Download - Industry Edge - Financial
Industry Edge Financial Services Edition
Feature story: CEB TowerGroup and HP on 9 trends shaping the industry balance sheet
The power of cloud-based services
How to create premium product/card services on demand
HP Enterprise Services /// Issue 003 /// Spring 2012
By Bruce Pearce
Mine the era of opportunity for future efficiencies
Faced with an uncertain and ever-changing
economic environment, the financial services
industry is streamlining systems and
processes, automating wherever possible,
realigning risk profiles and compliance
standards and procedures, and trying to
innovate to become more attractive to
customers and more competitive in the
market. The financial institutions that can
best balance these challenges and execute
flawlessly will reap dividends for years to
come, exceeding customer expectations,
delivering products and services better and
faster than their competitors, and positioning
themselves strategically for long-term financial
viability and customer loyalty.
Flip through this issue of “Industry Edge”
to discover important steps that you can
take to better position your organization for
change. Read about CEB TowerGroup’s top
nine financial services trends of 2012. Find out
what measures you can take to trim costs now
while building a more agile organization for
the future. Learn how to design offerings that
satisfy across generations. And gain insight
into ways to replace the information silos of
yesterday with the powerful information-
sharing technologies of tomorrow.
Bruce PearceVice President and General Manager HP Enterprise Services, Canada
In t
his
issu
e 4 CEB TowerGroup and HP weigh in
on 9 trends that could rewrite the
balance sheet
12 Bank on the power of
cloud-based services
16 Accommodating the Millennials
20 Deliver customer delight
24 Gain capital by providing
premium product/card services
32 Why enterprise IT is priceless
38 Elevate the experience for insurance
customers with innovative strategies
42 How shareholders are changing
the conversation around IT
44 High-tech financial services get back
to the basics
50 UniCredit and HP to optimize
payroll production and human
resources processes
51 In the world of consumer payments,
cash is being usurped
52 How to create applications that keep
pace with the consumerization of IT
54 Why HP?
Turn the page for a look into
the inner workings of the
global financial industry.
Feat
ure
5.Industry Edge Financial Services Edition
By Rodney Nelsestuen and Ross Feldman
Today’s market conditions and newly imposed industry regulations have dealt the financial services community challenges they haven’t experienced in years. Financial institutions are now making strategic, operational, and technical modifications to comply with stricter regulations, mitigate emerging and ongoing risks, and move their businesses forward. To ensure a financially healthy future, banks and other financial
institutions have to deliver an improved customer experience and accommodate a growing list of regulatory changes – all in the most cost-effective ways possible.
Collectively, the top nine industry trends
of 2012 have the potential to improve the
overall health and efficiencies of financial
institutions, while enabling them to adhere to
rules such as those requiring more disclosure
and increased capital reserves. In addition,
the trends point to a focus on innovating,
improving the quality of products and
services, and delighting customers.
CEB TowerGroup and HPweigh in on 9 trends that could rewrite the balance sheet
6. Industry Edge Financial Services Edition
1. Reduce operational costs
Recent regulatory acts and amendments
such as the Durbin Amendment have had
dramatic impact on the current and future
revenues of banks. The debit business alone
has been estimated to be as much as $12 to
$16 billion, according to market projections1
(estimates vary among industry analysts,
payment networks, and banks). This has had
a spiraling effect across enterprises, resulting
in reductions of staff, product development
and innovation budgets, and in some cases,
customer services and perks.
To manage these new budget realities, banks
have had to find ways to recoup revenue
losses, reduce operational expenses, and
simplify their environments. These strategic
intents are far-reaching and will likely continue
to impact markets in the coming quarters until
the “new normal” becomes more accepted
within the industry.
2. Re-engineer the business
As investment products, platforms, and
requirements evolve, their technological
requirements also change. Financial
institutions must then invest in hardware and
software that are able to keep up with the
speed, volume, and complexity of today’s
investments and institutional standards.
Additionally, as the pressures continue to grow
and greater emphasis is placed on financial
reporting transparency, increased disclosure,
and different risk models – and evaluation
criteria develop – financial institutions
rely more on big data analytics and look
to deploy cloud strategies in ways that are
secure and economical.
Another area being adjusted is process
engineering. Firms are now outsourcing
certain functions such as card and payment
processing, statement production and delivery,
and finance and accounting functions, as
well as customer service. Outsourcing these
processes frees up working capital, and
enables firms to deploy strategic personnel
for critical functions rather than purely tactical
and time- and labor-intensive efforts.
3. Revisit markets and strategy
Markets change constantly, via gradual
evolution and immediate shifts. In financial
services, much of the change relates to
geography and technology, as well as
consumer demographics. Emerging geographic
markets are considered fast-growing areas
for consumer and commercial banks,
considered largely de novo territories with
exponential growth potential. Threats to
traditional markets have come in the form
of emerging capabilities providers, from
Internet-based companies, wireless providers,
telecommunications companies, large retailers,
and other technology upstarts that have
caused “disruptive innovation” in the market.
In addition, demographic shifts, transfers of
wealth, and influential customer markets are
driving change, in measures that are now
1 TowerGroup Live Broadcast, July 20, 2011. Focardi, Craig; Riley, Brian; Moroney, Dennis; and Murphy, Steven. “Business Implications of Dodd-Frank: Real-time Positioning for Bank Card Issuers and Consumer Lenders.”
7.Industry Edge Financial Services Edition
considered mandatory actions. Because
of these fast-sweeping changes, financial
institutions are making choices as to the
markets they serve and how they serve
them, as well as the customer segments
and how they deliver for them. The
once innovative strategy of “financial
supermarkets” that provided one-stop
shopping – for everything and everyone – has
proven to be too difficult to support, grow, and
nurture. And being “all things to all people”
is not a profitable possibility. Today, banks
are targeting definitive market segments and
investing in very specific markets.
4. Automate compliance
Across the industry, approximately $30 billion
is expected to be spent on compliance needs
this year2. This figure will likely grow annually,
as regulations ensue, economies and markets
become more complex, and risks continue to
grow. Finding products and services that can
be controlled automatically or technologically
will drive security and compliance, and
reduce risk to those who employ automation
intelligently and strategically.
5. Increase the focus on risk management
Since the onset of our most recent economic
downturn four years ago, the industry has
taken a noticeable course correction from an
extremely aggressive customer acquisition
and servicing model to a much more risk-
averse model. This move is, in large part,
a component of a risk mitigation plan to
combat emerging threats, fraud risk, and
2 CEB TowerGroup Live Broadcast, June 22, 2011. Nelsestuen, Rodney, “A Wolf in Sheep’s Clothing? Managing Risk with a Compliance Mentality.”
8. Industry Edge Financial Services Edition
customer and commercial defaults. The course
correction is expected to continue for several
years and will likely be considered part of a
“new normal” environment.
