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Business Knowledge for IT in Retail Banking: A Complete Handbook for IT Professionals

Book Description

Knowledge is power; business knowledge is even more so! Business savvy IT professionals to rule the world; it is a given. The future is bright for IT professionals with business knowledge of their chosen industry sector. Ladies and gentlemen in IT, it is our pleasure to introduce "Business Knowledge for IT in Retail Banking" designed to deliver the required business knowledge to discerning IT professionals in the Retail banking industry. The 12 chapters in this book cover the following topics: an overview of the Retail banking; recent trends in Retail banking; the business environment in Retail Banking; major players in the Retail banking industry; the common systems used in Retail banking; and, the future of IT and business in Retail banking.Latest innovations in business and IT in the Retail banking industry discussed in the book include SEPA, The Faster Payment Initiative , Business Process Automation, Islamic Banking, SWIFT for Corporates, Banking in the Virtual World , Customer Analytics and much more

Table of Contents

  1. Copyright
  2. Preface
  3. Acknowledgements
  4. Introduction
    1. Why is Business Knowledge of Retail Banking important?
  5. 1. Overview of Retail Banking
    1. Introduction
    2. Definition of a Retail Bank
    3. Types of Retail Bank
    4. Definition of Money
      1. Functions and Qualities of Money
    5. The Banking Code
    6. Service Offerings in Retail Banking
    7. Distribution Channels in Retail Banking
    8. Banker–Customer Relationship
      1. Bank Duties to the Customer
      2. Customers’ Duties to the Bank
    9. How Banks Generate Revenue
    10. Global Retail Banking Industry
    11. Overview of the UK Retail Banking Sector
    12. Retail Banking in the UK in Recent Years
    13. Internet Banks
    14. Peer-to-Peer Banks
      1. What is a Peer-to-Peer Bank?
      2. Overview of Peer-to-Peer Banking
      3. How Peer-to-Peer Banks Work
      4. Downside to Peer-to-Peer Banking
    15. List of Some Retail Banks
  6. 2. Product Types in Retail Banking
    1. Introduction
    2. Accounts
      1. Current Accounts
        1. Standard accounts
        2. BizEast standard account
        3. Overdraft Rate
        4. Premium accounts
        5. BizEast Opal account
        6. Overdraft Rate
        7. Student accounts
        8. BizEast student account
        9. Graduate accounts
        10. BizEast graduate account
        11. Young persons’ accounts
        12. BizEast young persons’ account
        13. Cash accounts
        14. International accounts
        15. Specialist services
      2. Business Accounts
        1. Business accounts for start-ups
        2. Client call account
        3. BizEast client call account
        4. Designated client account
        5. Business instant access account
        6. Business tariffs
      3. Islamic Accounts
        1. Islamic current account
        2. Islamic business account
      4. Savings Accounts
        1. Online saver account
        2. Guaranteed tracker account
        3. BizEast Guarantee Tracker
        4. Children’s savings accounts
    3. Investments
      1. Guaranteed Investment Accounts
        1. Bizle Guaranteed Investment Account
      2. Individual Savings Account (ISA)
        1. Maxi ISAs
        2. Mini ISAs
        3. Cash ISAs
    4. Cards
      1. Credit Cards
      2. Debit Cards
      3. Prepaid Cards
      4. Merchant Services
      5. Payment Gateways
    5. Loans
      1. Personal Loan
      2. Bridging Loan
    6. Mortgages
      1. Fixed-rate Mortgage
      2. Tracker Mortgages
    7. Insurance
      1. Home Insurance
      2. Car Insurance
    8. Travel Services
      1. Travel Money
      2. Travel Insurance
    9. Bank Codes
      1. BIC
      2. IBAN
      3. Sort Code
      4. Issuer Identification Number (IIN)
        1. What is an IIN?
        2. The Three Elements of the Primary Account Number
    10. Rates
      1. BBA LIBOR
  7. 3. The Business Environment in Retail Banking
    1. Introduction
      1. Government Borrowing and Debt Repayment
      2. Overseas Funds
      3. Interest Rates
      4. Exchange Rates
      5. Inflation Rates
      6. Government Fiscal Policy
      7. Changing Demographics
      8. Use of Technology
    2. Players in Retail Banking
    3. The Competitors
      1. Overview of the Major Players in Retail Banking
        1. Royal Bank of Scotland Group
        2. Citigroup
        3. Barclays
        4. HSBC
    4. Allied Organisations
      1. The Regulators
        1. Financial Services Authority
        2. Bank of England
        3. European Central Bank
        4. EMVCo
      2. The Card Companies
        1. VISA
        2. MasterCard
        3. American Express
        4. Diners Club
        5. Japan Credit Bureau
      3. The Credit Referencing Agencies
        1. Uses of credit referencing agencies
        2. Equifax
        3. Experian
        4. Callcredit
      4. News Agencies and Trade Associations
        1. What are news agencies?
