If technology is the most talked-about aspect in public sector banking these days, the issues of business process re-engineering, outsourcing, audit and training are not far behind.
They are working on the fall-outs of tech upgrades
KOLKATA: If technology is the most talked-about aspect in public sector banking these days, the issues of business process re-engineering, outsourcing, audit, HR, vigilance and training are not far behind.
Top bank officials said that recent developments on the technology front would necessitate a close look at the associated issues such as HR and vigilance. According to a senior official, the IT heads of public sector banks (PSBs) have formed a forum to share experiences and discuss solutions.
Almost every other PSB is rolling out a plan to integrate at least 50% of its business on the core business solution (CBS) platform on a 2-3 year timeframe. Most banks are in the process of drawing up detailed business process re-engineering plans along with superior IT systems, which are in various stages of implementation.
IT spends by banks have been anywhere between Rs 200-250 crore on an average depending on the size and the number of branches. Some banks working on the CBS platform include State Bank of India, Canara Bank, UCO Bank, United Bank of India, Union Bank, Indian Overseas Bank, Bank of Baroda and Allahabad Bank.
“For us it is just not a technological change but an entire business transformation. The number of employees moved out of back-office jobs will be few initially. The large sales force will be able to bring in large volumes of business to ride on the CBS platform,” V Sridar, chairman and managing director, UCO Bank said.
A C Mahajan, chairman and managing director, Allahabad Bank, said: “While technology and CBS is significant, most banks including ours are working on other aspects that could be a fall-out of technology. For example, we are charting a retail plan where we would relocate about 4,000 employees once the CBS is in place”.
Vigilance is another area where banks would be sharing information. “While the CBS platform ensures tighter controls, banks want to ensure that all operational risks in the new environment are taken care of. There is a need to study electronic channels providing remote access to faceless customers,” Sanjay Sharma, corporate head, IDBI Ltd said.
Sharma is also the convener of the working group of selected banks formed to review checks and balances.
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