Banking Sector Transformation Driven By IT Solutions: Frost & Sullivan

India has the highest concentration of banking entities globally and these form the backbone of the economy, contributing nearly 65 percent of the GDP in 2011. The banking sector has been witnessing dynamic growth over the last few years; and along with nationalised banks, many private and foreign banks have setup operations in India. Banks now are critically dependent on information technology (IT) to support core functions. The rising competition in this sector has led to further adoption of IT systems to streamline and automate banking processes.

The Indian banking sector has invested heavily in state-of-the-art technology and applications, enabling it to innovate and adopt global best practices, meet customer expectations, and gain operational efficiencies. As the way forward, banks now seek to outsource the operational activities of IT management and focus on their core business competencies, giving them a sustainable competitive edge.

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IT has become a necessity for the banking sector in order to deliver 100 percent performance and offer its customers complete value. But more than just implementation is the need to understand which solution will work best for the banking sector and offer competitive advantage.

Nishchal Khorana, Head - Consulting, Information & Communications Technology Practice, Frost & Sullivan, South Asia & Middle East, noted, “The banking vertical relies heavily on technology for operational activities. While on one hand, cooperative and rural banks are investing in core banking solutions to meet basic requirements, larger banks are investing in solutions providing enhanced customer experience and operational excellence. This creates the need for a platform for industry thought leaders to discuss and debate various means to optimise IT spending, increase value from existing solutions, and define best practices.”