Web Services in ICICI Bank
Compiled & Edited by
Arindam Sain
Introduction
The project is all about the web service and its benefits in the banking and financial services, when a bank implements it to serve the customers.
This project is focused towards the utilization of web service in one of the leading private banks of India i.e. the ICICI Bank. The strategy of top management to implement web service in this bank is a feasible one, as it provides immense benefits for the organization. But, the real question mark is, in the long run, is this technology going to sustain or wipe out from the market.
Web Services are software components that employ one or more of the following industry interface languages and communications protocols - Extensible Markup Language (XML), Simple Object Access Protocol (SOAP), Web Services Description Language (WSDL) and Universal Description, Discovery and Integration (UDDI) - to perform distributed and interoperable computing over technological platforms. Employment of any of the basic technologies - XML, SOAP, WSDL or UDDI - constitutes a Web Service.
Web service is a technology which has several benefits for the organization, due to certain following reasons:-
1) Better Connectivity
2) Internal efficiency
3) Flexibility,
4) Immediacy of information,
5) Interoperability of several systems,
6) Lower cost of systems development
As a result, this service helps to improve the financial services of different banks by the following ways:-
1) Faster and improved service to customers
2) Cost savings
3) Increase in productivity
The web service, when used in any organization, changes the entire business model, strategic cost management, operational services and last but not the least the merger and joint ventures for updating technologies. The project looks upon the ICICI bank, as an emerging bank with the strategy of flexibility and adaptation with the latest technology in the market.
ICICI bank created many portals to attract customers to help them to complete their transaction anytime from anywhere in a very short time. That is, web service has helped the ICICI bank to improve their Business –to –Consumer (B2C) and Business-to-Business (B2B) processes. The bank has implemented Service Oriented Architecture (SOA) for full benefit of web service.
The ultimate study of this project was to find out how web service benefits the bank and what are the advantages, disadvantages and the problems a bank can face at present and also in the long run. The study also comes up with fruitful suggestions, which will give strong insights to improve the facilities of web service on a continuous and cyclic basis, to make the customer satisfied every time.
Research Methodology
The management research was done on the basis of both the primary and secondary data, taken from the market.
Primary Data
The primary data are collected by filling up the questionnaire by the customers of the ICICI bank. The customers having the experiences of doing Internet banking are targeted first. Then, the customers standing in the queue of ICICI bank ATM centers are targeted.
Around 50 respondents were taken from the campus of IBS Kolkata, who have their account in the ICICI bank, and the rest 50 to 65 respondents were from different localities, who were standing in front of ATM centers.
In total, we got around 107 respondents filling up the questionnaires, out of which we selected 100 respondents randomly, for simplicity of our calculations.
The entire data were fed into excel spreadsheet, and the calculations were done, regarding getting the results in percentages.
After getting the result, pictorial representation of the result data has been done using the 3D pie-chart tool of the Excel spreadsheet.
Results from the primary data are mostly quantitative in nature.
Secondary Data
Secondary data were taken from various financial consultants, ICICI bank and securities websites.
Secondary data were also collected from different websites and also from the feedback given by some managerial personnel of Mumbai branch, through email. The statistical portion of the secondary data, regarding profit and other things has been kept private and confidential as much as possible.
Analyses for secondary data are done by collecting important information and authentic data from the sources, and are approved to be used in this project after the confirmation from the ICICI banks’ top personnel.
Results from the secondary data are mostly qualitative in nature.
Major findings from the Research
The major findings that we have obtained in this research are as follows:-
1. ATM Services of the ICICI bank.
2. IT services in the ICICI bank.
3. Online trading and banking in the ICICI bank.
4. Web Services development in the ICICI bank.
5. Business Environment of the ICICI bank.
6. Security systems and IT setups in the ICICI bank.
7. Research results from the primary data (Pictorially represented).
8. Valuable feedbacks and suggestions from the customers & employees.
1. ATM Services of the ICICI bank
ICICI Bank’s 24-hour ATM network is one of the largest and most widespread ATM networks in India. ATMs are located in commercial areas, residential localities, major petrol pumps, airports, near railway stations and other places which are conveniently accessible to our customers.
ICICI Bank ATMs features user-friendly graphic screens with easy to follow instructions. They have introduced ATMs which interact with customers in their local language for increased convenience.
