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YOUR LOGO
Creating an agile BancAssurance platform4th Annual BancAssurance Conference - Vienna, Austria23rd April, 2009
Kalpesh Desai
CEO, Agile Financial [email protected]
www.agile-ft.com
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Agenda
1
Agility In
BancAssurance
3
4
2
BancAssurance – Current business drivers
Technology as an enabler of business agility
Challenges in deployment
About Agile Financial Technologies
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Agenda
1
Agility In
BancAssurance
3
4
2
BancAssurance – Current business drivers
Technology as an enabler of business agility
Challenges in deployment
About Agile Financial Technologies
Page 4Confidential
Regulatory
RegimeBanks
Clients Insurance
Companies
Dismantling barriers
between banking
and insurance
products
Unprecedented
population ageing
Relaxed regulatory
Regime
Extensive branch
network, infrastructure &
penetration
Insurance
spend increases
as GDPs reach
threshold
Low cost
distribution model
70% of world
assets with
people > 50
Customer
Centricity
Customer retention
challenges – require
shift to universal
banking model
Opportunity to diversify
banking revenues – fee
income
High distribution
costs Channel fidelity
Poaching of quality
agents
Power concentrated
by a few leaders
Under-serving of
middle-tier
consumers
Need to target
HNWI’s to
position
complex
products
Achieve reach in a
timely and cost-
efficient manner
Economic
slowdown
Access to
liquidity
Margin
pressure/credit
risk/enhanced KYC
The need
Complex financial needs –
require asset protection
(insurance) and growth
(investment) plans
Environment
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Fragmented Approach By Banks & Insurers
InsuranceCompanies
sell InvestmentProducts
Banks sellNon-Life products
Banks sell Life and Pension
products
Branch network Agents/Brokers
Client
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Channels Servicing The Landscape
Opportunity to introduce
BancAssurance
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•Automate services; evolve technology
•Outsource non-core functions
•Identify and structure fees based on “needs-based” approachHigh
Service
Needs
Level
Low
NEEDS Client
Service requirement GAP
Profitable person-to-person
servicing capability
High Net
Worth Emerging Mass Emerging Mass Affluent 0 Wealthy Affluent Market
Client Segment
Services Expectation Gap
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Different strokes for different folks
UltraHNWI
Mega Net Worth Customers
HNW Customers
Mass Affluent Customers
Personal/Premier Banking Customers
Volume of potential Clients
Build & Manage Wealth
Protect Wealth
Build Legacy
Plan
Advice
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What clients want
Traditional process of servicing
• Brokerage services (product experts and financial advisors)
• Investment Management services (relationship-based approach to financial products)
• Wealth Planning (personal financial planner)
How clients desire to be serviced
• Global outlook to “asset management”
• Research on international development
• Transparency and visibility on portfolio performance and risk mitigation
• Support and resources and tracking of social returns on their philanthropic and charitable pursuits
• Choice of sectors, geographies, community focused, socially responsible investment screening
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Servicing the need
Advisory based sales
Client Base
Loan holdersSalary
accounts
Mid balance
liabilities
customers
High balance
liabilities
customers
Preferred/
Private
Banking
Over the Counter/Direct
Marketing
Creditor Products sold with
existing product distribution
Segmented
products
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Business Drivers
Diversify the banks’ products and services portfolio
Integrate marketing efforts
Reduce dependence on interest-based income
Optimize distribution costs
Gain access to a larger client base
Increase cross-selling opportunities
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BancAssurance Business Models
Distribution Agreements
• Referral model
• Inadequate training to bank employees
• Limited product range
Embedded Agents
• Insurance agents sell in banks
• Licensed advisors within the bank
• Higher product complexity
Full-time sellingmodel
• Trained bank staff sell most of the products
• Wide range of simple & complex products
Classical fullyintegrated
• All products are sold by the bank
• Advisory based product offering
• Centralized support services
• Integrated into the Wealth Management Platform
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The Need
Leverage of branch network
(reach) and client base (depth)
Additional offering at no
additional infra cost
Product fitment
and differentiation
Holistic financial offering to
client
Reduce distribution costs
by leveraging
infrastructure
Product Creation &
Underwriting
Leverage joint branding
Value to
Insurer
Value to Bank
Value to Customer
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Objectives