        2. The Financial Times
        3. APACS
        4. SWIFT
        5. Fair Isaac
        6. Council of Mortgage Lenders
        7. CIFAS
        8. Building Societies Association
        9. British Bankers’ Association
        10. LINK
      5. Clearing Organisations
        1. What is clearing?
        2. CHAPS
        3. Cheque and Credit Clearing
        4. Bacs
        5. Voca
  8. 4. Trends in Retail Banking
    1. Introduction
    2. Introduction of SEPA
      1. Implications for IT Professionals
    3. Introduction of Faster Payments
      1. Challenges and Risks
    4. Sarbanes-Oxley Act of 2002
    5. Basel 2 Accord
      1. Effects of Basel 2 on Retail Banks, Customers and Regulators
      2. The Future
    6. AML/KYC
    7. Growth of Social Lending
      1. Social Lending Market
    8. Emergence of Financial Supermarkets
    9. Deconstruction of Banking Services
      1. What is Deconstruction?
    10. Remote Card Authentication
      1. How does Remote Card Authentication work?
    11. Use of High Technology Tools to Identify Prospects
    12. Use of Customer Analytics
    13. Growth of Online Banking
    14. Recent Card Industry Initiatives
      1. Chip and PIN
      2. Industry Hot Card File (IHCF)
      3. Summary Box
      4. Remittances
      5. Person-to-Person Payments
      6. Contactless Payment
    15. Rise of Islamic Retail Banking
    16. The Introduction of SWIFT for Corporates
      1. SCORE
      2. MA-CUG
    17. Identification of the Unbanked Retail Market
      1. Who are the Unbanked?
    18. Onset of Banking in Virtual Worlds
    19. The Growth of Buy-To-Let
    20. Cheque Truncation
    21. Introduction of Paperless Bank Statements
    22. Popularity of Mobile Payment
  9. 5. Account Opening in Retail Banking
    1. Introduction
    2. Background to Account Opening Systems
    3. Theoretically Underpinnings
      1. Customer Due Diligence for Banks
      2. Money Laundering
      3. The stages of money laundering
      4. Account Opening Requirements
      5. Acceptable forms of ID
      6. Electronic identification and verification (EID&V)
      7. Corruption and Politically Exposed Persons
      8. Terrorism
        1. Sanctions
    4. Account Opening Process
    5. Personal Banking Process
      1. Customer Data Entry
        1. Preconditions
        2. Flow events
          1. Basic path
          2. Alternative path [1]
          3. Alternative path [2]
          4. Alternative path [3]
          5. Alternative path [4]
        3. Post condition
      2. Address Checking
        1. Precondition
        2. Flow events
          1. Basic path
          2. Alternative path
        3. Post condition
      3. Credit Checking
        1. Precondition
        2. Flow events
          1. Basic path
          2. Alternative path [1]
        3. Post condition
      4. Product Offering
        1. Precondition
        2. Flow events
          1. Basic path
          2. Alternative path [1]
        3. Post condition
      5. Identity Verification
        1. Precondition
        2. Flow events
          1. Basic path
          2. Alternative path [1]
          3. Alternative path [2]
        3. Post condition
      6. Account Opening Fulfilment
        1. Precondition
        2. Flow events
          1. Basic path
          2. Alternative path [1]
        3. Post condition
    6. Events Occurring During the Life of the Customer
      1. Mental Incapacity
      2. Death
      3. Bankruptcy
      4. Marriage or Change of Name
      5. Closing an Account
    7. Account Management
  10. 6. Lending in Retail Banking
    1. Overview of Lending
    2. Types of Lending
      1. Secured Lending
      2. Unsecured Lending
    3. Principles of Lending
      1. CAMPARI
      2. ICE
    4. Data on Lending
    5. Collateralisation
      1. Collateral-taking procedures
    6. The Cost of Credit
    7. Economics of Credit
      1. What is Credit?
      2. Five Cs of Credit
    8. Granting Credit Decisions
      1. Creditworthiness
      2. Credit Applications
        1. Judgemental decision making
        2. Credit scoring
        3. Credit scorecards
        4. How credit scores are used for decisions making
        5. Technical implementation of scorecard
        6. Requirements for a technical solution for credit scoring
        7. Benefits of a technical solution for credit scoring
        8. Credit scoring vs judgemental decision making
      3. Credit Referencing
        1. Information sources
          1. Public information
          2. Private information
          3. Derived information
      4. Credit Management
  11. 7. Payments in Retail Banking
    1. Introduction
    2. Manual Payment Methods
      1. Cash
      2. Cheques
        1. Cheque clearing cycle
      3. Banker’s Draft
      4. Traveller’s Cheques
    3. Electronic Payment Methods
      1. Payment Cards
      2. Debit Cards
      3. Credit Cards
      4. Charge Cards
      5. Prepaid Cards
      6. Prepaid Credit Cards
      7. Store Cards
      8. Standing Orders
      9. Direct Debits
      10. Direct Credits
      11. Bacs Payments and Collections
