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Winner
BIS at CBOP
BIS at Centurion Bank of Punjab will help the bank segment
and retain customers, cross-sell and up-sell as well as manage campaigns
 Centurion
Bank of Punjab (CBOP) won the SAS Enterprise Intelligence Platform of the Year
Award at Technology Senate 2006. The bank is in the process of implementing
a total solution of enterprise data warehouse, data quality, analytics, business
intelligence and customer intelligence. This solution is based on SAS 9.x and
Banking Intelligence Solution (BIS).
By implementing this solution CBOP will gain access to insights and analytics
about its customers enabling efficient service.
Three million customers to satisfy
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The bank needs to foster long-term
customer relationships that benefit both the customer and the bank itself.
To this end we deployed an enterprise solution and not a BI point tool
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Being a private bank, with a presence across pan India in 160 locations, 249
branches and approximately three million customers the bank needed BI to achieve
its business goals.
Sanjay Narkar, CTO of CBOP says, “While offering various customer services
and over 50 banking and financial products to millions of customers all in the
midst of cut throat competition. The bank needs to foster long-term customer
relationships that benefit both the customer and the bank itself. To this end
we deployed an enterprise solution and not a BI point tool. The solution integrates
with all our 14 main banking business solutions.”
According to him the driving factors of the BI industry includes the business
focus change from product- to customer-centric, new business dynamics management,
new product and services innovation, customer service and internal process improvement,
better cost management and to increase the market share with an accurate and
factual database of customers and trend analysis of past transactions.
| Bank |
Centurion Bank of Punjab |
| Solution |
SAS 9.x and Banking Intelligence Solution |
| Year of implementation |
2006-07 |
| Aim of the implementation |
The bank aims to serve all the banking and financial
needs of its customers through multiple delivery channels. It wants to develop
a long-term relationship with the customers. |
| Major benefits |
The solution is used in the bank to support decision
making, planning, monitoring, customer relationship management, budgeting
and planning, marketing, predictive analysis, profitability analysis, new
customer acquisition, campaign management, customer transaction analysis,
performance management and enterprise MIS requirement. |
| Number of users |
1,000 plus users |
| Sanjay Narkar, CTO of CBOP is a post-graduate
in computer applications and a certified DBA. He has over 20 years in IT
management in the banking and finance vertical across mutual funds, banking,
broking, Non Banking Financial Companies (NBFC) and capital markets.
He was proud to receive
the SAS Enterprise Intelligence Platform of the Year Award at the Technology
Senate. He says that this award recognise the efforts taken by the bank’s
IT team.
According to him, the CIO’s
role is to understand his customers’ needs and try to fulfil them.
An IT head has to be good at solving problems.
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B is for backbone
The BIS solution is a ‘backbone’ of sorts insofar as it supports all
decisions, planning, monitoring, customer relationship management, budgeting
and planning, marketing, predictive analysis, profitability analysis, customer
acquisition, campaign management, customer transaction analysis, performance
management and enterprise MIS.
Vivek Vig, Country Head - Retail Bank, Centurion Bank of Punjab says, “We
focus on delivering an enriched customer experience and customized banking services.
By implementing SAS Banking Intelligence Solutions, CBOP can gain access to
customer insight and analytics thus enabling efficient service to the customer.”
He adds, “Identifying potentially profitable products across the customer
base and strengthening our customer acquisition strategies, would be an added
advantage.”
The benefits of SAS Enterprise Intelligence Platform to CBOP include:
- Single view of customers: The SAS solution will
give the bank a single view of customers to enable visibility of a customer’s
consolidated relationship with the bank.
- Performance analysis and reporting: With this solution,
the bank can translate business strategy into measurable actions by monitoring
progress towards a strategic objective.
- Do more cross-selling to the existing customer base:
The bank can categorize it’s its existing customers and frame targeted
strategies and campaigns. This will enable the bank to identify and execute
cross or up selling opportunities, channel preferences based on customer profitability
and risk potential.
- Maximize ROI on marketing campaigns: With the help
of marketing automation, the bank will be able to implement and measure multi-channel,
multifunction campaigns for customer acquisition and retention objectives.
- Increase profitability: Availability of accurate
and consolidated customer data and information will enable the bank to strengthen
the cross-sell scenario leading to multiple products and services subscription.
| Centurion Bank of Punjab (CBOP) was formed
by the merger of Centurion Bank and Bank of Punjab, both of which had retail
franchises in their respective markets.