Factor Bank Insurance Company
Customers
Retention of clients Access to a quality customer
base. Ability to offer customized
offerings to a wider, wealthier
client base
Serviceability
Ability to service more
financial needs under one
roof
Revenue and channel
diversification
InfrastructureEffective and profitable
resource utilization
Quicker geographical reach on
the bank„s backbone
Economics
Revenue diversification,
increased fee based income,
reduce revenue volatility
Low distribution cost, increased
customer penetration and
servicing, increased revenues
Objective – Leverage Customer Centricity
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Credit Shield/
Lost Card
Insurance
Objective - Increase revenues/cross-sell
Credit Life
Insurance
Mortgage Life
Insurance
Motor
Insurance
Personal
Credit
Insurance
Credit cards
SME Banking
Mortgage
Auto Loans
Personal Loans
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Objective - Winning Strategy For All
Customers
Receive holistic solution from a
one-stop shop
Banks
Deepen client relationships
Increase fee income
Insurance
Companies
New distribution channel
Low distribution cost
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Evolving A Client Centric Approach
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Agenda
1
Agility In
BancAssurance
3
4
2
BancAssurance – Current business drivers
Technology as an enabler of business agility
Challenges in deployment
About Agile Financial Technologies
Page 19Confidential
Wholesale and Retail Products
Personal
banking
Commercial Banking
Global Banking and Markets
Private BankingGlobal
Institutions
Corporate
SME
HNWI
Mass Affluent
Mass Market
Integrating BancAssurance in operations
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Process and Technology Challenges
Business Under-
performance
Poor visibility of economic
performance and drivers by customer
segments
Islands of information created
by the deployment of point solutions and
disparate IT solutions
Inability to align products and services with
customer profitability
People and relationship dependent processes
Past revenue growth led to increased fixed
costs of acquiring and serving new
customers.
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Technology Can Inhibit or Enable
• Inflexible Applications
• Islands of information
• Tedious Product Development
• Interface touchpoints
• Outdated software
• Succession planning
• Uncertainty
• Implement a multi-carrier
BancAssurance model
• Constantly evolving needs
• Increasingly sophisticated
and demanding client base
• Increase competitiveness
I.T.
Business
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"In a time of accelerating turbulence, the valuation of a company will be strongly
affected by how it executes change."
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BUSINESS AGILITY!! NOT A LUXURY !!
The ability of a business to adapt rapidly and cost efficiently in response to changes in the business environment.
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how do you change a business model and innovate?
Question
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If your current systems do not enable teams to collaborate
And create a common platform linking processes, knowledge and tools to leverage the BancAssurance opportunity
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Bridging the gap
• Determine a service approach
• Deliver service through multiple channels and practice models.
• Continuously monitor and update client profiles and behavior patterns
• Engage research and surveys to question internal assumptions
• Based on Client Lifetime Value
• Analyze client needs and create tailored offerings
• Build additional capabilities or find partners to service the gap
• Net worth
• Client interests, frequency of interaction, communication preferences and financial behavioral attributes.
Customer Segmentation
Position Products and
Services
Service Delivery Model
Stay Current with Client
Needs
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Agenda
1
Agility In
BancAssurance
3
4
2
BancAssurance – Current business drivers
Technology as an enabler of business agility
Challenges in deployment
About Agile Financial Technologies
Page 28Confidential
Aligning Business
Business and customer strategy
• Identify and migrate clients from banking services toasset management services
• Position advisory capabilities and best-of-breedinvestment and insurance products
• Assess viability of providing a asset management offering to the mass affluent
Organizational design
• Break out of silos to transition from a product-centric to a customer-centric organization
• Integrate different components of offering to provide a single point of contact for clients
Operational effectiveness
• Build, buy or partner to offer more complete asset management, retirement & estate planning and protection capabilities
• Leverage physical footprint
• Ensure rigorous adoption of “know your customer rules”
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With I.T.
