February 16, 2017

Trends Reshaping Banking in 2017

Posted by Sanat Rao (View Profile | View All Posts) at 12:06 PM

From a bank's perspective, the glass is both half empty and half full as we head into a new year. The financial services industry continues to experience unprecedented change. One set of factors is purely environmental - sluggish global macroeconomic growth that shows no signs of picking up, rising regulatory capital and operating costs, depressed interest rate environments in developed markets, large non-performing assets in developing economies, and devalued currencies in several pockets, to name a few. This is putting further strain on the banking business, which is already bogged down by a marked slowdown in growth and profitability. 

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December 5, 2016

Accelerating journey towards digital banking with a 'Bank within a Bank' model

Posted by Richard Longo (View Profile | View All Posts) at 4:47 AM

Businesses across various and diverse industries have seen rapid disruption in the past few years. One of the major drivers for this disruption is the consumer and how they are coming to expect a Frictionless approach. Some have called it the Uber effect. No cash is needed, it is on demand and simple to use. That experience is what customers are now expecting when interacting in the Ecommerce world.  Many traditional corporates are playing catch-up and some like Sears, JC Penny's, American Eagle, Sports Authority and Barnes & Noble cannot pivot fast enough, leaving them in a position of reporting negative growth or closing all together. Players like Amazon are disrupting their business models by leveraging the latest in technology and rolling out customer centric digital offerings. These offerings appealed to the digitally savvy customers and those companies have grown rapidly over the past few years. 

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November 30, 2016

The Impact of Blockchain Technology: Why Banking will Never be the Same

Posted by Peter Loop (View Profile | View All Posts) at 6:59 AM

Banking will never be the same, with distributed ledger technology. The industry is changing very rapidly. Banks are dealing with the most sophisticated customers in history, whose basic demands include speed, convenience, and personalization. The banking sector is facing unprecedented levels of regulation in the wake of the financial crisis, with regulators demanding greater transparency in banking operations. Economic uncertainty and slowing growth around the world are straining the core business, forcing banks to look at shoring up non-interest income. Last but not least, new, non-banking players are rewriting the banking landscape with their innovative, often disruptive, business models.

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October 28, 2016

Why India is a poster child for global banking models

Posted by Puneet Chhahira (View Profile | View All Posts) at 9:56 AM

Digital disruption is paving the way for newer, more agile banking models and India is becoming the poster child for banks all over the world. Between the innovations in mobile and social banking, and progressive regulations, India has managed to leapfrog the legacy systems and processes that burden most banks in the world.  One of the most recent technology led revolutions in the banking front in India, was the launch of Unified Payments Interface (UPI), by the National Payments Corporation of India (NPCI). The UPI has the promise to be a game changer in the era of cashless payments. Imagine a scenario where you don't have to jump through all the hoops to make a payment, and just need a unique ID, similar to an email ID, to make a payment. Imagine a cashless transaction, that doesn't require you to type out your credit or debit card details.

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October 26, 2016

How Ready Are Indian Banks For Blockchain Adoption?

Posted by Rajashekara V. Maiya (View Profile | View All Posts) at 9:06 AM

Blockchain technology underlying the 'Bitcoin' crypto currency has created lot of buzz in the technology landscape compared to any other technology in the past. Perhaps, blockchain is considered to be the biggest disruption post 'internet'.

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September 19, 2016

Lessons from Big Brother: Banks can teach FinTech

Posted by Puneet Chhahira (View Profile | View All Posts) at 9:36 AM

The rise of financial startups has taken bank bashing to new levels. FinTech has become a metaphor for all that banks should but could never be. Enough and more has been said about what banks need to learn, not to mention fear, from their new rivals.

But there is always another side to every story, and the spate of FinTech-bank collaborations is proof of that. Why else would FinTech companies do a U-turn to partner with the same banks they were supposed to slay? The truth is that while financial startups are doing some things right, they still have a lot to learn and gain from their traditional banking rivals.

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August 29, 2016

The Rise Of The Better Indian Bank

Posted by Puneet Chhahira (View Profile | View All Posts) at 12:38 PM

Every month your bank reminds you that your credit card payment is due. But on the rare occasion that you forget to pay, I really doubt anyone bothers to check with you once more before slapping that late fee. Isn't that strange considering your bank knows you intimately - your bank balance, creditworthiness, the fact that you always pay on time - and therefore knows with reasonable certainty that this is a one-off slip up? Shouldn't the bank have at least shown you the courtesy of a call?

