delivering the future of banking today
DESCRIPTION
Banks must seek new competitive advantages in response to changes in customer trust, demographics, and demands as well as profit margins reduced by higher capital requirements, compliance costs, and lower fee income. While most banks have made customer-centricity one of their highest priorities, the recent global financial crisis has led to an erosion of customer loyalty. Meanwhile, banks find that distribution through branch networks and the Internet are inadequate for satisfying demands among younger customers for service “right here, right now.” An evolving market brings additional challenges such as higher costs of capital and funding. As investors and banks increasingly share risk, banks face greater government supervision of the industry, new requirements for capital coverage, and higher compliance costs. Greater transparency in pricing has caused, especially in the retail markets, a reduction in (or even the elimination of) fees, which is further eroding margins. As customers demand real-time, multichannel, and mobile transactions, it has become clear that customer-centricity requires changes in business and operating models to rebuild margins and maintain customer loyalty. To attract everyday customers, banks need real-time processes that are accessible via all channels (including mobile and tablet devices) to deliver relevant up-to-theminute analysis whenever they are needed.TRANSCRIPT
Industry Executive Overview
SAP for Retail and Commercial
Banking
Delivering the Future of Banking Today
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
© 2013 SAP AG
© 2013 SAP AG 2 / 44
Delivering the Future of Banking Today
Banks must seek new competitive advantages in response to changes in customer
trust, demographics, and demands as well as profit margins reduced by higher
capital requirements, compliance costs, and lower fee income.
While most banks have made customer-centricity one of their highest priorities, the recent global
financial crisis has led to an erosion of customer loyalty. Meanwhile, banks find that distribution
through branch networks and the Internet are inadequate for satisfying demands among younger
customers for service “right here, right now.”
An evolving market brings additional challenges such as higher costs of capital and funding. As
investors and banks increasingly share risk, banks face greater government supervision of the
industry, new requirements for capital coverage, and higher compliance costs. Greater
transparency in pricing has caused, especially in the retail markets, a reduction in (or even the
elimination of) fees, which is further eroding margins.
As customers demand real-time, multichannel, and mobile transactions, it has become clear that
customer-centricity requires changes in business and operating models to rebuild margins and
maintain customer loyalty. To attract everyday customers, banks need real-time processes that are
accessible via all channels (including mobile and tablet devices) to deliver relevant up-to-the-
minute analysis whenever they are needed.
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
Delivering the Future of
Banking Today
Market Situation
Transformation Through
Technology Innovation
Business Priorities
SAP Innovations
© 2013 SAP AG 3 / 44
Exceed today’s customer expectations.
Immediate processing
Real-time banking provides immediate responses to customer requests.
Enhanced visibility
Employees get 360-degree visibility into transactions, their customers, or risk.
Increased Agility
Banks must react quickly and flexibly to new market, product, and regulatory requirements.
Real-time processing gives banks greater transparency and agility in areas such as risk, finance,
and sales to help them respond appropriately in the moment.
Embracing “Real” Real-Time Banking
Real-time processing gives banks greater transparency and agility in areas such as
risk, finance, and sales to help them respond appropriately in the moment.
Best-Run Retail and
Commercial Banking
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
Delivering the Future of
Banking Today
Market Situation
Transformation Through
Technology Innovation
Business Priorities
SAP Innovations
© 2013 SAP AG 4 / 44
The best-run banks meet customer and market demands by flexibly and rapidly
responding to customer needs through multiple channels and industrializing their
offerings through efficient manufacturing to support new distribution capabilities.
Best-Run Banking Priorities
Understanding the value drivers for each of these priorities is key to becoming a
best-run financial-services company.
Retail Banking Operations
Commercial Banking Operations
Risk and Compliance
Sales and Service
Multichannel
Finance
People and Talent
Procurement
IT Management
Technology Solutions
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
Delivering the Future of
Banking Today
Market Situation
Transformation Through
Technology Innovation
Business Priorities
SAP Innovations
© 2013 SAP AG 5 / 44
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
Delivering the Future of
Banking Today
Market Situation
Transformation Through
Technology Innovation
Business Priorities
SAP Innovations
For over 40 years, SAP’s innovations have helped companies transform and achieve the goals
they never thought possible – making more informed decisions and innovating to lead in new
markets. SAP enables the real-time enterprise, empowers new experiences, and unwires the
business.
Enable the Real-Time Enterprise
SAP’s integrated, real-time analytical, predictive, and in-memory database solutions improve the
business value of your information and optimize business outcomes.
Empower New Experiences
The SAP software solutions allow you to deliver simple, elegant, real-time applications rapidly
across any device, with the superior consumer-grade experience users have come to expect.
Unwire the Business
Connect with your customers, partners, and employees efficiently and securely with a market-
leading mobile platform and device management technologies from SAP.
Business Transformation Through Technology
Innovation
Revenue growth and profit are no longer sufficient benchmarks for success. In
today’s economy, companies need to stand out in crowded and highly competitive
markets. The pace of business is relentless, where today’s innovation becomes
tomorrow’s status quo. Organizations that embrace technology can transform to
gain a significant advantage rapidly over the competition.
© 2013 SAP AG 6 / 44
SAP Innovations
Banks can use innovations such as in-memory computing, big-data analytics, and
cloud-based commerce and business networks consumption to satisfy customers
while maintaining control of business risk and profitability.
Banks can use mobile technology to expand beyond their branches and reach traditional
customers at the local mall or unbanked customers in remote areas. Banks’ business customers
want immediate access to payments, reports, and execution on the go – using solutions such as
the SAP Financial Services Network, delivered via the cloud.
