Professional Documents
Culture Documents
Banking
Technology
Global Operations
ATMs
POS Terminals and Cash dispenser
RAISING DEPOSITS
Corporate Network
Risk Management
Resource Management
BANKS BUSINESS
.....
......
SBI HISTORY
State Bank of India (SBI) is the largest banking and financial services company in India by revenue and total assets. Its a state-owned corporation with its headquarters in Mumbai, Maharashtra. SBI provides a range of banking products through its vast network of branches in India and overseas, including products aimed at non-resident Indians (NRIs). The State Bank Group, with over 16,000 branches, has the largest banking branch network in India. SBI has 14 Local Head Offices and 57 Zonal Offices that are located at important cities throughout the country. It also has around 130 branches overseas.
Changes brought in IT
Late 1990s More than 8000 branches either on decentralized systems or manually operated, Main Frame / Mini Computers used at CO/LHO/ZO for backend operations. Internet Banking Facility for individuals. All ATMs of State Bank Group networked.
ELITEX-2008
Changes brought in IT
2001 - KMPG appointed consultant for preparing IT Plan for the Bank. Core Banking proposed, FNS, CS, COMLINK selected 2002 All branches computerized but on decentralized systems,
Core Banking initiative started
ELITEX-2008
Changes brought in IT
2008- more than 6500 branches (95% of business) on Core Banking Solution (CBS), Internet Banking facility for Corporate customers More Interfaces developed with eCommerce & other sites through alternate channels like ATM & Online Banking All Foreign Offices on Centralized Solution BPR initiative to realign business process with changes due to IT
ELITEX-2008
10
Changes brought in IT
Large Network as backbone for connectivity across the country Multiple Service Providers for providing the links BSNL, MTNL, Reliance, Tata & Railtel Multiple Technologies to support the networking infrastructure Leased lines, Dial-up, CDMA & VSATs
ELITEX-2008
11
System Administrator
ELITEX-2008
12
Branch User/Admins
Network Administrators
ELITEX-2008
System Administrators
13
Organization structure of IT
DMD(IT) CGM (IT) CIO DMD (I&A)
CGM (I&A)
GM (I&A)
Application Owners
ELITEX-2008
14
Organizational Structure of IS
DMD(IT)
GM (IT) & CISO
AGM (ISD) Information Security Officers FUNCTIONS Consulting Monitoring Compliance
2003 - Information Security consultant appointed for Information Security Initiation 2004 - Information Security Department setup headed by GM (IT) & CISO and supported by CISA qualified ISOs ISSSC setup by the Board
ELITEX-2008 15
Objective of IS
To provide banks business processes with reliable information systems by systematically assessing, communicating and mitigating risks, thereby increasing customers trust on the bank and achieving world class standards in information security.
ELITEX-2008
16
ONGC
Online vendor payments across the country enabled by SBI
IOC
Same day credit to IOC for Dealer transactions across the country either online or through sweep facility Ministry of Agriculture All Pay and Account offices under the Ministry are making Vendor payments electronically through our CMP. This is shortly being extended to Department of Revenue (MoF) & Ministry of External Affairs.
SBI is working with the Govt. of Andhra Pradesh to enable payment of Social Security Pension and payment of stipends under the National Rural Employment Guarantee Scheme (NREGS) Over 1 mm No Frills savings account have been/are being opened in the names of the beneficiaries, into which the Govt. benefits are paid SBI Tiny Cards based on smart Card technology provided to the beneficiaries who can withdraw money/deposit money by simply swiping their SBI Tiny Cards on a hand-held device with the Business Correspondent/Business Facilitator in their village. SBI tied up with INDIA POST for this purpose SBI is also working closely with Govt. of Rajasthan in the Bhamashah scheme for upliftment of families below poverty line SBI Tiny Card to enable Payment of insurance premium Payment of SIP Mutual Funds Recharging of Mobile phones
RECEIPTS
Online Tax Accounting System (OLTAS) / Electronic Accounting System in Excise and Service Tax (EASIEST) Online Direct Taxes Collection of Govt. of India (Income Tax / Corporation Tax etc) Banks are reporting transactions through electronic strings to RBI for funds settlement and to the website of TIN of CBDT for update of Assesse data Data extracted at SBIs state-of-the-art data centre at Navi Mumbai the same day and processed funds settled on the next day itself Enabling Govt. to view their collection of Direct Taxes throughout the country on a daily basis Central Excise & Service Tax Collection is done similarly
RECEIPTS
E- FREIGHT
New facility started with Indian Railways
E-TICKETING
Railway ticketing through the banks Internet banking process Booking of railway tickets through internet banking. Nearly 20% of tickets sold on only western railway is through e-ticketing or e- rail.
Facility of e-payment of freights to corporates Nearly 100 corporates have been covered in this system.