A bank that truly worked for the wellbeing of its customers certainly would have. This is what separates the better bank from the rest of the field. Unfortunately most banks do not live up to their promise of customer-centricity, or to their customers' expectations. That leaves the door wide open for non-banking players, such as Fintech companies, to take a quick share of the market by offering products, services, solutions and experiences that really work in their customers' favor. 

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August 2, 2016

Benefit with Blockchain

Posted by Rajashekara V. Maiya (View Profile | View All Posts) at 10:38 AM

Some of you might have heard of Blockchain. You might have read that it could disrupt and change banking, payments and other financial services forever. Perhaps you are wondering how it might affect you, especially if you are employed in the financial services industry. 

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April 12, 2016

Defining Digital

Posted by Puneet Chhahira (View Profile | View All Posts) at 5:58 AM

An effective digital strategy can boost profitability by 40 % or erode it as rapidly as 35% in the next 5 years - if you don't get it right, says one study. Another says digitization is at top the agenda at retail banks, ahead of all else. There is universal agreement that the future of banking, indeed every business, is digital. Most banks you speak to are cognizant of the need to digitize, and fast; a number of them have already got a plan going.

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April 5, 2016

Niche services in banking - It's the icing that matters

Posted by Ritesh Andley (View Profile | View All Posts) at 4:43 AM

For years together, any product innovation in the banking world was focused around same or similar segment of customers. A significant shift in the target segment for financial services was brought about by the advent of mobile money in the developing world, about a decade back. Telcos used mobile wallets to target a segment of users, hitherto considered as an unviable segment by the traditional banking industry. Nevertheless, the user segment targeted by wallet services bring in inherent roadblocks like choice of UI, distribution channel, customer education etc.

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April 1, 2016

Open Banking

Posted by Arun Krishnan (View Profile | View All Posts) at 10:55 AM

Last year the European Union Council passed the revised Payment Services Directive (PSD2) that mandates the opening up of banks' payment APIs. The National Payments Corporation of India has introduced unified payments interface APIs, wherein anyone can initiate a payment transaction and create unique payments experiences.

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March 28, 2016

Insights drive all aspects of banking

Posted by Venkatesh Vaidyanathan (View Profile | View All Posts) at 10:10 AM

The Fintech revolution is threatening to completely disrupt conventional banking models. But for most Fintech startups, access to consumer data is still a huge challenge. In contrast, the incumbents have a wealth of transactional and behavioral data at their disposal. In the digital paradigm, the flow of data will only increase as each bank accumulates terabytes of data from a variety of external data sources.

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March 17, 2016

The Internet of everything

Posted by Sunder Madakshira (View Profile | View All Posts) at 11:45 AM

The Internet of Everything (IoE) can potentially create incremental economic value of up to US$19 trillion within this decade. As everything from automobiles to refrigerators to kitchen containers become connected and smarter, banks have a huge opportunity to get closer to their customers' lifestyles and financial needs.

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March 2, 2016

Mobility and wearables

Posted by Ethan Wang (View Profile | View All Posts) at 11:57 AM

The mobile phone continues to evolve rapidly in terms of functionality, processing power, and embedded services. This means that the goalposts for mobile-first banking are constantly being moved. Then, of course, there are wearables, tipped to become the second-largest selling consumer electronics product, behind smartphones, by 2020.

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February 25, 2016

Banking on cloud

Posted by Sheenam Ohrie (View Profile | View All Posts) at 9:39 AM

There is this telling anecdote of how an e-commerce giant discovered that most of the banks in a particular market did not have the infrastructure to handle the estimated transaction volumes of a one-day only 'Big Billion' sale. Now, it is hard to think of a provisioning strategy that could solve that problem without leveraging the potential of the cloud.

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February 19, 2016

Cybersecurity - A strategic strength for truly digital banks

Posted by Rajashekara V. Maiya (View Profile | View All Posts) at 7:59 AM

Cybersecurity threats are the unpleasant consequence of increasing digitization. The more connected the world becomes, the more points of entry there are for cybercriminals. Over the past few years there have been many disconcerting revelations of billions of dollars being skimmed off some of the largest financial institutions in the world. There have also been a series of extremely critical data breaches at some of the most technologically savvy banks.

