[sbinews] Technology Management

  • From: sbistcbangalore@xxxxxxxx
  • To: sbinews@xxxxxxxxxxxxx
  • Date: Sat, 13 Dec 2003 07:57:51 +0500

Technology is key, but efficacy depends on use 

MUMBAI: Technology could well turn out to be a cost monster for banks if the 
players do not use it to make a difference. But at the same time bankers feel 
that technology needs to evolve radically to be a key differentiator in the 
coming years. 

Participating in a session on “Technology: Lifeline or Cost Monster?” at the 
Bank Economists’ Conference on Thursday, Deutsche Bank’s CEO Gunit Chadha said 
that banks were relying on technology to build business and have an edge over 

“My best way of approaching technology is that by say ‘10 or ‘15, technology 
would not be a differentiator. It is a differentiator now. However, what you do 
with the technology now, will make the difference in the future,” said Mr 
Chadha. He felt that banks not thinking on these lines may well see technology 
becoming a “cost monster” in the years to come. 

Making an indirect reference to the growing commoditisation of technology, Raj 
Dosaj, senior director of Sun Microsystems said that banks were readily 
embracing tech solutions, but paying little heed to whether the same technology 
could be seamless across users. “We have completely customised technology to 
such an extent that the bank is an end user, the technology belongs to it. 
Customers are not asking this industry (tech companies) to change,” said Mr 

Recounting his IDBI Bank days, Mr Chadha said termed his relationship with his 
bank’s chief technology officer as “distrustful.” He said that each time there 
was a proposal from the technology officer, he would refuse it. “He would talk 
about things such as higher server capacity,” said Mr Chadha. The CTO ended 
more time convincing him about his ideas. Mr Chadha said that the bank was able 
to build a sound technology platform, which served its purpose of building 
business for the bank. The key issue was that in the coming years, everybody 
would have the technology, so what would differentiate you. 
On outsourcing, Mr Chadha felt that Indian banks should follow their foreign 
counterparts in setting up BPOs. “Citigroup has e-Serve, StanChart has Scope 
and HSBC and Deutsche also have their BPOs. Indian banks should consider this,” 
he said. 

Mr Chadha pointed out that the upsides in terms of cost savings from 
outsourcing were limited and banks needed to continuously evaluate the 
effectivness of outsourcing. 

SBI’s deputy managing director Ashok Kini said that his bank was in the process 
of conceptualising on what business areas the bank’s proposed IT company should 
focus on. “The plan would be finalised by March ‘04,” he said. 

Mailing list (sbinews@xxxxxxxxxxxxx) related information:

News/articles about SBI and Banking related matters published  in the print 
media, Internet etc will be circulated through this Mailing List. 

The messages in this list will help in improving awareness of SBI and its 
activities vis-a-vis the happenings in the Banking industry. This should be of 
help to all staff members of SBI, particularly those who are preparing for 
promotional written tests/interviews/group discussions. Subscription to this 
Mailing List is simple and FREE. Please check the procedure below. Please share 
this information with other colleagues/branches that could be interested in 
subscribing to this Mailing List. 

The messages circulated here should not be deemed to have the official 
endorsement of the SBI or any of its employees. The correct factual position 
may be ascertained from official sources. 

To join this mailing list, just send an email to sbinews-request@xxxxxxxxxxxxx 
with the word 'subscribe' without the quotes in the subject of the email 

To leave this mailing list, just send an email to sbinews-request@xxxxxxxxxxxxx 
with the word  'unsubscribe' without the quotes in the subject of the email 

Archives (old messages) are available for viewing at:
Click on the month-year at the lower left corner to view messages posted during 
that month. 

This is an announcements/newsletter type mailing list i.e. only the Moderator/s 
can post messages to the list. 

This mailing list is maintained by Sri. R.S.Pai, currently working as Chief 
Manager(IT-Internet Banking), SBI, Corporate Centre, Mumbai. 
Moderator: Smt. S. Vijaya, CM (Training), SBI, STC, Bangalore.
Visit http://rspai.tripod.com for some useful Banking, Reference and Utilities 

Other related posts:

  • » [sbinews] Technology Management