Doing this analysis, ICICI Bank decided to position itself as a technology savvy customer friendly bank. Enterprise Resource Planning application software is appropriate for organizations in all economic sectors including banking industry. The conclusion is, ERP is sure a good option for the company, but however the cost is not really cheap, but ERP is a helpful system and already used by major companies which more companies should also adopt the ERP system. Study for free with our range of university lectures! Bank of America picked Oracle Cloud Banking for the ERP and Financial application for its international general ledger and the broker dealer system. The firm i.e., ICICI Bank in the current scenario; offers an enormous wide range of banking products and various financial services to a large number of corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries in the areas of investment banking, venture capital and insurance sectors. Therefore, managing with the technology change was a hurdle for the bank. CBS addresses various strategic and key technological processes taking place in a bank. Enterprise Resource Planning Implementation Activities 12 2.5. ERP Implementation : The 12 Step Process 1. It … Since, there were various applications involved; the level of vulnerabilities needed to be checked and minimized. These factors govern the way the firm should manage its business. The major advantage with Finacle was that it was a scalable and open system architecture and this made it a successful implementation. ICICI wanted to achieve economies of scale. The 1st step involved is to make this technological change understandable by humans and hence the challenge was in front of ICICI was to ensure proper training to their employees. CRM is a modular, multi lingual application to help bank to have centralized database containing all the customer information want. The most common ERP system used in banking industry and financial sector is SAP, mainly used by top tier banks and usually cost more expensive. There are so many ERP systems used in banking industry and financial sector and mostly serve different purposes. Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. It requires … But with the arrivals of economic trend like liberalization & globalization; Reserve Bank of India (then, apex bank of the nation) had paved the way for private banks to come in. That strategic partnership started in 1994 and that close collaboration in 1997 led to many innovations. The weaknesses are the high initial investment, which not effectively cost; and the difficult system. Select an ERP System. In 1997, ICICI was the first bank to ensure electronic banking. Benefits of CRM in the Banking Sector. Implementation approaches includes; the comprehensive implementation, pilot implementation, phased implementation. Added security makes the banking ERP software an ideal solution. The implementation of any technology cannot be successful right from the beginning as risks are involved. Finacle is an integrated treasury solution covering the entire deal lifecycle for broad range of trading and capital markets products. Before we jump into how ERP will help the banking sector let’s understand what ERP We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. The main problem was that ICICI had poor risk management and they badly needed some framework to help them assess risk. Provides high flexibility for customization and robust security features, Empowers banking transactions on mobile channels like SMS or GPRS, Modular and integrated investment management system for specific purpose. Reference this. So, the only opportunity possible for ICICI bank to grab market share was to target middle class on a larger scale and that too by innovations. This marketing tool helps banks to directly acquire, track and service customers. To manage proper assessment of risk associated with applications, ICICI needed to have the technology which can test applications and correct problems if possible. First it bought out Bank of Madurai and then had a reverse merger with parent firm i.e., ICICI limited. Secondly the database used in the system wasn’t centralized and hence the main task in front of the industry was to have centralized database so that data access becomes simple process. They took Finacle because of its specificity made it suitable for banks, secondly Finacle’s future proof technology, and extensive corporate banking features, scalable architecture, best of breed retail made it a technology worth selecting. State owned banks focussed on only poor people and gave only simple interface without provoding any special features while foreign banks targetted individuals or corporations with high net worth. For cash management software, Moneyman provides the highly efficient ERP for small and medium business, highly recommended for funding. Enterprise Resource Planning (ERP) systems, in order to achieve advantages over their competitors. Most of multinational banks and companies around the world have adopted the ERP systems, and below are the examples. For the financial year ended 31st March 2010; the Net Operable Profit After Tax was found to be 40.238 billion which is approximately US $ 898 million. Information Technology With the ICICI group having many companies under its huge corporate umbrella. It checks faults associated and corrects them. The CRM software is the most important business management tool for the banking industry. He wanted to search for proper vendor to organize the given set of applications so that all the security tests can be covered as soon as possible. ERP solution leverages all the banking processes such as account management, payment processing, and security management. ICICI then finalized Fiancle Core Banking solution because it was segmented for financial institutions only. Enterprise Resource Planning Implementation Strategies 18 ... Bank Tier 28 Table 4.3.1: Activities during ERP System Implementation 29 ... ERP is a relatively new phenomenon within the software industry and its implementation methodologies are still developing. The most common ERP system used in banking industry and financial sector is SAP, mainly used by top tier banks and usually cost more expensive. The other system is Oracle EBS or the Oracle E-business … The main objective of ICICI bank was to have a universal bank which can provide required value to customers with financial solutions. Before the arrival of ICICI bank, the banking sector was under control of several state owned and foreign owned banks. The ERP sure is a good modern day innovation that helped more people to do their jobs easier. However, ERP are more common in banking industry and financial sector. With the Intelligent Enterprise framework, SAP provides integrated applications, intelligent technologies, and a digital platform to enable banks to better serve current customers and reach the underbanked to … Thus, investing in technology helped ICICI get rich dividends. