banking transformation

Banking TransformationBridging the People, Process and Content Divide

Banks today need systems beyond

core banking. For improving

productivity, centralization of back

offices is an imperative, where non-

customer facing activities can be

moved from branch to central back

office. This ensures that most of the

staff at branches is customer–facing

and performs value added services.

Using BPM & ECM, banks can build

centralized back offices and improve

overall customer experience.

In order to tap the benefits of

centralization, process automation is a

must. Digitization will help transform

manual and paper-based processes

across branches / head Offices into

electronic processes. This will

eliminate all error- prone and

redundant activities like manual

hand–offs, needless paper movement,

repetition of checks, reviews and more

system inputs than necessary. The key

processes which banks look forward to

automating will include Account

Opening, Loan Centralization and

Trade Finance.

Process automation leads to greater

visibility and transparency across the

organization. This can be achieved

through real time dashboards; thus

enabling the enterprise to gain insight

into the work-in-progress, user or

process performance and KPIs.

Through measurement and tracking,

BPM can help identify the gaps and

remove bottlenecks in the process

thus optimizing process performance.

Enhanced customer experience can be

achieved by ensuring communications

via customer preferred channels and

by enabling them to get access to the

bank via multiple channels like mail,

fax, sms, phone, web portal, etc.

Customer on-boarding experience can

be improved by leveraging alternative

channels of communication.

Another important benefit offered by

BPM/ECM, is the ability to meet

regulatory compliance and adhere to

the SOPs, thus enforcing consistency.

BPM enables large organizations to

outsource selectively, while

maintaining visibility into those

outsourced transactions.

Driving Transformation Through Process Automation

Driving Transformation through Process Automation

Centralized Back-Office

Digitization & ProcessAutomation

Visibility & Measurement

Enhanced Customer Experience

Compliance & Standardization

Outsource Selectively

SOLUTIONS FOR BUSINESS PROCESS & CONTENT MANAGEMENT

Newgen's highly configurable, flexible

and scalable products along with its

domain experience in banking have led

to readymade point solutions being

offered to banks. These solutions are

working in numerous large scale Global

Banks and are available to clients as

soft template processes and off the

shelf products.

The below diagram clearly

encompasses the spectrum of

Newgen's solution for banking. The

following figure resembles an assembly

line which has multiple point solutions

provided by Newgen for functions like

Corporate and Commercial Banking,

Payment and Settlement, Lending

&Mortgage and Retail processes. At the

base of these processes are the solution

enablers provided by Newgen like

Business Process Management, Content

Management and Rules Management

etc. which are integrated with the

existing systems in a bank like Core

Banking System, CRM, and ERP etc.

As an assembly line of the processes, it

is possible to have a 360 degree view

with real time monitoring using

Newgen's Organizational Dashboard.

For interacting with the end customers,

request management solutions (for

Contact Centers) and customer

communication management solutions

are available in Newgen's kitty. All

these solutions for Banking ensure

almost 100% compliance to the

regulatory standards, streamlined

processes enabling high productivity

and reduced costs. Also, the customer

communications management solution

ensures standardization, customer

experience and revenue maximization.

Newgen Banking Solutions Universe

Organiza

tional D

ashboard

Organizational Dashboard

99% Compliance

Standardizing of Customer Exp.

REAL TIMEVISIBILITY

Lower TAT

Cross Selling

CRM for Contact Centers Customer Communication

CORPORATECOMMERCIAL

Letter of CreditIssuance

Commercial Loans

Bank Guarantee

Accounts Payable

Image Based Clearing(Inward/Outward)

PAYMENT & SETTLEMENT

Funds Transfer

Post Dated Cheques

Forex

...... ............

Automated ChequeHouse

LENDING & MORTGAGE

Loan Origination

Loan Servicing

Loan Underwriting

Collections & Dispute

Know Your Customer & Customer Due Diligence.

Account Maintenance

......

Term Deposit Service

Process Management Content Management Product Configurations User & Rights Management Rules Management

CRM ERP Internet Banking Legacy Systems

Core Banking

COMMON INFRASTRUCTURE

Banking Industry Framework


Centralized Loan ProcessingEnabling complete operational visibility & control

The loan applications are received at

remote branches by the customer

walking-in or by direct sales agents.

