With the help of business-enabling technology, banks across the globe are adopting innovative methods to discover new opportunities, convert perceived gains and seal deals. These novel methods result in a triad of benefits – cost reduction, transaction efficiency, and automation.
Over the past five years, the Core Banking Solution and electronic channels have replaced traditional banking processes and given new meaning to transaction processing in banks. In developing countries such as the BRIC economies, i.e. Brazil, Russia, India and China, IT expenditure in the banking sector has been steadily increasing. Nonetheless, the technology adoption rate is bound to plateau, due to the presumption that a saturation point due to a large quantum of automation technology being introduced into a semi-automated environment. This plateau is similar to an inflexion point. The inflexion point is a function of variables such as capital spends, operating expenditure, human capital, effort expended and complexity. At present, banks are trying to regulate investment in ventures which may be seen as capable of deriving benefits in the long term – a hallmark of technologies such as CRM, Web 2.0, and Service Oriented Architecture, etc.
In order to remain competitive, banks must concentrate on three core aspects:
· Differentiation on the outside through innovative products and technology enabled service channels
· Simplification on the inside through technology convergence
· Execution mastery through strategic thinking and day-to-day excellence in operations
· Differentiation on the outside through innovative products and technology enabled service channels
· Simplification on the inside through technology convergence
· Execution mastery through strategic thinking and day-to-day excellence in operations
