Industry
Banking
Banking Services Transformation: Unlocking Exponential Value
Solution
TCS BaNCS™
TCS BaNCS™: Enabling Transformation in Banks and Financial Institutions
Highlights
- George K. John (Bobby), Executive Director, ESAF Small Finance Bank explains their quick deployment of TCS BaNCS for Treasury solution and its impact on small finance sector in the country.
- TCS BaNCS for Treasury has enabled the ESAF Small Finance Bank to meet the stringent deadline for regulatory compliance in addition to expanding its customer base and Treasury business portfolio.
- The solution’s modular architecture allows the Bank to plug in desired components at the right stage of the product roadmap, in the shortest possible time.
On this article
Overview
ESAF Small Finance Bank Limited started operations in India in 2017 and was established with a vision to become a leading social bank. It aims to offer equal opportunities to society through financial inclusion, financing of livelihood ventures, and supporting MSME enterprises. The Bank offers various products and services to all sections of society and its mission is to provide responsive banking services through customer-centric products, high quality service, and an innovative approach.
The Bank embarked on transforming its treasury operations in November 2023 with the objectives of meeting evolving customer expectations, enhancing operational efficiency, strengthening security and ensuring regulatory compliance. The need to change was sparked by a combination of factors, including the growing demand for digital banking solutions, the necessity to modernize legacy systems, to stay competitive in a rapidly evolving market, and the mandate to comply with the new regulatory requirements.
(The Reserve Bank of India (RBI), India’s Central Bank, issued a circular in September for banks and primary dealers to adhere to new central bank accounting and portfolio classifications before 31st March 2024.)
Why TCS BaNCS
“We selected TCS BaNCS for Treasury, thanks to its near 100% fitment in product functionality and proven track record in treasury management at leading public sector and private sector banks in India. We knew that we were asking for a transformation that would need to take place in a span of three months,” says George K. John (Bobby), Executive Director, ESAF Small Finance Bank.
Before, many banks in India were working towards this deadline, however, small finance banks like ours had to provide a written commitment to the Central Bank, assuring compliance with the aforesaid deadline,” he added.
The Implementation
“TCS BaNCS for Treasury was delivered within three months of initiation of the project in full compliance with the related accounting changes as mandated by the Central Bank. This achievement of going live in 12 weeks is a result of excellent team work between the two organizations, reflecting one of the quickest and smoothest implementations.”
TCS BaNCS for Treasury has enabled ESAF Small Finance Bank to meet the stringent deadline for regulatory compliance in addition to expanding its customer base and Treasury business portfolio. The solution’s modular architecture allows the Bank to plug in desired components at the right stage of the product roadmap, in the shortest possible time. The scalable solution has helped them meet increased transaction volumes across myriad asset classes.
Indeed, this achievement stands as a testament to the remarkable teamwork, dedication, and shared vision demonstrated by everyone involved.
The solution deployed includes the Money Markets, Investments & Forex (the new business area for the Bank).
The previous system required manual intervention from their technology provider, causing many dependencies and risks. Local Indian capital market-related functionality was a key requirement from the Bank, in addition to the need to have a partner who was skilled in treasury technology and who could guide them in the overall approach.
The solution had to seamlessly interface with the Bank’s General Ledger and core banking system, resulting in the need for the TCS team to work with the staff at the Bank and guide them through the process. For instance, when they found some challenges related to interfacing with market data applications, the TCS team recommended an alternative model while the FIX-based integration issues were being resolved in parallel.”
Benefits
The result is that the Bank now has ready interfaces to all products and platforms in the Indian market (treasury) and to its core banking systems, derived from the vendor agnostic principles on which the treasury product has been designed. It has benefitted from:
- Seamless integration with various external/internal systems in the Bank’s IT Landscape resulting in improved operational efficiency and reduced risk and cost of operations.
- Fastest implementation, timed to meet the regulatory norms
- Real-time view of the positions, cashflows, limits and risk parameters
- Easy expansion of the business solution portfolio - Expansion of the current Treasury business into areas such as derivatives and advanced foreign exchange
- Online management dashboards for treasury dealers – single view of their positions, limits with multiple levels of drill down, as part of the next phase
The Partnership
“Key success factors in our transformation program included a clear plan, strong project management, stakeholder engagement, robust testing and quality assurance, and ongoing support and optimization, which led to accolades in operational excellence, and positive industry feedback.” Says, George K. John (Bobby).
“Our partnership with TCS has been characterized by exceptional quality and depth, demonstrated through their proactive collaboration during the implementation of the Treasury suite. For example, TCS provided dedicated teams who worked closely with our internal staff, ensuring seamless integration and customization of the system to meet our unique needs. Additionally, their ongoing support has been instrumental in addressing challenges quickly and optimizing our operations postimplementation. The partnership extends beyond technical aspects, as TCS has consistently contributed strategic insights that have helped us navigate regulatory changes and stay ahead of market trends,” he added.
The next phase of the Bank’s journey will cover enhancements to the digital & technology platforms, in the form of advanced analytics and AI for better decision-making, and expansion of service offerings to meet evolving customer needs. The Bank’s vision is to become a leader in digital banking innovation, providing exceptional customer experiences through cutting-edge technology while maintaining operational excellence and regulatory compliance.