Ambition
Chaitanya Godavari Grameena Bank (CGGB), a regional rural bank (RRB), sought to modernize its core banking system to keep pace with the dynamic advancements in the world of digital banking. With the Reserve Bank of India (RBI) pushing for enhanced technology adoption in RRBs, CGGB aimed to meet stringent compliance requirements, ensure efficient digital transactions, and streamline customer service. Faced with a core banking platform (Finacle 7.0.16) version that was out of support and nearing end-of-life, CGGB needed a comprehensive upgrade that would not only support the latest regulatory standards but also enable future growth in transaction volumes and digital services.
Action
Wipro partnered with CGGB to execute a full-scale technology upgrade of their Finacle system, transitioning from version 7.0.16 to Finacle 10.2.25. The project encompassed a complete overhaul of the bank's IT infrastructure, including database migration, hardware upgrades, and system architecture changes.
Key actions included:
- Infrastructure and Capacity Planning: Wipro carefully assessed CGGB’s transaction volumes, user base, and future projections to recommend the right hardware and deployment architecture. This included planning for scalability to accommodate growing digital transaction volumes.
- Data Migration: A custom migration tool was developed using ETL (Extract, Transform, Load) methodology to migrate data from the older Finacle version to the new platform, avoiding reliance on the OEM’s migration tool. This ensured smooth data transition without any data loss or corruption.
- System Architecture Enhancement: The upgrade required architectural changes, such as the separation of the application layer into J2EE and C++ components. This was complemented by the integration of new technologies, including Red Hat JBoss middleware (JBCS) for load distribution at the web server level.
- Digital Transformation: The upgraded system facilitated faster customer onboarding and account origination across CASA and lending products. A robust Single Sign-On (SSO) framework was implemented for ease of access, improving operational efficiency.
- Cybersecurity and Compliance: The system’s architecture was designed to meet stringent cybersecurity standards, reducing vulnerability risks and ensuring compliance with evolving RBI regulations.
- Timeline Management: Despite a compressed timeline (preponed by 4 months due to external pressures), Wipro successfully delivered the upgrade within 8 months, maintaining high standards of quality and functionality.
Ambitions Realized
The Finacle upgrade and modernization enabled CGGB to address key operational challenges and achieve significant improvements in both business performance and customer service:
- Enhanced Operational Efficiency: The bank was able to process transactions faster and with higher accuracy. Customer-facing services were streamlined, leading to a smoother onboarding experience and improved customer satisfaction.
- Increased Digital Transactions: Digital transaction volumes increased to 94% of total transactions. The upgrade also boosted the success rate of digital transactions by 13%, supporting the bank’s shift to a more digital-centric model.
- Faster Time-to-Market for New Products: CGGB was able to launch new products faster, reducing the time required to introduce innovative pricing mechanisms for CASA and lending products. This flexibility in pricing improved customer retention and profitability.
- Regulatory Compliance: The upgrade ensured compliance with RBI’s latest standards, with features like the Finacle Integrator supporting seamless integration with third-party services, and enhanced security features meeting the highest industry standards.
- Scalable Infrastructure: The new architecture and hardware stack provided CGGB with the flexibility to scale operations efficiently. The bank’s IT infrastructure now supports increased transaction volumes without compromising on service quality.
- Improved Business Performance:
- Retail advances grew by 3%, and MSME advances increased by 9% within 3 months of going live.
- Customer onboarding process improved by 5% (reduced the TAT by 5%).
- Seamless Operational and Reporting Capabilities: Operational efficiency was significantly improved with enhanced back-office reporting, smoother month-end and quarter-end processes, and reduced server maintenance downtimes.
- Increased Customer Stickiness: The ability to offer personalized and innovative products with flexible pricing mechanisms strengthened customer loyalty, contributing to improved product profitability.
Through a successful partnership with Wipro, CGGB successfully navigated a critical technology transformation. By upgrading to Finacle 10.2.25, CGGB achieved enhanced operational efficiency, seamless digital services, and the ability to respond faster to regulatory changes and market demands. Wipro’s expertise in managing complex IT infrastructure and business transformation played a pivotal role in the bank's success, making this upgrade a blueprint for other RRBs looking to modernize and thrive in the competitive digital banking space.
"We are extremely pleased with Wipro's strategic partnership and their exceptional delivery of the Finacle technology upgrade project. Their expertise and dedication have not only transformed our operational efficiency but also positioned them as a long-term strategic partner for CGGB. The successful completion of the project well in advance of the deadline, despite the compressed timeline, reflects Wipro's commitment to excellence and their ability to deliver high-impact results in challenging environments."
K Promod Kumar Reddy, Chairman, Chaitanya Godaveri Grameen Bank
Key Benefits & Metrics Achieved:
- 94% of total transactions are now digital.
- 13% increase in the success rate of digital transactions.
- Customer onboarding process is improved by 5% (reduced the TAT by 5%).
- Streamlined customer onboarding process and improved time-to-market for new products.
- Seamless month-end and quarter-end processing.
The project was executed on time, within budget, and with no major operational disruptions, demonstrating Wipro’s ability to deliver high-impact results in fast-paced, high-stakes environments.