RECEIPTS
Cyber Treasury
Technology partnerships with various State Governments
Large number of small value taxes commercial tax, VAT, CST, etc. remitted by public through internet Remitters get a cyber receipt
ADVANTAGES TO CUSTOMERS
It is convenient. It isn't bound by operational timings. There are no geographical barriers. Services can be offered at a miniscule cost. Check your transactions at any time of the day, and as many times as you want to. Getting quarterly statements from the bank, transferring funds to outstation, and other such activities can be done free of charge through online banking.
ADVANTAGES TO BANK
Very low setup cost. Capability to cater to a very large customer base. Saves a lot of operational costs. Adds to the baseline. Banks san offer a lot of personalized services to their customers. Reduction of burden on branch banking.
DISADVANTAGES
Need an account with an Internet Service Provider (ISP)
Security concerns, like hackers accessing your bank accounts Original setup for bill paying time is time-consuming but will ultimately be a time-saver Switching banks can be more cumbersome online than in person
Desk Top Decision Making Capability Centralised Database Management System Enterprise Knowledge Management System
Desk Top Analytical Capability Offsite Supervisory Systems Integrated Forex Management System Human Resource Information System
Desk Top Transactional Capability Integrated Accounting System Integrated Government Accounting System Currency Operations System
DRS
Experts recommend a three-pronged DR strategy for any IT driven organization: (i) prevention, which can totally avoid or minimize occurrence of disasters, (ii) anticipation, in which likely disaster scenarios can be identified and preventive action taken (iii) mitigation in which corrective steps can be initiated at the right time to minimize the impact of disasters
CORPORATE BANKING:-
The Online SBI corporate banking application provides features to administer and manage corporate accounts online. The corporate module provides roles such as Regulator, Admin, Up loader, Transaction Maker, Authorizer, and Auditor. These roles have access to the following functions: Manage users, define rights and transaction rules on corporate accounts Access accounts in several branches with a single sign-on mechanism Upload files to make bulk transactions to third parties, supplier, vendor and tax collection authorities. Use online transactional features such as fund transfer to own accounts, third party payments, and draft issues Make bill payments over the Internet. Authorize, modify, reschedule and cancel transactions, based on rights assigned to the user Generate account statement Enquire on transaction details or current balance
Logon to OnlineSBI
New Technologies
- Biometrics - Cheque / cash acceptation - Barcode scanning - Ondemand printing of item value - Display additional media such as phone card
Weaknesses: Lack of awareness among the existing customers regarding internet banking Obsolesce of technology take place very soon specially in terms of security on internet. Procedure for applying for id and password for using services related to internet banking takes time. Lack of knowledge is found regarding internet banking in employees of SBI Implementation of newer technology is little bit complicated Employees needs training to obtain knowledge regarding I-banking
Challenges: Maintaining Business Edge over competitors in the context of sameness in IT infrastructure Multiple vendor support is necessary for working of highly complex technology Maintaining secured IT infrastructure for business operations Alternative must be there in case of failure of system
Security Awareness
User awareness through multiple channels like intranet, training etc. e-Learning package on information security distributed across Bank Specialized IS awareness sessions for controllers Dedicated IS Security sessions during training. Observing Computer Security Day every year across the organization. Write ups on Information Security in the in-house magazines Exchange of information on threats and vulnerabilities at appropriate forums.
ELITEX-2008 44
ELITEX-2008
45
Challenges ahead
Retaining Bank's lead Position
Maintaining Business Edge over competitors in the context of sameness in IT infrastructure
Assured Availability
Financially critical systems increasingly depend on IT Delivery channels- no margin for downtime
Infrastructure derisking
Tie-up with multiple vendors for spreading risks due to infrastructure failures and obsolescence
ELITEX-2008
46
Challenges ahead
Managing IS Security
Information Security dependency on vendor inputs Complex networked environment leading to lack of Know Your - Employee , Systems & Procedures , Vendors Maintaining Confidentiality & Privacy of Data while in storage, transmission & processing.
Providing DRP & BCP in a complex technology infrastructure supported by multiple vendors
ELITEX-2008
47
Issues in Implementation
Less than 10% of failures are due to technical snags most are due to poor management and implementation
Resistance to change Overlooking process reengineering Project management Dedicated project teams Change management Policies People Skills & Training Basic Infrastructure telecom, power Security Privacy & confidentiality Legal and regulatory issues
FINANCIAL MANAGEMENT
INPUTS
PAYMENTS RECEIPTS DATA FROM STOCK EXCHANGES OF SHARE PRICES
PROCESS
APPLICATIONS ACCOUNTING QUERY DECISION ANALYSIS CONTROL
OUTPUTS
REPORTS STATUTORY COMPLIANCE
USES
INFORMATION UPDATES OPERATION UPDATES DECISION ANALYSIS ACTION UPDATE