oracle banking in pacific islands -...

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 1

Oracle Banking in Pacific Islands 28th ADFIP Annual Meeting Raratonga, Cook Islands

Steve Modlin

Senior Sales Director

Financial Services Global Business Unit


The following is intended to outline our general product direction. It is intended for

information purposes only, and may not be incorporated into any contract. It is not a

commitment to deliver any material, code, or functionality, and should not be relied

upon in making purchasing decisions. The development, release, and timing of any

features or functionality described for Oracle’s products remains at the sole

discretion of Oracle.


INNOVATION

• 32,000 developers and engineers

• 18,000 customer support specialists,

speaking 27 languages

• 17,000 implementation consultants

• 1.5 million students supported

annually

• 850 independent Oracle user groups

with 800,000 members

SCALE

• #1 in 50 product/industry categories

• 380,000 customers in 145 countries

• 20,000 partners

• 108,000 employees

• 14 million developers in Oracle online

communities

ORACLE CORPORATION


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NZ

USA


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“I think we’ll certainly have some good battles over the next week, anything can happen.”

At the end of the day, challenger Emirates Team New Zealand returned to its base with a 2-0 lead over defender ORACLE TEAM USA

Solutions

Day 1 – Defence of the Cup begins


Emirates Team New Zealand leads ORACLE TEAM USA 8-1 on the scoreboard, with the winner the first to score 9 points.

The Kiwis need just one more victory to win the America’s Cup for the third time (1995, 2000), while ORACLE TEAM USA needs to win eight consecutive races to defend the trophy it won in 2010.

Solutions

After Race 11 – not looking promising


“We came from behind, the guys showed so much heart. On your own you’re nothing, but a team like this can make you look great… We were facing the barrel of a gun at 8-1 and the guys didn’t even flinch”

With the challenger on match point, the defender closed out the series with eight consecutive victories.

Solutions

By the end - A massive comeback!


5 challenges faced by Team Oracle USA

Data collection

Real-time analytics

Performance sailing technology

Historical analysis

Extreme database performance

Mastered

using Oracle

Technology


What has this got to do with banking

Lets look at

some

parallels


The Ground Rules are Changing

Massive debt loads weigh on the global economy

Short term disturbances are also shocking the system

Evolving customer habits presenting new threats

Shifting role of products

– From simplistic volume driven customer acquisition to the quality of customer and lifetime value they create

Regional factors are weighing in

– North America – Banks are struggling with customer trust

– Europe - Sovereign debt crisis could be crippling

– Asia Pacific – Expanding middle class set to propel banks


Retail Banking Industry has Witnessed Upheaval

Stricter government regulation aimed at mitigating risk and

beefing up consumer protection

The overall retail-banking landscape has undergone measurable

change, altering the competitive position of many institutions.

Customer behavior and expectations have changed, with a higher

premium being placed on trust and reliability.

The roles of products are shifting from simplistic volume based offering

to relationship based offering and the lifetime value they create

Significant financial stress, owing to margin pressure, sharp

rises in loan loss provisions, and declines in asset volumes,

revenues, and profits.


What is Driving the Current Change ?

Drivers for Change

Customer Behavior

Personalized service

Anytime and anywhere

banking

Self – driven approach

Technology

Evolution of mobile,

internet and online

channels

Consistent service

through multiple

channels

Competition

Product innovation

Pricing pressures


Digital Banking Channels : Acting as a Game Changer

Facebook reached 700 million users within seven years of

its launch

Twitter reached 200 million within five years

MySpace has 80 million users

Social Media users have increased

Mobile banking projected to get double from 200 to 400

million in 2013

90% say checking account balance or recent transactions

are the most common mobile banking activity

60% of the customers switch FI for non-availability of

mobile banking

72% would replace some traditional app with mobile apps

if the same customer service feature is available

Users are going mobile


Channels have Evolved as a Major Player

Source: 2011 Retail Banking Voice of the Customer Survey, Capgemini, 2011.


