20880010 Technology Banking Report

8/12/2019 20880010 Technology Banking Report

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echnology and Bankin

By

Swati PanwarMBA II Sem

College of Engineering and

Technology


2/20

gy

Technology and Banking

The Quintessence Nature of Banking harmonizes

closely with Technology

Banking

Technology

InformationStorage

ProcessingTransmission

Tasks Commonto Both


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Pervasive Branch

Network

Global

Operations

Comple CreditCalc!lations

Innovative "isk#anagement

Banking

and

Techn

ology

#ass Transaction$ Items Processing


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Benefits of Technology

Increased operational efficiency,profitability & productivity

Superior customer service Multi-channel, real-time transaction

processing

Better cross-selling ability Improved management and

accountability

Efficient !" and risk management


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%oc!s aspects of CommercialBanking now are&

CoreBanking 'CBS(

)T#s

Card#anage

ment)ny BranchBanking

*oc!ment#anagem

ent"isk

#anagement

"eso!rce#anagem

ent

#IS $Intranet

C"#

CorporateNetwork

+lectronic

Banking

POSTerminalsand Cashdispenser

B)N,-S B.SIN+SS

B)N,-S B.SIN+SS

")IS

IN

/O)NS

$#ISC0

S+"1IC+S


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nanc a ec no ogyInfrastr!ct!re

*ata Center to host servers for&

CBS )T#2%inancial Switch Internet Banking*32*#2C"#2#IS etc0

Back4office )pplication +4mail Servers5 Internet Server5

+nterprise4wide Network $ Networking+6!ipment

Sec!rity SystemsSystems at Branches2"O27O2CO *epts0

S!pporting Systems

*isaster "ecovery Site $ B!siness

Contin!ity


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Technology A Differentiator

Technology is indeed a differentiator not

only in terms of competitive

advantage, but also in terms ofadministrative and back-end

processes#$

But#due to rapid technologydeployment in Indian banking sector,

the %haves and %have-nots gap is all

set to narro' (uickly$


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How Long a Differentiator?

Then#$can technology be enough of adifferentiator)

"ny ne' technology or technology-enabledprocess can act as a differentiator or acompetitive edge for some level of time$

"fter that time, the technology still has to beadopted as a %necessity and as a cost of doing

businessThanks to shortening technology life cycles, it

'ould be short sighted to assume thattechnology 'ould be a long termdifferentiator#


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Elements of Technology as a

Differentiator

Scalability &

*le+ibility

Efficient

utilisation,mgmt

!rocessenabling

tilityto

customer

Suppo

rtSkills

For Long-Term Differentiation


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Issues with ustomers

ot only employees, there areproblems for customers too'hen a ne' technology

arrives#

The maor challenges . /omfort levels

Security and trust issues

/onvenience factor

0etting rid of myths

Migration from e+isting to ne'systems

/hanging the habits


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!"# Terminal and ash Dis$enser

!1STerminal

/onnectedto /ash

dispenser


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+lectronicBanking

)T#

8eadOffice

BranchBanking

Branch 9

Branch :Branch ;

Branch

Branch n


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Technology Ac%uisition

Inappropriate technology purchases can be

the root of all problems# The Bank management has to2

0ive thought to the utili3ation rate

"void %knee-erk reactions 4%they have done it#I should also do it5

Be impartial in technology decisions 4%I like thattechnology#I 'ant it5

nderstand 'here the solution 'ill fit "6 'hereit 'on7t8

"ssess the strengths & 'eakness of solution

"nd seek ans'er to %are 'e ready for it)


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Technology%orS!stained

*ifferentiation

0oal definitionIntegratingbusiness &technologygoalsSolutionfeatures9endorselection

Businessprocess re-engineering/hangemanagement

Efficientutilisation/ustomer utilityTechnologyManagementSupportfunctionsMaintenanceBack-ups and

6isaster:ecoveryScalability &fle+ibility;earning &

evolution

*ifferentiation is attained notachieved ?!st thro!gh technology5 it

is gained in the way the technology isselected5 implemented and !tilised


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&egulation and #u$er'ision

The hallengeChallenge of Technology:

New markets, products, serices, deliery channels

!pened up a market for "risks# deriaties

Challenge of financing tech firms $ %T innoation

all hae implications for the sta&ility of &anks and of theeconomy

The !pportunity

'egulators hae new tools

(ocus of all recent financial sector reforms

)mergence of non*intrusie, focused superision

+ith a iew to preent frauds and distur&ances to

financial sta&ility


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Technology and Banking #u$er'ision

T8+ "BI "+SPONS+

1ffsite Supervision & Monitoring1SM1S

/1SM1S 4on banking *inancial /ompanies

Documents

20880010 Technology Banking Report