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Symbiosis in the Fin x Tech World - SUSS FinTech & Blockchain€¦ · 13 BLOCKCHAIN ASSOCIATION OF...
Transcript of Symbiosis in the Fin x Tech World - SUSS FinTech & Blockchain€¦ · 13 BLOCKCHAIN ASSOCIATION OF...
Symbiosis in the
Fin x TechWorld
Justo A. OrtizChairman
Arvie V. de VeraFintech Business Group Head
15 November 2018 | Inclusive Fintech Summit 2018 | Singapore Fintech Festival
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TRANS. B
(Embedded Banking
Experience)
“Technology Company
with Banking Utilities”
W H A T W E D O
HO
W W
E D
O IT
TRANS. A“Best Digital
Bank”
CORE“Great Retail
Bank”
(FOCUS 2020)
Unbanked
(Adjacent Market;
Banking the Unbanked)
TRANS. C+“Best Mass
Market Bank”
(Credit for more;
Eliminate cash)
DUAL TRANSFORMATION STRATEGYStrengthening Today; Creating Tomorrow
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INVEST
ENABLE
BANK
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Symbiotic ConvergenceTech Companies
Traditional Banks Fintechs
Capital to scale
Amazon
Apple
Alibaba
PayPal
MasterCard
Visa
Intuit
Oanda
Yodiee
Lending Club
Marketing power
Personal data assets
Loyal customer base
Brand
Scale / Balance Sheet
Sophisticated Infrastructure
Trust advantage
Large corporate & consumer base
Personal data assets
Banking license
Marketing power
Access to capital/liquidity
Branch network
Risk, security, fraud protection
Regulatory domain knowledge
Cutting-edge technology
Superior customer experience
Lean IT
Low-cost producer
Personal data assets
Legend: Evenly Matched Potential Areas of Collaboration/Convergence
Digital customers are more engaged, generating significantly higher revenues
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Outstanding balances are 4x higher
Spend amount is 6x higher (for carded customers)
Translating to a revenue of 2,000 (12x higher)
vs. 170 for non-digital
As digital score increases, engagement deepens
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ISLAND TO ISLAND
INSTITUTION TO INSTITUTION
INDIVIDUAL TO INDIVIDUAL
EYE TO EYE
PROJECT
The Intersection of Blockchain & Banking
• UnionBank is pioneering blockchain technology along with the BSP
• Project i2i is a blockchain platform that connects rural banks and allows them
as untrusting actors to interact with their communities
• The platform also enables rural banks to offer a comprehensive suite of
services and products to their customers, driving growth, sustainability as well
inclusive prosperity
The Rural Banking Challenge in the Philippines
• Rural banks are embedded in unbanked communities
• They lack resources and inclusion as compared to larger banking
institutions
• Rural-based Filipinos have limited access, lack of relevant product
offerings, and poor customer experience
Symbiosis with Technology Companies
X
TECHNOLOGYBANKING
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Symbiosis with Fintechs
REACH 1,000,000 SMEs
CREATE Initial UBP relationships. Cross-sell.
LEARN Customer experience, proxy data
INVEST Equity, Platform as a Service, Credit
WHY?
Banking structure
Customer base
Balance sheet
Use of alternative data/models
Superior customer experience
X
LENDING FINTECHSBANKING
“ ○ ECOSYSTEM BUILDING & MOVEMENT CREATION
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MOVEMENTS
PARTNER
ASSOCIATIONS
TECHNOLOGY/
PLATFORMS
PEOPLE/ EDUCATION
DEMAND SIDE STIMULATORS
SUPPLY SIDE DRIVERS
CUSTOMERS
Corporates SMEs Individuals
Rural Banks Cooperatives
REGULATORS
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Digital transformation for the rest of us.
An exchange and platform for:
Those who want to tech up
Those who want to offer tech to
others
Those who want to learn
WHAT IS TECH UP?
