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The Future of Indian Banking 1St Ed 2022 Edition Vasant Chintaman Joshi Full Chapter PDF
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The Future of
Indian Banking
© The Author(s), under exclusive licence to Springer Nature Singapore Pte Ltd. 2022
This work is subject to copyright. All rights are solely and exclusively licensed by the
Publisher, whether the whole or part of the material is concerned, specifically the rights of
translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on
microfilms or in any other physical way, and transmission or information storage and retrieval,
electronic adaptation, computer software, or by similar or dissimilar methodology now
known or hereafter developed.
The use of general descriptive names, registered names, trademarks, service marks, etc. in this
publication does not imply, even in the absence of a specific statement, that such names are
exempt from the relevant protective laws and regulations and therefore free for general use.
The publisher, the authors and the editors are safe to assume that the advice and information
in this book are believed to be true and accurate at the date of publication. Neither the
publisher nor the authors or the editors give a warranty, expressed or implied, with respect to
the material contained herein or for any errors or omissions that may have been made. The
publisher remains neutral with regard to jurisdictional claims in published maps and
institutional affiliations.
This Palgrave Macmillan imprint is published by the registered company Springer Nature
Singapore Pte Ltd.
The registered company address is: 152 Beach Road, #21-01/04 Gateway East, Singapore
189721, Singapore
We would like to dedicate this book to Mr. Joshi’s wife Sulabha
and Dr. Kulkarni’s parents who have been the guiding spirits
behind this whole effort.
Preface
vii
viii PREFACE
We also owe a sense of gratitude to Dr. Kulkarni’s family for all the
disturbances we caused to their otherwise even tenor and smooth flow of
existence.
We are forever thankful to Mr. P.B. Kulkarni for his most valuable
advice and guidance throughout the course of writing of the book. We
owe special thanks to Mr. D. Tapurkar for his innumerable suggestions
and a constant flow of relevant material on diverse topics dealt with in
the book.
xi
xii Contents
Cloud Computing 32
Artificial Intelligence (AI) and Machine Learning (ML) 33
Rise of AI in Financial Services 34
Augmented and Virtual Reality 36
Bibliography 39
4 Reimagining Banking 41
The New Normal: New Business Model for Banks 41
Open Banking 46
Digital Banking 47
Bibliography 49
Conclusion 82
Bibliography 82
8 Digital Marketing 83
Interactive Teller Machines 91
Service Terminals 91
Interactive Digital Walls 91
Bibliography 95
9 HR Digitized 97
Part I 97
Keeping Innovation Engine Running 97
Forces Driving Digitization 97
HR Challenges in Banking 98
Making the Promise Come True 98
Digital HR 99
Innovation Culture in HR 103
Conclusion 106
Part II 106
Digitized HR 106
Unlocking the Potential 111
HR Planning and Development 111
Recruitment and Selection 112
Development of Required Manpower 112
Bibliography 117
10 Risk Management119
Inadequacy of Risk Estimation Models 121
Centralized Approach Towards Risk Management 123
Conclusion 124
Bibliography 124
11 Regulation125
Regulating the Financial Systems 125
Part I: Government Borrowing 127
Part II: Reconsidering the Role of Central Banks 128
Digitalization 131
International Adequacy Standards 133
xiv Contents
Index139
List of Figures
xv
List of Tables
xvii
CHAPTER 1
The COVID-19 pandemic has affected virtually all the facets of our exis-
tence. In addition to the immediate medical emergency, the pandemic has
exposed and deepened disparities in income level and the availability of
health and financial services. It has also brought to light the dire harshness
of the lives of migrant laborers at the bottom of the economic pyramid.
The resultant suffering and known/unknown tragedies have certainly left
a terrible scar behind. Therefore, we feel that any discussion about what
the future of banking may hold must begin with a careful assessment of
how the pandemic has affected the banking landscape.
For analytical convenience, the chapter is divided into three parts. In
Parts I and II, we chronicle the steps taken by government agencies, com-
mercial banks, and central banks to deal with the financial emergency
caused by the pandemic. In Part III, we attempt to show how banks can
help bring about a degree of post-pandemic stability.
