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BankingIndustry
TheEconomicTimesBankingTechnologyConclave
10September2009,Mumbai
57
KPMGandTheEconomicTimeshavecollaboratedtopublishthe'ITCurrentStatusSurvey'fortheBankingTechnology
Conclave2009.Informationinthissurveyisbasedondatareceivedfromthetopmanagementandtechnologyleadersof15
leadingbanksinIndia.Thesurveytriestoprobekeytrendsintechnologythatenablesbankingprocesses.Feedbackreceived
onfactorssuchascost,proposedtechnologyinitiativesandtechnologystrategy,havebeencollatedtobringthesesurvey
resultstoyou.
IT STRATEGY
1. IT Strategy
TheimportanceofITstrategyintheIndianBanking
Surveyed
sectorreflectsinthefactthatallrespondentstothe
surveyhaveundergoneanITstrategydefinition
exercise.MostconsidertheirITstrategytobewell
integratedwithbusinessstrategyandalsoperforma
reviewofITstrategyatleastonceayear. 0% 20% 40% 60% 80% 100% 120%
COST REDUCTION
2. The key IT initiatives planned for
implementation by the Indian Banking sector
Applicationconsolidationandprocess/workflow 1
automationalongwithVirtualizationwerethetopcost
reductioninitiativeswith40percentofthe
respondentshavingaprojectlinedupoverthenext
0% 20% 40% 60% 80% 100%
oneyeartoaddresstheseareas.Storage
optimizationandvirtualizationweretheothertwo Application consolidation and process automation
initiativeswhichemergedashavingequal Virtuliastion
importance. Communication (including UC) and Network Infrastructure
58
Business Intelligence
Ecommerce, including Mobile Banking
Financial Inclusion related initiatives
Basel II
Regulatory Reporting
Payment Systems
8% 4% Business Intelligence
BankingandCRMaresomeoftheinitiatives 8%
17 %
thatamajorityoftherespondentshave %
4% 1% 11% ERP Financials
10
9%
9%
eitheralreadydeployedorcurrently HRMS
10
%
1 1%
8%
8%
6% 0%
implemented/
enable.ServervirtualizationandERMis under-way
Software-as-a-Service
aninitiativethatamajorityofthe Virtualization
respondentswouldbeimplementingina Document Management
coupleofyears.Amajorityofthe
Alignment to IT Security and Infra.Standards
respondentshaveindicatedthat'Software-
Enterprise Risk management
as-a-service'maynotbeontheiragenda.
Identity Access Management
Cloud Computing
Scheduled in
1-2 years
1-3%
3-5% 39%
15%
BUSINESS OPERATIONS
6.Top Technology related challenges that are
faced by Banks at present
Flexibilityofadaptingtechnologytobusinessprocessisthe 1
front-runningchallengeforITinbanks.
Drivingutilizationofapplicationsandchannelsthroughbetter
adoptionoftechnologyisthesecondchallengewiththe
0% 20% 40% 60% 80% 100%
reductionofmaintenancecostsforITcominginthird.
Flexibility in Scaling up
Infrastructure utilisation
Virtualisation
7. Processes that banks have derived the most MOST VALUE FROM OUTSOURCING
value from, through outsourcing
1
TheclearwinnersinthiscategoryareATMmanagementand
cardservicesfollowedbynetworkmanagementservices.
1
Datacentremanagementservicesrankthehighestinthis
segment.Otherprocessesbeingevaluatedincludeapplication
maintenance/supportservicesandITinfrastructure
monitoring/maintenanceservices. 0% 20% 40% 60% 80% 100%
Risk Management
TheclearwinnersinthiscategoryareATMmanagementand
cardservicesfollowedbynetworkmanagementservices.
Financial Inclusion
IFRS
H M L
Conclusion
Theseresponsesindicatethatamajorityofbankshavetakencognizanceoftheimportancethat
enterprisearchitecture,servicedeliveryandgovernanceplayinthedefinitionofabank'sstrategyforIT.
CapitalandoperationalexpenditureinITseemtobefollowingasimilartrend.Inmanyinstances,
importantchannelsofcustomeroutreachsuchasATMandcardservicemanagementhavebeen
outsourced,showcasingtheincreasinglevelsofcomfortwithrespecttotechnologyoutsourcing.
Challengeswithrespecttoadoptionoftechnologystillprevail.However,theimpactonITdueto
anticipatedchangesintheregulatoryenvironmentareexpectedtobeofamediumnature.
in.kpmg.com/btc
Contacts
Pradip Kanakia
Head - Markets
Tel: +91 80 3980 6100
e-Mail: pkanakia@kpmg.com
Kumar Parakala
Head - IT Advisory
Tel: +91 80 3065 4600
e-Mail: kparakala@kpmg.com
Abizer Diwanji
Head - Financial Services
Tel: +91 22 3983 5301
e-Mail: adiwanji@kpmg.com
Kunal Pande
Director - IT Advisory
Tel: +91 22 3983 6436
e-Mail: kpande@kpmg.com
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