Banking Sector Prensentation
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Transcript of Banking Sector Prensentation
Business Process Transformation in Banks
BPM as an Essential Technology in Banking
Businesses are realising that there is no one way tosupport enterprise architecture. Regardless of theapproach, it must facilitate change. The key is tocreate, not the perfect or elegant architecture forthe moment, but the most adaptable architecturefor the future.”
Julie Short, Research Director, Gartner
Newgen Overview- Company Snapshot
1100+ installations
1 of 3 vendors to feature in
Gartner MQs for iBPMS,
ECM & CCM
58+ Countries
200+ Partners
1600+ Employees
150+ Banking
Customers
Globally
40+Patents
World’s largest DMS
deployment with 9 Billion docs processed
Excellent rating for Case
Management - Gartner
Investors
Offices
Singapore
USA • Florida• Washington DC
Canada
UK
UAE
India• New Delhi• Mumbai• Chennai• Bangalore
Industry Recognition
2012 Impact Report
2013 ECM Wave
2011 Wave report for DOCCM
2013 Global Software Leaders Report
2011 Market Share Report
2014 Critical Case Management Capabilities
2013 CCM MQ, IBPMS MQ
2013,2012, 2011,2010,2009 ECM MQ Report
2012 BPMS Market Update Report, 2010 BPM MQ
2011 Retail Loan Origination Vendor Landscape Report
Good Condition and
Low Risk
Flexible and cost effective
Emerging market’s top 100
software vendors
No 1 in India Content
Management Market
Top 3 value for money2011 BPM Decision Matrix
Very Large Installations
Comprehensive Case
Management
2012 ECM vendor evaluation Report
Our Global Installation Base
Asia
Indonesia ChinaSingapore Hong KongPhilippines IndiaMalaysia JapanPakistan Thailand
Europe
Austria Germany Cyprus Lithuania Czech SlovakiaDenmark UKFinland
Africa
Egypt NamibiaGhana NigeriaKenya South AfricaLibya TanzaniaMauritius
The Americas
USABermudaCaribbeanMexico
Oceania
Australia New Zealand
Middle East
Bahrain OmanQatar Saudi ArabiaJordan KuwaitUAE
Our Global Customer Relationships
Banking
&
Finance
Insurance
BPO & Shared
Services
Government
Storage in DMS
Content Capture
ProcessingReporting & Monitoring
Customer Communication
Archive
Indexing
Collaborative
Process Design
Technolog
y
Execution
Real Time
Dashboard
Leading Indicators
Record Classification
Retention & Disposition
Physical Tracking
Long Term
Preservatio
n
End Customers
Design templates
Designer
Flat
Files
Spoo
l
Multiple
Application
Inputs
ECM & BPM Product Suite
Customer Quotes
“We found the BPM platform very useful to align our
business processes. It will give us a flexibility to
amend the business process and improve them
further.”
"The BPM solution, OmniFlow Suite, from Newgen
has enabled us to centralize a large number of our
processes, resulting in leaner and efficient branches.
Branches have been able to focus on sales while the
processing activities are moved to centralized back
office in Mumbai. The Turn Around Time (TAT) has
been significantly reduced, leading to better customer
experience.”
"We would like to thank Newgen for being
instrumental in customizing and integrating the key
initiative of Document Imaging and Management
solution in Credit Operations at RAKBANK. This
enables the bank to be more effective in handling
critical security documentation of loan customers."-
"“We chose Newgen over others owing to the
company's Document Management and Workflow
capabilities.”