One is aware that not all those who have lost a job would find another.
In fact, some labor-intensive jobs would be hard to come by. Further,
recouping the losses incurred by the industry would be a matter of great
concern. One can’t forget that the economy is fragile and less innova-
tive, and therefore it would not be easy to adapt to changing
circumstances.
Further, the behavior of the economy is somewhat unpredictable. No
one really knows how long a firm facing zero revenue would be able to
survive. A merely illiquid firm can become insolvent. The banks will have
to make a heroic effort in tilting the balance toward stability and under-
take their normal functions of saving and lending.
We now start with the discussion of the efforts made by financial insti-
tutions (FIs). Basically, they are responding to and accepting the situation
as it comes. At the same time, they have to ensure that they do not waver
from the stabilization effort that they have to undertake.
Part I
The chapter very broadly indicates the difficulties and travails experienced
by financial institutions and details the steps taken to alleviate the difficul-
ties. In the analysis of various aspects of banks’ working we had to stop at
the period ending March 2019 and cover with a broad-brush happening
till March 2020. We were considerably handicapped as required particu-
lars (mainly data) were not available. Many factories were closed. A large
number of workers had gone home (to UP, Bihar, etc.). Transport was not
available to send goods or to bring in raw materials.
Estimates about the extent of disruption and the amount of losses
would have to be mere approximations. The impact of all the disturbances
would be enormous but to quantify these was well-nigh impossible.
The relief measures initiated by the government and banks would no
doubt help a large number of units in the small and medium-sized enter-
prises (S&ME) sector. But how many of them have resumed their opera-
tion or to what extent have their operating cycle is working “normally” is
hard to get at. There is a possibility of certain amount of finances being
directed to “zombie” units too. We were told that banks did have commit-
tees to examine and prune such cases.
One had also to reckon with the fact that most of the banks (public
sector and some even in the private sector) had to deal with the problems
of non-performing assets (NPA).
Some banks were barely out of the prompt corrective action blues.
They could not possibly have borne the “reconstruction” burden on their
own. They too are in need of some props as the next chapter brings out.
In suggesting a broad-based plan for the future (say, digitization of
functions or introduction of AI) we had to assume that over a period the
banks would gain the necessary strength and acquire resources to bring
about the required changes.
1 THE IMPACT OF THE PANDEMIC 3
We are aware that banks and financial institutions have to in all likeli-
hood face a huge additional burden of “out of order” accounts and to try
and to bring them “in order”. How soon this would happen is difficult
to guess.
We are per force required to assume the beginning of a “new normal”
and start considering the developments. These are no doubt major disrup-
tions and could lead to differing time lags in reaching the new normal.
There could therefore be “jerky” journeys ahead in the implementation of
the changes suggested by us. Even perceptions at operating levels may
have an impact on the implementation of proposed changes.
One was hoping that the lull in the COVID-19 surge experienced by us
during the last couple of months would be lasting, and that the process of
revival would be underway. However, the current resurgence in the num-
ber of COVID-19 cases belies that hope. Both in the USA and in Europe
the conflict has once again assumed severe proportions and that “lock-
down” has become a “must”.
The only ray of hope is that the preventive vaccine may perhaps be
available if not within the next month (December 2020) or at least in
January 2021 and may help in the prevention of vigorous resurgence of
the pandemic from February 2021.
We could, however, take a cursory review and try undertaking an assess-
ment to review the emerging situation. One undertakes such a study with
the hope that the resurgence may not exasperate the situation at the
“beyond repair” situations. This assumes that the stoppage would not be
long-lasting.
We begin with a review of the wider global picture and against that
background study the remedial steps taken by or proposed by various gov-
ernment regulators.
he Pandemic Impact
T
The global economic crisis will not be quite as grim as was projected ear-
lier but the GDP growth will touch 4.4% and the damage inflicted would
be felt for years. We quote below a letter from the director of IMF and a
blog by the chief economist at IMF, outlining their concerns about the
4 V. C. JOSHI AND L. KULKARNI
There is now the risk of severe economic scarring from job losses, bankrupt-
cies and disruption of education…global output may remain well below our
pre-pandemic projections over the medium term. This calamity is far from
overall, the countries now face the long ascent. The path is clouded with
extra ordinary uncertainty. Risks remain very high. These could be from ris-
ing bankruptcies and stretched valuation in financial markets. Many coun-
tries have been extremely vulnerable. The debt levels have increased because
of their fiscal response to the crisis and the heavy output and revenue losses.
