Summary of Discussion of the Review workshop on” IT Operations of Banks”

April 10, 2018

Bangladesh Institute of Bank Management (BIBM) organized a review workshop on “IT

Operations of Banks” on April 10, 2018. Mr. Abu Hena Mohd. Razee Hassan, Chairman,
BIBM Executive Committee and Deputy Governor, Bangladesh Bank was present in the
workshop as chief guest. The review team consists of Mr. Md. Shihab Uddin khan, Associate
Professor, BIBM, Mr. Md. Mahbubur Rahman Alam, Associate Professor, BIBM, Ms. Kaniz
Rabbi, Assistant Professor, BIBM, Md. Foysal Hasan, Lecturer, BIBM and
Mr. Mohammad Emdadul Haque, FVP and Head of IT Operation Division, Dutch-Bangla
Bank Ltd.; Ms. Nazeen Sultana, Former Deputy Governor, Bangladesh Bank; Mr. A.K.M
Fazlul Haque Mia, Executive Director, Bangladesh Bank; Mr. S. M. Mainuddin Chowdhury,
Additional Managing Director, Southeast Bank Ltd.; Mr. Abul Kashem Md. Shirin,
Managing Director and CEO, Dutch Bangla Bank Ltd.; Mr. Monitur Rahman, Country
Technology Manager, Standard Chartered Bank Ltd.; Professor Dr. Barkat-e Khuda,
Muzaffer Ahmad Chair Professor, BIBM and Helal Ahmed Chowdhury, Supernumerary
Professor, BIBM were present on the occasion as designated discussants. Dr. Toufic Ahmad
Choudhury, Director General, BIBM, chaired the occasion. A number of participants from
different banks, media representatives and faculty members of BIBM attended the workshop.

Dr. Toufic Ahmad Choudhury, Director General, BIBM delivered his address of
welcome. After the welcome address, Mr. Md. Shihab Uddin khan, Associate Professor of
BIBM, presented a keynote paper on the subject as the team leader of the review team.

A number of issues were raised by the participants from different banks concerning IT
operations of banks. The relevant comments, discussions, and issues raised by the discussants
are summarized below:

Mr. Abu Hena Mohd. Razee Hassan, Chairman, BIBM Executive Committee and
Deputy Governor, Bangladesh Bank, emphasized the importance of computerized
information systems in the business operations in the banking and financial sector, and the
increasing dependence on the computerized information systems over the years. He said that
it has now become impossible to separate ICT from the business of the banks and the
financial institutions. In tune with the global trends, the banks of Bangladesh have been
investing heavily in technology infrastructure, solutions, and manpower. He also focused that
banks are suffering from efficient manpower in the IT field, improper planning and lack of
long-term vision. And overcome these problems, every bank should allocate a certain portion
of their annual profit for ICT budget. This budget may be spent for ICT infrastructure
development and manpower training.

Ms. Nazeen Sultana, Former Deputy Governor, Bangladesh Bank, stated that business
and IT people should work together to achieve the goal of the organization. Proper IT
governance is essential for a bank. She addressed that training is the key to develop employee
capability, especially in the IT field. She suggested top management to send employees for
various training within the country and abroad. Ms. Nazneen also advised that intranet portal
can be used for sharing news and different circulars.

Mr. A.K.M Fazlul Haque Mia, Executive Director, Bangladesh Bank, prioritized on
paperless banking with the advent of technology adoption. He stressed that banks should play
a key role to make a cashless society by issuing cards and others. He suggested that banks
should take necessary steps against cyber-attacks. He also emphasized on increasing IT
budget.

Mr. Abul Kashem Md. Shirin, Managing Director, and CEO, Dutch Bangla Bank Ltd.,
opined on data center and disaster recovery sites. He suggested developing Tire-1 data center
for banks. Mr. Shirin said that banks should establish a data center in a separate building to
avoid the conflict of interests. As the ROI in IT is positive and banks should invest more and
more in IT. He recommended to develop some software in-house but to outsource the
important ones because of safety and security issues. Especially, software which has prompt
internet connectivity, should not be developed in-house. He said that if banks are not cable of
handling the massive growth of mobile banking, they will suffer in the long run. He also
suggested banks develop a sustainable infrastructure for mobile banking. E-commerce
transactions are not increasing due to trust issues related to payment and product delivery. So,
he recommended that e-commerce sites should deliver products as they committed with the
customers.

Mr. S. M. Mainuddin Chowdhury, Additional Managing Director, Southeast Bank Ltd.,

emphasized on proper implementation of ICT guideline given by Bangladesh Bank. Proper
training for IT people is essential, so he suggested developing good training centers. He
recommended for setting a standard for different IT services like Data Center, Disaster
recovery site etc. According to him, Artificial Intelligence and Automation should be
introduced for smooth operations of IT related services. People, process, and technology
alignment can ensure sustainable IT services in banks. He recommended for developing an IT
related incidents sharing center where all banks can share their recent treats and challenges so
that others can learn from there.

Mr. Monitur Rahman, Country Technology Manager, Standard Chartered Bank

Ltd., focused on cloud computing which will help banks to reduce cost and also ensure
transferring risk. Fintech is a big challenge for financial institutions so banks need to be
aware of fintech opportunities and challenges. He emphasized on Vulnerability assessments
and penetration testing by the banks. He recommended developing a prompt alert system for
banks to respond in a critical situation and for critical systems. He also talked about the
importance and risks associated with outsourcing and vendors management. Banks should
introduce big data analytics to generate perfect MIS report.

Helal Ahmed Chowdhury, Supernumerary Professor, BIBM, described the importance of

technology for reducing cost and increasing efficiency. He also explained the necessity of
information systems audit in banks. Banks are not taking care of information systems audit.
Banks should invest in IS audit more and more. He suggested banks establish DRS in the
different seismic zone for securing data from disaster.

Views of Participants

· IT governance should be properly implemented.

· Rethinking cloud computing services like IaaS, PaaS etc. because of security,
connectivity, data migration etc.

· Government and Bangladesh Bank can introduce a national level data center for
providing cloud-based services for banks and others.

· Advanced checklist/framework about selecting a proper CBS should be formulated by

Bangladesh Bank.

· Bangladesh Bank should organize a seminar/workshop on IT security for MD/DMD of

different banks.

· Banks should give more importance in conducting proper IT audit.

· MIS should be centralized for the better benefit of banks.

· Senior/experienced employee should be engaged in IT audit.

· Bangladesh Bank should develop a knowledge sharing platform among the bankers.

Dr. Toufic Ahmad Choudhury, Director General, BIBM inaugurated the workshop as session
chairman and Dr. Shah Md. Ahsan Habib, Professor & Director (Training), BIBM gave his
concluding remarks.