IT MANAGEMENT STRATEGY

IT and Business Strategy Alignment in Financial Services

-- Panemangalore Srinivas Shenoy

An enterprise needs a strategic business model to sustain, strengthen and grow in the industry in which it operates. Fortune 500 organizations find themselves at the top end of the spectrum due to their ability to draw and implement their business strategy in congruence with the economic activity; market trends and customer needs.To evolve such a business strategy the enterprise has to study the macro fundamentals of the economy, the environment in which it operates, master the dynamics of the marketplace and excel at building the competencies that will realize that strategy.

© 2004 IUP. All Rights Reserved.

IT MANAGEMENT STRATEGY

Leading Issues in Banking Technology

-- RV Shastri

Many Indian banks are adopting the information technology not merely as a frill, but as a dire need. It is helping the banks in many core and diversified functions. Technology is key business enabler in six critical areas of banks. These are augmenting profit pool, operational efficiency, customer management, product innovation, distribution and reach, and efficient payment and settlement system. For the success of any IT program, integration of IT and business strategy is crucial factor.

© 2004 IUP. All Rights Reserved.

IT MANAGEMENT STRATEGY

IT in Banks: Indian Scenario

-- Katuri Nageswara Rao

Indian banking has embraced automation in a big way. From inter-branch reconciliation and balancing of books, automation has been directed towards customer-centric products and services. ATMs, Internet and tele-banking have ushered in the era of convenience banking. Banks now focus on integration of IT strategy and business strategy for enhancing efficiency and productivity. Risk management through IT is another area of strategy. In future, the real growth drivers for cost-cutting would be ATMs, Internet banking, mobile banking, kiosks etc. Truly there could be 24 x 7 basis provision of services. There could also be strategic alliances and partnerships amongst banks.

© 2004 IUP. All Rights Reserved.

IT MANAGEMENT STRATEGY

Technology in Banks: Some Thoughts for the Future

-- Dharmalingam Venugopal

Post nationalization of banks, the banking activities have increased by leaps and bounds. To serve their customers efficiently, banks are increasingly adopting the technology. ATMs, Internet banking, mobile banking, phone banking are some of the examples. To remain competitive banks are adopting core banking system, which provides interlinkage between branches. While formulating a technology policy, banks are taking into account the vision of five to ten years and technology which is compatible to Basel II norms.

© 2004 IUP. All Rights Reserved.

IT MANAGEMENT STRATEGY

Electronic Record Management

-- Charulatha S Kar and R Rajagopalan

Recording the business transaction in the Electronic form is fast emerging as an alternative to physical records due to its advantages in terms of convenience and functionality over paper-based records. But it has many challenges like ensuring continued access, preservation and management of records, which are fast catching the attention of archivists the world over. While developing a policy on electronic records, a bank should take into account generic principles.

© 2004 IUP. All Rights Reserved.

IT MANAGEMENT STRATEGY

Leveraging Retail Banking Brands Using Data Warehousing

-- Subhojit Banerjee and Reena Ray

Data warehousing is an emerging technique of database management, which can act as a strategic differentiator for data intensive sectors like retail banking. The article explains the concept of data warehousing and points out the areas in retail banking which can be most benefitted from it. The article also proposes data warehouse architecture to support retail banking activity. Finally, critical issues related to management of the data warehouse which will affect the usefulness and functioning of the bank have been discussed. The article concludes with a futuristic outlook of data warehousing.

© 2004 IUP. All Rights Reserved.

IT MANAGEMENT STRATEGY

Prudent Technology Investment and Its Competitive Lead in the Banking Sector

-- Anu Anna Thomas

Technology has changed the face of banking sector. It is helping the banks to ease cost pressure, improve quality, and be competitive. While the major objective of IT investment in banks is to offer services to customers which bring convenience and value, to get greater benefit, IT strategy should be aligned with business plan. Prudent technology investment decision is one which brings positive return on technology investment. The major IT competitive edges in banks are improved distribution, enhanced operational efficiency, better management of risks and efficient payment system.

© 2004 IUP. All Rights Reserved.

RISK MANAGEMENT

Technology and Risk Management

-- SS Kohli

Technology helps in enhancing the customer convenience and innovation of products and services offered by a bank. While it mitigates some risk, it induces some new risks. While advantages outweigh the risks due to technology implementation, it should be managed properly to benefit the customers and the organization.

© 2004 IUP. All Rights Reserved.

RISK MANAGEMENT

Information Technology Risk in Banking _ Management and Measurement

-- Vijaysree

Information Technology (IT) is not merely a technical function, but a management process which needs to be managed effectively. To measure the IT risk in banks there are various methodologies available. All of them at large follow the same primary steps like threat and vulnerability identification, probability identification, impact analysis etc. For technology risk assessment, American Banker Association has also recommended various resources.

© 2004 IUP. All Rights Reserved.

