banking & financial services - hexaware · focus on retail banking - backbase –omni channel...
TRANSCRIPT
1www.hexaware.com | © Hexaware Technologies. All rights reserved.
Banking & Financial Services
2www.hexaware.com | © Hexaware Technologies. All rights reserved.
Buy Side Sell Side Retail & Corp BankingMarket
Enterprise Market
• Differentiated domain point solutions
• Targeted Sub-Vertical segments
• Challenger for horizontal services
Mid Market
• End-to-End Services
• Outcome and Innovation driven approach
• Management Attention
Full Service Offerings
Challenger Position
❖ Buy-Side: Investment Management, Asset Servicing,
Mutual Funds, Securitization, Wealth Management
❖ Retail & Corp Banks: Payments, Trade Finance,
Leasing, Mortgage, Private banks
Micro Vertical Specialization
❖ Enterprise Data Management to address
Compliance & regulatory requirements
❖ Fintech lead Automation / Digitalization /
Cloud Migration
Challenger Position
BFS - Our Market Positioning
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Financials
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❖ BFS has been the largest and fastest growing
vertical over 5 years
❖ 2019 has been the most challenging year thus far
❖ H1-2019 has been soft
❖ We will continue to grow marginally in H2, despite
client specific challenges
147
181
214
264
290
143 148
FY 14 FY 15 FY 16 FY 17 FY 18 H1 FY 18 H1 FY 19
CAGR: 19%
YOY: 4%
Performance Snapshot
Revenue ($Mn)
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Current Challenges and Road to Stable Growth
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❖ The euphoria around “Interest Rate” is gone and long digested
❖ ‘Internalization’ emerging as a big agenda for many clients
❖ Customer spend is cautious, local (agile/internal led) and business
centric. Many leadership changes in key accounts
❖ Unusually long gestation for deal closures and transitions
❖ Cloud & Digital Technologies are reaching mainstream
Market Conditions
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❖ H1 saw rampant slow down in client decision making and deal closures
❖ H2 – Most accounts, with the exception of couple, have made smart recovery and are back on robust growth track
❖ One of our top accounts is undergoing a severe stress that started in Q2 but will see maximum impact in Q3 through Q4.
It is expected to bottom out by end of Q4
– Budget overrun in a major program. Lack of new funding due to change of mandates & priorities
– Change in client strategy to alter their outsourcing ratio from 70% to 30%
– Hexaware continues to be rated highest in client satisfaction & performance
– Hexaware continues to win business with new groups of the client
❖ 2019 New client acquisition & pipeline is very healthy
❖ Expect growth in FY20
2019 – The year that’s been the most challenging
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❖ LIBOR Sunset & Transition
– Libor is linked to $350T of financial products. Millions of contracts to be rewritten, models to be adjusted,
validation and business assurance
– Financial institutes are expected to spend from $20M to $200M to operationalize the change
– Our target offerings – Impact Assessment, Contract re-do using AI/ML, Data Migration, Business Validation
❖ Operations Transformation in Capital Markets
❖ Focus on Retail Banking - Backbase – Omni Channel Digital Banking Platform (leveraging Mobiquity’s
existing partnership)
❖ Digitalization in Corporate Banking Space
– Digital Payments business, AML/KYC, Trade Finance areas going through large scale digitalization
– New Product competencies – nCino, SimCorp
❖ Enterprise Data Management & Data Governance – (Cloud driven framework to enable analytics)
Focus on Top Discontinuities that will drive our growth
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Exte
rna
l P
art
ies/
Inte
rnal s
yste
ms
Start
Corporate
action news and
notifications from
Data Providers
Op
era
tion
sC
A
Syste
ms
SWIFT MT568
from sub
custodians
Source validation
with SRM
Multiple sources
compared to crate
Golden Copy
Matched?Exception
Processing
CA in Case
Mgmt Tool
Determine Eligible
Holding and
Transactions
Holding to CA
system
Transactions to
Claims system
Voluntary CA?
For clients with
Holding, initiate
Mandatory CA
Claims
Processing for
unsettled
Transactions
Monitor and
Close Claims
End
Clie
nt,
Cou
nte
rpa
rty
Corporate Action
SystemClaims System
Notification to
Client for
Elective using
Fax, Swift, email
Mandatory CA
processing in
Corporate Action
system
Send out Claims
request to
Counterparties
Client gets Email
from Bank on
Voluntary CA
Counterparty
works with Bank
on Claims
Yes
No
Yes
No
Corporate Action
Notification from
DTC
Initiate Tax
Reclaim Process
Provide
Documentation
for Tax Reclaim
Internal Data feeds
from Source
Systems
Receivable /
Payable creation,
FX
Manual Intensive Process
• BOT with Rules engine to identify
Claims and send out email to
Counterparty with Claims request
• Workflow to manage and close Claims
• BOT to search for Holdings and Un
Settled trades using screen
scraping of Mainframe systems
• CHATBOT to interface with
Counterparty to respond to Claims
related queries
• OCR to read from images and PDF
• Translate to English
• Natural Language Processing to read
files into individual fields
• Machine Learn mapping to Corporate
Action type
• Predicting investor
elective using a 10 point
Machine
• Learning Model • Rules based workflow for Tax
Reclaim with CHATBOT to
address Investor queries
Automation in Capital Markets using Digitalization –
An Illustration using Corporate Actions process
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Offerings
• LOBs: Retail Banking, SMB Banking, Corp Banking, Wealth Management
• Channels: Self – Service & Assisted. Known for Self-service : Mobile & Web Banking
• Readily Deployable: Widgets, Micro Service Components for the LOBs
• Platform: Built on Open Sources Technologies
Market Share
Aligns with our strategy →
• Business: Leverage existing Mobiquity Partnership with Backbase. Target commercial business
banking, SMB banking areas which are lagging behind in terms of digital transformation
• Technology: Using CX, Micro Services, Security Technologies to drive digital transformations
in the Commercial Banks
• Competency Building: Easy to train the resources with Java Technologies background
The 2019 Ovum
Decision Matrix lists
Backbase as the
Ultimate Digital Banking
Platform Market Leader.
Why We Want
to focus
BackBase Omni- Channel Digital Banking Platform
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Innovative Services
Passionate Employees
Delighted Customers
Thank youwww.hexaware.com