Customer/ Partner Quotes
"In Newgen, we have explored a partnership with a truly
customer focused, young and promising company that is
hungry for getting better. Dow Jones and Newgen, have
experienced many successes together for workflow automation
and control, we expect many more using their BPM tools and
Professional Services that have always delivered on time and
within budget. Newgen suite of products that I've interacted
with has tremendous potential and flexibility to ensure agility
and match the speed of business operations”
“… Built on IBM Web sphere Application Server Newgen’s solution is optimized to ease administration in a
scalable deployment environment, this core J2EE configuration delivers a secure, high-performance transaction
engine for dynamic applications…”
“…with the availability of solution on Red Hat Enterprise Linux, customers are ensured that they are not trapped
by the vendor’s proprietary lock-in but at the same time ensure robustness and scalability. Implementation on
Linux platform makes the customer winner all the way by adding stability and low cost of ownership…”
IBM on Newgen’s Linux-based Solution, Partnered Solutions Portfolio
"The Newgen BPM solution allows us to closely
monitor time frames, while efficiently handling
burgeoning growth in number and complexity of
customer requests. This has been possible due to the
system's close integration with all other insurance
applications.”
AREAS IN BANKING
A typical scenario of Front and Back office setup in a Bank
Core Banking
An Approach to Change the Future……
Enablers of Change
Creating Milestone all the Way
13
• LIC•200 million customers, 4
billion pages archived, 2000 branches
Scalability
• ADCB•230% ROI over a period of
1 year for Customer Acquisition Process
ROI
• CITIBANK•Pioneer in SSC
•100+ processes (e-Serve) deployment by Citigroup itself
Self Sufficiency
• Ecobank
• Integration across Geographies with different versions and across client systems.
Integration
• FIC•700+ branches automated
in 2 years; 40,000 loans per month
Rapid Deployment
• Mashreq bank•55 processes across LOBs
implemented in just 8 months including New Business, Trade Finance etc.
Solution Extendibility
Banking Domain Experience
Retail
A/c Opening & Maintenance
Term Deposit Services
Customer Services
Customer Request Mgmt
Locker/Custodial Services
PoS A/c Mgmt…
Payment & Settlement
Fund Transfer
Remittance
PDC Operations
Interest/Dividend Warrants
Inward & Outward Clearing
SWIFT Virtualization…
Lending & Mortgage
Loan Originating
Loan Underwriting
Loan Servicing
Early Warning System
Collection & Disputes
Loan Takeover Mgmt…
Organizational
Audit/OR Mgmt
Contracts Mgmt
Corporate Finance
Vendor Services
Asset Mgmt
HR Processes …
Corporate/ Commercial
LC Issuance & Amendment
Bills of Exchange
Shipment Credit
Bank Guarantee
Commercial Loans
Corp Term Loans/Limits…
Credit Card & Third Party
Wealth Mgmt & Depository
Security Trading
Credit Card Issuance
Credit Card Servicing
Bancassuance
Utility Bill Mgmt…
Retail Banking
Applications DriversA/c Opening & Maintenance
• Competition for Deposits • Revenue Growth
• Geographic Expansion • Diverse customers retention • New Customer Acquisition
• SPOC – for customers • Increased Service delivery
mechanisms - Anytime, Anywhere Banking
Term Deposit ServicesCustomer ServicesCustomer Request
MgmtLocker/Custodial
ServicesPoS A/c Mgmt…
Statements ArchivalCRM Image Enablement
statements consolidation and
distributionATM Statements
Processing
Payment and Settlement
Applications Drivers
Fund Transfer• SEPA Payments
• Maintain Earnings• Cross - Border Co-
ordination• Operational Efficiency
• Loss Mitigation • Open Standards
SWIFT Virtualization…
Forex Cheque Processing
Foreign Inward Remittances
Foreign Outward Remittances
Lending and Mortgage
Applications Drivers
Loan Originating
• Current Economic Environment
• Operational Efficiency• Risk Management• Protection from predatory Lending
Loan Underwriting
Loan ServicingEarly Warning
SystemCollection &
DisputesLoan Takeover
Mgmt
Image Enablement of
LoS
Loans Statements Archival
Loans Statement consolidation
Reconcilliation Module
Customer Query Resolution
CORPORATE / COMMERCIAL
Applications Drivers
Cheque Clearing Process
• Fraud Detection for banks with Multi Channels
• Competitive Threats• Changing Consumer
Preferences • Capital Preservation
• Improve key performance metrics reporting
Remittance PDC Operations
Interest/Dividend WarrantsInward & Outward Clearing
Cheque Archival
Cash Management ServiceCheque Collection/Bulk
PayOrdersLC Issuance & Amendment
Shipment Credit
Bank GuaranteeCommercial Loans
Term Lending
Capturing Documents at the point of sale
Adhoc Contracts generationAccounts statements
Archival AML on BRE
Solutions Across LOBs in Banking
Small Average Profits per Customer. As such retail banking business requires to be managed well .
