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Erp for Banking Industry

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ERP FOR BANKING INDUSTRY
Subodh Kesharwani
Enterprise Resource Planning application software is appropriate for organizations in all economic sectors including banking industry. This wide applicability is largely possible as ERP offers considerable flexibility to customize the software by tailoring it to the individual organizational needs. In this short review paper, it is attempted to enumerate potential and prospects of ERP system in the banking industry which is generally done after its system integration with other IT and web-enabled banking systems.

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INTRODUCTION Banking broadly covers deposits, lending services and money transmission. Banks play a crucial role in mobilizing and distributing a nation’s wealth to ensure a healthy growing economy. Banks normally have large branch networks, many of them comprising over a thousand branches. A bank customer can an individual or an organization with a current or similar account with the bank (Lipscombe & Pond, 2005). ERP systems in business are typically used with an internal perspective and less with external perspective. However, in banks the applications are more with external perspective as a bank deals with money that is transferred from person to person, from business to business and from country to country. A national banking system consists of thousands of individual national banks, their branches and extension counter located in large cities and small towns across the country (NBS, 1999). A bank owes to serve customers to the best of its capabilities for which ERP is a useful aid. A bank needs to fulfill several obligations towards its customers. For instance, it needs to maintain strict secrecy about customer affairs. As part of its typical

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