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February 11, 2016

Automation in the Truly Digital Bank

Posted by Venkatramana Gosavi (View Profile | View All Posts) at 9:28 AM

The banking back-end is no stranger to automation. However, in a digital banking model, automation will play a more prominent role both in terms of scale and sophistication.

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January 20, 2016

Bank in an Ecosystem

Posted by Rajashekara V. Maiya (View Profile | View All Posts) at 11:39 AM

Creating the world's largest transportation company without owning cars or the world's largest hospitality company without owning a single property - digital technologies have not merely transformed entire industries, they have managed to upturn many established business models and mindsets.

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January 5, 2016

The customer isn't one

Posted by Puneet Chhahira (View Profile | View All Posts) at 7:00 AM

Identical individuality is a pre-digital concept. Digital customers expect their banks to recognize their individual identity, their contextual needs and create personalized solutions that are relevant to their unique financial life stage. Customers want financial partners, rather than financial service providers, who will help them achieve their financial goals and aspirations. And so forth.

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December 31, 2015

Dealing with the Risk of Disintermediation

Posted by Amit Dua (View Profile | View All Posts) at 12:54 PM

Mobility has transformed the underlying calculus of banking. As a generation grows up accustomed to ubiquitous access to yesteryear's supercomputer on their person, mobility becomes more than a channel; it becomes the focal point around which a majority of customers construct their expectations of banking.

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December 8, 2015

Partnerships are the Future of Banking

Posted by Amit Dua (View Profile | View All Posts) at 12:49 PM

Mobility is no longer a concept whose potential can be defined merely by enumerating handsets shipped, connections created, apps launched or data consumed. It is a phenomenon that is estimated to have generated a total economic value of almost US$ 10 trillion last year, which makes it the third largest economy in the world after the U.S. and China. I should also probably mention the 11 million jobs that it was directly responsible for creating around the globe.

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November 25, 2015

Get, Set, Digitize

Posted by Amit Dua (View Profile | View All Posts) at 12:02 PM

The race to future banking glory between banks and credit unions has the makings of a David versus Goliath contest. And the reason the credit unions are in with a chance is that the (American, but globally representative) millennials have leveled the playing field by proclaiming (in the Millennial Disruption Index study) among other things that one bank is pretty much like the other, that Google, Apple and Amazon are likely to come up with more exciting financial offerings than banks, and that they don't really care about big banking brands.

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November 5, 2015

Focusing on experience to drive revenue

Posted by Puneet Chhahira (View Profile | View All Posts) at 11:22 AM

Credit Unions are fully invested in the potential of digital channels like mobile and online to transform their member experience. But their focus has predominantly been on enabling self-service and ensuring security. Success with more advanced opportunities like cross-selling, targeted marketing, member education or ensuring a consistent cross-channel experience has been rather limited.

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May 11, 2015

Banking in the Mobile Economy

Posted by Rajashekara V. Maiya (View Profile | View All Posts) at 6:45 AM

Mobility is no longer a concept whose potential can be defined merely by enumerating handsets shipped, connections created, apps launched or data consumed. It is a phenomenon that is estimated to have generated a total economic value of almost US$ 10 trillion last year, which makes it the third largest economy in the world after the U.S. and China. I should also probably mention the 11 million jobs that it was directly responsible for creating around the globe.So, how has the mobile phenomenon changed banking and other financial service verticals?

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April 28, 2015

Retail Banking Goes Upwardly Mobile

Posted by Sai Kumar Jayanty (View Profile | View All Posts) at 6:30 AM

If the Internet was instrumental in transforming the fundamental dynamics of banking interactions, mobility promises to push the envelope even further. Innovative technologies, from Near Field Communication to Augmented Reality to Social Analytics, are not only simplifying transactions by eliminating traditional pain points, but are also playing a significant role in making banking an immersive experience.

Retail was one of the first industries to be disrupted by the power of mobility, which compelled it to introspect on the role of physical stores in the context of channel-agnostic digital consumers. It's a situation that retail banking is now grappling with as the relevance of the branch continues to come under scrutiny.

It may be a bit too early to write off the branch completely. But it is indeed time to reassess and recalibrate the function of the branch given changing banking dynamics and customer behaviors in the age of mobility. Here then are three trends that will have the biggest impact on the future of retail banking.

Mobility will compel banks to further hone their focus on customers. Early conversations on mobile banking invariably evangelized digital natives over older demographics. But the realization has since dawned that technology adoption is driven by utility rather than age. Mobility not only challenges generalizations but also gives banks the opportunity and the analytic tools to unambiguously establish expectations, motivations and behaviors at the level of individual customers. One example is the mobile Personal Financial Management service from German start-up NumberS that consolidates all user financial transactions from multiple service providers into a unified view to help customers build a comprehensive and personalized financial roadmap.

