Resources

Thought Papers

 

Banking Innovation

 

The Art and science of product innovations in the Indian banking sector

In this day and age, Indian banks need to tune in to customer demand in order to sustain themselves in the market. Product innovation is essential to capture new markets, and banks must invest in launching new products...

Card-based virtual wallet transactions at no cost!

This thought paper explores the idea of a world without physical money, built around a card-based transaction system that will support a pre-charged card or card-based virtual wallet. The system will be free of commission or charges, secure and easy to use, and require minimal additional infrastructural support.

Reach for the clouds

Technology circles are seeing lots of excitement around ‘cloud computing’, which means provisioning and using hardware and software over the Internet, leveraging Web technologies. This simple business model enables enterprises to take advantage of a range...

Say goodbye to banking inconvenience, hello to KYC portability

This paper explores a possible route to know your customer (KYC) portability – the establishment of a central repository that is tasked with assigning a unique identity to every bank account holder. This is going to be a prior condition for one-time KYC compliance that can be shared by all banks.

Four Strategies to Build the Smarter Bank

As customers go about trying to manage their money, there is an opportunity for banks to show them that they’re not alone — by being the ideal financial partner who listens, understands needs, shows respect, acts with integrity, and serves with a purpose. And also by exceeding customer expectations...

Future Co-Creation Must Facilitate Customer Self-Determination

In the seven years since the renowned duo of C. K. Prahalad and Venkat Ramaswamy made the term ‘co-creation’ famous, what has been its progress, especially in the banking context? And where is it headed? Let us take stock....

Virtual Financial Advice

Finding the right financial planning advisor is quite challenging for mass affluent customers. Most people mistakenly believe that financial planning is only for the wealthy. Often, they find it difficult to identify a financial advisor...

Business and IT Alignment: Shall the Twain Ever Meet?

Decades have passed since information technology first made its appearance in banking. Financial institutions have invested billions of dollars in various solutions to literally change the face of their business. Over the years, from the days of legacy systems...

Banking Innovation: What's Same, What's Different, in the Developed and Developing World

If there wasn’t enough focus on it already, the financial crisis has taken innovation to the top of most banks’ agendas. In mature as well as emerging markets, banking institutions are differentiating their value proposition...

How Small Banks are Innovating

When it comes to innovativeness, small banks have shown that size does not matter. Small banks, which we define as those with less than US$ 10 billion in assets for the purpose of this paper, typically include the likes of Credit Unions and Community Banks in the U.S., Building...

Banking Transformation

 

Evolution of cheques and paper-based clearing in India

The cheque has come a long way – from once being a prized possession and a status symbol to now being on the brink of extinction. This paper traces its history, current usage and future role in India.

Implementing core banking transformation - Top 10 challenges

Core banking implementations are very complex and often difficult to realize. Most CEOs in Europe and the US are hesitant to change legacy core banking systems because of high failure rates. However, when we look at the reasons behind these failures, some patterns and trends emerge.

Transformation: The Bridge to an Enterprise's Future

Whether the intention is to expand capabilities, boost efficiency, or improve profitability, business transformation has become a way of corporate life. The successful delivery of a business transformation must be underpinned by a solid framework. This though paper explores how transformation impacts an organization and the essential capabilities supporting the framework.

Banking in India: Evolution in Technology

The liberalization of the Indian economy in the early 1990s almost corresponded with the worldwide revolution unleashed by the Internet. These transformational forces doubly impacted India’s banks, which were stuck in old ways of functioning. But it was only a matter of time...

Agency Banking: New Frontiers in Financial Inclusion

Banks are not the only place you can bank any more. Supermarkets, post offices, and news agents are some of the several non-banking institutions that are stepping into the banking arena. These agents are creating new opportunities, bringing multitude...

FATCA Compliance: What, Why, How?

FATCA (Foreign Account Tax Compliance Act) goes beyond being just another regulatory or compliance requirement. Rather, it covers the entire value chain of U.S. financial services enterprises...

A Pragmatic Approach to Legacy Transformation

The transformation initiative around every legacy banking system is unique, but there are concerns, questions and limitations that such initiatives have in common. Sure enough, there’s no silver bullet for legacy transformation. Even so, experience proves that a well-thought-out and pragmatic approach...

How Banks can Drive Future Growth

Ever since the financial crisis broke out in 2008, bank profits have been severely hit. The problem involved erosion of customer trust, so the knee jerk reactions of banks – like handing out pink slips, and cutting salaries and IT budgets didn’t help. This thought paper captures the way banks are now trying to rejuvenate...