Shift from islands of information to a holistic integrated system
Deploy CRM to enable identification of potential wealth-
management clients and provide an integrated view of the customer
and information across all product groups
Using technology as a platform for serving the mass affluent
Improving information and data exchange to share information
across silos
- Integrating legacy and new systems
Outsource non-core functions to service providers
- Investment Accounting
- Research
- Reconciliation and transcription
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Technology as an enabler of business agility
Technology is a key operational factor for every insurer
- From Lead Generation to Policy administration and Claims Management.
Major IT drivers:
- New product development.
- Integration with insurance company data, sales and services practices
- New distribution channels.
- New regulatory requirements.
Integrate tightly with the Bank’s own systems
Web-centric IT system.
- On-line case management and request handling
- Channel Management.
- Policy, Product details and online premium calculator
- Facility for group insurance customers to view individual savings status on the web.
Facility to pay premiums through credit cards, Net banking, StandingInstructions, etc.
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Approach
Insurance Products
Web based access
to Channels, Employees,
Branches and Customers
Interface between IT systems
in the Bank & Insurance
company
Core Banking Platform
Creation of new products
Servicing client needs
Banking ProductsService offering by
Integrating processes
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Approach
Integration with
core banking
(Customer
Information)
Multi-carrier support
Ease of premium
payments using auto
debits, cards, net
banking, collection
agencies
Maintain bank‟s service
standards
Utilisation of alternate
service points to minimise
cost
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Technology as an enabler of business agility
IncreasedResponse
Levels
IncreasedRevenues
CostEfficiency
Integrated/Aligned
Processes
Scaleability
o Create value for banking
and insurance customers
o Improve experience for
distributors, partners and
Employees
o Reduce the sales cycle
o Enhance interoperability
between systems
o Shift to holistic integrated
systems from islands of
disparate information
o Provide integrated view of
customer information
across various products
o Improve information-sharing
practices
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Self serve capabilities using the web
Distribution
Channels
Corporate/
Individual
Customers
Brokers
Bank Employees/
RMs
Agents Insurance
Consultants
Direct
MarketingUn
ifie
d T
ech
no
log
y P
latf
orm
Scala
bility
an
d A
dap
tab
ility
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Examine deployment models
Software as ServiceEntire computing capacity is outsourced
to third party/ solution provider
Platform as ServiceService to create, operate and run applications
Infrastructure as ServiceFully outsourced infrastructure and application
environment
Expense Control
Higher return on
IT investments
Competitive
costing
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Mid/BackOffice
Integration
Front OfficeIntegration
Distribution Network
Automation
Multi-CarrierManagement
Product Portfolio
Performance Management
Integrated BancAssurance Framework
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Thank youKalpesh Desai
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Agenda
1
Agility In
BancAssurance
3
4
2
BancAssurance – Current business drivers
Technology as an enabler of business agility
Challenges in deployment
About Agile Financial Technologies
Page 39Confidential
The Evolution
Consolidated revenues of US$ 30mn in FY08
Create economies of scale, efficiency and a powerful sales, support, and marketing process to leverage a vertically integrated product & services offering
M&A Strategy led by a strong management team