6. Sharpen relationships, products, and services
With the significant reduction in innovation
and product development budgets, how, what,
and where institutions spend will be calculated
decisions based on numerous aspects, such
as risk, return, and market trends. Customer
platforms, mobility, social media strategies,
and advanced analytics for predictive modeling
and customer incentives will continue to
be areas of influence, as will cross-selling
strategies and efforts to increase the lifetime
value of the customer (revenue per customer).
In the near future, customers might expect
to see improvements to mobile functionality,
remote deposit capture, online coupons
that consider their spending habits and are
automatically loaded to their accounts, and
other convenient customer banking tools
made possible by detailed analytics.
7. Integrate the channels
Financial institutions are projected to spend
$6.2 billion on channel integration3, and
for good reason. Delivering the desired and
consistent experience for customers – whether
they’re online, on a mobile device, at the ATM,
or in the teller line – is critical to rebuilding
customer trust and engagement. Integrating
the channels is a tremendously complex
task that reaches across entire enterprises,
but it’s a critical component of managing
customer relationships.
8. Improve business and customer intelligence
Analytics of any kind are critical to running
any business and making informed decisions
on behalf of the business. New technologies
that analyze big data, as well as unstructured
data, such as voice, video, text, chat, and social
media posts, offer invaluable insight to financial
institutions. This unprecedented level of insight
helps businesses make intelligent decisions
that serve the customer across many situations
and platforms. Further, it simplifies compliance
and eDiscovery standards, streamlines
record management, and offers marketing
value to an institution.
9. Revisit sourcing strategies
By providing considerable domain expertise
at relatively low cost, outsourcers are
increasing their emphasis on vertical
specialization across financial services.
Traditional outsourcing forecasts show
significant growth through 2015, when
it will account for roughly 20 percent of
IT spending and approach $116 billion4.
Potential outsourcing opportunities include
data center services and infrastructure,
help desk activities, standardized hardware
and software configurations, security and
3 CEB TowerGroup Research Note, May 10, 2010, V63:06N. Sturgill, Nicole, “Everybody into the Pool! Including Operations and IT in Retail Bank Multichannel Integration Efforts.”
4 CEB TowerGroup Research Note, July 18, 2011. Nelsestuen, Rodney, “Sourcing, Resourcing, or Outsourcing: Globalizing Operations in Financial Services by 2015.”
9.Industry Edge Financial Services Edition
compliance functions, payment processing, and asset servicing. In addition,
many financial institutions are embracing shared services, a business model in
which an internally sponsored group becomes a service provider to a variety
of business units. Managed services also continue to gain ground in areas such
as application testing, security, and fraud-detection services – all of which are
available through on-demand or cloud-based services.
In shortFinancial services is now, and likely always
will be, one of the most critical industries in
the world. In both strong and down economic
periods, customers rely on their financial
institutions, and financial institutions rely
on their business partners. In both cases,
those that lead and succeed are financial
institutions and business partners that
read the trends early and react accordingly
in ways that are best for their businesses,
customers, and shareholders.
Over the last few years, the industry has
experienced dramatic changes related
to economics, regulatory measures,
and customer expectations. The trends
spotlighted in this article are just a sampling
of the factors impacting the financial
industry, but clearly, they have the potential
to make a significant impact on the future of
global financial services.
Rodney NelsestuenSenior Research Director
CEB TowerGroup
Ross Feldman Chief Technology Officer, U.S. Financial Services
HP Enterprise Services
> Learn more
Top 9 business drivers and strategic responses for 2012
Globalization and economic uncertainty
Growing regulatory mandates
Industry structural change
Nontraditional competition
Stress throughout market segments
Risk: fraud, reputation
Capital and liquidity challenges
Global consumerization and continued distrust
Technological convergence
– CEB TowerGroup and HP
1.
2.
3.
4.
5.
6.
7.
8.
9.
Reduce operational costs
Re-engineer the business
Revisit markets and strategy
Automate compliance
Increase the focus on risk management
Sharpen relationships, products, and services
Integrate the channels
Improve business and customer intelligence
Revisit sourcing strategies
Business driver Strategic response
>>>>>>>>>
Clou
d
13.Industry Edge Financial Services Edition
Bank on the power of
By Larry Ryan
cloud-based
You know the sea change currently happening
in our industry? Well, it’s not going away
anytime soon. Regulators, customers, and
investors all have changing demands. It’s up
to financial institution IT to deliver for them.
In his groundbreaking book, “The Structure of
Scientific Revolutions,” Thomas Kuhn argued
that, during periodic upheavals in science,
the discovery of anomalies lead to entire
new paradigms that foster new research,
present new questions, and change the very
game of normal science1. Those significant
changes affect technologies, economies, and
institutions. The emergence of mature cloud
computing may indeed represent a game-
changing event for the global banking sector.
Your internal teams need to be ready to
accommodate anything – from potential
regulatory changes to customer demands.
A cloud-based architecture allows financial
institutions to adapt and scale their systems
quicker and at a lower cost.
The future is uncertain, the future of cloud computing isn’t.
Quite simply, the cloud presents an opportunity
to rapidly deliver the right resources through
less effort. While cost reduction is a benefit of
the cloud, its key advantage is its ability to keep
an organization agile and responsive to market
changes within a framework that complies with
a financial institution’s specific governance,
compliance, and risk needs.
1 Kuhn, Thomas S. “The Structure of Scientific Revolutions.” 3rd ed. Chicago, IL: University of Chicago Press, 1996
services
14. Industry Edge Financial Services Edition
A McKinsey & Company survey found that 75% of business executives believe the cloud would drive value in their organizations, 70% cite increased flexibility as the primary benefit of cloud-based computing2.
One McKinsey & Company presentation
stated, “Cloud will not only deliver improved
economics but also enable new business
models that will present opportunities and
threats to financial institutions3.”
Know the different clouds. Deploy the best of each.
For financial institutions, the beauty of the
cloud space lies in building solutions by
constructing a hybrid cloud after picking and
choosing the most appropriate features from
the public, community, and private clouds.
The hybrid cloud space literally offers financial
institutions the ability to exploit the best of all
worlds. And with the changing regulatory and
consumer landscape, the cloud is an untapped
resource for transforming the security and
accessibility of banking services.
Maximize the cloud with service architecture
Whether it’s infrastructure (IaaS), platform
(PaaS), or software (SaaS), the service model
offers synergy and cost-saving opportunities
that scale easily and deliver the “instant on”
promise that financial institution IT needs.
Technology providers in these arenas will only
become more effective at operating in the
cloud space, too.
Why search for the best solution? Build your own.
HP recommends the hybrid delivery for
financial institutions. Any and all potential
solutions are looked at based on the unique
needs of a specific institution. Traditional
in-house services don’t necessarily need to
be replaced, but instead, augmented with a
scalable, automated cloud-based solution.
