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IDRBT Banking Technology Excellence Awards 2011 Ashvin Parekh 3 August 2012.

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Presentation on theme: "IDRBT Banking Technology Excellence Awards 2011 Ashvin Parekh 3 August 2012."— Presentation transcript:

1 IDRBT Banking Technology Excellence Awards 2011 Ashvin Parekh 3 August 2012

2 Page 2IDRBT Banking Technology Excellence Awards 2011 Impressions on the year Overview IT investments Increase in overall IT spend in FY12 compared to FY11 Small banks have increased IT spending Operational costs are stabilizing IT initiatives during the year Most banks have not nominated substantial or new initiatives Areas beyond core banking are now being focused on However most initiatives are in early stages with results not yet visible Need to increase initiatives in areas of operational effectiveness and BPR Quality of nominations Good improvement in nominations Comprehensive coverage of initiatives Still some deficiencies in data submitted by some banks Industry would now move towards effective utilization of IT assets

3 Page 3IDRBT Banking Technology Excellence Awards 2011 Banking technology Beyond core banking CRM & BI Operations Social Media Integrator Electronic payments IT Infrastructure Management Core Banking System Complete view of customer relationships Customer lifecycle management BI should be based on transaction and behaviour data to customize offerings Effectiveness and efficiency of IT systems and processes Building human capital Greater use of technology for management Standardization Increased coverage of debit cards Initiatives in multiple areas but yet to see visible results BCP & DR Server virtualization Green initiatives Social profiles of customers Social groups for feedback and ideas Dovetail with CRM & BI for product and service customization

4 Page 4IDRBT Banking Technology Excellence Awards 2011 Response summary CategoriesResponses Use of Technology for Financial Inclusion22 Mobile Banking & Electronic Payment Systems26 Customer Relationship Management & Business Intelligence Initiatives 14 IT Implementation and Management26 IT for Operational Effectiveness25 Managing IT Risk25 Total138 Response Total nominations – 138 Total participating banks – 30 Good response in all award categories Deposit based segmentation Large banks – 21 Small banks – 9

5 Page 5IDRBT Banking Technology Excellence Awards 2010 Streamlined evaluation process IDRBT and Ernst & Young Guidance and Oversight – Eminent Jury of Industry Leaders and Academicians Parameters Segregated banks based on deposit size Defined evaluation parameters for each category to assist the jury members in objective evaluation of the response Responses Nomination form designed to elicit a mix of quantitative as well as qualitative response for evaluation Increased transparency award nomination form designed to share the evaluation criteria with the participating banks

6 Page 6IDRBT Banking Technology Excellence Awards 2010 Industry trends and challenges (1/3) Growth of 36% in no-frill accounts Active accounts low at 15% Strong growth in BCs (86%) and SHG linkage (28%) Avg balance o/s in no-frill a/c – Rs. 259 cr, growth of 240% Small banks have also stepped up efforts Substantial investment in IT infra and resources Financial Inclusion Mobile banking Mostly used for push/pull account information Funds transfer yet to get traction Can dove-tail with FI especially for remittances Electronic payments Has grown rapidly over the past couple of years Avg daily value of debit card payments – Rs. 491 cr Avg daily value of credit card payments – Rs. 3 cr Avg. daily value of internet banking payments – Rs. 393 cr Mobile Banking and electronic payments

7 Page 7IDRBT Banking Technology Excellence Awards 2010 Industry trends and challenges (2/3) Largely focused on middle-office rather than front-office initiatives Largely focused on data warehousing rather than business intelligence Very few banks have a unified view of the customer Very little cross-sales and cross-channel integration CRM & BI Initiatives Increasing alignment of IT with business objectives Robust DR&BCP infrastructures implemented Move towards energy management and use of green technology Strong policies and procedures for IT management IT Implementation & Management Multiple initiatives in workflow automation and BPR efforts to improve internal process efficiency Good progress towards RBIs automated data flow targets Good progress on automating internal systems IT for Operational Effectiveness

8 Page 8IDRBT Banking Technology Excellence Awards 2010 Industry trends and challenges (3/3) Robust policies and procedures to manage IT Risks Comprehensive security policies with physical and logical access controls Increased focus on creating internal awareness and protecting customer information Managing IT Risk

9 Page 9IDRBT Banking Technology Excellence Awards 2010 Way forward – Emerging trends Financial inclusion initiatives gathering momentum with strong growth in no-frill accounts opened and balance outstanding Increased viability of FI initiatives Mobile banking and remittances set to grow with adoption of IMPS CRM & BI initiatives are still not effective enough for most banks, long way to go before BI solutions become effective Retail payments happening mostly through debit cards and internet banking Paper based payments still constitute a large proportion of payments IT infrastructure and risk management and security to gain importance and real-time alerts and management systems will become crucial

10 Thank you

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