NKGSB: Core Banking Transformation: Measuring the Value :
Bank Profile - NKGSB was founded on 26th September 1917. NKGSB is the one of the
leading co-operative sector bank, is now a Multi-state co-operative Bank having its area of
operation in the states of Maharashtra, Karnataka, Goa, Gujarat and Madhya Pradesh, operates
107 branches, a large network of ATMs across these states, the financials at the end of 31st
March, 2017, Bank share capital stood at Rs 94 Cr. owned funds at Rs 706 Cr. and the total
business mix at Rs 12,223 Cr. consisting of Deposits of Rs 7,095 Cr. Advances of Rs 5,128
Cr.
Business Drivers - The Bank has taken a major technological transformation. The Bank
started a core banking transformation project, migrating from legacy banking technology to
Finacle, and changing much of the banking application portfolio and infrastructure with it,
the digital banking transformation took place on 16th January 2017. The Finacle implementation project at
NKGSB Bank’s remarkable because the project was completed in 17 months and was largely
incident free.
Solution :
This project ran for approximately 17 months, ending in a high-profile roll out in January 2017.
Throughout these 17 months a team of 40-60 IT and business personnel, involving employees
from Modus Information Systems and the Bank (and another IT services organization for channels services), were
on site and at its peak the team strength attained around 80. In addition to various IT
roles, the Bank deployed excess business employees, with each executive managing a
project track. Fifteen employees from the Bank ’s IT organization were deployed full time.
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Banking Data migration and standardization, as would be expected of a project of this nature, was particularly challenging and went through over multiple runs.
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A train-the-trainers approach was adopted for training branch employees. After several rounds of user acceptance testing, roll out simulations, and training, Finacle was rolled out to each of the Bank’s 105 branches at one go on 16th January 2017.
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Over the next couple of months, the Bank’s focus was on stabilizing the new system, and this objective has been met.
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The Bank deployed several solutions in conjunction with Finacle core banking, Finacle e-Banking, Finacle Treasury, Finacle Alert Server, ATM switch, integration with Automated Clearing House (NACH/ECS) and Real Time Gross Settlement (RTGS) system, National Electronic Fund Transfer (NEFT), Mobile Banking, among many others.
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The Bank reports no significant delays or catastrophic problems during these 17 months. Also, the big bang roll out was accomplished without incident.
An interesting aspect of the project was the outsourcing of finacle testing services to a specialist.
A Project Management Office (PMO) office was set up for smooth functioning of project.
Data migration and standardization, as would be expected of a project of this nature, was
particularly challenging and went through over multiple runs. A train-the-trainers approach
was adopted for training branch employees. After several rounds of user acceptance testing,
roll out simulations, and training, Finacle was rolled out to each of the Bank’s 105
branches at one go on 16th January 2017. Over the next couple of months, the Bank’s focus
was on stabilizing the new system, and this objective has been met.
The Bank deployed several solutions in conjunction with Finacle core banking, Finacle
eBanking, Finacle Treasury, Finacle Alert Server, ATM switch, integration with Automated
Clearing House (NACH/ECS) and Real Time Gross Settlement (RTGS) system, National Electronic
Fund Transfer (NEFT), Mobile Banking, among many others. The Bank reports no significant
delays or catastrophic problems during these 17 months. Also, the big bang roll out was
accomplished without incident.