(Georgieva, 2020)
he Path Ahead
T
Where the pandemic persists, it is critical to maintain life lines across the
economy. Tax deferrals, credit guarantees, and monetary accommodation
may be helpful to an extent. The whole matter could be put in a wider
perspective by quoting a blog by Ms. Gita Gopinath, chief economist,
IMF: “This is the worst crisis since the Great Depression and it will take
significant innovation on the policy front at both the national and interna-
tional levels to recover from the calamity” (Gopinath, 2020). The diver-
gence in income between advanced economies and developing economies
triggered by this pandemic is likely to worsen. We are upgrading our fore-
cast for advanced economies for 2020 to 5.8% followed by a rebound in
growth to 3.9% into 2021. For emerging markets and developing coun-
tries we have a downgrade with growth projected to −5.7% in 2020 and
then a 5% recovery in 2021. The crisis will leave a scar well into the
medium term as labor markets take time to heal, investment is held back
by uncertainty and balance sheet problems. Lost schooling will impair
human capital. The cumulative loss in output relative to the pre-pandemic
projected path is expected to grow from US $11 trillion in 2021 to $25
trillion in 2025.
World Bank
The COVID-19 pandemic would push 150 million people into extreme
poverty. Eighty-two percent of the extreme poor would be from middle-
income countries where the poverty line includes income from US $3.25
to $5.50 a day. Urban dwellers would be particularly affected.
1 THE IMPACT OF THE PANDEMIC 5
Amidst such widespread poverty, there are certain regions which suffer
more. This could be because of certain factors. A case in point is the
American Mid-West. A McKinsey study points out a particular case
as under.
Health and economic effects of COVID-19 are exacerbating inequali-
ties between people and places with low-income people either being in
high-contact essential jobs with greater health risks or are facing unem-
ployment. Low-wage earners (earning less than US $40,000 per year)
count for more than 80% of workers vulnerable to lay-offs, furloughs and
reduction in share of income. Equally worrisome is the share of women
and African Americans amongst the sufferers (Manyika et al., 2020).
In addition, we would also refer to the most likely economic conse-
quences that would follow. Such a list is somewhat hypothetical but rea-
sonably plausible.
• The permanence of losses will depend on how soon the losses are
brought under control. How deep will the scars be? In particular,
what will be the impact of unemployment, bad debts, increased pov-
erty and disruption of education?
• There is a likelihood of a vast number of businesses emerging heavily
burdened by debt and many would fail to emerge at all.
• Many economies could end up being smaller and their people poorer
than they otherwise would have been.
• Structural issues. Would we stop traveling for business or stop com-
muting to offices?
• How would we adjust to the virtual world?
• Would governments tend to be more interventionist? Would there
be a Build Back Better movement?
• Would the governments insist on low interest rates for its debts?
• When would fiscal deficits be reduced?
In 2020 (by the end of it) world economic outlook may be lower by about
8% – the biggest contraction since the World War. In the US, proportion of
Americans (25–54) in the work force fell below 70%, 1/6th of the young
6 V. C. JOSHI AND L. KULKARNI
people lost their job, 89% of the people are likely to be pushed into extreme
poverty. School closures may affect people for decades. In Europe 40 mil-
lion people were on government funded schemes. Public borrowing is
soaring. It would be around 132% of GDP. Central Banks have created
debts amounting to trillions of dollars.
Supply chain panic has left a lasting impression. The matter has assumed
importance as never before. Healthcare systems, trade wars, supply chain are
all in a melting pot. (Economist, 2020)
Part II
It is against this grim environment that we have to appreciate the various
steps taken by the governments. We briefly touch on the steps taken by the
Federal Reserve in the US and by the European Central Banks.
