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Saturday, April 14, 2007

Oracle eyes urban, district co-op banks - Pai

Having cornered a sizeable portion of the scheduled commercial banking space, Oracle India has set its sights on urban co-operative banks and district central co-operative banks.

In an attempt to capture a large chunk of the segment, Oracle India is looking at offering a ‘hosted model’ and is in talks with existing partners. Oracle’s partners in the banking space include Tata Consultancy Services, Wipro Technologies, Infosys and i-Flex. It has also roped in players like Zenith Infotech, EBZ Online and Sonata for smaller banks.

Incidentally, Oracle will also offer traditional models to large co-operative bank customers.
“We are looking at various models along with the hosted model route to offer our services. The hosted model will involve offering various banking as well as banking-related services for a definite period.

The services offered by Oracle under this route will run on servers offered by Oracle’s partners and the co-operative banks will use them. To offer this system we will need to create a platform which may be used for a number of banks to join and avail its services,” said Oracle India senior director (service industries) Suraj Pai.

“Demand for IT solutions in the co-operative banking space is slated to grow manifold and we have entered into talks with large forward-looking co-operative banks to develop a model that can be showcased to other similar banks,” he said.

“According to the Vaidyanathan Committee report, the Central government has earmarked a Rs 15,000 crore special package for a co-operative banking system. According to a research conducted among 80 co-operative banks in India, a part of the financial incentives given to them by the Centre will be used in adopting technology to meet the challenges of increased competition as well as to comply with the latest banking and RBI regulations guidelines. There are about 2,000 co-operative banks,” said Mr Pai.

Co-operative banks in India are facing several challenges that can be addressed by robust information systems. Due to increased competition, and changes in banking regulations and RBI rules, co-operative banks now need to ensure capital adequacy, comply with exposure norms, control non-performing assets, adopt efficient risk management and introduce good corporate governance.

“Information technology can help these banks meet these challenges,” he said. “On the services side, these banks will have to start offering internet banking, mobile banking and other services like ATMs to retain their existing customers. For this they will have to put in place the required IT infrastructure,” Mr Pai said.

1 comment:

IDIL Bom said...

Valuable for me.. Is there any further reading you would recommend on this?

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