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com. With an array of built-in dashboards and customizable reports, ERP software offers unprecedented visibility into the health and performance of your business. Furthermore, the banking industry’s ERP software focuses on key mechanisms such as monetary operations, protecting client’s confidential information, and connecting various divisions. Define phases of Implementation… To achieve such a financially high value, the bank needed to have a huge network. The application collects, stores, and interprets data all the while keeping the client information intact… Implementation approaches includes; the comprehensive implementation, pilot implementation, phased implementation. There is one of the ways that would be proven beneficial for the banking sector that is implementing an ERP solution. Thus, the use of Finacle has helped ICICI in cutting costs and time and managing automatically various transactions that take place on a day to day basis. Further more, ICICI wanted to have a centralized database to support all applications going on and needed a solution which can boost up its infrastructure in friendly manner. After studying various features offered by different vendors they decided to shortlist 2 vendors – Finacle Core Banking Solution by Infosys and SAP by IBM. Most of its plants & facilities were on the verge of automation and this was mandatory to achieve customer satisfaction and to rival the foreign firms. These factors govern the way the firm should manage its business. Some of the key technological features offered by Infosys Finacle were: Helps Banks to deliver services through a self service channel, Provides banks with the capability to alert end users about updates and new services. This made ICICI establish itself as the leader in the e – commerce segment. All work is written to order. But those applications had several vulnerabilities and their weaknesses needed to be addressed before it gets exploited by the customers and competitors. ERP are now a part of daily lives in business world, no matter what businesses. The banking industry is undergoing a tremendous transformation vis-à-vis technological innovations and changing customer behaviour. The bank has successfully used the Finacle and has managed to successfully deploy the solution in the areas of core banking, consumer driven e-banking (Electronic B 2 C segment), direct banking, corporate e-banking (Electronic B 2 B segment) and Customer Relationship Management. If you need assistance with writing your essay, our professional essay writing service is here to help! The state owned banks had huge network but no or little innovation involved (focus on service) while reverse was the case with foreign banks. *You can also browse our support articles here >. The company’s network is the biggest and it had more than 15 million customers by the current year. ICICI bank had positioned itself as a technology focussed industry. ERP for the banking and financial industry leaves no room for errors and effectively addresses privacy concerns. The bank uses an approach which best suites its business needs and operations, since the banking systems make use of almost all the modules of ERP. There are so many benefits you can get from ERP, however, ERP also have its own weakness. This wide applicability is largely possible as ERP offers considerable flexibility to customize the software by tailoring it to the individual organizational needs. There are so many benefits of ERP; one of the benefits of ERP is more efficient business management. The FinTech startups have revolutionized this … This stuff varies among markets, so, let’s say, ERP for banking industry will include other modules than a system for e-commerce. This helped ICICI in growing its market and having some edge over the competition. As a firm grows, it has certain challenges to face and its profitability totally depends on how it uses various available resources to safeguard itself. Today, most of the transactions take place at the bank center by its various distribution channels and not at the branches. The biggest challenge which Finacle had was to ensure Straight Through Processing (known as STP in corporate segment) of various financial transactions. Define Scope of Implementation and End Objectives 2. The other system is Oracle EBS or the Oracle E-business Suite, created by Oracle, the EBS is more widely used and dominated the market because of the security and process oriented factors. ICICI bank … The bank today had multiple number of rewards and its innovative solutions has conquered the minds of customers and managed to win over their hearts. The main problem in the existing system was risk associated with all the applications and most of the applications at that time; needed to be tested continuously so, the bank required a software to manage the testing of all applications autonomously so that the time is not wasted in manually searching for faults and available recovery solutions. High technology was required and at the same time, it was necessary to have a proper framework to avoid risks associated. For the mobile ready one, EBANQ is the best choice because it’s more user friendly for both admins and the users. Copyright © 2003 - 2020 - UKEssays is a trading name of All Answers Ltd, a company registered in England and Wales. Training were given to employees