technology & banking report
Transcript of 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