SlideShare una empresa de Scribd logo
1 de 31
Descargar para leer sin conexión
IBM Software Day 2013. Banking trends and transformation
Trends and Transformation
                           …..Driven by Software………….

Neil Beckley
FSS Industry Leader, GMU
The ROE Challenge

 Global Banks                                                                 In the “New Normal” of lower-for-longer interest rates,
                                                                              below-trend growth and less leverage, we expect banks’
    The lowest level of revenue growth for the banking
                                                                              management to increasingly focus on restructuring
     industry globally since 2008, at the height of the global
     financial crisis – UBS                                                   business models in order to improve returns
                                                                              - Citi, 4 January 2013
 Emerging Markets
    Declining ROEs – In 2013, banks across emerging
     markets could face one of the most challenging              In Europe, shareholders have been
     operating environments in recent years, culminating in      asked to provide double the amount of
     sector ROE falling to its lowest level since 2003 – UBS     capital for effectively the same level of
                                                                 return - profit having only recovered to
 North America
                                                                 2007 levels
    Expect the median bank to see revenue decline 1%
     yoy as balance sheet growth is offset by NIM declines
     and mortgage banking shifts from a source of earnings
     growth to stability – Goldman Sachs
 Europe
    In the UK upcoming banking reforms could cost GBP
     4bn-7bn, which will likely reduce the UK banks’ ROEs
     by c 2.4-4.1 – UBS
What Banking CIOs tell us:

                Most important visionary plan elements (Interviewed CIOs could select as many as they wanted)

                                                                                                                                            83%
                                    Business Intelligence and analytics                                                                    81%
                                                                                                                                        74%
                                                            Mobility solutions                                                           76%
                                                                                                                            58%
                                     Risk management and compliance                                                            72%
                                                                                                                             68%
                                                                  Virtualization                                              70%
                                                                                                                          60%
                                         Business process management                                                          70%
                                                                                                                         57%
                                                          Self-service portals                                         53%
                                                                                                                        55%
                                  Collaboration and Social Networking                                                48%
                                                                                                                          60%
                                                             Cloud computing                                         48%

                Global sample                        Banking




Source: 2011 CIO Study, Q12: “Which visionary plans do you have to increase competitiveness over the next 3 to 5 years?”; Global sample (n=3,018); Banking (n=311)
Dynamic Banking
Tougher Banking Environment
•   Increasing regulation & control
                                                                         Tremendous Growth Potential
•   Mature markets continue to deleverage
                                                                         •   Banking the unbanked
•   Declining profitability
                                                                         •   Leverage the SME opportunity
•   Compounded by trust & reputation Issues                              •   Drive new revenue growth through
                                                                             customer centricity
                                                                         •   Continue to exploit cost efficiencies



                              Smarter & More Demanding Customers
                              •   Technology explosion
                              •   More demanding, less loyal customers
                              •   Comparison Shoppers
                              •   New entrants will exploit gaps
This translates into a few key focus areas…


                              Create a customer focused
                                      enterprise




   Optimize enterprise risk                               Improve operational
   and compliance                                         efficiency and agility
The 2013 Point Of View



•     Empowered Customers - Think Like a Retailer
•     Simplicity Low Cost - Act like a Manufacturer
•     Common Agile Processes - Operate as One Bank
•     Capital – Embed Risk Management
To thrive in the new environment Banks will need to “Think Like Retailers,
                       Act Like Low Cost Manufacturers”
                                         Right Customer
                                            Customer
                                           Segmentation


               Right Service                                          Right Time
                  Customer                                              Customer
                   Service                                               Insight




                Right Place                                          Right Product
                Multi-Channel                                        Product / Service
                Optimisation                                             Lifecycle



                                           Right Price
                                               Price
                                            Optimisation


Enabled through Front Office Digitization, Advanced Business Analytics & Information Management
The ability to create competitive advantage using analytics surged
dramatically in 12 months; the bottom-line impact is clear

 Respondents who say                                                                                                                            Organizations achieving
                                                                                                                                        a competitive advantage with analytics are
 analytics creates a
 competitive advantage                                                                                                                                 2.2x
                                                                                                                                                   more likely to
                                                                                              69%                                  substantially outperform their industry peers
                                                                                             Banking
2011                                                                   58%
                                                                                                          97%
                                                                35%                                      increase
2010                                      37%
                                                               Banking
                                                                                 57%
                                                                                                             Ratio of respondents who indicated analytics creates
                                                                                increase                     a competitive advantage to those who indicated it
                                                                                                             did not and the likelihood they also indicated their
                                                                                                             organizations was “substantially outperforming their
                                                                                                             competitive peers”. The ratio was 2.0 to1 in 2010.


  Source: The New Intelligent Enterprise a joint MIT Sloan Management Review and IBM Institute of Business Value analytics research partnership. Copyright © Massachusetts Institute of Technology 2011.
Early adopters have outpaced others in gaining competitive advantage
by expanding the use of analytics


                             Respondents who cited a competitive advantage using analytics year-over-year


                                                            2011                                                               80%                             23%
                                      Transformed                                                                                                            increase
                                                           2010                                                 65%

                                                            2011                                                63%                        66%
                                      Experienced                                                                                        increase
                                                           2010                            38%

                                                            2011                                                         5%
                                       Aspirational                                                                   decrease
                                                           2010                            39%



   Source: The New Intelligent Enterprise a joint MIT Sloan Management Review and IBM Institute of Business Value analytics research partnership. Copyright © Massachusetts Institute of Technology 2011.
Transformed organizations outpaced all others in integrating analytics into
core strategies and operations in the past 12 months


Respondents increasing their integration of
analytics into strategy and operations                                                                                                   Transformed
                                                                                                                                   organizations creating a
                                                                                                                                  competitive advantage are
                Transformed

                                                          70%                                                                                 3.4x
                                                                                                                                         more likely to
                Experienced                                                                                                        substantially outperform
                                                                                                                                     their industry peers
                                               55%
                                                                                                                  Ratio of Transformed organizations creating a
                Aspirational                                                                                      competitive advantage compared to Aspirational
                                                                                                                  organizations not creating an advantage that self-
                            34%                                                                                   assessed as “substantially outperforming their
                                                                                                                  competitive peers.”