The Central Banks have adopted a policy of what could have been
described as utterly unconventional but now considered
“CONVENTIONAL”. “Do what it takes” is the new mantra. The Federal
Reserve has cut rates 164 times in 147 days!! The benchmark rate has
been slashed to zero. So has the European Central Bank. The EU has initi-
ated lending scheme for EU member countries.
Measures in India
In India, too there has been an action both by the government and the
Reserve Bank. The government extended guarantees for loans sanctioned
1 THE IMPACT OF THE PANDEMIC 7
Part III
Many bank officials have been informally discussing with us some of their
management issues. They have suggested that we should briefly touch on
the role of bank branches in times to come, the reduction in ATMs, use of
cards and digital operations.
In the same breath they also felt a need to have a sort of composite view
on COVID-19 developments. They realized that the work setup which
was modeled on the factory work (opening and leaving time being fixed)
was becoming anachronistic and that there was a need to change such
rigid operation including “business hours”. New norms for meetings are
in the offing and should be introduced. These are, of course, operational
details and would be soon sorted out.
But their major worry was regarding their views being solicited on
COVID-19 developments. This is quite a done thing. Somehow branch
managers are looked up to and many customers would like to have
their views.
The most important requirement of an official, be it a branch manager,
regional manager or someone still higher in the hierarchy, was to keep a
“cool head”. We are biologically wired to have a “stress response” (flight,
fight or freeze) in the face of volatile environment.
The leaders in the first instance must strictly observe the required rule
in respect of masks and social distancing. More important is the need for
integrative awareness of the changing reality in the world outside. For the
8 V. C. JOSHI AND L. KULKARNI
Impact on Staff
+ Travel Industry
+ Advances
Work Force
Impact on Trade COVID-19 Cushioning
Impact
Constant Monitoring:
Staff
Impact on Customers
Industry Outsourced Acvies
Bibliography
Francis, F. T. (2020, October 3). Encyclical Letter Fratelli Tutti of the Holy Father
Francis on Fraternity and Social Friendship. Retrieved from Vatican: http://
www.vatican.va/content/francesco/en/encyclicals/documents/papa-
francesco_20201003_enciclica-fratelli-tutti.html
Georgieva, K. (2020, October 8). The Long Ascent: Overcoming the Crisis and
Building a More Resilient Economy. Retrieved from IMF: https://www.imf.
org/en/News/Articles/2020/10/06/sp100620-the-long-ascent-overcoming-
the-crisis-and-building-a-more-resilient-economy
Gopinath, G. (2020, October 13). A Long, Uneven and Uncertain Ascent.
Retrieved from blogs.imf.org: https://blogs.imf.org/2020/10/13/a-
long-uneven-and-uncertain-ascent/
Manyika, J., Pinkus, G., & Tuin, M. (2020, November 12). Rethinking the Future
of American Capitalism. Retrieved from McKinsey Global Institute: https://
www.mckinsey.com/featured-i nsights/long-t erm-c apitalism/rethinking-
the-future-of-american-capitalism#
The Economist. (2020, October 8). Changing Places. The Economist,
Special Edition. https://www.economist.com/special-report/2020/10/08/
changing-places
CHAPTER 2
We have in the first chapter attempted a review of the havoc caused by the
pandemic and efforts made by the Indian authorities to stem the tide. The
financial system had to bear an unimaginable burden. On the one hand,
the banks had to take steps (implementing various government schemes)
to revive economic activities and to ensure that economic losses were min-
imized. Additionally, they were also required to ensure that the average
customers’ need for banking services was met. Even with a meager staff
present, the banks did provide the services to see that the customers’ needs
were met. In the case of small and medium-sized enterprises, banks had to
ensure that the supply chains were restored, staff salaries were being made,
and gradually the amounts of receivables got reduced. In fact, this was a
heroic effort to keep the wheels of commerce and industry churning.
