presentation robinroy

8/4/2019 Presentation ROBINROY

1/19

PwC

BANKS EDUCATIONIST CONFERENCE

HYDERABAD

281105


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PwC

Indian banks are facing substantial competitive pressures as banking

landscape gets redefined

BANKS

Deregulation

Increasing financialdisclosurerequirements andcredit ratingrequirements forbanks

Basel-IIrequirements,income recognitionand provisioningstandards

Greater managerialautonomy to banks

Consolidation /Increasing M & Aactivity

Privatisation /corporatisation / IPOs

Increasing availabilityof risk managementproducts likederivatives

Managing assetquality, NPA

Improvingproductivity

E-Business

Forces shaping banking sector


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Major drivers for Banking Sector, world wide


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Proposition:The Challenges of building a

Financial Brand

CONTENT

CHALLENGE

BUSINESSCHALLENGE

EXECUTIVE

CHALLENGE

AnyOther??

FinancialBrand

Products

Profiles

Skill sets

Relationships

Speed ofresponse

ValueNetwork

ChannelConflict

ExceptionHandling

Out-tasking

E-processEdge


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Imperative: New Business Initiatives

The new business initiatives coupled with changing customer profiles are being partly

addressed by technology enabled support infrastructure in banks. To successfully implementits business strategy, banks will need to conduct an organization restructuring initiative to

ensure seamless conduct of multiple business processes for every business unit

CustomerRelationship

Management

InfrastructureSupport

Product /

Service

Development

Changing customer profiles Increasing demands by

customers for variedservices

Higher expectations ofservice quality especially foranytime, anywhere banking

Increased focus on retail banking

Tie-ups with financial institutions to market thirdparty products

Foray into merchant banking

Technology upgradationtriggering the need forredesigned processes

Increase effectiveness ofthe HR function


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IT as a

Ecosystem


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IT & Business Dynamics

Overheads

Technologyat the heart ofit all !!


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Key BankingTechnology Aspects

Cost Cutting Cost through Integration Better Information Management

Risk ManagementComplexitiesEasier Risk IdentificationEasier to Assess Risks

Customer Reaching Customers Faster Managing Diverse Needs

Competition Competitive Edge in

its Strategic Group

The winners will be those institutions that tie their technology to their

strategies in order to meet their challenges.

Performance & Evaluation Better Metrics to Benchmark

Against Objective Evaluation Process

Technology- leads the Winning Combination


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Importance of core Banking solution

Benefits of CBS Faster Response to Customer Demands

Allows Faster New Product Developments

CBS Architecture Allows for Existing Products to be Quickly

Customized

Online Validation of Data at the Time of Entry

Independent from the Organization Structure and Supports thefour Primary Entities Customer, Account, Product andBusiness Organization

Runs in Real Time Update Mode


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Technology creates new potential as well as

new challengesNew information technology impacts jobs in the organization in the following areas. E.g. By evaluatingthe impact of technology in operational areas, we can estimate the corresponding changes in theworkforce profile.

Shifts in Workloads:

Changes in the tasks, roles andresponsibilities for usersDoes more empowerment meanmore work?

Multiskilling:

What new skills are required: systems,functional, data analysis, management.I can check account balances and creditline immediately.

Accountability:Decision MakingCapabilities/Processes:

The way decisions are made and/or whomakes the decisions. Given the informationI have in the computer, were not able totake decisions on providing services to thiscustomer

Integration and Timing:

How and when groups within theorganization interact to perform certainactivities and achieve set performancemeasures. In order to disburse the loanI must receive the sanction letter twoweeks beforehand.

How we Communicate:

The way the departments andindividuals communicate.That information is now on-linefor you to view.

CENTRALIZEDBANKING

APPLICATION

What responsibilities individuals havein terms of entering accurate andreliable data, as well as analyzing dataThe application forms must becompletely and accurately filled for meto generate an accurate scoring report.


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Initiatives Taken as Winning Strategies

Optimal HRdeployment

Slashing Expenses

Total QualityManagement

Product Structuring

Initiating continuousimprovement

Attempting CultureChange


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A Process Risk Check FrameworkAll the types of risks are verified through checklists when designing processes and risks are

classified with the action plan detailed for controlling the same. Every process is run througha set of detailed checklists for each type of risk.

Strategic Risk

What are the inherent risks in the criticalstrategies adopted by the organization

How will the organization identify,

quantify and manage these risks?

What is the risk appetite of theorganization?

What risks emanate from e-businessdevelopments?