OUR HOPE: To create tech solutions that create
the greatest inclusion
FOUNDING MEMBERS
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BLOCKCHAINASSOCIATIONOF THE
PHILIPPINES
MISSION & VISION
To engage the community at large in our thrust, which is
blockchain for the greater public good.
To harness the best practices of blockchain in the PH and
export it to the rest of the world.
To encourage experimentation, collaboration and co-creation
amongst various stakeholders; giving a safe space to pioneer
this technology in various industries.
Our center of excellence will train and produce some of the
top blockchain talent in the world.
In collaboration with the government and other blockchain
associations, build a blockchain-enabled Philippines.
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BLOCKCHAIN ASSOCIATION OF THE PHILIPPINES LAUNCH: MAY 29, 2018 IN BLOCKCHAIN APPLICATIONS & ECONOMICS FORUM
How do we nurture symbiotic convergence?
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We need to TRANSFORM
Strategy
Process
People
Culture
Space
Ubuntu
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Strategy
Community-centered banking ingrained in our DNA
50M
1MIndividuals
SME Businesses
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Strategy
To ‘Make Da Diff’ in the lives of others, in the communities we
serve by connecting and enabling communities through
Smart Banking in the spirit of Ubuntu
Establishing a Moonshot
PURPOSE
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StrategyHow to ACQUIRE 50M customers? 1. Build Counters / Agency Banking
• Access to Petnet and
DragonPay counters
• Petnet has total of 3,190
counters (407 company-owned; 2,873
business partners)
• DragonPay has 14 bank
partners & 14 non-bank
partners, with a total of 15,000
counters; ~900 merchant
partners
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StrategyHow to ACQUIRE 50M customers? 2. Build Ecosystems
Importer/Broker
ICTSI Community Debit Card
ICTSI Branch ATM/BranchePay card
ICTSI Employees• Needs to pay customs
tax to ICTSI for the
release of goods• Collections are made faster and more efficient
• Goods are released in a timelier manner
• UnionBank credits funds to ICTSI employees during payroll periods
• ICTSI employees can withdraw their
salaries via UnionBank ePaycard
from UnionBank ATMS/branches
• ICTSI maintains payroll account with UnionBankCOLLECTION
DISBURSEMENT
Shipping
Global Logistics PlatformCustomers/Buyers Suppliers/Sellers
Order/Service
Request
Order/Service
Request
Order/Service Delivery
Payment SettlementAPI
Bills Pay via OTC or
SWIFT (int’l)Bills Pay via online
channels
Payment partners
(local & int’l)Send to a UnionBank
accountSend via partners/
SWIFT (int’l)
Send via PESONet or
InstaPay
Logistics Platform
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StrategyHow to ACQUIRE 50M customers? 3. Invest in UBx UBx
(Innovation Company)
FinTechs
VC / Exchange
Tech Services
IT-BPO
Design
Source
Safe
Analysis Review
Automation
Deploy
Test CaseBuyers / Customers / End Users
Platforms
UNIONBANK
PLATFORM
Sellers / Producers /
Manufacturers / Service Providers
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StrategyHow to ENGAGE 50M customers? Co-Create with Customers
EON’s Board
of Co-Creators
who provide
feedback to
develop and
improve EON’s
app & products
UREKA, a
collective
action to bring
together SME
owners and
businessmen
into the online
world
UnionBank
Hackathons,
which has been
an incubator of
innovative ideas
as teams of app
developers,
professionals, &
students, get to
pitch their own
solutions to
societal
problems
Customer
information and
transaction data
are translated
into predictive
models which
help UnionBank
in crafting
customer-
targeted
campaigns &
promos.
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Culture
Values-based, purpose-led
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The
culture
was not
yet ripe
Culture
Tomato
Soup
Story
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Culture
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‘Exemption from the Rule’Antonio Magnayo III (Assistant Collector, SME Business Line)
“UBP gives a three-month leeway for clients before their accounts are processed for foreclosure.