In-memory computing with the SAP HANA platform answers and exceeds needs for real-time
operational use of analytical data — such as liquidity risk management and multichannel analysis
for real-time offer decisions. This technology revolutionizes the way banks deal with the
performance challenges of “Big Data”. The continued drive for efficiency in corporate functions will
see cloud deployment models using low-cost and secure platforms for nonstrategic functions (such
as HR, payroll, finance, and procurement) while ensuring security and integration simplicity across
end-to-end-business processes.
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
Delivering the Future of
Banking Today
Market Situation
Transformation Through
Technology Innovation
Business Priorities
SAP Innovations
© 2013 SAP AG 7 / 44
Comprehensive solutions for commercial and retail banking.
Retail and Commercial Banking Value Map
Retail Banking Operations
SAP Solutions
Commercial Banking
Operations
Sales and Service
Risk and Compliance
Multichannel
People and Talent
Finance
IT Management
Procurement
Technology Solutions
Retail Banking
Operations
Retail Deposits
Retail Lending
Centralized Payment
Processing
Finance Finance
Transformation
Performance
Management
Finance and Risk Data
Management (IFRA)
Collaborative Finance
Operations
People and
Talent Core Human
Resources and Payroll Talent Management
Workforce Planning
and Analytics
Procurement Supplier Discovery and
Lifecycle Management
Strategic Sourcing
and Contracting
Procurement and
Order Collaboration
Collaborative Invoice
to Pay
IT Management Application Lifecycle
Management
IT Infrastructure
Management
IT Portfolio and
Project Management
IT Service
Management
IT Strategy and
Governance
Multichannel
Mobile Customer
Internet Banking
Call Center
Automated Teller
Machines
Sales and Service
Customer Acquisition
Customer Management
Social Media
Engagement
Risk and Compliance
Credit Risk Management
Liquidity Risk
Management
Governance, Compliance
and Surveillance
Enterprise Risk
Reporting
Commercial Banking
Operations
Cash and Liquidity
Management
Commercial Lending
Leasing
Financial Services
Network
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
Technology
Solutions
Analytics Consumer Experience Data Management Enterprise Mobility
SAP HANA Platform
Application Develop-
ment and Integration
© 2013 SAP AG 8 / 44
Putting the customer at the core of your business requires
a move away from product silos and inaccurate client
data. The best-run banks need a 360-degree view of their
customers to offer them more relevant products.
Retail Banking Operations
Responding to new customer demands has
traditionally meant adding more IT complexity
at an ever-increasing cost, because product
and customer systems lacked the flexibility to
satisfy these demands. Taking an
industrialized, building-block approach toward
the manufacture of new products can reduce
their time to market.
Banks can create their services, product
bundles, and offers at low cost and with
minimal additional front-end workload – thereby
eliminating workaround processes and process
breaks. This new manufacturing efficiency also
supports agile, customer-centric distribution. It
ends the trade-off between efficiency and
flexibility to increase revenue while decreasing
cost.
16% Of companies have a 360
degree view of customers
Source: SAP Performance
Benchmarking
Priorities
SAP Solutions
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
SAP Solutions
Retail Banking Operations
© 2013 SAP AG 9 / 44
Benefits
Real-time transparency and issue resolution
Cost reduction via module preintegration
Real-time product and offer creation
Increased productivity via best practices
Multichannel relationship pricing
Proven, scalable support across all layers
Retail Banking Operations
Reducing operational costs while increasing agility.
Drive the lowest unit cost of production and foster agility for mass individualization,
ongoing innovation, and improved margins across the customer relationship.
Retail Deposits Manage and monitor the entire account contract lifecycle – from transactions and
agreements to statements.
Retail Lending Accelerate time to market and innovation using simple configuration. Support the full loan lifecycle with efficient workflow and knowledge management to maximize loans supported per employee.
Centralized Payment
Processing
Lower ownership cost by simplifying and centralizing payment processes across business and product lines and opening new revenue streams from value-added services.
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
SAP Solutions
Retail Banking Operations
Priorities
SAP Solutions
© 2013 SAP AG 10 / 44
The best-run commercial banks aim to be a part of their
customers’ financial supply chains, meet new regulations,
and enhance service by using scalable, low-cost
transaction engines to become more agile.
Real-Time Efficiency: Commercial Banks
The best-run commercial banks have
transformed their business and IT processes to
respond immediately to customer requests and
integrate with customer financial supply chains.
They have reduced costs through process
standardization, tailored offers to customer
needs, and swiftly responded to new demands
and regulatory changes.
Operating in real time lets you adjust flexibly to
new market requirements. You can give
customers 360-degree visibility and direct control
of their global cash positions, regardless of time
and location. Integration with their business
systems fosters end-to-end, straight-through
payment processing and reduces costs.
New cloud commerce models for corporate
connectivity can reduce the cost of on-boarding
corporate clients. It can lead to faster time to
revenue when acquiring new clients, while
lowering transaction costs and increasing
customer proximity.
39% Lower compliance and risk
management FTEs where a risk
management system supports
automated reporting and alerting
to facilitate risk management
Source: SAP Performance
Benchmarking
Priorities
Commercial Banking
Operations
SAP Solutions
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
SAP Solutions
© 2013 SAP AG 11 / 44
Benefits
Improved cash flow and liquidity
Real-time product and offer creation
Faster on-boarding of corporate clients
Lower operating and client acquisition fees
Fast reply to regulatory and market
changes
Real-Time Efficiency: Commercial Banks
Greater ability to utilize Big
Data to gain insights with a
well-established analytics and
data-modeling center of
excellence
Source: SAP Performance
Benchmarking
The real-time commercial bank – increasing agility while decreasing costs.
