Banks should not merely implement core banking solutions (CBS) but also ensure that the technology implemented is more customer focussed, said KC Chakrabarty, deputy governor, Reserve Bank of India.
The technology implementation should first and foremost result in drastic reduction in transaction costs, then only the banking services will be accessible to all and will lead to coverage of whole population, he said at at the Indian Bank-hosted ?IDRBT Outreach ? Executive Round Table on Beyond Core Banking? on Saturday.
However, he cautioned on the dangers of implementing technology without adequate safeguard. Business structure and processes of the banks have to undergo necessary change to improve efficiency, speed and quality, he said adding banks can employ business correspondents directly.
According to him, the bank employees should be computer literate so as to become information literate for better customer relationship management and to improve risk management. IT planning and governance should happen simultaneously so that a double-digit growth in economy is achieved.
TM Bhasin, chairman & managing director, Indian Bank, in his address said Indian Bank is proud to organise this round table to focus on achieving the objectives of implementing CBS in banks. Indian Bank is now moving beyond CBS to CRM encompassing datawarehousing, datamining and decision support system.
B Sambamurthy, director, IDRBT, said banks should have a strategic makeover towards information management for the benefit of the customers and wealth management.
Speaking at the function, KR Ananda, regional director, RBI, said all banks should accord topmost priority for data security and data integrity. He also emphasised on the need for creating awareness among employees on better security management. The technological revolution in the banking sector should enable the common man to use banking services with ease, he added.
SA Bhat, chairman & managing director, Indian Overseas Bank (IOB), in his address said the banks should utilise the CBS to know the true value of their customers and ensure that the fruits of CBS reach the customers.
The executive round table had technical sessions to instigate thought process among senior bankers on strategic issues like CRM, Enterprise Architecture and IT governance. The round table aimed at, among other things, to brainstorm opportunities and challenges of the next phase of electronification of banking, said a statement.