Small and weaker Indian banks could have a common IT platform by sharing cost on the lines of the model in the US. It will help in bringing efficiency in the banking system and improve customer services, Punjab National Bank (PNB) chairman and managing KC Chakrabarty said at the bankers? conference organised by Indian Banks’ Association (IBA) here on Tuesday.
Participating in a panel discussion, Chakrabarty said the technology was not a choice but a compulsion and small and weaker banks could share an integrated IT solution for their respective banks by sharing the cost. ?It is possible if the industry leaders have a strong will power to do so,? he said.
Chakrabarty said amalgamation or consolidation of different banks having different working cultures into one identity might lead to confusion. Instead, these banks could have a joint venture maintaining their own identity and having a consolidated annual statement.
Supporting Chakrabarty?s viewpoint, DB Phatak, dean, Kanwal Rekhi School of Information Technology, said more than 200 banks together share a common IT platform in the US and they compete against big players.
H Krishnamurthy, principal research scientist, Indian Institute of Science, said IT reduced transaction costs and brought efficiency in the system. Introduction of a single window system will help the banks in reducing the cost of the services and products.