Why Card is King: The Need for Improving Card Acceptance in India

Credit and debit card payments taken together accounted for a little more than 20% of the total non-cash retail transactions in India in terms of volume in 2010-2011, according to the Reserve Bank of India (India’s central bank). Even so, in terms of value, cards accounted for less than 1%...

Non-Performing Assets: An Indian Perspective

Non-performing assets (NPAs) have outpaced credit growth, and Indian banks are facing a serious challenge from these burgeoning NPAs. Apart from regulatory and operational measures, using technology to automate asset classification and reporting...

Bridging the rural urban banking divide: what's been done and what needs to be.

India’s rural-urban divide is not a new story. And it continues to pervade every aspect of life in India – from the economic to the social to the demographic. Admittedly, there has been some improvement in banking access, but disparities remain. Penetration of other financial products like insurance...

Legacy Transformation

The following article presents a high level view best used by a CTO/CIO of a bank when deciding on large scale system transformation project such as core banking replacement. The article begins with an analysis of various parameters for finding problem areas in the current architecture...

Agile Banking – Managing the Challenge of Change

Business agility is the ability of a business to adapt rapidly and cost efficiently in response to changes in the business environment. Business agility can be attained by maintaining and adapting goods and services to meet...

Future Perfect: Opportunity for Banks in Emerging Markets

When it comes to listing the forces that will influence banking in the coming decade, emerging economies rank right up there along with the digital consumer, mobility and green innovation. The term ‘emerging market’ was coined in the 1980s as a more positive way to describe...

Channel Transformation

 

The local bank in your hand

It is cost effective. It helps generate revenue and has unparalleled reach. Above all, it is a rich source of consumer insight. No wonder, mobile banking is on the innovation agenda of every bank.

Mobile Banking: Moving Beyond Microfinance

Only 40% of rural households in India have access to formal lending institutions. The rest live in financial oblivion and when in need of credit, have to depend on moneylenders. Microfinance is one way to meet the financial needs of those at the bottom of the pyramid, and an effective one at that.

The Evolving Role of the Branch Channel

The obituaries for the branch quickly followed the advent and rapid proliferation of new-age banking channels – that are available anywhere, anytime and to anybody. Channel banking, which was hitherto considered a subsidiary of banking business delivery, is now the new mainstream, and the branch...

Mobile Banking and Payments: What are the U.S. Rules?

Technology is evolving at a rapid rate, and banks are ready to jump on board to meet tomorrow’s challenges today. As part of this revolution, banks are increasingly implementing solutions in the area of mobile banking and payments to address the evolving needs of the marketplace. But questions remain around the compliance challenges...

mCommerce: Enabling Financial Inclusion

Today, mobile phone users far outnumber people with access to commerce and banking services. Thus, mobile phone technology has emerged as the most potential channel for financial inclusion, a major concern for most developing countries. Mobile phones with their extensive reach can certainly play a critical role...

What’s Driving Channel Evolution and Where?

Banking channels of today are nothing like what they were 20 (or even 10) years ago. And their evolution is one that is getting serious attention. What are the key influencers of change in the banking channel? How will these impact the future of banking channels? Amidst all this mobility...

Mobile Banking – A Transformation of Traditional Banking

How comfortable are we with Mobile Banking? Not very much, it seems. Even today, most of us who use mobile banking do so merely to check account information, transfer funds or pay bills. How many of us are aware of mobile technologies like Near Field Communication (NFC)...

An Overview of Multi-channel Banking

It is not an exaggeration to say that digital consumers are like no other. They belong to a generation that is more educated, more technology savvy and better connected socially than any other that came before. If they need information, they will research...

Taking Mobile Banking Corporate

It’s ironic that in a world that has gone mobile, corporate treasurers and CFOs are still tethered to their desks because they need computer access to issue approvals using corporate Internet banking. While consumer mobile banking...

Core Banking

 

Moving towards agility

Both the solution provider and the bank face a dilemma when it comes to replacing core banking. A fear of failure has gripped the IT transformation of the big names in the banking industry. If the rate of success is so low and the challenges so great, should banks stop looking to modernize their core banking ecosystem?

Risk of other programs disrupting a core banking transformation program

This paper illustrates the different challenges that surface during a core banking transformation program because of other transformations happening in parallel.

Strategizing core banking products

This paper provides a deep understanding of the complex task of designing core banking products, and the strategies that software providers adopt to address the intricacies involved.

Core banking transformation: 2012 and beyond

This paper analyzes the key features of an effective core banking implementation and the challenges therein, as well as traces the progress, all the way from implementation to transformation – and beyond.

The Future Core Banking Solution – How Process Centricity will Rule the Market

The biggest challenge that the core banking vendor faces today is to keep the core banking solution in sync with current global industry requirements. The primary reason being that the business of banking is not the same across all geographies. This thought paper proposes a process-centric core banking solution that has the flexibility to be a truly global solution.

