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BFSI Term used by IT/BPO companies to refer to the services theyoffer to companies in these domains:

Banking may include core banking, retail, private, corporate,investment, cards and the like.Financial Services may include stock-broking, paymentgateways, mutual funds etc.Insurance covers both life and non-life .

A lot of data processing, application testing and softwaredevelopment activities are outsourced to companies that

specialise in these domains

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BFSI in India

Banking is the most dominant sector of the financial system inIndia.

BFSI comprise 38 per cent of the outsourcing industry in India(worth $47.8 billion in 2007).

Outsourced services from the BFSI domain include customersupport, software and solutions required for core banking,

various banking processes like mortgage loan processing,application processing, verifications, market analysis,financial statement analysis etc.

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Then & Now

Early 90s - Electronification

Now, more than most other industries, banksand financial institutions rely on gathering,processing, analyzing and providing informationin order to meet the needs of customers.

Thus, it is not surprising that banks were amongthe earliest adopters of automated informationprocessing technology.

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The visible benefits of IT in day-to-day bankingin India are quite well known.

Theres Anywhere Banking through Core Banking

SystemsAnytime Banking through new, 24/7/365 deliverychannels such as Automated Teller Machines (ATMs),and Net and Mobile BankingIn addition, IT has enabled the efficient, accurate andtimely management of the increased transactionvolume that comes with a larger customer base.National Electronic Funds transfer (NEFT) System andthe National Electronic Clearing Service (NECS).

Then & Now (Contd.)

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Services that BFSI provides

Retail banking - financial services provided by the high-street banks forindividual customers and small businesses through their branch network.

Investment banking - covers the provision of specialized financial servicesand advice to industrial, commercial and government clients.

Private banking - specialist banks offering services to high net-worthindividuals (the wealthy). The range of financial services offered is wideand can be tailored to the needs of the customer; for e.g., assetmanagement, estate planning, etc.

Insurance Companies - analyzing client needs and negotiating the bestdeal with insurance companies, insurers spreading their risk by taking ontheir own insurance against their claims.

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Job Flow Chart : Various verticals within BFSI

Ensure Customer Information and Data Security Improve Customer ServiceQuality

Improve Customer Retention Manage Customer Service Expectations andCosts

- GeneralCustomer service

- Frauddetection

- Crossselling, upselling

- Customer

analytics for retention,cross selling,new productoffering

- Accountadministration

- Processingcustomer requests

- Processingrefunds

Deliverycapability

-Telephone- -Web Chat- -Email- -Fax-Channels

Credit Cards Mortgages Retail Banking Property & Casualty Telecom & Media

- Remittanceprocessing

- Renewals,endorsements

- Billing

- Generalenquiries

- Informationrequests

- Customer service

- Welcome calls

- Accountmanagement

- Technicalsupport

- Billing/ helpdesk support

- Maintenance of account

- Account enquiries

- Address change

- Credit requests

- Statementrequests

- E-mail servicesupport

- Correspondenceand fax

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Role of IT in BFSI

CRM & Call CentersCash management & Payment servicesData warehousing & Data MiningWork flow automation (MIS, EIS, DSS)Audit & surveillancePremium collection & Claims processingNetworked operations & many more

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Technology Services for BFSI

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Technology Services for BFSI (Contd.)

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Technology Services for BFSI (Contd.)

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IT Security in BFSI

Information security is needed for protection ofDATA from unauthorized

AccessUseDisclosureDestructionModification or disruption

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Reasons for IT Security

Firstly, local firms doing business internationallyneed to flash the secure credentials of theirnetworks in order to gain trust of their globalpartner

Secondly, regulators (like RBI) have issuedguidelines to banking and finance companiesadvising them to secure their information assets.

Thirdly, companies are increasingly doing businessover intranets or public networks.

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Case Study:TCS Banking & FinancialServices

IT is required for optimized investments, enhancedoperational efficiencies, minimized risk, and sustainedcost leadership.

What TCS ProvidesReliable and secure systems that address marketchanges quicklyDevelop profitable customer relationshipsSecure new opportunities to stay ahead of competition

Helps Banking and Financial Services institutions tofocus on their core financial services competencies

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TCS BaNCS: Banking

Challenges Faced:

Globalization, raising income levels of people inthe emerging markets and increasingly tech-savvy people

Access to a diverse customer baseFast-changing regulatory mandates and newcompetition.

Banks require solutions capable of increasing operational

efficiency, reducing operational costs, and effectivelymanagingrisks.

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TCS Financial Solutions:

Offers help to organizations of all sizes withpowerful and flexible banking solutionsOffers high levels of operational control and

increased speed-to-market flexibility forcommercial banksGives banks the competitive edge required toanticipate and meet their customers needs

and expectations.Some Specific Solutions Islamic Banking ,Core Banking , Universal Banking

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TCS BaNCS: Capital

MarketsChallenges faced:Competition in capital markets with

customer satisfaction.Complex cross-border tradesStringent regulations on transparency andexecution quality

Meet growing customer expectations

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TCS Financial Solutions:

Helps both buy-side and sell side firms to implement

RobustError-proof Highly-scalable processes for Securities Trading,

Trade Processing , Portfolio Accounting andCorporate Actions administration.Provides integration of the mid and back-office withthe front-office using direct market access.

Some Specific Solutions- Private Banking, Wealthmanagement.

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TCS BaNCS: Insurance

Challenges faced:

Continuous process improvements, flexibility

in responding to changes, and superiorcustomer experience have becomeimperatives for insurance companies.Increasing regulatory demands, changing

demographics and global competition

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TCS Financial Solutions:

Performs multiple functions to meet thevaried needs of insurance enterprises.

The Web-based, flexible, and scalablesolutions enhance operational efficiencyand facilitate business agilityIncludes line-of-business products forproperty and casualty, workerscompensation, extended warranty,individual life, group life and reinsurance.

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Conclusion

We know that investments in newertechnologies must be made

To modernize existing operations

To face competitive challenges, and To meet customer expectations.

Achieving cost savings, energy efficiency and

environmental friendliness also need to bekept in mind while adopting the latesttechnologies.

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References

Information technology and banking a continuingagendaDuvvuri Subbarao, Bureau of Indian Standards, 2009

Getting the big pictureEnable India & Fourth Wave Foundation

Tata Consultancy Services : Banking & Financial Serviceshttp://www.tcs.com/industries/banking

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Thank You