The best-run commercial banks are essential to their customers’ financial supply
chains, reducing their working capital costs through agility and cost efficiency.
Cash and Liquidity
Management Optimize the use of cash held throughout the corporate relationship.
Commercial Lending Accelerate time to market for new product offerings and innovation through simple configuration and flexibility.
Leasing Support the full leasing lifecycle for efficient transaction processing.
Financial Services
Network
Build a cloud-based, end-to-end platform for payments, and a services platform
that drives low-cost transactions and on-boarding of new corporate clients. 40%
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
SAP Solutions
Priorities
Commercial Banking
Operations
SAP Solutions
© 2013 SAP AG 12 / 44
Regulators are imposing new, complex regulations that
require on-demand access to highly granular risk and
finance information and drive banks to run stress tests in
real time.
Enhance Visibility: Risk and Compliance
Banks require a centralized risk and finance
platform for successful reconciliation of results.
On-demand access to huge amounts of highly
granular information related to credit, market,
operational, or liquidity risk lets banks readily
respond to internal stakeholders and
regulators, calculate risk, and define and run
stress test scenarios. 200 million Cash flow transactions
aggregated and presented in
less than 3 seconds
Source: SAP Performance
Benchmarking
Priorities
Risk & Compliance
SAP Solutions
Access to real-time information on liquidity cash
flows helps banks review various liquidity
scenarios, plan for future liquidity needs, and
manage performance according to risk-
adjusted metrics.
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
SAP Solutions
© 2013 SAP AG 13 / 44
Benefits
Reduce fraud and operational risk
Monitor, limit, and mitigate risk
Aggregate risk data in real time
Comply with Basel III and Dodd-Frank rules
Run stress-test scenarios in real time
Improve sanction testing
Enhance Visibility: Risk and Compliance
Integrated, on-demand access to enterprise risk information for enhanced
compliance.
On-demand access to risk information helps banks answer queries from regulators
and internal stakeholders and better mitigate risk.
Credit Risk
Management Calculate and mitigate credit risk.
Liquidity Risk
Management Access real-time information on liquidity risk and manage stress-testing.
Governance,
Compliance, and
Surveillance
Monitor and track operational risk, sanctions data, and fraud to comply with
industry regulations.
Enterprise Risk
Reporting Report, analyze, and visualize risk information on any device, from anywhere.
Executive
Summary
SAP Solutions SAP Innovations References
SAP Solutions
Priorities
Risk & Compliance
SAP Solutions
50-70% Potential improvement of
reporting efficiencies by
merging internal and external
finance and risk reporting
Source: SAP Performance
Benchmarking
© 2013 SAP AG 14 / 44
Empowered customers now demand exceptional service,
tailored offers, and more proactive advice. This includes
superior service from banks as customers seek to interact
anytime, anywhere, and on any device.
Sales and Service
Banks must be able to offer the right service, at
the right time, and at the right price to beat the
competition.
This requires a continuous focus on customers
through superior analytics and the ability to
capture and share information across the bank
that builds a single source of truth and a true
360-degree customer view. Such information
can provide the basis for real-time insight and
end-to-end transactions that meet customers’
financial needs. It can also fulfill customers
wishes to carry their offices with them, using
tablet devices.
Subsequent execution and servicing of offers
should be seamless, immediate, and highly
visible to customers. Errors should be corrected
and refinements made in real time or through
self-service channels. Consistency is required
in originations processes and the servicing of
offer lifecycles.
92% Customer satisfaction rate
achieved by best-in-class
customer service
organizations
Source: SAP Performance
Benchmarking
Priorities
Sales & Service
SAP Solutions
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
SAP Solutions
© 2013 SAP AG 15 / 44
Benefits
Improve and streamline business processes
Generate flexible products and offers
Manage offers and risk in real time
Generate value from social media
Significantly reduce cost of change
Support consumer and enterprise mobility
Sales and Service
Higher new product revenue as a
percentage of revenue where new
product ideas are captured from
all stakeholders through multiple
channels (including social media)
Source: SAP Performance
Benchmarking
Enabling multichannel distribution that is consistent, proactive, and agile.
The best-run banks use SAP software support for sales, service, and marketing for
context-sensitive cross-sell and up-sell offers and profitable product and service
bundles.
Customer Acquisition Anticipate customer needs and provide consistent interaction across channels
that are simple, flexible, and easy to use.
Customer
Management
Deliver a real-time, 360-degree view of customer interactions, immediate
resolution, visibility, and full support for the offer and product lifecycles – including
eligibility and pricing.
Social Media
Engagement
Analyze social media and integrate it into traditional channel services to drive
complaint resolution as well as lead generation and management.
24%
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
SAP Solutions
Priorities
Sales & Service
SAP Solutions
© 2013 SAP AG 16 / 44
Superior customer experience requires state-of-the-art
interfaces that are reliable, convenient, and harmonized.
Profitable banks control costs for integrating and
maintaining channels while creating innovative new
offerings.
Multichannel
Banks can achieve customer satisfaction with
convenient, simple, and harmonized
transactions.
Combining self-service channels and
interaction centers facilitates on-demand
service requests via phone or e-mail. Banks
can use call centers to make new offerings
available, set up appointments with relationship
managers, or administer a customer
satisfaction survey.