right from the day when technology was deployed. Let it be any banking industry … It simply handles the complexity of entire banking process with ease. Now, the challenge in front of ICICI bank was to have proper framework so that all the weaknesses are corrected at the lowest possible costs. Pravin Vohra, Group CTO, ICICI bank was tensed by the speed of online transactions and he points out that the applications aren’t centralized enough that makes security testing of applications a highly time consuming task. The other requirements from the software in India were to have open systems approach, future proof excellent technology and best of breed retail etc. Create the Project plan. Fiancle, a leading IT Core Banking Solution has helped ICICI achieving its objectives across the network. Disclaimer: This work has been submitted by a university student. All rights reserved, ERP Implementation In Banking AND FINANCIAL SECTOR. 4. As shown above, ICICI managed to penetrate into various market segments by the enormous features offered by Fiancle. The Industrial Credit and Investment Corporation of India (i.e., simply ICICI bank of India) is India’s 2nd largest bank (first being State Bank of India – SBI) currently with total assets of value more than 3,634 billion which approximately amounts to US $ 81 billion. A highly scalable and flexible technology platform is essential for organizations to manage growth and compete successfully. In order to penetrate into the market, the bank needed to have the necessary technology to make system strong and to ensure smooth flow of information within the system. It is noticed that banking industry has advanced enormously and as yet developing exponentially covering the whole scope of transactions and items under far reaching umbrella. In addition, when every such activity is done by a bank, it is known as Core banking. As banking is currently considered a non-typical area for ERP usage, the authors conducted a survey on anticipated benefits, potential disadvantages and implementation success associated with ERP … The main advantage of using Finacle was that only 25 % routine transaction take place through branches and remaining through various delivery channels. The risks associated with people, process and technology was managed and this made ICICI a profitable firm. ERP implementation support many approaches, it may varies from one organization to another depending on the capabilities and the requirements of the organization. We're here to answer any questions you have about our services. Besides India (where it originated); the bank has subsidiaries in USA, UK, Singapore, Bahrain, Hong Kong etc. Integration of data has helped banks to analyze financial condition, account management and also helped in preparation of … Therefore, it has to look for a method that will encompass the business … Company Registration No: 4964706. Finacle had to integrate with various corporate wide applications like Credit Card, M – banking, mutual funds, brokerage, call center and other applications taking place simultaneously. The bank has used core technology as a strategic differentiator, thus redefining the rules of banking in India and additionally also showing how technology can do some good in transforming a bank’s business. Data management is one of the biggest challenges faced by banks. 3. By end of 2014, a local Brazilian cooperative financial institution Unicred Central Norte implemented the local ERP software  TOTVS for mobile banking due to change of behavior of the people and the banking institution, the ERP integration have benefited the company and provide the more enjoyable experience for both users and the company itself. This is not an example of the work produced by our Essay Writing Service. Free resources to assist you with your university studies! The banking industry can be seen to be growing quite constantly offering more variety of activities and services to the people. So, they went through brochures of various Application developers and studied software requirements. Copyright © BINUS Higher Education. ICICI bank was established when the economic concepts of liberalizations and globalizations just started in India. Do you have a 2:1 degree or higher? Now, some banks use basic systems with slightly … No plagiarism, guaranteed! The major advantage was that Finacle offered so many features at comparative lesser costs compared to other similar technolnogical products. By streamlining business processes into a single system, ERP software yields more consistent data and greater workflow efficiency throughout the organization. In 2000 only 400, 000 transactions while this figure was more than 2 million in 2005 years so, popularity of the bank drastically increased in only 4 years. The best way to avoid competitors and rivalry firms from sidelining you is to continuously upgrade yourself with latest technology and market trends. VAT Registration No: 842417633. Thus, Finacle guaranteed flexibility to achieve proper segmentation. Implementation of ERP in Banking. You can view samples of our professional work here. This wide applicability is largely possible as ERP … Advantage of using ERP solution An ERP Solution … 4th May 2017 In this short review paper, it is attempted to enumerate potential and prospects of ERP … because of its high trust on technology, ICICI Bank is recognized as a leader in the region and has won a large number of awards worldwide for its technology-driven initiatives. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! Banking ERP brings ease to your feet with its key modules and features with all-time availability. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. This, in turn, means more control over your most consequential business information. For that purpose, special officials were employed. 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Questions you have about our services of liberalizations and globalizations just started in 1994 and that collaboration... Data can not be successful right from the beginning, they managed to win in the end was that was...

erp implementation in banking industry

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