   Source: The New Intelligent Enterprise a joint MIT Sloan Management Review and IBM Institute of Business Value analytics research partnership. Copyright © Massachusetts Institute of Technology 2011.
The BAO Reference Architecture Overview
                  Content        Master Data              Data                Data      BI / Performance Advanced
Sources         Management                            Integration          Repositories                                       Access
                                 Management                                                Monitoring    Analytics
                                   Operational
 Enterprise                                              Extract /             Dimensional     Planning,       Predictive       Web /
                                  Orchestration
                                                        Subscribe                 Layer       Forecasting,     Analytics       Services
   Apps            Ingestion      Components
                                                                                               Budgeting
                                                          Data       R                                                          Portal
Unstructured                                                                     Data                            Data
                                     CRUD                Quality     E
                   Extraction                                                  Warehouse      Scorecards        Mining
Data Stores                       Transactional   B                  A
                                  Components      A                  L                                                          Device
 Structured                                            Transform
                                                  T                  T         Operational    Dashboards      Simulation
 Data Stores     Base Services                    C                  I         Data Store                                     Composite
                                   Data Load      H                  M                                                        Application
                                                         Load /
Informational                     Components
                                                         Publish     E           Time          Guided        Text Analytics
                  Document                                                     Persistent      Analysis
                                                                                                                              Collaborative
  Master /       Management                                                    Repository
                                                            T                                                                  Application
 Reference         Services      Reference Data                                                              Optimization
                                                            R                                  Reporting
   Data                           Management                A                  Master Data                                    Productivity
                  Records                                                         Store
  External                                                  N                                  Querying                       Application
                 Management                                                                                  Visualization
                                                            S
                  Services                                                    Content Store
                                                            A                                                                 Enterprise
    Web                                                     C                                  Monitoring                      Search
                   Federation                               TI
                                                            O                  Staging Area                                    Business
  Devices                                                   N                                                                    Unit
                                                            A                                                                 Application
                                                            L
                                                      Business Process Management
                                                           Service Management
                                                         Information Governance
                                                               Collaboration
                                                      Security, Privacy & Compliance
                                                           Transport & Delivery
                                                               Infrastructure
Big Data: The Next Natural Resource
Data “behaves” like a natural resource in that it can be found, extracted, refined,
and fuel the cognitive engine
         Volume                Velocity                 Variety               Veracity




      300 million              5 million             1.5 billion                 80%
    transactions processed   trade events occur   total Facebook posts &   of all available data
       every day in North       every second          Tweets per day       will be uncertain by
            America                                                                2015
What does a Big Data platform do?
 Extract insights from a large volume   Analyze a Variety of Information
 of data, including a wide variety of   Novel analytics on a broad set of mixed information that could not be analyzed
                                        before Multiple relational & non-relational data types and schemas
 types, with high velocity

                                         Analyze Information in Motion
                                         Streaming data analysis
                                         Large volume data bursts & ad-hoc analysis


                                         Analyze Extreme Volumes of Information
                                         Cost-efficiently process and analyze petabytes of information
                                         Manage & analyze high volumes of structured, relational data



                                         Discover & Experiment
                                         Ad-hoc analytics, data discovery & experimentation



                                         Manage & Plan
                                         Enforce data structure, integrity and control to ensure consistency for
                                         repeatable queries
IBM Big Data Platform
What are Social Technologies




          Source: McKinsey & Co. The social economy: Unlocking value and productivity through social technologies, Jul 2012,
What is Influencing This Trend?

  TECHNOLOGIES change Interactions                                    CONTROL changes hands
 • Learning systems interact with humans
 • Analytics create value for clients                                  •   The front office is now customer-owned-devices
 • Slick integration between platforms, channels, computers, phones,   •   The next App Store - who owns it?
   devices…or not                                                      •   Cloud as a business model vs. just technology
 • Biometrics for authentication                                       •   Payments multiply: “50 ways to give you money”


  CULTURAL THEMES change value propositions                           CUSTOMERS change segments
 • No “normal” household of customers
 • Location services, meet-ups, value in the app                       • Mobile adds billions of newly banked
                                                                       • The “pre-inheritance” periods where aging parents need help managing
 • Security issues migrate to each new service
                                                                         finances
 • Privacy continues to decline                                        • Wealth Management as $trillions transfer
 • Social media usage is no longer age-related                         • New value aggregators steal customers




17
How are Banks Trying to Use Them?




Source: The Financial Brand, Oct 25 2012, http://thefinancialbrand.com/25875/bank-and-credit-union-technology-trends/, quoting Celent report “Emerging
Technologies in Retail Banking: The Long Road to Customer Centricity”. Aug 2012
The 2013 Point of View



•   Empowered Customers - Think Like a Retailer
•   Simplicity Low Cost - Act like a Manufacturer
•   Common Agile Processes - Operate as One Bank
•   Capital – Embed Risk Management
Why do Clients Buy BPM?

         IT                                     LoB                           C-Level



IT Automation and Optimisation   Process Automation and Optimisation   Enterprise Performance Optimisation
 • Time to value                 • Automate a manual process            • Innovation

 • Total cost of ownership       • Visibility and ROI                   • Go to market

 • Prebuilt assets               • Quicker, better, cheaper             • Customer centricity

 • Reuse                         • Compliance                           • Product flexibility

 • IT standards                  • Target operating model               • Industry standards




              System                                                               Business
              Agility                                   Process                     Agility
                                                         Agility
BPM reduces paper consumption, streamline processes and shorten
cycle times
                                                                                      Onboarding &
         Before: Long, multistep process   After: Streamlined and efficient process     Origination
                  without BPM                             with BPM                     Optimization




                                                    Inefficient processes:
                                                   Paper-based processes
                                                requiring human intervention
                                                          Wait time
                                                     Efficient processes:
                                                   Semiautomated activity
                                              Fully automated electronic activity
The reference architecture
                                                                 Modelling


                                                                  Simulation &
                         Invoice          Finance   Executive    Optimizzazion
                         Reconciliation   & Ops
            Users        Teams
                                                    Management
         Customer                                                Workflow
         Service        Account
                        Administration
                                                                 Business rules


                                                                 Data

Org & Functions
                                                                 User Interface


                                                                 Documents


                                                                 SOA Services
                                           IT
                                                                 Applications
                                                    SOA          integration

     BPM                                                         Metrics & Monitoring


                                                                 Analysis & Reporting
Generic Lending Process Flow

                 Decisioning                                             Validation                             Processing
                     Credit
 Loan                Scoring           Initial                                  Loan Doc         Client                          Payment &
                                                  Appraisal      Underwriting                                   Securitization
 Application         Supporting        Decision                                 Packaging        Sign off                        Servicing
                     Docs



                          Client
                                                  Typical Results:
                                                                                                                                  Onboarding &

                                                  Reduce cost per loan by 50%                                                     Origination
                                                                                                                                  Optimization

                        Branch                    Reduce processing time by 80%
                                                  Simultaneous and effortless access to all parties
               Origination                        Process over 85% of loans electronically
                                                  Resolve 60% of inquiries on first call
        Credit
        Bureau                 CRM
                                                   Credit card      Consumer          Mortgage       Business       Student
                             Systems               processing                          lending
                                                                     lending                         lending        lending
The 2013 Point of View


•   Empowered Customers - Think Like a Retailer
•   Simplicity Low Cost - Act like a Manufacturer
•   Common Agile Processes - Operate as One Bank
•   Capital – Embed Risk Management
Capital – Embed Risk Management



•   Basel II / Basel III / Liquidity…………..
•   G-SIBs
•   D-SIBs?
•   Business Model Reinvention - Capital Planning / Forecasting
•   Risk Data
•   Embed into Business Decisions
IBM’s Strategy – To be the leading provider of integrated risk and compliance solutions to the Financial
 Services Industry by enabling clients to effectively manage evolving regulatory compliance mandates while
 improving performance.

