Transcript Information Technology Trend in Development Banks

Information Technology Trend
in
Development Banks
Alberto Rosati – Latin America Banking Business Development
[email protected]
Prelude
“ The dramatic events ushering in the new
century—from globalization and a final, major
wave of consolidation to regulatory changes and
technology breakthroughs—are compelling
development banks[DB] to turn their focus toward
efficiency and country relationship development.”*
*Goliath Industry and Market Reports on Bank Systems and Technology
2
Is real IT transformation likely to take place?
Three converging forces appear to make it
unavoidable:
 DBs spreading across geographies
 Financial transactions are commoditized
 Regulatory demands are unprecedented.
3
Drivers to IT transformation
The next 10 years will be defined by:
Accelerated expansion
Process efficiency
Greater Country sophistication
More intense regulatory demands
Opening up markets in existing and new member countries
4
Challenges Faced By Development Banks
DBs require real time system control on their operations
DBs are unable to effectively track the development results
 The credibility of the financial reports becomes questionable
Systematic Development Bank-wide management of data
Risk measurement and management is becoming increasingly
complex
5
Advantage IT
An effective IT Solution provide:
 Operational effectiveness, internal efficiency
 Collaborative tools to help create, cultivate, and disseminate
knowledge.
 Accessibility to data, information, and knowledge.
 The ability to easily search across and retrieve relevant information
 A project management system based on complete project lifecycle
 A resource management system which improve linkages
6
Plan for 21st Century IT Transformation
 Focus on improving the internal efficiency and Country centricity
Go horizontal…
 Make the transition from banking operations in silos to an integrated
organization.
Balance objectives in IT strategy…
 Balance the use of technology resources to support revenue growth
Focus on governance…
 IT to align with business strategy to improve returns on IT spending.
 Strategies addressing enterprise architecture, process automation and
member analytics
7
Need of the Hour
• The information systems and technology infrastructure must be
improved to:
 support the results-based agenda and
 Align the systems with the new organizational structure.
• And to support DB’s three major information systems initiatives:
 Knowledge management
 Project processing and portfolio management
 Program resource management
Latest Facts:
• World Bank IT strategy took the approach of building up integrated systems for sharing of information with
member countries
• IFC has provided the user interfaces to access existing information, while gradually replacing the older mainframe
systems
• IDB has developed facilities using portal technology to provide access to many disparate systems .
• IADB is planning for implementation of Integrated IT Roadmap to synchronizes their ORG structure
• ADB’s initial portal applications are designed to provide access to knowledge management applications
Source- ADB’s information Technology Strategy and Capital Expenditure Requirements: 2004–2009 and
IADB website
8
Identify the IT Role…
IT enhances the capacity to review project processing and portfolio performance
IT monitors performance against Millennium Development Goals
IT facilitate tracking of activities and investments under development Initiatives
IT systems provide the tools to report on project performance at each stage
IT supports improved planning, management, and reporting on resource management
IT supports documentation on study reports for evaluation and record lessons learned
9
Hot Solutions for DBs
A comprehensive solution should synchronize with business operations.
Some of the latest solutions are:
 Lending Solutions with an eye and ear to the ground
 Innovative Knowledge Management Solution
 A comprehensive IFRS solution
 An effective development outcome tracking system
 Creation of Central Repository -Operational Data Store(ODS)
 Setting up of an extension of DB’s IT Department in a cost effective
professional atmosphere-Offshore Development Centers(ODC)
Source-IFC Capital Budget 2008
10
e-Loan System
11
Integrated Loan Administration Platform
Loan Administration Database
Client Connection
Loan WEB, Loan Tracking
System,
Loan Data
Warehouse
Loan Database
Other Systems
Financial
Database
Loan
Administration System
[LAS]
Controller’s
Data Warehouse
Loan
Kiosk
LAS WEB, LTS,
Loan Database
Loan System
Knowledge Management(KM)
Identify
Knowledge
Discovery Tools
Data Mining
Test
Retrieval/Mining
Diffuse/Use
Collect/Codify
Information
Feeds Intelligent
Agents
Knowledge
Database
Document
Depositories
(Data Warehouse)
Decision Support
Groupware
Video
Conferencing
Create
Thinking Aids
Conceptual
Mapping
Infrastructure: Networks-Internet ; Intranet
Latest Facts:
ADB A KM-framework was created in 2002.In June 2004 IT strategy was implemented.
AFDBThe Bank’s knowledge management capabilities have been upgraded through the introduction of an Integrated
Knowledge Management System via intranet and internet sites.
Source-Knowledge Management for Development Journal, Vol 1, No 2 (2005) and AfDB Annual Report 2005
12
ODS Overview
ODS is a central repository for corporate-wide data sharing
Data from transaction systems is loaded in the ODS
Stores historic data from transaction systems
Provides view for other systems for their central reference
 ODS-design establish an efficient mechanism to store and retrieve
valuable business information.
13
Advantage ODC
Infrastructure, Security as per client’s Office Standards
Savings in capital expenditure
Retention of Knowledge - Business and Processes
Accountability for Productivity and Quality of Deliverables
Resources 100% dedicated to Program at a blended rate
ODC operating in a different time zone speed up development
time
Flexible Pricing model (T&M, Fixed Price, Hybrid)
14
Takeaways…
• Information on how IT mitigate DB’s business challenges
• The universal high level IT roadmap
• Information on comprehensive IT Strategy
• Sharing of IT experience in developing solutions for
Development Banks
15
Alberto Rosati – Latin America Banking Business Development
[email protected]
www.satyam.com
16