New, channel-specific services bring value to
customers and increase profitability.
By maintaining distribution channels separately,
banks can readily offer channel-specific
features. Decoupling the user interface from
business functionality helps banks adopt new
technology and create bank-specific interfaces
and branding.
A central process-orchestration platform can
simplify channel integration and reduce
integration costs. 96% Higher revenue growth where
organizations enable almost
all users with mobile CRM
Source: SAP Performance
Benchmarking
Priorities
Multichannel
SAP Solutions
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
SAP Solutions
© 2013 SAP AG 17 / 44
Benefits
Accelerated time to market
Access to new markets
New marketing channels
Propensity-based selling
Lower-cost distribution
Higher cross-sell rates
Multichannel
Higher total revenue from new
customers for the top 25% of
organizations as compared
with average organizations
Source: SAP Performance
Benchmarking
Delivering more value, convenience, and satisfaction through multichannel
banking.
Multichannel success requires the leveraging of back-end product platforms and
the orchestration of sales and service analytics to operationalize execution.
Mobile Customer Deliver best-in-class consumer and enterprise functionality that is easy to deploy
and accelerates time to value.
Internet Banking Build a single software platform to support all digital channels and allow
seamless handoffs from unassisted to assisted channels.
Call Center Support assisted channels to provide transparency and proactively drive
execution and cross-selling.
Automated Teller
Machines Create services and products for the next generation of kiosk ATMs. 47%
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
SAP Solutions
Priorities
Multichannel
SAP Solutions
© 2013 SAP AG 18 / 44
More than ever, CFOs must balance sound stewardship
with value creation to meet the needs of regulators,
shareholders, and internal stakeholders – while
streamlining financial operations, reducing costs, and
improving financial performance.
Finance
Retail and commercial banks face several
major challenges today. They must transform
their operations to meet new regulations, such
as the Dodd-Frank Act and Basel III, and
manage liquidity in a climate of sustained
volatility and tight capital. In addition, they must
outperform their financial objectives and create
sustainable value for their many stakeholders. 76% Higher margin where a
finance system allows for
historical and forward-looking
views into financial and
operational performance
Source: SAP Performance
Benchmarking
Priorities
Finance
SAP Solutions
To stay competitive in an increasingly crowded
market, they must also deliver superior
products and service to their customers at
reduced cost.
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
SAP Solutions
© 2013 SAP AG 19 / 44
Benefits
Comply with IFRS 9 and Basel III rules
Deliver superior service at reduced cost
Outperform financial objectives
Create sustainable value
Reconcile risk and finance figures
Improve regulator and consumer trust
Finance
Of company revenue that
goes to finance costs among
top-quartile performers versus
more than 1.2% for the
bottom quartile
Source: SAP Performance
Benchmarking
Achieving financial excellence.
Build a platform to meet the challenges of the Dodd-Frank Act and Basel III
regulations and provide reconciled accounts and real-time financial and risk insight.
Finance
Transformation Transform finance to provide external and internal stakeholders with the IFRS 9
financial information they need in the right format, at the right time, and at a low cost.
Performance
Management
Consolidate figures, plans, and budget resources, and meet financial metrics that
improve profitability and performance.
Finance and Risk Data
Management (IFRA)
Create a single platform to meet the integrated requirements of IFRS 9 and
Basel III bank regulations.
Collaborative Finance
Operations
Automate transactional processes for increased efficiency, effectiveness,
collaboration, and service with lower cost. 0.4%
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
SAP Solutions
Priorities
Finance
SAP Solutions
© 2013 SAP AG 20 / 44
People and talent are key competitive advantages in
today’s fast-changing business environment. Best-run
banks achieve profitable growth by leveraging their talent
and out-innovating the competition.
People and Talent
For organizational growth and an agile
response to business change, banks must give
people the knowledge and technology to
facilitate innovation. They must also move into
new markets, adapting to local practices and
tapping the right local talent. In addition, they
must identify and retain new talent acquired
through mergers and acquisitions. 32% Less employee turnover by
using analysis of workforce
data to design, implement,
and monitor workforce
optimization strategies
Source: SAP Performance
Benchmarking
Priorities
People & Talent
SAP Solutions
Organizations that quickly respond with the
right talent in the right places will have a unique
advantage in the marketplace.
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
SAP Solutions
© 2013 SAP AG 21 / 44
Benefits
Reduced employee turnover
Improved employee engagement
Alignment of HR and business strategies
Higher revenue per full-time equivalent
Reduced HR cost per employee
Real-time insight into business needs
People and Talent
More employees supported
per full-time HR employee
with automated reporting
Source: SAP Performance
Benchmarking
The new world of work.
Enable growth and sustainability by coupling global capabilities, integration, and
real-time insight with choice in the way HR processes and services are delivered.
Core Human
Resources and Payroll Consolidate HR and payroll processes on a common global platform to enhance
workforce data and legal compliance.
Talent Management Identify and analyze talent gaps and streamline workforce planning for efficient
and effective management of workforce demand and supply.
Workforce Planning
and Analytics
Harness the power of Big Data to predict and plan more accurately for
employee demands.
24%
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
SAP Solutions
Priorities
People & Talent
SAP Solutions
© 2013 SAP AG 22 / 44
While companies often focus on revenue, procurement
savings can increase profits about five times more than
revenue. The key to maximizing these benefits is
delivering consistent quality, savings, and compliance
over time.
Procurement Excellence
Procurement leaders set a baseline for success
by implementing best practices, excelling in
category expertise, and working with key
stakeholders on cost control programs.
