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Information Technology Trend in Development Banks
Alberto Rosati – Latin America Banking Business Development [email protected]
Prelude
“ The dramatic events ushering in the new century—from globalization and a final, major wave of consolidation to regulatory changes and technology breakthroughs—are compelling development banks[DB] to turn their focus toward efficiency and country relationship development.”*
2*Goliath Industry and Market Reports on Bank Systems and Technology
Is real IT transformation likely to take place?
Three converging forces appear to make it unavoidable:
DBs spreading across geographies Financial transactions are commoditized Regulatory demands are unprecedented.
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Drivers to IT transformation
The next 10 years will be defined by:
Accelerated expansion Process efficiency Greater Country sophistication More intense regulatory demands Opening up markets in existing and new member countries
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Challenges Faced By Development Banks
DBs require real time system control on their operations
DBs are unable to effectively track the development results
The credibility of the financial reports becomes questionable
Systematic Development Bank-wide management of data
Risk measurement and management is becoming increasingly complex
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Advantage IT
An effective IT Solution provide:
Operational effectiveness, internal efficiency
Collaborative tools to help create, cultivate, and disseminate knowledge.
Accessibility to data, information, and knowledge.
The ability to easily search across and retrieve relevant information
A project management system based on complete project lifecycle
A resource management system which improve linkages6
Plan for 21st Century IT TransformationFocus on improving the internal efficiency and Country centricity
Go horizontal…Make the transition from banking operations in silos to an integrated
organization.
Balance objectives in IT strategy…Balance the use of technology resources to support revenue growth
Focus on governance… IT to align with business strategy to improve returns on IT spending.Strategies addressing enterprise architecture, process automation and
member analytics
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Need of the Hour• The information systems and technology infrastructure must be
improved to:
support the results-based agenda and Align the systems with the new organizational structure.
• And to support DB’s three major information systems initiatives: Knowledge management Project processing and portfolio management Program resource management
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Latest Facts:• World Bank IT strategy took the approach of building up integrated systems for sharing of information with member countries• IFC has provided the user interfaces to access existing information, while gradually replacing the older mainframe systems• IDB has developed facilities using portal technology to provide access to many disparate systems .• IADB is planning for implementation of Integrated IT Roadmap to synchronizes their ORG structure• ADB’s initial portal applications are designed to provide access to knowledge management applications Source- ADB’s information Technology Strategy and Capital Expenditure Requirements: 2004–2009 and IADB website
Identify the IT Role…
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IT enhances the capacity to review project processing and portfolio performance
IT monitors performance against Millennium Development Goals
IT facilitate tracking of activities and investments under development Initiatives
IT systems provide the tools to report on project performance at each stage
IT supports improved planning, management, and reporting on resource management
IT supports documentation on study reports for evaluation and record lessons learned
Hot Solutions for DBs
A comprehensive solution should synchronize with business operations. Some of the latest solutions are:
Lending Solutions with an eye and ear to the ground
Innovative Knowledge Management Solution
A comprehensive IFRS solution
An effective development outcome tracking system
Creation of Central Repository -Operational Data Store(ODS)
Setting up of an extension of DB’s IT Department in a cost effective professional atmosphere-Offshore Development Centers(ODC)
10Source-IFC Capital Budget 2008
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Financial Database
Controller’sData
WarehouseLoan Database
Other SystemsLoanKiosk
LAS WEB, LTS, Loan System
Loan Data Warehouse
Loan Database
Client ConnectionLoan WEB, Loan
Tracking System,
LoanAdministration System [LAS]
Loan Administration Database
Integrated Loan Administration Platform
e-Loan System
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IdentifyKnowledge
Discovery ToolsData Mining
Test Retrieval/Mining
Create Thinking Aids
Conceptual Mapping
Diffuse/UseDecision Support
GroupwareVideo
Conferencing
Knowledge Database
Document Depositories
(Data Warehouse)
Collect/CodifyInformation
Feeds Intelligent Agents
Infrastructure: Networks-Internet ; Intranet
Knowledge Management(KM)
Latest Facts:ADB A KM-framework was created in 2002.In June 2004 IT strategy was implemented.AFDBThe Bank’s knowledge management capabilities have been upgraded through the introduction of an Integrated Knowledge Management System via intranet and internet sites.
Source-Knowledge Management for Development Journal, Vol 1, No 2 (2005) and AfDB Annual Report 2005
ODS Overview
ODS is a central repository for corporate-wide data sharing
Data from transaction systems is loaded in the ODS
Stores historic data from transaction systems
Provides view for other systems for their central reference
ODS-design establish an efficient mechanism to store and retrieve valuable business information.
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Advantage ODC
Infrastructure, Security as per client’s Office Standards
Savings in capital expenditure
Retention of Knowledge - Business and Processes
Accountability for Productivity and Quality of Deliverables
Resources 100% dedicated to Program at a blended rate
ODC operating in a different time zone speed up development time
Flexible Pricing model (T&M, Fixed Price, Hybrid)
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Takeaways…• Information on how IT mitigate DB’s business challenges
• The universal high level IT roadmap
• Information on comprehensive IT Strategy
• Sharing of IT experience in developing solutions for Development Banks
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Satyam in Development Banks
