Technological Challenges in Banking Operation Technological Challenges in Banking Operation

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Challenges Facing The Financial Services IndustryChallenges Facing The Financial Services Industry

• Globalization

• Consolidation

• The “Perfect Information Market”

• Increased Competition

• Regulatory Complexity

• Non-Traditional Players

• Rising Customer Expectations

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Changing Business EnvironmentChanging Business Environment

• Complex & highly inter-dependent products & services

• Information consistency

• Superior customer experience

• Differentiated banking products

• Multi-dimensional MIS & reporting

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Key Business Priorities for Financial InstitutionsKey Business Priorities for Financial Institutions

• Grow top line• Customer acquisition and retention• Rapid development & deployment of new products

Growth

Efficiency• Reduce operational costs• Reduce IT maintenance costs• Simplify business structures

Resilience• Responsiveness to rapidly changing market requirements• Reduce overall risk exposure• Compliance with all regulations

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Drivers For Change – Leveraging TechnologiesDrivers For Change – Leveraging Technologies

• SOA – Service Oriented Architecture• BPM – Business Process Management• Centralized Distribution Channels• Data Integration & Management

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Siloed approach & its consequenceSiloed approach & its consequence

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SOA will boost Bank’s competitivenessSOA will boost Bank’s competitiveness

Business Component

IdentityIdentity

Purpose

Interfaces

Business Component

IdentityIdentity

Purpose

Interfaces

SERVICE ORIENTED ARCHITECTURESERVICE ORIENTED ARCHITECTURE

• Reduced time to market• Lower cost for new product & service offerings• Modularity of the underlying business • Ability to deliver customer focused experience (consistency)• Flexibility & Interoperability• Simple and less expensive application maintenance• Reduced operational risk• Leveraged channel capabilities• Incremental deployment

• Reduced time to market• Lower cost for new product & service offerings• Modularity of the underlying business • Ability to deliver customer focused experience (consistency)• Flexibility & Interoperability• Simple and less expensive application maintenance• Reduced operational risk• Leveraged channel capabilities• Incremental deployment

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Model, simulate, automate, execute, monitor, and optimize end-to-end business processesModel, simulate, automate, execute, monitor, and optimize end-to-end business processes

Business Activity MonitoringBusiness Activity Monitoring

Business Rules EngineBusiness Rules Engine

Modeling & SimulationModeling & Simulation

Workflow & AutomationWorkflow & Automation

BUSINESS PROCESSES MANAGEMENTBUSINESS PROCESSES MANAGEMENT

SERVICE ORIENTED ARCHITECTURESERVICE ORIENTED ARCHITECTURE

ACCOUNT

OPENING

ACCOUNT

OPENING

LOAN

ORIGINATION

LOAN

ORIGINATIONRISK

MANAGEMENT

RISK

MANAGEMENT

CUSTOMER

ACQUISITION

CUSTOMER

ACQUISITION

Core Banking Transaction ProcessingCore Banking Transaction Processing

BUSINESS PROCESS MANAGEMENTBUSINESS PROCESS MANAGEMENT

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Channel neutralityChannel neutrality

CHANNEL CENTRIC BUSINESS MODEL

ATM

Branch

Mobile

FRONT END PRODUCTS BACK END

PRODUCT -A

PRODUCT -B

PRODUCT -C

Call Center

SILO

S

SILO

S

SILO

S

Problems & issues surrounding the delivery channels today..

Internet

PRODUCT -A

PRODUCT -CPRODUCT -B

PRODUCT -C

Front End PRODUCTS Back End

CHANNEL NEUTRALITY!

A channel neutral business model..

CH

AN

NE

L IN

FR

AS

TR

UC

TU

RE

ATM

Branch

Mobile

Call Center

Internet

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Data Integration & ManagementData Integration & Management

Problems & issues surrounding the data today.. A technology perspective

Inflexible architecture

Data quality

Proliferation of data marts

Data silos

Costly implementations

Failed projects

FINCRM

Retail Banking

Corporate Banking

Legacy System

InvestmetBanking

DATA FRAGMENTATION

DWH DWH DWH

DWH DWH DWH

BI BI BI

BI BI BI

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Data Integration & ManagementData Integration & Management

•Data integration strategy..

•FIN•CRM•Legacy •System

•External •System

•C/S Core •System •HR

•DATA INTEGRATOR

•OPERATIONAL •DATA

•META •DATA

•ANALYTICAL •DATA

•MART BUILDER

•DWH creation

•DWH

•DWH •management

•Data Marts•DM •DM •DM

•CUSTOMER ANALYTICS •CUSTOMER INSIGHTS•CRM•RISK MANAGEMENT •PROFITABILITY

•BI •BI •BI •BI Solutions

Thank YouThank You