Information Technology Trend in Development Banks

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Information Technology Trend  in Development
Banks
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Prelude

• The dramatic events ushering in the new
  centuryfrom globalization and a final, major
  wave of consolidation to regulatory changes and
  technology breakthroughsare compelling
  development banksDB to turn their focus toward
  efficiency and country relationship
  development.

Goliath Industry and Market Reports on Bank
Systems and Technology
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Is real IT transformation likely to take place?

• Three converging forces appear to make it
  unavoidable
  
• DBs spreading across geographies
• Financial transactions are commoditized
• Regulatory demands are unprecedented.

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Drivers to IT transformation

• The next 10 years will be defined by
• Accelerated expansion
• Process efficiency
• Greater Country sophistication
• More intense regulatory demands
• Opening up markets in existing and new member
  countries

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Challenges Faced By Development Banks

• DBs require real time system control on their
  operations
  
• DBs are unable to effectively track the
  development results
  
• The credibility of the financial reports becomes
  questionable
  
• Systematic Development Bank-wide management of
  data
  
• Risk measurement and management is becoming
  increasingly complex

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Advantage IT

• An effective IT Solution provide
• Operational effectiveness, internal efficiency
• Collaborative tools to help create, cultivate,
  and disseminate knowledge.
  
• Accessibility to data, information, and
  knowledge.
  
• The ability to easily search across and retrieve
  relevant information
  
• A project management system based on complete
  project lifecycle
  
• A resource management system which improve
  linkages

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Plan for 21st Century IT Transformation

• Focus on improving the internal efficiency and
  Country centricity
  
• Go horizontal
• Make the transition from banking operations in
  silos to an integrated organization.
  
• Balance objectives in IT strategy
• Balance the use of technology resources to
  support revenue growth
  
• Focus on governance
• IT to align with business strategy to improve
  returns on IT spending.
  
• Strategies addressing enterprise architecture,
  process automation and member analytics

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Need of the Hour

• The information systems and technology
  infrastructure must be improved to
  
• support the results-based agenda and
• Align the systems with the new organizational
  structure.
  
• And to support DBs three major information
  systems initiatives
  
• Knowledge management
• Project processing and portfolio management
• Program resource management

Latest Facts World Bank IT strategy took the ap
proach of building up integrated systems for
sharing of information with member countries
IFC has provided the user interfaces to access
existing information, while gradually replacing
the older mainframe systems IDB has developed f
acilities using portal technology to provide
access to many disparate systems .
IADB is planning for implementation of
Integrated IT Roadmap to synchronizes their ORG
structure ADBs initial portal applications are
designed to provide access to knowledge
management applications Source- ADBs inform
ation Technology Strategy and Capital Expenditure
Requirements 20042009 and IADB website
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Identify the IT Role
IT enhances the capacity to review project
processing and portfolio performance
IT monitors performance against Millennium Devel
opment Goals IT facilitate tracking of activit
ies and investments under development
Initiatives IT systems provide the tools to rep
ort on project performance at each stage
IT supports improved planning, management, and r
eporting on resource management
IT supports documentation on study reports for e
valuation and record lessons learned
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Hot Solutions for DBs

• A comprehensive solution should synchronize with
  business operations.
  
• Some of the latest solutions are
• Lending Solutions with an eye and ear to the
  ground
  
• Innovative Knowledge Management Solution
• A comprehensive IFRS solution
• An effective development outcome tracking system
• Creation of Central Repository -Operational Data
  Store(ODS)
  
• Setting up of an extension of DBs IT Department
  in a cost effective professional
  atmosphere-Offshore Development Centers(ODC)
  

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Source-IFC Capital Budget 2008
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e-Loan System
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Integrated Loan Administration Platform
Loan Administration Database
Client Connection
Loan WEB, Loan Tracking System,
Loan Administration System LAS
Loan Data Warehouse
Loan Database
Other Systems
Loan Kiosk
LAS WEB, LTS,
Loan System
Financial Database
Controllers Data Warehouse
Loan Database
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Knowledge Management(KM)
Latest Facts ADB? A KM-framework was created in
2002.In June 2004 IT strategy was implemented.
AFDB?The Banks knowledge management capabilities
have been upgraded through the introduction of an
Integrated Knowledge Management System via intra
net and internet sites.
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Source-Knowledge Management for Development
Journal, Vol 1, No 2 (2005) and AfDB Annual
Report 2005
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ODS Overview

• ODS is a central repository for corporate-wide
  data sharing
  
• Data from transaction systems is loaded in the
  ODS
  
• Stores historic data from transaction systems
• Provides view for other systems for their central
  reference
  
• ODS-design establish an efficient mechanism to
  store and retrieve valuable business
  information.
  

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Advantage ODC

• Infrastructure, Security as per clients Office
  Standards
  
• Savings in capital expenditure
• Retention of Knowledge - Business and Processes
• Accountability for Productivity and Quality of
  Deliverables
  
• Resources 100 dedicated to Program at a blended
  rate
  
• ODC operating in a different time zone speed up
  development time
  
• Flexible Pricing model (TM, Fixed Price,
  Hybrid)
  

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Takeaways

• Information on how IT mitigate DBs business
  challenges
  
• The universal high level IT roadmap
• Information on comprehensive IT Strategy
• Sharing of IT experience in developing solutions
  for Development Banks

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