While savings is always a priority, new
objectives have emerged as well. Procurement
must manage supplier risk and performance,
improve process efficiency, drive innovation,
and ensure sustainability practices.
You need solutions that offer the tools to cut costs
and add value while supporting processes such
as spend analysis, sourcing, contract
management, operational procurement, supplier
information management, and risk and
performance management. Such solutions are
available both on premise and in the cloud.
Robust procurement tools, when coupled with an
unparalleled collaborative business network,
drive real-time insight and efficiency.
60% Improvement in annual
average savings resulting
from leveraging technology
for sourcing and procurement
processes
Source: SAP Performance
Benchmarking
Priorities
Procurement
SAP Solutions
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
SAP Solutions
© 2013 SAP AG 23 / 44
Benefits
Optimize spend under management
Increase average annual savings
Decrease FTE per billion in spend
Drive innovation with suppliers
Reduce cost and risk with faster turnaround
Procurement Excellence
Lower (FTE) per billion in
spending for companies
conducting electronic supplier
collaboration on a network
Source: SAP Performance
Benchmarking
Drive sustainable savings while supporting innovation.
Ensure best practices in the source-to-pay process, on premise, or in the cloud,
while leveraging the power of network collaboration for efficiency and insights.
Supplier Discovery
and Lifecycle
Management
Find new suppliers through cloud-based groups such as the Ariba network and
manage these relationships more effectively.
Strategic Sourcing
and Contracting
Identify and act on sourcing opportunities and create favorable, low-risk supply
contracts.
Procurement and
Order Collaboration
Realize savings with compliant, user-friendly self-service procurement and make
transactions more efficient by collaborating on the Ariba network.
Collaborative Invoice
to Pay
Drive invoice automation and exception management with available dynamic
discounting on the Ariba network. 55%
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
SAP Solutions
Priorities
Procurement
SAP Solutions
© 2013 SAP AG 24 / 44
Business enterprises should forge a strategic business
partnership with their IT organizations by aligning goals.
Business-oriented IT management is all about maximizing
efficiency and responsiveness by running IT like a
business.
IT Management: Run IT Like a Business
A recent study conducted by Gartner shows that
lines of business want to ascertain the value of
their IT investments. IT organizations no longer
decide alone which IT projects to fund.
The challenge is that IT management is often
seen as just running the technical landscape. To
become more relevant to an enterprise, IT needs
to reposition itself to run like a business.
SAP offers an integrated portfolio of solutions to
do just that. New technologies like mobile, in-
memory, and cloud computing generate value to
a business in an unprecedented way.
However, these new technologies also make IT
landscapes more complex, requiring more tools
to manage them. By leveraging SAP solutions
to follow best practices, CIOs, CEOs, other
executives, management, and employees can
tap into and help ensure efficiency, continuity,
and responsiveness – making IT more strategic
to the business.
36% Higher operating margin
where organizations use IT
to enable strategic and
competitive advantages
Source: SAP Performance
Benchmarking
Priorities
IT Management
SAP Solutions
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
SAP Solutions
© 2013 SAP AG 25 / 44
Benefits
Better alignment of IT to business strategy
Shorter IT delivery and business cycles
Lower ratio of IT budget: profits/IT upkeep
Reduced system upgrade and operation costs
Lower cost of risk mitigation/revenue loss
Lower downtime of critical business systems
IT Management: Run IT Like a Business
More projects delivered on
or below budget by top IT
management performers
Source: SAP Performance
Benchmarking
Evaluate and control risk, help ensure flexibility and scale, control and optimize
costs, and maximize strategic value.
Ensure business continuity, drive efficiency, increase IT responsiveness to business
objectives – with IT management solutions designed for businesses of any size.
Application Lifecycle
Management Use application lifecycle management best practices, methods, and services
based on IT infrastructure library (ITIL).
IT Infrastructure
Management
Monitor all network assets to drive integrated infrastructure and application
lifecycle.
IT Portfolio and Project
Management Align the portfolio and manage projects to drive innovation efficiently.
IT Service
Management
Align service-desk operations with service-level agreements (SLAs), quickly
resolve SLA incidents, and adopt ITIL best practices as business goals change.
IT Strategy and
Governance
Track IT costs and risks and map risks and compliance activities to business
impact.
1.9x
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
SAP Solutions
Priorities
IT Management
SAP Solutions
© 2013 SAP AG 26 / 44
Businesses drive transformation through technology
innovation. Real-time enterprises improve information
value, innovate developer and user experiences, and
unwire the business to engage effectively with customers,
partners, and employees.
Technology Solutions
Technology solutions can make the difference
between surviving and thriving. As users
become savvier, their needs escalate.
Increasingly, users expect real-time insights,
predictive analysis, and real-time access to
applications from the latest mobile devices.
They expect seamless integration of these
functionalities with their favorite social
platforms.
At the same time, data volumes are exploding
while the window to optimize opportunities is
shrinking. Users need access to information
available in an entirely new class of real-time
applications. Developers need a platform for
innovating more rapidly than ever before.
Banks today need to empower their workforce
with consumer-grade business applications to
increase productivity and competitiveness.
Banks have an unprecedented opportunity to
deliver new levels of customer engagement
through innovative consumer-style applications.
Priorities
Technology Solutions
SAP Solutions
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
SAP Solutions
“Cloud, social networking,
mobility and the strategic use
of information are the four
forces that combine to create
a new era of computing and
new opportunities for
business.”
