budapest, 2012. március 6 e-banking summit 2012 invisible banks, invisible client, e-banking...

Budapest, 2012. Március 6

E-Banking Summit 2012Invisible Banks, Invisible Client, E-

Banking

Business Process Outsourcing 2.0

2© 2012 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice 06/03/2012

Retos y Objetivos

Retos y Objetivos

Retos y Objetivos

Retos y Objetivos

Challenges & Objectives for Banks in the E-Banking Era

BPO 2.0 - Operating Model in the e-Banking Era

Success Stories

AGENDA

Retos y ObjetivosBusiness Process Outsourcing




Success stories

Business Process Outsourcing


What is BPO?

The delegation of business processes to an external provider that, in turn, administrates and manages the selected processes based on defined and measurable performance metrics. Some examples of business processes includes finance and accounting, logistics, procurement, HR, CRM, or other administrative or customer-facing business functions

The worldwide business process outsourcing (BPO) market is forecast to grow > 4% yearly in the next three years.



BPO & HP Business Services Portfolio

INDUSTRY SOLUTIONS

BPO SERVICES

Health and Life

Sciences Services

Financial Services

Transportation Services

Communications, Media & Entertain. Services

Government Services

Customer Relationship Management

Finance & Administration

HRO & PayrollDocument Processing

1.5 billion cheques

8 million contactless Payment cards

More than 25,000 professionals are dedicated specifically to helping clients in the financial services industry improve performance and increase profitability Thousands of professionals manage

our customers’ business processes in the Financial Services Industry, helping them to improve their performance and increase their profit.

5 billions of credit cards transactions

managed

1500 millions checks

managed

0,8 millions

mortgages managed

45 millions credit cards

accounts managed

2.5 millions

consumer loans

managed

SIGNIFICANT PRESENCE

#2 Multi-services Global BPO Provider

NelsonHall 2011

LeaderEverest 2011 FAO Annual

Report

#2 US Healthcare Payer BPO Provider

NelsonHall 2010

Major PlayerIDC 2010

Contact Center Services

MarketScape


Best-ShoreBangalore (2), Chennai (2), Pune (2), Mumbai*, Costa Rica, Wroclaw

• $2.7B in revenue

• Over 300 clients in 26 countries

• Thousands of service professionals

• 30+ years experience in BPO

• 65 shared centers.

• More than 48 languages supported.

• Technology Platform based on our industry standards.

• Different delivery alternatives: On-, near-, and off-shore, with flexibility for workforce balance across different centers.

• Work teams with broad knowledge in Financial sector.

Local CentersDes Moines, Ocala, Guadalajara, Barcelona, Bucharest, Budapest, Singapore, Dalian, Mitterteich, Sao Paulo, Buenos Aires, Australia, New Jersey*, London*

Global Governance Model

HP a leader in Business Process Outsourcing

Maturity in talent and resource management

Integrated and consistent model




Success stories




HP Strengths:• Technology leader.

• BPO leader in the Financial Market.

• Demonstrated capability in BPO Services (Front and Back Office) with locations On, Near and Off shore.

• End-to-end capability (ITO, Apps and BPO).

“Partner” Relation• Establishment of a trusting long-term strategic relation allow to collaborate on:

Reducing operating costs associated with these services ,estimated in some cases in up to 30%.

Minimizing the impact of project start-up costs by anticipating efficiencies.

•Our price-oriented approach will have a cost aligned with the business development.

HP Solution:• Highly consolidated

locations to run BPO Financial Services On, Near and Off shore.

• Service transfer with minimum risk and without detriment to quality or effectiveness.

• Use of proven methodologies and best practices.

• Use of technologies and tools specifically designed for BPO services.

• People transition.

Main objectives of the Banks:

• Operating cost reduction.

• Service quality improvement.

• Service scalability and flexibility.

• Increase knowledge about the final customer.