Any product within the cloud space can be a
potential part of the product mix. HP’s view
is that the future of IT will focus more on
procuring and brokering outside technology
services, initially in non-core business areas
like email and CRM, but eventually core bank
services will operate this way as well.
No single solution holds all the answers.
Department needs are different and constantly
changing – and employees must have the
latest tools to effectively service the needs
of customers. Banks and financial institutions
should look at cloud services and service-
based architectures because they offer the
most flexibility and responsiveness for their
customers and employees.
2 “McKinsey Quarterly Survey on information and technology strategy, 2010,” McKinsey & Company3 “Perspectives on Cloud for Financial Services sector,” Jurgen Laartz, Managing Partner, McKinsey & Company,
HP Financial Services Summit 2011, February 9, 2011
75%
15.Industry Edge Financial Services Edition
A global bank wanted to deliver
IT capabilities – including servers,
networks, OS, middleware, applications,
and storage – on-demand through
an appliance-like model. The bank
was concerned about the security and
compliance issues posed by addressing
these needs through an external public
cloud; they wanted internal delivery.
HP responded by designing, building,
delivering, and operating a hybrid
private cloud solution that provided
infrastructure on-demand while meeting
the bank’s security, compliance, and risk
management requirements. To ensure
this solution met the bank’s stringent
governance standards, HP engaged
its chief risk, security, and compliance
executives at the start of the project.
HP worked with the bank to create
a portal for online ordering of
infrastructure services through an
expandable service catalog. The service
catalog included available services,
pricing, and service levels, enabling lines
of businesses to select and build an
infrastructure that matched the bank’s
business needs in compliance with
corporate standards.
Sourced from a combination of HP
and the bank’s data centers, this
cloud-based solution allows the bank
to optimize capital and operational
expenses, while gaining immediate
access to HP’s worldwide data centers.
The solution reduced the risk of
deployment and ensured security and
regulatory compliance. This scalable,
instant-on approach now also allows
the bank to provision new functionality
in hours, rather than days, in a controlled
and manageable environment.
Why it pays to invest in a hybrid cloud
exam
ple
LARRY RYANChief Technologist
Financial Services Industry, HP
> Read the white paper
The
Mill
enni
als
Accommodating the Millennials
How to develop products and services for the connected generation
Mr. Ryan doesn’t specifically mention
Millennials (consumers born between
1978 and 20001), but they’re one
key demographic that’s changing
how, where, and when banking gets
done. They truly shift consumer
expectations and help shape “a
dramatically different market reality.”
“Tectonic change is reshaping the financial services sector. From the global economic situation to more stringent regulatory controls … and shifting consumer expectations – bankers, insurers, and others now face a dramatically different market reality.”– Larry Ryan, Chief Technologist, Financial Services Industry, HP
By Ross Feldman
>1 http://www.americanprogress.org/issues/2011/09/911_generation.html
17.Industry Edge Financial Services Edition
Meet the Millennials
In the Millennials, the 55-and-over age group
has discovered its rival for the most influential
financial consumer. The 18- to 29-year-old age
group recently reached the 50 million mark2.
Financial institutions need to understand the
differences in these groups and tailor products,
services, and customer communication
platforms to capture Millennial wealth
as money moves away from traditional
investment products.
Millennials demand choice at every
turn, which means financial institutions
must build products that fit their expectations.
Many banks have limited innovation dollars,
so creating products for this group can be
a challenge. But for financial institutions to
ensure their financial future, they must strive to
find ways to satisfy this influential demographic.
The Millennials are growing up – getting
promoted, starting businesses, inventing
industries, and earning higher incomes. And
agile and in-touch financial institutions are
noticing – and taking action – to modernize
and serve these customers in a variety of ways.
Born into technology, Millennials are diverse
and well educated, with different wants
and needs than previous generations. Due
to the economic peaks and valleys they’ve
experienced in their short lives, they’re hesitant
to assume debt. They want to avoid some
of the economic errors and trends that have
plagued society over the last several years.
Uber-connected and comfortable using social
media to express themselves, the Millennials
more readily embrace many forms of online
communication than their older peers.
When surveyed, 75% of Millennials stated they have a profile on a social networking site, compared to only 50% of Gen Xers and 30% of Boomers who claimed to have a social networking presence3. Incidentally, when asked what makes their generation unique, the number-one answer for Millennials was their “use of technology.4”
2 http://pewresearch.org/pubs/1501/millennials-new-survey-generational-personality-upbeat-open-new-ideas-technology-bound3 Ibid. 4 Ibid.
75%
18. Industry Edge Financial Services Edition
Bank their way, or watch them go
Firms that deploy technologies to improve
service levels and product offerings with this
group of “digital natives” are better positioned
to benefit from these investments – and gain
long-term customers in the process. And since
most service-based technology also provides
real-time analytics and consumer insights,
these financial institutions have greater depth
of knowledge and instinctual insight to spot
future trends relating to customer behaviors
and interactions.
Additionally, this insight has a corollary result
as it relates to social media interaction. Digital
natives call, text, write, tweet, and post about
their experiences, positive or negative, and the
viral impacts of this are monumental. Astute
companies capture, analyze, and understand
these behaviors, because failing to do so could
result in costly missteps.
Millennials also understand the ramifications
and safeguards that pertain to the security
of their personal information, more so than
previous generations who have had to adapt
to the world of advanced technologies.
Tap the benefits of technology to create
satisfied customersFor a financial institution, flexibility and
accessibility are critical to customer delight
because they enable different ways to reach
the same outcome. For example, Millennials
generally don’t want to interface solely
through self-service methods. They often
want and demand full-service customer
management. They want to tailor their ways of
doing business with you, interacting whenever,
wherever, and however is most convenient for
them. Don’t abandon storefront operations,
just make sure they’re fully optimized to
exceed the expectations of your 20- and
30-something customers.
With competition increasing from emerging
markets and others such as PayPal, Amazon,
and Facebook, financial institutions must
find innovative, customer-driven products
and service offerings. They must develop
new revenue streams without negatively
impacting customers. Mobile banking and
mobile contactless payments, remote deposit
capture devices, reloadable prepaid cards, text
banking, online couponing and discounts, and
modernizing of banking centers are critical to
a financial company’s success. Providers must
have the technology products, services, and
vision to accommodate evolving customer
needs and wants, and anticipate them before
they come to market.
19.Industry Edge Financial Services Edition
The HP vision is this:
Create products that consumers want, develop smart and
innovative solutions before customers even know they
want them, and get them to market quickly. These steps
are critical to driving greater customer satisfaction.
With Millennials in particular, technology is ingrained in
their daily lives and mindset. Winning this segment over
to become a relevant institution in the new reality requires
insight, analytics, and strategy.
