New Online Banking Paradigm IT Challenges in Winning the Competitive Game Dr. Anil Kumar Sahai Head,

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New Online Banking ParadigmIT Challenges in
Winning the Competitive GameDr. Anil Kumar
SahaiHead, AITEC Consulting Servicesanil_at_andesit
usa.com

• The African Banking Technology Conference
• Competing in a Borderless World
• Eko Hotel, Lagos, Nigeria
• May 7-8 2008

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The Competitive Environment

• Customer vs. Price-Based Banking
• Services is the King!
• Diminishing Value of Merger Acquisitions
• Financial Markets Reward Organic Growth
• The Maintenance Trap
• 72 on Maintenance Technology has become
  Inhibitor
• Product Parity
• Challenge
• Customer Attrition
• Products and Services Offerings

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Innovation Challenges
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Technology Solution Trends
2006 Web 2.0 Web Services Wireless/Mobile Integ
ration Social Sites Consolidations Complete
Business C2C P2P P2C Services Separation Outsourci
ng Leverage ?? (Partnerships)
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Overlapping Domains
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Enabling Environment

• Financial stability
• Safety and soundness of the banking and payments
  system
• Economic efficiency
• Efficiency of the financial system as payments
  mechanism and intermediation system is maximized
  and in turn, contribute towards overall economic
  growth
• Access to financial services
• Broader access to appropriate, affordable
  financial services is promoted
• Financial integrity
• financial system is not compromised by its abuse
  for criminal or terrorist financing purposes
• Consumer protection
• Consumers are adequately protected against abuse
  and loss

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Data Security
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Data Security

• If companies want to prevent data breaches,
  damage to their brand, and huge fines, they must
  ensure data is protected both internally and
  externally, and make sure they constantly track
  new data privacy regulations.
• Data Security An Increasingly Daunting Task,
  Wall Street Technology online, November 26,
  2007

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Security Inside vs. Outside Threats

• There is so much talk about phishing and
  identity theft coming from outside, but the
  biggest source of fraud comes from employees and
  insiders, Jacob Jegher, a senior analyst at
  Celent, told Bank Systems Technology. There
  are millions of knocks on a companys door coming
  from outside but a low success rate. On the other
  hand, the number of knocks on the door from
  insiders is very low, but the success rate is
  very high.

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BioMetric Security
Face
Voice
Finger
Iris
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New Technologies

• Services Oriented Architecture (SOA)
• Agents (software or human)
• Emphasis on actions
• Agent-to-agent interaction through message
  exchange
• Object Oriented Architecture
• Objects and Actions
• Web 2.0
• Communities
• Security
• External, Internal and Solutions

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Banks Strategic Initiatives in 2008

• Information Life Cycle Management
• Unstructured Data
• Risk Management
• Classification and Valuation of Data
• Shift from Infrastructure Management
• Security
• Unified Threat Management
• Hardware Assistance
• Policy Based Protections
• Compliance

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Banks Tech Spending in 2008

• Demand for Technologies
• To improve efficiency and integration
• Client engagement
• Security
• Fraud management
• Increase Staff for Maintenance
• Payments Processing
• Integration of Payment Systems
• Image Technology

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To change their orientation to delighting
customers, banks need a major makeover that
requires significant changes in their strategies,
processes and underlying technologies, such as
replacing inhibiting technologies with enabling
technologies! The path isnt fast or easy, but
it existsand banks are beginning to find it and
follow it!
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"As competition for online customers grows among
banks, there are a number of elements in which
financial institutions, including some of the
most sophisticated players, will need to further
invest," "Beyond mastering the account opening
process, banks will need to become considerably
more effective with online marketing. By
leveraging online customer data, conducting
targeted online and multi-channel marketing
campaigns, banks will be well positioned to leap
frog the competition."
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Convergence of m-Banking e-Banking

• Business Drivers
• Internet Access
• Mobile Providers
• Challenges
• Services Delivery and Access
• Integration of Services and Security
• Enabling Environment
• Opportunities
• SOA and Object Technologies
• Partnerships