Evolution of Core Banking in India

An Analysis on sidelines of ING Vysya Bank’s IT Evolution

Subhash Chandra Jose

Evolution of Core Banking in India

ING Vysya’s Evolution post Core Banking

Changing Gears!

Dun & Bradstreet Award Best Private Sector Bank

Sunday Standard award Safest Banker

The Economic Times Top 5 Trusted Brands

Over 550 branches

A premier private sector bank in India with a heritage of over 80 years.

Over 630 ATMs

Over 2 million customers

Over US 6333 million in deposits

Over 10,000 employees

ING Vysya Bank in India

More Customer Parameters

Client Server Architecture

Thick client

Integration - Batch processes based

WAN based

2000’s

Lear

nin

g

1990s

Entr

y

Basic Core Banking

Product Centric

Developed in Silos

Legacy Systems

LAN Based

Evolution of Core Banking in India

Multi channel platform

Service Oriented Architecture

Real time processing

Customer centricity

regulatory compliance

Rea

dy

for

Mar

ket

2010 +

Evolution of Core Banking in India

ING Vysya’s Evolution post Core Banking

Changing Gears!

- 6 -

ING Vysya’ s First Real Core Banking Experience

2001

Core

Banking

Implementat

ion Starts

2002

First Pilot

Branch

Migrated

2003

25%

branches

migrated

2004

60%

branches

migrated

2006

Migration

complete

Branch wise rollout ranging 1 – 2 months of activity

Thick client systems

Product based ‘buggy’ system

Logistics Intensive

High Costs

How the Migration was done

2003 - 2004

New

ecosystem around CBS

starts

- 7 -

The New Core Banking – Evolution

Completely Outsourced

Model

Expanding product base

Around 150+ apps added

New GLs

New DC

Offline Acc Open

FX, Treasury

revamp

Cash

Management

Consumer

lending

Trade Fiinanace, outsourced

switch, Reporting

2005 -2008

2009 -2011

2003 - 2005

2012-2014

TreasuryInternet Banking,

GL

Credit Risk Mgmnt

Demat Acc Mgmnt

Payments

ECS, New Internet

Banking

New Mobile

Bnkg

New CBS

ISBS (metro/urban)

ALPM (semi urban & rural) -

LAN Based systems - used in

1990’s

Inflection Point !

High Maintenance & Opex Costs

New interfaces was time consuming

Time to market suffered

Strategic Technology

InnovationProduct Centric Customer Centric

ESB

Evolution of Core Banking in India

ING Vysya’s Evolution post Core Banking

Changing Gears!

- 9 -

Our new Customer Centric CBS – The way we did it!

This program changed :

Core Banking system

The Data Center

2000+ new desktops

Bandwidth for all

network

MQ series changes

JDBC driver & DB

version

Maximum Transformation

Agile principles of

‘welcoming change’ v.s.

static scope

Change Control Board

with strong stakeholders

with IT on the lead.

Prioritization of changes

in BAU & parallel

development in project

line

Regression suite

Zero Change Freeze

Completed the project 2

quarters ahead of schedule

v.s. the board commitment.

Extensive planning

Factory Model framework

creation with project

management best

practices

Agile !

Fast Pace Implementation

In Feb 14, ING Vysya launched a new Customer Centric CBS

after a swift 18 month journey &smooth cut over

- 10 -

Building a Customer Centric Bank

Customer Focus

• New Products -

faster

• Consistent multi

channel

experience

• CBS central

engine for all

channels

• Zero stored

customer data

upstream and

downstream

Technology innovation

• Plug and Play integration

• DC Ops automation

• Increase availability

• Virtualize!

• Embrace Open source

• Optimize Power

Lower Operational Deficiencies

• Standardization of business processes

• Straight

through-

processing

• Elimination of

manual

operations

• Outsource non-

core operations

Customer Centric BankFull Real-time view of customers & for customers

– Best Customer Experience

A customer centric core banking system is the first enabler for a customer centric bank

Thank You