Banking Trends - Successful together with SAP

Transcription

1 Banking Trends - Successful together with SAP Thomas Buizinga, Global Head of SAP Core Banking SAP Banking Summit, Moscow, Nov. 2014

2 Global Banking Specific Trends Customer Centricity in a Multi-channel Environment Costs & Complexity Take Out Global Standardization / M&A Risk Mitigation Regulatory Compliance 2014 SAP SE or an SAP affiliate company. All rights reserved. Public 3

3 IT Mega Trends Mobility Big Data Cloud Social Media Smartphones outsell PCs In the US, there are now more mobile devices than people (327 million vs. 310 million) Data volume doubles every 18 months, with 85% of that data contained in business domains cloud services More than 1.3 billion people access social networks Facebook overtakes Google as the most visited Web site Consumerization of IT 2014 SAP SE or an SAP affiliate company. All rights reserved. Public 4

4 and Market Challenges Kaushik Basu, Senior Vice President and Chief Economist World Bank: now is the time to prepare for the next crisis." 2014 SAP SE or an SAP affiliate company. All rights reserved. Public 5

5 The best time to prepare yourself as a bank Start Bild Rennen 2014 SAP SE or an SAP affiliate company. All rights reserved. Public 6

6 Customer 360 How to know your customer treating a customer as an individual and partner Social CRM & Sentiment Analysis Multi-Channel CUSTOMER Loyalty MARKETING Mobile Online Branch Channel Contact Center SERVICE Real-Time Offer Management SALES Flexible Product Bundling & Pricing ANALYTICS End-to-end, Core Banking Processes Customer Insight Powered by SAP HANA 2014 SAP SE or an SAP affiliate company. All rights reserved. Public 7

7 National Bank of Canada*: Cutting Mortgage Adjudication Time by 70% with SAP CRM Company National Bank of Canada Headquarters Montreal, Quebec Industry Banking Products and Services Commercial and retail banking and financial services Employees 20,000 Revenue CAD 5.3 billion (USD 5.06 billion) Web Site The company s top objectives Create the ultimate customer experience in terms of simplicity and value delivered Improve advisor efficiency by standardizing, simplifying, and automating mortgage process activities Fulfill initial customer needs and then cross-sell and up-sell additional products The resolution Built a customer experience matrix covering 20 business scenarios for evaluating applications Selected and implemented the SAP Customer Relationship Management (SAP CRM) application Changed business processes to match SAP software best practices The key benefits Freed advisors to spend more time understanding customer needs Enhanced customer satisfaction Increased customer retention and revenues -70% Time to adjudicate a customer s loan request -50% Mortgage origination costs >4 Additional products typically up-sold to mortgage buyers Partners Accenture, SAP Services organization With SAP CRM we demystified our siloed areas and integrated our processes through all our channels and lines of business. It gave us a foundation for growing the business. Paolo Pizzuto, Senior Vice President of Business Process Reengineering, National Bank of Canada * Preliminary Presented at Sapphire 2013 Customer 2014 SAP SE or an SAP affiliate company. CMP27028 All rights reserved. (13/08) Public 8

8 Standard Bank Group Ltd. is the largest bank in South Africa Sales & Service + Mobile solutions AT A GLANCE 10 Minutes time needed to open a mobile account, down 64% 7,000 New mobile accounts opened daily 100,000 New loans opened monthly in loans centers Sybase Unwired Platform helps us integrate mobile banking apps with our existing SAP software. It provides a stable, scalable solution that will help us grow our core banking business. Willie Stegmann, Core Banking Transformation Executive, Standard Bank Group Ltd SAP SE or an SAP affiliate company. All rights reserved. Public 9

9 Industrialization = Standardization + Agility Deposits Loans Leasing Payments Funding 2014 SAP SE or an SAP affiliate company. All rights reserved. Public 10

10 2014 SAP SE or an SAP affiliate company. All rights reserved. Public 11

11 4 Banks... More than 40 Products 1 System Powered by one SAP Platform! Deposits Management 2014 SAP SE or an SAP affiliate company. All rights reserved. Public 12