Automatic Teller Machine (ATM) service is one of the fascinating applications of web service, used in the banking industry. ICICI bank had so far utilized this application in a successful way, to satisfy the customers, and to reach out to them at every nook and corner, through proper distribution set-up of ATM centers.
The ICICI bank has the most number of ATMs in the country. The bank uses the BASE24 software, of the Chennai-based Financial Software and Systems (P) Ltd, (FSS), using which it has established connectivity across all the ATMs. The bank has already increased around 3500 ATMs in the last 18 months.
Currently, ICICI bank does the transaction of around 3,20,000 per day across its ATM network.
But failures do take place in the ATM service of ICICI bank. So, to track all ATM related failures, the ICICI bank has implemented the PROGNOSIS System Management and Monitoring tool. PROGNOSIS is a product of Integrated Research of Australia, marketed in India by FSS.
Now, the installation of ATM centers at every locality has benefited the bank in terms of business.
At one point of time, ICICI bank was unable to find any market presence due to the excellent retail presence of State Bank of India and other foreign banks. So, to meet the shortfall of retail presence, the bank decided to go on installing ATMs across the country.
Using this web service, the bank has tapped the busy customers and reduced their inconvenience, and the agents can also go for direct and rapid cross-selling of the banking products. Moreover, this technology also helped to include the rural community.
2. IT services in the ICICI bank
The bank leverages IT as a strategic tool for business operations. So, they are emphasizing more on the web service, to gain competitive advantage by offering customer convenience, improved service, productivity and efficiency. ICICI bank also enhanced its level of customer services through 24X7 availability, multi-channel banking, and straight through processing, and cost efficiency through optimal use of electronic channels.
The ICICI bank integrates diverse products by unifying the enterprise IT architecture, using ERP (Enterprise Resource Program) software on SOA (Service Oriented Architectures) architectures. Automatically generated e-mails of customer statements are sent to the customers on a periodic basis. Facilities to invest in mutual funds online can be done through the help of an online delivery channel (ISWEEP). Integration of depository account of corporate are made with their bank account to facilitate on-line trading in debt instruments.
Due to the web service, centralization of branch databases is done. Now by using the web service, centralization of cheque-book issuance, account – opening processing, statement generation and printing, ATM card issue, generation of MIS and reports are done in a rapid fashion with efficiency.
For CRM (Customer Relationship Management), the Siebel software is used. It provides automation of customer handling in all key retail products of the bank. The software allows customer service agents to track all customer requests and complaints. It also allows target setting and centralized tracking of turnaround times for request fulfillment. The ICICI bank also has a retail data warehouse to achieve customer integration at the back-office.
3. Online trading and banking in the ICICI bank
The bank provides online trading facilities through “www.icicidirect.com” The website provides complete end-to-end integration for seamless electronic trading on the stock exchanges and has been rated “TXA1” by CRISIL, indicating highest ability to stock broking transactions. ICICIdirect has also launched India’s first Digitally Signed Contract Notes (DSCN), which allows a customer to view and print their contract notes online.
Due to the implementation of web service, the ICICI bank has now over one million retail Internet banking accounts. Retail Internet banking customers can view their accounts. They can also transfer funds from their own accounts to the other ICICI bank accounts. The web service also provides the facility of transferring funds to accounts in any branch of any bank, in eight cities through eCheques; India’s first Internet based inter-bank fund transfer facility.
The ICICI bank provides Internet banking services to its wholesale banking services to its wholesale banking clients through “www.icicimarkets.com”, a single point web-based interface for all our corporate clients.
The Corporate Internet Banking (CIB) platform allows clients to conduct banking business online in a secure environment. The web service of the bank also provides forex trading through the Internet on FXOnline and Government of India securities trading through Debt Online.
4. Web Services development in the ICICI bank
The entire web services are operated and developed by the ICICI Group’s owned subsidiary “3i Infotech”. Mumbai based 3i Infotech is the new formation of ICICI Infotech which after a name change and IPO, is trying hard to rework its image as an arm of the bank. 3i Infotech is a software product and services company which caters to the needs of banking, finance, retail distribution, e-governance, dairy, manufacturing and fashion/apparel industries.