RISK MANAGEMENT

E-Banking Risk Management Strategies

-- Vinod Sharma

E-Banking (Electronic Banking) has characterstistics which may increase the overall risk profile of an institution. It happens because there are large numbers of threats and vulnerabilities in publicly accessible networks. A bank should prepare an appropriate e-banking strategy which reduces the vulnerabilities and, at the same time, increase the wealth of a bank.

© 2004 IUP. All Rights Reserved.

TECHNOLOGY & FRAUDS

ATM Crimes and Frauds

-- Pramod Gupta

ATM crimes and frauds are rising throughout the world. ATM industry and many other organizations are fighting with them in many ways like by issuing security tips, making ATMs more innovative etc. In India, where the use of ATMs is growing by exponentially, banks have to take benefit from international experiences and safeguard their customers from frauds.

© 2004 IUP. All Rights Reserved.

TECHNOLOGY & FRAUDS

Internet Banking and Frauds

-- Yash Paul Pahuja

Fraudsters are using innovative ways like Web and mail spoofing, attacking the bank's server etc. to break the security walls and commit fraud. There is a need for arrangements which help presence of integrity, confidentiality and authorization of information.

© 2004 IUP. All Rights Reserved.

TECHNOLOGY & FRAUDS

Cyber Money Laundering

-- Colonel RS Prasad

Liberalization of economies, globalization and Internet have collectively converted the world into a global village. The developments have created many opportunities but indirectly created many risks also. Money laundering, particularly Cyber money laundering, is on the rise and is threatening societies and some critical sectors like banking. Though practice of money laundering is very old, the use of the term `Money Laundering' is of recent origin. This article discusses the issues of money laundering, the cyber money laundering process, business areas prone to money laundering with specific reference to banking and finally ways and means of prevention.

© 2004 IUP. All Rights Reserved.

INTERNATIONAL SCENARIO

Information Systems, Technology and Basel II

-- Y Srinivas

Basic intent of Basel II is to develop a safe and sound financial system by emphasizing on banks own internal control system, risk management processes, market discipline etc. Implementation of Basel II is a challenge for banks because it requires well developed information system, technology for risk modeling, effective integration of information system etc. Banks require huge investment in technology for implementing Basel II norms effectively. Many software companies have started to develop products which fulfill the Basel II requirements.

© 2004 IUP. All Rights Reserved.

CRM IN BANKING

CRM: Benefits and Strategies

-- Visweswar Valluru and Samarohada

CRM is about finding, getting and retaining customers. Its main thrust is to develop new products, render value creation, gain market leadership and spread risks and vulnerabilities besides facing competition. The strategic framework for CRM could clarify CRM functions fitted within the organization and optimize their use. Value creation process of CRM concentrates on creation and delivery of value to customers. For CRM to be truly effective an organization must decide what kind of customer information it is looking for and what it intends to do with the information. Data mining renders customer relationship profitable. E-CRM is the integration of the customer relationship with e-business application.

© 2004 IUP. All Rights Reserved.

CRM IN BANKING

Banking-CRM Makes the Difference

-- Rajeswari Krishnan

Customer Relationship Management (CRM) can be helpful in customer identification, cross-selling of products, customer acquisition or retention etc. Operational CRM, which provides required information and Analytical CRM, which traces activities and makes information more sensible are the two tools of CRM. CRM cell, portfolio of products, customer metrics, and latest technology are some of the requirements for efficiently implementing the CRM. In India only few a banks like ICICI Bank and HDFC bank are using CRM products.

© 2004 IUP. All Rights Reserved.

CRM IN BANKING

Retail Banking - Going The CRM Way

-- V Gopal

Attracting and retaining the individual high net worth and profitable customers is a key challenge for banks, today. Customer Relationship Management (CRM) can help the retail bank managers in facing this challenge. In order to drive the maximum benefit from CRM, banks must prepare their processes compatible to the CRM.

© 2004 IUP. All Rights Reserved.

E-BANKING

E-Banking: In Nascent Stage in India

-- Sheeba Kapil

To keep pace with the changing environment worldwide, Indian banking industry is fast adopting technology. It has embraced many new features like Internet banking, ATMs, Phone banking etc. With the help of new technology, banks are now able to offer products and services which were difficult or impossible with traditional banking. But the banks in India still have to go a long way before making themselves technology savvy.

© 2004 IUP. All Rights Reserved.

PAYMENT SYSTEMS

Efficient Payment Systems-Issues and Concerns

-- YG Sivaram

Today, as many economies are globalizing themselves, Effective Payment System (EPS) is crucial because it operates under different types of risk environment. EPS provides many benefits to a bank and economy. Group of 10 developed economies has also issued the core principles that a well-organized payment system should have. Central Banks have a key role to play in making payment system effective and efficient. Other participant should also adhere to the norms for making payment system a robust one.

© 2004 IUP. All Rights Reserved.