Our Capabilities                           Client Needs Addressed

1 – Regulatory Compliance -Process and         Transformation driven by Regulatory Changes (i.e. Fed/OCC, FSA, Dodd-Frank, Living
Governance                                      Wills, etc.)
                                               FED/OCC Consent Orders in Mortgage/Lending, FFIEC Exam Prep, Internal/External
                                                Audit Findings, Legal eDiscovery, Records Mgmt
                                               Operating Model Improvements, Data Security/CyberSecurity

2 – Risk and Security Application              Address new Compliance Mandates (Basel AMA, RCSA, Solvency II, Dodd-Frank,
Architecture and Implementation                 FSA, IFRS)
                                               Reduce cost of compliance, while improving transparency
                                               Improve automation, risk/control monitoring effectiveness

3 – Data Architecture                          New Data and reporting standards for Basel II/III and Solvency II and Architecture
                                                needs
                                               Finance and Risk Data Integration and Consolidation
                                               Time to Data and Cost of IT
                                               Accelerated Reporting (Intraday) requirements

4 – Risk Analytics and Reporting               New Regulatory Requirements for Basel III – Liquidity, ALM, Reg/Economic Capital,
                                                Stress Testing
                                               Data Quality and availability for timely, accurate reporting
                                               Automation and Instrumentation of Risk and Control Data for reporting, analytics and
                                                key risk indicators/metrics
                                                IBM Confidential – Internal Use Only
IBM Risk Management, Solution Domain Summary: CRO



                Risk Enabled Decision Support & Optimization*
                                                                                                                          CRO                                                                                                                                        CFO                                                  CCO                                                                                         CIO

     LINES
                                                                                                                                                           Risk Enabled Decision Support*
       OF
                                                                                                         Risk Analytics*                                                                                                                                                              GRC Management*                                                                                                                                                                       Services
    BUSINESS




                                                                                                                                                                                                                                                                                                                                                                                          Business Continuity
                                                                                     Credit Operations
                                                                                                                                    Capital Analytics




                                                                                                                                                                                                                                                                                                                                                                                                                             IT Security Risk
                                                                                                                                                                                                                                                                                                                                                          IT Governance
                                                                Management




                                                                                                                                                                                                                   Operational Risk




                                                                                                                                                                                                                                                                                         Internal Audit



                                                                                                                                                                                                                                                                                                                        Compliance




                                                                                                                                                                                                                                                                                                                                                                                                                                                           Vendor risk
                                                                                                                                                                                                                                                           Reporting
                                                                                                                                                                             Actuarial Risk
                                                                                                                                                                                                                                                                                                                                                                                                                                                                           Strategic
                                                                 Collateral




                                                                                                                                          Liquidity Risk




                                                                                                                                                                                                                                                           Financial
                                                                                                                          Market Risk




                                                                                                                                                                                                                                                                                                                         Policy &
                                                                                                            Credit Risk
     RETAIL
                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Consulting




                                                                                                                                             ALM &




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        GTS,GBS SWG-Lab
     CAPITAL
    MARKETS                                                                                                                                                                                                                                                                                                                                                                                                                                                               Integration




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            GBS/BAO
   COMMERCIAL
                                                                                                                                                                                                                                                                                                                                                                                                                                                                           Services
     LENDING
                                                                                                                                                       Data Aggregation and Monitoring*                                                                                                                                                                                                                                                                                   Implement-




                                                                                                                                                                                                Fraud Monitoring
                                                                                                                                                           Loss Event Data




                                                                                                                                                                                                                                                                   Industry Content




                                                                                                                                                                                                                                                                                                                                         Legal Case Mgt
                                                                                                                                                                                                                                                Cntll Monitoring




                                                                                                                                                                                                                                                                                      Records Mgmt
                                                                                                                                                                                                                                                                                                                                                                                                                                                                             ation




                                                                                                                                                                                                                                Seg of Duties
    INSURANCE                                                                 Trusted Risk Information




                                                                                                                                                                                                                                                                                                                                                                   IT Ops Mgmt
                                                                                                                                                                                                                                                                                                          E-Discovery
                                                                                                                                                                                                                                                                                                                                                                                     SIEM




                                                                                                                                                                                                                                                                                                                            Asset Mgmt
                                                                                                                                            KRI Mgmt




                                                                                                                                                                                                                                                                                                                                                                                                                                                            Access / IM
                                                                                     Warehouse




                                                                                                                                                                                                                                                                                                                                                                                 Application
                                                                                                                                                                                                                                                                                                                                                                                                                                                                           Services




                                                                                                                                                                                                                                                                                                                                                                                                                Database




                                                                                                                                                                                                                                                                                                                                                                                                                                                Endpoint
                                                                                                                                                                                                                                                                                                                                                                                                                           Network
                                                                                                                                                                                  AML
     ASSET
    SERVICES
                                                                              Consolidated Risk
                                                                                   Data
                                                                                                            Results Datamart                                                                                                                                                                                                                                                                                                                                              Operational
                                                                                                                                                                                                                                                                                                                                                                                                                                                                           Change
     WEALTH                                                                                                                                                                                                                                                                                                                                                                      IBM Security Solutions                                                                     Mgmt
      MGMT                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Services
                                                                                                                                                                                              Operational Systems




                                                                                                                                                               * representative solutions
IBM Risk Management, Solution Domain Summary: CFO




                  Risk Enabled Decision Support & Optimization*
                                                                                                                            CRO                                                                                                                                        CFO                                                  CCO                                                                                         CIO

       LINES
                                                                                                                                                             Risk Enabled Decision Support*
        OF
                                                                                                           Risk Analytics*                                                                                                                                                              GRC Management*                                                                                                                                                                       Services
     BUSINESS




                                                                                                                                                                                                                                                                                                                                                                                            Business Continuity
                                                                                       Credit Operations
                                                                                                                                      Capital Analytics




                                                                                                                                                                                                                                                                                                                                                                                                                               IT Security Risk
                                                                                                                                                                                                                                                                                                                                                            IT Governance
                                                                  Management




                                                                                                                                                                                                                     Operational Risk




                                                                                                                                                                                                                                                                                           Internal Audit



                                                                                                                                                                                                                                                                                                                          Compliance




                                                                                                                                                                                                                                                                                                                                                                                                                                                             Vendor risk
                                                                                                                                                                                                                                                             Reporting
                                                                                                                                                                               Actuarial Risk
                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Strategic

                                                                   Collateral




                                                                                                                                            Liquidity Risk




                                                                                                                                                                                                                                                             Financial
                                                                                                                            Market Risk




                                                                                                                                                                                                                                                                                                                           Policy &
                                                                                                              Credit Risk
       RETAIL
                                                                                                                                                                                                                                                                                                                                                                                                                                                                            Consulting




