Indian Banks Facing Attrition, Vendor and Analytics-based Challenges

The Indian banking industry witnessed 18.4% growth in its assets, leading to an increase in the number of ATMs and branches in the fiscal year 2005-06. However, there are copious impediments confronting Indian banks, so says a recently published CII-PwC report.

According to the report, with attrition rates going northwards, it is increasingly becoming difficult to retain people with the desired skill set. About 44% of the survey respondents touched upon the need to hire, retain and motivate people.

Nearly half the banks surveyed had problems on the vendor’s side regarding inability to develop bespoke solutions, difficulty in enforcing and achieving SLAs and overall management of vendors.

On the analytics side, banks were very concerned about managing growth in data volumes and facilitating decision making by enhancing data quality, implementing identity management, metadata and master data management and obtaining a good BI set-up.

Some of the banks were also concerned about their ability to match regulatory requirements on time. Other areas of concern were security, business continuity planning and disaster recovery.