The subsidiary of the ICICI bank has developed products in the area of Banking, Insurance and ERP. One of them is KASTLE, a treasury management solution covering foreign exchange, money and equity markets and their related derivative instruments. PINNACLE is another product in the Asset Liability Management space facilitating identification of sources of risk and their measurement while NEWTON is a core banking solution.
5. Business Environment of the ICICI bank
The ICICI bank and its IT subsidiary have five types of in-house software factories. They are: - Web Service Software Factory, Corporate Governance Software Factory (E-Governance), Smart Client Software Factory, Web Client Software Factory, and Mobile Client Software Factory.
ICICI bank has now over 972 branches across India, where web service is in use, with the main data center in the Mumbai Headquarter branch. All these branches offer a complete line of integrated financial services:-
- Core accounts: - This includes savings and checking accounts.
- Lending: - This includes credit cards, consumer loans (such as, auto and line of credit), mortgage, and home equity.
- Investing: - This includes certificates of deposit, trust services, brokerage services (including securities), annuities, individual retirement accounts, and mutual funds.
- Financial planning: - This includes comprehensive financial planning services, including retirement, education, tax, and estate planning, including both future planning and plan execution services.
For direct communication with the customers by using web service, they have the following facilities:-
· Automated teller machines (ATMs)
· Telephone banking services
· Internet banking
ICICI bank has the following facilities in these locations:
Corporate headquarters are located in Mumbai and Hyderabad. Data centers are located in Mumbai and Pune. Telephone banking call centers are located in Mumbai, Kolkata and Gurgaon. Software development centers are in Hyderabad and Mumbai. Branch offices are located throughout IndiaAll back-end systems are located in one or both of the data centers. All systems are based on the Microsoft platform except for the following:
· All customer accounts reside on an IBM mainframe system (OS/390), and all core account transactions are performed using Customer Information Control System (CICS) based transactions.
· Loan information is held on systems based on IBM Web Sphere J2EE.
· Customer information is held on a custom Customer Relationship Management (CRM) system that runs on a Sun Solaris Enterprise System.
· Electronic payments use Automated Clearance House (ACH)-based transactions through an external payment gateway.
6. Security systems and IT setups in the ICICI bank
ICICI Bank's risk assessment processes are reviewed against the bank’s security policy framework. The company also has its own Security Operations Centre for monitoring its security set-up, on a 24X7 basis. The bank's security policy covers Internet, password, logical access, disaster recovery, and Internet messaging, database, application, operating systems, intranet, network, physical, anti-virus, wireless as well as freeware and shareware usage among other things. Every application is assessed using the bank's risk management framework before it gets deployed at ICICI Bank's data center.
The Web developers are trained on secure coding practice on a yearly basis, code reviews are done to determine the efficacy of the process. The Intranet is used for disseminating information about existing threats, for instance, they send e-mails to end users and administrators to make them aware of the latest security threats such as viruses, security patches etc. All metrics that are actionable from the IT security policy are monitored on a monthly basis. Operating systems, application security, database, physical, desktops, servers and password security are some of the areas being monitored.
The metrics are measured manually wherein the auditors conduct physical tests of the systems wherein tools such as desktop management tool are used to scan for viruses and apply security patches for desktops, laptops and servers. Metric sampling is carried out monthly. Application security is reviewed periodically; every application undergoes an assessment before implementation in production.
Penetration testing is executed for all Web based systems. Perimeter security is taken care of by using routers, switches, firewalls. Wireless LAN secured with encryption and authentication (rogue access point detection; software evaluations are in progress) .The ATM and voice networks have been secured.
Some of the important IT Set-ups of the ICICI bank are as follows:-
- ICICI Messenger: This software was developed internally in 2006 to provide secure instant messaging for internal users.
- FTP server: An open source FTP server application has been customized to meet the requirements of the bank.
- PT and VA: Penetration testing (PT) and vulnerability assessment (VA) are done as and when required. They change the vendors involved every year.
- Network printers: Unnecessary protocols are disabled.
- Unauthorized messaging: Only approved software (ICICI Messenger) is used.
- Data security: Encryption software has been loaded on desktops, servers and laptops.
Data center (DC) and system owners are responsible for maintaining inventory and use an online system called DC Governance .Critical systems go through a strict DC induction process wherein systems are hardened, audited, and penetration tested. All systems have specific owners who are responsible for maintaining security. All media is classified and secured.