After a series of delayed payments, Mr. and Mrs. Basalo visited our office to inform us that they can’t afford to
pay for amortization within the time given to them because their savings were all being used for Mr. Basalo's
medication.
A few days after, Mrs. Basala dropped by the office to tell me that Mr. Basalo already died. I felt a deep pang
within my soul, but I had to keep my cool and tell Mrs. Basalo the consequence of past due payments.
I felt her stress and sincerity, so I sought approval to hold their account. It moved me to ask for a two-month
extension for my client. Happily, it was approved!”
Celebrating DNA Stories
‘A Bank for Others’ Mary Anne D. Ricaza
(Branch Manager, Medical City)
“ Compliance should never be compromised but servicing clients with a heart should never be
forgotten.
On Saturdays, banking hours at the Medical City branch is from 9am to 1pm. On a Saturday, a
client from the hospital’s clinic came to the branch wanting to claim her check. Unfortunately,
there was no scheduled check release on a Saturday.
Thinking on my feet and wanting to provide the service to the client, I asked for the client’s
identification documents and other verification requirements to release the check. The client
was very thankful after her transaction was processed.
Culture
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Go-Beyond Communities REaCH: Relevant, Expert, Challenging Conventions Projects
Employees are encouraged to form their own groups and drive their own advocacies
through the Bank’s employee-driven corporate social responsibility initiative
Encourages cross-functional middle management teams to come up with innovative
products or processes improvements and propose them to top executives to seek
mentorship
440communities
11,141volunteers
1,487,495beneficiaries
51,334hours spent
“Team U-Won”
U-Bot
Streamlined chatbot for HR and IT
related FAQs, employee-related
concerns to provide solutions and
improve process efficiency.
Project E-Sig
Electronic signatures for approval, aligned
to the internal policies and processes of the
Bank, to promote efficiency and
productivity.
“Bee Squad”
White-labelled food service app for food
order, pick-up, and delivery of Kinuron.
The app will offer convenience and
productivity for UnionBankers and
increased profit for the concessionaire.
Digicaf
“Team Hangry”
Culture
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Culture
Agile-First
SQUAD FORMATION AND PROFESSIONAL SCRUM MASTER TRAINING & CERTIFICATION
Squad Quicksilver
Squad Branch Transformation
Squad GC on Blockchain
Squad Global Linker
Batch 1
Batch 2
Batch 3
Batch 4
AGILE
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CultureAcquire New Knowledge & New Ways of Thinking
We need to re-think our own cognitive biasesAt the end of the day, we need to unlearn, re-learn, and learn anew
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Space
Transforming spaces to enhance customer experiences
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SpaceThe ARK – first-fully digital branch in PH
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SpaceFrom physical to virtual spaces…
EON Banking“First Selfie Banking in Asia”
Rafa“First Banking
Chatbot in PH”
UnionBank Online Mobile & Web
Upgraded version of UMobile App
GloballinkerOnline Platform for SMEs and
Suppliers
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Space... such as platforms
Global Logistics PlatformCustomers/Buyers Suppliers/Sellers
Order/Service
Request
Order/Service
Request
Order/Service Delivery
Payment SettlementAPI
Bills Pay via OTC or
SWIFT (int’l)Bills Pay via online
channels
Payment partners (local
& int’l)Send to a UnionBank
accountSend via partners/ SWIFT
(int’l)
Send via PESONet or
InstaPay
Logistics Platform
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Process
Becoming Digital to the Core to reach more, faster
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ProcessGoverned by a BIAN-based Enterprise Architecture
API (Application Program Interface) Platform
BPA (Business Process Automation) Platform
Security and Resilience
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API PlatformStart building apps with UnionBank’s APIs!
https://developer.unionbankph.com/
708
API end points
137No. of
exposed APIs
powered by
*as of October 2018
Process
18.2MTotal API calls
412KAvg daily call
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BPA & RPA
Piloted on Processing of End-of-Day Reports
for 250 CMS Billers
People 18 0
Time per Task 120 sec 18 sec
Total Processing Time 8.33 hrs 1.25 hrs
2016
2018
100%
0%
60%
Operations & Execution
Sales & ServiceReference Data
Product Mgmt.
