Customers Hold The Key To Innovation Wave

by Julia Fernandes    Oct 27, 2004

The first day of the sixth 2004 — an annual international banking technology summit — kicked off today in Mumbai with the word ’customer’ figuring prominently in all sessions.

Giving the keynote address, Ranjivjit Singh, director- marketing and business operations, Microsoft India, commenced his speech by speaking about the evolution of banking right from the core banking changes to the spurt in the retail side with the mushrooming of ATMs. According to Singh, technology will be one of the key drivers of the banking industry.

Speaking about the waves of innovation, Singh questioned where the next wave of innovation would come from, i.e. whether it would be mobile devices, PDAs, IVR route, ATMs, etc. According to Singh, it is the customer who will determine the next wave of innovation.

Singh further went on to speak about the role of IT in the banking industry. Says Singh, “IT can reduce costs, provide scalability, reach global benchmarks in efficiencies and finally is the heart of the banking industry.”

V Chandrashekhar, CTO, Bank of Baroda, spoke at length about the impact of Basel II norms on the banking industry, beginning with its origin down to how adoption of these norms could actually help in elimination of risks and adding value to the bank.

Meanwhile, Nanda Mohan Shenoy, head - IAS operations, BNP Paribas, shared a unique concept by talking of the CAMEL model, which all banks should follow. Says Shenoy, “C stands for capital of the bank, A for quality of assets, M for good management, E for earnings of a bank, which could be either the stock price or P/E ratios and finally L for liquidity.”