These documents are then scanned,

registered and minimal data entry is

done. Additional supporting

documents such as proof of identity,

proof of residence, etc. are also

received and are scanned against the

enrollment number of the original

application. The document images are

authorized by comparing them against

the original documents at the branch

itself.

These documents are then transmitted

to the central processing centre where

the authorization and approval

processing takes place. The data entry,

risk assessment and loan sanction is

done by the authorizer based on the

eligibility guidelines. The process can

be integrated with third party

verification agencies for customer

credit checks. If an exception is raised,

it is automatically sent to the branch

for resolution. The local database at

remote site is also updated with status

and transaction data for all live

transactions. On authorization,

appropriate action is taken and loan is

disbursed to the customer along with

Collateral Contract.

The client core application which

keeps information about customers

and their transactions can be updated

with the Loan Details.

Success Stories

Loan Origination

Loan Originating

Loan Underwriting

Loan Servicing

Early Warning System

Loan Takeover Mgmt

Image Enablement of LOS

Loans Statements Archival

Loans Statement consolidation

Collection & Disputes

Reconciliation Module

Customer Query Resolution

Ÿ Current Economic Environment

Ÿ Operational Efficiency

Ÿ Risk Management

Ÿ Protection from predatory

lending

Ÿ Turn Around Time Reduced by 50%

Ÿ Integration with core system

Ÿ Employee Productivity improved by 150%

Ÿ Operating Costs reduced by 30%

Ÿ Process was time consuming

Ÿ Systems running in silos

Ÿ Manual processing leading to low productivity

Ÿ High operating costs


Loan Process Implementation for a leading Bulgarian bank

ŸTime consuming processing of loan documents

ŸAPS the core banking system was running separately

ŸIntegration required for proper functioning

ŸContract approval and facility input

ŸInitial and Further DisbursementCredit Amendments

ŸFurther Administration, Repayment

ŸProblem Loans, Liquidation and Archiving processes

Challenges Processes Automated Benefits

• Integration with the core banking system

• Initiating work from the core banking system

• Contract generation

• Master management in APS and TMreference by OmniFlow

• Automation of 250 branches

• Implementation in Bulgarian to enable the local language support

Account opening process can be

initiated at the branch office where the

user will fill in the information related to

the account-opening request. The same

can be scanned and used for data entry

along with the other supporting

documents required for Know Your

Customer (KYC) details. At this stage

the signed CIF & additional documents

will be scanned and routed for

document verification to the central

processing centre.

In case of any discrepancies like missing

document, expired passport etc., the

Assessment Experts would raise an

exception on the basis of which the

transactions would be immediately

forwarded to the concerned user at the

branch office for resolution. Automatic

email triggers can be sent to the client

for submission of missing documents at

branch office. Post approval, the data

would be pushed to core banking for

Account Number generation. The user

would also be able to generate a

welcome kit which would be dispatched

to the customer.

Customer On-Boarding (Account Opening)

Process Modeler Dashboard

SOLUTIONS FOR BUSINESS PROCESS & CONTENT MANAGEMENTSOLUTIONS FOR BUSINESS PROCESS & CONTENT MANAGEMENT

Ÿ

worldwide

ŸAmbitious customer acquisition targets

ŸLong A/C opening cycle

ŸAnticipating outsourcing for keeping costs down

ŸTime-consuming exception handling

ŸTracking physical documents as per Central Bank guidelines

Bank first foray into retail banking ŸAccount Opening, Maintenance and Closure for Savings Account, Current Account & FD

ŸOutward Remittance

ŸStanding Instructions Execution

ŸTDS Process


ŸOpens 1200 accounts/day through 10 branches

ŸTAT improved from 8 days to 3 days

ŸBetter monitoring of branch activities

ŸOutsourcing step allows automatic upload of bulk customer data

ŸMasking of signature and mobile nos. for the outsourcing vendor

ŸException handling TAT reduced by far

ŸOperational risk management via KYC

60% Reduction in Account Opening TAT for a Fortune 500 bank

Customer Experience Management

(CEM) is the collection of processes a

company uses to track, oversee and

organize every interaction between a

customer and the organization

throughout the customer lifecycle. The

goal of CEM is to optimize interactions

from the customer's perspective and, as

a result, foster customer loyalty.