100% buy-out of IT/ITES companies focused on the Financial Services &
Insurance Sector
Management teams of underlying companies are inculcated into Agile‟s
core team
Agile emerges as a vertically integrated mid-market player
Backed by Private Equity, Agile Financial Technology is a mid-sized Indian IT company focused on providing products and services to the Investment Banking, Asset Management, Insurance and Capital
Market sectors
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The ConstituentsA
cti
vit
yO
ve
rvie
w
`
BPO
•Application processing
•Document Verification
•KYC
•Banks, AMCs, Insurance
•Strategic Resourcing
•Over 20 years in
business
•2100+ employees
•40 locations in India
•India‟s largest domestic
BPO
•Provides transaction
processing services to
EVERY bank, mutual
fund, and life insurance
company in India
•Mashreq, First Gulf
Bank. ADCB
•Amex, StanChart
•Barclays
•AIG`
Insurance Management
•General, Life, Medical,
Broking, Banc Assurance
software
•Takaful compliant
•Over 20 years in
business
•120+ employees
•Initial deployments in the
M.E. at Emirates
Insurance, Al Ain Al Ahlia
•Oldest Oracle partner in
India (1985)
•Chola-Mitsui
•Apollo DKV
•Deutsche Bank
•Edelweiss
•ONIC (Oman)
•Astra (Singapore)
Technology Solutions
•Managed Services
•Security Consulting
•App maintenance/
development
•EAI
•Over 6 years in business
•140+ employees
•Provide consulting,
development and
managed services to
banks, insurance
companies and asset
management companies
•Bombay Stock Exchange
•State Bank of India
•Barclays
•BNP Paribas
•Edelweiss
•Kotak Life & Kotak AMC
Investment Banking
•Treasury & Dealing
•Fund Management
•Portfolio Management
•Liabilities Management
•V@R Management
•ALM
•Over 14 years in
business
•130+ employees
•Ranked by IBS
Intelligence (UK) as 6th
largest Treasury solutions
provider globally
•Largest Indian wholesale
banking software provider
•Ranked as “Highly
recommended Company”
by THE BANKER, India
•Union National Bank
•Bahrain National Holdings
•AIG Mutual Fund
•StanChart Mutual Fund
•Reliance Mutual FundKe
y C
lie
nts
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Delivering Value
• Fund Accounting Services
• IPO processing & Support
• Equity & Forex Research
• Banking
• Loan, Payments, Liabilities origination processing
• Mutual Funds
• Origination, KYC
• Insurance
• Claims processing, KYC
• Managed Services
• Security (BCP/DRP) Consulting
• Strategic Resourcing
• Enterprise Application
• Integration
•
• Insurance
• General, Life, Broking,
• Bank Assurance
• Investment Bank/Fund Houses
• Asset Management
• Investment & PMS
• NBFC‟s/Banks
ProductsTechnology
Services
KPOBPO
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Milestones
Our BPO, Pamac processes over 7% of all retail applications & 27% of all
new credit card applications processed in India
Pamac is ranked amongst the largest Indian domestic BPO vendors by D&B
Over 10mn transactions processed per annum. Over 70mn US$ of loans
disbursed per annum
The largest Mutual Fund in India (over 22 Bn$ AUM) uses iDEAL Funds
iDEAL Funds processes 30% of India‟s Mutual Fund‟s AUM
Around 45% of the money exchange transactions in India are managed by
MercuryFX
iDEAL is ranked as the 6th largest Treasury solution globally by IBS, UK;
and the largest Indian wholesale banking software in terms of footprint
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Our Engagement Process V
ert
ica
l S
ale
s O
rga
niz
atio
n
Horizontal Services
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Our Presence
Central & Eastern Europe
Russia
Kazakhstan
Ukraine
Poland
Africa
Mauritius (Direct Presence)
Kenya
Tanzania
Malawi
Ethiopia
Nigeria
Ghana
UAE (Direct Presence)
Oman
Bahrain
Kingdom of Saudi Arabia
Kuwait
Qatar
Middle East
Asia Pacific
India (Direct Presence)
Sri Lanka
Indonesia
Malaysia
Phillipines
Singapore (Direct Presence)
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iDEAL Investment Management Suite
Banks
•iDeal Integrated Treasury Management
•Mercury FX –Merchant & Retail FX
•Quadryx - OTC Derivatives
•RiskMark – Value @ Risk