CBOP operates a nationwide
franchise of 249 branches and 402 ATMs across 123 locations, and has approvals
from the RBI to open a further 30 branches before the end of the current
fiscal. It has a customer base of approximately 3 million and 5,000 plus
employees. The bank offers products and services of retail branch banking,
bank assurance, wealth management services and corporate banking through
multiple channels namely bank branches, Internet banking, ATMs and call
centres.
In addition to being listed
on the major Indian stock exchanges, the bank’s shares are also listed
on the Luxembourg Stock Exchange. It has recently proposed a merger with
Kochi-based Lord Krishna Bank.
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| Core Banking System |
Finacle 7.0.11 from Infosysthe enterprise |
| Retail Assets (i.e. Loans) |
FinOne from Nucleus |
| Cash Management Solution |
Cash In from Cash Tec. |
| Net Banking and e-Banking |
Finacle IBS from Infosys |
| Operational CRM |
FinCRM from Infosys |
| Wealth Management |
WMS from Fineng |
| SFA |
Sales Force Automation from NextStep
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| Treasury Solution |
Ideal & Mercury (front office + mid-office
+ back-office) from Credence |
| Anti Money Laundering |
AML solution from SAS |
| Mail and work-flow |
Lotus Notes |
| HRMS |
HR Management System from Infotrack |
S is for ‘separate’
In banking there is no single solution which will support all the business conducted
by a bank and therefore the existence of multiple business solutions is ground
reality. The BI solution in this case needed to sit outside the core banking
solution, as it required consolidated data from different source systems as
its input.
“Adding the tools into an existing core solution will result in the tools
having limitations, for core systems are not expected to work for lengthy queries
or analysis. It will affect the performance of the application and also getting
the BI requirements done out of core solution never satisfies the BI needs of
analytics users,” says Narkar.
Therefore in his view, it is always a better architecture to have a BI solution
separate from the core solutions in terms of application management, maintenance
and on-going development.
CBOP took the decision to deploy an enterprise solution to
address the above requirements and did not consider a point BI tool. The criteria
included the fact that it had to be a proven solution with an open architecture
and a clear roadmap from a credible solution provider with references. The provider
had to offer a site visit to installations,successfully complete a proof of
concept with the bank’s existing core solutions providing basic BI requirements.
| Breadth |
Integrating functions and technologies
from across the enterprise |
| Depth |
Reaches all in a way that is relevant
to the end-users |
| Completeness |
A comprehensive, end-to-end platform |
| Advanced analytics |
Provides validated and verified facts |
| Intelligent storage |
Meets the storage needs of BI applications |
SAS’ definition of BI
In SAS’ view, a platform doesn’t offer true business intelligence
unless it satisfies the following conditions:
Breadth Integrating functions and technologies from across the enterprise Depth
Reaches all in a way that is relevant to the end-users Completeness A comprehensive,
end-to-end platform Advanced analytics Provides validated and verified facts
Intelligent storage Meets the storage needs of BI applications.
Sudipta Sen, CEO & MD, SAS India says, “It is important for an organisation
to consider and evaluate BI solutions based on the above attributes for achieving
the desired business objectives.”
He further adds, “We are proud to be associated with
CBOP and help them support their business objectives by providing the required
business and customer intelligence to accelerate their growth and strengthen
customer relationships and with the help of these solutions the bank will get
a unified view of its customers across multiple products and channels thus increasing
its customer intimacy and effectiveness.”
Not just BI
The bank has its primary data centre in Mumbai on a MPLS network with primary
link and back-up to the secondary data centre at Gurgaon.
Sanjay Narkar, CTO of Centurion Bank of Punjab adds, “There are many risks
such as the non-availability of business applications due to the IT Infrastructure
failing or software failing. Depending upon the business criticality of the
location or the underlying hardware, operating system and database; the appropriate
redundancy, failover and recovery mechanism is in place.”
Training, migration, testing...
Training users, data migration, user acceptance testing,
integrated testing, stress testing, change management, continuation of customer
service, regulatory compliance (RBI and SEBI), business growth pressure, merger
of the banks, IT partner management, projects management, IT man-power resource
management and cross system interface management all had to be done.
Today the systems help power efficient business support management, exceed business
targets and manage budgets, centrally manage IT infrastructure, adopt open platform
solutions, control and comply, facilitate enterprise communication and collaboration
and offer better customer service.
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