What Will Influence the Bank of the Future?

Increasing digitization of information

“Big Data” conundrum will be tamed (i.e. by better understanding, integrating and aggregating their data)

Beyond trading, Big Data applications will find application within banking and capital markets include Risk Analytics;

Price Discovery; Fraud Analytics; Customer Behavior Analytics, etc

Big Data

Digitization

Will have more intuitive applications that can solve business issues and reconnect more with the target customer

Mobility

The security and integrity concerns will start resolving itself

Banks will come up with smart cloud strategy (e.g. hybrid cloud etc) increasing its penetration

Cloud

Social media will find favour for many roles such as Marketing, Corporate communication and public relations,

customer service, sales, market research, employee satisfaction and retention

Social media


IT Top trends 2013

Transforming IT spending habits

Embracing social business

Exploiting Big Data

Creating customer-centric

systems and culture

Future-proofing your IT

architecture

Cloud computing as business-

transformation agent

Big Data goes strategic

Move at the speed of your

customers

CIO as Chief Acceleration Officer

More Innovation, Less

Integration

Source: Forbes: Dear CIO: Are You Tackling the Top 10 Strategic Issues for 2013?: Bob Evans: 10 July 2013


Knowledge

Workers

Operational

Efficiency

Risk &

Finance

Customer

Experience

Enhanced Cross Sell / Up Sell

Better Cross Channel Originations

Improved Banking on Devices & Personalization

Key Investment Themes in Banking

Improved Interactions

Improvements for Customer Care

Strengthen Relationship Management

Industrialized Processes

Enhanced STP and Automation to focus on Business Demand

Enhance TCO

BASEL III, Liquidity Risk & Loan Loss Forecasting

Stress Testing, Model Risk Management & Risk Appetite

RAPM, Hedge Management

Compliance,

Customer Insight

Dodd Frank, FATCA & CTR, Real-time Fraud detection

Customer Insight Analytics

Data Management Platform

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 21 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. 21

COMPLETE PORTFOLIO

BEST IN CLASS TECHNOLOGIES

ENGINEERED TO WORK TOGETHER

# 1

OF THAT ARE ORACLE HAS A


Financial Services is Strategic to Oracle Continuing Commitments and Investments

Build industry functionality at

every layer of the stack

Deliver best-in-class industry

capabilities

Support end-to-end industry

solutions through integration

points with customer and third

party apps

Financial Services remains

the dominant industry vertical

for Oracle

Continued massive

investment in all sub-verticals

OLTP and Analytics

Increased end-to-end

industry solutions through

integration points horizontal

technologies and applications


$24B IN R&D

SINCE 2004

Investment in Innovation and Integration

$1.3B $1.5B $1.9B $2.2B

$2.7B $2.8B $3.3B

$4.5B $4.5B

FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12

Figures in GAAP


Banking Insurance

Oracle Financial Services Industry Coverage

Insurance Banking

Life

P&C

Health

Group

Retail

Capital markets

Private Wealth

Corporate


Enterprise Services

En

terp

rise R

isk a

nd

Co

mp

lian

ce

Ora

cle

Fin

an

cia

l S

erv

ices A

na

lytica

l Ap

plic

ations

(OF

SA

A)

Oracle FLEXCUBE

Direct Banking CRM on Demand Siebel CRM

Group Product

Management and

Enrollment

Oracle Policy

Underwriting and

Ratings

En

terp

ris

e P

erf

orm

an

ce

Ma

na

ge

me

nt

&

Cu

sto

me

r A

naly

tic

s

O

racle

Fin

an

cia

l S

erv

ices A

na

lytica

l Ap

plic

ations

(OF

SA

A)

