Introduction of Innovation Technologies
By Yelena Dmitrieva, Deputy Chairman of the Board of Ukrgasbank
Undoubted preference of the bank in its fighting for the client is the speed and reliability of servicing. These preferences depend on how perfect, flexible and effective the internal procedures of the bank are. Therefore, more and more banks work on the tasks of perfection of internal procedures. An informational technology (IT) is one of the tools, which helps to increase effectiveness of the bank’s work. But the main means is complex reengineering of the processes, aimed at creation of simple, reliable and quick processing of banking products. We decided to talk with Yelena Dmitrieva, Deputy Chairman of the Board of «Ukrgasbank», about the necessity of introduction of innovation techniques in the banks.
Why the necessity to improve internal processes has arisen?
One of the most important problems the banks are concerned with nowadays is the issue directly related with multi channel sale of services. The matter of increase of internal efficiency of the bank has become important, and traditionally the crucial topic for the bankers is the security issues. All these topics are as never before burning now for the Ukrainian banks. It should be mentioned that in all issues the leading role play modern informational technologies — portal, CRM-systems, CIT and Wi-Fi, accounting and analytic system, and so on.
Today those banks have privileges, which have chosen innovations as the priority. We are one of the first on the market, who went in for reengineering, automation and change of business processes. Business processes must provide for maximum facilitation and quick taking decisions. They should be oriented at clients’ needs and convenience. The clients’ needs in services grow, at the same time the banks are not ready yet to provide them at the proper level. For this very purpose we are developing remote client servicing: mobile banking (the project is at the stage of the end of realization), Internet-banking. Besides, we strive for automation of decision making on credits, transfer of credit applications.
Costs for IT is one of the biggest (for western banks the second after costs for man power) lines of the bank’s expenses. What funds shall be used for reengineering?
Reengineering shall be carried out exclusively using our own capital. We speak about considerable investments. But today innovation techniques are strategic priority for us.
Which results are you planning to achieve?
First of all, widening of clients’ base: owing to acceleration of serving, improvement of servicing. Secondly, increase of efficiency: automation will allow to reduce the scope of «hand work», decrease the quantity of additional control points. Remote client servicing shall decrease the needs in additional bank’s points of sale: therefore, if the same client base were served in the branches, this would require keeping of additional personnel, purchase of additional computers, servers and other techniques.
Will the complex reengineering of bank processes influence forming of banking products?
We will fully change the process of retail crediting and the process of decision making on retail credits. This shall also applied to product line for small and medium business. Now we form this new product line, which will help the bank to take position as a bank for small and medium enterprises, helping to develop business climate of Ukraine. Most popular products for private entrepreneurs shall be quick credits for business expansion. We are going to reduce requirements to security and increase maximal possible credit sum. This is possible only provided professional assessment of the borrower’s business risks.
In which order technologic and product projects will be introduced?
- We have already started introduction of the project for small and medium business. We plan to complete the project till the end of the first quarter of the next year. In November we started the projects on automation of credit tasks for retail banking. It includes scoring system, the process of decision making and all possible checks on accounting lists and ratings. The total term for their implementation is six months. From January 2007 we will launch the project on remote client servicing. Besides, we take the new stage of development of CRM, a system, which allows to improve the work with the client base. This system shall include all information about the client, which is available in connection with different services, in different bases.
12.01.2007