UNITEDWORLD SCHOOL OF

BUSINESS, AHMEDABAD

Submitted to:

A PROJECT REPORT ON SAS

TECHNOLOGY
Prof. Amit Saraswat.
BY-

RAJAT PAL
PGDM 1ST YEAR
SECTION-A, ROLL-NO-41

ACKNOWLEDGEMENT

I take this opportunity to express my profound gratitude and deep

regards to my Faculty, Professor Amit Saraswat Sir for his exemplary
guidance, monitoring and constant encouragement throughout the
course of this project. The blessing, help and guidance given by him
time to time shall carry me a long way in the journey of life on which I
am about to embark.
I also take this opportunity to express a deep sense of gratitude to my
classmates for their support, valuable information, which helped me in
completing this task through various stages.
Lastly,

thank

my

parents

and

friends

for

their

constant

encouragement without which this assignment would not be possible.

Yours Faithfully
Rajat Pal,
PGDM 1st Year

INTRODUCTION OF SAS:
SAS once stood for "statistical analysis system," and began at North Carolina State
University as a project to analyse agricultural research. As demand for such software grew,
SAS was founded in 1976 to help all sorts of customers - from pharmaceutical companies and
banks to academic and governmental entities.
SAS helps organizations anticipate business opportunities, empower action and drive impact.
We do this through advanced analytics that turn data about customers, performance,
financials and more into meaningful information.
Commitment to Customers: It helps to solve customer business problems. SAS works
closely with customers in all stages of research and development to ensure that they get the
most out of new offerings. More than 13,000 employees across more than 400 SAS offices
provide local, hands for customers whenever and wherever they need it. Customer loyalty,
evidenced by long-standing SAS user communities and a strong renewal history, echoes this
customer partnership and our shared commitment to a successful future.
People & Skills: SAS most important asset is its "creative capital," in the words of Chief
Executive Officer Jim Goodnight. The technical and domain expertise of our employees helps
SAS lead the way in high-performance analytics, empowering our customers to tackle
complex problems using big data.
Technology: Organizations have THE POWER TO KNOW through the combined strengths
of SAS solutions and technologies.

SAS solves real-world problems like combating fraud in Financial Services,

expediting drugs to market in Life Sciences, and identifying cross-sell opportunities
in Retail, as well as challenges facing every industry such as increasing the value of
customer relationships, managing risk and optimizing IT networks all through industry
and cross-functional solutions that reflect our domain expertise.

SAS addresses these complex business issues using a foundation based on three key
capabilities: information management, business.
MISSION
SAS delivers proven solutions that drive innovation and improve performance.
VISION
SAS transforms the way the world works, giving people THE POWER TO KNOW.
VALUES

These SAS values can be seen in every company relationship, from long-standing
customer engagements to the strong and focused employee community.
Approachable
Customer-Driven
Innovative
Trustworthy
SAS financial intelligence provides every essential capability for the finance department, all
built on a single platform. Capabilities include integration and cleaning of all financial data,
budgeting, forecasting, score carding, simulation, risk management and more. With the
combined power of SAS financial intelligence components, you can improve the accuracy of
plans and budgets and understand profit drivers to grow profitability.
SAS for Banking:

For banking services SAS is a useful and important instrument. SAS

provides the following benefits to banking services:

Better risk management,

Stronger customer relationships,

Clear competitive differentiation and greater profit margins.

Financial institutions all over the world are struggling to overcome from the worst financial
crisis in more than 70 years while working to avoid another crisis down the road. With more
than 3 decades of experience providing solutions for the banking and financial services
industry, SAS can help you adapt your business models to strengthen your business, achieve
your most important strategic goals and comply with ever-changing governmental
regulations.
SAS works in these following areas of banking services:
Risk and Capital Management
It effectively manages all types of risk, and optimizes management of capital and liquidity.

High-Performance Risk Management

SAS helps the banking industry to handle complex portfolios of financial instruments, rapid
calculation of risk measures and more.

 Customer Insight
SAS helps to grow customer relationships and maximize the customer experience between
customer and the bank.

Fraud and Financial Crime

It helps to detect, prevent and mitigate financial crime risk and fraudulent activities across the
enterprise.

Finance and Operations

SAS helps the banking industry to drive profitable growth, and improve competiveness while
controlling costs.

I have taken 2 banks for the comparison; one is HDFC Bank and another one is ICICI
Bank. Both the bank uses SAS technology for their betterment of services.