Operational Risk

What are the risks inherent in the

processes which the organization has

chosen to implement?

How does the organization identify,

quantify and manage the same?

How does the organization adapt its

activities as strategies and process

changes

Financial Risk

Have operating processes putfinancial resources at undue risk?

Has the organization incurred

unreasonable liabilities to support

operating processes?

Has the organization succeeded in

meeting measurable business

objectives?

Information Risk

Is our data / information / knowledge

reliable, relevant, and timely?

Are our information systems reliable

and secure?

Do our security systems reflect out e-

business strategy?


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Process ExampleNew Sales Process

Establish initial customerdetails (if existingcustomer, access

records) name addresscontact number unique

ID

Establish initial customerdetails (if existingcustomer, access

records) name addresscontact number unique

ID

StartStart

Establishenquirers needs

and wants.Gather anypreliminaryinformationrelevant to

enquiry

Establishenquirers needs

and wants.Gather anypreliminaryinformationrelevant to

enquiry

Existingcustomerservice

Existingcustomerservice

torelevantprocess

to

relevantprocess

Determinerelevant solutions


no

Newproduct

application

Newproduct

application

Go toapplication

Go toapplication

no

Informationonly

Informationonly

Furtherrequirements

Furtherrequirements


and provideinformation


and provide

information

yes

yes

no

yes

Stillinterested

Stillinterested

Have asolution

Productselection andcomparisons

Productselection andcomparisons

Third partyThird party

Notify nosolution

Notify nosolution

Collate datainform

marketing

Collate datainform

marketing

Recordreason why

not accepted.

Recordreason why

not accepted.

End

no

no

yes

yes

essential detailsfact find

essential detailsfact find

New Sales Process


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Processes would be redesigned using the Zero Base approach through a series of workshops to ensure buy-inand ownership

Possible Approach & Methodology

Does the work need to be performed at all?

Can the activity be performed differently?

Zero base

Which are the NVAs (Non Value Adding Activities) in the

process?

Is the customer willing to pay for it?

Eliminate

Can the work be outsourced?

What are the costs & potential benefits?

Do v/s Outsource

Are the core processes customer-centric? Would the re-engineered processes help eliminate organizational

silos?

Re-design

Can existing IT systems be leveraged to enable radical process

redesign?

How to improve ROI on the IT investment?

Information Technology


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Customer Management

K

NOWLEDGEMANAGEMEN

T

INFORMATIONMANAGEME

NT

SERVICING

PRODUCT MANAGEMENTOPERATIONS

DELIVERY

DevelopProducts

ManageProducts

Process & MaintainAccounts

Manage Customer Relationships

SUPPORT FUNCTIONS

Sales Force Call Center(s)ATMs / POS Desktop Banking

Manage Delivery Channels:

iTV Tele-Marketing BranchesPost Third party

ServiceCustomers

Market &Sell

OriginateCredit

ExcessManagement

Internet

FinanceHR TreasuryITRecoverAssets

ManageProperty

Money Transmission

Monitor Credit

Marketing

CUSTOMER

CoreBanking

Administration

The Winning Modeltechnology driven customer focus


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Redesign the HR Infrastructure to exploit theopportunities provided by the environment:

Redesign HR systems and policies in the areas of:

Workforce planning and deployment

Rewards & Incentives

Workforce performance management

Training & Development

Career & Succession planning

Talent sourcing

Imperatives: Impact on the HR function


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Cont..

Ensure that the HR function is geared to addressthe changing business environment

Capability to handle workforce issues like deployment andreskilling arising out of emerging opportunities

Capability to address the workforce requirements of the new

business initiatives

Capability to handle the workforce issues arising out of the growth

plans of banks specifically through the acquisition route


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The core performance management system should integrate the collection,

aggregation, management, distribution and analysis of a balanced set of

information to positively affect stakeholders decisions.

Towards A Balanced Approach

BusinessStrategy

DataWarehouse

Program

ApplicationDevelopment

Program

DataResource

ManagementProgram

TechnologyArchitecture

Program

Network/Communications Program

People/ProcessUsers

Subject Areas Geographical Areas DepartmentsBusiness Units

Data Warehousing Strategy

Strategy

Definition

ValidationAccess

Hardware

Software

Communications

Integration

Sponsorship

Profiles

Manage change

Value added

Tools &Technology

People &Process

DATA Tools &Technology

People &Process

BI

Data /Analytics


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PwC

Thank You

Contact: Robin Roy

[email protected] 56691561

098202 98237
mailto:[email protected]:[email protected]

presentation robinroy

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