Newgen offers banks a seamless and

automated Customer Experience

Management solution catering to

multiple processes like Customer Query

Resolution, Case Management and

Contact Center Processes etc.

The key business challenges in

managing customer experience are:-

ŸTo manage a consistent experience to

customers across various touch points

like Call Center, Front Desk, Helpdesk

etc.

ŸTo reduce erroneous hand-offs and

customer servicing procedures

ŸTo simplify and standardize implicit

policies and procedures buried in

multiple back-end systems

ŸDifferentiating customer concierge

services by customer type

ŸDependency on Vendors/ IT experts

for performing minor changes on

different systems leading to escalated

costs

Newgen's offering in Customer

Experience Management provides a

streamlined, consistent and effective

way of handling the day to day

transactions and interactions with

customers.

Customer Experience Management

Newgen Customer Experience Management Framework


Solution Highlights

ŸUnified application framework

ŸOnline closure of requests with unified customer

services interface

ŸBack office processing - workflow

ŸMulti-authorization facility (e.g. in credit line

increase)

ŸProcess modeling to ensure agile configurations of

business processes that can be defined and

modified by business

ŸTAT association & escalations

ŸComprehensive MIS & dashboard

ŸTotal visibility

Benefits

ŸReduction in requests abandonment

Ÿ30% improvement of productivity via straight through

processing

Ÿ20% increase in customer acquisition and retention

rates

ŸEnd to End tracking of requests

ŸCases of requests getting assigned to wrong back

office units eliminated

ŸBulk processing of requests leading to operational

efficiencies

ŸSMS/Email notification to customers

ŸAutomated Rule Based Escalation And Exceptions

Management

Customer Communication Management (CCM)

In today's competitive world customer is

the most important asset to an

organization and it is pertinent to retain

customers for sustainable growth.

Smart and effective customer

communication is the key to retaining

HR

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Email

DesignTemplates

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CUSTOMER COMMUNICATION MANAGEMENT SOLUTION

CUSTOMER COMMUNICATION MANAGEMENT SOLUTION

Customer

RegulatoryPartner

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Interactive

On Demand

Structured

existing customers and attracting new

ones. The communication is expected to

be highly personalized, One-On-One

and over the preferred delivery channel.

Newgen's CCM solution helps banks in

transitioning to new generation

customer communication while driving

the costs down. It has a proven track

record of implementations at leading

banks across the world.

Newgen’s Unified Customer Communication Management Framework based on BPM and ECM platforms.

SOLUTIONS FOR BUSINESS PROCESS & CONTENT MANAGEMENTSOLUTIONS FOR BUSINESS PROCESS & CONTENT MANAGEMENT

Consolidation of Statements

Ÿ Better customer experience by having a single view of the customer's statements across Savings A/C, Investment, Loans, Credit Cards etc.

Cost

ŸConsolidated output saves paper, printing & postage

ŸAvoid wasteful & unread inserts

ŸReduced manpower for the entire process

Electronic & Multichannel Delivery

ŸFailsafe and faster delivery of the correspondences through Email & Mobile

ŸTracking of bounced, undelivered, incorrect statements

ŸPersonalized messages over html body or attached pdf

Customer Centric Inline Advertisement

ŸUtilize prime paper space for Personalized Inline Advertisements

ŸRule-based profiling and segmenting of customers

Improved Presentation

ŸCommunicating in customer’s preferred language

ŸAdherence to corporate branding guidelines

ŸGraphical analytic representation for taking informed decision

Compliance

ŸRepository for statement archival and real time retrieval

ŸService duplicate statement request effectively

ŸWorkflows for multi-level approvals

ŸContent and design consistency

ŸAny-time audit

Benefits

Personalized Communication

Trade Finance Processes automated by Newgen

•

• Banker's Acceptance (BA)

• ECR Pre & Post Shipment (ECR)

• Local / Foreign Bills of Exchange Purchase /

Negotiated Under LC

• Onshore Foreign Currency Loan (OFCL)

• Documentary Collection (Both Inward /

Outward)

• Bank Guarantee (BG)

Trust Receipt (TR) • Letter of Credit (LC)

• LC Issuance

• LC Amendments

• LC Cancellation

• LC

Correspondence

• LC Closure

• Letter of Guarantee

(LG)

• LG Issuance

• LG Amendment

• LG Correspondence

• LG Closure

• LG Cancellation

Trade Finance Solutions

The move to Global sourcing in pursuit

of lower supply costs has generally

increased the working capital required,

introduced additional bottlenecks and

inefficiencies in the global supply chain.

