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Business IT Transformation - New Strategies & Goalposts

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Core Systems Change is Driven from Two Dimensions

Business Transformation IT Transformation

§ Replacement of legacy systems

§ Elimination of non-priority initiatives, duplicate systems

§ High performance and scalability

§ Implementation of agile, service-oriented architecture

§ Redefinition of business processes

§ Integration – from manufacturing to distribution

§ New business models

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Legacy IT architecture not ideally designed for today’s business

Inability to support new business models &

distribution strategies

Incomplete view of Customer

Inability to support new multi channel

engagement models

Sub Optimal Automation of Business

Processes

Business Complexity entrenched in system

silos

Protracted timelines for implementing new

capability

For many banks, technology has become a constraint rather than an enabler

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Oracle Views this in the Context of the Human-Technology Interplay

e-commerce

Voice, Video & Instant Messaging

Social Media

Mobility

Do It On Your Own Trends

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International Operations

Islamic Banks Fund & Transfer Agents

Domestic Core

There are 4 key Human’s in the Various Business Models

CUSTOMER

BANKER

OPERATIONS

IT

Reach I Time to market I New products I Right Pricing I Mobility

New Products I New Business Models I Staff Productivity

Centralization I STP I Security I Measurement & Control

Flexibility I Architecture I Performance I Scalability

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What will transformation mean for Banks Customers

§ Complete relationship view § Ability to bank on multiple

channels § Customized offers

§ Proactive insights based on predictive analytics

§ End-to-end transaction capability § Real-time offers based on location

& customer profile

NEW MEASUREMENT

CRITERIA

Traditional Goalposts New Goalposts

§ TIME SPENT AT ATM

§ TRANSACTION TIME ON THE INTERNET

§ NEW PRODUCT PURCHASE CYCLE TIME

§ RELEVANCE OF OFFERS

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What modern IT systems can do for Banks Customers

PERSONALIZED WEB EXPERIENCE

SELF-SERVICE CAPABILITIES

ASSISTED CHANNEL SUPPORT

SUPERIOR MOBILE BANKING

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What will transformation mean for Bankers

§ Faster transactions § Better customer service § Availability across channels

§ Focus on revenue oriented and high priority transactions

§ Maximize cross-sell & up-sell § Profitability across channels

NEW MEASUREMENT

CRITERIA

Traditional Goalposts New Goalposts

§ PREDICTIVE, SYSTEM-DRIVEN ACTION

§ OPERATIONS vs. SELLING TIME

§ CUSTOMER CHURN REDUCTION

§ PROFIT BY CHANNEL

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IMPROVED KNOWLEDGE WORKFORCE PRODUCTIVITY

INCREASED CROSS-SELL & UP-SELL

SEAMLESS INFORMATION MANAGEMENT ACROSS THE BANK

END-TO-END SERVICING CAPABILITIES

What modern IT systems can do for Bankers

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What will transformation mean for Operations staff

§ Reduce operational costs § Adhere to compliance § Provision for MIS & Regulatory

reporting § Reduce manual dependencies

§ Improve business performance § Framework to proactively manage

compliance & reporting § End-to-end business process

automation

NEW MEASUREMENT

CRITERIA

Traditional Goalposts New Goalposts

§ STP RATE

§ TIME SPENT IN REPORTING

§ MANUAL vs. AUTOMATED PROCESSES

§ REDUCTION IN MANUAL EFFORTS

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MEASURE & IMPROVE PERFORMANCE

MANAGE RISK & COMPLIANCE

COMPREHENSIVE SECURITY

REGULATORY COMPLIANCE & REPORTING

What modern IT systems can do for Banks Ops

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What will transformation mean for IT staff

§  IT cost reduction § Enable launch of new / modified

products § Software qualification on hardware § Minimize vendor dependency for

customization

§  Improve business value driven by IT § Faster time to market § Benchmarking for high performance § Future-proofed ‘do-it-yourself’

customization

NEW MEASUREMENT

CRITERIA

Traditional Goalposts New Goalposts

§ TIME TO MARKET OF NEW / MODIFIED PRODUCTS

§ AUTOMATED vs. MANUAL CUSTOMIZATION & TESTING EFFORTS

§ RESPONSE TIME & THROUGHPUT

§ INFRASTRUCTURE DOWNTIME

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OPEN DEVELOPMENT ENVIRONMENT

HARMONIZED SOLUTION

SUPERIOR PERFORMANCE

COMPLETE IT SECURITY

What modern IT systems can do for Banks IT Staff

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Leading Bank in UAE Significantly Reduces Transaction Response Time

COMPANY OVERVIEW •  Present across the UAE, Egypt, Qatar, Kuwait and Bahrain •  Aspiring to be a “Super Regional Bank” in the region & Among the best performing

banks in the region with an Asset base of USD 23 billion

SOLUTION •  Oracle FLEXCUBE

•  The Core Banking transformation program includes 5 countries – UAE (Domestic Business) & Qatar , Kuwait, Bahrain and Egypt.

