mdm banking1

MDM for Banking IndustrySerene Corporation January,2012January,2012

2012 © Serene Corporation | All rights reserved.

Business Objectives

Increase Customer Profitability

Acquire CustomersWith Better Business Potential

Improve TCE (Total Customer Experience)

• Execute Steps based on customers behavior over time

• Identify potential customers worth acquiring for cross sell and up sell opportunities

• Identify Customers specific needs

2012 © Serene Corporation | Smart IT, Smart Business ™ All Rights Reserved pg 2

Provide Single View of Customer to Business Units

• Identify Customers specific needs and interests

• Improve understanding of the Customer – improved decisions

• Efficient Risk Management & Compliance ConformanceAccurately Track Customer

information for improved Auditing capability

Efficient adaptability to Mergers & Acquisitions

The banking landscape is changing. – Growth, Opportunity, Complexity and Competition. Leveraging information as a strategic asset is one way banks are achieving competitive advantage and achieving compliance with the regulations that accompany such a market environment. Understanding 360-degree view of the Customer will help Banks to improve TCE , and give Banks the Competitive edge and meet regulatory compliance. It also helps Banks to understand the Risks involved when entering into another Business Relationship with the Customer.

Challenges

Fragmented customer data across different business unitsSharing of customer data across competing Business UnitsCreating a gold copy and preserving Business Unit specific sensitive Customer informationDifferent processes and techniques for data synchronization Different processes and techniques for data synchronization leading across multiple heterogeneous systemsOngoing Data Governance with clearly defined roles and responsibilitiesConformance to Compliance, Security and Privacy requirements that vary across geographies and changes with time


Business Units within the Bank maintain their individual Customer Master. When creating a single gold copy of the Customer, there is a need to be sensitive to the information gathered by the different business units. For example overwriting the address in different Business Units is not a acceptable solution. SOT for different attributes will have contention. Also compliance and privacy rules keep changing. Compliance rules for sanctioning loans may change and the Loan department should be able to implement such changes quickly.

Business GoalsFor Banks and Financial Institutions

Offer common set of customer data across business unitsEffectively mine customer data for identifying cross-sell/ up-sell opportunitiesProvide Targeted offers based on customer needsMeet Regulatory ComplianceMeet Regulatory ComplianceImproved Risk Management


Goal is to create a 360-degree view of the Customer that would enable banks to understand the e2e Business Interaction with the customer. An individual who may not be “big” value customer by himself/herself may also be the owner of a Business. Understanding this e2e picture of this individual will enable them to better serve this customer, provide him with added service as an individual which will ultimately bring in more business for the bank through the Organization the person owns. When offering loans to an individual if the unit is aware that this individual was a defaulter for a credit card payment, then they could assign a higher risk rating for the individual.

Business Drivers for MDM

• Achieve Higher Revenue, Reduce Cost and Increase Compliance through efficient Data Management• Provide answer to often painful Data questions• Define an information management strategy• Maximise value of products through optimal and robust life cycle management of intellectual

property

Enterprise

• Highly Reliable Forecasting and Business Intelligence• 360 degree views of Data allowing better cross-sell and up-sellRevenue


• Increased Efficiency of Supply Chain Management• Improved Decision Making e.g. Stop Drug Projects, Better Campaign Management• Reduced Cost of new Initiatives• Improved Externalization by centralizing Master Data and Business Rules that can be easily available

for subscribing systems and also can be quickly modified

Cost

• More transparency of Information across the organization• Increased compliance with all major industry standardsCompliance

• Enable creation of a pool of shared services• Create the foundation for the adoption of SOA within the organization• Creation of an Enterprise wide skilled pool of Data Experts

