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Press Coverage- Banknet India's Second CTO Summit- 10th May 2006

Banknet India’s Second Annual CTO Summit on 10th May 2006 at Mumbai, was attended by 300+ participants from 121 organizations. 25 Prominent Speakers discussed- Risk Management, Basel II, Business Continuity, Data Mining, Business Intelligence, CRM, Cheque Truncation, ATMs, Ebanking, Information Security, Core Banking. Conference was covered by Financial Express, Hindu-Business Line, The Asian Age, Business Standard, CXO Today, Sahara Samay etc. For more details ... Click here

RBI pushes cheque truncation

Financial Express
Banking Bureau , May 11, 2006

The Reserve Bank of India (RBI) has expressed its concern on low level of preparedness of the banking community for the cheque truncation project. Few major banks have still not finalised the vendors for the cheque truncation project. It is also expected that the apex bank may commence the phased implementation of the cheque truncation project before the stipulated deadline of December 31, 2006, with the banks who are ready for it.

RBI is also working on an arrangement for three concurrent sessions of the cheque truncation project for clearing of high value cheques, local clearing of cheques and inter-city clearing of cheques, with an ability to close these sessions at any point of time. The cheque truncation project is a national clearing module which is expected to expedite the process of inter-city cheque transfers for the banking sector.

Speaking at Banknet India's CTO summit, V Babu, deputy general manager - information technology, Bank of India said, "We are planning to put in place a cost effective alternative to the core banking solution (CBS) for the remaining 1,700 branches of our bank, which are not covered by the CBS platform. The new solution would encompass total branch automation, covering risk management, too.

M-commerce raises AML issues

The Asian Age
Asian Age Correspondent , May 11, 2006

While a new study by juniper Research predicts that the bullish economies of India and China will fuel a five-fold increase in annual mobile retail (m-retail) transactions for the rest of Asia-Pacific by 2008, banking experts are concerned about anti-money laundering or AML issues associated with m-commerce.

“If m-commerce takes off in India, the chief concern will be the ability of banks to deal with AML issues in mobile transactions. AML solutions are currently deployed at the back end operations in the banking and financial sectors and it becomes difficult to detect suspicious behaviour at the front end,” said Mr. Ravi Duvvuru, group head (compliance) Kotak Mahindra Bank, while addressing delegates at Banknet India’s second annual CTO summit in Mumbai on Wednesday.

Airtel’s business head Manoj Paul expects the m-commerce industry to grow exponentially in the next two years as people get familiar with the concept of mobile-o-mobile payments, which allows users to pay for their purchases through mobile phones.

It also removes the need for the installation of costly point-of-sale terminals for retailers transacting through credit cards. “This new method of payment eliminates credit car fraud. Currently, there aren’t enough shopkeepers using this technology in the market,” added Mr. Paul.

AML software experts suggest that a good AML solution would help gather evidence of money laundering.

“The ALM solution for banks needs to shift focus into dynamic risk profiling and move into risk assessment matrix. The current know-your-client norms are static and specify only basic data such as residential address, locality and educational background, among others. The risk profile of each customer needs to change based on current account activities. This includes suspicious financial transactions or sudden fund transfers in accounts that would not otherwise see such activities”, said Mr. Hanuman Tripathi, managing director, Infrasoft Tech, an AML software vendor.

Experts suggested that the advent of m-commerce would result in the growth of the Rs 200 crores AML software market, with vendors targeting banks, asset management companies and securities agencies. “M-commerce is a safe method of completing transactions since KYC data has been already created and stored,” he said.

KYC Approach Is Not Enough For AML
Mumbai, May 15, 2006

With the constant intake of technology and never ending job of integrating key business processes with new IT initiatives, compliance matters, competition, IT managers can barely afford to breath at a normal pace in the fast and furious world of banking.

To discuss some of these challenges facing the banking industry, top IT minds from the fraternity congregated at the Second Annual CTO Summit organized by Banknet India where risk management and Basel II compliance emerged as two top priority matters concerning the Indian banking industry.

Panelists at the event agreed that as the deadline to start implementing Basel II inches closer, Indian banks needed to get their act together and step up their efforts to become Basel II ready. Commercial banks must see to it that they have tools and provisions in place that ensure comprehensive data collection and analysis, which is the foremost criteria for Basel II compliance.

Basel II accord lays increased emphasis on regulation & risk management and banks that can manage risks effectively will not only maintain a rock-solid financial structure but also gain an edge over the competition.

Anti Money laundering (AML) was another topic of interest, that generated quite a bit of interest and some new theories surfaced during the congregation.

With banking becoming increasingly mobile, one of the key concerns of financial institutions is AML. With SEBI and RBI pushing forth the idea of AML compliance, the business of AML software is poised to hit a new high.

According to Ravi Duvvuru, Group Head (compliance), Kotak Mahindra Bank, "Since most of the AML solutions currently deployed at banks are at the back end, it is difficult to decipher shady behavior at the front end and a lot of things can go unnoticed. We need visibility at the front end where critical transactions take place and good AML solutions can do that."

Hanuman Tripathi, MD, Infrasoft Technology, a company specializing in AML software had a slightly different perspective. According to him conventional AML software are not enough to enforce visibility into transaction processes.

According to him, "A good AML software can be of immense use to banks which have a large network of branches spread across different geographies. Banks can't afford to relax with the thought of having a know-your-client (KYC) in place. Modern AML tools need to change from conventional KYC methodology to risk assessment matrix and track customers' current transactions patterns as opposed to his account activities of the past."

Following the theme 'Transforming through Technology' the event also witnessed engaging discussions on business continuity, business intelligence, CRM, payment systems and implementation of core banking solutions among others.

Transforming Banks Through Technology

The Business Standard
May 18, 2006

Banknet India brought together prominent speakers from major banks, IIM Ahmedabad and global IT Companies at the Second Annual CTO Summit on 10th May’06 to discuss the major challenges faced by the banking industry. The summit witnessed engaging discussions on business continuity, business intelligence, CRM, payment systems & implementation of core banking solution among others. Risk management & Basel II compliance emerged as two top priority matters concerning the Indian banking industry.

Panelists at the summit agreed that as the deadline to start implementing Basel II comes closer, Indian banks need to step up their efforts to become Basel II compliant. Commercial banks must see to it that they have tools & provisions in place that ensure comprehensive data collection and analysis, which is the foremost criteria for Basel II compliance.

The CTO Summit which had the theme of ‘Transforming Through Technology’ concluded with the consensus that technology will be key for banks in their efforts to achieve standardization and meet the challenges arising out of business & regulatory requirements.

RBI to go ahead with cheque truncation

The Hindu- Business Line
Business Bureau, May 11, 2006

The Reserve Bank of India (RBI) will go ahead and implement the cheque truncation system even if all the banks are not prepared for it, said a senior RBI official on the sidelines of Banknet India’s second annual CTO summit .

He said that many big banks were still unprepared in terms of implementing the cheque truncation system. "Only 52 banks are ready for the new system. Some big banks have not chosen their vendors and are still unprepared."

"The system will be put in place in a phased manner before the deadline of December 2006. Banks that are not prepared will be just left out," he added.

"We are making arrangements for three concurrent sessions of high-value, local and inter-city cheque clearing," said the official.

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