The branches did carry out most of the tasks assigned to them. But
apart from the problems created, there were other weaknesses from which
the system was already suffering. Normally, we should have started our
review with an analysis of financial statements as at the end of 31st March
2020. However, in view of pandemic developments, many of the accounts
were revived though, in fact, they were in the defaulter category earlier.
We have therefore no option but to look at the balance sheets as of 31st
March 2019 to study the strengths and weaknesses of the system as it
existed then. The problems noticed then are still casting their long and
ominous shadows over the system.
A large number of bad loans were originated in the period 2006–2008 when
economic growth was strong and previous infrastructure projects such as
power plants etc. were completed on time and within the budget. It is at
such times that banks make mistakes. They extrapolate growth and perfor-
mance to the future. So, they are willing to accept a higher leverage in proj-
ects and less promoter equity. Indeed, sometimes banks signed up to lend
based on project reports by the promoters’ investment, without doing their
own due diligence.
Source: Federation
causal analysis by the select committee can be seen in the right context.
Table 2.1 gives details about the NPA in banks and equally important are
details of the “provisions” (funds allocated from profits to cover up these).
Table 2.2 Source: RBI website and Lok Sabha questions and answers
2013–2014 2014–2015 2015–2016 2016–2017 2017–2018 2018–2019 2019–2020
Dr. Rajan aptly and very succinctly describes the causes as under. “At a time
when the economy was booming and business outlook was very positive,
large corporations were granted loans based on their growth and recent
performance. The corporations grew highly leveraged implying that most
financing was through borrowing rather than promotes equity”.
(Rajan, 2018)
• Over-optimism
• Slow growth
• Government permissions for certain work related to project and foot
dragging by authorities
• Loss of promoter and banks’ interest
• Frauds
• Malfeasance
• Diligence by bankers was poor
• RBI review of the credit portfolio left much to be desired
Source: Private circular from the Maharashtra State Bank Employees Federation
Commercial Banks
(including Regional Rural banks)
Insurance Companies
Source: Authors
one-time settlement. Dr. Rajan rightly says that “Bank loans in such a
system became equity, with a tough promoter enjoying the upside in good
times and forcing the banks to absorb losses in bad times, even while he
holds onto his equity” (Rajan, Speech, Issues in banking today, 2016).
The system had to be made far more effective. The steps taken were:
What actually has emerged is that some large corporates while had
assets were liquidated with adverse effect on workers and/or a few white-
collar employees. True it is that full evidence is not made available in the
public domain. One is not in a position to evaluate the costs and/or the
benefits in that context.
The first case that was decided on by the National Company Law
Tribunal (NCLT), the lenders had to take a haircut of 94%. The number
of cases that have come to light is around 40.
One cannot but help remarking that IBC cannot be a cure for faulty
lending practices of banks and other financial institutions which have
resorted to reckless lending without due diligence and risk mapping to
tackle the situation when corporate borrowers default on the loans. One
has sadly to concur with the observation that IBC may be useful in curing
the symptoms but not the causes.
IBC can never be a panacea for solving all the NPA problems
(Nishank, 2019).
A slight deviation is called for. One would notice that during 2020
most of the PSBs have turned the corner and are showing profits in their
balance sheets. The Government of India has undertaken a massive sup-
port program to revive the economy. Many stressed accounts have now
been regularized and “provisions” made earlier have been reversed. The
result is that most of the banks are no longer in “red”.
The Reserve Bank has advised banks to flag such accounts and to ensure
that under the new dispensation these accounts may be shown to be in
order. They are stressed accounts and have to be treated as such. Additional
“limits” sanctioned are of no consequence. These are the accounts which
could be described as “zombie”. In a slightly different category are
accounts which broadly be described as stand still, i.e. neither active nor
non-performing. (The operations temporarily discontinued.)
Leaving aside the “pandemic” special arrangements, we would turn to
some urgent measures proposed in the “Financial Stability Report –
2019”. The Financial Stability Board (FSB) Report has made a number of
suggestions and also referred to EU Banking Authority Standards. These
20 V. C. JOSHI AND L. KULKARNI
Macro Stress Test – They start with a baseline scenario and compare it
with assumed deterioration. One can critically review Tier 1 capital and
other capital ratios and see how the banks would withstand the change.