Technology

Operational Systems

Solution OverviewCustomer Master and Associated Systems

Customer

Banking

Credit Cards

Distribution Channels

CRM and BackOffice Branch Customer Portal

Other Systems

KYC

Credit Bureau

CustomerMaster Wealth

Management

Insurance

Legacy CustomerMaster

Business Intelligence

Data Warehouse Reporting Analytics

Credit Decisioning

Fraud Management

Risk and Compliance


Operational Systems will have inbuilt Customer Information. This information will be sourced into the Customer Master. End State should be all systems will have a common address, besides their own address. Again customer may have a account level address, credit card address etc. Goal is to identify the primary attributes of the Customer and in turn uniquely identify the customer across multiple systems. The 360-degree view is enabled by the MDM System. Other Systems will gather info about the Customer – like finger prints etc and this is passed into the Master, which can then be used by other Operational Systems. Distribution Channels will also send info to the Master.

Customer MasterKey Entities and Information

Customer and

Household Information

Background (demographic

, lifestyle characteristic

s)

Ratings, Credit Scores

Customer Master / Customer Information File

Customer Master Customer

Preferences (Communication, Security)

Customer to Product Linkages

Purchase Behavior

Customer Survey Data


Solution Architecture

Business Unit Apps

Retail Bank

BusinessBank

Credit Cards

Wealth Mgmt

Insurance Others

Analytical Apps (BI)

Mktg/Sales

Finance & MFG

Service Other G & A

Partner

Publishing Layer

Reference Data 1Reference Data 1



Reference Data nReference Data n

RealReal--Time and Batch Time and Batch Centralized ServicesCentralized Services

External External ReferenceReferenceDataData

“As Captured” Master Data “As Captured” Master Data FlowFlowClean Clean Master Data Master Data FlowFlow

Master Data

Data Quality Firewall


KO8

KO8 For the Analytical Apps, you'd probably want to choose some that are more banking specific. For example, I would remove MFG and replace with FP&A (Financial Performance and Analysis) or EPM (Enterprise Performance Management). Service could be replaced with Predictive Analytics.Kelle O'Neal, 2/14/2012

ScenariosCustomer and Product Data Synchronization

Customer Master

• Customer Information• Customer Customer Relation

Operational Systems

Core Banking Credit CardsWealth

ManagementInsurance

Integration Layer • Customer Customer Relation• Customer Product Linkages• Customer Product Details


KO6KO7

KO6 I would say "Core Banking" rather than just banking because it tends to mean more of their back office systems. Unless of course that is an American term that doesn't resonate elsewhere.Kelle O'Neal, 2/14/2012

KO7 I'm not sure if you want "Insurance" since not all banks are also insurance companies. What about Asset Management? Or something about a Product System?Kelle O'Neal, 2/14/2012

ScenariosSingle Customer View

Integration Layer

Get Single Customer View

Distribution ChannelsCRM Branch Customer Portal Intermediary Portal

Get Customer Information

16

Operational Systems

Customer Master

Core Banking Credit CardsWealth

ManagementInsurance

Get Customer Product LinkagesGet Customer Relationships

2

Get Product Details

3

4

5


KO4

KO5

KO4 I'm not sure if you want "Insurance" since not all banks are also Insurance companies. What about Asset Management? Or something about a Product system?Kelle O'Neal, 2/14/2012

KO5 I would say "Core Banking" rather than just Banking because it tends to mean more of the Back Office systems. Unless of course Core Banking is more of an American term.Kelle O'Neal, 2/14/2012

MDM Strategy

Aware

Business Concern

Assess

Business Readiness

Vision

Scope

Outcome

Executive Sponsorship

Clear MDM Vision

Success Criteria

Stakeholder Identification and Accountability


Completeness

Accuracy

Security

IT Concern

Scalability

Scope

Establish Data Governance Roadmap

Program Plan

Gap Analysis

IT Readiness

Document business rules for Data Quality

Accountability

Risks, Dependencies and Constraints

Workable Project Plan

Data Governance Organization established along with the first set of foundational Deliverables

Data Quality Rules for Cleansing, Standardizing and De-duplication formed with governance rules for updating and modifying the same.