Source: Gartner, “SAP Is Driving
Analytics, Cloud and Mobility in the
nexus of Forces,” Donald Feinberg,
August 24, 2012
4
© 2013 SAP AG 27 / 44
Benefits
Quickly build secure mobile applications
Monetize data held in back-end systems
Address market threats and new regulations
Increase employee engagement
Unwire the business to improve engagement
Reduce time to value and speed up innovation
Technology Solutions
Innovations shaping the future of banking.
Free up resources for running the bank, enhance competitiveness, and appeal to a
new generation of customers with real-time banking via their preferred channels.
Analytics Leverage data with real-time analytics, business intelligence, predictive analysis,
and performance and risk management.
Data Management Get good information to your enterprise and manage data with scalability, trust,
and unmatched performance.
Application Develop-
ment and Integration
Develop applications and innovation rapidly in a mobile, always-on world of
collaborative business networks for secure, cloud-scale applications.
Enterprise Mobility Unwire employees, customers, and partners with highly-rated mobile solutions.
Consumer Experience Use real-time, consumer-grade software to increase productivity and
competitiveness.
SAP HANA Platform Streamline applications, analytics, planning, and predictive and sentiment
analyses.
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
SAP Solutions
Priorities
Technology Solutions
SAP Solutions
“Through 2015, organizations
integrating high-value,
diverse, new information
types and sources into a
coherent information
management infrastructure
will outperform their industry
peers financially by more than
20%.”
Source: Gartner, “Hype Cycle for
Information Infrastructure, 2012”
July 31, 2012, Michael Blechar
20%
© 2013 SAP AG 28 / 44
As bank customers increasingly use mobile channels for their transactions, banks must assure a
unified and secure customer experience across distribution channels. To serve customers more
effectively and present the next best offer, they must improve visibility into customer holdings and
transactions. To control risk exposure and meet regulatory requirements, banks need on-demand
access to risk data.
Bank employees must be empowered with analytics in visual dashboards and reports that are
simple to use. They need granular, real-time and predictive updates on risk, finance, operations,
and branch information. To provide services at a lower cost that can scale and adapt quickly,
banks need innovations such as cloud technology to complement their traditional business
systems.
For the last 40 years, SAP has led innovation in banking. A new generation of technology helps
banks better understand and serve the needs of their customers and ensure that employees have
access to the information they need to run their business more effectively.
Bank customers want a unified experience across
distribution channels plus real-time information on their
transactions and balances. They expect banks to have a
complete view of their holdings and risk exposure and to
use innovative technology for competitive services and
protection from fraud.
SAP Innovations
Applications
SAP Innovations
SAP HANA
Mobile
Analytics
Cloud
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
© 2013 SAP AG 29 / 44
Finance
SAP Business Suite on SAP HANA offers a real-time financial close on detailed data. Legal entity and
group are stored in the same repository, thus eliminating time-consuming reconciliation of
intercompany transactions.
SAP Business Suite on SAP HANA provides a revolutionary approach to payables management,
optimizing working capital and reducing days payables outstanding.
Risk and Compliance
Access risk management automates compliance activities and achieves real-time visibility of access
risk to reduce risk and adverse compliance events and improve operational efficiency.
Process risk management controls monitoring across policies and regulatory requirements using an
automated rules framework that enables quick deployment.
Sales and Service
By exploring the power of new analytical and data mining capabilities such as predictive analytics
banks can gain deep insights into their data that cannot be seen easily. Identify clusters of markets,
and leverage these insights to optimize targeting. With a 360-degree customer view, banks can grow
the business by offering products customers need and convert loyalty into revenue.
SAP HANA enables banks to access to customer, risk,
finance, and operations data and identify customers and
products, analyze risk, and optimize financial accounting.
The best-run banks can thus manage Big Data for
significant competitive advantage.
SAP Business Suite Powered by SAP HANA
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
Applications
SAP Innovations
SAP HANA
Mobile
Analytics
Cloud
© 2013 SAP AG 30 / 44
Real-Time Efficiency
Reduce risk and increase customer service through real-time analytics on the most granular
transactions and risk exposures.
Exceeding Customer Expectations
Integrate structured and unstructured data from multiple sources inside and outside the company
to meet and exceed customer expectations.
Enhanced Visibility: Risk and Compliance
Enhance visibility with a real-time holistic view of risk and finance that helps you meet new
regulatory challenges, protect customers from fraud, improve market segmentation, and offer new
services.
On-demand access to customer, risk, finance, and
operations data helps banks identify customers and
products, analyze risk, optimize performance, and limit
fraud. With SAP HANA and SAP Sybase IQ server, the
best-run banks can manage Big Data for significant
competitive advantage.
SAP HANA
100 Terabytes of data can be
stored in memory by
SAP HANA
Source: SAP Performance
Benchmarking
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
Applications
SAP Innovations
SAP HANA
Mobile
Analytics
Cloud
© 2013 SAP AG 31 / 44
Real-Time Efficiency
Give customers a secure and complete offering for on-demand, self-service access to payments,
purchases, and other remittance transactions.
Exceeding Customer Expectations
Offer convenient, low-cost channels to customers that allow transactions anytime and anywhere.
Enhanced Visibility: Risk and Finance
Gain insight into and act on risk exposures and respond immediately to regulator queries while on
the go.
Providing a complete and secure way to meet the
requirements of mobile commerce by introducing a
standard and convenient channel for communication and
transactions that supports mobile commerce from
anywhere at anytime.