Success stories



Subsidiary / Join Venture / Own Company

Technology Partner

Managing Partner

Subsidiary / Join Venture / Own Company

PROPERTY MODELS

RIS

K A

ND

CO

MPLE

XIT

Y L

EV

EL

RELATION LEVEL WITH PROVIDERS (internal / external)

2000s90s80s 2010s

Service oriented to tasks

• Customer systems

• FTE invoice model

• Platform oriented to service management by product

• Invoice model by product

Service oriented to business (BPO 2.0)

• Specialized suppliers

• Invoice model variable for operation

Service oriented to process

•Operations Centralization in Head Office

•Creation of the Operations areas

• First initiatives of process automation

•Outsourcing of independent processes

• Lack of Outsourcing model

• New services

• Knowledge outsourcing

• Control of the shared process

Centralization Creation of the Operations areas Basic Outsourcing Advanced

Outsourcing

•Process Control by supplier•Industrialization

Process Control Centre

BPO 2.0 – Operating Model Evolution

E-Banking development


EFICIENCY

V -

BPO 2.0 – Understanding the environment: Value Map

Traditional Back Office

VA

LUE

E-Banking: CRM Inbound

E-Banking: CRM Inbound Call Reduction

Shared Services Centers

Document Handling

Scanning &

Printing

E-Banking: CRM

Outbound

Industrialization


Respond to rapid changes in business conditions

Ability to add new services and absorb activity growth or reduction

Business Requirements BPO Challenges

Mitigate risk and ensure complianceQuick introduction of Models and Technologies BPO Services to support changes in business needs

Predict, manage and reduce costs

Improve the productivity of the workforce

Fast integration in mergers and acquisitions

Reduce complexity by standardizing and automating processes.Change to a model of BPO services

Create job security and flexibility, allowing teams to work according to the demands of work and priorities

Allocate adequate resources to quickly make a safe transition and transform the services according to current and future business needs

BPO 2.0 - Requirements and Challenges

Increase Knowledge about final customers

Ability to use any contact to obtain relevant information.


BPO 2.0 : Economic Model

Period 1 Period 2 Period 3 Period 4 -10

Pri

ce (

€)

Transition•Costs aligned to the volumes•Service Transition•Start the transformation: Investments•SLA•Efficiency from the

day 1

Transformation•Efficiency achieved through increased use of BPO tools and team organization• Increased capacity of service

Optimization•Common infrastructure, rationalized•Reduction by operation•Time to Market (products and features) - income generation potential•Risk management improvement

Operation•Continuous improvement•Lower cost per transaction•Continuous innovation•New services / products

Total Initial Cost

Price, achieving savings from day 1 through our funding

Price, achieving savings from day 1


HP VALUE

Banks Objectives:

• Cost vs. Quality• Unification of Management• Using Best Practices• Maintaining Business Knowledge • Benefit from the best technology• Improve controls• Increase flexibility and release capital• Increase transparency

BPO 2.0 – Service Excellence + Industrialization

1. OPERATION2. SERVICE MANAGEMENT.

3.PERFORMANCE MANAGEMENT 4. CENTRES 5. TECHNOLOGY

• Business Process Reengineering

• Quality• Talent Management• Security• SLA / KPI / Metric• Continuous

Improvement• Risk Mitigation

• Multiple locations• Centralization• Multi-Languages• Business Continuity

/ Disaster Recovery• Talent Pool

• Six Sigma Plus• Talent management• Regulatory

Compliance

• Facilities / Infrastructure Sharing

• Equipment Operation Support Resource Management

• Resource allocation according to needs / efficiencies

• Technology / investments amortized

• Intelligent Scan / Workflow tools

• Specific tools for the process

• IP technology• Information and

Communications Security

• Business Control Center (CNN)

ServiceExcellence

1

2

4

3

5


From Contact to Knowledge Center in the e-Banking Era

Virtual Assistant

Call

Multiple contact channels

Contact Manager integrated with CTI

MailCha

tSocial net

Telephony Platform

COMPREHENSIVE KNOWLEDGE

MANAGEMENT

VRU Management

Improvement proposals

Room in the user’s Intranet

KnowledgeDatabase

Quality

Customers

“ONE ANSWER = ‘N’ USERS”