7. Research results from the primary data (pictorially represented).
1. What is your opinion about the service of ICICI bank ATM centers?
53% of the respondents are of the opinion that the services of ATM centers are good.
2. Are you happy with the amount of money, the bank charges for using the ATM?
69% of customers are just quite satisfactory with the amount, the bank charges for ATM facilities.
3. To you, ATM of which bank is a good competitor of ICICI bank ATM facilities?
According to the customers’ opinion, SBI is the largest competitor for the ICICI bank, in terms of the ATM services. HDFC bank is the second best competitor for the ICICI bank.
4. Whenever you stand in front of the ICICI bank ATM centers, the average no. of persons in the queue?
As per our research results, the average number of persons standing in front of the queue are 5 to 10 people.
5. What is the transaction time for the ATM machines for withdrawal of money?
The transaction time for the ATM machines for withdrawal of money is between 1 to 3 minutes.
6. What is your opinion about the web interface of ICICI bank ATM centers?
58% of respondents are of the opinion that the web interface of the ICICI bank interface is good, followed by the 34% of the customers having opinion that the interface is very good.
7. In how many instances, you have called up the ICICI bank customer care, and there was no response?
The ICICI bank customer care personnel are very active in responding to the customer.
8. Within how many days, severe problems, while doing internet banking have been solved?
Most of the severe problems regarding the Internet banking of the ICICI bank are solved within a week.
9. What is the amount of value addition in terms of experience and efficiency you have gathered?
The amount of value addition, the customers have gathered, in terms of experience and efficiency is in the range of 20% to 40%.
10. Out of 10, how much will you rate the ICICI bank in terms of its web service facilities?
71% of the respondents rate the ICICI bank in the range of 4 to 6, out of 10.
11. How are corporate e-governance and personal financing planning in the online websites of ICICI bank?
Corporate e-governance and personal financial planning in the online websites of the ICICI bank are good.
12. Do you think the number of branches and ATM centers of ICICI bank should be increased?
57% of the respondents are of the opinion that the number of branches and ATM centers of the ICICI bank should be increased both in rural areas & metro cities.
13. How much confidence you have on the data security for online banking in the ICICI bank?
The percentage of confidence, the customers have on the data security for the online banking of the ICICI bank is in the range of 40% to 60%.
8. Valuable feedbacks and suggestions from the customers & employees
1. Security guards are not at all required in front of the ATM centers, poking their big noses, in every aspect. Rather, the ICICI bank should go for the system adopted by the SBI ATM centers, where no security guard is required.
2. The banking software used in the ICICI bank offices should be regularly updated with new features on a yearly basis. Also, the Graphical User Interface (GUI) of that software should be improved.
3. Infosys, the IT Company, which has created the “FINACLE” software for the ICICI bank as well as for the SBI, should make an elaborate study as early as possible to know the think-tank and requirement of the end users of the software. Otherwise, in the long run, the Internet banking may fail to attract more customers, in the face of stiff competition due to the other private banks.
4. Majority of the employees working in the ICICI bank are within 30’s, which is good. The young workforce really serves the customer very fast. But they still require more training.
5. The problem is with the senior level or top level management, where the work is very slow. The main reason behind is that, many of the top personnel are recruited from the public banks, where they have around 15-20 years of working experience. So, their inertia remains to their past work culture, which is very slow, in compared to today’s’ private banks’ work culture, and that’s creates a problem or the working gap.
6. ICICI bank is the leading private bank of India, due to its aggressive marketing stance, but that should be in a balanced way also, because sometimes the customers and employees suffers from some monetary problems. (Note: - The problems have been kept private, in view to retain the banks; image).
7. As per the banks’ trade and business analysis, it is a good move for the bank to go for implementing rural micro-financing, business intelligence and E-finance for different SMEs and subsidiaries.
8. The bank is proud to have a fantastic and up-to date web service facilities, which serves the customers.
9. It is the only Indian private bank, after Global Trust bank or Citigroup, to have the latest IT / web service technology.
10. The mixture of IT, web service, banking and finance, which the ICICI bank is having at present, can do wonders in the future for the banking sector, provided it will be updated, monitored and implemented properly at the right place at the right time.
