FINANCIAL INSTITUTIONS AND MARKETS CIA 2

- Anusha Raj (19SJCCB029)

Q1: identify the technical challenges faced by the capgemini while designing the software for
orange bank.
A: Capgemini is a very well-known multinational information technology services and
consulting company in the world. However, assisting a company, a service provider company
least of all, is no easy task and the company must be equipped with an ocean of resources
including human resources, technical resources, monetary resources etc. and despite it all,
there may be many challenges.
Some of the technical challenges faced by capgemini may include:
1. Consumer expectation: in the new modern world, everyone expects things to be easy
and handed to them. This expectation also extends to banking customers who expect
all information to be at their hand in a time period of seconds. It is hard to ensure web
and app services that provide safety and information to the customers while being
easy to use.
This is a challenge since majority of the banks are unable to deliver the quality of
service that these customers expect which can cause a lot of pressure to capgemini.

2. Cyber security issues: like mentioned in point 1, it can be excruciatingly hard for
capgemini to build a model that ensures maximum safety for the clients of orange
bank and at the same time ensure that the economic objectives of the bank are met.
Cyber safety is a very costly and touchy subject in the field of banking and finance as
it can make or break the bank in its initial years. According to a study, about 85% of
the tested web apps have flaws and a lack of secure data storage to ineffective
cryptography that would permit cyber attacks against users.
Many banks choose to forgo a chunk of their profits in order to invest that in
maintenance and development of security of their clients’ accounts and both the
consulting and technical incharge of the project, capgemini will have a hard time
prioritizing the business activities and the objectives.

3. Dynamic environment: banking cannot survive in the modern world if it does not
adapt to the dynamic changing environment. It has to adapt the latest technologies
available in the market as the competition increases day by day. On the other hand,
the fastest changes in the technology in the banking sector create ease for customers
but it also creates a huge impact economically and technologically to the company
and their partners, which in this case study are the orange bank and capgemini.

4. Regulation: Although in today’s era of the modern banking world many banks have
become more conscious about the risk and also banks are adapting well to increasingly
stringent requirements, regulation continues to be a concern for banks who must invest
a sizable amount of time, money, and effort into meeting compliance standards. These
regulatory challenges are continued to increase by the central bank, so today the need
for traditional banks is to constantly evaluate and improve their operations to meet up
 the regulatory requirements and keep up with the fast pace of change in the banking
and financial industry.

5. Efficiency maximization: In order to remain competitive in an increasingly saturated

market – especially with the more widespread adoption of virtual banking – banking
firms have had to find a way to deliver the best possible user experience to their
customers. Internally, the challenge to maximize efficiency and keep costs as low as
possible while also maintaining maximum security levels has also increased.
Thus, while designing the software for orange bank, capgemini must ensure that the
software increases the efficiency of the bank and also dramatically reduces the
occurrence of errors

Q2: Explain the factors to be considered while designing the software from customer’s and
employee’s point of view
A2: Factors to be considered while designing the software from customer’s point of view
are:
1. Security: Customers fear that their account information might be placed in the wrong
hands and thus have a constant need for validation of security and safety of their
accounts. Thus, the bank must ensure that it is inculcating a software that provides
safety assurance to its customers.

2. Demand: Internet banking has made the lives of individuals hassle free and thus the
demand for it has been increasing rapidly. Banks must thus make sure that the
software that is being designed has the capability to take over the demand by the
customers and won’t cause any problems to them while the software is being used by
thousands of users simultaneously.

3. Compliance: there are numerus banking rules that must be followed by the banks and
the software developed and used by banks must adhere to these as not doing so will
cause chaos and confusion amongst the customers.

4. Budget: developing and maintaining a software for a huge banking institution is a

very costly affair and any cost incurred by the firm will thus be a cost incurred by the
customer and hence, one very important factor that banks must ensure is that the
project is properly budgeted and that the budget is complied with. This will in turn
make sure that the customers don’t overpay for the services they receive and are
satisfied.

5. Ease in use: many clients and customers are not technologically sound and thus, the
bank should ensure the software is easy to use by all people including laymen. If the
technology is hard to use, many customers will wish to switch the technology to a
relatively easier one and because of the lack of options they will inherently wish to
change the bank as well.
Employee’s point of view:
1. Cost of the software: every project must include a set budget which has to be
complied with and if the costs incurred exceed that of the budget set by the company,
the employees will be disheartened as it means that they will have lesser revenues for
compensation. Thus, while developing the software, the company must make sure that
sure that they reduce costs as much as possible.

2. Performance: constant need and attention of the software will cause disruption in the
work and performance of the software. This can be a huge hassle for the employees as
it can mean delay in projects that in the flow and also because the software required
extra attention from the employees.

3. Efficiency: if the software requires constant support of human resources, it is

considered to be inefficient. If the software is inefficient, it will cause a lot of errors
that have to be rectified by the employees which in turn take up a lot of effort and
time of the employees and thus, this must also be considered by the company while
designing the software.

4. Complexity: end of the day, it is the employees who have to deal with the software
and even the clients who might be disheartened by the software and hence, if it is hard
to use or is highly complex, it will cause many problems to the employees and by
extension, the company as well. Thus, the software has to be designed in such a way
that it is easy to use and won’t cause any performance issues.

References:
https://www.arttha.com/banks/
https://www.arttha.com/five-factors-to-consider-while-selecting-right-fintech-platform-for-
your-business/
https://cybercraftinc.com/blog/the-first-7-steps-you-must-take-for-banking-software-
development
https://computools.com/top-4-challenges-facing-banks-in-2019/
https://medium.com/@mabdulbasit01/today-challenges-of-modern-banking-world-
597ec163d13d