Benefits

Consumer banks can ensure a consistent customer experience, whether online, onsite, or by mobile phoneUnderstanding the 360-degree view of Customer as an individual and/or part of an Organization leading to improved customer handlingCommercial lenders can connect clients into meaningful hierarchies, to better identify and manage credit risksWealth management organizations can craft targeted product bundles and Wealth management organizations can craft targeted product bundles and promotional offers to meet the needs of priority customer segmentsFinancial institutions can support compliance with ‘Know Your Customer’ requirements, anti-money laundering statutes, privacy requirements and other regulationsBank holding companies can speed systems rationalization projects after mergers and acquisitionsReduced data management costs – reduces time and effort to collect and report on data from different systems


Case Study : Banking and Financial Services ProviderMulti-Platform Implementation with OCH, DRM, and CRMOD

National Australia Bank

Client

• National Australia Bank is a financial services organisationwith over 40,000 employees and 1,800 branches and service centres across Australia, Asia Pacific, the UK and USA.

• NAB provides high quality banking and financial services, and relationships built on the principles of comprehensive financial guidance and advice.

• NAB is one of the top-20 banks in the World, and consists of numerous brands with offerings across Business, Consumer, and Wholesale Banking, Wealth Management, and Insurance.

Client’s challenge

The Solution

• Serene was part of a large project team implementing a wide variety of integrated Oracle platforms to replace outdated, stagnant, and costly legacy technology.

• Oracle Customer Hub was deployed as the customer master data management solution, creating a future single source of truth and enabling customer 360°views

• Customer online registration and origination processes were tied into the MDM hub to help prevent the creation of duplicate data and improve overall data quality

• The CRM On Demand platform was leveraged to create a consolidated “Banker Workbench” which serves as the single, central point for customer servicing

• Fusion Middleware and AIA framework was deployed to create robust integrations


Client’s challenge

• The client faced significant issues with customer satisfaction,compliance and risk management, and customer retention due to numerous disparate systems and processes for managing customer information. Key issues included:

• Varying levels of customer satisfaction

• Employee frustration at the wide variety and complexity of systems and processes

• Difficulty in acting on opportunities due to integration costs

• Aging and outdated risk and finance control systems

• Inadequate customer information and insight reporting

• Lack of competitiveness due to poor understanding of customers and lack of a single source of truth.

• Many manual processes with rekeying of data and errors.

• Extensive integration to legacy and downstream systems along with MDM and data quality tools ensures that master data is as accurate and reliable as possible, and that up-to-date information is available to all systems and down-stream processes

Result

• Data quality is vastly improved and duplicate data has been reduced significantly, which, along with standardised processes and a unified platform, enables to fully understand their customers and deliver consistent, high quality customer service.

• Enhanced business agility and competitiveness as a result of better operational and management visibility, further enabling adaptation and market competitiveness

• Ability to cross-sell and up-sell through improved understanding of banking clients

• Better employee effectiveness and satisfaction through simple processes & platform

• Ability to meet or exceed compliance, fraud reporting, and risk management requirements and goals

Suggested Technology

• Informatica (Siperian)• Oracle Customer Hub (UCM)

Customer Master

• Informatica Data Quality

Data Quality Engine

• Informatica Data Quality• Trillium • DataFlux• Datanomics

• Collibra• IBM Infosphere Business Glossary

Data Governance and Business Glossary


Why Serene?

TRACK RECORD PROCESS EXPERTISE

o Recognized Boutique Player

o 100+ Successful Engagements

o Value Added Services through Strategic Partnerships

o Customer Centric Delivery Model

o Collaborative & Result-Oriented

o Qualitative & Quantitative Checkpoints

o Strong Emphasis on Quality, Experience, and Expertise

o Niche in specialty areas

o Culture of Meeting Expectations


mdm banking1

Documents

smart business

business unitseffectively

business relationship

business goalsfor banks

single view of customer

individual customer

big value customer

e2e business interaction