White paper for Banking & Financial Sector

TELLUS TECHNOLOGIES PVT LTD

Date: 14 February 2008

th
 Table of Contents

INDUSTRY OVERVIEW----------------------------------------------------------------------------------------------------- 2

HOW ONE CAN MAKE A SHIFT FROM PAPER TO ELECTRONIC?------------------------------------------------------- 3

E-LOCK SOLUTIONS: ------------------------------------------------------------------------------------------------------ 4
REGULATIONS & COMPLIANCE: ----------------------------------------------------------------------------------------- 4
OUR CLIENTELE IN THE BFSI SECTOR:---------------------------------------------------------------------------------- 4

CASE STUDY: -------------------------------------------------------------------------------------------------------------- 5

CONCLUSION-WHY BFSI SHOULD SHIFT FROM PAPER TO ELECTRONIC: ------------------------------------------- 7
Industry Overview

The business landscape of BFSI Industry is quickly evolving. Around the world, Financial Services Industry has been
outperforming the general economy. A combination of regulatory & competitive reasons in new markets, have
addressed the ever-growing consumer demand for convenient services delivery, banks & financial institutions have
embraced new technology in both the front and back office, often through integration with legacy systems. Information
security now demands a significant level of attention from organizations.

The Banking & Financial Sector, today is in the midst of an IT revolution. Many are now striving to modernize their IT
infrastructure in order to make their operations simultaneously more responsive to business drivers and more cost
efficient. Research has shown time and again that computer frauds occur mainly due to weaknesses in internal control
systems that facilitate unauthorized / manipulated inputs by extending due dates on loans, changing names and
addresses of clients, etc. In a computerized environment, software attacks by computer criminals through Trojan
Horses, Viruses, Worms, Salamis and Logic Bombs, etc. can paralyze installations or destroy systems. Maintenance of
security in a computerized environment is therefore a major concern and challenge for bankers today.

The key aspects of electronic information-related security are:

o Confidentiality (making information available only to authorized users)
o Integrity (information received appearing exactly as that sent or stored)
o Availability (information stored / transmitted over communication networks being available whenever
required, to the extent desired, within specified time limits)
o Authenticity (implementing systems for establishing the bonafide of parties in an electronic transaction),
and,
o Non-Reputability (ensuring that the parties cannot deny authorizing a transaction or sending / receiving
messages over the Internet).

How one can make a shift from paper to electronic?

Banks & financial institutions can now take a full advantage of the mushrooming e-commerce market.

E-Lock’s digital signature solutions have answered all these questions and opened the e-commerce gates by allowing
contracts to have the same legal effect, validity or enforceability as paper based ones.
Using digital signatures can help financial companies to reduce the time to complete transactions considerably. This
increases customer satisfaction and decreases the cost of transaction. Steep contract-in-transit costs, data re-keying,
costly errors and labor-intensive paper verification processes are completely eliminated.

By eliminating the physical handling and signing of paper disclosures and documents, financing companies can help
customers review and sign documents electronically.

With E-Lock’s digital signature solutions, Insurance companies can finally implement a secure and legally enforceable
eContracting solution with the assurance that it works in fully operational, customer environments and are legally
valid. Saving time, manpower and costs have helped these companies to serve their customer much better. For Banks,
home loan transaction can be completed & executed using electronic records & digital signatures through E-Lock.
E-Lock Solutions:

E-Lock is a leading provider of digital signature solutions in the market. E-Lock specializes in providing solutions, which
meet specific business needs of organizations. E-Lock truly provides the last mile for securing paperless transactions
and making them regulatory compliant.

Solutions for Banking & Financial Sector:

Our solutions provide the necessary data integrity, authentication non-repudiation and confidentiality to the content
and transactions involved in the various banking processes.

Some of the E-Lock Solutions that can be deployed in the Banking & Financial Sector:

o For Core Banking Applications- online banking applications, bank statement generation software, loan
processing application, etc.
o e-Tendering: Tender submission through a portal or server, placing purchase orders online, etc can be
ensured confidentiality and integrity by adding digital signature function.
o Securing your Internal Communications

Regulations & Compliance:

Digital & Electronic Signatures from E-Lock comply with the definition provided by the following regulations
o US E-Sign Law
o EU Law
o HIPAA
o 21 CFR Part 11
o Sarbanes Oxley
o GPEA
o Indian IT ACT 2000

Our Clientele in the BFSI Sector:

IDBI, India Kotak Insurance, India ISEC, India Cochin Stock Exchange, India
ABN Amro, Slovenska sporitelna
Banco Mias, Portugal Tatra Bank, Slovak Republic
India Citibank, Slovak Republic
Czech Credit
Wustenrot Hypotecni Banka, Leasing Ceské sporitelny, Czech
Bureau, Czech Bawag Bank, Czech Republic
Czech Republic Republic
Republic
ebanka, a.s,
ING BANK, Netherlands &
Czech Oberbank, Austria Banca Commerciala, Romania
Ukraine
Republic
Euro Bank, Lima Stock Exchange
Endurance, Bermuda PMI Mortgage Insurance, USA
Greece Bolsa de Valores de Lima, Peru
TLT
Investment First NLC Financial Services,
Midwest Family Mutual, USA
Advisors, LLC, USA
USA
Case Study:

Industry: BFSI
Organization: IDBI, ABN Amro
Process: Secure e-statements

Existing Workflow:
Thousands of e-statements (Bank statements, credit card statements, etc) generated on daily basis.
All were printed, stamped, signed manually and then sent via post to its recipients.

Pain Area:
o Time-consuming process
o Large volume of paper used for printing the statements
o Managing the entire paper work was a tedious job
o High costs incurred for printing, postage of statements

Requirement:
The bank wanted to go online and send bulk documents in an automated manner. It required a legally compliant
solution to sign statements to ensure security.

Solution:
E-Lock provided a bulk signing solution that would automatically sign thousands of e-statements daily, without any user
intervention.

Benefits:
o The Solution effectively reduced the time needed for signing the invoices,
o Overheads and man-hours associated with printing, signing are saved,
o Ensured non-repudiation and data integrity

Workflow:
Industry: BFSI
Organization: Banca Commerciala, Romania
Process: Loan Application & Process Approval

Existing Workflow:
The entire procedure of application for loans, money transfer by nearly 3000 customers and their approval by bank
employees was paper intensive.

Pain Area:
o Time-consuming process
o Customers had to physically visit the Bank to apply for a loan or to transfer money
o Managing the entire paper work was a tedious job
o Slow business cycles

Requirement:
To save paper and time, the Bank wanted an online procedure for loan application and approval process. Regulatory
compliant solution for digitally signing the application documents. Authenticate the applicant

Solution:
E-Lock Form signing solution enabled bank customers to securely sign and authenticate the information provided by
them. They could apply for loan online from any part of the world. Bank staff is now able to verify the information
provided by the customer online and approve the loan application by signing it electronically.
Benefits:
o Reduced Processing Time as the information arrives nearly instantaneously,
o Regardless of distance,
o Secure application & verification of the applicant information.

Workflow:

Conclusion-Why BFSI should shift from paper to electronic:

Reliable authentication is imperative for financial institutions engaging in any form of electronic banking or commerce.
The success of a particular authentication tool or methodology depends on more than the technology; it depends on
appropriate policies, procedures and controls. An effective authentication method should be implemented on an
enterprise-wide basis, have customer acceptance, reliable performance, scalability to accommodate growth, and
interoperability with existing systems and future plans. The level of authentication used by the financial institution in a
particular application should be appropriate to the level of risk of that application.