PANEL DEBATE:

BANKING TECHNOLOGY:
CHALLENGES AND
OPPORTUNITIES

International

Treasury

V Chandrasekhar
Chief Technology Officer
Bank of Baroda

Panel Questions
1.
2.
3.
4.
5.

What are the key technology challenges facing

Indian banks today/over the next five years?
Which one technology will make a critical difference
to your business over the next one five years?
What new technologies will drive innovation in the
sector in the future?
What impact will regulation reforms, such as Basel
II, IAS, Cyber crime, AML have on banking
information technology?
What are likely spending trends in banking IT over
the next five years?

International

Treasury

Presentations
Service Orientated Architectures In
Banking - Mr. Koen Van den Brande,
President, Product group - Polaris
Software Lab
Linux in Banking And Financial
Services - Mr. Sachin Dabir, Head,
Enterprise Sales, Red Hat India Pvt Ltd

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Treasury

Key Technology Challenges for

Next Five Years
Alignment of IT and Business
Mindset Issues From being organisation centric to customer
centric / risk culture , importing of best practices
How to Drive Down Costs in a Public Sector Environment
Cost of change is much more than cost of technology
Managing Size, Scale and Complexity of IT Systems find
needed skills / specialisation and retain them
Data as an Asset Silo Data / Poor Quality / Incomplete / Data
Migration / Reference Data Issues
Integration of legacy and state of the art systems
Re-Position the Bank - Branding, Premises, Marketing
M&A

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Treasury

One Key Technology that will

make the difference in your bank
From Decentralization to Centralisation
CBS

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Treasury

New Technologies that will drive

innovation in next Five Years
Multi-media Communications
Will make relationships less plastic

Robust Authentication Technologies

Single Sign on
Uniform look & feel

Electronic Payments

Micro-payments
Internet
Mobile
Smart Cards
Smart Phones
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Treasury

Impact of Basel II, IAS, Cyber

crime, AML on Technology

DWH
Information Life Cycle Management
(Network) Storage
Strong Analytics
Emergence of Robust Financial Services Model
Trusted Computing
Security Management Tools
STP Internal / External
Financial Reporting

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Treasury

Likely IT Spends in Next Five

Years
The BFSI sector accounts for the largest share of the domestic
IT market
IT spending by the BFSI sector increased by 18 percent to Rs.
60 billion (US$ 1.24 billion) in 2002-03.
PSBs Currently at 2%
Will have to reach 15 to 20%
IT spends on security will increase
IT spends on compliance will increase
Emergence of Network Computing, On demand Computing and
Multi-Core CPU technologies will radically alter IT architecture /
implementations / software / hardware costs and licenses and
hence TCO and IT spends

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Treasury

Gap

1970 80 ALPM
1990s TBM
2000s CBS
We need to close 30 year gap

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Treasury

Technology
Technology is cost to every one and
distinction to none
Brings in level playing field
It is people ( service, innovation and
competency) that brings in differentiation not
cost , market segmentation or product
Technology can be a competence creator or
destroyer

International

Treasury

Infrastructure
Infrastructure and application are
inseparable
New
applications
require
new
infrastructure
Every new innovation comes with new
investments and new issues of change

International

Treasury

Great Technology Quotes

IBM There is market for only for 5
computers Watson 1943
Dec There is no reason to have computers
at home Ken Olsen 1977
MS 640K memory ought to be enough Bill
Gates 1981
British Post Americans need telephones.
We dont. We have enough messenger boys.

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Treasury

Thank You
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Treasury