Overview of Banking Application Security and PCI DSS Compliance for Banking Applications

The card ecosystem — comprising issuing banks, application developers, technology vendors, and regulators — has taken several steps to secure banking applications and carrier networks against deliberate attack or unintentional breach. This paper discusses banking software application security...

How Banks can Piggyback on the XBRL Wave

Have you ever wondered how it is possible to pay so quickly at the supermarket counter? Or about the nifty handheld gadget that the cashier uses to scan your stuff which sends all the details to the screen? Each item in the supermarket is labeled with a unique barcode. The barcode reader identifies this unique label...

Information Rights Management Solution: Securing Information Exchange in Outsourcing Arrangements

Since quite a while, data security technology vendors have been working on a new offering in the form of an “Information Rights Management (IRM) Solution.” As its name suggests, this solution enables financial institutions to control the rights to digital information...

Corporate Banking

 

Principles of Enterprise Payments

The worldwide payments landscape experienced huge swings in fortunes in the years before and during the recession. Analysts, bankers and technology vendors have proposed different strategies to enable the banking community progress in a world...

Cash Management - An Insight

Traditionally, businesses have believed that profits indicate success. While it is true that profits are one of the key indicators of success,many are now starting to realize that there is something more fundamental to their very survival; and that is ‘cash’...

CRM

 

CRM with big data

The potential, reach and impact of big data technologies is the subject of much debate. Another concept — albeit older — customer relationship management (CRM) has made a huge impact on the business world over the years, directly improving profitability, branding, and customer satisfaction. This paper creates a straight-line connection between big data and CRM, and discusses ways to leverage big data to create an insightful CRM solution.

Banking CRM for the microfinance industry

The microfinance industry faces major challenges. However the changes brought about by the industry in terms of successful implementations and functioning are considerably greater, and hence it is essential to use the right tools like customer relationship management (CRM) to increase...

Customer Strategies

 

Bank Customer Service – ‘Click or Dial’ versus Branch

Indian banks are increasingly using technology tools like touch screen kiosks, Internet banking, and IVRS, which is eliminating the need for human interaction. This thought paper discusses how the bank can fully realize its end goals by effectively balancing the human factor with technology adoption.

A New Model of Personalized Banking for the Future

Changing banks is easier than changing lanes these days. Hence it’s imperative for banks to focus on customer retention. In a hard fought marketplace abundant with choice, customer retention doesn’t come easy. Banks need to make an effort to understand customers’...

Relationship-Based Pricing

Banks have been criticized in the past for treating customers as mere account numbers. Faced with a growing number of challenges, banks have come to realize the importance of leveraging relationships with their customers. This is where relationship-based pricing...

Winning and Keeping Customers’ Trust

IT'S SOMETHING that makes a serious difference to building and maintaining customer relationships. It is part of every organization’s priority list. It’s the glue without which any relationship would fall apart....

Financial Inclusion Strategy to Bank the Unbanked

Saturation of prime markets is forcing banks to look elsewhere for growth. Hence, in recent years, the world’s unbanked population has been at the receiving end of much attention from the financial community. And why not? Estimated at 2.5 billion adults located mainly in East Asia, South Asia...

e - Banking

 

Auditing Norms for PKI-based Applications

The use of alternative channels like the Internet and mobile to exchange information and money is now commonplace. Although some security concerns do persist, the fact remains that systems such as RTGS (Real Time Gross Settlement), NEFT or SWIFT are among the most reliable and safe mechanisms...

What the Future of Online Banking Authentication Could Be

The Pew Internet & American Life Project Tracking survey of December 2010 said that nearly 60% of all Americans who used the Internet did some banking over it. In the United Kingdom, the number of bank accounts registered for Internet banking...

The Importance of Customer Centricity in Internet Banking

Demographic change and technology innovation have left a visible impact on the way that customers interact with their financial service providers. Today, customers rarely step into a branch, preferring instead the convenience, ease of access...

Making Social Media part of Multi Channel Strategy

Today, the banking community is hotly debating the role and relevance of social media to its business. While it is true that banks, which are cautious by nature and need, have not plunged in, there are signs that social media has already changed...

EBAM: Electronic Bank Account Management Made Easy!

For years, companies have struggled to manage their bank accounts which, thanks to the global nature of business, need to be maintained with multiple financial institutions all over the world. In a study of 1,500 corporate organizations, a leading provider...

Deploying Insights from Online Banking Analytics in Incremental Innovation

In its 2010 report on the state of online banking in the United States, a leading ‘digital universe’ research firm said that nearly 60 percent of all Internet users visited at least 1 of the top 20 financial institution websites every quarter. Another telecom research...