                                                                                                                                               ALM &




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          GTS,GBS SWG-Lab
      CAPITAL
      MARKETS                                                                                                                                                                                                                                                                                                                                                                                                                                                               Integration




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              GBS/BAO
     COMMERCIAL
                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Services
      LENDING
                                                                                                                                                         Data Aggregation and Monitoring*                                                                                                                                                                                                                                                                                   Implement-




                                                                                                                                                                                                  Fraud Monitoring
                                                                                                                                                             Loss Event Data




                                                                                                                                                                                                                                                                     Industry Content




                                                                                                                                                                                                                                                                                                                                           Legal Case Mgt
                                                                                                                                                                                                                                                  Cntll Monitoring




                                                                                                                                                                                                                                                                                        Records Mgmt
                                                                                                                                                                                                                                                                                                                                                                                                                                                                               ation




                                                                                                                                                                                                                                  Seg of Duties
     INSURANCE                                                                  Trusted Risk Information




                                                                                                                                                                                                                                                                                                                                                                     IT Ops Mgmt
                                                                                                                                                                                                                                                                                                            E-Discovery
                                                                                                                                                                                                                                                                                                                                                                                       SIEM




                                                                                                                                                                                                                                                                                                                              Asset Mgmt
                                                                                                                                              KRI Mgmt




                                                                                                                                                                                                                                                                                                                                                                                                                                                              Access / IM
                                                                                       Warehouse




                                                                                                                                                                                                                                                                                                                                                                                   Application
                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Services




                                                                                                                                                                                                                                                                                                                                                                                                                  Database




                                                                                                                                                                                                                                                                                                                                                                                                                                                  Endpoint
                                                                                                                                                                                                                                                                                                                                                                                                                             Network
                                                                                                                                                                                    AML
       ASSET
      SERVICES
                                                                                Consolidated Risk
                                                                                     Data
                                                                                                              Results Datamart                                                                                                                                                                                                                                                                                                                                              Operational
                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Change
      WEALTH                                                                                                                                                                                                                                                                                                                                                                       IBM Security Solutions                                                                     Mgmt
       MGMT                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Services
                                                                                                                                                                                                Operational Systems




                                                                                                                                                             * representative solutions
IBM Risk Management, Solution Domain Summary: CCO



                Risk Enabled Decision Support & Optimization*
                                                                                                                          CRO                                                                                                                                      CFO                                                  CCO                                                                                     CIO

     LINES
                                                                                                                                                           Risk Enabled Decision Support*
      OF
                                                                                                         Risk Analytics*                                                                                                                                                              GRC Management*                                                                                                                                                                       Services
   BUSINESS




                                                                                                                                                                                                                                                                                                                                                                                          Business Continuity
                                                                                     Credit Operations
                                                                                                                                    Capital Analytics




                                                                                                                                                                                                                                                                                                                                                                                                                             IT Security Risk
                                                                                                                                                                                                                                                                                                                                                          IT Governance
                                                                Management




                                                                                                                                                                                                                   Operational Risk




                                                                                                                                                                                                                                                                                         Internal Audit



                                                                                                                                                                                                                                                                                                                        Compliance




                                                                                                                                                                                                                                                                                                                                                                                                                                                           Vendor risk
                                                                                                                                                                                                                                                           Reporting
                                                                                                                                                                             Actuarial Risk
                                                                                                                                                                                                                                                                                                                                                                                                                                                                           Strategic
                                                                 Collateral




                                                                                                                                          Liquidity Risk




                                                                                                                                                                                                                                                           Financial
                                                                                                                          Market Risk




                                                                                                                                                                                                                                                                                                                         Policy &
                                                                                                            Credit Risk
     RETAIL
                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Consulting




                                                                                                                                             ALM &




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        GTS,GBS SWG-Lab
    CAPITAL
    MARKETS                                                                                                                                                                                                                                                                                                                                                                                                                                                               Integration




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            GBS/BAO
   COMMERCIAL
                                                                                                                                                                                                                                                                                                                                                                                                                                                                           Services
    LENDING
                                                                                                                                                       Data Aggregation and Monitoring*                                                                                                                                                                                                                                                                                   Implement-




                                                                                                                                                                                                Fraud Monitoring
                                                                                                                                                           Loss Event Data




                                                                                                                                                                                                                                                                   Industry Content




                                                                                                                                                                                                                                                                                                                                         Legal Case Mgt
                                                                                                                                                                                                                                                Cntll Monitoring




                                                                                                                                                                                                                                                                                      Records Mgmt
                                                                                                                                                                                                                                                                                                                                                                                                                                                                             ation




                                                                                                                                                                                                                                Seg of Duties
   INSURANCE                                                                  Trusted Risk Information




                                                                                                                                                                                                                                                                                                                                                                   IT Ops Mgmt
                                                                                                                                                                                                                                                                                                          E-Discovery
                                                                                                                                                                                                                                                                                                                                                                                     SIEM




                                                                                                                                                                                                                                                                                                                            Asset Mgmt
                                                                                                                                            KRI Mgmt




                                                                                                                                                                                                                                                                                                                                                                                                                                                            Access / IM
                                                                                     Warehouse




                                                                                                                                                                                                                                                                                                                                                                                 Application
                                                                                                                                                                                                                                                                                                                                                                                                                                                                           Services




                                                                                                                                                                                                                                                                                                                                                                                                                Database




                                                                                                                                                                                                                                                                                                                                                                                                                                                Endpoint
                                                                                                                                                                                                                                                                                                                                                                                                                           Network
                                                                                                                                                                                  AML
     ASSET
    SERVICES
                                                                              Consolidated Risk
                                                                                   Data
                                                                                                            Results Datamart                                                                                                                                                                                                                                                                                                                                              Operational
                                                                                                                                                                                                                                                                                                                                                                                                                                                                           Change
    WEALTH                                                                                                                                                                                                                                                                                                                                                                       IBM Security Solutions                                                                     Mgmt
     MGMT                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Services
                                                                                                                                                                                              Operational Systems




                                                                                                                                                                    * representative solutions
IBM Software Day 2013. Banking trends and transformation
IBM Software Day 2013. Banking trends and transformation

Más contenido relacionado

Similar a IBM Software Day 2013. Banking trends and transformation

Customer analytics and business optimization drive higher customer satisfacti...
Customer analytics and business optimization drive higher customer satisfacti...Customer analytics and business optimization drive higher customer satisfacti...
Customer analytics and business optimization drive higher customer satisfacti...Casey Lucas
 
IBM Confidently Provide Guidance with IBM Cognos TM1 and What-if Analysis
IBM Confidently Provide Guidance with IBM Cognos TM1 and What-if AnalysisIBM Confidently Provide Guidance with IBM Cognos TM1 and What-if Analysis
IBM Confidently Provide Guidance with IBM Cognos TM1 and What-if AnalysisIBM Sverige
 
Predictive Analytics: The Next Wave in Business Intelligence
Predictive Analytics: The Next Wave in Business IntelligencePredictive Analytics: The Next Wave in Business Intelligence
Predictive Analytics: The Next Wave in Business IntelligencePerficient, Inc.
 
