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Pal Ribarics – EU Enlargement

Countries Solition Team, Financial Services

Mobil : +36 309 712 028

[email protected]

Agenda

� Data warehouse definition� Business drivers in financial services� DW architecture� Banking data model� Case study : typical functionality� Oracle’s DW technology� Competitive landscape

DatawarehousesDefinition

DatawarehousesDefinition

Datawarehouses

� One of the greatest assets of an organization is the informationthat it gathers in the course of its day-to-day operations.

� Unfortunately, much of this information is inaccessible, buried in disparate legacy data systems.

� Data warehousing is the process of extracting data from operational systems and other sources, transforming it to a consistent format, and making that data accessible to business analysts.

To support the strategic business goals of the Bank

Increase Sales• Cross selling, up selling

• Effective marketing

• Customer acquisition, prevent churn

• Performance incentives

Decrease Costs• Efficient focused marketing

• Identified inactive customers

• Optimized channel management

Competitive edge• Improved customer care

• Proactive, fast product development

Analyse all internal and external datasources !

Why operative systems can not be used directly ?

Subject orientedIntegratedStableHistoricalBusiness decision support

Application orientedIntegration is limitedContinously changingOnly actual dataSupports daily operation

Transaction data Information data

Transaction and information data are basicaly different

Lineage

• Long and complex implementation • Escalating maintenance costs• Poor and incomplete solution

Query & Analysis

Name/AddressScrubbing

ETLTool

TransformationEngine

MiningEngine

DatabaseDatabase

OLAPEngine

Analytic Apps

ReportingEngine

EnterpriseReporting

Portal

ETL Tool

TransformationEngine

A common problem –Non Cohesive Information Architecture

The solution : Datawarehouse

Marketing

Sales

Finance

Data Warehouse

OperationalSystems

DiscovererDiscoverer

ReportsReports

PortalPortal

DatawarehousesArchitecture

DatawarehousesArchitecture

Data warehouse layers and processes

Core banking systems Equation Transact AM Arksys

KHB Data Warehouse

CRMRisk Marke-

tingFinan-

ce

Data warehouseof the Bank

Datamarts

Applications(analysis, forecasts, reports)

Campaign plan

Campaign anal.Data mining Reports …………….

Business functionse.g. :

Campaignmgmt.

Salessupport

Basel IIanalytics

Iker Zeus

Logical data model

Data cleaning and validation, transformation, load Data cleaning and validation, transformation, load

….

ETL tools

MIS

Data warehouse layers and processes I.


KHB Data Warehouse

CRMRisk Marke-

tingFinan-ce


Datamarts


Campaign plan



Campaignmgmt.

Salessupport

Basel IIanalytics

Iker Zeus

Logical data model


….

ETL tools

MIS

Data extraction, load and validation

These programs perform data extraction and validation for the data warehouse. Rule based systems monitor, audit and correct data during the transfer. Core banking systems on different technology platform can be accessed and mapped by Oracle Data Warehouse Builder.

Data warehouse layers and processes II.


KHB Data Warehouse

CRMRisk Marke-

tingFinan-ce


Datamarts


Campaign plan



Campaignmgmt.

Salessupport

Basel IIanalytics

Iker Zeus

Logical data model


….

ETL tools

MISData warehouse

Historical database optimized for load and redundancy free storage. Contains the transactions of the core banking systems and the aggregates from these (client, account, product, contract) and external data sources. It is based on a logical data model.

Data warehouse layers and processes III.


KHB Data Warehouse

CRMRisk Marke-

tingFinan-

ce


Datamarts


Campaign plan



Campaignmgmt.

Salessupport

Basel IIanalytics

Iker Zeus

Logical data model


….

ETL tools

MIS

Datamarts:

Database optimized for queries and analysis for a given user group or analytical domain. Mostly aggregated data in star schema. Added to the system according to the actual needs.

Data warehouse layers and processes IV.


KHB Data Warehouse

CRMRisk Marke-

tingFinan-ce


Datamarts


Campaign plan



Campaignmgmt.

Salessupport

Basel IIanalytics

Iker Zeus

Logical data model


….

ETL tools

MIS

Applications and reports:

Analytical applications or reports which get their data from the data warehouse or from the datamarts. User interfaces to the business functionalities.

Data warehouse layers and processes V.


KHB Data Warehouse

CRMRisk Marke-

tingFinan-ce


Datamarts


Campaign plan



Campaignmgmt.

Salessupport

Basel IIanalytics

Iker Zeus

Logical data model


….