•  Full service Universal Banking Model with wide variety of Consumer, SME & Corporate products & services

•  Aspiring to become the # 1 in the ME region by leveraging modern technology and particularly engaging with customers through modern channel delivery model

RESULTS Business Snapshot

BUSINESS SCOPE •  Personal Banking, Corporate Banking, Business Banking, Islamic Banking,

International Operations

•  UAE Business: 1 M Customers, 1.2 M Accounts & 1500 Users

•  Legacy system unable to meet the bank’s branch expansion objectives

•  System changes in legacy system for complying with KYC and Basel II required significant effort in development and testing

•  With more than 135 surviving applications and interfaces, enterprise integration became a big challenge with bank’s legacy system

•  The Oracle FLEXCUBE implementation integrated 135 applications on a single Core Banking platform and replaced 40 applications and within a 11 month period

CHALLENGES

APPROACH

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Leading Bank in UAE Replaced Legacy System to drive Transformation and Business Growth

KEY OUTCOMES

• Halved the response time for ATM Channel transactions. • Reduced response time by over 70% for internet banking fund transfer transactions. •  Internet banking new users signing up by 32% • Halved the time to market of new products, increasing the Bank’s competitive advantage • Branch and Account expansion: No limit to the number of branches and accounts • Easy integration through standard interfaces for internal & external systems • Enterprise consolidation: integrated 135 applications on a single Core Banking platform and

replaced 40 applications • New features to drive business growth – Islamic Banking, Inventory management, Loan

Syndication, Contract financing, Liquidity management, Advices, Payment templates, Standing Instructions and branding

•  Improved customer service: 360o view of portfolios & customer details

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Top Romanian Bank Meet High Performance Requirements

COMPANY OVERVIEW •  Bank incorporated in 1994 with Universal banking model and with operations in retail,

corporate and SME sectors •  Ranked #3 in Romania on the basis of asset size & Ranked #4 on the basis of network

size. •  Asset Size: US$ 5 Billion & Employees: 6000

SOLUTION •  Oracle FLEXCUBE Universal Banking, Siebel CRM, Oracle Weblogic, Exalogic &

Exadata,

RESULTS Business Snapshot

BUSINESS SCOPE •  Personal Banking, SME & Corporate Banking, Leasing, Factoring, Asset

Management & Cards

•  Existing system was unable to scale to meet growing customer demands

•  High performance & availability issues needed to be addressed

•  Operational and maintenance cost of IT systems was high

•  Existing system was inflexible to integrate with third party applications

•  Oracle FLEXCUBE was implemented on Oracle Exalogic & Exadata in a matter of 24 months to address the bank’s scalability and high performance requirements

CHALLENGES

APPROACH

•  3 Million Customers & 4 Million Accounts, 500 plus branches

•  Full service Universal Banking Model

•  Wide variety of Consumer, SME & Corporate products & services

•  Aspiring to become the # 1 in the Romanian Banking Market by leveraging modern technology

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KEY OUTCOMES

• All Channels are truly 24*7 leading to enhanced customer service • New core system enabled broader portfolio of products • Ability to offer right Products & Product Bundles to different Customer Segments, run

Product Campaigns, offer Preferential Pricing • Extended Banking hours enhanced customer servicing 6 AM to 10 PM for Branches • Real Time View of information relating to Operations & User Activity •  Improved operational efficiency with business process reengineering prior to

implementation • Significantly reduced implementation timeframe by leveraging extensive use of FLEXCUBE

Development Workbench for requirements which were not fully met out of the box • Enhanced the application’s capability to integrate with third party systems through

FLEXCUBE Gateway Web Services •  Improved compliance in areas of Accounting and National Bank Reporting

Top Romanian Bank benefits significantly from Core Banking Transformation

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