Empowering Your Business Productivity
This term is commonly used by information technology (IT)/Information technology enabled services (ITES)/ business process outsourcing (BPO) companies and technical/professional services firms that manage data processing, application testing and software development activities in this domain. In the industry we call it "Banking, Financial services and Insurance" but it may also be addressed as "Benefits, Funding Services & indemnification" Industry.
Banking, Financial services and Insurance (BFSI) is an industry term for companies that provide a range of such financial products/services including mutual funds / blue chip funds /government bonds kind of investments and insurance (life & non-life). BFSI usually comprises of all sorts of commercial banks, insurance companies, non-banking financial companies, cooperative banks, pensions funds, mutual funds and other smaller financial entities.
Banking, as we all know, may include core banking, loans, retail, private, corporate, investment, credit cards and the like. Financial Services may include stock-broking, payment gateways, mutual funds / blue chip funds / government bonds etc. Insurance covers both life (Living) and non-life (Non-Living) like property insurance / vehicle insurance / third party / travel /goods/ shipping / transport etc.
Why we call it an industry?
We identify BFSI as a vertical in itself, because their needs, working patterns, challenges, norms, behavior, work culture, terminology, and work philosophy - everything is similar to a great extent.While the bankers may differs from the above statement, as for them corporate banking could be completely different from investment banking, but from our point of view - from the point of view of giving services to the Banks, Financial services & Insurance companies - their IT needs are quite similar.
A typical set up for most of the BFSI companies, as we understand is -
- One corporate office - be it Bank/financial services / investment banking / Insurance.
- 4-6 regional offices - in a country as vast as India, each region calls for a regional office it could be North, East, West, South- simplest, additionally in some cases it could also be Central India as one more region or even North East India as another region and so on.
- Zonal offices - not all but some of the bigger organizations like some of the top nationalized banks like state bank of India having more than 10K branches or even life insurance corporation of India having 8 zonal offices, around 109 divisional offices, 2,048 branches and 992 satellite offices and corporate offices; it also has 54 customer zones and 25 metro-area service hubs located in different cities and towns of India. It also has a network of 1,337,064 individual agents, 242 Corporate Agents, 89 Referral Agents, 98 Brokersand42Banks for soliciting life insurance.
- Numerous branch offices.
- Numerous franchisee offices or ATMs.
Some Business challenges in BFSI
As a part of our standard practice, we get into a contract with a third party research organization for making a APAC wide research to understand the challenges, take feedback, take consultancy, involve people to get on to the basics of any new sector, that we are exploring to focus upon. And the market research company after a lot of survey forms, personal interviews, web media opinion poll, social media likes & comments could summaries the key challenges of BFSI as below given list;
- Increasing the penetration of banking in rural areas.
- Improving risk management mechanism.
- Technology adoption.
- Tackling demand-supply mismatch.
- Credit disbursement to the priority sector.
- Maintaining asset quality.
Financial Services / Investment Banking
- Reach of funds/ distributors to retail investors.
- Limited innovation in product offering.
- Low level of Customer Awareness.
- Multiple Regulatory Frameworks.
- Rural Market still under penetrated.
- Need for Accuracy in Pricing of Risks.
- Pension Market remains untapped.
The Three Keys
Now as it's all related to finance or economy or money transactions which is one of the key binding force in the human society after the age old barter system, ("not to forget in case of some rural and cooperative bank and some micro finance organizations even barter is still being used as one of the key ingredients services"), the infrastructure becomes key important factor. And as the spread is too huge - CONNECTIVITY becomes the significant concern.
In today's age of Information technology and electronic media, organizing such mammoth infrastructure and colossal organizations has become much easier than before, but the same is true with manipulations too. So one of the key factors for these organizations becomes SECURITY. That's one of the biggest domains for the financial institution to spend upon. Be it physical security, transport security, alarms, electronic security or data security.
And the tertiary factor as the fundamental concern for the BFSI companies is the competition. Now a days the competition is so huge that the competition is killing the bottom line and to remain a oat the basic need is keep the infrastructure up and running. So the third key becomes UPTIME.
ZyXEL BFSI Solution
The whole ZyXEL's BFSI solution is knitted around these three key requirements of BFSI.Our approach has always been to understand the pain areas first, look for solutions, build a product towards resolving the issue and then present it to our customers on a platter.
We understand that our customers are not our competitors, of course there area of expertise is not IT. So our objective has always been to provide our customers with hassle free products & solutions, ease of manageability, soft on pocket and long term resolutions to our customer's problems, so that they could focus more on their core business and not on IT infrastructure botherations.