Ross Feldman Chief Technology Officer, U.S. Financial Services
HP Enterprise Services
Cust
omer
ser
vice
21.Industry Edge Financial Services Edition
By Dennis DeGregor
Deliver
Have you ever called a service department with a question and been routed from one department to another? And had to repeat the same information over and over with each new representative? The experience certainly does not make you happy.
The good news is you don’t have to put your customers through that. In fact, you can turn customer service into a competitive advantage by implementing the measures that follow:
delightcustomer
22. Industry Edge Financial Services Edition
For today’s financial services
providers, great customer
service can be a huge
competitive advantage.
360-degree view of the customer
Get data out of the silos and
make it available to customer
service agents. They’ll only
have to ask for information
once, and they can be
prepared to address a known
problem, such as a customer’s
card being stuck in an ATM.
Address the customer’s issue
Savvy customer questions
often go beyond the level
that can be addressed by a
less knowledgeable customer
service agent who’s relying
on a script. Have the right
level of agent and the right
information available to the
agent to address any question
from any customer.
Mine social media for customer preferences
Listen to what’s being said
online to offer services more
tailored to the customer.
Look for a Business Process Outsourcing partner for your contact center
Find a partner with a global
presence, a comprehensive set
of services, domain expertise,
and industry experience.
Interact with customers on their terms
If your customers prefer to
communicate on social media,
you should, too. Extend social
media as another channel into
your contact center. If your
customer tweets a negative
comment, reply on Twitter so
the problem doesn’t fester.
It can bring you happy, loyal
customers and opportunities
to upsell additional services.
You can help make your
customers happy by
implementing a social
customer relationship
management (CRM) program
to improve communications
and engagement with
customers. To find out how,
read the press release.
Dennis DeGregorGlobal CRM LeaderHP Enterprise Services
Prem
ium
ser
vice
s
Gain capital by providing
premium product/card services By Ed Herman
Since the global economic crisis of 2008, survival in the business world requires much more than maintaining the status quo. The financial services industry, in particular, has been under
mounting pressure to find ways to retain current customers while growing the business wherever possible – increasing the volume of customers, total revenues, and profits.
25.Industry Edge Financial Services Edition
Banks under pressure
Complicating matters are the abundance
of regulatory changes that banks and other
financial institutions must comply with,
many of which limit or prevent fees that can
be charged for certain transactions. And
don’t overlook the needs of the merchant or
consumer, who has more power than ever
thanks to social media and an unprecedented
level of “connectedness.” Merchants have
joined forces to help government regulators
push through legislation that allows them to
recoup some of the fees paid for accepting
credit cards or to reduce the fees assessed by
their acquiring banks. Consumers who feel like
they shouldn’t incur fees for some services –
such as online bill pay or monthly debit card
usage – put pressure on banks to find services
and solutions that provide value and for which
customers are willing to pay.
Financial institutions often rely on the development of premium products and services to differentiate themselves from industry competitors. Modern-day banks and other financial organizations are working to create premium services that will bring in new sources of revenue and engender deeper customer loyalty.
There are two important methods to address
the creation of premium services: 1) identify
underserved or new growth markets, and
2) listen to what current customers and
the broader market are saying. Hearing
the consumer perspective helps product
26. Industry Edge Financial Services Edition
management and innovators in the financial
industry discover pain points in the marketplace
and then pinpoint key features that could add
value by being relevant to the user.
Mine your data sources
Today, there are a seemingly unlimited
number of data sources that together create
a holistic picture of what products and services
consumers say they want and what the
market will support. At HP, we favor a view
that combines a broad-spectrum survey of the
market with a more intimate understanding
of what our consumers and businesses want.
To get a robust, comprehensive look into the
near future, we exhaust the following channels
and resources:
> Ask clients what we’re doing right and what
else they’d like to see.
> Engage in detailed discussions with clients,
which helps us better understand their
strategies and plans to gauge what financial
institutions believe their customers want
from banks. Anticipate client and market
needs through this critical dialogue.
> Share our detailed product development
roadmap with senior-level business
executives during intimate, strategy-
focused board sessions with individuals
who are closely tied to their companies’
profit and loss metrics.
> Discuss innovation during targeted business
forums among noncompetitive clients
(e.g., at the annual HP Card and Payments
Innovation Forum).
> Engage with analysts to get their
perspectives on what consumers will
expect and where the market is headed.
> Conduct individual market research
to uncover customer preferences
and behaviors.
> Orchestrate brainstorming sessions with
subject matter experts and HP partners in
emerging technologies.
> Monitor social media and crowdsourcing
analytics to spotlight trending topics,
and use that feedback as a direct input
channel into our product development
and investments in cards and payments.
Farm the problems to create better solutionsBy aggregating all of this data, we’ve been
able to improve solutions for problems many
consumers have dealt with for years, such as
the multicurrency prepaid card solution for
27.Industry Edge Financial Services Edition
The better solution lies in preloaded multicurrency cards. Consumers load the card with cash
value for multiple currencies such as
dollars, euros, yen, baht, yuan, and
pounds (known as “purses”). The
consumer pays a one-time fee that’s
assessed when the card is initially
loaded rather than every time
it’s used. And while traveling, the
cardholder can go online to transfer
balances from one purse to another
or use an interactive voice response
(IVR) to manage their PIN, perform
a balance inquiry, or activate a new
card. Users are no longer penalized
with additional fees when they find
that new pair of shoes they can’t live
without in London. The web-enabled
multicurrency cards also allow
global travelers. The old way of paying for products and services when
traveling internationally involved incurring a foreign exchange fee every
time you used your credit card. These fees – assessed by both the issuing
banks and the card schemes such as Visa and MasterCard – quickly added
up, leading to a certain level of dissatisfaction among the consumers who
were paying for the use of their own money.
>
28. Industry Edge Financial Services Edition
consumers to check balances and make purse
transfers from their tablets or smartphones.
Another premium solution that fills a
consumer need is the companion credit
card. Targeting the more affluent market
segments, companion cards offer individuals
a card that shares a line of credit with another
card but drives different behaviors. One
of the companion cards might reward the
user with airline miles or cash back, while
another companion card might deliver more
personalized rewards. The companion card,
for example, could satisfy the affluent
consumer’s preference for personalized,
high-premium rewards such as a “Top Chef”
experience or live customer service via a phone
number earmarked for premium members.
Exploit your connectedness
Ultimately, the best financial products
evolve from a collaborative effort. Products
and services are no longer pushed out to
consumers and merchants by the banks and
financial services organizations. They are
borne of an interactive feedback loop among
consumers, businesses, and the industry.