Conclusions / Recommendations
Major changes will take place, due to the web services. Not only the ICICI bank, but the entire Indian banking sector will experience a new era of innovative and customer-friendly, easy to use, instant banking.
Though, ICICI bank is ranked as the 2nd largest bank of India, but in terms of technological implementation and web service, it is ranked among the top 10 banks of the world. So, surely, we are looking forward to a bright future of E-banking in India. That is, one day dream will come true for the bank customers, that there is no delay, no queue, and no delivery problems. Each and every banking aspects and transactions can be done rapidly within few seconds, by a single click, using internet kiosks, all over the locality and rural areas.
These things are possible due to the impact of web services and its IT application in the finance and banking sector. So, if you want to dream a bright, shining, and powerful banking India, then surely put your hats off to the web service implementation in the banks.
Appendices
The Appendices consist of the questionnaires given to the ICICI bank employees and customers.
Survey of web service in ICICI Bank (For Employees only)
Branch Name: - ______________________ Location: - ___________________________
Name: - ______________________________ Age: - ____ Mobile: - _______________
Designation: - _________________________ Email Id: - ________________________
Which technology of web service is used in the branch?
XML SOAP WSDL UDDI All of themIn how many branches of Kolkata, web service has been implemented?
Less than 20 20-50 50-75 More than 75 any number ____
Where is the main data center of ICICI bank located? ________________________________
___________software development cells are there with approximate __________ employees.
How e-governance is supported by the bank? Say in brief.
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How many and what are the main transactions made with the help of web service?
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How effectively “Service Oriented Architecture” has been implemented in daily transactions?
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The biggest challenge, the branch faces while using web service. Please specify in details.
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Based on what parameters, ICICI bank re-evaluates the efficiencies of web services?
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List the Business-to-Business (B2B) benefits given by the branch, by using web service.
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List the Business-to-Customer (B2C) benefits given by the branch, by using web service.
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What latest methods are in use, to increase the customer satisfaction level?
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At present, what is the customer satisfaction level, due to the use of web service and why?
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How web service has increased the profitability of the branch and by how much?
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Does the web service implementation, has increased the brand value and by how much?
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Date: - ________ Sign of Interviewer ____________ Sign of Respondent __________
Survey of web service in ICICI Bank (For Customers only)
Name: - ______________________________ Age: - ____ Mobile: - _______________
What is your opinion about the service of ICICI bank ATM centers?
Excellent Very Good Good Average Below AverageAre you happy with the amount of money, the bank charges for using the ATM?
Very much Quite satisfactory Not so much Not at all
To you, ATM of which bank is a good competitor of ICICI bank ATM facilities?
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SBI Citibank HDFC UTI Bank
Whenever you stand in front of the ICICI bank ATM centers, the average no. of persons in the queue
|  | | |
0-5 5-10 10-15 More than 15
What is the transaction time for the ATM machines for withdrawal of money?
| | | |
Less than 1 minutes 1 to 3 minutes 3 to 5 minutes More than 5 minutes
What is your opinion about the web interface of ICICI bank ATM centers?
Excellent Very Good Good Average Below AverageIn how many instances, you have called up the ICICI bank customer care, and there was no response
Once Twice Thrice More than Thrice
Within how many days, severe problems, while doing internet banking have been solved?
| | | | |
Within 1 day Within 7 days Within 2 weeks Within 1 month > 1 month
What is the amount of value addition in terms of experience and efficiency you have gathered?
0-20% 20-40% 40-60% 60-80% 80-100%Out of 10, how much will you rate the ICICI bank in terms of its web service facilities?
1 to 4 4 to 6 6 to 8 8 to 10How are corporate e-governance and personal financing planning in the online websites of ICICI?
Excellent Very Good Good Average Below AverageDo you think the number of branches and ATM centers of ICICI bank should be increased?
| | | |
Yes, very much Only, in metros Both in rural & metros No, not at all
How much confidence you have on the data security for online banking in the ICICI bank?
0-20% 20-40% 40-60% 60-80% 80-100%Date: - ________ Sign of Interviewer ____________ Sign of Respondent _________
References
1. www.google.com
6. www.mouthshut.com
7. The Times of India newspaper
8. The Economic Times newspaper
9. The Indian Express newspaper (Mumbai Publication)
10. The Business Line newspaper (Published by THE HINDU GROUP)
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