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Follow UsBANGALORE: Nasscom has called for public sector banks in India to work in co-operation with the Indian IT industry for increased adoption of IT in the Banking, Financial Services and Insurance (BFSI) sector. NASSCOM also revealed that in order for banks to introduce the benefits of IT and provide a centralized banking solution to their customers, this sector might probably require to utilize a minimum of 5 percent from their total spending in the medium term.
To ensure the BFSI sector in India rakes up the maximum benefit from the Indian IT, Nasscom has chartered out an agenda for the BFSI segment,
- Share best practices: Nasscom in association with various regulatory and Industry bodies such as the IBA will initiate a survey on best practices of IT implementation within India and overseas. This can then be used as the benchmark for implementing IT solutions within the BFSI sector.
- Create a comprehensive database of IT applications available for the BFSI sector that could be used as a ready reference for institutions during IT implementation.
- Work with the Ministry of Communications and Information Technology to create standards for smart cards that would enable sharing of credit information.
- Assist the BFSI sector to provide specialized financial IT training modules to its executives.
- Identify joint collaborative opportunities between the Indian BFSI sector and IT companies.
On a comparative analysis of computerization in public sector banks, between September 2000 and March 2002, is that the number of fully computerized branches in the country has more than doubled from 5,514, in September 2000, to 11,578 in March 2002. The number of ATMs installed, by March 2002, has increased five folds to 1,969 from a mere 320 in September 2000. The number of PC/nodes at banks has increased by 70,896 during the September 2000-March 2002 period.
Nasscom President Kiran Karnik, said, "To be successful in today’s competitive environment, it is imperative for organizations in the financial services sector to embrace Information Technology and redefine relationships with customers, partners and suppliers."
Services such IT networking, system integration and management, CRM applications, back office processing and call centres, data warehousing/ data mining and mobile and e-banking are identified as high business potential areas for the Indian software and services companies in the BFSI sector, according to the nation’s software apex body.
Karnik, said, "Indian companies have made considerable inroads in the BFSI sector internationally. This sector currently contributes approximately 22% of India s software and services exports. It is time now that these companies focus and extend their expertise for tapping the huge opportunity that exists in the domestic market. The segment also offers great potential for the SME sector for developing customized financial products and services."
Union Bank of India Chairman & Managing Director V Leeladhar, said, "While Indian banks have taken several initiatives towards IT adoption to gain efficiencies and streamline operations, these have been mainly restricted to the base level. Forums such as the IT@BFSI 2002, help identify specific opportunities on the role IT can play in addressing business issues faced."
The conference highlighted the need for IT adoption in the sector to,
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Provide real time availability of transaction processing through multiple channels and enhancing ability to cross sell products.
Ensure security and safety of funds and confidentiality of information.
Increase efficiency through integration of systems across various locations and better management of funds.
Ensure efficient management of Non Performing Assets (NPAs)
Minimize transaction costs.
Enhance ability to conduct in-depth financial analysis and gather business intelligence.
Encourage the use of Internet to provide access for online bill payments, funds transfers and e- statements in addition to encouraging wireless mobile banking and e-commerce.