Consider a situation in which an airline traveler
is delayed, something that has traditionally
been a negative experience for everyone
involved. The old way of mitigating the
situation meant the airline would issue the
traveler a paper voucher, a method that was
both inconvenient and costly. Regardless of
whether the traveler used the entire amount
(e.g., a dinner voucher), the airline was
charged for the gross value of the voucher.
The consumer could use the voucher in a
limited number of venues, and the overall
experience was less than ideal.
A better solution is for the airline to provide
bank-issued prepaid cards, which have
connections to the major card schemes such
as Visa or MasterCard. Prepaid cards can be
configured with expiration dates, which keep
unused funds in the airline’s coffers. Everyone
wins: the airline no longer leaves funds on
the table, the traveler is happy to receive a
convenient prepaid card that can be used at
any merchant that accepts a credit card, and
the “warm and fuzzy feelings” (and revenue)
also transfer to the card issuers themselves.
The airline that aggressively implemented the
concept reports that card recipients are often
so happy with the outcome that they take
pictures of themselves posing with the airline
representatives who distributed the cards.
And when that photo posts to Facebook, the
airline benefits from one more marketing
opportunity that costs little but makes a
priceless impression.
29.Industry Edge Financial Services Edition
Really, you can’t buy a more effective promotional opportunity.Personalized merchant offers are another
example of a product made possible by access
to customer data. By monitoring consumer
purchasing behavior, banks can enable
merchants to extend personalized offers that
drive traffic back to their stores. The consumer
gets a relevant, value-added offer rather
than one-size-fits-all marketing spam. The
merchant sees increased foot traffic in the
store (and hopefully a resultant rise in sales).
The bank card sees an increase in use and
receives added revenue from usage fees.
The outcomes make everyone happy.
The revenue’s in the details
The ability for consumers and merchants to
make a market statement is unprecedented
with the explosion in use of social media,
blogs, and an online presence. All of these
channels generate massive levels of data,
both the structured data from applications
and unstructured data from social media sites.
HP exploits the power of the details by using
algorithms to convert all of this information
into actionable data. Customer Live Intelligence
(CLI) is one solution created by HP Labs that
30. Industry Edge Financial Services Edition
monitors the entire social media spectrum
to pull commentary surrounding a given
product or entity and reveal what’s really being
conveyed by the consumer.
In effect, CLI creates social analytics for
actionable insight. When Disney recently used
the program to analyze consumer sentiment
and comments, the company made the
surprising discovery that its customers spend
more time discussing hotel rooms and pools
than Disney-branded activities such as Magic
Kingdom or Epcot. This level of insight will
help Disney focus on what’s most important
to its customers, rather than on what they
think customers care about.
From a world built on infinite small details
and an unprecedented level of connectedness
comes a big result: financial services companies
no longer have to guess what’s important to
their consumers. In effect, modern business
intelligence can now survey five million people
simultaneously, listen to their pain points, and
then design and implement solutions that
address those issues.
To see what HP can do for you, visit
hp.com/go/card-payment.
Ed Herman Senior Director, Global Cards and Payments HP Enterprise Services Business Solutions
Ente
rpri
se IT
33.Industry Edge Financial Services Edition
Why enterprise IT is
pricelessDon’t let the business news these days
discourage you. As the financial landscape
transforms, technology is on your side –
the side of the decision-maker.
Regulation and compliance are now part of the
long-term picture. That’s a fact. Even if details
of current legislation change, the fundamental
push for more accountability from financial
companies will remain.
But in the midst of this shift – and these
changes apply to state financial institutions
and global operations – you have a key ally in
technology. Smart financial leadership sees IT
as an asset and not merely an expense. With
tools for risk tolerance, threat profiles, and
investment tracking, you can stay abreast of
everything and make smarter choices using
real-time input. Looking at the big picture, the
very nature of collecting and interpreting data
evolves exponentially each day.
Enterprise IT delivers the tools to move the
financial world from a reactive to a proactive
way of operating every line of business.
Advances in technology provide the means to
discover answers and insights quickly, in ways
that weren’t possible just a few years ago.
By Paul Martin
34. Industry Edge Financial Services Edition
Decrease human middleware, streamline processes, and reduce errors
“The routine cutting and pasting, aggregating and shuffling of data to produce the classic ‘Risk Heat Map,’ or any heat map, for that matter, is a squandering of human capital. If you can automate your data aggregation, then your highly paid staff can move on to more intellectually demanding tasks than slicing-and-dicing spreadsheets and coloring PowerPoint presentations.” – Paul Martin, Business Leader (Americas), Security Governance Services, HP Enterprise Services
No one can argue with the fact that automating
data aggregation massively reduces – and
practically removes – the inherent risks of
typographical and cutting-and-pasting errors.
Tools that compile and transform data improve
accuracy and effectiveness. Technology
experts can work with companies to tailor
aggregation solutions that form-fit to their
unique issues, making these aggregation
processes more productive. In the future,
collecting information will be less complicated
and more automated and systemic.
35.Industry Edge Financial Services Edition
Instantly obsolete data
A key drawback to current reporting is that
information compiled for spreadsheets
and documents is often sterile and one-
dimensional – a snapshot of the past, not
a picture of the present. In companies
with volumes of day-to-day transaction
information, many executives fear their data,
just because it may be obsolete by the time
it’s reported. These leaders need real-time,
dynamic reporting platforms, and these tools
must be device-agnostic and accessible from
anywhere. Automated reporting through a
single “executive portal” also achieves the
seemingly unthinkable – “a single version
of the truth.”
Get the right answers
Historically, data providers were the
gatekeepers of information who often defined
and sometimes dictated what leadership saw
in terms of overall message, style, and content.
The architecture behind newer tools allows
solutions to be constructed based on specific,
strategic input from business leadership –
before the system is created.
The top-down approach puts you – the key decision-maker – in charge. You determine the business outcomes that need to be managed and thus, the reporting you need
to achieve them. You can anticipate future data requirements based on your experience and easily create new tools to interpret data. If a new need arises, the system can get what you need, faster.
For example, a financial services executive
whose business can be subject to both state
and federal regulation needs to effectively
manage business outcomes from a federal
perspective and on a state-by-state basis.
Additionally, the regulatory space is dynamic
for this industry.
An adaptable and flexible reporting solution
is needed to keep up and maintain IP security
while remaining compliant and showing that
risks are being actively managed.
Dashboards and viewing platforms are
evolving as well. They improve your financial
team’s ability to compile and read various types
of data – and if the display of this information
isn’t ideal, it can be reconfigured in no time.
Introducing HP Secure Boardroom
HP has a strategic, intelligent, online portal
that, backed by our services, helps executives
determine their business situation “at-a-
glance” and gain a comprehensive view of
enterprise security. Called the HP Secure
Boardroom, this online portal provides
a logical program-level view of IT
36. Industry Edge Financial Services Edition
security governance through
a single point of reference;
it delivers information and
insight so that executives
can align security and risk
processes and policies to their
enterprise drivers, legal and
regulatory requirements, risk
tolerances, and threat profiles.
