IT in BFSI

8/14/2019 IT in BFSI

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Banking, Financial Services and Insurance (BFSI) is anindustry name.

Banking Core Banking, Electronic payment ,Internet banking, Mobile

banking ,Information exchange

Financial Services Stock-broking, Payment gateways, Mutual funds etc.

Insurance Covers both life and non-life .

Data processing, application testing and software developmentactivities are outsourced to companies that specialize in thisdomain.


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Need FOR IT ADOPTION INBFSI SECTOR

Provide real time availability of transaction processing. Ensure security and safety of funds as well as confidential. Minimize transaction cost.

Enhance ability to conduct in depth financial analysis. Online bill payments, mobile banking as well as e-commerce.


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Evolution of IT in Banking

In early 1980s the first step towards computerization of bankswas taken.'Total Bank Automation.

In the early 1990s banks started thinking about tying-up disparate

branches together to facilitate information sharing.

Private banks hastened the adoption of technology.

Earlier banking used to be decentralized.


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Kanbay acquired Accurum, another IT firm servicing thesame segment.

Tata Consultancy Services acquired Phoenix Global Solution tostrengthen its offering for the insurance sector.

Cognizant acquired Infoplus, a Netherlands based IT servicesfirm specializing in banking and financial services.

Global Scenario


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IT in BANKING

Core Banking Internet Banking Electronic Payment Mobile Banking

Information Exchange


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CORE Banking

Core banking is a general term used to describe theservices provided by a group of networked bank branches.

Bank customers may access their funds and other simple transactions from any of the member branchoffices.

The platform where communication technology andinformation technology are merged to suit core needs of banking is known as Core Banking Solutions


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Contd

Here computer software is developed to performcore operations of banking like recording of transactions, passbook maintenance, interestcalculations on loans and deposits, customer records,

balance of payments and withdrawal. This software is installed at different branches of

bank and then interconnected by means of

communication lines


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Package Provider

Alnova Financial Solutions Accenture

Bancs TCS

Finacle Infosys

Intellect Core Polaris software Labs Ltd

Bankway Metavante

Core Banking Solutions and their providers


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Electronic bill presentment and payment Funds transfer

Investment Loan

Bank statements

:Features


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INTERNET BANKING

Internet banking is the latest technology involving useof internet to deliver banking products and services. Transactions are processed online without any

reference to the branch (anywhere banking) at any time. It is the cheapest way of providing banking services.


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MOBILE BANKING

Mobile Banking refers to provision of banking- andfinancial services with the help of mobiletelecommunication devices.

Mobile Banking Services

Account Information Payments, Deposits, Withdrawals, Transfers Investments


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ELECTRONIC PAYEMENT

It actually comprises two distinct mechanisms:

Debit-card transactions Credit-card transactions

Direct data entry transactions

Direct credit

Direct debit


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INFORMATION EXCHANGE

/ -The Internet World Wide Web is a low cost

-communication channel that support self service banking by enabling customer access to.information

Automation of standard services reduce the

.need for financial intermediaries( - ):Financial electronic data interchange F EDI

Involves the transmission of payment

,transaction data and associated remittance

,advice data from a payee to their bank


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How IT can improve bank s performance

IT reduces banks operational costs (cost effect).

It facilitates transactions among customers withinthe same network (network effect).


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IT IN FINANCIAL SERVICES

Information processing and communicationtechnologies are being used to enhance existing services,to implement new ones, and to make them available innew ways. Banks, credit unions, savings and loan associations joinnetworks of ATMs to obtain cash 24 hours a day


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HOW DOESIT AFFECT FINANCIAL SERVICES ? ?

Affordability of information processing for firms of allsize. Ability to move information quickly and accurately. Facilitating flow of information nation wide. Helped to overcome some limitations, such as, restrictionson inter-state banking, imposed by law.


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!!SAFETY CONCERN

The online transaction fraudulent use may not bediscovered until a statement is received. System failures can threaten the existence of financialinstitutions. Service providers hesitant to report incidents of theftsdue to their fear of loosing customer confidence or revealing their vulnerabilities.


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POPULAR SOFTWARES USED

GAS (Generalized Audit Software) CDC (Customer Driven Company) Oracle Financial Services Software IBM Rationale Policy Tester Software


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Characteristics of Insurance

Sharing of risk Co-operative device Evaluation of risk Payment on happening of special event The amount of payment depends on the nature of losses incurred


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:BENEFITS

It is superior to traditional saving machine It encourages saving and forces thrift It provides easy settlement and protection againstcreditors It can be enchased and facilities borrowing

Tax relief


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Technology in INSURANCE sector

GIS Geographic Information Systems


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Applications Of IT in INSURANCE sector

Online Payments GIS Share Price listing


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Conclusion

Documents

IT in BFSI