Mobility has already cut down the need for person-to-person interactions for a whole range of routine banking transactions. This trend will soon extend to complex transactions as developments in mobile biometric technologies deliver more sophisticated and secure alternatives to traditional methods of identification and authentication. Even traditionally high-touch practices like wealth management or advisory, could soon use technologies like augmented reality and video conferencing to make remote interactions as productive and compelling as face-to-face meetings. For instance, IndusInd Bank not only has a digital branch featuring a facility for videoconferencing but has also launched a Video Branch smartphone app that allows customers to connect directly with their relationship managers.

Mobility's biggest impact has been in the area of payments where it has not only delivered explosive growth but has also enabled maximum disruption while significantly raising the risk of disintermediation for traditional banks. Innovation is what distinguishes payment disruptors from conventional banks and this is what banks must focus on if they are to be a part of this huge opportunity. Banks like Turkey's Denizbank are already delivering innovative services to their customers by bundling merchant offers with geo-locational capabilities and payment applications in a comprehensive and engaging solution.

Mobility is both an opportunity and a challenge for traditional banks. Mobile banking is triggering more frequent interactions between customers and their service providers, each of which is an opportunity to build engagement. The challenge for banks is to optimize each interaction to the needs and expectations of that individual customer so as to realize mutual value.

April 10, 2015

Taking mobility beyond transactions

Posted by Venkatramana Gosavi (View Profile | View All Posts) at 6:19 AM

As the banking sector evolves towards a 'mobile first' end state, banks need to take a more holistic view of the possibilities of mobile banking. The focus needs to be as much on customer experience and engagement as on converting that into wallet share and profitability.

In a 'mobile first' paradigm, banks have to focus their strategies on mobilizing the entire customer lifecycle rather than on merely enabling transactions. Take account origination for instance. Even as banks endeavor to bring this feature up to scratch and scale in the online universe, customers' expectations have already skipped ahead to mobile devices, which it is estimated will account for up to 12 million checking accounts by 2020. As more and more customers evaluate banks on the basis of mobile capabilities, a simple and streamlined account opening experience that leverages the native capabilities of mobile devices could indeed be the acquisition lever that banks need.

If mobility has the potential to create a convenient and new customer acquisition gateway for banks, they need to follow it through by also mobilizing their sales processes. Mobile apps that have been optimized for sales & marketing, in terms of identifying and leveraging opportunities for up-selling or cross-selling, are still quite rare. This represents a huge opportunity cost for banks considering that cross-selling, together with cost reductions and customer retention, could take mobile banking ROI up to nearly 16 percent. And mobility offers some uniquely native opportunities, like geo-location, to efficiently deliver products that not only fulfill need, but do so in the correct customer context.

The concurrent focus must be on mobilizing financial empowerment. Personal Financial Management (PFM) is also emerging as a key determinant of service provider choice among millennials. There is also an established positive correlation between active mobile banking users, usage of PFM solutions, and profitability. Banks need to deliver PFM solutions & tools that will help customers build an aggregated view of their finances across multiple service providers in order to build a holistic strategy that will help them achieve their goals.

And they must not forget to mobilize their employees. Mobile-first is not a cultural shift that applies exclusively to consumers; it's a broad social trend that is equally relevant to employees. The advantages of BYOD in terms of employee productivity and organization performance have already been documented and enterprise mobile strategies cannot afford to ignore the inherent payoffs of a mobility-empowered workforce. More specifically, real-time access to information and applications can also help field sales personnel achieve higher levels of service and engagement.

Finally, now that it seems fairly certain that the future is going to be 'mobile first', if not 'mobile only', the approach should be to quickly graduate from mobilizing discrete transactional chunks of banking to redefining the entire banking experience around the possibilities of mobile. It would probably help to be aware that a new breed of 'mobile only' startups has already bet all its VC money on that opportunity.

June 16, 2014

How well is the IT industry aligning with the latest banking trends?