•iDeal Wealth Management
•Clients
•State Bank of India Karnataka Bank,, Indian Bank, Axis Bank, OBC, Central Bank of Sri Lanka,, PNB Gilts, HDFC Bank, ING Vysya Bank, SocGen, Union National Bank (UAE)
Investment/Fund Houses/Insurance
•iDeal Funds – Front,, Mid & Back office for fund, investments and portfolio management
•Fund Managers / Investment Managers in AMCs, Insurance Companies and Portfolio Management companies
•FundMetrics –Risk & Compliance reporting
•iDeal Funds Performance Reporting
•Clients
•AVIVA Life Insurance*, Bharti AXA Life*, TATA AIG life*, LIC (Debt portfolio), Shriram Life, Reliance Life, Reliance general, Sahara Life, BNH (Bahrain), Reliance MF, AIG MF, StanChart MF, HDFC MF, SBI MF, , Pru ICICI
Finance Companies
•iDEAL Finance –Liabilities (Borrowings) Management
•Quadryx – OTC Derivatives
•CALMS – ALM
•Clients
•L&T Finance, Shriram Transport, Canfin Homes, Sundaram Home Finance, Fullerton India Credit, HDFC, Kotak Prime Limited, Fullerton India, Cholamandalam DBS
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Insurance Management Suite
Insurance Companies
• Agilis -Integrated Insurance Enterprise Management
• Non-life, Life, Composite
• Takaful
• Health & TPA’s
Brokers
• BrokerWorld –Insurance Brokerage Management
• Rate comparison-Policy Administration-Claims follow up-Accounting
• All life and non-life businesses covered
• Powerful commission tracking
Banks
• BancAims –Comprehensive BancAssurance Management
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Technology Solutions
Solution Framework
• IntiCraft – A customer self service application for
Mutual Funds
• Life Insurance Portal – Customer, Agent and
Employee Portal – A virtual office for Life
Insurance Companies
• HRMS add-ons – Expense Management,
Appraisal System, Emp Intranet, Emp Helpdesk
• Secondary Sales – Tracks movement of goods
sold beyond the first point of sale
Infrastructure Services
• Data Centers – Design, Security Paradigm,
Implementation, Movement and Support.
• Infrastructure Software Support – Database,
Middleware, OS, Security and Messaging
• Disaster Recovery Design and Implementation
• ISO 270001 Consulting
• Database and schema migration
Enterprise Application Integration
• Application Integration
• Customer Application development and
maintenance
•Middleware expertise on Oracle, IBM and Sybase
System Integration
• Hardware sizing and selection
• Building a solution for solving a problem – may
require a mix and match of third-party products
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Business Enablement Services
ApplicationProvisioning
3rd Party/Client Apps
Processes Enabled
Verticals Serviced
ServicesProvisioning
ActivitiesOutsourced
Business Process
ConsultingApplication
Development
Managed
Services
Strategic
Staffing
Txn
ProcessingFulfilment Verification Dispatch Reconciliation
Receipts/
PaymentsResearch Accounts
Data Mining/
MISReporting
Customer
interaction
Fund
Accounting
R & T/
IPO Processing
Equity &
Forex
Research
Back Office
Accounting
Policy
& Claims
Admin
Credit Risk
Evaluation/
Processing
Fund Admin/
Registrars
Investment
Banks/FundsBanks NBFCs Insurance Telco's
iDEAL
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The Company We Keep
Banks
Investment
Management
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The Company We Keep
Insurance
Financial
Services
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H
U
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U
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H.
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Infrastructure
India
- 40 cities across India, 80+ locations
- Hub & Spoke model
ISO 9001:2000 certified BPO
- 300+ employees in product development and
deployment
- 150+ employees in technology support services
- 2,100 employees in business enablement services
(BPO)
- 7,600 resources deployed onsite in banks
UAE
- Dubai Internet City
- Dubai Outsourcing Zone
- Sharjah Airport International Free Zone
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