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Technology and Banking The Quintessence Nature of Banking harmonizes closely with Technology –  Banking Technology Information Storage Processing Transmission Tasks Common to Both
Pervasive Branch Network Global Operations Complex Credit  Calculations Innovative Risk Management Mass Transaction & Items Processing Banking and Technology
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Focus aspects of Commercial Banking now are: Core  Banking (CBS) ATMs Card Management Any Branch Banking Document Management Risk Management Resource Management MIS & Intranet CRM Corporate Network Electronic Banking POS Terminals and Cash dispenser  BANK’S BUSINESS BANK’S BUSINESS RAISING DEPOSITS LOANS & MISC. SERVICES
Financial Technology Infrastructure ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object]
Technology Differentiation Fades Gradually….
[object Object],[object Object],[object Object],[object Object]
Elements of Technology as a Differentiator Scalability & Flexibility Efficient utilisation, mgmt Process enabling Utility to customer Support Skills For Long-Term Differentiation
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POS Terminal and Cash Dispenser POS Terminal Connected to Cash dispenser
Electronic Banking ATM Head Office Branch Banking Branch 1 Branch 2 Branch 3 Branch 4 Branch 5 Branch 6 Branch n
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Differentiation is attained not  achieved just through technology, it is gained in the way the technology is selected, implemented and utilised   Technology For Sustained Differentiation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Regulation and Supervision –  The Challenge ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Technology and Banking Supervision THE RBI RESPONSE Offsite Supervision & Monitoring OSMOS COSMOS (Non banking Financial Companies / Development Financial Institutions) UBD Soft Credit Information Bureau (A joint venture between  Housing Development Finance Corporation Ltd., State Bank of India, Trans Union International Inc.  &  Dun & Bradstreet Information Services India Pvt. Ltd.) Will be covered in detail by Speaker Dr. T.V. Gopalakrishnan
Currency Management and Technology – Opportunities Galore  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Technology & Monetary Systems
IT and Payment and Settlement Systems Demateria-lisation Of Securities Delivery Versus Payments Payment  Versus Payment Continuous Linked  Settlement Electronic Dealing Platforms Real Time Gross Settlement Central Counter party Secured  Netting Systems
RBI INITIATIVES IN PAYMENT & SETTLEMENT SYSTEMS Compliance with  BIS Core Principles  RTGS CFMS NEFT PKI-based  Security SFMS Clearing Corporation of India IDRBT PDO-NDS & SSS NFS/IBPG INFINET
RBI Initiatives in Payment and Settlement Systems (1) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
 
Financial Networks INFINET Gateways and Integration with Other Financial Network Services G1 - SWIFT Network G2 - Reuters Network G3 - Stock Exchange Network G4 - Inter Banks/FIs G5 - Shared ATMs G6 - Clearing Operations Network G7 - Internet Corporate  Network Inter  Banks /FIs Network Shared  ATMs  Network Clearing Operations  Network SWIFT Network Reuters Network NSE Network G1 G1 G2 G2 G3 G3 G1 G2 G3 G1 G2 G3 G1 G2 G3 G4 G4 G4 G5 G5 G5 G6 G7 Internet
Structured Financial Messaging System Branch-1 Bank-1 Gateway Bank-2 Gateway Bank-n Gateway Branch-2 Branch-n Branch-1 Branch-2 Branch-n Branch-1 Branch-2 Branch-n Central Server at IDRBT ……… ..…………….….. ……… ..…………….….…….. … … … … … … …… .…… …… .……
PKI Hierarchy CCA IDRBT CA RA Subscriber IDRBT CA Repository RA RA Subscriber Subscriber Subscriber Subscriber Subscriber
IP Address:202.138.123.68 Subnet Mask: 255.255.255.254 Location:  Mumbai   CashNet NFS CONNECTIVITY with Existing Consortiums & Individual Banks National Financial Switch &  E- Payment Gateway ISDN   Primary Link Backup Link Broad Band VSAT Bank 1 Bank N ISDN   MITR Location:  Chennai BANCS & Cashtree Location:  Mumbai   ISDN   Leased Line ISDN   ISDN   Leased Line Bank 2 Leased Line Leased Line ISDN   Leased Line INFINET
RBI Initiatives in Payment and Settlement Systems (2) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
CFMS Settlement Accounts IFTP Strip & Store Processes IAS SSS Intra Day  Liquidity RBI Payments and Actg. Entry Interface INFINET NSS Participant’s Interface Participant’s Interface Participant’s  Interface Real Time  Gross Settlement
[object Object],[object Object],[object Object],[object Object],[object Object]
RBI Initiatives in Payment and Settlement Systems (3) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object]
RBI and Customer Service…(1) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
RBI and Customer Service...(2) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Technology Vision of the RBI Centralised Database Management System Enterprise  Knowledge Management System Integrated Accounting  System Integrated  Government Accounting System Currency Operations System Desk Top Decision Making Capability Desk Top Analytical Capability  Desk Top Transactional Capability Securities Settlement System Integrated Establishment System Offsite Supervisory  Systems Integrated  Forex  Management System Human Resource Information System
Issues in Implementation “ Less than 10% of failures are due to technical snags – most are due to poor management and implementation” ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Pre-requisites for Technology Planning for  Disasters Business Process  Re-engineering Human Resource Empowerment
The pre-requisites for Technology  ,[object Object],[object Object],[object Object],[object Object],[object Object]
Getting Personal with Personnel ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Security Risk Management ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
 