Large financial services organizations operate in highly complex landscapes,
with colossal amounts of data and seemingly never-ending regulatory compliance
requirements. It is essential that leaders quickly receive information that is presented
in a succinct way – not data, but business intelligence – that they can make decisions
with, act upon, and actually use to support the running of their businesses. Without
this line of sight to key information, they risk becoming “too big to succeed.” They
become literally hostages of their own data.
HP Secure Boardroom is the executive management portal that today’s financial companies need.It’s quick, flexible, highly configurable, and adaptable to whatever data challenges financial companies encounter.
HP Secure Boardroom
37.Industry Edge Financial Services Edition
Features
> Simple and easy-to-use interface
> Secure web access
> Automated data aggregation
> Integration with software such
as ArcSight, Fortify, all Microsoft®
applications, and more
> Real-time security status and
actionable reporting
> Extensible through open APIs
Tools like HP Secure Boardroom give you what you need – answers. And better
answers facilitate more intelligent decision-making.
The financial world is always changing. If your financial organization adopts
proactive processes, it’s better positioned to lead the industry forward.
Paul MartinBusiness Leader (Americas)Security Governance Services HP Enterprise Services
Benefits
> Provides single, graphical C-level
dashboard of enterprise security status
> Aligns compliance, risk, operational
and security information at a corporate
level, presenting it as actionable
business intelligence
> Improves control of security projects,
audits, budgets, and performance
Inno
vati
on in
in
sura
nce
Elevate the experience for insurance customers with
innovative By Michael Brown
The insurance industry is traditionally risk averse, but…
Market trends are driving the need for change. Savvy customers do their research, learn about your company and competitors from peers on social media, and understand what options are available. They have expectations for higher levels of
service, more tailored insurance products, and competitive rates.
Customers are looking for non-traditional distribution channels, and they expect to use the latest technology to access services, including mobile devices and social media.
strategies
39.Industry Edge Financial Services Edition
Innovation is key
To meet these changing needs in the market,
leaders in the insurance industry innovate in
many areas, including:
> Connecting data that’s already available
to mitigate risk using analytics to
improve profitability
> Focusing on customer intimacy and trust
> Updating business models to provide new
service and support options
> Introducing new, more targeted products
such as customized products for non-
traditional customers
> Increasing efficiency and reducing costs
Leaders are taking advantage of new
technologies and processes, such as analytics
to make better use of available data, the cloud
to enhance customer experience, and model-
driven architectures to speed new products
to market.
Information is power if you know how to use it
In a recent cross-industry phone survey1, 34% of executives said at least half of the information within their organization remains unconnected, undiscovered, and unused.
Insurers have a lot of information about their
customers, but most of it’s in silos with no
connection between annuities, life insurance,
disability, and other lines of business. But when
insurers use analytics, they can anticipate
what their customers may need and sell them
additional services and products in new niches.
Unstructured data provide new opportunities
Data from social media sites, videos, emails,
text messages, and mobile transactions
contain a wealth of information about
customers, and this data is growing
exponentially. To stay competitive, insurers
use analytics to convert this data into
actionable facts and deliver it to appropriate
stakeholders to enable better business
decisions and improved customer service.
To control costs, organizations can make use
of a broader set of data to determine fraud
and revise fraud detection routines, further
improving profitability and quality of business.
A better customer experience
From interactions with other service providers,
customers expect to access services on all
their mobile devices across multiple channels.
The cloud enables you to deliver a secure,
multi-channel experience that gives customers
and employees unconstrained access to the
information they need with a consistent user
experience across devices. This “services
anywhere” approach is becoming a necessity
to maintaining a competitive advantage.
34%1 Coleman Parkes study (commissioned by HP), October 2011
40. Industry Edge Financial Services Edition
Free up resources
Moving to the cloud helps you align
infrastructure costs to business volumes while
meeting security imperatives. Because you can
take advantage of a structural environment
that’s already in place, it brings the flexibility
to grow or shrink with the cyclical nature of
the insurance business.
Moving to the cloud also enables a different
business model for you to buy applications.
Rather than paying for software licenses up
front and dealing with maintenance contracts
and upgrades, you can move to a software as a
service model to lower total cost of ownership.
This model provides the security you need to
protect sensitive customer information and
meet regulatory requirements.
Innovation for the risk-averse
Insurers are known for being somewhat risk-
averse, but there are many pressures forcing
them to become more agile. A model-based
architecture provides the ability to develop
complex products using predefined business
and calculation models instead of coding
everything from scratch, and then using the
models as an integral part of the deployed
solution. This speeds the development
process so you can introduce new products
to market faster, taking advantage of insights
and opportunities identified through analytics.
Additionally, in a service-based environment
where cloud options are adopted, a model-
based design is an imperative for providing
insurers with the flexibility to adjust operations
requirements, launch products, and customize
service without the need to change source code.
Use new technologies to stay competitive
Incorporating technologies such as analytics,
the cloud, and model-based architectures helps
insurers meet the needs of knowledgeable,
demanding customers in a rapidly changing
market. For more information on how you can
be more competitive, view the slides presented
by HP at the ACORD LOMA Insurance Systems
Forum 2012 conference.
Michael Brown Sales Enablement HP Insurance Services
The
new
IT
conv
ersa
tion
How shareholders are
changing the conversation
around ITBy Jim Scurlock
Forward-looking financial institutions no longer
focus solely on must-have technology or cost
(OPEX) reduction methods. While both still
factor into the overarching business equation,
today the dialogue surrounds shareholder value,
as well as how the decisions being
made will impact it.
The dialogue is moving from a conversation
about the latest technological innovations
and ways to save money to a discussion
that poses the question, “What can we do
to favorably impact shareholder value?”
Modern banks are searching for methods to
redeploy capital in a way that will enable the
distribution of dividends.
HP has come up with a solution that does
exactly that. By delivering anything as a
service (AaaS), we help banks eliminate capital
expenditures and reduce operating expenses.
HP’s robust finance division is able to buy back
client assets, which releases value from the
balance sheet and frees up capital for use in
pursuing innovative products and services that
will drive greater ROI for shareholders.
The final step in the revised business dialogue –
and another with profound financial benefits –
lies in adopting a consumption-based model.
Modern financial companies now know that
unused or underused solutions (and the
costs associated with buying and maintaining
them) can lead to unnecessary expense. The
consumption-based model allows financial
firms to pay only for what they actually use.
Jim Scurlock Vice President HP Financial Services
The new conversation around IT comprises four steps:
1. 2. 3. 4.Eliminate capital expenditures.
Reduce operating expenditures.
Release value from the balance sheet.