The cost of acquiring new customers must be kept low. Modern non-branch sales channels are essential
Cross-selling of services needs to be high. Selling just one or two basic products is seldom sufficient
Credit decisions must be accurate, fast and cheap to take. Credit scoring is the way to meet these requirements
Service quality levels need to be satisfactory but costs must be kept low. Too much quality results in losses
Transaction processing must take advantage of economies-of-scale. Centralized processing is advantageous
Key Challenges in Retail Banking
20
Large Proportion Customers which are not contributing much to Bank’s profit or are loss making customers
Method to identify such customers based on individual account profitability
Up-selling to ensure either these customer use services of the bank or leave the bank
Moving un profitable debit card customers to credit cards
Shifting such customers to alternative channels such as Mobile, Internet and ATMs
Enforcing fees commission and charges.
Shifting overdraft customers to term loans or credit cards
Key Challenges in Retail Banking
21
Customer On Boarding at Branch
BRANCH OFFICES
Documents Check and Verfication
3
Collect Customer Information 1
Local Scanning
Central Scanning
Collect KYC Information 4
Exception Handling
KYC Rating process6
Account Activation7
Email Notification to customer
8
Disbursing other documents to customer
9
Core Bank Updation 10
Central Processing Office
Collect Documents2
Credit Bureau Check
5Verification Agencies
60% Reduction in A/c Opening TAT
“…OmniFlow Suite has resulted in leaner and efficient branches... The Turn Around
Time (TAT) has been significantly reduced, leading to better customer experience.” –
Richard Falco, Director
Challenges:
•First foray into retail banking worldwide
•Ambitious customer acquisition targets
•Long A/c Opening cycle
•Anticipating outsourcing for keeping costs down
•Time-consuming exception handling
•Tracking Physical Documents as per Central BankGuidelines
Processes Automated:
Account Opening, Maintenance and Closure for Savings Account, Current Account & FD
Outward Remittance
Standing Instructions Execution
TDS Process
Benefits:
Opens 1200 accounts/day through 10 branches
TAT improved from 8 days to 3 days
Better monitoring of Branch Activities
Outsourcing step allows automatic upload of bulk customer data
Masking of signature and mobile nos. for the outsourcing vendor
Exception handling TAT reduced by far
Operational risk mgmt via KYC
Winner of “Red Hat” Award
Corporate Lending
Key Challenges in Corporate Banking
25
Corporate and Commercial Credit is key contributor to bank’s profits and yet Corporate Credit Approval is least technology supported system in the Banks :
Paper Intensive
Collecting and Managing large data for review
Manual/Excel based Credit and Risk Analysis
Manual Creation of Credit Memorandum and manual circulation to decision makers for approval
Manual check on adherence to Bank and Central Bank credit policies/compliance
No Method to track TATs and SLAs
Key Challenges in Corporate Banking
Even after the Credit Sanction..
26
Manual Management of documentation
Manual Management of collaterals
Manual post disbursement covenant monitoring
Manual review & renewal
Manual records for call reports
Manual referral processes
In addition, credit managers also to grapple with :
Increased scrutiny by regulators
Additional Reporting Requirements
New Capital Responsibilities
BRANCH OFFICES
Documents Receipt/verification
1
Data Entry 2
Blacklist and Dedupe customer Check
3
Local Scanning of Docs.
