Business

Saturday September 5, 2009

Banks renewing focus on IT to boost resilience

By DALJIT DHESI


PETALING JAYA: With the economic recovery in sight, banks are renewing their focus on information technology (IT) to enable them to be more resilient in facing future challenges.

Some are upgrading their existing systems while others are replacing legacy systems and enhancing core systems to ensure competitiveness in the market.

SunGard Asia Pacific regional account director Gwen Yong said: “The current economic climate means a renewed focus by banks on how to retain existing customers.

“IT plays an important role here as banks are turning to systems to help them understand their customers’ total banking relationships and expand their channel offering. An example is Internet banking and the requirement to include more services such as online treasury products for large corporate customers.’’

In an email, she said banks were also looking at where they could centralise their systems for easier maintenance.

By maintaining central systems and leveraging on the same resources across the group, Yong said banks could improve operational efficiency and accuracy, streamline processes and ultimately improve customer service.

“Examples of where centralisation is taking place are investment banking, Islamic banking and overseas branches,’’ she noted.

SunGard is one of the world’s leading software and IT services companies.

HSBC Bank Malaysia Bhd chief information officer Chu Hong Keong said the bank invested over RM100mil a year in IT and would increase its use strategically.

Other than the key technology infrastructure that needed to be maintained or upgraded, he said IT spend priority would focus on business transformation, efficiency gains, serving customers and business partners of the bank’s customers.

United Overseas Bank (M) Bhd senior vice-president and head of technology and operations Lum Chee Onn said the UOB group viewed IT as an important component of its corporate strategies.

With better IT systems and infrastructure, the bank could achieve higher operational efficiencies and build better capacity for future growth, he added.

In terms of IT systems upgrade, Lum said this included ensuring its systems were Basel II compliant, enhancement in customer relationship management, trade system and workflow/imaging systems.

“For example, we made investments in customer relationship management to integrate and provide seamless customer service across all channels and product offerings.

“For Basel II adoption and readiness, the bank has implemented the Foundation Internal Ratings Based approach for credit risk, and the Standardised approach for market and operational risks,’’ he noted.

OCBC Bank (M) Bhd head of information technology Yeo Yew Seng said over the past five years alone, it had invested more than RM200mil in IT and would continue to focus on this area.

According to Yeo, the bank would upgrade its systems to keep abreast with the industry as properly-deployed IT systems can support business as well as improve the time to market for products when the economy improves.

“OCBC Bank has always invested heavily in IT and we will continue to do so. We will invest in key areas, including our risk management capability and upgrade some of our key components,’’ he noted.

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