1. 1 Technological Challenges in Banking Operations R.N. Ramanathan Dy. MD (IT) State Bank of India

2. 2 Contents The Changing Face of Business Operations Technology As Business Enabler Technological Challenges Key Focus Areas Conclusion

3. 3 The Changing Face of Business Operations Customers – Key catalysts of change Volatile Business Environment Deregulated Market Environment Spiralling Competition – WTO/FTAs Business Operations 1/3

4. 4 The Changing Face of Business Operations Management of Asset Quality Greater Financial Risks Globalization of Operations Consolidation of Operations Business Operations 2/3

5. 5 The Changing Face of Business Operations Regulatory Compliance Corporate Governance Stretched Resources Operational & Reputational Risks Business Operations 3/3

6. 6 Technology as Enabler 1/2 Change ManagementQuicker ‘Go-To-Market’ Key to Competitiveness Richer Customer Experience Technology Enables

7. 7 Technology as Enabler 2/2 Enterprise wide Customer View Pace with Developments Empowerment to Manage Preventive, Risk- based Architecture Technology Enables

8. 8 Technological Challenges 1/2   Capital Budgeting & Outlay   Integration of Technology & Business   In-sourcing vs Outsourcing Dilemma   Business Process Changes   Management of Human Resource   Managing Compliance Environment   Information Security and Frauds

9. 9 Technological Challenges 2/2   Risks – Product, Vendor, Implementation   Project and Cost Overruns   Infrastructure Management   Disasters & Business Continuity   Return on Tech Investment   Measuring Tangible Benefits   Managing Obsolescence

10. 10 Key Focus Areas 1/5 Efficient Front Office Robust Back Office An Eye on Competition Universalization of Services Relationship Management Customer Centric Management

11. 11 Key Focus Areas 2/5 Plan for Upgradations Plan for Obsolescence Keep a Long-Term View Adopt Industry Standards* Calculate ROI Investment Planning * Like BS 7799, CMM, ITIL, COBIT

12. 12 Key Focus Areas 3/5 Training / Re-Training Cultural Integration Motivation & Rewards Flat Management Style Adaptability to Changes Manpower Planning

13. 13 Key Focus Areas 4/5 Align with Business Focus Strategize and Monitor Risks Lead From Front Empower & Delegate Vendor Agnostic Applications Technology Management

14. 14 Key Focus Areas 5/5 Documented & Process Driven Defined & Measurable Conduct ‘Reality Checks’ Avoid Complacency Tools For Management SLA Monitoring

15. 15 Conclusion   Customers will become increasingly ‘informed’   Service deliveries will be a challenge   Business cannot be divorced from technology   Opportunities and risks will co-exist   Technology will have to be managed – not just acquired   Best processes and practices will win the day   Technology – Not a ‘by choice’ issue any more

16. 16 Conclusion The only constant will be CHANGE directed by business & empowered by technology

17. 17 Thank You dmd.it@sbi.co.in dmd.it@sbi.co.in