Overview | Oportunity | Solution | Outcome

Overview

Imagine if nowadays banks branch offices are not 'on-line'. You can only post and withdraw cash on branches where you initially open an account. Especially when customers need cash money while he is away. Banking services will be only limited to certain areas only. With 'off-line' system data recording become complicated. Administration fee is higher, centralized data collection is hard and slow to be accomplished. Management control to all branches is difficult or even imposible to perform. "All business process flow becomes inefficent and banking services to end users can not be improved", said an IT Manager of a private bank in Jakarta.

Opportunity

click to enlarge picture Construction of 'on-line' branches become necessity. To stay competitive banks need to expand branches to acquire more customers. To keep efficient each branches need an integrated application either with other branches as well as Head Quarters. Any banking transaction in one branch will be recorded automatically in Head Quarters and can be accessed by other branches. This will ease banks in cotrolling and also pleassures for customers since they can withdraw and deposit fund anywhere he goes aand also with the proliferation of ATM. All these are possible with the implementation of 'on-line' banking.

Solution

For large banks that demands data security, reliable communication line, Lintasarta provide Frame Relay Network solution. This solution use private network, dedicated bandwith that directly interconnect Head Quarters and branches. Its troughoutput can reach up to 2 Mbps. For medium to small banks with less banking transaction, they can utilize VPN Multi Service solution by Lintasarta. This solution is in peer with broadband solution, but more efficient since it takes advantage of Virtual Private Networkwhich is built based on internet using MPLS technology. To interconnect Head Quarters LAN (Local Area Netwrok) with branches LAN (Local Area Netwrok) a communication links is needed called WAN (Wide Area Netwrok). With WAN existance, Head Quarters and branches can interchange data and further integrate voice to give more efficiency for suburban and overseas voice communication. As depicted by the illustration, Head Quarters connected trough WAN using Frame Relay to each branch and suburban with variety of bandwith. For location uncovered by wireline access, WLL, BWA or VSAT is an alternative. VSAT solution can be used for ATM esspecially these located in public areas.   Banking curently build its 'on-line' system is advised to develop ATM network currently since transaction fee is cheaper compared to transaction by branches and it also reduce HR return. For small scale banks that can't afford to develop its own system they can choose 'shared ATM' system as long as they have set up their branches 'on-line' system. If they adopt Lintasarta solution it will be easier to embed shared ATM into its online system since Artajasa (provider of shared ATM) is a subsidiary of Lintasarta. With an efficient budget, enterprise can improve its service quality to customers due to addition of widespread 'shared ATM' network.

Outcome

Before on line After on line Limited numbers of customers and only for limited mobility people Large numbers of customers, higher customers satisfaction Low efficiency due to slow business process. Large number of employee, high administration fee High efficiency due to automation and paperless internal business process. Dificult for Management to control data since data spread accros branches  Ease to Management control due to centralized data store. Unable to interconnect ATM facility Take advantage of ATM and  shared ATM