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Federal BankTechnology Driven Growth

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Federal Bank is a fast growing premier Private Sector Bank in India with business exceeding INR 8600 million ($ 1600 million). The bank has 1010 branches, 28 administrative offices, 1100 ATMs and a customer base of 6.5 million across the country. Technology has played a major part in the bank’s aim to differentiate itself to its customers. ATMs, Internet, mobile banking and other channels have broken the barriers of location and time, and have expanded the reach of the bank’s operations, earlier confined to its branches.

Across the globe, banks focus on IT investment protection, best use of available resources and reuse of developed components. Even though the objectives appear to be simple, putting these into practice is a tough task and very few organizations have accomplished these objectives on a scale that is comparable to global standards and demonstrated perceivable benefits. Federal Bank is one of the very few organizations that have accomplished these objectives.

Profile

Context

Business Drivers

• With over 1000 branches and the fourth largest capital base in India, the bank is one of the leading Private Sector Banks based in South India.

• It is the dominant “numero uno” bank in Kerala and a leading player in target markets.

• It is the trusted partner of choice for target (SME, Retail and NRI) customers.

• It is a customer-centric organization, setting benchmarks for service.

• As a long-term strategy, protect all channel transactions from all types of fraud and offer a secure environment to customers.

• Attract new customers by guaranteeing transaction security and leverage it to grow business through alternate low cost channels.

• Offers innovative yet simple products supported by state-of-the art technology.

• Has a dynamic and energized workforce with a strong sense of belonging.

• Delivers top tier financial performance and superior value to stakeholders.

• Wishes to be a role model of corporate governance and social responsibility.

• Continue leveraging technology to offer superior solutions to customers and use it as a lever to continue leading the market.

• Comply with RBI mandates and remain the “First to Adopt” bank.

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Key Needs

Key Challenges

• As a first step of its long-term strategy, offer a secure and robust e-Banking platform using an industry leading security solution, without hurting customer experience. The selected solution / platform should be able to integrate seamlessly with the bank’s existing Core Banking, IVR, ATM, SMS Delivery and other systems in future, with minimum additional investment.

• Identify an experienced System Integration partner who can offer guidance on choosing appropriate solutions and later integrate

• Deliver the project in the shortest possible time, enabling the bank to take the solution to market faster.

• Work with banks, internal stakeholders, partners and OEM vendors as SPOC.

• Deliver three phases of the project simultaneously amidst a tight schedule.

Offer a choice of form factors to the bank’s end-customers without compromising user experience and security.

them with Finacle eBanking and other peripheral systems like DUCONT SMS Gateway.

• Provide, deploy and maintain the solutions at optimum price, within the bank’s budget, without compromising customer experience.

Ensure that the solutions are best of breed and compliant with international industry standards, apart from being sufficiently scalable, reusable upon migration to future versions of eBanking, and inbuilt with a failover mechanism.

• In the light of the fact that Finacle e-banking has already been rolled out, ensure that every functionality, as per the use cases covered under 2FA implementation, works from Day 1 and that all existing Internet banking users opting for 2FA are able to transition smoothly.

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Approach

Solution Deployed

Technology

• Infosys worked closely with the bank throughout the OEM vendor selection stage and helped identify the right vendor and solution – Auth Minder from Computer Associate (CA). The CA solution complies with most of the international standards, is best of breed and highly acclaimed by analysts around the world.

• Infosys custom-developed a security solution component to integrate Finacle and the DUCONT SMS gateway with Arcot. The selected integration and deployment approach considered the bank’s future

• Deployed Arcot Web Fort Two Factor Authentication Solution and custom- developed components to integrate with:

• e-Banking Portal and Finacle AdminApplication via Arcot APIs for user registration

• Platform: Windows 2008 Server

• Software: Web Browser (IE 7+, Mozilla 1.5+), IBM Websphere Application server v6.1, Arcot

growth projections, as well as different types of threats and version compatibility issues.

• The project was executed in three phases with multiple activities being undertaken in parallel to achieve quick time to market:

• Phase1-Loginandtransactionauthenticationusing PKI-based ArcotID soft token /credential

• Phase2-Loginandtransactionauthenticationusing hard tokens, OTP over SMS

• Phase3-Loginandtransactionauthenticationusing ArcotOTP credential

• e-Banking Portal for secure authenticationfor login and transaction

• SMSSystemfordeliveryofalertsoriginatingfrom Arcot server/client

Web Fort Server 6.2.7, SQL Server 2005 andFinaclee-banking6.2.3

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Business Benefits• Secure e-Banking experience with the

convenience and flexibility of choosing authenticators.

• Mitigation of Key User Identity-related security risks.

• A secure e-Banking application circumventing key enterprise security threats like Phishing, Pharming, MiTM, MiTB, Brute Force Attack, Private Key Hijacking, Key Logging Threat,

Fraudulent Admin, Challenge Response Intercept,ReplayandKeyLoggerAttackusingaPKI-based solution.

• Enhanced end-user experience based on flexible authentication mechanisms for secure authentication during login and transaction and user /credentials management in case of online workflows planned to be rolled out to 50,000+Users.postGo-Liveon21stDec,2011

Quote“Protecting our customer’s interest by investing in secure channels at Federal Bank continues to be our focus. Through our strategic partnership with Finacle we were confident our adoption of CA Technologies two-factor authentication solution would be implemented successfully and on time. Post the deployment of two-factor authentication module, we have built the capability to provide extra security to our customer’s online transactions and enhance our end user’s experience”

Sunny K PCIO

Federal Bank

Finacle from Infosys partners with banks to transform process, product and customer experience, arming them with ‘accelerated innovation’ that is key to building tomorrow’s bank.

About Finacle

© 2012 Infosys Limited, Bangalore, India, Infosys believes the information in this publication is accurate as of its publication date; such information is subject to change without notice. Infosys acknowledges the proprietary rights of the trademarks and product names of other companies mentioned in this document.

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