As significant amount of world trade is

settled through Letters of Credit (LC), a

considerable amount of money is

locked up in the financial supply chain

due to inefficiencies in Trade Finance

Processes like Letter of Credit, Letter of

Guarantee etc. The paper-based

processing of these transactions is time

consuming and labor-intensive.

Newgen enables centralized processing

of Trade Finance processes. Managing

trade finance involves processing and

tracking of Letters of Credit and related

instruments at one central location for

the entire global operations.

It requires seamless process automation

which Newgen offers using its

comprehensive suite with strong

document management, imaging,

scanning, records management and

BPM capabilities.

Newgen's solution for trade finance

expedites trade transactions and

minimizes potential data entry errors

by offering rich functionality in an

automated environment. The

automation results in greater central

control over operations and efficient

tracking of instruments. The solution

brings overall benefits such as

shortened customer service times,

leaner branches with no dependency

on physical documents, anytime-

anywhere access of digitized

documents, faster and informed

decision making and automated

exception and resolution.

Moreover, with an agile BPM platform

and soft template based approach, the

solution can be implemented rapidly

for the customer with minimum time

to market.



• Bank was running various applications and worried about upgrading the applications every time there was a change in the business process

• Bank wanted to achieve business agility by moving to a common platform for all the processes which could be changed easily

15 Trade Finance Processes were automated under the following processes

• Letter of Credit (LC)

• Export Settlement

• Letter of Guarantee Issuance & Amendment

• Shipping Guarantee Issuance

• Trust Receipt Settlement

ŸProviding business agility by enabling frequent process changes

ŸReduced Turn-Around-Time for LC/LG issuance

ŸAvailability of online images for verification

Ÿ Improved exception handling and tracking

ŸEnhanced compliance with complete accountability

Enabling Agility in Trade Finance for a leading bank in EMEA

Retail Banking

A/c Opening &Maintenance

Term DepositServices

CustomerServices

Customer RequestManagement

ATM StatementsProcessing

Locker/CustodialServices

PoS A/cManagement

Statements Archival

CRM ImageEnablement

StatementsConsolidation &Distribution

Corporate / Commercial

Cheque ClearingProcess

Remittance

PDC Operations

Interest/DividendWarrants

Inward & OutwardClearing

LC Issuance &Amendment

Cheque Archival

Cash ManagementServiceCheque Collection/Bulk Pay Orders

Capturing Documentsat the point of sale

Adhoc Contractsgeneration

Shipment Credit

Bank Guarantee

Commercial Loans

Term Lending

Applications

Credit Cards & Third Party

Credit Card Issuance

Credit Card Servicing

Chargeback

ATM Statements Processing

Bancassurance

Utility Bill Management

Reconciliation of Visa and Master

Payment & Settlement

Fund Transfer

SWIFT Virtualization

Forex Cheque Processing

Foreign Inward Remittances

Foreign Outward Remittances

100+ processes (e-Serve); pioneering work

20,000 checks in 4 hours; Loan Proc Request Mgmt System

55 processes across LOBs implemented in just 8 months

450 branches in 22 countries, 4 languages

Account Opening, Loan Disbursal – TAT reduced to 1 day

700+ branches automated in 2 years; 40,000 loans per month

30 min consumer loan approval in 4 countries

40% reduction in Account Opening Process TAT

Signature Management System, Inward Clearing Process

Ombudsman Process, Integration with Core Banking Finacle

Loan and Credit Card Processing with Score Check app

Loan Admin Process, Interface in Bulgarian, 250 branches


Business Process Management Suite

OmniFlow is a platform-independent, scalable Business Process

Management Suite (BPMS) that enables automation of organizational

business processes. OmniFlow is designed to ease the creation,

deployment, modification and management of Business Processes.

