Why Did Khan Bank Select TCS for Its Core Banking Transformation in 2025?
Tata Consultancy Services has announced a deepened strategic partnership with Khan Bank, one of Mongolia’s most prominent financial institutions, to modernize and transform its core banking operations. The agreement will see TCS deploying its flagship TCS BaNCS Global Banking Platform, which is designed to deliver an advanced, AI-integrated digital core banking experience. The initiative is intended to future-proof Khan Bank’s operations, enhance customer service, and accelerate innovation across digital channels.
Khan Bank, which serves over 82% of Mongolia’s population through a vast branch network of 548 locations, has relied on TCS BaNCS for nearly 25 years. This long-standing partnership enters a new phase with a digital overhaul that places automation, artificial intelligence, and operational agility at its center.
With the new platform, the Bank plans to streamline key functions such as Customer Information File (CIF) management, trade finance, treasury, international payments, loan and deposit management, and risk analysis. The upgraded TCS BaNCS deployment will also consolidate treasury operations and enable real-time monitoring, giving Khan Bank new agility in decision-making, compliance, and customer personalization.
What Are the Key Features of the TCS BaNCS Platform Driving This Digital Overhaul?
TCS BaNCS is a next-generation, digital-first core banking solution built for flexibility, resilience, and scalability. The platform’s modular, API-based architecture enables financial institutions to migrate away from legacy systems, lower their cost of operations, and bring new services to market faster. Importantly for Khan Bank, the BaNCS platform supports ISO 20022-compliant payments, as well as SWIFT GPI and SWIFT Go, ensuring seamless global financial interactions.
By deploying containerized components, TCS BaNCS helps streamline data streaming and real-time transaction processing—an essential capability for high-volume retail and institutional banking operations. This design also opens the door for AI and machine learning integration, allowing for predictive analytics, customer segmentation, and intelligent automation in back-office functions.
In the Mongolian context, where rural access to banking remains a challenge, these digital tools will play a crucial role in extending reliable services to underserved populations and fulfilling the bank’s pure digital strategy.
How Will This Strategic Technology Partnership Advance AI Adoption in Mongolian Banking?
A key differentiator in this partnership is the inclusion of AI/ML-driven capabilities as part of the TCS BaNCS solution stack. As Mongolian banks compete in a rapidly digitizing financial ecosystem, Khan Bank aims to transition beyond core banking modernization into intelligent operations. This means deploying AI to analyze transaction data, streamline fraud detection, and personalize customer experiences at scale.
Khan Bank’s CEO, Munkhtuya R., was quoted as saying the collaboration will allow the bank to “explore initiatives in the space of AI” and position itself as a digital-first market leader. With rising demand for banking services that are intuitive, responsive, and mobile-first, integrating AI is no longer optional but strategic. TCS BaNCS’ readiness for AI acceleration directly supports this ambition.
How Has the TCS–Khan Bank Relationship Evolved Over the Last Two Decades?
The alliance between Tata Consultancy Services and Khan Bank dates back to 2001, reflecting one of the longest-standing international fintech partnerships in the region. Over the years, Khan Bank has consistently leaned on TCS BaNCS for operational support and platform stability, especially as it expanded to cover nearly 3 million customers.
This history has fostered deep institutional trust. Now, with the digital economy reshaping customer expectations, Khan Bank is doubling down on TCS’ expertise in deploying large-scale core banking transformations. TCS’ global experience includes projects across Asia, Africa, Europe, and the Americas, enabling it to tailor solutions for diverse regulatory, infrastructure, and customer maturity levels.
Venkateshwaran Srinivasan, Global Head of Financial Solutions at TCS, emphasized that the new project will allow Khan Bank to “gain from TCS’ global learnings” while “sustaining market leadership in the country.”
How Will the Project Impact the Broader Banking Landscape in Mongolia?
Mongolia’s banking sector, though dominated by a handful of players, is under increasing pressure to innovate. As the country digitizes its economy and pushes toward financial inclusion, banks are being challenged to offer seamless digital services in remote geographies. The Khan Bank–TCS alliance serves as a possible model for digitally mature core banking infrastructure in emerging markets.
The TCS BaNCS implementation will also help future-proof Khan Bank’s infrastructure by aligning with global banking standards and enabling interoperability with international ecosystems. As foreign investment interest in Mongolia grows, banks like Khan Bank will need to match the operational agility and compliance frameworks expected by international stakeholders.
This transformation could also drive peer institutions to reassess their own digital readiness and explore partnerships for cloud transformation, core upgrades, and AI deployment.
What Is the Broader Market Sentiment Around TCS Following This Announcement?
TCS stock (BSE: 532540, NSE: TCS) remains a key bellwether for India’s IT services industry. While this Khan Bank partnership may not immediately move the needle in terms of quarterly revenue impact, it is being viewed as a strategic win showcasing TCS’ domain leadership in core banking. Investors see it as validation of the enduring value proposition of the BaNCS platform, especially as legacy systems globally prepare for cloud-native, API-led transitions.
The banking and financial services vertical continues to be TCS’ top contributor by revenue. Analysts covering the stock remain positive on its core banking deals pipeline, with growing interest from Tier 2 and Tier 3 banks in emerging markets. Institutional investor sentiment is stable, with buy ratings concentrated on long-term margin resilience driven by IP-led products like BaNCS.
While recent quarterly performance saw moderate revenue growth, strategic wins like this deepen long-term client engagement, support annuity revenue streams, and reinforce platform stickiness.
How Does TCS BaNCS Compare With Competing Core Banking Platforms in 2025?
TCS BaNCS faces competition from major global core banking providers such as Temenos, Infosys Finacle, Oracle FLEXCUBE, and Thought Machine. However, BaNCS is recognized for its modular architecture, strong presence in emerging markets, and full-spectrum support—from retail to treasury and international payments.
Where BaNCS stands out is in its AI readiness, ISO 20022 compatibility, and flexibility for on-premise and cloud-native deployments. For a bank like Khan Bank, which needs full regulatory alignment and rural operational continuity, these strengths allow for a balance between innovation and infrastructural reliability.
As the industry moves toward composable banking, TCS’ emphasis on API-first development and seamless integration with third-party fintech ecosystems positions BaNCS as a future-forward solution for progressive financial institutions.
TCS’ strengthened alliance with Khan Bank is more than a simple software deployment—it represents a leap in Mongolia’s digital banking maturity. By combining two decades of trust with an AI-enhanced, cloud-ready banking platform, the transformation underscores TCS’ role as a global enabler of inclusive, intelligent financial services.
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