Mobile
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
Applications
SAP Innovations
SAP HANA
Mobile
Analytics
Cloud
40% Higher employee productivity
where mobile access is
provided to employees across
all levels
Source: SAP Performance
Benchmarking
© 2013 SAP AG 32 / 44
Real-Time Efficiency
Gain granular access to transaction-level information, as it happens, to identify new products more
quickly, segment customers, and make up-sell offers.
Exceeding Customer Expectations
Empower thousands of employees with self-service access to information that helps them make
better business decisions in managing risk and finance, and serving customers across business
channels more effectively.
Enhanced Visibility: Risk and Finance
Reduce risk and fraud losses by predicting and protecting the bank from fraudulent transactions,
bad debts, and risk exposures and provide front-line employees with the customer insight they
need to offer better service.
Providing intelligent visibility into key performance
indicators across business, risk, finance, and customer
operations, as well as predictive analytics for fraud
reduction and customer insight.
Analytics
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
Applications
SAP Innovations
SAP HANA
Mobile
Analytics
Cloud
20% Higher revenue per employee
in organizations that are using
information to identify strategic
and competitive advantage
Source: SAP Performance
Benchmarking
© 2013 SAP AG 33 / 44
Financial Services Network
Host on-demand services to facilitate multibank routing, multiformat payments, client on-boarding, and
core transaction management between banks, corporations, and treasury-service providers.
Talent Management
Use cloud services for recruiting, performance management, compensation management, talent
assessment, and performance review.
Smart Procurement and Commerce
Combine industry-leading, cloud-based technology with one of the world’s largest Web-based trading
communities.
Connect to your trading partners anywhere, at anytime – from any application or device – to buy, sell,
and manage their cash more efficiently and effectively than ever.
Enable rapid time to value and maximize savings by automating and streamlining the strategic source-
to-contract process.
The speed and flexibility offered by cloud computing is
creating new opportunities for best-run banks. SAP cloud
applications and the SAP HANA platform help banks
build differentiating solutions, establish nimble global
business networks, and connect faster and more directly
with customers.
Cloud
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
Applications
SAP Innovations
SAP HANA
Mobile
Analytics
Cloud
66% Of companies expect greater
flexibility and agility to be a
source of business advantage
from cloud computing
Source: SAP Performance
Benchmarking
© 2013 SAP AG 34 / 44
All the top 50 retail banks run SAP.
Best-Run Customers
ING Real Estate
Best-Run Customers
National Australia Bank
Standard Bank
Nedbank
UniCred Centro Brasiliera
Why SAP?
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
© 2013 SAP AG 35 / 44
SAP co-innovates through the Banking Industry Architecture Network (BIAN) to
build a flexible IT architecture vision with six tier one institutions and in the financial
supply chain area to create SAP Financial Services Network with seven tier-one
institutions.
Customer Co-Innovation
SAP and seven leading banks collaborate on developing SAP Financial
Services Network – a cloud-based platform that simplifies transactions
between corporations and their financial institutions.
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
ING Real Estate
Best-Run Customers
National Australia Bank
Standard Bank
Nedbank
UniCred Centro Brasiliera
Why SAP?
© 2013 SAP AG 36 / 44
“To exceed client expectations, ING Real Estate Finance needs to excel
in execution. Implementing globally consistent, end-to-end processes
supported by an up-to-date SAP platform is of strategic importance.”
Guus Schnitzler, COO, ING Real Estate Finance
ING Real Estate Finance is the commercial real estate lending
subsidiary of the ING Group.
Responding rapidly to evolving client needs while minimizing risk is
essential in real estate markets. With strong executive sponsorship and
engagement from internal process experts, ING Real Estate Finance
achieved globally consistent processes. ING now has much greater
real-time insight and control – key advantages in today’s volatile climate.
Key Benefits
Ability to serve all clients and administer all products in 1 integrated
system for loans, collaterals, finance, and reporting
Real-time insight in portfolio to better control and steer the business
Clear end-to-end-process and control framework adopted across all
countries
99% Of loans with complete collateral information
0% Of loans managed in Microsoft Excel
80% Reduction in time to market for new products
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
ING Real Estate
Best-Run Customers
National Australia Bank
Standard Bank
Nedbank
UniCred Centro Brasiliera
Why SAP?
© 2013 SAP AG 37 / 44
“Our sales funnels are stronger as result of this activity and lending has
improved. Bankers are more focused on clients with opportunities that
are true and correct
Mary Scoutas, Regional Executive National Bank
National Australia Bank (NAB) is an international financial
services organization that provides a comprehensive range of
financial products and services to over 10 million customers.
NAB’s sales performance information was being received from multiple
reporting sources, residing in multiple databases and governed by
inconsistent business rules. Bankers increasingly need a
360-degree view of sales performance at a local level to support local
decision making.
SAP provided a corporate bankers dashboard’ for sales reporting,
analysis, and number and type of cross-sell leads.
Key Benefits
Consistent view of sales performance by individual branch or region
One view of the truth for accurate sales targets, results, and forecasts
Take-up and usage strong with 90% using monthly and 50% weekly
50% Use dashboard weekly
Cross-sell rate improved
Improved forecast accuracy
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
ING Real Estate
Best-Run Customers
National Australia Bank
Standard Bank
Nedbank
UniCred Centro Brasiliera
Why SAP?
© 2013 SAP AG 38 / 44
“For the first time, we delivered our three-year plan targets well ahead of
the executive session, without our central team having to work overtime
to ensure data quality.”
Luigi Bianco, Group Finance General Manager, Nedbank Group
How does a banking giant take its organization to the next
level when relying on stand-alone spreadsheets and manual
processes for business planning?