Market Data
External Agency
Party Data Mgmt.
Customer Profile
Risk & Compliance
IT Risk
Emerging Risk
Operational Risk
Market & Liquidity Risk.
Credit Risk
Modelling & Risk
Analytics
Marketing
Brand Mgmt.
Advertising
Campaign Design
Promotional Events
Customer Surveys
Comparison Purchase
Loans & Deposits (Retail)
Salary Loans
Auto Loans
Mortgage
Term Deposits
Current Account
Savings Account
Sales
Campaign Execution
Lead Opportunity Management
Customer Offer
Sales Planning
Commissions Agreement
Product Sales Support
Accounts Management
Position Keeping
Fraud Detection
A/cs Receivables
A/cs Reconciliation
Counterparty Risk
Product Combination
Product Marketing
Channels
Contact Center
Management
E-branch Admin & Operations
ATM Management
Branch Currency Distribution & Mgmt.
Commercial / Corp. Banking
Credit Facility
Limit & Exposure
Management
Working Capital Loan
Term Loan
LC/BG
Check Lock Box
Supply Chain Finance
Factoring
Product Inventory Management
Product Inventory
Distribution Mgmt.
Branch Location Management & Ops
Branch & ATM
Network Mgmt.
Adv Voice Services
Management & Ops
Loan Operations
Underwriting
Disbursement
Collateral Mgmt.
Collections Mgmt.
Cards
Card Processing
Rewards Management
Customer Mgmt.
Customer Agreement
Access Entitlement
Behavioral Insights
Reference Data Management
Customer Credit Rating
Customer Precedents
Cross Channel
Transaction
Authorization
Party Authentication
Contact Dialogue
Customer Workbench
Interactive Help
Servicing Activity Analysis
Servicing Event History
Payments
ACH Fulfillment
Central Cash
Handling
Cheque Processing
Correspondent Bank
Financial Gateway
Financial Message Analysis
Payment Execution
Auto Debit
Operational Services
Device Management
Customer Billing
Channel Activity
Analysis
Channel Activity History
Market Operations
Confirmation Matching
Settlement Management
Customer Event History
Customer Eligibility
ServicingCase Root Cause
Analysis
Customer Case Management
Servicing Issue
Payment Order
Notification Engine
Treasury Services
Remittances
Currency Exchange
Trading Services
Dealer Workbench
Trust & Investment Svcs.
Investment
Management
Trust Services
Business Support
Business Command & Ctrl.
Fixed Assets & Procurement
Human Resource Management
Finance
IT Management
Business Direction
Corporate
Relations
Document Mgmt.