        1. Sending payment information
        2. Payment instructions (items)
        3. Transaction types
        4. Destination account details
        5. Payment files
        6. Day sections
        7. Account section and balancing
        8. Adjustment items
        9. Submissions
        10. Reference numbers
      12. Processing cycle and opening times
      13. Processing and non-processing days
      14. Processing stages and overview
        1. Messaging services
        2. ADDACS service
        3. Bank returned AUDDIS service
        4. AWACS service
        5. ARUCS and ARUDD services
      15. International Funds Transfer
        1. A global dynamic market
        2. Foreign currencies
        3. Foreign exchange rates
        4. Overview of international fund transfers
        5. Forms of payment
        6. Directing fund remittance
  12. 8. Common Systems Used in Retail Banking
    1. Introduction
    2. Industry Dynamics
    3. Increasing Importance of Banking Platforms
      1. Misys Equation
      2. Chordiant® Retail Channel
      3. iflex FLEXCUBE®
      4. Siebel Banking Contact Center
      5. Tenemos T24
      6. Aurius
      7. Infosys Finacle
        1. Future-proof infrastructure
        2. Customer-centricity
        3. Innovative product offerings
        4. Automation capabilities
        5. Regulation and compliance
        6. Efficient payment systems support
        7. Treasury solution
        8. Corporate and consumer e-banking solution
        9. Integrated alerts capabilities
      8. Other systems
    4. Conclusion
  13. 9. IT Projects in Retail Banking
    1. Introduction
    2. List of Common IT Projects
    3. Automation of Business Processes
      1. Real-time Agent Hand-offs
        1. Agent preparation
        2. Back-office bulk processing
        3. Third-party hand-offs
      2. Case study
        1. Project summary
        2. Business case
        3. Business process automation project
        4. Mapping the processes
        5. Process automation benefits
        6. Account closure
        7. Internet applications
        8. Audit
        9. CHAPS
        10. Project benefits summary
        11. Future projects
    4. Use of Screen Scraping for Data Migration
      1. The Problems of Data Migration
        1. Phased migrations
        2. Traditional technical migration method
        3. Other options for migration
        4. What is screen scraping?
        5. Screen scraping methods
        6. An approach to the build/buy decision
        7. Choosing a screen-scraping tool for migration
        8. Checklist for choosing a tool
      2. Building Mainframe Functionality into the Extended Enterprise
      3. The Importance of the Mainframe
      4. Integrating the Mainframe
        1. Screen scraping
        2. Gateways
        3. Adapters
        4. Web services “wrappers”
        5. Rewriting
      5. Mainframe Web Services
      6. Exposing Business Services
        1. What is ESB?
        2. Key benefits of ESB
        3. The “bottom-up” approach
        4. The “top-down” approach
      7. Leveraging Mainframe Services within the SOA Infrastructure
      8. More on the ESB
    5. Conclusion
  14. 10. Common Terminology used in Retail Banking
    1. Introduction
    2. List of Terms
  15. 11. Methodology, Skills and Tools
    1. Introduction
    2. Overview of Mainframe Technologies
    3. Methodologies
      1. International Technology Infrastructure Library (ITIL®)
        1. How is ITIL organised?
      2. RUP
      3. Capability Maturity Model (CMM)
      4. PRINCE2
      5. UML
      6. V-Model
      7. RAD
        1. Core elements of RAD
      8. Agile
      9. Extreme Programming
      10. Pair Programming
    4. Business and Systems Analysis Methods
      1. Business Rules Approach
      2. Entity Relationship Diagrams
      3. Prototyping
    5. Testing Methods
      1. Equivalence Partitioning
      2. Boundary Value Analysis
      3. Error Guessing
    6. Tools
      1. IBM Rational Rose
      2. IBM Rational ClearCase
      3. Mercury QTP
      4. IBM Rational ClearQuest
      5. Mercury Test Director (Quality Centre)
      6. Oracle Designer
      7. PowerDesigner
    7. Common IT Skills Required
    8. Mainframe Skills
    9. Soft Skills
  16. 12. The Future
    1. The Future
      1. What does it hold for Retail Banks in Business and IT?
    2. Adopting Globalisation Strategies for Growth
    3. Introduction of a New Technology Paradigm
    4. Rethinking the Business Model
    5. Outsourcing and Offshoring
      1. Reverse Offshoring
    6. Adoption of Customer Retention Strategies
    7. Growth of Bank Retailing
    8. Intensification of KYC Initiatives
    9. Conclusion
  17. Appendix
    1. Bizle Business Credit Card Summary Box
    2. Calculation of Simple and Compound Interest Rates
      1. Simple Interest
      2. Compound Interest
      3. APR
    3. Useful Websites
    4. Useful Job Boards
    5. Specialist Recruitment Agencies
    6. Bibliography
      1.  
  18. About the Bizle Professional Series
  19. Introducing Bizle.biz
  20. Other Titles in the Bizle Professional Series