Page 237 - DMGT303_BANKING_AND_INSURANCE

Banking and Insurance

Notes

Task Find various Citibank online banking services.

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Case Study Federal Bank, Technology Driven Growth

Bank Profile
Federal Bank is a fast growing premier private sector bank in India with
business exceeding INR 3,600 million and INR 61.3 million. The bank has
565 branches, 16 administrative offices and 460 ATMs across India with a
customer base of 4 million across the country. Technology has played a
major part in the bank’s aim to differentiate itself to its customers. ATMs,
Internet, mobile banking and other channels have broken the barriers of
location and time, and have expanded the reach of the bank’s operations, earlier confined
to the branches.

Across the globe, banks focus on IT investment protection, best use of available resources
and reuse of developed components. Even though the objectives appear to be simple,
putting these into practice has been a tough task and very few organizations have
accomplished these objectives on a scale that is comparable with the global standards and
demonstrated perceivable benefits. Federal Bank is one of the very few organizations that
have accomplished these objectives.
Key Business Drivers

One of the main challenges on the way to growth for Federal Bank’s management team
was to choose between a packaged core banking solution or to continue leveraging its
proprietary system. The bank envisaged aggressive plans for growth - both organic and
inorganic, and the team ultimately felt that the existing proprietary system was not capable
of meeting requirements due to its rigidity. The commitment to goals and an organization-
wide attitude to welcome the change were most important for the final decision in this
regard. As per the management at Federal Bank, to move to a new generation core banking
solution, it was essential that:

 The new solution was capable of accommodating and building upon existing
products that the bank offers and also help bank release futuristic products
 The new solution significantly improves the customer’s banking experience

 The system is capable of interfacing with various delivery channels like ATM, Internet
banking and so on
 The new solution helps the bank comply with regulatory requirements The next
step was the selection of the packaged solution
 Federal Bank framed a well-defined and clear-cut plan for selection of appropriate
system identifying the strength and weakness of the recourses and infrastructure
available
 A strong pool of experts was identified to lead the mission
 A thorough selection process was initiated which resulted in three shortlisted
solutions
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