The White Paper covers the findings of the survey conducted by Banknet India during 2003-04. Banking Systems Survey 2003-04 attracted responses from 45 Banks and 54 IT companies. Respondents to the survey included CEO’s, COO’s, CTO’s, General Manager’s, Vice Presidents, Marketing and IT Heads.
According to Mr. Anurag Khanna, MD & CEO of Banknet India, "As compared to responses from 24 banks in the first survey, our second banking system survey received responses from 45 banks. The white paper will be of great value to banks and IT companies alike. The findings of this white paper will create a better understanding about the trends, practices and requirements related to the IT in banking."
The salient findings of the survey include:
PRODUCT SELECTION CRITERION: The top criterion is "Functionality" of the software product or application according to the respondents from both banks & IT companies.
VENDOR SELECTION CRITERION: Both banks and IT companies agree on the top criterion for vendor selection being the "Track record" of the software vendor.
OPERATIONAL AREAS IN DEMAND: The area of "Risk management" is being given the highest priority by banks. "Core banking" and "Asset Liability Management" rank next in the priority.
DECISION MAKING PROCESS: Indian banks normally follow a 3-stage process. According to the majority of IT companies, a bank takes more than six months to select an IT application.
IT PROCUREMENT PROCESS: Most banks prefer the RFI/RFP approach for their selection process.
COMPUTERIZATION OF BRANCHES: 94% of the participant banks claimed to have more than 75% of the branches computerized
NETWORKING OF BRANCHES: 43% of the banks surveyed have less than 50% of their branches networked.
OUTSOURCING IN BANKS: As many as 36% of the participating banks have outsourced IT related services. ATM Management is one of the most preferred outsourced activities.
SUCCESSFUL IMPLEMENTATION: Clear understanding of requirements by the IT Company is considered to be the most important factor for the successful and timely implementation of the IT projects in banks.
TARGET GEOGRAPICAL AREAS: South East Asia is considered the top geographic target area by 28% of the respondent IT Companies, followed by the North America.
MAIN HUB: Mumbai remains the hub for banking technology companies due to its proximity to decision makers in the banking industry.
In addition, the white paper has also analyzed issues related to the Payment Cycle, Quality certifications, Tracking IT requirements in banks, Technology awareness in banks, Brand building by IT Cos, Budget outlay of banks, among others.