Nedbank needed to streamline and harmonize the planning process,
implement strategic planning and a rolling three-year plan, improve
the accuracy of information and reports, and provide company-wide,
simultaneous access to planning models.
Nedbank implemented a standard, company-wide approach to
strategic planning.
Key Benefits
Spend more time on analysis and less on transactional work
Eliminate manual intervention while significantly improving
data accuracy
Deploy staff to more value-added activities
30- 40% Improvement in data accuracy
15 Minutes to create report rather than 24hours
100% Reduction in overtime
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
ING Real Estate
Best-Run Customers
National Australia Bank
Standard Bank
Nedbank
UniCred Centro Brasiliera
Why SAP?
© 2013 SAP AG 39 / 44
“Sybase Unwired Platform helps us integrate mobile banking apps with our existing SAP software.It provides a stable, scalable solution that will help us grow our core banking business.”
Willie Stegmann, Core Banking Transformation Executive,
Standard Bank Group Ltd.
Standard Bank Group Ltd. is the largest bank in South Africa;
the company holds a 25% market share.
With a goal of becoming the leading personal and business bank in
South Africa by 2015, Standard Bank engaged in a business
transformation initiative. One project in the initiative was to develop
an inclusive banking program that would provide low-income and poor
consumers with access to formal financial services at Standard Bank.
Meeting this mission required a highly automated IT solution that could
operate at a low cost.
Key Benefits
Opened banking to 10 million prospective customers
Trimmed account origination process from 27 minutes to 10 minutes
Removed paper from the process
Decreased cost of acquiring customers
10 Minutes time needed to open a mobile account, down 64%
7,000 New mobile accounts opened daily
100,000 New loans opened monthly in loans centers
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
ING Real Estate
Best-Run Customers
National Australia Bank
Standard Bank
Nedbank
UniCred Centro Brasiliera
Why SAP?
© 2013 SAP AG 40 / 44
“The SAP for Banking solutions enable more transparent processes within
the union and toward members. They support higher productivity with a level
of excellence equivalent to that of other financial services institutions.”
Dr. Clidenor Gomes Filho, President, Unicred Centro Brasileira
With over 17 years in the Brazilian market and more than
8,000 members, Unicred Centro Brasileira is a credit union
serving healthcare professionals.
Unicred Centro Brasileira realized that new investments in technology
were needed to face an increasingly competitive environment. The
investments were necessary not only to optimize processes but also to
reduce IT maintenance costs, take advantage of new opportunities, and
meet its members’ expectations.
Key Benefits
Real-time operation qualification
Better alignment among attendance units, Abraccinti cooperatives,
members, and suppliers
Unified database with information on physical and juridical persons,
organizations, and groups
More free time for networking activities related to the core business
215% More members
510% Credit portfolio growth
424% Growth of assets
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
ING Real Estate
Best-Run Customers
National Australia Bank
Standard Bank
Nedbank
UniCred Centro Brasiliera
Why SAP?
© 2013 SAP AG 41 / 44
SAP solutions for the banking industry help customer-centric institutions drive the
sales and service of innovative products and cut costs while staying compliant with
regulators and transparent to stakeholders.
Wide portfolio of solutions
SAP offers the most comprehensive portfolio of solutions for the banking industry, helping
institutions improve their key business processes, comply with regulations, and become more
customer-centric.
Leveraging breakthrough innovations
SAP solutions are based on the industry’s most innovative technologies including the SAP HANA
platform, mobile solutions, analytics, and cloud solutions that support business-process
optimization at low cost.
40 years of delivering value to banks
The world’s leading banks rely on SAP software to support their core business and enterprise.
Why SAP?
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
ING Real Estate
Best-Run Customers
National Australia Bank
Standard Bank
Nedbank
UniCred Centro Brasiliera
Why SAP?
© 2013 SAP AG 42 / 44
The best-run bank organizations rely on SAP.
Why SAP?
More than 3,700 banking customers in 120 countries.
More than 2,600 bank customers use SAP Business Analytics.
More than 1,300 bank customers use SAP Business Suite.
More than 150 integrated finance and risk management banks.
More than 180 core banking customers.
More than 85 million live bank accounts (>75 million in implementation).
More than 70 bank customers for sales, service, and marketing.
More than 1,000 bank customers for database.
More than 200 mobile and internet banking customers.
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
ING Real Estate
Best-Run Customers
National Australia Bank
Standard Bank
Nedbank
UniCred Centro Brasiliera
Why SAP?
© 2013 SAP AG 43 / 44
Benchmark Your Performance
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benchmarking program from SAP – available free to SAP customers and select prospects. SAP's
benchmarking program has helped more than 3,000 organizations assess their strengths, uncover
areas for improvement, and identify best practices and IT strategies that generate clear, tangible
value – not someday, but today.
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Join Your Community of Practices
Every day, SAP Community Network (SCN) changes the way that thousands of SAP users work. It
lets members help one another solve problems, learn, and invent new ways to get things done –
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Find Out More About How Your Organization Can
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Executive
Summary
SAP Solutions SAP Innovations References Contact Us
Industry Executive Overview
SAP for Retail and Commercial Banking
To find out more, visit us online at sap.com/banking
Also visit us on our community pages:
www.facebook.com/sapbanking
http://scn.sap.com/community/banking
blogs.sap.com/banking/.
© 2013 SAP AG
CMP 23245 (12/12)
Executive
Summary
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© 2013 SAP AG. All rights reserved.
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