Sensitivity Analysis – The resilience is examined with respect to credit,
interest rate and liquidity risk. If top three borrowers failed to repay, there
2 STATE OF THE FINANCIAL SYSTEM: STRENGTHS AND WEAKNESSES 21
Conclusion
The situation is in a flux and major issues regarding role of banking, nature
of competition and social security are also coming to the fore. These will
have an important bearing on the ideas regarding stability and soundness
of banks. As shown in Chap. 1, the “do what it takes” policy and the
impact of this policy (providing monetary support on the required scale)
may last with us for years to come. And at this stage, one can only wait and
see till the future unfolds.
2 STATE OF THE FINANCIAL SYSTEM: STRENGTHS AND WEAKNESSES 23
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Whose Gain? Retrieved from cenfa.org: https://www.cenfa.org/national-
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CHAPTER 3
• Shrinking margins
• Underutilization of assets
• Non-availability of skilled manpower
• Lack of revenue growth/earnings
• Burden of non-performing assets
It is against this background that the industry has to build the sinews
and fibers to meet the challenges ahead.
In what follows, we discuss prevailing technology trends like big data,
cloud computing, AI and ML, and AR/VR, and how all of these tech-
nologies can be used by the banks.
Big Data
Financial institutions have one great asset and it would be the cause for
envy for many others (leaving aside Facebook, Google, etc.). It is not sur-
prising that this data bank has come to be known as “big data”. Very
often, there is a criticism that so called “big data” is not quantified. We do
not subscribe to the view that the concept is of little value because it is not
qualified or defined. We frankly do not subscribe to this view. For the sake
of argument let us look at the definition of the word “wind”. Wind is
defined as movement of air, but how much air or at what speed it should
move is not mentioned. Do these omissions affect our understanding
of wind?
3 SOCIO-POLITICAL AND TECHNOLOGY ASPECTS 27
We must also add the daily feed of Twitter, mail messages and
complaints.
It is essential that collection, dissemination and collation of data is an
important activity and must be assigned to specific groups.
We, however, do appreciate attempts at bringing about certain preci-
sion and turn to a paper aptly titled “Undefined by Data – Big Data
Definitions”. The term is widely used not merely by academics and indus-
try but by media, consultants, marketing people. The tech companies have
tried to define it by looking at the characteristics. Gartner defines it by
referring to volume, variety, and velocity. Oracle, on the other hand, states
that big data is the derivation of value from business data, augmented with
new structured data. On the other hand, Intel defines it with reference to
data created. It is linked to an organization which generates a median 300
terabytes weekly. Microsoft in its definition links it to serious computing
power used in machine learning, often highly complex set of information
(Ward & Baker, 2013).
It is obvious that these attempts are not fully satisfactory. We however
start with the argument that most readers are aware as to what we are
referring to. Any further quibbling and hair splitting would not throw
greater light on this. We are suggesting a very crude measuring rod. The
data analysis team should feel convinced that their requirements for deduc-
ing inferences are met and that analysts are convinced that what they are
dealing with is big data.
Prof. Nate Silver in his renowned work titled “Signal and Noise” has a
very illuminating comment on the subject – “Sheer numbers have no way
of speaking for themselves. We speak for them. We ascribe meaning to
them in self-serving ways that are detached from their objective reality”
28 V. C. JOSHI AND L. KULKARNI
(Silver, 2012). The failure of risk models in prediction of the crisis shows
how fragile such models are – part of the problem is we try to find mean-
ing where none exists.
If the quantity of information is increasing by 2.5 quintillion, the
amount of knowledge is certainly not increasing. There may be many
hypotheses to test, many data sets to mine, but a relatively constant
amount of truth. We can never make perfectly objective predictions; the
subjective biases can never be removed.
It is against this, that we should look at big data technology and what
it refers to. Basically, the following four aspects are covered in usage.
• Data storage
• Data processing arrangement
• Data management
• Data analytics
access to data, data granularity and variety. At this stage, we would turn to
another question that is frequently raised at seminars or at training ses-
sions. Most of the participants are intrigued by the question as to where
exactly does such data gets stored. What happens to the data stored
in cloud?
