MICROSOFT WINDOWS SERVER SYSTEM CUSTOMER SOLUTION CASE STUDY THE

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“The SVC Bank IT team and MCS developed an end-to-end solution … using BizTalk Server 2004. This has enabled us to reduce the delivery cycle and improve customer satisfaction.”

The Shamrao Vithal Co-operative Bank Limited (SVCB), established in 1906, is currently operating in three states: Maharashtra, Karnataka, and Goa. SVCB conducts banking operations through 38 networked branches, five extension counters, and 33 ATM centres, including an off-site ATM.

SVCB has a share capital of over US$689.69 million (INR 29,270 million) with over 70,220 members. In 2004–2005, the business grew by 12.5 percent and the operating profits by 35 percent.

The cooperative banking sector is witnessing fierce competition from large international and national banks in the country. On one hand, private and foreign banks are working aggressively towards grabbing high market shares, while nationalized banks are increasingly becoming customer centric.

In the past few years, the banking industry has undergone a sea of change. The banking industry is adopting technology at a fast pace and has emerged as one of the largest consumers of IT in the country. Some of these changes are also driven by the Reserve Bank of India (RBI), for example, applications such as the Real-Time Gross Settlement (RTGS) and Cheque Truncation.

The RBI wanted to strengthen the payment systems infrastructure in India by reducing interbank settlement risks

In the past, a bank would send the physical instruments to RBI. Based on this, RBI would clear the money transfer through the clearing payment system. This process used to take up to three working days. To reduce the delivery time, RBI introduced the RTGS, which allows the bank to process the payment transactions directly into the RTGS systems. This reduces the need to physically present the cheque at RBI.

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“We aim to be more profitable by increasing business growth, at a lower operating cost.”

SVCB wanted to take things a step further. Its goal was to improve operational efficiency. It wanted to improve its existing delivery cycle by removing any manual intervention and duplication of transaction entries.

Solution

SVCB selected Microsoft® Consulting Services (MCS) as its partner. MCS helped SVCB in identifying key requirements of the solution and selecting appropriate technology to build the solution.

MCS recommended a RTGS Straight Through Processing (STP) solution based on Microsoft SQL Server^TM 2000 and Microsoft BizTalk® Server 2004, both part of Microsoft Windows Server System^TM integrated server software. “The SVC Bank IT team and MCS developed an end-to-end solution that performs various functions in RTGS STP routing such as messaging, transformation, and orchestration using BizTalk Server 2004. This has enabled us to reduce the delivery cycle and improve customer satisfaction,” comments Ravikiran Mankikar, Deputy General Manager, Operations I & IT at Shamrao Vithal Co-operative Bank Limited.

The Process

SVCB decided to develop the solution on Microsoft software. In its view, Microsoft products have the attributes of cost-effectiveness and ease of use, and can be easily upgraded. "Microsoft products allow ease of deployment. Another advantage is the availability of skill sets for Microsoft software in the market place. Programming is also easier, due to the wide support of tools," says Ravikiran Mankikar.

At the branch level, a transaction is entered into Genius I, the core banking solution based on Microsoft Windows Server^TM 2003, part of Microsoft Windows Server System integrated server software, and SQL Server 2000.

The RTGS STP solution picks up the data from the Genius I software and parses the data using Microsoft Message Queuing Services (MSMQ) Component Service. This data is then viewed and checked by the Head Office Genius Users. The BizTalk Adaptor for MQ Series sends the information to the PI workstation.

As the PI system accepts data in the RBI-specified Structured Finance Message System (SFMS) format only, Microsoft BizTalk Server 2004 converts the data into SFMS format before sending it to the PI system.

Solution Overview and Architecture

The RBI-recommended solution comprises set up of the PI server and flag off at the beginning and end of the day. The bank initiated the development of schema based on the SFMS message format data flow and accounting hooks coded into the solution.

The solution architected by theSVCB RTGS IT team and MCS possesses the flexibility of configuring a maker/checker methodology.

MCS has provided an end-to-end architecture that performs various functions in RTGS STP routing such as MSMQ messaging, transformation, and orchestration using BizTalk Server 2004. MCS used BizTalk Adapter for MQ Series version 2.0 to connect to the PI server.

For SVCB, the solution has proved to be time saving and cost-effective as it only took eight weeks from architecture design to implementation.

Benefits

The solution developed and deployed by the SVCB IT team and MCS, allows SVCB to boast of an upgraded IT infrastructure. It differentiates it from the competition in the cooperative banking sector by offering better customer conveniences.

“MCS has been a close technology partner. The team has always helped us maximize our investments in technology. The RTGS solution is an example of MCS helping us create a low cost, yet effective solution,” explains Ravikiran Mankikar.

Improved Delivery Cycles

For SVCB, the RTGS solution has brought a dramatic improvement in the payment delivery cycle. The information flow is streamlined effectively. The banking application at the branch level sends inputs such as outward customer payment and outward interbank payment to the head office Genius database that, in turn, forwards it to the RTGS host server after due authorization.

Similarly, outward investment-related transactions are registered first in the treasury system and sent to the head office Genius database and then forwarded onward to the RTGS host server.

Improved Reporting and Monitoring

The RTGS interface handles liquidity management within the RTGS system with proper reporting and monitoring.

Better Customer Service

The new solution provides customers the convenience of inter-bank payment within a few hours with minimal risks using online settlement of funds.

"With the manual system, it would have taken us around three days to affect cheque clearance to customer accounts. Now it can be done on the same day," comments Ravikiran Mankikar.

Removes Manual Intervention

The RTGS STP solution has eliminated the need to make manual entries for each transaction. This has resulted in enhanced business processes due to an improved delivery cycle.

Improves Operational Efficiencies and Reduces Business Risks

The bank is also reaping the benefits of operational efficiencies due to minimal risk involved in transactions. The solution has also reduced the instances of entry duplication.

The RTGS solution ensures reliable routing of banking transactions and process orchestration. It also integrates with accounting system for higher efficiency and accuracy.

An XML-based solution using BizTalk Server 2004 has allowed SVCB to be updated on the RTGS requirements from time to time.

Future Plans

SVCB plans to implement a cheque truncation solution that will leverage its existing investments in Microsoft software.

© 2005 Microsoft Corporation. All rights reserved.

This case study is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY.

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Document published May 2005

Microsoft Windows Server System is the comprehensive, integrated, and interoperable server infrastructure that helps reduce the complexity and costs of building, deploying, connecting, and operating agile business solutions. Windows Server System helps customers create new value for their business through the strategic use of their IT assets. With the Windows Server platform as the foundation, Windows Server System delivers dependable infrastructure for data management and analysis; enterprise integration; customer, partner, and employee portals; business process automation; communications and collaboration; and core IT operations including security, deployment, and systems management.

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