& Archive
Business Analysis
201740%
20%
201980%
Mapped out 761 processes of the Bank and
reengineered them into 87 projects
Business Process Automation (BPA) Robotics Process Automation (RPA)
Process
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ProcessCloud Computing
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Artificial IntelligenceProcess
Natural Language Processing in Chatbot “Rafa”
Key Features:
• ATM/Branch Location
• FX Rates
• Product Inquiry
• Card Balance Inquiry
• Card Activation
Next Best Offer in RM Mobile Assistant Express (MAX) 3.0Real-time offers tailor-fitted to a client
Other Features:
• Calendar & Planner
• Navigation & Route Tracking for Client Calls
• Client 360-view (real-time data from core
banking system and historical client data)
Blockchain Projects
Blockchain Institute Ideation
Internal Blockchain Projects • Tokenized real estate investment trust
• General Circulars • Commercial bank-backed stable coin
• Loyalty rewards of card products • Token escrow service for token offerings
• Federated ID system of customers & employees • Participating in a virtual currency exchange
• Electronic Invoice Presentment & Payment (EIPP) • U-Share
Founding member of Visa B2B Connect on
Hyperledger
• Tokenizing ancestral domain land holdings to create
collateral value and finance agricultural land
developments
JP Morgan Interbank Information Network on
Quorum
Project i2i – financial services for rural banks
XLog – logistics and supply chain
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BlockchainProcess
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IoT, Data Science, Quantum ComputingProcess
Data
Science
Internet of
Things
Quantum
Computing
Data Lake
Input Layer
Behavior Score
Accuracy
93%
Hidden Layers Output Layer
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CapabilitiesCybersecurity & Resiliency
INTEGRATED OPERATIONS CENTER a collaborative facility that monitors the Bank’s
operations and cybersecurity measures on a 24/7
basis
TRIANGULATING THE NETWORK Co-located UnionBank’s Disaster Recovery Site to
a Tier 3 data center that meets international
standards 41
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People
Digital Transformation with ‘no one left behind’
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Digital Transformation with no one left behindPeople
Shareholders Regulators
Jeremy RifkinEconomic and Social Theorist; Advisor to presidents of the
European Commission and EU heads of state such as Angela
Merkel at 2017 Board Strategic Planning
Brett KingFuturist, CEO of Moven & Amazon Best-Selling Author of Bank
3.0 at the 2017 Board Strategic Planning
Thomas FreyGoogle’s Top Rated Futurist Speaker at the 2015 Board
Strategic Planning
Joe LubinCo-Founder of Ethereum and ConsenSys
at the 2018 Board Strategic Planning
Mike KayamoriCo-Founder & CEO of Quoine, which has one of the largest
cryptoexchanges in the world, at 2018 Board Strategic Planning
BSP Governor Nestor Espenilla Jr. and Chief Fintech
Officer of Monetary Authority of Singapore Sopnendu
Mohanty with UnionBank’s “ERB Miner 8” bitcoin
mining rig
BSP Workgroups
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Digital Transformation with no one left behindUBP Leaders UBP Employees
Brian Cu, Grab Country Head, on
building a disruptive business
Leonhard Weese, President of the Bitcoin
Association of Hong Kong, on Bitcoin
Skills Development for IT and Non-IT Teams (Coding 101)
Townhall/Learning Sessions
Training Plans & Career Development Tools
8 UnionBank University Academies
• Marketing
• Sales
• Leadership & Management
• Six Sigma & Lean Enterprise
• Digital and Innovation
• Self-Mastery
• Operations
• Risk and Compliance
Some Learning & Development Programs:• Design Thinking – 16 runs, 272 participants
• Basic Coding: HTML, CSS, and Java Script – 6 runs, 70
participants
• Secure Coding for Developers – 2 runs, 13 participants
• ITIL Foundation Certification – 2 runs, 37 participants
• ITIL Crash Course – 5 runs, 110 participants
• Introduction to Agile Project Management – 3 runs, 68
participants
• Project Management Fundamentals – 6 runs, 94 participants
• Lean Six Sigma Orange Belt – 4 runs, 108 participants
• Blockchain Training with Consensys with more than 30 certified
solidify developers. UBP is the first bank in the Philippines to
build a Blockchain Center of Excellence
People
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Digital Transformation with no one left behindUBP Employees
Best HR System ProjectAsian Banker Philippine Country Awards 2017
UnionBank Human Capital Management (HCM) System
• Sourcing
• Recruiting
• Onboarding
• Employee Profile
• Performance Management
• Goals Setting
• Learning & Development
• Talent Review
• Succession
People
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Ubuntu
Building symbiotic convergence
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Ubuntu
PARTNERSHIPS
EMPLOYEES CUSTOMERSCHANNELS
DOMAIN EXPERTSCOMPETITORS
Agile OrganizationCo-Creation
Agency BankingEcosystem / Platform Play
Symbiotic Convergence
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END
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