Technology In Retail Banking: CAIIB Retail banking (Module C),Unit 6
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CAIIB exams are conducted twice in a year. Candidates should have completed JAIIB before appearing for CAIIB Exam. Here, we will provide detailed notes of every unit of the CAIIB Exam on the latest pattern of IIBF.
So, here we are providing “Unit 6: Technology In Retail Banking” of “Module C: Marketing in Retail Banking” from “Optional Paper: Retail Banking”.
The Article is CAIIB Unit 6: Technology In Retail Banking
♦Technology Processes in Retail Banking
In terms of processes for integration of technology in retail banking, retail banks are using different approaches to modularise and standardise their processes. Four distinct process models are:
- Horizontally Organised Model where individual process platform supports one product only. The sub data in the model are not shared with other products and product platform.
- Vertically Organised Model where functionality is provided across all products. In this model, customer information is centralised. Centralised customer information builds common origination and servicing processes across all its retail banking products.
- Predominantly Horizontally Organised Model with some modularization within a product oriented feed back. Customer data integration is available to a certain extent for other products.
- Predominantly Vertically Organised Model is a hybrid model that offers common information for most of the related services. The basic information is available across products for common services to the various products.
In the retail liabilities and asset side, the software is developed mainly to capture the following types of information viz.,
- Static Information – Account Opening, Basic Loan Origination Data etc.,
- Updated Information – Income Details at different frequencies etc.,
- Transaction Information – Information from disbursement to final settlement in loan accounts and operation details in liability accounts.
- Analytics and Alerts – Both operational and strategic alerts to take action or to develop strategies for further action.
Some Important User Friendly Features
- Key Modules
- Customer Interface
- Advisor Interface
- Audio/Video Support
- Advisor Performance Management
- Business Benefits: Customer Delight – The solution’s self-service capabilities empower customers to access comprehensive banking services in a completely secure environment. The interface also enables banking staff to understand customer needs better. The additional comfort of human intervention, through video, audio and data communication, creates a truly satisfactory customer experience.
- Robust Inclusivity Framework: The solution extends the reach of the bank’s services, surmounting the complexities of diverse and far flung locations. This enables banks to include, through this new channel, their various customer segments, including specific under-banked and unbanked communities.
- Cost Saving
- The customer analytics solution, integrated with the universal banking solution, provides holistic customer analytics for banks, through both insightful business reports and rigorous statistical models. This enables the business to cross-leverage analytic output to strengthen its customer engagement and management strategy, resulting in institutionalization of customer relationships and differentiation of service experience.
- Campaign Management
- Cross-sell and Product Holding Analysis
- Customer Profitability and Lifetime Value Analysis
- Attrition and Loyalty Analysis
- Transaction Behavior Analysis
- Service Request Analysis
- Robust Framework for Customer Acquisition, Development and Retention.
- The solution encompasses end to end analytics across the customer relationship life-cycle. The interactive modules provide banks with a robust framework to understand the customer better and facilitate differentiated customer experience.
Enhanced Customer Value: The analytics solution increases the bank’s relationship revenue through analytical insights that facilitate effective cross-sell and up-sell, improved stickiness, targeted loyalty programs and profitable repositioning of offerings. This enables banks to take customer centric decisions and enhance customer value.
Improved Decision-making Support: Arming banks with best-in-class analytical CRM capabilities throughout the customer lifecycle, customer analytics solutions empower the business with the intelligence to make informed, well- advised and timely decisions.
Reduced Time to Market: The solutions provides predefined data mapping, extraction programs and data aggregation, draw analytical outputs through an automated process. The in-built analytical models and reporting templates further reduce time to go-live, significantly.
Low Total Cost of Ownership: Customer analytics solutions mandate minimal investments in terms of infrastructure capabilities and resources. The technology agnostic solution can be deployed on banks’ existing reporting and modeling tools with minimal customization effort.
♦Institute for Development and Research In Banking Technology (IDRBT)
RBI constituted a committee on “Technology Upgradation in Payment System” in year 1994 under the Chairmanship of Shri W.S Saraf, the then Executive Director of RBI. IDRBT started functioning from March 06, 1996.
- Indian Financial Network (INFINET)
- Structured Financial Messaging System (SFMS)
- National Financial Switch (NFS)
- Indian Banking Community Cloud (IBCC)
♦Wealth management solutions
- Wealth management solutions are mostly modular, fully scalable, integrated core banking and investment management system designed for the specific needs of retail and private banks. They offer unique combination of an extensive portfolio of functions with impressive flexibility that enables end-to-end processing of investment products from diverse asset classes including structured deposits, structured notes, equities, mutual funds and insurance.
- Structured Product
- Mutual Funds
Business Benefits: Leverage the HNWI Opportunity – Finacle wealth management solution enables financial institutions to derive rich integrated insights about the HNWI client’s investment portfolio.
Ease of Enhancing Product Portfolio: The user-friendly solutions provide flexibility to tailor solutions and create new product flavors for emerging customer segments. It enables business users at the bank to add innovative functionalities and features to their offerings, without changing the source code of the application.
Higher Operational Efficiency: The solutions enable Straight Through Processing (STP) and are fortified with a powerful integration framework to interface with the bank’s core banking solution and external data sources. This plays a crucial role in minimizing operational delays and ensuring seamless transaction flows at the bank.
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