Monetary and Banking Research Institute
Date:3/6/2019 9:09:16 AM   |   Code : 294289   |   View: 430

A Survey of Spending Status of Iran's Banks on Information Technology (Monetary and Banking Research Institution, 2015)


Executive Summary

Although, in the area of ​​Banks' information technology, reports have been prepared in scattered, sectional fashion, there has never been a comprehensive, clear and detailed image of the processes and developments of banks in this area. With regard to the goals of the Monetary and Banking Research Institute, the Electronic Banking department has been collecting information in areas such as the goals, policies and actions of banks in the area of ​​electronic banking and payment services (IT Strategy and Performance), developments in the structure and mechanism of decision-making and management of the Information Technology (IT Administration), and IT spending budget (IT Spending) in recent years and in the form of an analytical- comparative report, with the corresponding graphs, is reviewed the progress of the banking system in these arenas. The results of this study are presented in the form of a comprehensive report at the Annual Conference on Electronic Banking and Payment Systems, and each year the report is updated. In addition, banks can use the results of the analysis to compare their situation in different arenas in Peer Group Analysis system designed for this purpose.

This project was first conducted in 2015 in the Department of Electronic Banking of the MBRI. In this report, the banks’ spending on Information and Communication Technology (ICT) is scrutinized and the main indicators of ICT spending for the banking industry are studied. These indicators are presented with a comparison to global indicators. The amount of money spent by banks in the ICT indices for large, medium and small bank groups is based on the defined criteria of the size of the bank in terms of the amount of assets. The basic indicators studied are:

·        The amount of ICT expenditure per operating income

·        The amount of ICT expenditure per operating cost

·        The cost of software relative to the total cost of ICT

·        The cost of hardware relative to the total cost of ICT

·        The cost of access channels relative to the total cost of ICT

·        The cost of ICA per employee

·        OPEX costs relative to the total cost of ICT

·        CAPEX costs relative to total cost of ICA

The aforementioned indicators have been studied and compared in the triple banking groups. Finally, the banks' approach to expenditure on ICT in these groups has been extracted. Then, the analysis of ICT expenditure in the banking industry based on the main indicators and the sub-indices and the comparison of the type of expenditure of the banking industry based on these indicators are presented. Studied indicators include:

·        Costs of ICTs over the total budget

·        Ratio of current costs to total ICA costs

·        Hardware and software costs, including the ratio of these costs to total ICA costs as the main indicators, as well as the ratio of software and hardware costs to the total software and hardware costs as the sub-indices of this field

·        The cost of access channels relative to the total cost of ICA as the main indicators and the cost of different channels of access to the total cost of access channels as sub-indices of this area

·        Counseling and organizational architecture costs over total ICA costs

·        Spending on ICT training over the total ICT costs

·        The manpower costs over the total ICA costs

·        The ratio of the number of ICT staff to the entire staff

Criteria are a combination of the main indicators of ICT costing along with some of the secondary criteria used to analyze the spending of the banking industry in the ICT.

Finally, the efficiency chart of the banks’ spending on ICT to the spending of the entire banking industry is presented. This chart shows how much spending of the banks in the ICT has promoted the business of banks and how much has deviated from the main goal.

Also, the assessment of customer satisfaction (Iran banks) from the manufacturers of ICT products and services is presented. This assessment is based on information received from banks and the method set out in the strategy document.

The systems and services assessed are:

·        Billing Payment System

·        Islamic Facility System

·        Foreign Exchange and International Systems

·        Mobile Banking Services

·        Internet Banking Services

·        Telephone Banking Services

·        Debit Card System

·        Credit Card System

·        Gift Card Service

·        Data Center System and Services

·        Communication Services

·        Staffing Systems

·        System Support Services

The assessment of banks' satisfaction in this sector are made on the basis of the total number of points received by service providers in different areas, along with average scores, as well as the number of banks received services or products from each company.

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