12 SAP Deposits Management An we recently received from one of our Customers just a short to share with you that on Jan 25th we implemented the remaining functionality of our transactional accounts. It was our intention to work only on a pilot branch until April 12 when the migration process should start. But our national government impulsively decided to change things and asked banks to put in place immediately a new account in US dollars with different taxes and restricted operations. The new regulation was released on Wednesday. That very same night we implemented the account on SAP. It went live on Thursday morning and by the end of Friday we had our first 1500 U$S accounts open on SAP!! And working perfectly well. Amazing time to market. We are very happy 2014 SAP SE or an SAP affiliate company. All rights reserved. Public 13

13 CBA gained sustainable competitive advantage Entire Infrastructure Change Roadmap before Internal Metrics after 23 Data Centers 2 Customer Impacting 48 Incidents/year 1 IT spend on 50% Innovation 75% 610 Products 18 Time-to-Market -75% Retail Banking Services External Metrics Source: CBA annual reports, analyst and approved project presentations; 2012 Operational Income AU$ 20B (~ 14B) Banking Home Loan 2014 SAP SE or an SAP affiliate company. All rights reserved. Public 14

14 COMPETITIVE ADVANTAGE Move Decision Making from sense & respond to predict & act Sense & Respond Predict & Act Optimization Predictive Modeling What is the best that could happen? Raw Data Cleaned Data Standard Reports Ad Hoc Reports & OLAP Generic Predictive Analytics What happened? What are the patterns? What will happen? ANALYTICS MATURITY 2014 SAP SE or an SAP affiliate company. All rights reserved. Public 15

15 SAP is transforming the Office of the CFO and CRO 2014 SAP SE or an SAP affiliate company. All rights reserved. Public 16

16 Consolidating Accounting in a Single Subledger with SAP Accounting for Financial Instruments Company DZ BANK Group Headquarters Frankfurt am Main, Germany Industry Banking Products and Services Retail banking, corporate banking, capital markets, and transaction banking Employees 28,962 (annual average in 2013) Assets 387 billion (as of December 31, 2013) Web Site Top objectives Calculate accounting for the German commercial code in parallel with International Financial Reporting Standards (IFRS) Centralize compliance with IFRS, the European Central Bank, the European Banking Authority, and local generally accepted accounting principles (GAAP) Cut costs with a uniform accounting process Resolution Deployed the SAP Accounting for Financial Instruments application as a central subledger with the SAP NetWeaver Business Warehouse application for a comprehensive product portfolio Gradually enabled compliance with IFRS, to be followed by European financial reporting regulations (FINREP) and local GAAP Key benefits Faster IFRS closing process Faster time to market for products, with a simpler accounting landscape Uniform processing for two accounting standards on a single deal level Faster, more cost-effective legal compliance and internal process changes 10 to 1 Consolidation of accounting platforms for IFRS compliance 15% Faster automatic monthly closing (from 13 to 11 days) 92% Fewer general ledger accounts, thanks to comprehensive accounting keys The timely implementation of SAP Accounting for Financial Instruments was a first but crucial landmark in the accounting strategy for DZ BANK. The flexible subledger scenario allows compliance with regulatory requirements on short notice. And integrating local GAAP and regulatory reporting will further enhance our banking IT platform. Harald Gomm and Thorsten Sauer, Group Heads of Group Finance, DZ BANK Group 2014 SAP SE or an SAP affiliate company. All rights reserved (14/03) This content is approved by the customer and may not be altered under any circumstances. Public 17

17 Nordea Real-Time Decision Making SAP HANA + Credit Risk Mgmt Nordea Largest financial services group in the Nordic & Baltic region 11 million customers, 9 home markets, more than 1,000 locations in total Challenge / Approach Respond to Financial regulation/rating agencies Implement new Information Mgmt strategy in Risk and Treasury area to support decision making Benefits Credit Risk Web Self-Service facilitates userfriendly exploration of complex data Credit Risk Mgmt can respond faster to changing reporting demands Improved capital efficiency HANA pilot: 5 x compression rate; Calculation time down from 2-5 minutes in Oracle to 4-15 seconds 2014 SAP SE or an SAP affiliate company. All rights reserved. Public 18

18 Simplification of Consumption Banking in the Cloud 2014 SAP SE or an SAP affiliate company. All rights reserved. Public 19

19 With the right strategy + a great team 2014 SAP SE or an SAP affiliate company. All rights reserved. Public 20

20 Thank You! Thomas Buizinga Global Head of SAP Core Banking SAP AG Dietmar-Hopp-Allee Walldorf, Germany 2014 SAP AG or an SAP affiliate company. All rights reserved.