Customer Content

Management Enterprise Payments

Revenue

Management and

Billing

ERP & HR

Oracle Enterprise Technologies

Oracle Banking Platform

Oracle FLEXCUBE Universal Banking

Oracle Financial Services Lending &

Leasing

Wealth Insurance

Policy Admin & Claims

Property & Casualty

Health

Life and Annuities

Banking

Oracle FLEXCUBE

Private Banking

Integrated Comprehensive Application Suite for Financial Services


INDUSTRIALIZED

BANKING

ENABLING

INNOVATION

DRIVING

GROWTH

ENGINEERED

FOR BANKING

Oracle delivers on our vision for banking

Re-engineer business

processes to streamline

efficiency and improve

overall customer experience

and business profitability

Increase the product per

customer ratio through multi-

product bundled originations

Delivering new value

propositions to the market

and gain market share

Reduce complexity and run

the bank at a lower TCO on a

secure and scalable

integrated platform

CUSTOMER AT THE

HEART OF THE

BUSINESS MODEL


RISK & COMPLIANCE

Credit Risk

Operational Risk

Market Risk

Regulatory Capital

Regulatory Compliance

ORIGINATION & ACCOUNT OPENING Savings, Current

Accounts

Retail Lending

Corporate Lending

Letter of Credit

Credit Lines

Islamic Financing

Inte

grated

B

usin

ess

Pro

cess Laye

r

DELIVERY CHANNELS Internet &

Mobile Branch

Servicing ATM POS

IVR/Call Centre

Wealth Branch Teller

CORE BUSINESS MODULES

LENDING

Retail Lending

Corporate Lending

Leasing

Syndication

Collections & Recoveries

3rd Party Commissions

TRADE FINANCE

Letters of Credit

Bills

Guarantees by Bank

DEPOSITS

Savings

Current Accounts

Overdrafts

Term (Time) Deposits

Microfinance

WEALTH MANAGEMENT

Profiling & Planning Portfolio

Definition Asset

Allocation Corporate

Actions Performance

Analysis

Order Capture

Portfolio Valuation

TREASURY ISLAMIC BANKING

Deposits

Financing

Trade Finance

Treasury Management

CUSTOMER MANAGEMENT SERVICES

Customer Information

Relationship Pricing

Limit & Collateral

PAYMENT RELATED SERVICES Domestic Payments

Cross Border Payments

SWIFT Gateway

Nostro Reconciliation

ACCOUNT RELATED SERVICES Pooling & Sweeping

Charges & Fees Inventory

Management Safe Deposit

Box

CORE & OTHER SERVICES Security &

Access Product Ledger

MIS & Reporting

Fixed Assets

Expense Processing

OTHERS

OBIEE Reporting

Extensibility

Foreign Exchange

Money Market

ETD Derivatives

Securities

SWAPS & FRAS

OTC Derivatives

CRM

Sales

Service

Campaign Management

Loyalty Management

Oracle FLEXCUBE 12.0 comes with an extensive business coverage

External

Securitisation

Standing Instructions


Oracle Financial Services Analytical Applications

Performance Management & Finance

Model Risk

V2 061912

Performance Management

Customer Insight

Governance & Compliance

Risk Management

Hedge Management IFRS 9 – IAS 32/39

ICAAP/Risk Appetite

Customer Profitability

Stress Testing

Loan Loss Forecasting Pricing Management

Risk Adjusted Performance

Know Your Customer

Risk Management

Operational Risk & Compliance Mgt. Regulatory Compliance (Financial Crime)

Customer Insight

Anti-Money Laundering

Trading Compliance Broker Compliance

Fraud Detection Operational Risk

Credit Risk

Institutional Performance

Retail Performance

Marketing

Customer Segmentation

Capital Management

Liquidity Risk

Economic Capital Advanced (Credit Risk)

Operational Risk Economic Capital

Balance Sheet Planning

Profitability

Asset Liability Management

Market Risk

Basel Regulatory Capital

Retail Portfolio Models and Pooling

Funds Transfer Pricing

Reconciliation

Channel Insight

Compliance Risk Business

Continuity Risk

Counterparty Risk

Audit


Applications

** Gartner: International Retail Core Banking (2012)

Chartis: Financial Services Enterprise Governance, Risk

and Compliance Solutions (2012)

