Banking in India

Business Case of providing IT Services

GOPALKRISHNAN, MPE 15 (P013)

JAYATEETH MONAKSHI, MPE 15 (P015)
KALPANA SHARMA, MPE 15 (P017)
LAL BAHADUR, MPE 15 (P020)
MANISH VISHNOI, MPE 15 (P021)

POTENTIAL CUSTOMERS
- Top 10 Banks in India (Major PSU/ PVT Banks / NBFIs)
- Newly licensed 11 payment banks and another 10 small finance banks

BANKING SECTORS ESTIMATED ANNUAL IT SPEND &

STRATEGIC DIRECTION
- Indian Banking and Securities Firms spend 499 Billion Rupees on IT in 2015- Gartner
Report, Nov2015
- 9.8% Growth over 2014
- Advertising spending on digital media by Banks/ FIs industry touches $7 billion
- 14.5% gain over 2014- eMarketer, The Financial Brand
- Major Spending in areas of- internal IT (largely personnel), hardware, software, IT
services and
telecommunications
- Why so much focus on IT?
About 69% of SBIs transactions are done via the banks alternate Source: Mint
-- Strengthen their operational infrastructure to support RBI regulatory needs
-- Build Brand Awareness, reach and recall by customers
-- Sustain increasing demands from the digital channels
- Cutting OPEX & CAPEX
-- Shifting budgets from traditional/ offline channels towards online and
mobile media

IT SERVICES SPEND
- In areas of upgrading, and increasing, the technology infrastructure that facilitates
payments
- New entrants will further grow the IT Services market by their own technology
investments

Lal

Calculate Values

TAM- SAM- SOM

For TAM, look at customers IT budget

Materiality: below this level I am not OK,
If account is big, Materiality is hige

Source- Economic times

Jayat

IBM Value Proposition to Banks

Core
Banking
Solutions

Online,
Mobile
Banking

Security
and User
friendly

Lal

TECHNOLOGY TRENDS LIKELY TO IMPACT

THEIR IT SERVIES SPEND
- Digital Advertisement Solutions
-Digital video
icicibankpay through Twitter

-value of the impact (likely increase /

decrease in IT Services spend)
ALSO ADD

Kalpa

IBM differentiation against competitors

& Opportunities

Gobi