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March 04, 2010

2+2=5: The Modular Approach for Treasury

A universal remote control is under-utilized if all you have is a T.V. Not to mention wasteful expenditure!

And, the same concept is applicable even in case of the new-age banking solutions, especially treasury systems. Of course, having a comprehensive suite of functionalities is nice but if all its modules are not going to be immediately utilized then going the modular way may be the  best way to achieve higher efficiency and lower cost of ownership.

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February 12, 2010

A modular option for treasury implementation

Small and medium-sized banks are often in a quandary about renewing their treasury systems. Implementation is not just a complex, risk-bearing, expensive affair; it could take so long that by the time it’s done, the original objectives may have changed. What’s more, those with modest treasury operations may not need the entire repertoire of functionalities built into a full-fledged solution. 

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February 03, 2010

Yes. Agility and Innovation go hand-in-hand!

Agility is not about “fastest-finger first”. Rather,  it  is an attitude, a value system, a willingness to be nimble of mind as well as quick of body. It is about understanding that to achieve greater competitive advantage and higher shareholder value, organizations need to innovate  consistently – moving quickly and thoroughly through product and process development – in other words, be more agile. Clearly, there is no place for status quo.

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January 20, 2010

Financial Inclusion in India: The market is ready. And banks.

No-frills accounts, the beginning was modest. Encourage small savings and enable customers to perform basic cash transactions without imposing conditions of minimum balance maintenance. But banks soon realized that by maintaining such a narrow focus and seeking to enable only the most basic transactions such as account or deposit creation among the unbanked community they are losing out on perhaps a very lucrative market. While estimates differ, most put down India’s bank account penetration somewhere between 40 and 50 per cent.

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December 18, 2009

Is your Treasury Truly Agile?

Soaring customer expectations have not only transformed retail banking but have also influenced the way bank treasuries operate. Plain vanilla FX and money market deals are but hygiene today. Treasurers are busy structuring complex deals for their customers; while exotic options are commonly found, plain vanilla American and European options are getting rarer. The focus on risk management is growing as well, as treasurers strive to comply with global regulatory mandates.

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December 11, 2009

“Hello Mr. Smith! So did your little girl enjoy her birthday party yesterday?”

So asked the teller, D. Smith was connected to, when he reached his bank one grey Monday morning. No! Mr. Teller had not set eyes on Smith ever...nor had Smith dealt with him before. In fact, Smith was not even surprised. His bank always seemed to have a little window to his life open...and of course a way to quietly brighten dull blah mornings...even if only a wee bit.

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December 07, 2009

IT and Channels: The twin engines of banking innovation?

Although channels have been the top focus area for banking innovation in recent years, they haven’t run out of steam. Most banks today have a good vision for their channel strategy – one that builds a strong partnership with customers and puts them firmly in control of the relationship. A few interesting examples on how banks across the world are powering their innovation agenda using channels, technology or both.

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November 26, 2009

UK Banking: What’s Emerging from the Flux

The financial environment in the UK is in a state of unrest - banks’ offerings are being revamped, regulations are changing fast, newer business models are coming to the fore, more players are entering the fray, technologies deployed are transforming progressively and the modus operandi at banks is altering rapidly. The result? Changing customer expectations and a climate that lacks sureness. So, where do the answers lie? Banks are as yet exploring.

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November 25, 2009

Channels: Really It's More Than Just Channels...

Banks have invested tirelessly in channel and process transformation to improve end-user experience. But you'll agree, only certain innovations, primarily on the channel front, have created visible impact on customers. Which leads me to ask whether there's a way by which banking innovation can be more in-the-face? How about innovating with customer interactions?

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November 17, 2009

Multi-Channel Strategy – A Platform for Banking Innovation

Branch: The Twists in the Story Continue…

Undoubtedly new channels have revolutionized the way people bank. And yet, branch networks thrive. A reality reflected in the discussion topic at a recent conference on multi-channel distribution that I attended.

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November 12, 2009

Innovation: Is your bank down with it?

O yeah! Who hasn’t heard of it…the competition that’s getting tougher, margins being squeezed, new entrants…new business models…regulatory requirements growing by the week...and FINALLY banks thinking up of ‘innovation strategies’  to beat it all... wham!

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November 04, 2009

Why Banks Must Bite the Innovation Bullet

The strategic importance of banking innovation as a mantra for all-weather survival, today, comes from its potential to lead banks away from a crisis-torn past to a better, albeit, changed future.

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October 29, 2009

And what if Gen Y does not need bankers??!!

You wouldn’t argue it out, when I say using broad brushstrokes to segment a bank’s customer base is passé. While ‘segment of one’ is what the banking world is moving towards, at the least multiple criteria like homogeneity of behavior, aspiration, value, culture and habit – must necessarily be taken into consideration. My bank probably realized this a couple of years ago when a 20-something, tech-savy, 6 figure-salaried Gen Y customer stepped through its doors and demanded to access her account online. For such customers the mobile is almost an organic extension of their selves, while wi-fi, tweets and on-the-go acceptable lingos. They don’t have time to visit bank branches or wait patiently while the call-centre agent puts them on hold. In fact, they may not even opt to use the inevitable suggestion box at the branch or ATM. Instead their verdict is often plastered across blogs, tweets and discussions on the world wide web…often cluing in your other customers and competitors before you!

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October 28, 2009

Process Innovation: From the Customer Side of the Fence

Through the flood of mails that I typically wade through everyday, I chanced upon a mail from my bank, reminding me that I had missed an installment payment. Gritting my teeth, I prepared mentally for a frustrating chat with the poorly informed call center executive, then downloading paper documents, making out a cheque, couriering the same… the list seemed so painfully long.

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September 24, 2009

Incremental Banking Innovation: Taking Small Steps towards Sustainability

The banking industry is not known for big-bang innovation; neither has it experienced its disruptive effects unlike other industries. Weak consumer demand for unique products may have as much to do with this as the fact that the long lead times of banking innovation allow competitors to catch up, thereby offering little advantage for first movers or innovative “upstarts”. Banks have also not followed the 'how fast' but the 'how far’ approach to innovation. Hence, while most banking innovation has been incremental in nature, it has served its practitioners well, especially when it focuses on those changes that are simple, convenient and sensitive to the customer.

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September 10, 2009

Banking channel innovation: Not over and done with

If I had to name one facet of banking that had changed beyond recognition, it would most certainly be the delivery channel. It’s quite unimaginable how banking services has freed itself from the clutches of the branch to become available all the time and everywhere!

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September 09, 2009

DDA innovation: Many roads, one destination

With financial safety being the current flavour of retail banking, Demand Deposit Accounts (DDA) are receiving much attention. While different banks may innovate on their DDA business in different ways to make them more appealing, their end goal is to offer the right combination of product, service and channel to each customer at the lowest possible price.

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August 26, 2009

Why banks must play “follow the (innovation) leader”

Do you remember the time when a few retail-focused banks set up in-branch café lounges to give customers a richer experience? Down the years, banks have borrowed ideas from other industries to innovate various aspects of their business – the patterning of loyalty programs as per the frequent flyer model is probably the best example.

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