‘Technology Banking : Does it Deliver Value?’ Umesh Jain President & CIO Yes Bank, India

1. ‘Technology Banking : Does it Deliver Value?’Umesh JainPresident & CIOYes Bank, India

2. Different views • Business View • I pay so much but get nothing in return • Technology has ‘NO’ or ‘limited’ understanding of business • Obsession with ‘Technology’ • Technology speaks Greek • It is always about costs and time • But programmers should use the common sense… don’t they have any ? • Technology is easy on spending ‘hard earned money’ • Tech View • Technology is not included in decision making • Everything is ‘top priority’ • Second class citizens when it comes to RnR • There is very little or no investment in technology management tools • Very little appreciation for what goes behind the scenes in keeping the BAU running

3. More than Value of IT • Value question originates out of inherent conflict • Need to attack root and not symptoms • Both business and IT need to collaborate and CHANGE • Some perceptions and some realities • IT delivers value but there is scope for Improvement • Businesses believe they are getting LESS for the money they spend, though not fully true

4. General Context • Run the Bank (REDUCE) • Service/Projects– Improve Service Levels, Uptime, Availability, TATs, standardize, offshore, outsource • Financials – Decrease costs • Grow the Bank (MAINTAIN) • Service/Projects – Improve Service levels, Incremental functionalities – products/services, Increased volumes/geographies • Financials – Grow yet maintain the costs or bring down unit costs • Transform the Bank • Catch up with industry innovations And/Or Establish blue oceans using disruptive innovations • Financials – Based on returns and risks

5. Root Causes • Business Technology Alignment • Understanding, Appreciation and Respect for each others functions • Management Viewpoint and Expectations • Soft Skills of IT • Communication of Financials Easy to FIX using Processes

6. Business Technology Alignment • Strategic Alignment • Seat for IT on Management and Strategy teams • Apex IT Council for reviewing IT strategy and providing strategic guidance • Relationship Managers for each business area, with dotted reporting to Business Head as also a seat on his management team

7. Business Technology Alignment • Tactical Alignment • Customer – Supplier Methodologies/principles • Service Catalogues • Periodic Planning, Prioritization and expectation setting(3-6 months) • Formal operating reviews (monthly) • Status reports using agreed metrices • Customer Satisfaction Surveys

8. Education and Appreciation • Educating IT about Business • Business Conferences, Seminars, Trainings • Part of Business management team/Strategy team • Having some domain specialists in IT team • Educating Business about IT • Processes and their benefits • Business Justification & Approvals • Problem / Incident / Project • Financial allocations / chargebacks • Technology trends (applied to their businesses) • How business can leverage IT better • Management Principles

9. Management Viewpoint • IT as a differentiator or IT as necessity • IT as an investment, measured like Portfolios or IT as cost centre • IT as driver or IT as partner or IT as support • Different Organization structures and IT management and governance Principles apply • Competency Frameworks are useful in communicating at that level • Often useful to engage external consultants

10. Competency Framework at Yes Bank • Competency (Sub Processes) • RACI Org Structure Job Description

11. Training and Development • Soft Skills • Leadership • Influencing • Communications – Verbal and Written • Marketing and Sales • Conflict Management • Business Domains • Accounting and Cost Accounting

12. Financial Communication • Training on cost accounting and accounting • How the CFO counts his beans! • Using the right yardsticks / Making the sales pitch • Budgeting as per organizational strategy and weightages to RTB/GTB/TTB • Measurements in terms of Unit costs for RTB/GTB operations and targets more in terms of unit cost reductions – IT should drive this • Measurement in terms of ROI for TTB and businesses held equally accountable. To be jointly delivered by IT and Business

13. Recommendations • Improve Business Alignment at both Strategic and Tactical levels • Establish customer supplier relationship with formal paperwork and measure performance around that • Have clearly articulated financial chargeback mechanisms – reasonably accurate and yet not very complex to implement. Run IT like a business • Improve soft skills of IT staff – no more binary world! • Establish governance forums to both bounce off/review your strategy as also ‘communicate’ your achievements IT will deliver EVEN MORE value, and customer will also appreciate it MUCH MORE.