Radical change is occurring at a rapid pace in the Banking and Financial Services Industry. Disruption in technologies, in business models, in standards, and in the makeup of BFS companies themselves demands constant adaptation. Driven by competition from new fintech and insurtech players, rising consumer expectations, and emerging technologies, the incumbents must respond to rapidly changing customer opinions and perceptions while still complying with all standards and regulations.
The global business economy is moving from industry-specific offerings to new digital network economies – alliances with other companies, even competitors, to create complementary networks of offerings and services.

Action Plan
Digitalization will ultimately be the foundation on which BFS companies will build new experience management strategies to connect directly with customers and to increase market share. They must adopt a three pronged action plan

  • Optimize what they already do by implementing a stable and scalable digital core to make processes more transparent and integrated
  • Extend their current processes by connecting them to the real world using IoT technologies
  • Transform their business using a constant stream of data, enabling new service-driven business models

Carve out entity for compliance

A large Indian conglomerate with one of the largest financial services portfolio wanted to separate one legal entity from their main SAP system stack for compliance with government regulations.

There were two approaches to take it forward :-

  • Carve out a system as it is
  • Set-up the system from scratch and load full transactional data

Since the customer also wanted certain organizational structure changes also to be introduced, the 2nd option was chosen.

The entire carve out project was completed in 2 months time.

RBI compliance by consolidating data from multiple systems

RBI regulations are on the core compliance needs of Banks.

At one of India’s largest private back, Form 18 which is an RBI requirement, used to be prepared in excel by consolidating data from different MIS’s from different applications.

The bank wanted to automate this process. While most of the heads in this requirement were General Ledger balances in the SAP system, these were updated as a consolidated entry everyday. And there was no breakup of long term FD and short term FD. However this was a requirement under the RBI guidelines.

The requirement was taken up for development in SAP ECC. First data was to be updated in SAP and bifurcated. Rules which controlled file transfers intermediate system were changed, update programs were modified and separate scripts were written on other application system that send the data to SAP. Finally a formatted output was designed.

The entire Form 18 project was completed in 3 months time with the initial base report being output in the 2nd month itself.