ETL tools

MIS

DatawarehousesLogical datamodelDatawarehouses

Logical datamodel

Logical datamodel – plan to build a data warehouse

The datamodel is strongly linked to the business functionality

� Save time and money by building on years of experience

� Defines data attributes required for management information across the enterprise

� Introduces data consistency across the organisation

Banking Data Model – Benefits

Oracle’s Banking Data Model

Client

Contract & account

Organisation Transactions

Balances

ChannelProduct

Client event

Campaign

DatawarehousesSample business

functionality

DatawarehousesSample business

functionality

Which products, services provide value to whom ?Whom to offer which product, service, ... ?Which channels should be offered / used ?

When should you make your offer / contact ?Whom can you offer which discounts, rewards, service levels ?

Who will most likely churn, respond, buy, ... ?How to interact with Customers (agent, web, ..) ?

What is analytical CRM ?Understand customer needs, value

identify using/buying pattern & trends discover causal relationships

Refine strategies for customer acquisition, service, growth and retention React timely to changed customer behavior and new market conditions

CRM analytics support decisions for questions like:

CRM analytics enables you to:

DW based business applications


Core banking systems


Analitical CRMAnalitical CRM• Portfolio analysis• Customer value• Cross sell• Geographical segmentation• Demographical segmentation• Customer value segmentation

• Portfolio analysis• Customer value• Cross sell• Geographical segmentation• Demographical segmentation• Customer value segmentation

Operatíve CRMOperatíve CRM

ReportingReporting• Ad-hoc and standard reports• Portal• Ad-hoc and standard reports• Portal

Controlling Controlling

Risk managementRisk managementBasel II. data collectionBasel II. data collection

Küls� adatkörök

•Equation – accounts

•Transact – retail customer rating

•AM – corporate rating

•IKER – card applic.

•Arksys – credit cards

• Supershop

•Collateral system

•Aloé – prospects

•SAP – Gen. Ledger






• Supershop




Bels� forrásrendszerek

DW infrastructureDW infrastructureBanking DatamodelBanking Datamodel

Data processes• Data extraction, transfer, verification and

load - ETL• Aggregation• Existing processes:

• Data cleaning• Coding, recoding• Allocations




Operation processes• Archive, restore, storage mgmt.• Data processing and monitoring• Access rights, security


Transactional Datamodel


DatamartsDatamarts

Cutomer relationship data


Basel II. Data architecture


ControllingControlling

OtherOther





Analitical CRMAnalitical CRM• Portfolio analysis• Customer value• Cross sell• Geographical segmentation• Demographical segmentation• Customer value segmentation• Churn analysis• Behaviour segmentation• Affinity models• Life-time value• Data mining

• Portfolio analysis• Customer value• Cross sell• Geographical segmentation• Demographical segmentation• Customer value segmentation• Churn analysis• Behaviour segmentation• Affinity models• Life-time value• Data mining

Operatíve CRMOperatíve CRM• Complete campaign management• Event triggered campaigns• Feedback to core bankin systems

• Complete campaign management• Event triggered campaigns• Feedback to core bankin systems

ReportingReporting• Ad-hoc and standard reports• Portal• Regulatory reporting (Basel 2)

• Ad-hoc and standard reports• Portal• Regulatory reporting (Basel 2)

Controlling Controlling • Transfer pricing• Account level cost allocations• Customer profitability• Product profitability• Process efficiency

• Transfer pricing• Account level cost allocations• Customer profitability• Product profitability• Process efficiency

Risk managementRisk managementBasel II. data collectionBasel II. Risk reporting and analysis• Credit and operation risk• Interest rate risk

Basel II. data collectionBasel II. Risk reporting and analysis• Credit and operation risk• Interest rate risk







• Supershop




•EBA – cash transactions

•MUREX – treasury, derivatives, trading

•ZEUS – security accounts

•SAP – costs

•Leasing, Pension fund, Life insurance, Broker

•IQFMS – custody, funds






• Supershop







•SAP – costs













DatamartsDatamarts






OtherOther







Analitical CRMAnalitical CRM• Portfolio analysis• Customer value• Cross sell• Geographical segmentation• Demographical segmentation• Customer value segmentation• Churn analysis• Behaviour segmentation• Affinity models• Life-time value• Data mining

• Portfolio analysis• Customer value• Cross sell• Geographical segmentation• Demographical segmentation• Customer value segmentation• Churn analysis• Behaviour segmentation• Affinity models• Life-time value• Data mining

Operatíve CRMOperatíve CRM• Complete campaign management• Event triggered campaigns• Feedback to core bankin systems

• Complete campaign management• Event triggered campaigns• Feedback to core bankin systems

ReportingReporting• Ad-hoc and standard reports• Portal• Regulatory reporting (Basel 2)

• Ad-hoc and standard reports• Portal• Regulatory reporting (Basel 2)

Controlling Controlling • Transfer pricing• Account level cost allocations• Customer profitability• Product profitability• Process efficiency

• Transfer pricing• Account level cost allocations• Customer profitability• Product profitability• Process efficiency

Risk managementRisk managementBasel II. data collectionBasel II. Risk reporting and analysis• Credit and operation risk• Interest rate risk

