Technological Challenges
in Banking Operations
R.N. Ramanathan
Dy. MD (IT)
State Bank of India
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Contents
The Changing Face of Business Operations
Technology As Business Enabler
Technological Challenges
Key Focus Areas
Conclusion
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The Changing Face of Business Operations
1/3
Customers – Key
catalysts of change
Volatile Business
Environment
Business
Operations
Deregulated Market
Environment
Spiralling Competition –
WTO/FTAs
3
The Changing Face of Business Operations
2/3
Management of
Asset Quality
Greater Financial
Risks
Business
Operations
Globalization of
Operations
Consolidation of
Operations
4
The Changing Face of Business Operations
3/3
Regulatory
Compliance
Corporate
Governance
Business
Operations
Stretched
Resources
Operational &
Reputational Risks
5
Technology as Enabler
1/2
Change Management
Quicker ‘Go-To-Market’
Technology Enables
Richer Customer
Experience
Key to
Competitiveness
6
Technology as Enabler
2/2
Enterprise wide
Customer View
Pace with Developments
Technology Enables
Preventive, Riskbased Architecture
Empowerment to
Manage
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Technological Challenges
1/2
 Capital Budgeting & Outlay
 Integration of Technology & Business
 In-sourcing vs Outsourcing Dilemma
 Business Process Changes
 Management of Human Resource
 Managing Compliance Environment
 Information Security and Frauds
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Technological Challenges
2/2
 Risks – Product, Vendor, Implementation
 Project and Cost Overruns
 Infrastructure Management
 Disasters & Business Continuity
 Return on Tech Investment
 Measuring Tangible Benefits
 Managing Obsolescence
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Key Focus Areas
1/5
Efficient Front Office
Customer
Centric
Management
Robust Back Office
Relationship Management
Universalization of Services
An Eye on Competition
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Key Focus Areas
2/5
Plan for Upgradations
Plan for Obsolescence
Investment
Planning
Calculate ROI
Adopt Industry Standards*
Keep a Long-Term View
* Like BS 7799, CMM, ITIL, COBIT
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Key Focus Areas
3/5
Training / Re-Training
Cultural Integration
Manpower
Planning
Adaptability to Changes
Flat Management Style
Motivation & Rewards
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Key Focus Areas
4/5
Vendor Agnostic Applications
Align with Business Focus
Technology
Management
Strategize and Monitor Risks
Empower & Delegate
Lead From Front
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Key Focus Areas
5/5
Documented & Process Driven
Defined & Measurable
SLA
Monitoring
Tools For Management
Avoid Complacency
Conduct ‘Reality Checks’
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Conclusion
 Customers will become increasingly ‘informed’
 Service deliveries will be a challenge
 Business cannot be divorced from technology
 Opportunities and risks will co-exist
 Technology will have to be managed –
not just acquired
 Best processes and practices will win the day
 Technology – Not a ‘by choice’ issue any more
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Conclusion
The only constant will be
CHANGE
directed by business &
empowered by technology
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Thank You
dmd.it@sbi.co.in
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