Adopt a consumption-based model.
Back
to b
asic
s
High-tech financial services get back to the basics
“Industry Edge” recently talked to Ross
Feldman, chief technology officer of U.S.
Financial Services, HP Enterprise Services, to
get his perspectives on the factors shaping
today’s financial services industry.
Industry Edge: For a little background, describe how HP is poised to impact the financial services industry in the years to come.
Feldman: For HP as an institution, it’s a time
of great change. We now have a new leader
with an incredible success record of leadership
[Meg Whitman, former CEO of eBay], who
brings a unique perspective, having come from
an entirely different industry and a company
that she helped grow from its infancy to an
industry icon. Her experiences and leadership
perspective and experience will be invaluable,
in my opinion, along with that of the rest of her
leadership team.
45.Industry Edge Financial Services Edition
[Whitman] is sending the message that it’s
time to get back to fundamental blocking and
tackling as an organization, to the fiber HP
is made of – innovation, customer service,
and the flawless delivery of products and
solutions – the things that HP is known for.
This same ideology can be applied to the
financial services industry as well, given that
it, too, is in a time of great change. The
bottom line is that both HP and its financial
services clients are working hard to become
indispensable to our customers.
Change is happening faster than ever
before: shifts in engagement models,
customer demands, competitive threats from
nontraditional and traditional competitors,
and in regulatory reform (both nationally and
globally). In the U.S. alone, more regulations
were placed on the books in the last few years
than in the previous 50 years. Those changes
have had a dramatic impact on the way
financial institutions work, how they spend
money, and how they make money – all of
which ultimately translates back to how they
serve their customers.
Evolving legislation forces financial institutions
to look very critically at their operating models
and processes, from what they focus on
strategically, to their infrastructures, to plans
for growth. Fortunately, HP has a range of
global competencies across core banking,
capital markets, insurance, and professional
services. We take pride in forging close
relationships with our clients and aspire to
anticipate needs while they’re still areas of
opportunity and growth, rather than burning
challenges that need to be addressed.
Industry Edge: What are some of the factors impacting the industry?
Feldman: Our clients are currently focused
on rebuilding trust with consumers, looking
for ways to regrow their pipelines and find
new ways to earn revenue. They’re trying to
comply with changing regulatory reforms
and are taking a deeper look at the costs and
complexity of their operations environments.
Essentially, financial institutions are working
hard to uncover smart ideas where everyone
wins – reevaluating how they manage costs,
the complexities of their infrastructures, and
business in general.
They look to HP for industry expertise and
technology solutions, and for big-picture
advice and counsel around the cloud,
enterprise mobility, hybrid delivery, security,
and analytics: capabilities that will help them
drive innovation and greater efficiencies and
improve customer interactions and business
management capabilities that lead
to long-term loyalty.
In a market that expects flawless execution
and evolves rapidly, clients must place
their bets on making the right decisions the
first time around. Look at mobile banking,
for example. Three years ago it was an
46. Industry Edge Financial Services Edition
“innovation experiment” in the industry; now, it’s
a minimal requirement with new applications
and use cases cropping up almost every day.
Banks that don’t offer their customers mobile
account access won’t be serving many of these
clients very much longer.
Financial services firms place their trust in
uncertain times with experienced partners
with proven track records. HP has been in the
financial services space for more than 35 years.
We hold several hundred intellectual property
patents, many of them in the area of mobility
alone. When companies work with HP,
they know their technology will be built on
strong, secure, protected platforms that are
patented. This is important because patent
infringement suits are a common threat in
today’s business climate.
Industry Edge: How urgent is it for these companies to find a trusted IT partner?
Feldman: It’s critical. Business is driven and
supported by technology, both traditional and
emerging. Additionally, banks must innovate
to stay competitive, and they need the right
trusted partners to bring innovative ideas to
them. HP does that, and has the capability to
do it better than most. We understand core and
strategic issues, and focus on quick and efficient
execution to ensure strategies are in place. By
problem solving for our clients in strategic areas
like compliance, security, and analytics, we
help them execute to succeed in this market.
We’re able to see the business from the client’s
customers’ perspective – understanding their
fears, headaches, and the requirements they
struggle with.
Industry Edge: So what does the typical banking customer look like these days?
Feldman: The market is rapidly evolving, with
the different demographics and their needs
constantly changing. Ten thousand Baby
Boomers retire every day, and as they do, their
financial, real estate, insurance, retirement,
and tax needs change. On the other end of the
spectrum, Generation Y (also known as the
Millennials; consumers born between 1978 and
20001) is going to be the largest population
sector, and their needs are dramatically
different. Financial institutions must modify
their offerings to address these needs.
Generations Y and Z (the Internet generation;
consumers born after 19942) have different
demands and expectations than previous
generations. They have grown up with
technology, so they’re less likely to have
concerns about adoption, usage, and security,
and they rely on technology to transact on-the-
go, from their smartphones, and tablets. They
expect to have consistent user experiences
across any platform, whether it is online,
mobile, ATM, at the point of sale, or at the teller
window. It is critical that their experiences
satisfy their needs, since that experience
shapes their opinion of their financial institution.
1 http://www.americanprogress.org/issues/2011/09/911_generation.html2 http://findarticles.com/p/articles/mi_m3495/is_1_45/ai_59283651/
47.Industry Edge Financial Services Edition
The average customer today watches where
every penny goes. They don’t like to pay fees,
and most of their transactions are debit-card –
centric, which means knowing their exact
account balance when they make purchases
is critical to them. This knowledge can impact
whether they can pay their bills, pick up the
dry cleaning, go out to dinner, etc. From a
technology perspective, the infrastructure
and applications have to be in place to ensure
consistency, security, and reliability across
multiple institutions to produce consistent
results, experiences and ultimately, high
customer satisfaction.
For another case in point, think about the
traditional insurance model. In the past, the
customer acquisition model for property,
life, and casualty insurance was a face-to-
face customer interaction, or at the minimum,
a phone conversation with an agent, which
was often time-consuming. Today, most of
us expect to jump online, fill out an electronic
form, and get a quote, either immediately
or at the most, within 24 hours. Consumers
expect instant results, which puts the
burden on IT organizations to accommodate
these expectations.
The current economic market is very
challenging to bank customers. They’re
sensitive to paying bank fees, and sometimes
go so far as to close accounts and move their
money to non-traditional locations, at which
point they’re considered “underbanked” or
“unbanked.” Non-traditional methods include
cash hoarding, using PayPal accounts or
low-fee credit and loan products offered by
48. Industry Edge Financial Services Edition
Walmart, and making purchases with prepaid
cards. They have one bank account for all of
their needs instead of the several accounts
they truly need, and they lack a synergistic
bank relationship. The money-management
habits of this demographic present new
opportunities for banks.