Evaluation & Document Verification, Property appraisal
4
Exception Handling
Exception Handling
5
Aggregate Score calculation, Credit history verification, Deviations
6
Contract Preparation &Email Notification to customer
8
Loan booking ,Disbursement/Partial Disbursement, & Authorization
9
Arch ival in DMS10
Mortgage loan Process
Central Processing Office/Risk Dept
Parallel Processing of cases to reduce TAT and Processing Cost
7
Loans Automation – Key Benefits
“Core banking is transaction oriented, whereas Workflow Automation is people oriented, where
escalations through mail triggers, alarms and monitoring of people can be done in Real time”
• End to End automation of document intensive Loan processes , where users can see documents and data
on single screen.
• Inbuilt loan calculators / Score Cards for automated Credit risk assessment.
• Automated Identification of fraudulent cases during initiation and archival for future reference.
• Instant Loan summary template for review and approvals by senior management.
• Flexibility to change the processes as per Market requirements without any changes in Core application.
• Automatic routing of the cases to appropriate authority on the basis of applied loan limit.
• Mandatory document/Process check listing at the time of initiation to reduce the rejections.
• Extending the reach of the to DSA (Direct Sales Associate) for initiating the Loan approval
• Real time Monitoring/Escalations for SLA management.
Abu Dhabi Commercial Bank, UAE
• Business Case – Meeting Statutory Requirements
– Customer visits the Branch for opening an account or alternatively DSA can approach
prospect/customer for account opening.
– Capturing / Editing customer information and KYC information - account related details,
relationship between the new account and customers, operating instructions, account memo and
signature cropping.
– Generating requests for Cheque Books and Smart Debit Cards (SDC) in Core System.
– Generating handoff file and uploading status for welcome kit to be dispatched by courier
company.
– Integration with Core banking system to push customer information, customer signature and
account information
Leading bank in Dubai providing retail loan services across 43 branches.
Abu Dhabi Commercial Bank, UAE
•Deployment Details
•Oracle 9i
•Windows 2000-Advanced Server
•150 users
• Business Benefits
– Core system was developed long back and did
not have extensibility to capture new
information which was necessary for statutory
compliances and audits. This information is now
captured and managed in BPM
– Integration with Core banking and subsystems
like SDC System
– Availability of online images for verification
– Improved turn-around time
– Generating customer and account related forms
in PDF format through the captured information
Process Implemented
• Account Opening
• Account Maintenance
• Customer Maintenance
• Term Deposits
• New and Term Deposit Maintenance
• Trade Finance Processes
• LG (Letter of Guarantee) Issuance
• LG Amendments
• LG Correspondence
• LG Closure
Trade Finance
Trade Operations Emerging Challenges
What is impacting the Trade Operations market
Clients are looking forward to Bank’s help in streamlining the inefficiencies in supply chain wherever possible
Basel III will fundamentally affect the profitability of the trade business with in crease in capital reserve requirement
Productivity between efficient and inefficient trade ops in Banks is as high as 700 percent
Open account transactions now account for more than 80 percent of global trade reducing banks’ role to simply moving money between trading partners
Trade Operations - Solution Overview
BPM – How it works for TF Operations
• Import LC Issuance
• Import LC Amendment
• Import LC Cancellation
• Import Bills under Collection
• Realization of Import Bills
• Direct Import Bills
• Advance Import Bills
• Shipping Guarantee/ Delivery Order
Export LC Advising
Export Packing Credit
Packing Credit Cancellation
Export Bill Negotiation
Export Bill Collection
Export Collection Bill Realization