Leveraging Analytics to achieve your Customer Experience Objectives
Leveraging Analytics to achieve your Customer Experience ObjectivesLeveraging Analytics to achieve your Customer Experience Objectives
Leveraging Analytics to achieve your Customer Experience ObjectivesJj HanXue
 
Analytics & MIS Planning for Your Internet Retail Store By Manish Chaturvedi
Analytics & MIS Planning for Your Internet Retail Store By Manish ChaturvediAnalytics & MIS Planning for Your Internet Retail Store By Manish Chaturvedi
Analytics & MIS Planning for Your Internet Retail Store By Manish Chaturvediiamwire
 
McKinsey Case Compettion
McKinsey Case CompettionMcKinsey Case Compettion
McKinsey Case CompettionPramod Jindal
 
Customer Experience Management for Startups
Customer Experience Management for StartupsCustomer Experience Management for Startups
Customer Experience Management for StartupsBusiness Over Broadway
 
The Business Case for Agile
The Business Case for AgileThe Business Case for Agile
The Business Case for AgileMaurice Hagar
 
Virtualizing SMBs Canalys Executive Summary
Virtualizing SMBs Canalys Executive SummaryVirtualizing SMBs Canalys Executive Summary
Virtualizing SMBs Canalys Executive SummaryArrow ECS UK
 
Automotive Digital Marketing Search Marketing Combined Strategy
Automotive Digital Marketing Search Marketing Combined StrategyAutomotive Digital Marketing Search Marketing Combined Strategy
Automotive Digital Marketing Search Marketing Combined StrategyRalph Paglia
 
IBM Social Business, Joseph Preston
IBM Social Business, Joseph PrestonIBM Social Business, Joseph Preston
IBM Social Business, Joseph PrestonIBMSERBIA
 
Integrated marketing for the customer journey
Integrated marketing for the customer journeyIntegrated marketing for the customer journey
Integrated marketing for the customer journeyIBM
 
Information Is King
Information Is KingInformation Is King
Information Is KingManish Desai
 
iStrategy Melbourne - Customer Relevance: The Next Frontier for Competitive A...
iStrategy Melbourne - Customer Relevance: The Next Frontier for Competitive A...iStrategy Melbourne - Customer Relevance: The Next Frontier for Competitive A...
iStrategy Melbourne - Customer Relevance: The Next Frontier for Competitive A...iStrategy
 
Analytics In Action - How Marketelligent Helped A Bank Retain Its Profitable ...
Analytics In Action - How Marketelligent Helped A Bank Retain Its Profitable ...Analytics In Action - How Marketelligent Helped A Bank Retain Its Profitable ...
Analytics In Action - How Marketelligent Helped A Bank Retain Its Profitable ...Marketelligent
 
ThinkVine Boosting Media Value
ThinkVine Boosting Media ValueThinkVine Boosting Media Value
ThinkVine Boosting Media ValueDatalicious
 
Fast Track to Future Ready Banking Operations
Fast Track to Future Ready Banking OperationsFast Track to Future Ready Banking Operations
Fast Track to Future Ready Banking OperationsAccenture Operations
 
working smarter - implementing dynamic, collaborative or connected working pr...
working smarter - implementing dynamic, collaborative or connected working pr...working smarter - implementing dynamic, collaborative or connected working pr...
working smarter - implementing dynamic, collaborative or connected working pr...ibmvietnam
 
Process Consulting Perspective
Process Consulting PerspectiveProcess Consulting Perspective
Process Consulting PerspectiveVibhanshu Sharma
 

Similar a IBM Software Day 2013. Banking trends and transformation (20)

Customer analytics and business optimization drive higher customer satisfacti...
Customer analytics and business optimization drive higher customer satisfacti...Customer analytics and business optimization drive higher customer satisfacti...
Customer analytics and business optimization drive higher customer satisfacti...
 
IBM Confidently Provide Guidance with IBM Cognos TM1 and What-if Analysis
IBM Confidently Provide Guidance with IBM Cognos TM1 and What-if AnalysisIBM Confidently Provide Guidance with IBM Cognos TM1 and What-if Analysis
IBM Confidently Provide Guidance with IBM Cognos TM1 and What-if Analysis
 
Predictive Analytics: The Next Wave in Business Intelligence
Predictive Analytics: The Next Wave in Business IntelligencePredictive Analytics: The Next Wave in Business Intelligence
Predictive Analytics: The Next Wave in Business Intelligence
 
Leveraging Analytics to achieve your Customer Experience Objectives
Leveraging Analytics to achieve your Customer Experience ObjectivesLeveraging Analytics to achieve your Customer Experience Objectives
Leveraging Analytics to achieve your Customer Experience Objectives
 
India Channels Satisfaction- 2010
India Channels Satisfaction- 2010India Channels Satisfaction- 2010
India Channels Satisfaction- 2010
 
Analytics & MIS Planning for Your Internet Retail Store By Manish Chaturvedi
Analytics & MIS Planning for Your Internet Retail Store By Manish ChaturvediAnalytics & MIS Planning for Your Internet Retail Store By Manish Chaturvedi
Analytics & MIS Planning for Your Internet Retail Store By Manish Chaturvedi
 
McKinsey Case Compettion
McKinsey Case CompettionMcKinsey Case Compettion
McKinsey Case Compettion
 
Customer Experience Management for Startups
Customer Experience Management for StartupsCustomer Experience Management for Startups
Customer Experience Management for Startups
 
The Business Case for Agile
The Business Case for AgileThe Business Case for Agile
The Business Case for Agile
 
Virtualizing SMBs Canalys Executive Summary
Virtualizing SMBs Canalys Executive SummaryVirtualizing SMBs Canalys Executive Summary
Virtualizing SMBs Canalys Executive Summary
 
Automotive Digital Marketing Search Marketing Combined Strategy
Automotive Digital Marketing Search Marketing Combined StrategyAutomotive Digital Marketing Search Marketing Combined Strategy
Automotive Digital Marketing Search Marketing Combined Strategy
 
IBM Social Business, Joseph Preston
IBM Social Business, Joseph PrestonIBM Social Business, Joseph Preston
IBM Social Business, Joseph Preston
 
Integrated marketing for the customer journey
Integrated marketing for the customer journeyIntegrated marketing for the customer journey
Integrated marketing for the customer journey
 
Information Is King
Information Is KingInformation Is King
Information Is King
 
iStrategy Melbourne - Customer Relevance: The Next Frontier for Competitive A...
iStrategy Melbourne - Customer Relevance: The Next Frontier for Competitive A...iStrategy Melbourne - Customer Relevance: The Next Frontier for Competitive A...
iStrategy Melbourne - Customer Relevance: The Next Frontier for Competitive A...
 
