Cognizant Loses This Big Client That Will Cost Them Rs 190 Crore: What Exactly Happened?
Cognizant client Oma Savings Bank Plc (OmaSp) on Wednesday announced that the companies have mutually agreed to cancel the project and terminate the contract regarding the renewal of the core banking platform commenced in 2019.
Oma Savings Bank Plc and Cognizant Will Terminate The Contract ?
OmaSp is a growing Finnish bank and the largest savings bank in Finland based on total assets.
OmaSp focuses primarily on retail banking operations and provides its clients with a broad range of banking services both through its own balance sheet as well as by acting as an intermediary for its partners’ products.
Credit, investment, and loan insurance products are among the intermediated services. OmaSp also works in mortgage banking operations.
As part of the agreement, Cognizant will pay OmaSp a significant financial compensation, which will have a positive impact of approximately EUR 22 million on OmaSp’s profit before taxes for the financial year 2021, the company said in a filing to the stock exchange.
Impact On The Banking Services
Oma Savings Bank Plc and Cognizant have mutually agreed to drop the project and eliminate the contract regarding renewing the core banking platform commenced in 2019.
Oma Sp was one of three Finnish financial institutions selected by Cognizant as a key partner for constructing and maintaining a shared core banking infrastructure to support their digital transformation initiatives in January 2019.
“Negotiations with Cognizant have taken place in good spirits and we concluded that the termination of the cooperation agreement for the core banking project is the best solution for OmaSp. Samlink will continue as an essential IT services provider for OmaSp. The cancellation of the project will have no impact on our customers’ banking services and we will continue to develop our digital services in a determined manner,” OmaSp CEO Pasi Sydänlammi said in the statement.