Posted by Reghunathan Sukumara Pillai (View Profile | View All Posts) at 11:33 AM

When compared to the last decade, when the IT industry provided software solutions meeting comprehensive banking needs, the trend in the current decade may be seen as a reversal. The core banking solution (CBS) with a centralized platform, along with channels built around the solution, just about met banks' requirements in the last decade. Though there were functionality and technology gaps in the solution, most clients and banks accommodated them as something that would only come into the picture in the future and made do with work around approaches or manual processes. A few banks built the missing functionality through customization or procured a lighter peripheral or specialized solution from the market. However, a CBS with multiple modules and solutions with rich functionality helped banks to improve business in that era.

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March 24, 2014

How different is selling an FMCG product to selling a banking product or software solution?

Posted by Reghunathan Sukumara Pillai (View Profile | View All Posts) at 6:37 AM

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In the early 2000s, when Indian banks hired field staff with FMCG (Fast Moving Consumer Goods) experience to sell banking products, there was a huge uproar in the community. There was a belief that only experienced bank staff could sell banking products to new consumers. Even cross selling a new concept or banking product to an existing customer, required banking expertise, persuasion and marketing skills. It was perceived that since the educated urban customer was aware of the nuances of conventional banking products offered by most banks, as well as their advantages and disadvantages, a novice would not be as effective in selling those products as an experienced bank hand. Pundits proclaimed that getting new sales staff to push banking products, which were becoming increasingly complex, would not work.

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March 3, 2014

Using voice of customer analytics for better insight

Posted by Somil Mittal (View Profile | View All Posts) at 8:15 AM

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Attrition models typically consider only structured attributes and past behavior of customers to segment them based on their propensity to defect.  However, this methodology has its shortcomings. Specifically, it does not take into consideration the unstructured data, which is generated in customer conversations.  For instance, a customer, while interacting with a bank's customer service agent might show his displeasure with the bank's services and bring it to their notice through chats or messages in Facebook or Twitter.  Frequent incidents of this nature are a good indicator that the customer is ready to defect. Models based on text mining of unstructured data have clearly indicated a strong correlation between certain customer queries and intent to defect.

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February 27, 2014

New ways of branch banking

Posted by Tarun Kishore Sonwalkar (View Profile | View All Posts) at 6:16 AM

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The current pace of change in banking can be mind boggling for customers. Much of that change is due to the influence of the retail sector, and banks' implementation of "retail style" banking to cater to the new generation of customers.

To be sure, banks need to attract the younger demographic segments, as they are the source of future revenues. The younger generation is accustomed to retail-like consumption experience, such as the one provided by malls and interactive smart stores. These customers, being highly digitally driven, will expect to use digital channels like Internet and mobile for regular banking activity. But when it comes to more complex or significant transactions, these customers will feel the need to visit their bank branch to seek advice and guidance.  

That being said, bank branches cannot hope to cater to next generation customers in the age-old way. They should prepare strategies for making retail banking more customer-centric with the help of innovations based on smart banking technologies and best practices from around the world. This could well call for going the way of retail - with branches in supermarkets and malls, smart stores like those from Apple complete with touchscreens, self-serving kiosks, 'muzak', and live video help from banking specialists and advisors.

However, while looking to secure their future revenue streams, banks must not neglect the interests of their existing and traditional customers. This means that they must change branch banking in other ways too.

For instance, banks should effectively utilize smart banking technologies and practices to provide access to all the details of the customer relationship, such as credit scores, banking history, and other accounts held. This can be augmented by offering access to software that predicts customer preferences and future banking service requirements based on past behavior. All of these together would help the banks provide more personalized and suitable sales and service offerings in order to retain their existing customers.

January 16, 2014

Modernization without the mayhem

Posted by Rajashekara V. Maiya (View Profile | View All Posts) at 10:11 AM

On the one side there is the legacy; a complex patchwork of disparate technologies integrated at random, upgraded incrementally and rooted in an era when product-centric silos were avant-garde. On the other is the new paradigm of banking under unrelenting pressure from customers, regulators and competitors.

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January 15, 2014

Finding value in simplicity

Posted by Venkatramana Gosavi (View Profile | View All Posts) at 10:31 AM

Every year strategic branding agency Seigel+Gale compiles a Global Brand Simplicity Index, across 25 industries, to generate separate brand and industry simplicity scores. In 2012, retail banking came in at #15 on an industry simplicity listing headed by online retail and closed by health insurance. This year, that ranking has slipped to 19th. And some of the industries that beat out retail banking? Shipping/mail and automotive!