Advance against Collection Bills
Export Bills Free of Payment
Import LC Export LC
BPM automates all key International Trade Finance processes
BPM - How it Works for TF Operations
BPM automates all key International Trade Finance processes
• Inward Remittances – Export/Other than Export (By MT 103)
• Outward Remittances – Imports / Other than Imports (By FTT (Swift) / FDD)
• Inward Foreign Guarantees
• Outward Foreign Guarantees
• Invocation of Bank Guarantees
•Bank Guarantees (Domestic) –Issue/Amendment/Extension/Cancellation
• Forward Contract – Sales/Purchase –Booking/Utilization/Cancellation
35
FORWARD CONTRACTS
BANK GUARANTEESREMITTANCES
• Inland L/C –Opening/Amendment/Cancellation
• Bill Lodgment under Inland L/C -Collection/Discounting
• Realization of the Bills
• Inland Bills under Collection
• Realization of the same
• Intermediary Trade Bills
• Vendor Bill Financing
INLAND TRADE FINANCE
Sample TF Process: Import LC Issuance
36
Case Study – ICICI Bank
Challenges
• To provide high quality customer service to wide spread client base cost efficiently
• Difficulties in meeting regulatory and internal compliance in handling trade business
• Lot of paper intensive work leading to misplacing papers, delays in TAT etc
Processes Automated
• Trade Factory - over 60 processes are live
• Overall in bank = 14 processes + 60 processes in Trade factory
• Each application has 8 to 12 page and sometimes up to 1200 pages one trade
Benefits
• Meeting compliance and following the required guide line
• Work tacking and visibility
• Major reduction in TAT responding the customers
Solution features
• Omniflow, Omniscan, Omnidocs
• Total number of users - 10000+ named users
• Current Trade Users - 600,
• Expected Trade Users > 3500
• Current Daily Transactions - 400 Expected Daily Transactions - 6000
• 225 million documents archivedincluding millions of TF documents over 7 years
37
Trade Finance Experience - ICICI Bank
PROCESSES IMPLEMENTED
IMPORTS:
•Import Bill Realization Under LC
•Import Bill Lodgement under Collection Bills
•Advance Import Payments
•Import Bill Realization under Collection Bills
•Buyers Credit
•Suppliers Credit
•Buyers Direct Import Bills
•Import LC Issuance
•Import LC Amendment
•Import LC Cancellation
•Direct Import Bills
•Import Bill Lodgement Under LC
EXPORTS:
•Export Bills Collection
•Expot Bills Against Advance Remittance
•Export Bills Negotiation
•Export Packing Credit
•Outward Bills (LC / Non LC) Direct Discounting
•Outward Bills (LC / Non LC) Direct Discounting - Realization
•Outward Bills Under Collection (Non LC) - Lodgment
•Outward Bills Under Collection (Non LC) - Realization
•Export LC Advising
•Export Realization
Trade Finance Experience - ICICI Bank
PROCESSES IMPLEMENTED
INLAND TRADE FINANCE:
• Inland LC Issuance
•Inland LC Amendment
•Inland Bills Under LC - Lodgment
•Inland Bills Under Collection - Lodgment
•Inland Bills Under Collection - Realization
•Inland Bills Under LC - Realization
•Inland LC Advising
REMITTANCES:
• Outward Remittance – Lodgment
•Outward Remittance - Realization
•DD Cancellation
•Conversion from EEFC
BANK GUARANTEES:
• Domestic Bank Guarantee Issuance
•Domestic Bank Guarantee Amendment
•Domestic Bank Guarantee Cancellation
•Shipping Guarantee / Delivery Order
•Foreign Investment Bank Guarantee Issuance
•Foreign Bank Guarantee Issuance
•Foreign Bank Guarantee Amendment
•Foreign Bank Guarantee Cancellation
Solution Benefits & Value Addition
40
Reduction in Turnaround time due to removal of time lags introduced by activities such as
communication of shortcomings to customer and preparation of currency sale/purchase report for
rate inclusion.
Visibility of work to all the stakeholders, transparency of operations and easy tracking helps faster
resolution of discrepancy in applications.
Improvement of client satisfaction with the bank’s improved service levels.
Real- time view of Key Performance Indicators (KPI) helps the management to align the operations
with desired.
Flexibility of work allocation enables the efficient use of work force to cope up with work load in
peak hours.