Built using open technologies, it has seamless integration abilities

allowing it to be introduced into any IT infrastructure.

™

OmniDocs is an Enterprise Content Management (ECM) Suite for

creating, capturing, managing, delivering and archiving large volumes

of documents and content. OmniDocs manages Scanned Document

Images, Electronic Documents and Emails as records. It also supports

seamless integration with other enterprise applications.

Enterprise Content Management Suite

™

OmniScan is a production and distribution software scanning for

document image capture. It supports distributed scanning, image

quality enhancement and delivery of documents to business systems.

Production and Distributed Scanning Suite

™OmniReports stores trillions of computer-generated output pages

and reports in a highly compressed form. It has a high-speed ingestion

process with simple interactive definitions, enables instant access to

terabytes of reports independent of business application, and is fully

searchable at field/row/page levels. OmniReports is ideal for sun-

setting of business applications as well as optimizing core system

performance by purging historical reports.

Enterprise Reports Management and Archival

™

Newgen's Omni Output Management System (O2MS) delivers

smarter & targeted communications for better customer

experiences. It offers the capability of leveraging prime paper space

for customer centric inline advertisement, consolidation across

multiple products. It enables secure communication on improved

templates with rich designs and graphical representation of analytics

across multiple distribution channels. In addition easy archival &

retrieval of correspondences for presentment & efficient customer

request resolution is achieved using this enterprise application.

Customer Communication Management

™

Newgen’s Invoice Processing System, with automatic data verification

and validation capability, is a solution for automatic data capture

from semi-structured invoice documents. It also supports seamless

integration with SAP and other ERP’s.

Invoice Processing System

™

OmniExtract is the data capturing solution which extracts business-

critical information from image documents and forms. It can extract

all possible kinds of information like Hand-printed/ Handwritten

Characters, Optical Marks, Barcode, Machine-printed Characters

and MICR Fonts.

Forms Processing Engine

™

Governance, Risk & Compliance

Compliance Manager is an integrated solution for Governance, Risk

and Compliance that’s geared to ensure compliance with standards,

best practices and guidelines of various regulatory acts.

™

Newgen’s ChequeFlow is an image based Cheque Processing

solution for inward and outward clearing. Advanced and highly

configurable sub-systems for Automatic Signature Verification,

FOREX Cheque Processing, PDC Management, ECS/ACH

mandates, add-ons for Cheque Deposit Machine/ Kiosks.

Image-Based Check Clearing & Payment

™

Our Products

Value for Money

2011 BPM Decision Matrix

2010 BPMS & 2011 ECM MQ

Reports

®

Proven for Large volumes

Flexible andCost Effective

2011, DOCCM Wave Report

What Analysts Say Investors


About Newgen

• Leading Global Provider of Business Process Management (BPM), Enterprise Content

Management (ECM) & Customer Communication Management (CCM)

• 900 installations across 50 countries

• Solutions for Banking, Insurance, Healthcare, BPO/SSCs, Telecom and Government

• Credited with some of the world's largest implementations

• Innovative culture, consistent R&D investments, 35 patents

• Employee strength 1100+

• Certified for ISO 9001:2008, ISO 27001:2005 and CMMI Level3

“Marfin Laiki Bank is known for its innovating culture and focus on bottom line. The bank was always on the lookout for embarking on initiatives

like enterprise content management and business process management to introduce new ways of doing business improve operational efficiencies

and service levels. Newgen Software Technologies with vast experience in the finance and banking industries, has been the ideal partner for us in

realizing these initiatives, as it offered us a complete, comprehensive and mature set of tools and technologies that simply make things happen ...

The quantifiable increases in productivity speak for themselves"- Marfin Laiki Bank

“… 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. TAT has been significantly reduced, leading to better customer

experience."- Deutsche Bank

“Simple, Easy & Powerful"- Bank Muscat

Moments of Pride

Newgen Software Pte Ltd.

Singapore 068909 Email: [email protected]

146 Robinson Road #03-00

Singapore

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