to its ~22.4% EBIT margin in the March 2025 quarter, on revenues of $5.15 billion.

How Does This Align with Regulatory and Market Shifts in Australia?

Australia’s banking sector is undergoing rapid policy-driven change, with regulatory pressure mounting on smaller banks to ensure cyber resilience, improve operational risk governance, and embrace open banking standards. The Royal Commission’s recommendations, coupled with new APRA and ASIC mandates, are pushing even non-major banks to overhaul legacy systems in favour of cloud-first, secure digital platforms.

Bank of Sydney’s digital transformation reflects this regulatory shift, positioning it to more effectively comply with real-time risk reporting, consumer data rights, and cybersecurity protocols. By deploying Finacle on AWS, BoS ensures that it remains adaptive to upcoming standards, including future changes to CDR (Consumer Data Right) and ISO 20022 messaging requirements.

What’s Next for Bank of Sydney in Its Digital Journey?

The transformation roadmap for Bank of Sydney is expected to unfold across multiple phases. Immediate priorities include stabilising the core Finacle environment, rolling out digital onboarding, and delivering a consistent omnichannel experience. Mid-term objectives may involve deploying real-time analytics, AI-powered insights for personalisation, and integrating third-party fintech products to extend service offerings.

Industry observers suggest that BoS’s successful deployment could serve as a blueprint for other regional players in Australia considering a shift to SaaS-based banking platforms. As cloud maturity improves and digital challengers continue to erode traditional market share, regional banks will increasingly view modernisation as a survival imperative rather than a strategic luxury. The Bank of Sydney-Infosys Finacle collaboration stands as a timely and strategic bet on cloud-native transformation, which could ultimately redefine the bank’s position in the Australian financial services hierarchy.