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January 14, 2014

Coping with compliance

Posted by Rajashekara V. Maiya (View Profile | View All Posts) at 10:10 AM

Banking's systemic complexity is often cited as one of the principal causes of the 2008 financial crisis. But the tidal wave of regulation set off by that event is, ironically, secreting a new layer of complexity on the business. Apart from adding complexity, emerging regulatory norms will considerably inflate the cost of compliance for banks. For instance, US multinational JPMorgan Chase now expects compliance costs to touch US$2 billion in 2014, almost doubling its previous projections.

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January 13, 2014

From big hype to big value

Posted by Rajashekara V. Maiya (View Profile | View All Posts) at 10:09 AM

According to a 2013 analyst report, the banking sector ranked second, behind media & communications, in terms of Big Data investments. The report estimated that 34% of banks were already invested, while an additional 24% expected to do so in the near term. 

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January 12, 2014

The Cloud as Rainmaker

Posted by Venkatramana Gosavi (View Profile | View All Posts) at 10:29 AM

It can now be stated with empirical certainty that enterprise cloud adoption is more practice than prediction. There has been an average 10% increase in the number of companies using at least one cloud platform, and an estimated 60% of enterprises are now integrating cloud spends into overall IT budgets. In 2014, spending on cloud software, services and infrastructure will exceed USD 100 billion.

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January 11, 2014

Accelerating app development with API

Posted by Rajashekara V. Maiya (View Profile | View All Posts) at 10:07 AM

For a lot of customers, mobile banking is no longer just a convenient fallback option to check balances and receive account alerts. They are increasingly expecting their banking applications to enable much more than the basics. The versatility of mobile banking services - which is tied to the mobile app - rather than just availability, is becoming a determining factor in customer choice as well as satisfaction. 

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January 10, 2014

Making Social Count

Posted by Amit Dua (View Profile | View All Posts) at 10:14 AM

The banking sector's approach to social media thus far can broadly be described as 'willing but watchful'. That's understandable, considering the compliance risks of committing to a medium where regulatory boundaries are still fuzzy. The reputational backlash to some first-mover efforts also hasn't helped.

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January 9, 2014

OK wearables, disrupt banking.

Posted by Rajashekara V. Maiya (View Profile | View All Posts) at 10:02 AM

A recent report from Credit Suisse predicts that wearable technologies could be a USD 3-5 billion market over the next three years, ten times what it is today. As the market for these new technologies explodes, it will set off user expectations for an instantaneous seamless transition of everyday digital activities - banking included - to these new devices. 

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January 8, 2014

From 'Mobile Also' to "Mobile First'

Posted by Amit Dua (View Profile | View All Posts) at 10:04 AM

Mobile hardware sales and shipment statistics are arguments that have now become peripheral to the case for mobile banking. So let's hone the focus a little bit.

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December 5, 2013

Creating Content in the New Banking Scenario

Posted by Sunita Shelar (View Profile | View All Posts) at 6:21 AM

In our last post, we established that content should be created once and repurposed to suit multiple needs.

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October 18, 2013

New Bank Licenses - The Road to Financial Inclusion?

Posted by Vineet Malpani (View Profile | View All Posts) at 5:37 AM

One look at data pertaining to the penetration of formal banking services in India, and the need for financial inclusion becomes crystal clear. That's why financial inclusion is the cornerstone of the Reserve Bank of India's (RBI) initiative on new bank licenses. But has the regulator laid down the perfect norms to achieve this goal? This remains a question worth debating.

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August 26, 2013

Conservative policy. Consistent progress.

Posted by Anuradha Mallya (View Profile | View All Posts) at 5:30 AM

According to recent reports, the Philippines' banking sector will start implementing Basel III capital standards in 2014, notwithstanding the 2019 deadline. The country's banking sector was also among the few to emerge unscathed from the global meltdown of 2008. Some of the credit for both these mileposts is due to the tradition of conservative banking policy adopted by the Bangko Sentral ng Pilipinas (BSP), the country's Central Bank. 

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August 22, 2013

Social Media Interaction - Are Banks Up to This Challenge?

Posted by Tarun Kishore Sonwalkar (View Profile | View All Posts) at 2:09 PM


We have amongst us a whole generation that learned to type long before it could talk. Tabs and Smartphones figure at the top of a 10-year-old's wish-list. People experience extreme anxiety until they announce their "bad hair day" to the world; symptoms worsen if at least 2,000 people do not "like" it within 15 minutes. Proof enough of the extent to which social media has pervaded our personal lives, and also of the intermingling of our physical and virtual worlds. Businesses are now beginning to see an opportunity to cash in on this mass phenomenon. And when business and cash are involved, can banks be far behind?

