Information Technology Trend

in
Development Banks

Alberto Rosati Latin America Banking Business Development

alberto_rosati@satyam.com
Prelude

The dramatic events ushering in the new

centuryfrom globalization and a final, major
wave of consolidation to regulatory changes and
technology breakthroughsare compelling
development banks[DB] to turn their focus toward
efficiency and country relationship development.*

*Goliath Industry and Market Reports on Bank Systems and Technology

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Is real IT transformation likely to take place?

Three converging forces appear to make it

unavoidable:

DBs spreading across geographies

Financial transactions are commoditized
Regulatory demands are unprecedented.

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Drivers to IT transformation

The next 10 years will be defined by:

Accelerated expansion
Process efficiency
Greater Country sophistication
More intense regulatory demands
Opening up markets in existing and new member countries

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Challenges Faced By Development Banks

DBs require real time system control on their operations

DBs are unable to effectively track the development results

The credibility of the financial reports becomes questionable

Systematic Development Bank-wide management of data

Risk measurement and management is becoming increasingly

complex

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 Advantage IT
An effective IT Solution provide:

Operational effectiveness, internal efficiency

Collaborative tools to help create, cultivate, and disseminate

knowledge.

Accessibility to data, information, and knowledge.

The ability to easily search across and retrieve relevant information

A project management system based on complete project lifecycle

A resource management system which improve linkages

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 Plan for 21st Century IT Transformation
Focus on improving the internal efficiency and Country centricity

Go horizontal
Make the transition from banking operations in silos to an integrated
organization.

Balance objectives in IT strategy

Balance the use of technology resources to support revenue growth

Focus on governance
IT to align with business strategy to improve returns on IT spending.
Strategies addressing enterprise architecture, process automation and
member analytics

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 Need of the Hour
The information systems and technology infrastructure must be
improved to:

support the results-based agenda and

Align the systems with the new organizational structure.

And to support DBs three major information systems initiatives:

Knowledge management
Project processing and portfolio management
Program resource management
Latest Facts:
World Bank IT strategy took the approach of building up integrated systems for sharing of information with
member countries
IFC has provided the user interfaces to access existing information, while gradually replacing the older mainframe
systems
IDB has developed facilities using portal technology to provide access to many disparate systems .
IADB is planning for implementation of Integrated IT Roadmap to synchronizes their ORG structure
ADBs initial portal applications are designed to provide access to knowledge management applications

Source- ADBs information Technology Strategy and Capital Expenditure Requirements: 20042009 and
IADB website 8
 Identify the IT Role
IT enhances the capacity to review project processing and portfolio performance

IT monitors performance against Millennium Development Goals

IT facilitate tracking of activities and investments under development Initiatives

IT systems provide the tools to report on project performance at each stage

IT supports improved planning, management, and reporting on resource management

IT supports documentation on study reports for evaluation and record lessons learned

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 Hot Solutions for DBs
A comprehensive solution should synchronize with business operations.
Some of the latest solutions are:

Lending Solutions with an eye and ear to the ground

Innovative Knowledge Management Solution

A comprehensive IFRS solution

An effective development outcome tracking system

Creation of Central Repository -Operational Data Store(ODS)

Setting up of an extension of DBs IT Department in a cost effective

professional atmosphere-Offshore Development Centers(ODC)
Source-IFC Capital Budget 2008 10
e-Loan System 11

Integrated Loan Administration Platform

Loan Administration Database

Loan
Loan WEB, Loan Tracking
Client Connection Administration System
System,
[LAS]
Loan Data
Loan Database
Warehouse

Loan
Other Systems LAS WEB, LTS, Loan System
Kiosk

Financial Controllers
Loan Database
Database Data Warehouse
 Knowledge Management(KM)

Identify
Knowledge
Discovery Tools
Data Mining Diffuse/Use
Test Decision Support
Retrieval/Mining Groupware
Collect/Codify Knowledge
Video
Information Database Conferencing
Feeds Intelligent Document
Agents Depositories
(Data Warehouse)
Create
Thinking Aids
Conceptual
Mapping

Infrastructure: Networks-Internet ; Intranet

Latest Facts:
ADB A KM-framework was created in 2002.In June 2004 IT strategy was implemented.
AFDBThe Banks knowledge management capabilities have been upgraded through the introduction of an Integrated
Knowledge Management System via intranet and internet sites.

Source-Knowledge Management for Development Journal, Vol 1, No 2 (2005) and AfDB Annual Report 2005 12
 ODS Overview

ODS is a central repository for corporate-wide data sharing

Data from transaction systems is loaded in the ODS

Stores historic data from transaction systems

Provides view for other systems for their central reference

ODS-design establish an efficient mechanism to store and retrieve

valuable business information.

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 Advantage ODC

Infrastructure, Security as per clients Office Standards

Savings in capital expenditure

Retention of Knowledge - Business and Processes

Accountability for Productivity and Quality of Deliverables

Resources 100% dedicated to Program at a blended rate

ODC operating in a different time zone speed up development

time

Flexible Pricing model (T&M, Fixed Price, Hybrid)

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Takeaways
Information on how IT mitigate DBs business challenges

The universal high level IT roadmap

Information on comprehensive IT Strategy

Sharing of IT experience in developing solutions for

Development Banks

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Alberto Rosati Latin America Banking Business Development
alberto_rosati@satyam.com
www.satyam.com
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