|From a technology standpoint, Niyamas sets up
the technology standards to be deployed for business inter-operability.
Niyamas Tyootelery provides the ability to integrate secure document
transfer, by authenticated users, into processes that would otherwise
require sending paper documents or computer media by post or courier,
gambling on insecure, unreliable file transfers, or paying VAN charges.
Secure document and data delivery over Internet enables a wide range of
applications and benefits.
When extending payment and other cash management services to corporate
customers over the Internet, a level of automation and security is required.
Niyamas Tyootelery allows banks to extend their interactive Web-based cash
management portals to include interactive and automated delivery of payment
files and reports to and from corporate customers.
Again when it comes to corporate clients, channel finance is gaining loads
of importance. The idea to use the creditworthiness of the major corporates
and providing funding to the channel partners viz suppliers and dealers at
spreads better than what the corporate offers but lower than what the
channel partners get on their own strength. This turns out to be a win-win
situation for everyone involved , the bank, the corporate, and the channel
partners. The effort is also towards providing end to end solutions to
corporates, capturing even personal banking requirements of its employees,
salary accounts of employee's et al. With a proper Public Key Infrastructure
in place, transactional backlog can be drastically cut down.
In the case of online banking for users, banks need to have a proper system
for authentication of the user. Even though banks have a secure network
system for encrypted data transfer, still the user is identified using the
typical username/id verification process that is vulnerable to hacking. So
implementation of PKI makes sure that the party performing a transaction
over the Internet is who he claims to be. Later he cannot deny that he has
not done a particular transaction, if he had used his digital certificate.
In today's global economy, the Letter of Credit (LoC) is a key financial
instrument that facilitates the settlement of funds for cross-border trade.
Using an LoC reduces risks for exporters and importers by interposing their
respective banks as trusted third parties. Tower Group estimates the cost of
processing a Letter of Credit to lie in the range of $300 to $500; this cost
can be reduced considerably if the process is automated. For banks, the cost
is even greater. Aside from the traditionally low profit margins associated
with processing LoCs, delays can result in poor customer satisfaction and
therefore, the perception of inferior customer service. Simply put, today's
paper-based LoC processes represent a lose-lose-lose situation for banks,
exporters, and importers alike. Trade Finance is predominantly a document
management business, often involving substantial manpower costs, and
resulting in low profit margins. But it is a critical business for banks;
they must offer trade finance services to satisfy the demands of their
all-important corporate clients.
So, should local banks invest in PKI? When is the right time to invest in
developing the necessary infrastructure? How to go about implementing PKI?
The first two questions require an assessment of how PKI could be used to
support the banks' current and future e-business solutions. For example, if
a bank is looking at implementing a wealth management system for its
top-tier clients or a business-to-business fund-transfer system, or have an
online banking system in place, PKI may be useful in mitigating the inherent
Furthermore, the bank may consider choosing Niyamas as the PKI standard,
especially if its customers are to transact with customers of other banks.
The individual return on investment could vary for different banks depending
on the types of e-business solutions they offer. PKI is an infrastructure;
in itself, it offers no direct return on investment unless it could add
value to other business applications. Thus, an integrated strategy linking
the business application development plan, risk management framework and
customer relationship management is needed to fully exploit the benefits
offered by PKI.
Also, the bank has to decide whether it should implement and operate the PKI
itself or outsource it to a trusted third party. The benefits of outsourcing
include lower upfront investment and implementation risks, and shorter
The required technology infrastructure and business processes need not be
created from scratch. We offer a quick and affordable way for banks to
implement PKI, with the boost for their business initiatives.
One notable aspect of this system is the network externality effect. Similar
to the fax or the telephone, the value that Niyamas provides increases with
the number of participants. As more banks join Niyamas, more customers will
benefit from the business inter-operability and trust framework provided by
the Niyamas system; and this will induce even more customers, their trading
partners and their banks to join the network.