Analytics In Action - How Marketelligent Helped A Bank Retain Its Profitable ...
Analytics In Action - How Marketelligent Helped A Bank Retain Its Profitable ...Analytics In Action - How Marketelligent Helped A Bank Retain Its Profitable ...
Analytics In Action - How Marketelligent Helped A Bank Retain Its Profitable ...
 
ThinkVine Boosting Media Value
ThinkVine Boosting Media ValueThinkVine Boosting Media Value
ThinkVine Boosting Media Value
 
Fast Track to Future Ready Banking Operations
Fast Track to Future Ready Banking OperationsFast Track to Future Ready Banking Operations
Fast Track to Future Ready Banking Operations
 
working smarter - implementing dynamic, collaborative or connected working pr...
working smarter - implementing dynamic, collaborative or connected working pr...working smarter - implementing dynamic, collaborative or connected working pr...
working smarter - implementing dynamic, collaborative or connected working pr...
 
Process Consulting Perspective
Process Consulting PerspectiveProcess Consulting Perspective
Process Consulting Perspective
 

Más de IBM (Middle East and Africa)

Software Day 2013. Social Business and Commerce Strategy
Software Day 2013. Social Business and Commerce StrategySoftware Day 2013. Social Business and Commerce Strategy
Software Day 2013. Social Business and Commerce StrategyIBM (Middle East and Africa)
 
IBM Software Day 2013. Defending against cyber threats with security intellig...
IBM Software Day 2013. Defending against cyber threats with security intellig...IBM Software Day 2013. Defending against cyber threats with security intellig...
IBM Software Day 2013. Defending against cyber threats with security intellig...IBM (Middle East and Africa)
 
IBM Software Day 2013. Making innovation real through accelerated software an...
IBM Software Day 2013. Making innovation real through accelerated software an...IBM Software Day 2013. Making innovation real through accelerated software an...
IBM Software Day 2013. Making innovation real through accelerated software an...IBM (Middle East and Africa)
 
IBM Software Day 2013. Smarter analytics and big data. building the next gene...
IBM Software Day 2013. Smarter analytics and big data. building the next gene...IBM Software Day 2013. Smarter analytics and big data. building the next gene...
IBM Software Day 2013. Smarter analytics and big data. building the next gene...IBM (Middle East and Africa)
 
IBM Software Day 2013. A mobile strategy is essential
IBM Software Day 2013. A mobile strategy is essentialIBM Software Day 2013. A mobile strategy is essential
IBM Software Day 2013. A mobile strategy is essentialIBM (Middle East and Africa)
 
IBM Software Day 2013. Unleash business innovation with the next generation o...
IBM Software Day 2013. Unleash business innovation with the next generation o...IBM Software Day 2013. Unleash business innovation with the next generation o...
IBM Software Day 2013. Unleash business innovation with the next generation o...IBM (Middle East and Africa)
 
IBM Software Day 2013. Turning opportunities into outcomes
IBM Software Day 2013. Turning opportunities into outcomesIBM Software Day 2013. Turning opportunities into outcomes
IBM Software Day 2013. Turning opportunities into outcomesIBM (Middle East and Africa)
 

Más de IBM (Middle East and Africa) (18)

Run the good race with Collaborative innovation
Run the good race with Collaborative innovationRun the good race with Collaborative innovation
Run the good race with Collaborative innovation
 
Sketching out a cognitive masterpiece
Sketching out a cognitive masterpieceSketching out a cognitive masterpiece
Sketching out a cognitive masterpiece
 
Cognitive Future In Customer Engagement
Cognitive Future In Customer EngagementCognitive Future In Customer Engagement
Cognitive Future In Customer Engagement
 
Bridging Offline and Digital Channels
Bridging Offline and Digital ChannelsBridging Offline and Digital Channels
Bridging Offline and Digital Channels
 
Why is Cloud So important to Your Business
Why is Cloud So important to Your Business Why is Cloud So important to Your Business
Why is Cloud So important to Your Business
 
A Partner Ecosystem That Brings Value to Clients
A Partner Ecosystem That Brings Value to ClientsA Partner Ecosystem That Brings Value to Clients
A Partner Ecosystem That Brings Value to Clients
 
BlueMix- The Digital Transformation Platform
BlueMix- The Digital Transformation PlatformBlueMix- The Digital Transformation Platform
BlueMix- The Digital Transformation Platform
 
Software Day 2013. Social Business and Commerce Strategy
Software Day 2013. Social Business and Commerce StrategySoftware Day 2013. Social Business and Commerce Strategy
Software Day 2013. Social Business and Commerce Strategy
 
Changing the economics of it
Changing the economics of itChanging the economics of it
Changing the economics of it
 
IBM Software Day 2013. Defending against cyber threats with security intellig...
IBM Software Day 2013. Defending against cyber threats with security intellig...IBM Software Day 2013. Defending against cyber threats with security intellig...
IBM Software Day 2013. Defending against cyber threats with security intellig...
 
IBM Software Day 2013. Making innovation real through accelerated software an...
IBM Software Day 2013. Making innovation real through accelerated software an...IBM Software Day 2013. Making innovation real through accelerated software an...
IBM Software Day 2013. Making innovation real through accelerated software an...
 
IBM Software Day 2013. Smarter analytics and big data. building the next gene...
IBM Software Day 2013. Smarter analytics and big data. building the next gene...IBM Software Day 2013. Smarter analytics and big data. building the next gene...
IBM Software Day 2013. Smarter analytics and big data. building the next gene...
 
IBM Software Day 2013. A mobile strategy is essential
IBM Software Day 2013. A mobile strategy is essentialIBM Software Day 2013. A mobile strategy is essential
IBM Software Day 2013. A mobile strategy is essential
 
IBM Software Day 2013. Process innovation
IBM Software Day 2013. Process innovationIBM Software Day 2013. Process innovation
IBM Software Day 2013. Process innovation
 
IBM Software Day 2013. Unleash business innovation with the next generation o...
IBM Software Day 2013. Unleash business innovation with the next generation o...IBM Software Day 2013. Unleash business innovation with the next generation o...
IBM Software Day 2013. Unleash business innovation with the next generation o...
 