It’s Banking First, Social Next

At its most basic, banking can be defined as “the business activity of accepting and safeguarding money owned by other individuals and entities, and then lending out this money in order to earn a profit.” It’s that simple. Yet, I doubt many banks...

Smartphones: Leading Wealth Management to Mobility

Of the different types of mobile phones owned by 5.3 billion subscribers around the globe, smartphones grew the fastest in 2010. Since their launch a few years ago, smartphones have transformed the nature and scale of mobile usage, from merely talk...

Islamic Banking

 

Next generation online Islamic banking portals

Islamic Banking is set for a steady growth, with global assets expected to cross $2 trillion by 2015. Research suggests that half of the global population that follows Islam would opt for Islamic finance, if Islamic Banks offer advanced and innovative services as provided by conventional banking services.

Why India needs Islamic banking

This thought paper provides a quick summary of the facts around Islamic banking, highlights why India needs it, and its challenges in India.

Sukuk and its Growth across Major Islamic Financial Markets

Islamic banking has a come a long way from its initial focal point of ‘interest free banking’. Today it has a diverse range of financial products flourishing throughout the Middle East, Europe and Asia, with assets of approximately US$1.2 trillion as of 2010. The industry is expected...

Retail Banking

 

Reinventing Retail Branch Banking for the Future

Branch banking is at a crossroads. Although it is still the single largest mode of banking, the proportion of branch transactions to the total is falling thanks to the rising popularity of channels like the Internet...

The Future of Retail Banking Lies Within its Channels

In a market chock full of similar products, delivering a strong customer value proposition is one of the most important ways in which a bank can create a space for itself. Post-crisis, the balance of power has shifted clearly towards the banking consumer, who is demanding greater...

Valuable Technologies to Make Bank Branches More Effective

The 21st century will bring about all-embracing convergence of computing, communications, information and knowledge to radically change the business of banking. The growth of high speed networks, coupled with the falling cost of computing power, is making possible applications undreamed...

Leveraging the Branch to Provide Better Customer Experience

As part of a highly commoditized business, banks are seeking new ways of differentiation, customer service being one of them. They are not just aiming to satisfy customers through service; their new agenda is to use service as a tool to build a memorable customer experience...

Online Retail Banking Customer Experience: The Road Ahead

In recent years, customer experience has caught the imagination of banking, as it reinvents itself from a utility business to one that is based on service and enduring relationships. This is a far cry from the banking scenario of 15 to 20 years ago, when the branch was the only available channel...

Enhancing Retail Banking Customer Experience

“Experience” can be defined as “an event or activity which leaves a lasting impression”. From a customer’s perspective, this lasting impression is usually the result of needs well fulfilled....

Treasury

 

Challenges faced by bank treasury systems in handling structured products

Structured products are hybrid financial instruments designed through combination of a bond / deposit / swap with one or more derivatives. They are aimed at providing a customized risk-return investment alternative. The building blocks of a structured product often involve...

The Right Treasury System for Basel III

Responding to one of the worst financial crises in history, regulators made some major changes in the way banks are regulated. One of these regulations, the Basel III accord, has far-reaching consequences for the banking business...

Wealth Management

 

7 Key Wealth Management Trends

Retail banks are being forced to rethink strategies that worked earlier because of the changing expectations of their high net worth clients. With an increasing number of banks offering wealth management solutions, the solution itself is no longer a differentiator. A great wealth management experience is...

Exchange Traded Funds - Its Growth & Challenges in India.

Exchange Traded Funds are essentially Index Funds that are listed and raded on exchanges like stocks. Until the development of ETFs, this was not possible before. Globally, ETFs have opened a whole new panorama of investment opportunities to Retail...

Ruling the Roost – Precious Metals

Over the past decade, the growth that commodities have seen as a unique asset class is difficult to ignore. This commodity boom has given rise to a new class of investors who bet on price movements in commodities. ...

Financial Planning Services

Traditionally, banks were defined as financial institutions for safe custody, loan, exchange or issue of money for the extension of credit and for facilitating transmission of funds. While these remain as the core services offered, a host of additional services have come under the ambit of revenue generating avenues for banks....

Understanding the Financial Product Life Cycle

Some financial and investment products have been around since decades. The most successful ones have attracted investor attention by providing consistent returns or maintaining a favorable balance between risk and reward. There are a host of financial products...

Role of Alternate Channels in Banking and Wealth Management

Recent studies show that eighty percent of customers are not interested in purchasing investment products over electronic channels or phone; they would rather meet a financial expert or analyst in person...

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