Financial institutions must continue to find
ways to improve the customer experience.
Envision the loan application process. In the
traditional method, the consumer enters a
branch to apply for a loan. He or she sits
behind the desk while an account
representative navigates through a seemingly
endless sea of screens. The customer,
meanwhile, wonders what the rep is looking
at. HP has technology and knowledge that
can turn that model on its ear and help
create a great customer experience, such as
finding ways for customers to use tablets and
smartphones to make the application process
more engaging and less alienating.
Industry Edge: What can financial institutions do to ensure longevity?
Feldman: One of the things they can do is
to not try to be all things to all people. Find
the right strategic partner, a trusted IT expert
with ample experience and the ability to help
clients scale business up or down as needed.
For several decades now, HP has been a critical
component to many companies’ successful
transformation strategies. We understand
banking and its challenges, and we know how
to use technology to transform in ways that
will not only keep up with customer demand
but help institutions become industry leaders.
The fastest way to become a company of
the past is to wait and see what the future
holds. HP is in the business of helping financial
services organizations make proactive,
strategic plans for the future.
HP Enterprise Services Italia announced that UniCredit Business Integrated Solutions
SCpA, an Italy-based global service company, has signed a 15-year agreement with
HP to optimize payroll operations and information technology related to human
resources administration processes across the organization. UniCredit is a major
international financial institution with strong roots in 22 European countries and an
overall international network present in approximately 50 markets, 9,500 branches,
and 160,000 employees as of December 31, 2011.
HP has worked with UniCredit for more than 10 years, delivering services to manage the
company’s technology infrastructure, applications, desktop and printing environments.
HP will assist UniCredit in adopting common tools for human resources activities and
payroll production, providing HP Human Resources and Payroll Services for the firm’s
active and retired workforce located in Italy and Austria. These services will be provided
through a jointly owned, dedicated company called ES Shared Service Center SpA.
Additionally, HP will provide HP Applications Transformation and HP Modernization
Services to lead the bank’s transformation to the SAP solution-based platform. HP will
host UniCredit’s SAP solution-based platform from its data centers, providing UniCredit
with a full scope of infrastructure, security, and network services.
Based on HP best practices and UniCredit technical skills, the new delivery model will
generate benefits for the bank such as economy of scale, reduced administrative costs,
higher transactional quality, and improved workforce and payroll reporting.
UniCredit and HP to optimize payroll production and human resources processes
Regi
onal
new
s
> Read the press release
51.Industry Edge Financial Services Edition
Why do consumers choose one form of
payment over another? What are the trends
in payment behavior? The answers to those
questions can help drive investment decisions
that will meet the challenges of cost efficiency,
flexibility, simplicity, and immediacy.
HP South Pacific recently commissioned
independent research house Retail Finance
Intelligence (RFi) to analyze features of the
Australian payments market for valuable
insight on where to invest in the increasingly
fragmented payments environment.
One discovery could be called the “wave of
the future”: of the major forms of contactless
payment, consumers most preferred to wave
their cell phone in front of a reader. Though
cash is still number one, with credit cards
coming in second, HP-RFi determined that
54% of consumers who intend to switch
some of their spending away from a payment
method, intend to stop using cash, and that
50% of 18- to 44-year-olds were the most
open to replacing those cash purchases with
cell phone purchases.
Though consumers remain concerned
about both fraud and personal liability
should a payment method be misused,
survey respondents indicated a burgeoning
willingness to try contactless payment options,
from prepaid gift cards, debit and online credit
card purchases made with the click of a tab,
to the wave of a cell phone app (such as Visa’s
payWave) to purchase that cup of cappuccino
in a convenient, contact-free flash.
In the world of consumer payments,
cash is being usurped.
Dee McGrath Vice President, Financial Services Industry Group HP South Pacific
By Dee McGrath
Ente
rpri
se
mob
ility
How to create
applications that keep pace with the consumerization of IT By Darren McGrath
More and more consumers are using mobile technology and social networking in their personal lives – at all hours of the day (and night) – and they expect the same “always-on” experience in their professional lives. Commonly referred to as the “consumerization of IT,” this trend represents the evolving expectations of customers and
employees, who use consumer-oriented technologies and solutions such as smartphones, video, audio, social networking, and micro-blogging.
These individuals expect universal access from
their employers and business partners. As we
enter the second decade of this millennium,
a rapidly changing technology landscape is
creating a hyper-competitive environment
and propelling us into an interconnected world.
53.Industry Edge Financial Services Edition
HP is helping organizations around the
globe harness the power of mobility – with
tailor-made solutions and services. We offer
workshops that help financial services firms
identify which applications, processes, or ideas
are best suited to become mobile applications
based on business value, mobile readiness,
and ease of implementation. Our mobility
assessment assists with the development
of enterprise-level mobility strategies, plans,
and solutions.
In addition, HP’s mobile application
development services provide custom,
packaged and hosted client, client/server, and
cloud computing-based solutions with support
for all of the leading operating systems.
We can also provide mobile application testing
services that leverage market-leading software
testing tools to automate testing of new
application functionality across a variety of
mobile devices.
To learn more about how HP can help you
tackle your IT challenges, visit our Enterprise
Mobile Applications Service website.
Darren McGrath Global Product Marketing Manager HP Mobile Application Services
Why HP?
320,000
9/1025
With a rich heritage in the financial services industry that spans more than 35 years, HP has a significant presence in all of the top 200 banks, top 50 brokerages, 130 of the world’s major stock and commodity exchanges, and top 50 insurance carriers.
HP offerings for the financial services industry include: > Cloud > Security > Mobility > Analytics > Core banking
> Payments > Branch channel transformation > Trading operations > Exchange transformation > Insurance services
HP is global; we have more than 320,000 employees in 170 countries.
Nine of the top 10 global financial services firms signed contracts with HP Enterprise Services within the last decade.
HP ranks second in the annual FinTech 25 by “American Banker” and IDC Financial Insights.
Verifiable experience
10 & 68 2.5
5
5
Processes 10 billion credit card transactions and 68 million credit card accounts, originates 1 million loans, and processes more than 60 million insurance contracts annually
As the world’s third-largest third-party bank credit card processor and third-largest merchant acquirer processor, HP:
Services approximately 2.5 million mortgages, secured loans, and unsecured loans
Serves 7 million commercial card accounts, processing 80 million transactions annually
Processes an insurance contract somewhere in the world approximately every five seconds
Answers more than 5 million incoming customer calls each year related to loans we service and originate for leading financial institutions
Handles 2 out of 3 credit card transactions
$1M
$4M
$2M
$5M
$3M
$6M $7M
Get connected hp.com/go/getconnected Share with colleagues
Current HP driver, support, and security alerts delivered directly to your desktop
© Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein.
Microsoft® is a registered trademark of Microsoft Corporation.