Smarter government
Smarter governmentSmarter government
Smarter government
 
IBM Software Day 2013. Turning opportunities into outcomes
IBM Software Day 2013. Turning opportunities into outcomesIBM Software Day 2013. Turning opportunities into outcomes
IBM Software Day 2013. Turning opportunities into outcomes
 
IBM Software Day 2013. A mandate for leadership
IBM Software Day 2013. A mandate for leadershipIBM Software Day 2013. A mandate for leadership
IBM Software Day 2013. A mandate for leadership
 

IBM Software Day 2013. Banking trends and transformation

  • 2. Trends and Transformation …..Driven by Software…………. Neil Beckley FSS Industry Leader, GMU
  • 3. The ROE Challenge Global Banks In the “New Normal” of lower-for-longer interest rates, below-trend growth and less leverage, we expect banks’  The lowest level of revenue growth for the banking management to increasingly focus on restructuring industry globally since 2008, at the height of the global financial crisis – UBS business models in order to improve returns - Citi, 4 January 2013 Emerging Markets  Declining ROEs – In 2013, banks across emerging markets could face one of the most challenging In Europe, shareholders have been operating environments in recent years, culminating in asked to provide double the amount of sector ROE falling to its lowest level since 2003 – UBS capital for effectively the same level of return - profit having only recovered to North America 2007 levels  Expect the median bank to see revenue decline 1% yoy as balance sheet growth is offset by NIM declines and mortgage banking shifts from a source of earnings growth to stability – Goldman Sachs Europe  In the UK upcoming banking reforms could cost GBP 4bn-7bn, which will likely reduce the UK banks’ ROEs by c 2.4-4.1 – UBS
  • 4. What Banking CIOs tell us: Most important visionary plan elements (Interviewed CIOs could select as many as they wanted) 83% Business Intelligence and analytics 81% 74% Mobility solutions 76% 58% Risk management and compliance 72% 68% Virtualization 70% 60% Business process management 70% 57% Self-service portals 53% 55% Collaboration and Social Networking 48% 60% Cloud computing 48% Global sample Banking Source: 2011 CIO Study, Q12: “Which visionary plans do you have to increase competitiveness over the next 3 to 5 years?”; Global sample (n=3,018); Banking (n=311)
  • 5. Dynamic Banking Tougher Banking Environment • Increasing regulation & control Tremendous Growth Potential • Mature markets continue to deleverage • Banking the unbanked • Declining profitability • Leverage the SME opportunity • Compounded by trust & reputation Issues • Drive new revenue growth through customer centricity • Continue to exploit cost efficiencies Smarter & More Demanding Customers • Technology explosion • More demanding, less loyal customers • Comparison Shoppers • New entrants will exploit gaps
  • 6. This translates into a few key focus areas… Create a customer focused enterprise Optimize enterprise risk Improve operational and compliance efficiency and agility
  • 7. The 2013 Point Of View • Empowered Customers - Think Like a Retailer • Simplicity Low Cost - Act like a Manufacturer • Common Agile Processes - Operate as One Bank • Capital – Embed Risk Management
  • 8. To thrive in the new environment Banks will need to “Think Like Retailers, Act Like Low Cost Manufacturers” Right Customer Customer Segmentation Right Service Right Time Customer Customer Service Insight Right Place Right Product Multi-Channel Product / Service Optimisation Lifecycle Right Price Price Optimisation Enabled through Front Office Digitization, Advanced Business Analytics & Information Management
  • 9. The ability to create competitive advantage using analytics surged dramatically in 12 months; the bottom-line impact is clear Respondents who say Organizations achieving a competitive advantage with analytics are analytics creates a competitive advantage 2.2x more likely to 69% substantially outperform their industry peers Banking 2011 58% 97% 35% increase 2010 37% Banking 57% Ratio of respondents who indicated analytics creates increase a competitive advantage to those who indicated it did not and the likelihood they also indicated their organizations was “substantially outperforming their competitive peers”. The ratio was 2.0 to1 in 2010. Source: The New Intelligent Enterprise a joint MIT Sloan Management Review and IBM Institute of Business Value analytics research partnership. Copyright © Massachusetts Institute of Technology 2011.
  • 10. Early adopters have outpaced others in gaining competitive advantage by expanding the use of analytics Respondents who cited a competitive advantage using analytics year-over-year 2011 80% 23% Transformed increase 2010 65% 2011 63% 66% Experienced increase 2010 38% 2011 5% Aspirational decrease 2010 39% Source: The New Intelligent Enterprise a joint MIT Sloan Management Review and IBM Institute of Business Value analytics research partnership. Copyright © Massachusetts Institute of Technology 2011.
  • 11. Transformed organizations outpaced all others in integrating analytics into core strategies and operations in the past 12 months Respondents increasing their integration of analytics into strategy and operations Transformed organizations creating a competitive advantage are Transformed 70% 3.4x more likely to Experienced substantially outperform their industry peers 55% Ratio of Transformed organizations creating a Aspirational competitive advantage compared to Aspirational organizations not creating an advantage that self- 34% assessed as “substantially outperforming their competitive peers.” Source: The New Intelligent Enterprise a joint MIT Sloan Management Review and IBM Institute of Business Value analytics research partnership. Copyright © Massachusetts Institute of Technology 2011.
  • 12. The BAO Reference Architecture Overview Content Master Data Data Data BI / Performance Advanced Sources Management Integration Repositories Access Management Monitoring Analytics Operational Enterprise Extract / Dimensional Planning, Predictive Web / Orchestration Subscribe Layer Forecasting, Analytics Services Apps Ingestion Components Budgeting Data R Portal Unstructured Data Data CRUD Quality E Extraction Warehouse Scorecards Mining Data Stores Transactional B A Components A L Device Structured Transform T T Operational Dashboards Simulation Data Stores Base Services C I Data Store Composite Data Load H M Application Load / Informational Components Publish E Time Guided Text Analytics Document Persistent Analysis Collaborative Master / Management Repository T Application Reference Services Reference Data Optimization R Reporting Data Management A Master Data Productivity Records Store External N Querying Application Management Visualization S Services Content Store A Enterprise Web C Monitoring Search Federation TI O Staging Area Business Devices N Unit A Application L Business Process Management Service Management Information Governance Collaboration Security, Privacy & Compliance Transport & Delivery Infrastructure
  • 13. Big Data: The Next Natural Resource Data “behaves” like a natural resource in that it can be found, extracted, refined, and fuel the cognitive engine Volume Velocity Variety Veracity 300 million 5 million 1.5 billion 80% transactions processed trade events occur total Facebook posts & of all available data every day in North every second Tweets per day will be uncertain by America 2015
  • 14. What does a Big Data platform do? Extract insights from a large volume Analyze a Variety of Information of data, including a wide variety of Novel analytics on a broad set of mixed information that could not be analyzed before Multiple relational & non-relational data types and schemas types, with high velocity Analyze Information in Motion Streaming data analysis Large volume data bursts & ad-hoc analysis Analyze Extreme Volumes of Information Cost-efficiently process and analyze petabytes of information Manage & analyze high volumes of structured, relational data Discover & Experiment Ad-hoc analytics, data discovery & experimentation Manage & Plan Enforce data structure, integrity and control to ensure consistency for repeatable queries
