Banking Trends - Successful together with SAP

Banking Trends - Successful together with SAP

Thomas Buizinga, Global Head of SAP Core Banking

SAP Banking Summit, Moscow, Nov. 2014

© 2014 SAP SE or an SAP affiliate company. All rights reserved. 3 Public

Global Banking Specific Trends

Customer Centricity

in a Multi-channel Environment

Risk Mitigation

Regulatory Compliance

Costs & Complexity Take Out

Global Standardization / M&A


IT Mega Trends

Consumerization of IT

Mobility

• Smartphones

outsell PCs

• In the US, there are

now more mobile

devices than people

(327 million vs. 310

million)

Cloud

• cloud services

Social Media

• More than 1.3 billion

people access

social networks

• Facebook overtakes

Google as the most

visited Web site

Big Data

• Data volume doubles

every 18 months, with

85% of that data

contained in business

domains


…and Market Challenges …

Kaushik Basu, Senior Vice President and Chief Economist World Bank:

“…now is the time to prepare for the next crisis."


The best time to prepare yourself as a bank…

Start Bild Rennen


Customer 360 – How to know your customer treating a customer as an individual and partner

SERVICE MARKETING

SALES

Mobile

Powered by

SAP HANA

End-to-end,

Core Banking Processes

ANALYTICS

Online Branch

Channel

Contact

Center

CUSTOMER

Customer Insight

Loyalty

Flexible Product

Bundling & Pricing

Social CRM & Sentiment

Analysis Multi-Channel

Real-Time Offer

Management


National Bank of Canada*: Cutting Mortgage

Adjudication Time by 70% with SAP® CRM

CMP27028 (13/08)

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

www.nbc.ca

Partners

Accenture, SAP Services organization

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

“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

-70% Time to adjudicate a customer’s loan request

-50% Mortgage origination costs

>4 Additional products typically up-sold to mortgage buyers

Customer

* Preliminary – Presented at Sapphire 2013


Standard Bank Group Ltd. is the largest bank in South Africa Sales & Service + Mobile solutions

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.

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

AT A GLANCE


Industrialization = Standardization + Agility

Deposits

Loans

Leasing

Payments

Funding

…


4 Banks... 1 System… More than 40 Products…

Powered by one SAP Platform !

Deposits

Management

https://www.postbank.de/privatkunden/sparen.html

https://www.deutsche-bank.de/pfb/content/privatkunden/konto_passendes-konto-finden.html

https://www.norisbank.de/produkte/index.html

https://www.berliner-bank.de/pk-konto_karten-einstieg.html


SAP Deposits Management

just a short e-mail 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

An eMail we recently received from one of our Customers …


CBA gained “sustainable competitive advantage”

Source: CBA annual reports, analyst and approved project presentations; 2012 Operational Income AU$ 20B (~€14B)

Retail Banking Services

before

50%

23

48

75%

2

1

Data Centers

Customer Impacting

Incidents/year

IT spend on

Innovation

after

610 18 Products

∆ Time-to-Market -75%

Entire Infrastructure Change Roadmap Internal Metrics

External Metrics

Banking – Home Loan

../AAA all/CBA-HomeLoan.mp4


Move Decision Making from sense

& respond to predict & act

ANALYTICS MATURITY

CO

MP

ET

IT

IV

E

AD

VA

NTA

GE

Sense & Respond Predict & Act

Raw

Data

Cleaned

Data

Standard

Reports

Ad Hoc

Reports &

OLAP

Generic

Predictive

Analytics

Predictive

Modeling

Optimization

What happened?

What are the patterns?

What will happen?

What is the best that

could happen?


SAP is transforming the Office of the CFO and CRO


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

www.dzbank.de

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

“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

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

29773 (14/03) This content is approved by the customer and may not be altered under any circumstances.

http://www.dzbank.de/


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 user-

friendly 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


Simplification of Consumption – Banking in the Cloud


With the right strategy + a great team …

© 2014 SAP AG or an SAP affiliate company. All rights reserved.

Thank You !

Thomas Buizinga Global Head of SAP Core Banking

SAP AG Dietmar-Hopp-Allee 16

69190 Walldorf, Germany [email protected]

mailto:[email protected]

Banking Trends - Successful together with SAP

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