The financial services industry in India is undergoing a paradigm shift largely due to deregulation and globalisation of the Indian economy. According to the Central Statistical Organisation, net domestic size of the financial services market in India is of the order of Rs 163,482 crore and is projected to grow at 10 per cent per annum.

Using innovative business solutions, players in the financial markets are looking at scaling their operations and simultaneously reducing their costs. Little wonder then that businessmen around the world, armed with innovative products, are looking at new opportunities in the Indian financial sector and setting up base here to take advantage of the growing market. One such latest entrant is Hyderabad-based Electronic Financial Network (EFN), the Indian arm of the US-based FNSTAR Inc.

Colarado-based FNSTAR Inc., promoted by four persons of Indian origin, is a business- oriented technology solutions provider catering exclusively to the global financial services industry. Set up last year its financial solutions enable convergence of multiple financial instruments in a multi-exchange, multi-currency and multi-market environment.

Led by its flagship product FNSTAR IFMS, the company is projecting a significant turnover growth to $20 million in 2003. Based on straight through processing platform or STP, the product helps in integrating the front-office, middle-office and back-office functions of a financial services company and also supports multiple interaction channels. It also has several modules such as FN Broker, FN – back office service bureau, FN CRM, FN Portal and FN connect.

The company has already launched the FN Broker component in India and has got an encouraging response from the market, Ram Puppala chief executive officer Electronic Financial Network told domain-b. This, according to him, was because the product offers two critical services - browser based comprehensive investment cum broking solution and a 360-degree view of investors' investment life cycle.

He said that the product also enabled brokers/intermediaries to sell a host of financial services and led to convergence of financial instruments and delivery channels. He is hoping to launch other components of FNSTAR too in the next two to three months followed by expansion of the entire operations into the Middle East.

The company is selling the product in the form of an ASP model, charging Rs 15 lakh as upfront fee and then 0.01 per cent as charges for every transaction conducted, subject to a minimum fee.

Mr Puppala said, "The financial services industry is changing very fast. Banks are no more banks and brokers are no more brokers. Our product helps users manage voluminous transactions across products, currencies and exchanges through an electronic platform, helps enhance customer service, lowers operational cost and generates additional revenue streams."

The company is currently targeting financial intermediaries, banks, asset management companies, depository participants, financial advisors, content providers and vertical portals.