 
How to Ensure  Security??-A Framework Assess Detect Respond Protect
IDRBT’s Solutions for Security Risk Management (SRM) Risk Assessment Gap Analysis IS Audit Awareness by Training Policy & Procedures Development Implementation SRM for  Banks PKI INFINET
[object Object],[object Object],[object Object],[object Object],At a Glance…….
The future will be not be more of the same…   …  we need to be ready..  Thank You

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Jaiyadav

  • 1.  
  • 2. Technology and Banking The Quintessence Nature of Banking harmonizes closely with Technology – Banking Technology Information Storage Processing Transmission Tasks Common to Both
  • 3. Pervasive Branch Network Global Operations Complex Credit Calculations Innovative Risk Management Mass Transaction & Items Processing Banking and Technology
  • 4.
  • 5. Focus aspects of Commercial Banking now are: Core Banking (CBS) ATMs Card Management Any Branch Banking Document Management Risk Management Resource Management MIS & Intranet CRM Corporate Network Electronic Banking POS Terminals and Cash dispenser BANK’S BUSINESS BANK’S BUSINESS RAISING DEPOSITS LOANS & MISC. SERVICES
  • 6.
  • 7.
  • 9.
  • 10. Elements of Technology as a Differentiator Scalability & Flexibility Efficient utilisation, mgmt Process enabling Utility to customer Support Skills For Long-Term Differentiation
  • 11.
  • 12. POS Terminal and Cash Dispenser POS Terminal Connected to Cash dispenser
  • 13. Electronic Banking ATM Head Office Branch Banking Branch 1 Branch 2 Branch 3 Branch 4 Branch 5 Branch 6 Branch n
  • 14.
  • 15.
  • 16.
  • 17. Technology and Banking Supervision THE RBI RESPONSE Offsite Supervision & Monitoring OSMOS COSMOS (Non banking Financial Companies / Development Financial Institutions) UBD Soft Credit Information Bureau (A joint venture between Housing Development Finance Corporation Ltd., State Bank of India, Trans Union International Inc. & Dun & Bradstreet Information Services India Pvt. Ltd.) Will be covered in detail by Speaker Dr. T.V. Gopalakrishnan
  • 18.
  • 19.
  • 20.
  • 21. IT and Payment and Settlement Systems Demateria-lisation Of Securities Delivery Versus Payments Payment Versus Payment Continuous Linked Settlement Electronic Dealing Platforms Real Time Gross Settlement Central Counter party Secured Netting Systems
  • 22. RBI INITIATIVES IN PAYMENT & SETTLEMENT SYSTEMS Compliance with BIS Core Principles RTGS CFMS NEFT PKI-based Security SFMS Clearing Corporation of India IDRBT PDO-NDS & SSS NFS/IBPG INFINET
  • 23.
  • 24.  
  • 25. Financial Networks INFINET Gateways and Integration with Other Financial Network Services G1 - SWIFT Network G2 - Reuters Network G3 - Stock Exchange Network G4 - Inter Banks/FIs G5 - Shared ATMs G6 - Clearing Operations Network G7 - Internet Corporate Network Inter Banks /FIs Network Shared ATMs Network Clearing Operations Network SWIFT Network Reuters Network NSE Network G1 G1 G2 G2 G3 G3 G1 G2 G3 G1 G2 G3 G1 G2 G3 G4 G4 G4 G5 G5 G5 G6 G7 Internet
  • 26. Structured Financial Messaging System Branch-1 Bank-1 Gateway Bank-2 Gateway Bank-n Gateway Branch-2 Branch-n Branch-1 Branch-2 Branch-n Branch-1 Branch-2 Branch-n Central Server at IDRBT ……… ..…………….….. ……… ..…………….….…….. … … … … … … …… .…… …… .……
  • 27. PKI Hierarchy CCA IDRBT CA RA Subscriber IDRBT CA Repository RA RA Subscriber Subscriber Subscriber Subscriber Subscriber
  • 28. IP Address:202.138.123.68 Subnet Mask: 255.255.255.254 Location: Mumbai CashNet NFS CONNECTIVITY with Existing Consortiums & Individual Banks National Financial Switch & E- Payment Gateway ISDN Primary Link Backup Link Broad Band VSAT Bank 1 Bank N ISDN MITR Location: Chennai BANCS & Cashtree Location: Mumbai ISDN Leased Line ISDN ISDN Leased Line Bank 2 Leased Line Leased Line ISDN Leased Line INFINET
  • 29.
  • 30. CFMS Settlement Accounts IFTP Strip & Store Processes IAS SSS Intra Day Liquidity RBI Payments and Actg. Entry Interface INFINET NSS Participant’s Interface Participant’s Interface Participant’s Interface Real Time Gross Settlement
  • 31.
  • 32.
  • 33.
  • 34.
  • 35.
  • 36. Technology Vision of the RBI Centralised Database Management System Enterprise Knowledge Management System Integrated Accounting System Integrated Government Accounting System Currency Operations System Desk Top Decision Making Capability Desk Top Analytical Capability Desk Top Transactional Capability Securities Settlement System Integrated Establishment System Offsite Supervisory Systems Integrated Forex Management System Human Resource Information System
  • 37.
  • 38. Pre-requisites for Technology Planning for Disasters Business Process Re-engineering Human Resource Empowerment
  • 39.
  • 40.
  • 41.
  • 42.
  • 43.  
  • 44.  
  • 45. How to Ensure Security??-A Framework Assess Detect Respond Protect
  • 46. IDRBT’s Solutions for Security Risk Management (SRM) Risk Assessment Gap Analysis IS Audit Awareness by Training Policy & Procedures Development Implementation SRM for Banks PKI INFINET
  • 47.
  • 48. The future will be not be more of the same…   … we need to be ready.. Thank You