Tower Group: Global Loan Origination Systems (2012)

Chartis: Oracle Category Winner for Integrated Risk &

Finance Solutions (2012)

Fintech 100: Oracle Top 10 Enterprise Company in

Financial Services Technology

Chartis: Oracle Category Leader for Basel II Solutions

(2012)

IDC: Financial Crimes and Compliance Management

(2012)

Celent: NA PAS Systems ABCD Analysis (2011)

Gartner: NA Policy Administration Marketscope –

Positive (2012)

Industry Leadership

Applications and Technology

Gartner: MQ for DataWarehouse Database Management

Systems (2013)

IDC: Health Information Exchange Platforms (2012)

Gartner: MQ for Business Intelligence and Analytics

(2013)

Gartner: Master Data Management of Customer Data

and Product Data (2012, 2011, 2010, 2009)

Gartner: CRM for Customer Service Contact Center

(2012, 2011, 2010)

Gartner: Corporate Performance Management Suites

(2012, 2011)

Gartner: Applications Infrastructure for SOA Projects

(2012)

Gartner: Data Integration Tools (2012)

Gartner: Data Quality Tools (2012)

Applications and Technology Leadership for Financial Services

** Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings. Gartner research publications

consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties

of merchantability or fitness for a particular purpose


Succeeding Together with our Clients


Judd Holroyde Senior Vice President and Head of Global Product Management and Delivery, Wells Fargo

”FLEXCUBE offered Wells Fargo a flexible architecture to enable scale, adaptability and platform growth. The system has 'agile and scalable business and technology architecture' and will improve development and time-to-market of new products. Its 'proven implementations in over 120 countries' was also a contributing factor"


Gavin Slater Group Executive, Group Business Services National Australia Bank

“For us, Oracle Banking Platform forms the foundation of our strategic banking transformation initiative. It will give us the agility we need to rapidly adopt new business models, bring new services and products online quickly and deliver world-class service to our clients across any channel they prefer."


Xie Yonglin Vice President, Ping An Bank

"In the past, to launch a new product we needed to check up the IT’s schedule. It could take months, or even a whole year to complete. It’s too slow to push up something new and a good opportunity on the market could thus be lost. However, with the new system FLEXCUBE in production, the business can simply set up parameters in the parameter center to define a new product they need. It saves time a lot in product development. After the system has run for a while, new products can be created in a few weeks.”


Jeff Jacobs Chief Technology Officer Westpac Banking Corporation

“We are responding to the changing face of banking by significantly enhancing our branch and digital offerings. Providing more flexible and agile branches and continuing to innovate in online and mobile are key to the success of our strategy. Oracle's platform will help us provide a single source of customer truth that delivers a consistent and high quality experience – irrespective of how our customers choose to bank with us.”


Oracle banking clients in Pacific Islands

Samoa

Vanuatu

In discussions :

Fiji

Solomon Islands

Others


11,000 Staff 8,500 Customers 2,000 Partners



Oracle Partner in the region Key specialist in banking related software products and services


JMR Infotech History with Oracle FSGBU

2008 First FLEXCUBE Engagement - OTP Bank

March 17, 2010 Signed Master Consulting Agreement

December 11, 2010 Oracle Gold Partner Certified – FLEXCUBE Services on

2010 First End to End FLEXCUBE Implementation SICOM, Mauritius

2012 First License-cum-Implementation Sales – Aman Bank, Libya

2013 First OFSAA License and Implementation Deal - GT Bank, Nigeria

July 2012 FUDA Signed

September 2013 Oracle Platinum Partner – Specialized Financial Services

To Date 75+ Clients in FLEXCUBE Services Space


Contact Details

Steve Modlin

Email: [email protected]

Telephone: +61 (2) 9491-1409

Mobile: +61-404-892-446

mailto:[email protected]

oracle banking in pacific islands -...

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