HDFC BANKHDFC Bank ranks customers and customer data for propensity to act to
provide cross-sales of more than 70 %.
As one of Indias largest banking institutions, HDFC Bank has embraced sophisticated
information technology to pursue its expansion from corporate banking to become a worldclass provider of wholesale and retail financial services. SAS provides a broad range
of analytics to help HDFC Bank to make credit decisions, enhance its cross-sell and up-sell
marketing, and comply with strict regulations.
In the mid-1990s, the Housing Development Finance Corporation Limited (HDFC) was
among the first to receive an "in principle" approval from the Reserve Bank of India (RBI) to
establish a private bank, part of the liberalization of the banking industry. In just a few short
years, Mumbai-based HDFC Bank has expanded from its commercial banking roots to the

broader world of retail financial services, with a footprint stretching across the country and
encompassing a broad range of offerings.
Thanks to an unswerving commitment to a world-class technology infrastructure, more than
18 million customers can visit more than 1,700 networked branches in hundreds of cities, use
thousands of ATMs, and take advantage of online and telephone banking. What's more, those
IT investments and deployments have evolved into the foundation for even greater value than
streamlined transaction processing. Drawing on their massive volumes of data managed in
large data warehouses HDFC Bank is using sophisticated solutions from SAS to generate
an entirely new class of analysis and insights relating to customer relationship management,
regulatory compliance, credit assessments and more.
HDFC bank is enjoying the following advantages by adapting SAS:
Achieving
the
360-degree
view
According to Munish Mittal, Executive Vice President and Head of the Technology Solutions
Group, HDFC Bank views cross-selling to existing customers as a crucial growth strategy.
"One of the most important functions of our data warehouse is to achieve a consolidated view
of the relationship our bank has with each customer," he said. "We want a 360-degree view
that shows us the credit card account, fixed-deposits, asset accounts the totality of their
relationship so that we can segment our most profitable customers to offer more attractive
products, services and pricing, and create an overall better relationship with them."
SAS, combined with the bank's CRM (Customer Relationship management) solution, helps
HDFC Bank model its customer data and assign propensity to buy, spend and (for credit and
debit cards) activate. SAS helped the bank target sales communications to its customers
thereby reducing the number of calls each customer receives. Additionally, the highestperforming, highest-margin strata of customers - the "Imperia" customers receive an almost
concierge-like experience with aggressive, attractive pricing and multiple cross-selling offers.
"When we know that the customer is high in the value chain," Mittal said, "we know that
there's a stronger level of profitability in that relationship. So we reach a greater number of
higher-margin customers at far lower cost." It helps to maintain better customer relation.
The correct product for cross-sales promotion is identified using the customer profile, life
stage and behavioural dynamics. The predictive power of this analysis encouraged the bank
to extend the use of SAS to inbound channels; thereby further reducing the number of calls
from the bank without compromising meaningful interactions with the customer.
Today, more than 70 percent of HDFC Bank's credit card portfolio is a result of cross-sales to
existing customers of standard liability products, such as savings and salary accounts which is
only possible after adaptation SAS technology.
Improving the compliance posture:
Anti-money laundering regulation creates strict burdens for banking institutions around the
world and India is no exception. HDFC Bank uses SAS as part of a stringent and focused
program for monitoring and identifying potentially fraudulent transactions. For instance, SAS
helps identify suspicious activity such as layering or moving money to multiple accounts,

finding large single-day cash deposits, opening a number of accounts in a short period of time
or sudden activity in long-dormant accounts.
"The Know Your Customer [KYC] aspect of banking is very important in anti-money
laundering regulations," explained Mittal. "As we on-board the customer, we run that
customer through certain profiles and cross-check against a list of banned individuals.
Identifying a customer and matching him against good and bad lists requires very clean data.
SAS helps us do some enrichment and data cleansing to strengthen our KYC compliance."
According to V. Chakrapani, Executive Vice President, Audit & Compliance at HDFC Bank,
the comprehensiveness of SAS' scenario modelling has made monitoring of transactions
"from an anti-money laundering perspective, qualitatively rich and dependable, and has
enabled the bank to file qualitative suspicious transaction reports to the Financial Intelligence
Unit."
Lowering credit risk:
One of the biggest challenges for any retail bank is administering a sound credit-underwriting
policy. HDFC Bank makes thousands of credit decisions every day. "We have hundreds of
credit officers working on originating and approving loans," said Mittal. "We process more
than 1,000 applications an hour every day. Many of these scenarios require instant loan
approval. For instance, a customer at a two-wheeler dealer wants to take his purchase with
him immediately. We combine our in-house lending, loan origination and scoring solutions
with SAS technology to provide our customers with the luxury of instant financing
decisions."
Using SAS, HDFC Bank interfaces to a credit-bureau report, validates the customer's identity
and runs the application through various models such as propensity to default. The result is
that HDFC Bank delivers an answer to the requestor within minutes, online. "SAS delivers an
exceptional level of performance and reliability in these scenarios," Mittal said.
In the absence of a unique identification, such as a Social Security number, SAS helps
identify group and customer level debt exposure.

