[IBM] Ibm Banking Overview Final Version for FTU

8/6/2019 [IBM] Ibm Banking Overview Final Version for FTU

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2010 IBM Corporation

The IBM Banking Industry Framework

Accelerating Solutions for Smarter Banks

IBM Banking solutions Framework for FTU May 7th 2011

Aaron Axworthy

Director Financial Services Sector - Vietnam


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$1,264 trillion

The value of global assets3

will quadruple by 2025 calling on a vibrant globalfinancial system tointermediate and manage.

Half the world is unbanked.Just over half of worldsadult population do not useformal financial services tosave or borrow.2

2.5 billion

Growth in world GDP1 from2010 thru 2025 will put thecurrent crisis in context.

5.8% CAGR

1 - Nominal2 - http://financialaccess.org/sites/default/files/110109%20HalfUnbanked_0.pdf3 - Assets = deposits, equity and fixed income

Reasons to be optimistic

There is an extraordinary opportunity !


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A global system moves morethan $74T of money each day

A financial supply chain that ismassively interconnected andinterdependent

Public and private partnershipsare suboptimal cross-border andwithin borders

System requires 24/7 continuousflow of information

Rapid increase in types of dataentering financial system fromreal economy digitization

A criminal element that growsmore sophisticated

In total the system intermediatesthe needs of billions of people in190 countries in thousands oflanguages.

An adaptive systemevolving organically

Policy makers

Regulators Supervisors

Financialinstitutions

Compliance

Laws and

rules

Surveillance

and monitoring

Standards

Soundness

Stability

Dramatic forces changing the worlds most

complex system.


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Commercialbanking

Retailbanking

Corporatefinance

Assetmanagement

Custodyand agency

services

Sales andtrading

PaymentsProcessing

Anti-MoneyLaundering

ComplianceReporting

TradingSystems

GeneralLedger

AccountOpening

Customers

Partners

Regulators

ServiceProviders

Inflexible, complex operations and silod data

hinder progress in using data as a strategic asset


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IBM provides a comprehensive framework that

delivers accelerates solution deployment

The framework provides a banking-specific software platform with

Banking extensions and pre-built

solution accelerators to speeddeployment

Best practices and business- specificusage patterns to lower risk

Support for adoption of open andindustry standards

A choice of business applicationsfrom IBM business partners

An approach to align technology withbusiness needs

The framework gives you speed, flexibility

and choice in deploying solutions while

reducing cost and risk!

Integrated RiskManagement

CustomerCare andInsight

IntegrationOptimization

AnalyticsCollaboration

SecurityResiliency

Core BankingTransformation

Paymentsand

Securities

IBM Banking Industry Framework


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The framework delivers business value

Simplify your infrastructure, reducecosts, and enable growth throughinnovation

Enable integration of information andprocesses across the bank

Build an efficient technology roadmapthat you can adjust over time based onbusiness needs

Implement framework projects toaddress business problems across theenterprise

Drive a greater return on projectinvestment through asset re-use

Speed deployment of solutions


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Framework projects in four domains provide the

capabilities to address banking pain points





SecurityResiliency


Paymentsand

Securities

The core banking transformation domainallows you to modernize and renovate thelegacy applications that support core bankingfunctions while aligning with the changingneeds of the business

The customer care and insight domain helpsyou build a foundation for creating a singleview of the customer and enabling moreeffective and efficient sales and service

The integrated risk management domainsupports taking a holistic approach to

managing financial risk, financial crimes,operational and IT risk, and compliance

The payments and securities domain helpsyou progressively transform your paymentsoperations to become more flexible andefficient



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Choose from leading business partner

applications for your solutions

with 35+ IBM business partners inthe framework ecosystem

Proven integration between IBMframework middleware and industry-leading partner applicationsprovides

- Faster deployment

- Easier integration

- Lower cost of operations

= validated for solutions that leverage the IBM Banking Industry Framework for payments & securities


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Start simplifying and realizing benefits with a

framework project

select from 20 project areas across 4 framework domains





SecurityResiliency


Paymentsand

Securities

IT Foundation Transformation

Core Banking Process Agility

Core Banking Application

Modernization

SEPA Compliance

Corporate Services

SWIFTNet Modernization

Retail Payments

Payments Process Efficiency

Digital Payments Conversion

Financial Risk

Financial Crimes

Operational and IT Risk

Governance and Compliance

Customer Insight Optimization

Customer Information

OptimizationMulti-Channel Transformation

Sales Process Optimization

Service Process Optimization

Compliance Process Optimization

Marketing Process Optimization



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Core Banking Transformation

Transforming back office legacy systems

As banks seek to grow revenue andimprove operational efficiency throughproduct innovation, globalization, and