Basel II. data collectionBasel II. Risk reporting and analysis• Credit and operation risk• Interest rate risk







• Supershop







•SAP – costs








• Supershop







•SAP – costs













DatamartsDatamarts






OtherOther

Datamining OptionDatamining OptionDatamining Option

Customer OnlineCustomer OnlineCustomer Online

Sales OnlineSales OnlineSales Online

Performance AnalyzerPerformance AnalyzerPerformance Analyzer

Transfer PricingTransfer PricingTransfer Pricing

Risk ManagerRiskRisk ManagerManager

Basel II Risk EngineBasel II Risk EngineBasel II Risk Engine

APPLICATIONSAPPLICATIONS



Oracle’sDatawarehouse

Technology

Oracle’sDatawarehouse

Technology

The Old Way:Fragmented Information Supply Chain

Data Data WarehouseWarehouse

EngineEngine

DataIntegrationEngine

OLAPEngine

MiningEngine

• Long implementation and maintenance cycle– Synchronization and integration issues– Administration costs– Management chaos

� The Wrong Answer– Inconsistent copies of information– Much of it inaccessible to your applications

� At the Wrong Time– It takes too long to produce the information you want

The Wrong Architecture Yields

Business Intelligence with OracleSingle, Integrated Business Intelligence Engine

• Reduced Complexity & Deployment Costs

Data Warehousing

ETL

OLAP

Data Mining

Oracle9Oracle9iiDBDB • Consistency• Collaboration• Accuracy• Scalability• Security• Ease of Development

OLAP & SQL Analytics

Data Mining

ETL

Faster Deployment of Complete Solutions

Discoverer &

Reports

Warehouse B

uilder

Personalization

Jdeveloper&

BI Beans

PORTAL

Business Intelligence with OracleReduced Complexity and Deployment Costs

Oracle 7.3Oracle 7.3

Continous Innovation

� Partitioned Tables and Indexes� Partition Pruning� Parallel Index Scans� Parallel Insert, Update, Delete� Parallel Bitmap Star Query� Parallel ANALYZE� Parallel Constraint Enabling� Server Managed Backup/Recovery� Point-in-Time Recovery

� Partitioned Tables and Indexes� Partition Pruning� Parallel Index Scans� Parallel Insert, Update, Delete� Parallel Bitmap Star Query� Parallel ANALYZE� Parallel Constraint Enabling� Server Managed Backup/Recovery� Point-in-Time Recovery

Oracle 8.0Oracle 8.0

� Hash and Composite Partitioning� Resource Manager� Progress Monitor� Adaptive Parallel Query� Server-based Analytic Functions� Materialized Views� Transportable Tablespaces� Direct Loader API� Functional Indexes� Partition-wise Joins� Security Enhancements

� Hash and Composite Partitioning� Resource Manager� Progress Monitor� Adaptive Parallel Query� Server-based Analytic Functions� Materialized Views� Transportable Tablespaces� Direct Loader API� Functional Indexes� Partition-wise Joins� Security Enhancements

Oracle9iOracle9i

� List and Range-List Partitioning� Table Compression� Bitmap Join Index� Self-Tuning Runtime Memory � New Analytic Functions� Grouping Sets� External Tables� MERGE� Multi-Table Insert� Proactive Query Governing� System Managed Undo

� List and Range-List Partitioning� Table Compression� Bitmap Join Index� Self-Tuning Runtime Memory � New Analytic Functions� Grouping Sets� External Tables� MERGE� Multi-Table Insert� Proactive Query Governing� System Managed Undo

Oracle8iOracle8i

Oracle10gOracle10g� Self-tuning SQL Optimization� SQL Access Advisor� Automatic Storage Manager� Self-tuning Memory� Change Data Capture� SQL Models� SQL Frequent Itemsets� SQL Partition Outer Joins� Statistical functions� and much more ...

� Self-tuning SQL Optimization� SQL Access Advisor� Automatic Storage Manager� Self-tuning Memory� Change Data Capture� SQL Models� SQL Frequent Itemsets� SQL Partition Outer Joins� Statistical functions� and much more ...

Oracle9i -Oracle Warehouse Builder Option

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Oracle9i

• Relational• Files• Legacy• Applications

Automates Design & Deployment

Competitive LandscapeCompetitive Landscape

Experts Agree: Oracle BI Ranks #1

� Forrester– Techrankings

� Intelligent Enterprise– Annual Strategic

Assessment Guide

The Most Complete BI Functionality

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Business Objects CongasMSFTIBMOracle

Ad-Hoc Query

Enterprise Reporting

Real-timePersonaliz.

Ent. JavaApp. Dev.*EnterprisePortal

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Hyperion

ETL

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ETL Tool

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Q U E S T I O N SQ U E S T I O N SA N S W E R SA N S W E R S

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