Agility in process change due to market, product, regulation changes
Enable low volume branches for Trade Finance business
Product Suite
Solution Accelerators – Not just coded black box
42
Loan Prospecting and Pre screening
Credit Memorandum Document captureData capture
Underwriting & Credit Analysis
Scoring & Rating Risk Management,RAROC
Collaterals Documentation Disbursement
Classified CCMRestructuring
Review Renewal
Credit monitoring Account conduct Covenants
TODAdhoc approval
CollectionsNPL Management
Reports & DashboardsPortfolio MonitoringTAT & SLA.
Servicing Modules Release of securities Change in Pricing
But developed on framework enabling Bank to configure bank specific requirements
Document capture from multiple sources
Flexibility to change data attributes through Inbuilt Form Designer
Production scanning Mobile approvals
Facility to Configure and Change Business Rules.
Real time Configurations as per Market trends.
No Programming effort
Flexibility to Configure and change Business Processes.
Empower Business to control their Process.
Real time Process changes as per Market Dynamics
Real time Dashboards.
Configurable Business Reports through
intuitive Wizards Business Analytics Auto schedules of
Reports for Mgmt.
Out of Box adaptors for Core Apps
Integration through Web Services and Middle Ware
SOA for flexible Interfaces
Document capture Configurable Data
Configurable Rules through BRMS
Designing Business Process and Workflows
Business Activity Monitoring
Seamless Integration with Existing/Core Apps
Business Insights/KPIs Operational Reports
BA
M/
DA
SHB
OA
RD
S
Retail, SME and Corporate specific processes and workflows can be configured/designed in user friendly Process Modeler
44
Business Rules Management
45
Strong Rules
management and
hierarchy
definition for
applying these
rules
BAM - Visibility, Accountability and Improvements
Functional DashboardOperational Reports Investigative Dashboard
Integration Capabilities
Easy Integration with External Systems
48
Web Service
WebServices based
Integration
Messaging Based
Services
EJB Based Adaptors
DMS Archive Connector
ZapIn! New door to success….
Customer On Boarding in Field -ZapIn
Upload metadata and document images to back office in offline And
Capture Application forms and supporting documents . Documents compressed by at least 80%
Enter key metadata in the application form on tablet/ Smart phone
Engage with the customer in the field (such as malls) or premisesZapIn can also be used for customer on boarding in the branch
And save cost of scanners
Check status with external credit bureau online. Check application status at back office online
How ZapIn works
Application Form
Supporting Documents
Cloud
ZapIn Server
In-Premise or Cloud
Mobility Support: Customer On boarding
Data & Document Capture
ZapIn can also be a great tool for a large Bank
In case of branches which are not online or on low bandwidth , ZapIn is a goodalternative. It can also be used effectively in Agent Banking
1. Will reduce cost of deploying scanners at branches2. Can store data and documents in offline mode. The data and documents are
uploaded to central server whenever connectivity is established 3. Converts coloured image to black and white like a photocopy4. Uses Adaptive Binarization to ensure best quality legible B&W images5. Ensures Auto orientation in Imaging6. ZapIn application has auto cropping features for photos and signatures7. Business rules and validations built in application to increase FTR (First time right)8. ZapIn advanced imaging compresses image to a very small size. For example a
image of 600 kb is compressed to 30 kb which can easily travel on low bandwidth9. Application supported both on Android and iOS platforms10. Inbuilt strong security features11. Proven technology as very large banks in our other implementation are using it very
successfully
Why Newgen for Banks
54
Entire gamut of Business Process, Product & Tech Consulting
First-time right, tailored solution owing to our industry knowledge
Fastest implementation cycles in the industry
Complete ownership of the deployment
India Delivery advantage passed on to you
Flexible licensing to suit the enterprise needs
Operational integration of distributed branches and Central location
Distributed capture of Documents and Bandwidth Optimization
Last mile integration, partnership with other core banking players
One-stop shop for Worflow and Document Mgmt products
Highly focused on leading edge product development
Support for mission critical processes across multiple locations
24 x 7, reliable support for your organization
Comprehensive Product Range
Domain Knowledge
Enterprise- wide Solution
Rapid Deployment
Value for Money
Mission Critical Process Support
Thanks