The Hindu Business Line : BoI adopts 3-pronged method for networking branches

BANK of India has opted for a three-pronged approach for networking its branches, the bank's General Manager - Information Technology, Mr D. Krishnamurthy, told Business Line.

Bank of India (BoI) recently selected Hewlett Packard (HP) as the main vendor for core banking software. HP will network BoI branches using Infosys' core banking software product, Finacle. The contract, which includes data warehousing and data mining features and a 10-year maintenance job, is worth about Rs 550 crore. The bank intends to connect some ten branches on a pilot basis in August, Mr Krishnamurthy said.

BoI is linking up its branches using three different methods of networking. The first is by using Finacle. Some 750 branches covering about 80 per cent of the bank's business will be networked with Finacle.

Secondly, about 400 branches will be networked using `cluster approach'. In this method of networking, a cluster of branches will be connected to a common server. So, each cluster will have a server and all the servers will be linked up. Incidentally, banks such as Andhra Bank and Indian Overseas Bank are networking using this approach.

To a customer, it makes no difference whether the networking is done using core banking (where all the computing is done at a single centralised server), or through a cluster approach. But, it makes big difference to the bank, in terms of data capturing.

This is because a core banking solution has about 200 fields, which means it can collect about 200 types of information about a customer - name, address, account numbers and so on.

The information need not necessarily come only from the customer. Inputs from external agencies such as Dun & Bradstreet or Credit Information Bureau of India Ltd can also be stored against a customer's name. This will help the bank, for example, to track the credit history of the customer. Better data warehousing and data mining are possible.

However, the cluster approach-based networking can support only about 40 fields. So, while a customer can do `any branch banking' on a cluster-based network just as well as a centralised banking solution-based network, the bank can collect and store only limited data, under cluster-approach.

On the third level, BoI intends to connect some 1,200 branches using `dial-up messaging mode'. These will be essentially rural branches. Under this, when a customer who has an account in branch A wants to transact business in branch B, branch B will `dial into' branch A. After the transaction, which may be withdrawing money, is over the link between A and B will be cut.

Using these three networking methods, BoI will have wired up almost all its branches in a couple of years, Mr Krishnamurthy said.

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