CONTACT CENTER = KNOWLEDGE CENTER


BPO 2.0 – Back Office: Transformation Tools• Saving time and improving productivity and efficiency, through the automation of business processes• Improved process control through the standardization of working methods• Process improvement, greater flexibility according to business needs• Optimizing the flow of internal information with customers and suppliers• Integration of business processes

Work

flow

M

an

ag

er

• Image cleaning: removing background color, auto orientation, automatic cropping, and alignment ... • Extract information from printed and handwritten text, bar codes and checkboxes marked paper and electronic documents, structured (forms) or unstructured• Allows separation and automatic classification of documents• Online Learning: Training of data from the documents

Inte

lligent

data

re

cog

nit

ion

• Valuable organizational information is shared through the organization structure• Reduced training time for new employees• Retention of Intellectual Property of the work after the employee leaves the company

Know

ledg

e B

ase

•Optimize workforce allowing managers to make better decisions and take effective action• Reduce staff costs• Increase productivity• Improve employee satisfactionW

ork

forc

e

Man

ag

er


BPO 2.0 - Business Control Center (CCN)The Business Control Center is the result of an integrated vision control information:• Defining alarms on defined PKI‘s for targets tracking.• Generating information tailored to different levels of management.• Combining data from different sources and formats for analysis.• Getting consolidated data that provides an overview of the business.• Establishing a graphical representation of historical evolution.

CCN Objective:

Provide in real-time a comprehensive, clear and quantitative view of the efficiency of the operations, increasing the ability of business managers to make decisions based on real-time information.




Success stories



• An internal consulting study of the Operations departments in Head Office concluded that those departments received 146.000 calls per month about Financial operations from the office network

• A pilot process done by HP in 50 branches stated that the total number of calls was around 74.000 per month

• Some users in the office network called directly to Head Office when they had doubts

• Know the real number of calls• Call reduction• Call tabulation• Centralization of the calls in the Branch Support Centre

• Current number of calls: 35.000, -50% reduction in the number of calls• Head Office was released from the CRM tasks (resolution of operations doubts)• Control of the Service Level and Quality• Typified Calls: Integrated ticketing system in the telephony solution that opens tickets for each call and follow up and define their type• Operating procedures updated• Quality Control: Control system of formal and perceived quality of content

+50% call

reduction

Success Story #1

Target: Transformation of the Branch Support Service

Init

ial

Sit

uati

on

Ob

ject

ive

Resu

lts


• Front office services in Head Quarters• Back office services decentralized in offices• Some services outsourced based on specialization of tasks (multi-vendor)• Knowledge leveraged in internal employees• Inability to predict operating costs• High cost of maintenance on the control of suppliers and knowledge

management

• Quantify and classify calls users and set reduction plan• Core activity in the office: Commercial• Unify back-office activities in processes, streamline, document and update• Reduce costs and make them variable• Create an information system for control and monitoring of service levels• Continuous improvement / technology investment

• Creation of Call Center operational offices• Implementation of CRM tools, system of direct queries. (Faq's, Intranet),

proactive systems to reduce inputs• Grouping of all back office processes and establishment of a plan of

industrialization• Implementation of a management tool for operational and business, both

internally and at suppliers• Savings of more than 20% in all processes managed front and back• The drop in revenue caused by reduced dynamism of economic activity, with the

cost variabilization has allowed costs to fall in proportion

Init

ial Sit

uati

on

Ob

ject

ive

Resu

lt

Target: Back Office Centralization + Outsourcing = Cost Savings

Success Story #2 Cost Reduction

+20%

KÖSZÖNÖM SZÉPEN

THANK YOU

GRACIAS

budapest, 2012. március 6 e-banking summit 2012 invisible banks, invisible client, e-banking...

Documents

ebanking era bpo

financial services industry

business functions

customers business processes

examples of business

ebanking summit

millions credit cards

millions mortgages