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Leveraging IT for Corporate Banking Business Benchmarking

CASE STUDY, INFORMATION TECHNOLOGY
ET Cases, 17 Pages

Case Preview

Leveraging IT for Corporate Banking Business Benchmarking

 

In the dynamic global scenario, it has become an undocumented mandate for the Public Sector Undertaking (PSU) banks in India to implement Information Technology (IT) infrastructure, in order to face the competition posed by private players. Indian public sector banks started their business with mere pens and papers. However, the business needs have driven them gradually towards IT implementation initiatives (Joshi, 1991). Over the years, the amount of investment by PSU banks in building up and maintaining IT infrastructure is mounting up (Exhibit I). The same phenomena came about with the oldest PSU bank of India.

Exhibit I: Expenditure Incurred on Computerization & Development of Networks (in INR crore)

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Contrasting to private sector banks, the PSU bank in consideration plays a twofold responsibility of making yield and proffering banking services to the inhabitants all the way through the country. Consequently, the bank had put up an all-embracing branch association across the country that integrated numerous branches in not-so-lucrative areas. Dearth of unswerving network infrastructure slowed down the accomplishment of computerization of the bank until late 80’s. At this time, customer details were usually preserved with either semi-manual or manual ledger book procedure (Kozak, 2005). After 1990, when Indian economy took a rapid pace, and government announced the commencement of private sector banks, the business scenario started changing. Middle class and upper class consumer segments were fascinated towards the new entrants, and the PSU bank in consideration started to lose its business, as consumers were considering it as technological dawdler.......................

Teaching Note Preview

Leveraging IT for Corporate Banking Business Benchmarking

 

Synopsis

During post liberalization period, an Indian public sector bank faced huge problem regarding standardization of the business processes, especially in corporate banking domain. The competition was posed not only by the private sector players, but also by other public sector players. The pain areas were mainly in the financial reporting domain of corporate banking. With the help of their strategic IT partner, they designed different modules for their different corporate banking business domain. Designing of those modules in turn resulted in better performance in those areas. Later on, those processes were considered as the  benchmark for any further developments in those fields. With graduation of time, the changes in technology standard had brought forth modifications in those modules, but the functional architecture remained as it was.

This case study focuses on the advantages of IT implementation in banking business. A paradigm shift is possible by leveraging the IT infrastructure. It is a learning experience for both the vendor and as well as the client, as both of them has to go through a series of brainstorming sessions to germinate new ideas for future. Once the new ideas are brought into practice, the business domains can get the best out of their investment in IT.

Expected Learning Outcomes

  • • The management and leveraging of technology in the field of banking
  • • How the banking operation is largely driven by IT
  • • Operational issues related to back end operation of bank
  • • The areas of improvement in the banking sector in terms of IT implementation
  • • The future scope of improvement as the industry practice emerges

 

Case Positioning and Setting

This case study is suitable for the participants in the following areas:

  • • Master’s in Information Systems
  • • Master’s in Service Operation
  • • Master’s in Bank Management
  • • Training in Total Quality Management
  • • Training in Software Quality Management
  • • Training in Project Management in BFSI Domain
  • • Training in Software Architecture Designing in BFSI Domain

 

Assignment Questions

  • I. Was the TSA approach appropriate in the given architecture? Provide proper reason. If not, what could have been a more appropriate approach?
  • II. Identify the major problem (not specifically related to IT) attached with audit trail mechanism and the measures to rectify the same.
  • III. .....................

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Product code: IT-1-0002, IT-1-0002A

Abstract

During post-liberalization period, an Indian public sector bank faced huge problems regarding standardization of the business processes, especially in corporate banking domain. The competition was posed not only by the private sector players, but also by other public sector players. The pain areas were mainly in the financial reporting domain of corporate banking. With the help of their strategic IT partner, they designed different modules for their different corporate banking business domain. Designing of those modules in turn resulted in better performance. Later on, those processes were considered as the benchmark for any further developments in the related fields. With time, the changes in technology standard had brought forth modifications in those modules, but the functional architecture remained as it was.

This case study focuses on the advantages of IT implementation in banking business. A paradigm shift is possible by leveraging the IT infrastructure. It is a learning  experience for both the vendor and as well as the client, as both of them has to go through a series of brainstorming sessions to germinate new ideas for future. Once the new ideas are brought into practice, the business domains can get the best out of their investment in IT.



Pedagogical Objectives

  • To understand the significance of management and leveraging of technology in the field of banking
  • To comprehend how the banking operation is largely driven by IT
  • To understand the operational issues related to back end operation of bank
  • To identify the areas of improvement in the banking sector in terms of IT implementation
  • To assess the future scope of improvement as the industry practice emerges

Case Positioning and Setting
This case study is suitable for the participants in the following areas:

  • Master’s in Information Systems
  • Master’s in Service Operation
  • Master’s in Bank Management
  • Training in Total Quality Management
  • Training in Software Quality Management
  • Training in Project Management in BFSI Domain
  • Training in Software Architecture Designing in BFSI Domain



This Case Pack Includes:
- Abstract
- Case Study
- Teaching Note (**ONLY for Academicians)
$4.57
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