Finacle Blog

In the race for commercial success are smaller banks destined to always come away second best?

The limited reach and resources of small and mid-sized banks make for an uneven fight in an industry dominated by global behemoths. Creating identity and competitive advantage through innovation is the only way for these banks to take on the Goliaths, but that calls for investment in core banking replacement which is beyond the reach of most. This additionally requires skilled manpower and upfront investments.

Continue reading "The "In-a-Box" Framework" »

Posted by Rajashekara V. Maiya at 5:45 AM | Permalink | Comments (0) | TrackBacks (0)

The Indian mass market segment, broadly defined as 'families having investible surplus of INR 2 lacs to INR 10 lacs', is estimated to consist of more than 18 million families. The segment is further expected to grow at a handsome rate of more than 18%. This large pool undoubtedly offers a significant opportunity for wealth management service providers.

Continue reading "Addressing the Wealth Management Requirements of India's Mass Market Segment" »

Posted by Puneet Chhahira at 8:19 AM | Permalink | Comments (0) | TrackBacks (0)

Group lending, in which a loan is made out to a group whose members act as guarantors for each other, is the foundation of microfinance the world over. Hinged on enforcing fiscal discipline through peer pressure, its efficacy is reflected in a high repayment rate of 95% to 98%, a target that mainstream lending can only aspire to at present.

Continue reading "Group Lending: Strength in Numbers" »

Posted by Anish Kanayi at 2:40 AM | Permalink | Comments (0) | TrackBacks (0)

How can you present a convincing case for core systems transformation to your bank’s top management that will justify both its considerable cost and risk?

Continue reading "Building a convincing case for core transformation to the top management" »

Posted by Balwant C Surti at 12:13 PM | Permalink | Comments (0) | TrackBacks (0)

Over the years, your bank has built layer upon layer of IT infrastructure, from mainframe and client server applications to ERP systems and custom applications. This IT snarl is beset with problems – cost, rigidity and lethargy being some of them. If your bank is planning to transform its core systems, how can it ensure that the new applications talk to and peacefully co-exist with the old?

Continue reading "Can my new age core on transformation peacefully co-exist with my legacy IT infrastructure?" »

Posted by Balwant C Surti at 12:11 PM | Permalink | Comments (0) | TrackBacks (0)

You recognize that there is a strong business case for core systems transformation within your bank, but are wondering whether others will see it your way. Given the apprehensions surrounding core banking transformation, how do you get key stakeholders on board?

Continue reading "Core banking transformation and stakeholder buy-in" »

Posted by Balwant C Surti at 12:05 PM | Permalink | Comments (0) | TrackBacks (0)

Think...and while you are at it, think Bank-in-a-Box (BIAB). The bank is devising ways to spruce up efficiency and enhance their competitive edge through various means; perhaps a new product or service, but constrained by the legacy systems that are not up to it. And the bad news is that budgets are tight. The good news is that modernizing core systems to achieve these goals is now possible. And at an affordable cost.

Continue reading "Modernizing Core Systems at Affordable Costs" »

Posted by Rajashekara V. Maiya at 4:31 AM | Permalink | Comments (0) | TrackBacks (0)

Banks in the U.S can no longer afford to go slow on core banking modernization. With the dust settling on the financial crisis, the view of the future just got clearer. Changes in regulation, customer outlook and demography will bring forth new expectations; how well banks adapt to these may well determine their future.

Continue reading "New Chapter in U.S. Core Banking" »

Posted by Rajashekara V. Maiya at 10:11 AM | Permalink | Comments (0) | TrackBacks (0)

Social and development banking is emerging as an exciting landscape. The unbanked have   special needs - proximity and ease of access, flexibility in savings and repayment schedules, simplicity and speed in processing, small product sizes for loans and low-balance savings accounts, basic financial education and information. More than anything else it is the convenience in banking as simple as buying something in the Kirana/mom-and-pop shop next to his house.  With pressure building up to continually explore new growth avenues, banks are  recognizing the potential  of  the previously unbanked market – In India alone  the  rural population counts for nearly 70% of the entire population i.e. a multifold increase in customer base. According to a 2007 survey, the number of RRBs serving this population is around at 91 with over 14,000 branches, spread across 585 of the 622 identified districts.

