Be prepared for coming transformation of FSP industry in India: Gartner

"Be prepared for the coming transformation of Financial Services Provider (FSP) industry in India," Gartner APAC senior VP Bob Hayward cautioned companies. Hayward believed that both India and China showed large growth in financial services and were exciting dynamic markets. Shared services/ BPO, wireless services opportunity, CRM, B2E, mobile devices and infrastructure and improving B2B capabilities will be the hot APAC FSP ICT priorities until 2005.

Hayward was speaking at a session on `financial services scenario: Volatile markets require experienced drivers' at the Gartner Summit India 2003. He was of the opinion that the Indian FSP industry posed a major challenge.

Between 2003-12, the Indian FSP sector will undergo a transformation with new private banks and foreign banks. While a large number of banking customers use wireless telephony, this is not true yet in India, he said. CRM however is high on India's radar. The lines are blurring between financial services for business and individuals, Hayward said.

Blasting the myth that people only remain unserved due to poverty, he believed that breaking down language and cultural barriers, working with the government on the digital divide and infrastructure and modifying account requirements were a few viable strategies that could bring in results.

The action plan, according to Hayward, was to carefully evaluate demographic trends to identify potential shifting markets. Alter the cost perspective to find profitable transactions and focus on building relationships anticipating needs, he advised. Most importantly, pursue a CRM strategy, he said.

Hayward suggested developing a CRM roadmap for the company while allowing for flexibility to change course. An ability to integrate islands of information and process silos is a major challenge, he said, urging companies to look beyond technology guidance. Don't just document architecture, give it `teeth' he advised, asking companies to resort to saving money by self service approaches.

Cyber News Service 

Mumbai