From the CEO's Desk
Small is big today. Small and mid-size banks have big ambitions. One thing that differentiates a successful bank from the rest is its ability to use technology as a competitive edge.
The bigger challenge today, is keeping up with the rapidly changing technology and that’s where the opportunity lies. Banks must constantly look for new challenges to market, while improving the quality of their products and services. For these reasons, they are in a dire need to adopt rapidly evolving technologies that could redefine their business. The question remains, ‘How can small and mid-size banks adopt these?’
The Dilemma
Today, the IT needs of banks are far from met. IT constitutes hardware, networking, software and services - all working together. Typically, small banks buy systems from small-time local vendors. The requirement starts with hardware, which is over time, supported by network and connectivity services. As business grows, the banks need richer software, including collaboration tools and business applications. Yet, all this does not work if the banks are not advised and guided about how to adopt these.
There are other challenges faced by banks as well. The foremost is the complexity of technology and its quick obsolescence. Software gets more complex, accompanied by demand for more sophisticated hardware compatible with it. Reliability of networks is low unless one spends on sophisticated connectivity, which is seldom affordable. Furthermore, there is a lack of reliable service providers who understand the unique needs of small and mid-size banks, thereby deterring banks from embracing technology.
Compelling Need
Having said this, the business needs of small and mid-size banks are no less complex than large banks. Processes in these banks are loose and evolve more rapidly. By nature, these banks are non-standard. Nevertheless, this uniqueness is important in their ability to think big and grow faster. This calls for a new service model, where IT can be rendered as a utility service that is available on tap! Sounds challenging, but no less compelling.
Technology has come of age with the advent of modern hardware and software solutions that can completely revolutionise the way banks operate. However, it is not about technology alone. It is about how it can be leveraged with the right business model. C-Edge has introduced an outsourced service model called, ‘Application Service Provider’ (ASP). C-Edge's ASP as a service is a business model that delivers on-demand banking capability with an integrated suite of hardware, network and software solutions, along with banking, technical and consulting services in a ‘pay-as-you-use’ paradigm through a shared platform.
Increased use of hosted infrastructure model enables smaller & mid-size banks to compete on an equal footing with bigger banks which have already made substantial investments in technology. Banks can choose such a hosted infrastructure model as it provides them with state-of-the-art software solutions that can be implemented while avoiding the large infrastructure costs and reducing the recurring administrative and technical resources as in a traditional, on-premises application.
Banks also need to focus on compliance. Failure to implement a proper solution will not only endanger profitability of banks but also put them at odds with regulatory compliance.
Cutting edge technologies empower banks for growth. Banks which outsource their IT infrastructure can utilize this technology resource that brings in additional top-line revenues while improving bottom-line results. Using technology for leadership in cost effectiveness, compliance, service quality and business growth is critical for banks. In today’s uncertain economic environment, certainty from the service providers is equally important. C-Edge, with its rich heritage of experience in the technology and banking sectors inherited from its parent companies - Tata Consultancy Services and State Bank of India - can ensure such certainty for you.
In the end, my sincere thanks to you for taking the time to visit our website. I invite you to explore this website and get to know more about us.
Yours Faithfully,
K. Krishna Kumar