Data Warehousing and Business Intelligence hold the key to Indian banking growth: CII Summit
Speaking at the second plenary session titled ‘Business Intelligence in Banking’ at the ongoing two-day CII Banking Tech Summit 2006 today, Dr Jeremy Gwee, Solutions Executive – Risk and Compliance, IBM Asean /South Asia, IBM Global Services India Pvt. Ltd., termed business intelligence as a necessary utility. The purpose of Data Warehousing and Business Intelligence is about effectively managing your bank and the vulnerability of your bank, he said.
Commenting on the trend of outsourcing, he emphasized that there is a limitation to what you can outsource. “Business intelligence is your competitive advantage, you don’t outsource your innermost secrets,” he emphasized.
Delivering the introduction, session chairman, Mr. Krishan Dhawan, Managing Director, Oracle India Pvt. Ltd. pointed out that there is an ever increasing amount of data coming in from all areas of banking operations.
Speaking on ‘Enterprise Performance Management: CPM, RAPM: Effective Tool for Industry,’ Mr. Dhawan described CPM as the methodologies, metrics, processes and systems used to monitor and manage the business performance of an enterprise, ‘where strategy and planning meet execution and management.
“The key is the sheer availability of data. While accessing data was a challenge in the past, today the challenge is managing data. Banks are going beyond the basics and with more data available, management can ask more questions facing bankers’ day-to-day responsibilities,” he pointed out.
Providing the industry perspective on ‘Data as an Asset: Data Management Challenges in a Banking Enterprise,’ Mr. C N Ram, Head – Information Technology, HDFC Bank Ltd., stressed that everything depends on the organisation’s attitude towards data. “You have to have faster processes, intelligent data mining, business intelligence is going to be defining solution for retail-based organizations. The question is what do customers want and what can we do, because the time to interact customers is so short and their attention span, so limited,” he explained.
Commenting on ‘Data Mining and Customer Scoring in Retail Banking,’ Mr. Sudipta K Sen, CEO and Managing Director, SAS Institute (India) Pvt. Ltd., pointed out that the technical challenge was accessing data from disparate sources, integrating it in a scalable repository, improving data quality, acquiring robust and efficient tools for data analysis, implementing tools for data exploitation and delivery, while providing a system that is flexible and easy to maintain.
“The benefit of in-house credit scoring and development is that it is fast, affordable, flexible, accurate, secure, Basel-compliant with reusable skills and a corporate knowledge base,” he said.
During the previous session on ‘Compliance & Governance Issues – The Technology Perspective,’ Mr. Lalit Sawhney, Senior Vice President, Reliance Infocomm Ltd. highlighted the role of Telecom as an ‘Enabler for Efficiency.’
“Deregulation has thrown up the biggest challenges and the biggest opportunities for the Indian banking sector. A huge number of foreign players are coming in with deep pockets and thankfully a lot of the technology is allowing us to level the playing field. Today telecom is at the heart of every modern banking service,” he emphasized.
Mr. Hanuman Tripathi, Founder and Managing Director, Infrasoft Technologies Ltd., focused on Anti Money Laundering implementation technologies, emphasizing that cheaper solutions should eb avoided because they did not provide a roadmap for the future.
Mr. Madhav Pai, Business Manager- Financial Services, SAP India Pvt. Ltd. focused on Basel-Pillar 2 Regulatory Requirements Through Technology and some of the issues faced by the Indian banking system. “Many banks are still in the process of implementing core banking, their branches are spread across the country so data collection is an issue. Cleaning the data and reconciling it can only take place after that,” he pointed out.
Mr. Sivarama Krishnan, Associate Director-Business Solutions, PricewaterhouseCoopers Pvt. Ltd., spoke on the implications of ‘Identity Theft,’ explaining the cost to the victim and the organization. “Identity theft is expected to touch 500,000 to 700,000 in 2006, it’s a global problem. The nature of identity theft is ever changing with the threat more likely to come from insiders who have access to large personnel and financial databases. The real issue is not about monetary loss but the negative effect of fraud. There is a need to recognize the problem and create awareness,” he said.
The third plenary session focused on ‘Information Technology-The Key Differentiator’ had Mr. N Ganapathy Subramaniam, Vice President & Head Banking Industry Practice, Tata Consultancy Services Ltd., as the session chairman. The other speakers included Mr. C M Raman, General Manager, Syndicate Bank; Mr. Atul Pradhan, Partner, Advisory & Analytics India Pvt. Ltd.; Arvind Chandrasekar, National Manager – Business Development, AMD India and Deepak Verma, Country Head-Enterprise Broadband Business, Reliance Infocomm Ltd.
16 January, 2006