Continue reading "Banking the under-banked: Robust back-end support is non-negotiable for RRBs" »

Posted by Rajashekara V. Maiya at 3:47 AM | Permalink | Comments (0) | TrackBacks (0)

Bancassurance business has slowly and steadily gained acceptance worldwide. In pursuit of fee-based income avenues, banks across geographies have joined the Bancassurance bandwagon implementing various business models like setting up joint ventures, working as pure distributors, setting up new insurance businesses and acquiring existing insurance firms. In certain cases, a reverse flow has also been witnessed whereby insurance companies have set up or acquired banking businesses to compete with the serious Bancassurance players.

Continue reading "Bancassurance – time to reassess the IT strategy" »

Posted by Puneet Chhahira at 11:29 AM | Permalink | Comments (3) | TrackBacks (0)

The economic environment is barely predictable, bringing with it unforeseen forces that sometimes shake the very foundation of the banking industry. In my interactions with the moguls of the industry a key facet, which emerges time and again, is the need to build organizations that are able to engage, satisfy and deliver greater value to stakeholders on a continuous basis.

Continue reading "Evaluating Core Banking Vendors – Not as Simple as Fighting a Price War" »

Posted by Rajashekara V. Maiya at 4:42 AM | Permalink | Comments (3) | TrackBacks (0)

We’re up to our ears in cost cutting anecdotes about diverse (some frankly bizarre!) measures that banks have adopted to weather the economic storm. Sure, cost consciousness is a good thing, but a slash and burn policy may actually cause more harm than good in the long run. The real need of the hour is improvement in efficiency. Yes! This calls for some cost cuts, but banks must be watchful against missing the woods for the trees.

Continue reading "Banking efficiency is NOT equal to cost cutting" »

Posted by Chandramouli Kundagrami at 11:17 AM | Permalink | Comments (2) | TrackBacks (0)

A statement as ridiculous as saying “A core banking solution, is all it takes to transform”.

Most banks will agree, when I say that a transformation partner’s agenda must definitely go beyond technology enablement. The aim should be to empower bankers with holistic and integrated ammunition to develop new, improved capabilities, and build a more resilient, yet flexible business organization. The transformation journey must help the business emerge with the prowess and agility to respond to changing business dynamics, across multiple dimensions.

Continue reading "Having a bank account is all it takes to get rich." »

Posted by Basudev Banerjee at 5:17 AM | Permalink | Comments (0) | TrackBacks (0)

A thug considering bank robbery would possibly have to yell just that, standing in a long line at the bank.

Not surprising, considering most banks have built islands of automation, and the operational complexities and redundancy that surrounds it is bound to diminish their ability to respond to customers. It doesn’t take a genius to see that banks must connect processes and information in ways that allow them to flexibly react to the dynamics of customers and competitors. What this really means is that a bank’s agility would be significantly improved when it leverages an integrated banking platform.

Continue reading "“This is a hold up! I haven't got all day. Please keep the line moving!"" »

Posted by Jaymalya Palit at 6:36 AM | Permalink | Comments (0) | TrackBacks (0)

My little girl is a sight to watch when she gets to open a box of her favourite assortment of candies. Not for her the red apple flavoured one first…followed by a lime or cherry. It is chubby fists stuffing them all fast into her mouth…the mix of tastes all so evident in her gleeful face. A perfect instance of how sometimes innovations don’t necessarily have to work in increments.

Continue reading "Among other things let’s mashup!" »

Posted by Rajashekara V. Maiya at 6:32 AM | Permalink | Comments (0) | TrackBacks (0)

But not always fun. The low-cost carriers…the quickie city-tours… hotel rooms with just the bare essentials…you feel so far from the familiar comfort of home. And wonder how you ever thought you were ready for this. Come to think of it, banks having embarked on a multi-country transformation journey, often curtailed by tight budget and tighter business mandates, are just as flummoxed by the surprises that come their way - several of them not particularly pleasant.

Continue reading "Around the world on a budget is exciting, but…" »

Posted by Mahesh R at 4:25 AM | Permalink | Comments (0) | TrackBacks (0)

One thing this melt-down has me doing more than ever is reading. Seems to me this is the best way to stay clued in to the market that’s turned quieter, as well as understand the mood of the moment. In any case, reading for me is one of those pleasures that clearly has great business benefits too.

Continue reading "Get your act together" »

Posted by Rajashekara V. Maiya at 10:59 AM | Permalink | Comments (0) | TrackBacks (0)