1. ~ Core Banking ~ Issues & Challenges
Presentation by
Mankikar Ravikiran
CISA, CGEIT, CeISB, BS7799LA
Chief General Manager
Information Technology Department
Shamrao Vithal Co-operative Bank Ltd

2. Technology Trends
& Challenges
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3. Technology IT is critical to business IT is strategic to business
IT requires huge investments
Expectations and reality do not match
The ROI is reflected mostly in intangible terms
Business growth
Compliance to Customer needs
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4. Bank Procedures & Practices
Information Technology
… The New Paradigm
Bank Procedures & Practices
Business
Needs
Bank Policies
Customer
Needs
Business
Strategy
Operations
Policies
Technology
Needs
Risk Management
Security
Policies
Information Technology
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5. Areas of Concern Coverage of Needs Uniformity of Needs
Customisation Overkill
Legacy Fulfillment
Scalability
Storage
Compliance
Internal
Regulatory
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6. Areas of Concern Multiple Access Points Multiple Systems
Uniformity in implementation
Non-Inter Operability between systems
Fast Pace of Change in Technology
Difficult to Frequently Change systems
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7. Areas of Concern Capacity Planning & Management
Cost of Acquisition/Maintenance/Refresh
Appropriate Skill Set
Acquisition/Retention/Attrition
Training & Skill Set Upgradation
Budget & Cost Control
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8. Areas of Concern Security Practices Business Continuity Practices
Data replication/Data Transfer Services/Log shipping
Disaster Recovery Plan
IT Operations Practices
Change Management Practices
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9. Areas of Concern In-House Data Centre vis-à-vis Hosted Data Centre
Case for Virtualisation
Case for Cloud Computing (Public – Private – Hybrid)
Case for Managed Data Centre Management Services
Case for Managed Security Management Services
Preventive Maintenance
Acceptable Downtime
Scalabilty
Upgradation
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10. Areas of Concern At how many UCBs such hygiene is maintained ?
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11. Points that matter Total Cost of Ownership
Cost of Hardware – Servers/Desktops/Infra Equip
Cost of Software – System/Application/Upgrade/CAL
Cost of Infrastructure – UPS/Gensets/AirCon/FM200
Cost of Security – IPS/Firewall/AV/UTM
Cost of Networking – Primary & Secondary
Cost of Development and Implementation (if any)
Cost of Maintenance
Cost of Upscaling
Cost of Redundancy/BCP
Cost of Additional Delivery Channels
Cost of Loss Of Opportunity
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12. Need for Good Technology
Severe Competition from Peer Level Banks and from Banks in the Public Sector & Private Sector
Customer Awareness
Mergers & Acquisitions
Strategic Alliances
Use of Technology for tapping Business Opportunities
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13. Need for Good Technology
Software
Are the process functions required by the Bank covered by the software
To what extent the Bank has to continue which manual processes
Will the software handle the increase in business
Can the software upscale
Can the software migrate to new technology platforms
Cost of software
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14. Need for Good Technology
Software
Is the software easy to customise
Is the software easy to maintain
How are enhancements handled
Is the source code available
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15. Need for Good Technology
Hardware
Is the software hardware platform independent
What are the hardware resources required
Does the vendor have local support
How are the changing scenarios in the industry managed
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16. Need for Good Technology
Infrastructure
Availability of Power
Availability of Network Coverage
Availability of Multiple Service Providers
Capability of Service Providers (hardware/software/network) to reach locations especially in remote areas
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17. Need for Good Technology
Vendor
What are the vendor antecedents
How long is the vendor in the market
What is the failure rate
What is the staff attrition rate
How is the support managed
Is the vendor geared for constant evolution in the industry
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18. Core Banking Branch Banking Products Head Office Accounting HRMS Share
Fixed Asset Accounting
Remittances & Clearing
Recovery (Lawad)
Investment
ALM
AML/KYC
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19. Core Banking New Delivery Channels/Payment Systems Mobile Banking
RTGS/NEFT
NACH
CTS-CHI
Internet Banking
Payment Gateway
eKYC
ATM
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20. Core Banking
Banking solution that integrates all the banking functionalities and facilitates on-line access to any of the delivery channels with a singular customer centric view.
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21. Core Banking Centralised account opening
Is centralisation of technology functions as relevant as the centralisation of business functions to the implementation of core banking
Centralised account opening
Centralised cheque book issuance
Centralised statement of account printing
Centralised clearing operations
Centralised deposits acceptance
Micro finance management
Centralised MIS & Reporting
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22. Shamrao Vithal Co-operative Bank Ltd
Thank You
Mankikar Ravikiran
Chief General Manager
Shamrao Vithal Co-operative Bank Ltd
(M) (T)
11/29/2018