M&A activities, legacy back officesystems often become inhibitors

Mismatch between the horizontalbusiness processes and the verticalapplication silos leads to ever-increasing IT integration complexity

Heavily customized and inflexiblelegacy systems make it hard andexpensive to support regulatorychanges


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Core Banking Transformation Project Example

Example

Build new business service components & integrate with legacy, leveraging IBM ComponentBusiness modeling approach

Core Banking Process Agility Bundled Offerings Project

Needs to sell customized product and service bundles and manage the end-to-end lifecycle ofthe resulting contracts while maintaining legacy systems as-is.

9 to 18 month project Deliver revenue growth through SOA while leveraging legacy

Client issue

Benefits

Solution

Framework project

partners

Core banking workbench for model and business-driven development Information FrameWork (IFW) data models Business rules management Process choreography Enterprise service bus Master data management

Frameworktechnology

capabilities


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Payments and Securities

Banks need flexible and efficient operations

Commoditization of payments servicesresulting in shrinking returns

Need to specialize and innovate todrive revenue growth

Market harmonization across theglobal payments infrastructure drivesneed for integration with third parties

Increased merger, acquisition anddisposal activity has resulted inredundant operations

Sophisticated fraud and anti-moneylaundering activity drives need fortransparency and security


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Financial institutions are required to comply with Single Euro Payments Areamandates

2 to 9 month projects Standardization of processes, process efficiency, reduced cost and risk

3 Deploy an ISV-provided paymentsapplication

1 Build compliance intoexisting paymentsapplications

2 Renovate existingpaymentsapplications

Client issue

Benefits

Solution options

Framework project

partners

Banking process and data models Process choreography Application connectivity Message transformation to SEPA standards

XML message management to SEPA standards Accelerators for building a custom enterprise payments hub

Framework

technology

capabilities

MMMEuroDebit MTSGlobal Payplus Open Payments

Framework

Payments and Securities Project Example

SEPA Compliance


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Integrated Risk Management

Holistically manage risk across the enterprise

Banks need to:

Understand market and credit riskexposure across multiple silos

Secure all transactions and forms ofinteraction

Proactively prevent increasinglysophisticated internal and externalprohibited activities

Effectively manage detected events

Proactively manage internal andexternal potential risks

Understand and manage increasinglycomplex compliance requirements atoptimal cost


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Integrated Risk Management Project Example

Lack of trusted and integrated risk information makes it difficult to understand actual riskexposures facing the bank and also results in inaccurate reporting of exposures to regulatorybodies and executive management

More timely and better decision-making Improved accessibility to risk information across the enterprise

Reduced costs

Consolidate data to create a trusted and accessible source of information Apply analytics and business intelligence to generate enterprise risk reporting

Apply portal and collaboration technologies to give end users easy access to information

Client issue

Benefits

Solution

Framework project

partners

Data warehousing and master data management Common banking data models

Enterprise dashboards, scorecards, and reporting templates Alerts based on business events

Access via web, email, mobile Enhanced visualization capabilities from IBM Research

Framework

technologycapabilities

Financial Risk Risk Insight and Control Project


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Customer Care and Insight

Optimizing the customer experience

Consumers

Demand innovative and morecustomized products and services

Want a consistently high qualitycustomer experience across all touchpoints

Banks

Must be able to identify their mostprofitable customer relationships

Need an enterprise view of customerrelationships to optimize the customerexperience

Need to balance managing cost, risk,security and compliance with meetingcustomer needs


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Customer Care and Insight Project Example

Customer Information Optimization Customer Data Integration Project

Customer data is duplicated and spread across multiple silod databases, leadingto an inconsistent experience for customers dealing with the bank

Projects can be implemented in as little as 6 months Improved customer satisfaction and retention, reduced maintenance costs

Client issue

Benefits

Banking data warehouse models Data warehousing Master data management tools Reporting tools

Process choreography Implementation expertise

Framework

capabilities

Build an integrated data warehouse to create a consolidated customer profile

and enable customer-centric processingSolution


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Accelerating Solutions forSmarter Banks

Thank You

[IBM] Ibm Banking Overview Final Version for FTU

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