technology & banking report

8/14/2019 technology & banking report

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echnology and Bankin

By

Swati PanwarMBA II Sem

College of Engineering and

Technology


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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 O

perations

Complex CreditCalculations

Innovative RiskManagement

Banking

and

Techn

ology

Mass 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 NPA and risk management


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nanc a ec no ogyInfrastructure

Data Center to host servers for:

CBS ATM/Financial Switch Internet BankingDW/DM/CRM/MIS etc.

Back-office Application E-mail Servers, Internet Server,

Enterprise-wide Network & NetworkingEquipment

Security SystemsSystems at Branches/RO/ZO/CO Depts.

Supporting Systems

Disaster Recovery Site & Business

Continuity


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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.

Butdue to rapid technologydeployment in Indian banking sector,

the haves and have-nots gap is all

set to narrow quickly.


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How Long a Differentiator?

Then.can technology be enough of adifferentiator?

Any new technology or technology-enabledprocess can act as a differentiator or acompetitive edge for some level of time.

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

businessThanks to shortening technology life cycles, it

would be short sighted to assume thattechnology would be a long termdifferentiator


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Issues with Customers

Not only employees, there areproblems for customers toowhen a new technology

arrives

The major challenges Comfort levels

Security and trust issues

Convenience factor

Getting rid of myths

Migration from existing to newsystems

Changing the habits


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ElectronicBanking

ATM

HeadOffice

BranchBanking

Branch 1

Branch 2Branch 3

Branch 4

Branch 5

Branch 6

Branch n


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Technology Acquisition

Inappropriate technology purchases can be

the root of all problems The Bank management has to:

Give thought to the utilization rate

Avoid knee-jerk reactions (they have done itI should also do it)

Be impartial in technology decisions (I like thattechnologyI want it)

Understand where the solution will fit AND whereit wont!

Assess the strengths & weakness of solution

And seek answer to are we ready for it?


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TechnologyForSustained

Differentiation

Goal definitionIntegratingbusiness &technologygoalsSolutionfeaturesVendorselection

Businessprocess re-engineeringChangemanagement

EfficientutilisationCustomer utilityTechnologyManagementSupportfunctionsMaintenanceBack-ups and

DisasterRecoveryScalability &flexibilityLearning &

evolution

Differentiation is attained notachieved just through technology, it

is gained in the way the technology isselected, implemented and utilised


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Regulation and Supervision

The ChallengeChallenge of Technology:

New markets, products, services, delivery channels

Opened up a market for risks derivatives

Challenge of financing tech firms & IT innovation

all have implications for the stability of banks and of theeconomy

The Opportunity

Regulators have new tools

Focus of all recent financial sector reforms

Emergence of non-intrusive, focused supervision

With a view to prevent frauds and disturbances to

financial stability


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Technology and Banking Supervision

THE RBI RESPONSE

Offsite Supervision & MonitoringOSMOS

COSMOS (Non banking Financial Companies /Development Financial Institutions)UBD Soft

Credit Information Bureau (A joint venturebetween Housing Development FinanceCorporation Ltd., State Bank of India, TransUnion International Inc. & Dun & BradstreetInformation Services India Pvt. Ltd.)


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Currency Management and Technology

Opportunities Galore

Currency Management - a formidable task in Indiagiven the geographical size, the volume and value of notes and coins in

circulation, preference for cash and currency handling practices

...but technology offers immense opportunities to improveperformance

RBIs The Clean Note Policy (1999)

Establishment of 2 state of the art currency pressesTechnology driven anti counterfeit measures

48 fully automated Currency Verification & Processing Systems

21 Shredding and Briquetting Machines


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RBI and Customer Service(1)

Dissemination of informationThe RBI websiteMultiple Delivery Channels

Coin & Note DispensingMachines

For the general publicInteractive Voice ResponseSystem

For banks and financialinstitutions

Web serverFor government customers

On the anvil.A secured web serverSFMS/email based

communication with


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RBI and Customer Service...(2)

Improvements in payment andsettlement systems

MICR ClearingEnabling faster clearing of

chequesCheque Truncation & E-Cheques

On the drawing boardECS/EFT

Enabling T+2 settlement of

our equities marketNational EFTEnabling T+0 settlement ofall customer funds transfertransactions


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The future will be notbe more of the same we need to beready..

Thank You

Documents

technology & banking report