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July 26, 2013

Catering to Customers on the Cloud

Posted by Manish Jain (View Profile | View All Posts) at 8:31 AM

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Capital is expensive, compliance is exacting, competition is intense and customer dynamics have changed - that, in brief, is the 'New Normal' in banking. As the pressure on margins and profitability mounts, banks will have to review and streamline existing operating structures to increase efficiency and productivity. Most importantly, being customer-centric is now more compulsion than choice in the new order of things. 

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April 23, 2013

Determining the expiry date for a Bank's Core Banking System

Posted by Anish Kanayi (View Profile | View All Posts) at 5:46 AM

As informed consumers, we never fail to check the expiry date of medicine, or the use by date of edible items. Also, we fret about organic and inorganic consumer goods lying idle, wasting away, consuming space or creating an environmental hazard through decomposition.

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March 29, 2013

Safe Deposit Lockers - Are spruced up rules the answer?

Posted by Reghunathan Sukumara Pillai (View Profile | View All Posts) at 5:26 AM


Both Public and Private Sector Banks have offered Safe Deposit Lockers (SDL) as a service since long, usually to privileged customers. The locker - useful for storing valuables like gold ornaments or important papers - can be operated by the customer as and when required using the keys provided by the bank.

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January 18, 2013

Diversified Channels in Rural Banking Worldwide

Posted by Gaurav Singla (View Profile | View All Posts) at 4:59 AM

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Contrary to popular belief, rural financial institutions worldwide are generally profit-making ventures, regardless of size or scale of operation.There are 4,500 cooperative banks in Europe with more than 60,000 branches with a strong rural presence. Raiffeisen Zentral Bank, Austria, is a pioneer in German rural banking with over 12 million clients. France's Crédit Agricole, which merged with CréditLyonnais in 2003, is a global, full-service universal bank, with a stronghold in rural France.

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January 2, 2013

From increments to exponents: 13 banking trends for 2013

Posted by Rajashekara V. Maiya (View Profile | View All Posts) at 6:48 AM

Even as the banking industry grapples with sweeping changes in policy, regulation and customer expectations, a 'big bang' transformation in strategy or host systems may not be on the cards this year. A peripheral, step-by-step, incremental agenda will be beneficial for banks in 2013. But don't be swayed by the word 'incremental'. Each of the trends in this infographic has the potential to deliver significant business value.


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November 30, 2012

XBRL - Bucking the Trend

Posted by Anish Kanayi (View Profile | View All Posts) at 11:27 AM

Regulators are unarguably the primary force behind the growing adoption of XBRL by the banking industry, evident from the initiatives of different bodies, such as the Federal Deposit Insurance Corporation in the U.S., Committee of European Banking Supervisors in the E.U., and the Reserve Bank of India, to name a few. Yet, the idea of using XBRL for internal data management and processing is still largely unexplored. XBRL could potentially find application in several areas within banking organizations, since it is ideally suited to facilitating the exchange, processing or consumption of information by rendering the data system readable, standardized and interoperable. Needless to say, the sooner that banks explore XBRL, the more effectively they can economize their processes. 

Let us look at some important operational scenarios where XBRL could play a role.

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November 26, 2012

Modern day banking: first thing in the morning, last thing at night

Posted by Kislay singh (View Profile | View All Posts) at 11:00 AM


Groggily, Jovy reaches for his Blackberry as the blinking trackball catches his eye. The screen reads "3 New Messages". It's already eight in the morning and he has to rush. He runs through the messages. The first is from his fiancée. The other two are from his bank; one regarding his salary credit, the other about a monthly debit towards a recurring deposit. 

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October 24, 2012

Want More from Big Data? Get Real!

Posted by M.A. Kishen Kumar (View Profile | View All Posts) at 1:45 PM

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I know it sounds ludicrous, but there are banks which indeed process several thousand transactions per second! Blink. The counter notched up another 5,000 transactions. Oh wait, that's an additional 20,000 in the time you took to read this sentence.

Welcome to the reality of Big Data, which is growing at a scale that is almost unreal. Being part of a highly information intensive business, banking institutions are among Big Data's biggest stakeholders. So the fact that most banks process the bulk of their Big Data offline, outside of real time, by which time another million events have gone by, is most perplexing.

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