This data is stored at centers that are built in abandoned mines, beneath
the mountains, and even in underground caverns. Bunkers are becoming
prime spaces for retrofitting data centers. Bunkering data in disaster proof
subterranean centers designed to withstand category 5 hurricanes, electro-
magnetic pulses, and long-lasting storms are becoming increasingly com-
mon. Some organizations require their data to be triple replicated and
distributed in geographically dispersed facilities.
The consumer protection authority in the UK has suggested certain
agreements between the facility providers and their clients. Care has to be
taken to ensure that certain rights which the clients have (when your stor-
age facility is shifted), the client needs to know in advance. Cases of hack-
ing have also come to light and the agreement should be very specific
about the responsibilities of the parties concerned.
At a lecture in Bangalore in December 2016, the author was stopped
and asked to explain the connotation of term “orthogonal” data sets.
These sets are unstructured and could be even in the form of free text.
It must be stated that this data, apart from being used internally, can be
sold. In view of privacy rules, great care needs to be taken in undertaking
such transactions.
We now detail the areas where results from analysis could be of assis-
tance to the users in the organization.
• And lastly, a cultural shift to the data based objective decision making
has to be inculcated amongst the staff members and decision makers.
We must point out to the hurdles which might crop up and prevent the
organization from getting the vast benefits of data analysis. Many a time,
business goals are not clarified properly. One could be hampered by a
shortage of data analysts and operational staff may not quite realize the
difficulties in the use of techniques. There are a number of regulations to
ensure that data in respect of individual customers is very carefully pro-
tected. Important legal issues can come up and strict adherence to such
rules is an absolute must.
Cloud Computing
Despite its many forms, cloud computing services have three distinct char-
acteristics that differentiate them from traditional computing.
• Customers may (in practice) have a limited scope to tailor the service.
• Provider may move customer data with less visibility and control for
the owner.
• Provider may contract out part of the service provided, without the
customer’s knowledge.
3 SOCIO-POLITICAL AND TECHNOLOGY ASPECTS 33
"Anyway," Pierce went on, "the stewards are omnipotent, you know. So
a transfer was signed and attested, countersigned by the stewards, and a
wire was sent to Weatherby's. It was all in order, I can assure you, and quite
legal. Of course, it was too late to make any immediate announcement, so
the race had to go on as it was, Castor being ridden in Miss Armitage's
colours. But Castor is your horse, Mostyn; no one can dispute that, nor your
right to Anthony Royce's millions. I congratulate you a thousand times.
There, now I've told you everything."
It was when Pierce ceased speaking, and as Mostyn, his eyes fixed upon
Rada, could find no words to reply, that John Clithero stepped across the
room and took the girl's hand in his.
"Bless you for what you have done," he said. "My son has spoken to me
of you to-day, Miss Armitage—your name has been constantly on his lips.
He is afraid that he has offended you; but I don't think that he can have
done so, or you would not have sacrificed yourself for his sake. But I am
sure that he would like to hear you say he is forgiven, and that he will want
to thank you—alone."
He led the girl to Mostyn's bedside, then, followed by all the rest of the
party, stole out of the room.
* * * * * *
"Do you remember," Mostyn whispered, some time later, in Rada's ear,
when all had been explained between them and every difficulty smoothed
away, "do you remember, my darling, the terms of our wonderful wager
upon the coach last Derby Day?"
Rada needed no reflection. "I said I would wager my life that you would
never win a Derby," she murmured, "and I have lost."
"You staked your life, and I have won it," he replied. "That is a finer
thing than money. I am happy, Rada—so very happy! In a single day I have
won a big race—a huge fortune—and, best of all, your life—the life of the
girl I love."
His sound arm was resting on her shoulder. He drew her face to his, and
kissed her on the lips, and this time she did not repel him.
"Do you really love such a little vixen, such a little devil, as I?" she
asked wonderingly.
Smiling softly, she bent and obeyed. "This is better than winning a
Derby!" she sighed happily.
THE END.
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