These benefits the bank gets in many ways:

The credit officer can view customer level debt exposure across all other loans within
the bank.

The bank can reject customers who have a derogatory repayment in other loans within
the bank. On an average, every month the bank rejects up to 2 percent of applicants
because of an existing derogatory repayment. Assuming a probability of default and
loss given default of 50 percent, HDFC Bank is saving nearly 1 percent of its total
annual disbursement from potential credit losses.

In accordance with regulatory guidelines, SAS helps identify standard exposures of

defaulted customers so the bank can initiate preventive measures and provisions. On

average 8-10 percent of HDFC Bank's total gross non-payment accounts (NPA) are
related NPAs (meaning this customer has another defaulted exposure).
Taking intelligence to the next level:
HDFC wants to study the behaviour of the customer because it can help us develop more
accurate, predictive forecasts for our business. Those predictive models not only prevent
losses by spotting likely defaults, they can also predict propensity to buy or propensity to
convert. In the next 6 to 18 months, we anticipate deploying solutions that will bring these
initiatives to a higher level.
To that end, the bank is planning to include analytics in its future strategic decisions,
including geographic expansion, channel efficiency measurement and resource allocation.
The bank also plans to transition from a product-based to a customer-based portfolio
management strategy. Mittal and the bank's executive branch feel that SAS Analytics is the
right fit for the competitive advantage.

ICICI BANK:
ICICI Bank is India's 2nd -largest bank with total assets of Rs. 3,562.28 billion (US$77
billion) as of December 31, 2009, and profit after tax (PAT) Rs. 30.19 billion (US$648.8
million) for the 9 months that ended December 31, 2009. ICICI Bank offers a wide range of
banking products and financial services to corporate and retail customers through a variety of
delivery channels and through its specialized subsidiaries and affiliates in the areas of
investment banking, life insurance and property and casualty insurance, venture capital, and
asset management. The Bank has a network of 1,646 branches and about 4,883 ATMs in India
and has presence in 18 countries in all around the world.
ICICI Bank consolidated business intelligence framework across a network by replacing its
existing disparate reporting systems and implementing a single enterprise wide framework
with SAS. The SAS Enterprise Intelligence Platform caters to ICICI Bank's need for
flexibility, scalability and its goal to derive a "single view of the customer".
ICICI Bank is the most valuable bank in India in terms of market capitalization and is ranked
third in free float market capitalization among all the companies listed on the Indian stock
exchanges.

While ICICI Bank has taken rapid strides in developing new businesses in recent years, the
bank believes its biggest challenge will be to continue innovating to improve market shares
and to maintain its competitive edge. According to K.V. Kamath, Managing Director and
CEO of ICICI Bank, "We will continue to benchmark with global best practices to ensure
optimum utilization of our resources and the finest exposure to our work force. My vision is
to develop ICICI Bank into an organization that is empowered by bright and talented
individuals, working in teams and riding on the backbone of world-class technology."
The Bank is getting the following advantages:
Enterprise Intelligence:
With the philosophy of driving enterprise intelligence in ICICI Bank, the bank needed an
enterprise wide reporting system to empower synergistic reporting between applications that
support the business and, at the same time, offer flexibility to support the reporting needs of
various business units. It provides flexibility to the bank to carry on its activities.
With business transactions growing exponentially, one of the key parameters for the
evaluation of a solution was the scalability to support the growing data in ICICI Bank. In fact,
one of the major business concerns was supporting the business if the growth in the number
of users exceeded the planned number. The key departments involved in evaluating the
solution were the technology management group and the retail and corporate technology
teams. It helps to manage the statistical information of the bank.
Prior to using SAS, the existing environment included multiple reporting systems that were
cumbersome to maintain, and various departments were still using disparate reporting tools.
Information across the enterprise was conducted manually by the IT team. In addition,
bandwidth issues, security concerns with enterprise data lying on desktops, and exponentially
increasing data established a need for a user-friendly solution that could integrate all data
sources across the organization. It helps to integrate all the data and helps to store it.
The perfect fit:
The SAS Enterprise Intelligence Platform was an ideal fit in this business scenario, as it
empowers the bank with the key cornerstones of SAS:
Manageability, interoperability, scalability and usability. Specifically, ICICI's IT team
acknowledged these advantages would greatly benefit the bank. The advantages are stated
below:

Usability: The SAS Web-based solution would enable ICICI to provide information
access to all users and customers across the bank.

Scalability: SAS can scale upward and outward to address a great number of queries
from many users or information seekers.

Interoperability: SAS can talk to all of the bank's existing data sources, natively.

Manageability: Security concerns can be addressed with the SAS Management

Console that can be deployed as one point of control in setting up permissions.

BI strategy:
ICICI bank was also interested in a data integration solution for its data warehouses and data
marts. This helped broaden the scope of the SAS solution with the introduction of SAS Data
Integration for the creation of marts.
To address issues related to migration and scalability, SAS suggested a proof of concept and
involved both the business and the IT users during that important phase. The team of business
users and IT managers was impressed that SAS took one third the time to build a reporting
cube compared to Congos. Cube exploitation clocked in with sub-second response times, and
the entire migration of the cube took only four hours, including understanding the
transformations and getting the raw data in place. The successful proof of concept was the
key turning point for ICICI's decision to purchase SAS. The vision of consolidating the BI
environment and setting up an enterprise-wide business intelligence platform had been
created successfully.
[Source: The Economic Times].

METHODOLOGY:
I have collected all the secondary data. I have collected the data from various journals and
websites and from our text book of management Information system. As I dont have much
more knowledge about IT, because I was a student of management. So I have faced lots of
difficulties to do the project. I have started the project about 15 days ago. I was not getting
any idea how to do it. Thats why I started to read the text book and various journals and
websites to get idea. But I had the trust that I can do it. I have written here various things
which may not be perfect. I have collected all secondary data. I have read various cases. I
have gone through the banks websites to get the information. Its a big experience for me
that I have done the project. I needed to recall the lecture of Management Information
System. I had interacted with few bank person how they uses the SAS technology. I did not
have soo much idea about SAS before starting the project. After starting the project I came to

know about SAS in details, how the bank uses it, what are the kinds of benefits they are
getting by using it. I am very much thankful to our Prof Amit Saraswat Sir, without his
guidance and instructions the project might not be possible to do. Hope in future Sir will be
continuosly guiding and instructing to do this kind of project.

LITERATURE REVIEW:
Before 1966, there was no SAS. But there was a need for a computerized statistics program to
analyze vast amounts of agricultural data collected through United States Department of
Agriculture (USDA) grants.
Development of such software was critically important to members of the University
Statisticians Southern Experiment Stations, a consortium of eight land-grant universities that
received the majority of their research funding from the USDA. The schools came together
under a grant from the National Institutes of Health (NIH) to develop a general-purpose
statistical software package to analyze all the agricultural data they were generating.

The resulting program, the Statistical Analysis System, gave SAS both the basis for its name
and its corporate beginnings.
According to Munish Mittal, Executive Vice President and Head of the Technology Solutions
Group, HDFC Bank When it comes to business analytics, HDFC Bank has ambitious plans
to achieve new insights. "We want to take our business intelligence to the next level,"
"When it comes to analytical technology, SAS is the gold standard," said Mittal. "An
organization like HDFC Bank, which is committed to quality and service and delivering an
exceptional experience to our customers we need that best-in-class technology. I think SAS
is up on the pedestal when it comes to business analytics, modelling, fraud detection and
statistical
analyses.
"Every day, we are making decisions based on SAS' analysis such as whether to extend
credit to a new customer. And every decision we make that helps us reduce nonperforming
assets indirectly generates a return on our investment. With SAS, we have greater confidence
that we are making reliable decisions and the system performance has been excellent.
Definitely, SAS has been a great experience for our bank", said Mittal, Vice President and
Head of the Technology Solutions Group, HDFC Bank.
SAS Enterprise Intelligence Platform including SAS ETL Server, SAS Enterprise BI Server,
SAS Enterprise Miner and SAS Text Miner will cater to ICICI Banks need for flexibility,
scalability and to derive a single view of the customer. ICICI Bank plans to build a
framework that will enable it to address the information needs of consumers across the Bank.
ICICI Bank believes that SAS Enterprise Intelligence Platform would be an ideal fit. The
SAS Enterprise Intelligence Platform is a web-based solution enabling access to all users
across the enterprise. The platform scales upwards and outwards to address greater number of
queries; can talk to all existing data sources as well as integrate several applications.
As with any enterprise wide solution security is preeminent this will be addressed with SAS
Management Console, providing a single p Commenting on the selection of SAS by ICICI
Bank, Mr.Pravir Vohra, SGM (Head Technology Management Group & Retail Technology
Group), ICICI Bank, said, Adoption of SAS in ICICI Bank is in line with our strategy to
consolidate our Business Intelligence framework and establish an Enterprise-wide Business
Intelligence Platform. With the SAS ETL Server it will now be possible for us to integrate our
data sources across the enterprise. SAS Enterprise BI Server and SAS Enterprise Miner will
empower our information users to have access to the requisite reports through an Enterprisewide reporting system. Our partnership with SAS will go a long way in streamlining our BI
Strategy.
According to Mr. Sudipta K. Sen, Managing Director & CEO, SAS Institute (India) Pvt. Ltd.
said, ICICI Bank has always been a front-runner in the adoption of key technologies to help
spur growth, and implementation of SAS Enterprise Intelligence Platform is one more step
towards this direction. He added, SAS Enterprise Intelligence Platform will empower all

information users across the bank to derive the single vision of the truth. We are pleased to
partner with ICICI Bank in its endeavour to consolidate its Business Intelligence framework
and adopt a consolidated enterprise-wide reporting system.

CONCLUSION:
So I can say that SAS has brought a revolutionary change in the banking sector. After
adapting SAS technology Banks have become more effective in their function. SAS helps to
take effective decision. And every decision they make that helps them to reduce nonperforming assets indirectly generates a return on their investment. With SAS, the banks have
greater confidence that they are making reliable decisions and the system performance has
been excellent. Definitely, SAS has been a great experience for the banks. SAS Analytics
provide an integrated environment for predictive and descriptive modeling, data mining, text
analytics, forecasting, optimization, simulation, experimental design and more. From

dynamic visualization to predictive modeling, model deployment and process optimization,

SAS provides a range of techniques and processes for the collection, classification, analysis
and interpretation of data to reveal patterns, anomalies, key variables and
relationships, leading ultimately to new insights and better answers faster. SAS helps to
reduce the risk. SAS helps to improve customer relationships and enhance the customer
experience to restore consumer/market confidence. SAS helps to reduce operational losses
and combat financial crime in order to accurately provision capital and ensure customer
confidence. It also helps in reviewing the business strategies for a different climate, and
identifies new ways to drive income and enhance shareholder value. So it can b said that SAS
has a greater role to take the banking industry in a huge stage of development by modern
technology.

REFERENCES

http://www.sas.com/software/
http://www.sas.com/resources/whitepaper/wp_42594.pdf
http://www.sas.com/solutions/financial/index.html
http://www.sas.com/company/about/index.html
http://www.sas.com/industry/financial-services/banking/index.html
http://www.sas.com/success/icici.html
http://www.sas.com/success/hdfc.html
http://support.sas.com/resources/papers/proceedings10/239-2010.pdf

 http://www.icicibank.com/aboutus/pdf/SAS%20-%20ICICI%20Bank-Sep05.pdf
Laudon K, Laudon J, Dass R, Management Information system, case of BOB, page
209-211.
Laudon K, Laudon J, Dass R, Management Information system, Economic Impacts,
Page 88-91.
http://www.sas.com/company/about/history.html
http://www.sas.com/industry/financial-services/banking/index.
http://www.sas.com/resources/brochure/financial-crimes-framework-banking.
The Economic Times.

http://www.sas.com/offices/asiapacific/india/success-stories/indexByTechnology
http://www.sas.com/company/about/history.html#s1=2
http://iosrjournals.org/iosr-jbm/full-issue/vol3-issue1.pdf
http://uoit.ca/sas/Information%20Technology/US-Indiatechno.pdf
http://www.icicibank.com/aboutus/pdf/SAS%20-%20ICICI%20Bank-Sep05.pdf
http://www.sas.com/technologies/analytics/
http://www.sas.com/resources/whitepape