  • 15. IBM Big Data Platform
  • 16. What are Social Technologies Source: McKinsey & Co. The social economy: Unlocking value and productivity through social technologies, Jul 2012,
  • 17. What is Influencing This Trend?  TECHNOLOGIES change Interactions CONTROL changes hands • Learning systems interact with humans • Analytics create value for clients • The front office is now customer-owned-devices • Slick integration between platforms, channels, computers, phones, • The next App Store - who owns it? devices…or not • Cloud as a business model vs. just technology • Biometrics for authentication • Payments multiply: “50 ways to give you money”  CULTURAL THEMES change value propositions CUSTOMERS change segments • No “normal” household of customers • Location services, meet-ups, value in the app • Mobile adds billions of newly banked • The “pre-inheritance” periods where aging parents need help managing • Security issues migrate to each new service finances • Privacy continues to decline • Wealth Management as $trillions transfer • Social media usage is no longer age-related • New value aggregators steal customers 17
  • 18. How are Banks Trying to Use Them? Source: The Financial Brand, Oct 25 2012, http://thefinancialbrand.com/25875/bank-and-credit-union-technology-trends/, quoting Celent report “Emerging Technologies in Retail Banking: The Long Road to Customer Centricity”. Aug 2012
  • 19. The 2013 Point of View • Empowered Customers - Think Like a Retailer • Simplicity Low Cost - Act like a Manufacturer • Common Agile Processes - Operate as One Bank • Capital – Embed Risk Management
  • 20. Why do Clients Buy BPM? IT LoB C-Level IT Automation and Optimisation Process Automation and Optimisation Enterprise Performance Optimisation • Time to value • Automate a manual process • Innovation • Total cost of ownership • Visibility and ROI • Go to market • Prebuilt assets • Quicker, better, cheaper • Customer centricity • Reuse • Compliance • Product flexibility • IT standards • Target operating model • Industry standards System Business Agility Process Agility Agility
  • 21. BPM reduces paper consumption, streamline processes and shorten cycle times Onboarding & Before: Long, multistep process After: Streamlined and efficient process Origination without BPM with BPM Optimization Inefficient processes: Paper-based processes requiring human intervention Wait time Efficient processes: Semiautomated activity Fully automated electronic activity
  • 22. The reference architecture Modelling Simulation & Invoice Finance Executive Optimizzazion Reconciliation & Ops Users Teams Management Customer Workflow Service Account Administration Business rules Data Org & Functions User Interface Documents SOA Services IT Applications SOA integration BPM Metrics & Monitoring Analysis & Reporting
  • 23. Generic Lending Process Flow Decisioning Validation Processing Credit Loan Scoring Initial Loan Doc Client Payment & Appraisal Underwriting Securitization Application Supporting Decision Packaging Sign off Servicing Docs Client Typical Results: Onboarding & Reduce cost per loan by 50% Origination Optimization Branch Reduce processing time by 80% Simultaneous and effortless access to all parties Origination Process over 85% of loans electronically Resolve 60% of inquiries on first call Credit Bureau CRM Credit card Consumer Mortgage Business Student Systems processing lending lending lending lending
  • 24. The 2013 Point of View • Empowered Customers - Think Like a Retailer • Simplicity Low Cost - Act like a Manufacturer • Common Agile Processes - Operate as One Bank • Capital – Embed Risk Management
  • 25. Capital – Embed Risk Management • Basel II / Basel III / Liquidity………….. • G-SIBs • D-SIBs? • Business Model Reinvention - Capital Planning / Forecasting • Risk Data • Embed into Business Decisions
  • 26. IBM’s Strategy – To be the leading provider of integrated risk and compliance solutions to the Financial Services Industry by enabling clients to effectively manage evolving regulatory compliance mandates while improving performance. Our Capabilities Client Needs Addressed 1 – Regulatory Compliance -Process and  Transformation driven by Regulatory Changes (i.e. Fed/OCC, FSA, Dodd-Frank, Living Governance Wills, etc.)  FED/OCC Consent Orders in Mortgage/Lending, FFIEC Exam Prep, Internal/External Audit Findings, Legal eDiscovery, Records Mgmt  Operating Model Improvements, Data Security/CyberSecurity 2 – Risk and Security Application  Address new Compliance Mandates (Basel AMA, RCSA, Solvency II, Dodd-Frank, Architecture and Implementation FSA, IFRS)  Reduce cost of compliance, while improving transparency  Improve automation, risk/control monitoring effectiveness 3 – Data Architecture  New Data and reporting standards for Basel II/III and Solvency II and Architecture needs  Finance and Risk Data Integration and Consolidation  Time to Data and Cost of IT  Accelerated Reporting (Intraday) requirements 4 – Risk Analytics and Reporting  New Regulatory Requirements for Basel III – Liquidity, ALM, Reg/Economic Capital, Stress Testing  Data Quality and availability for timely, accurate reporting  Automation and Instrumentation of Risk and Control Data for reporting, analytics and key risk indicators/metrics IBM Confidential – Internal Use Only
  • 27. IBM Risk Management, Solution Domain Summary: CRO Risk Enabled Decision Support & Optimization* CRO CFO CCO CIO LINES Risk Enabled Decision Support* OF Risk Analytics* GRC Management* Services BUSINESS Business Continuity Credit Operations Capital Analytics IT Security Risk IT Governance Management Operational Risk Internal Audit Compliance Vendor risk Reporting Actuarial Risk Strategic Collateral Liquidity Risk Financial Market Risk Policy & Credit Risk RETAIL Consulting ALM & GTS,GBS SWG-Lab CAPITAL MARKETS Integration GBS/BAO COMMERCIAL Services LENDING Data Aggregation and Monitoring* Implement- Fraud Monitoring Loss Event Data Industry Content Legal Case Mgt Cntll Monitoring Records Mgmt ation Seg of Duties INSURANCE Trusted Risk Information IT Ops Mgmt E-Discovery SIEM Asset Mgmt KRI Mgmt Access / IM Warehouse Application Services Database Endpoint Network AML ASSET SERVICES Consolidated Risk Data Results Datamart Operational Change WEALTH IBM Security Solutions Mgmt MGMT Services Operational Systems * representative solutions
  • 28. IBM Risk Management, Solution Domain Summary: CFO Risk Enabled Decision Support & Optimization* CRO CFO CCO CIO LINES Risk Enabled Decision Support* OF Risk Analytics* GRC Management* Services BUSINESS Business Continuity Credit Operations Capital Analytics IT Security Risk IT Governance Management Operational Risk Internal Audit Compliance Vendor risk Reporting Actuarial Risk Strategic Collateral Liquidity Risk Financial Market Risk Policy & Credit Risk RETAIL Consulting ALM & GTS,GBS SWG-Lab CAPITAL MARKETS Integration GBS/BAO COMMERCIAL Services LENDING Data Aggregation and Monitoring* Implement- Fraud Monitoring Loss Event Data Industry Content Legal Case Mgt Cntll Monitoring Records Mgmt ation Seg of Duties INSURANCE Trusted Risk Information IT Ops Mgmt E-Discovery SIEM Asset Mgmt KRI Mgmt Access / IM Warehouse Application Services Database Endpoint Network AML ASSET SERVICES Consolidated Risk Data Results Datamart Operational Change WEALTH IBM Security Solutions Mgmt MGMT Services Operational Systems * representative solutions
  • 29. IBM Risk Management, Solution Domain Summary: CCO Risk Enabled Decision Support & Optimization* CRO CFO CCO CIO LINES Risk Enabled Decision Support* OF Risk Analytics* GRC Management* Services BUSINESS Business Continuity Credit Operations Capital Analytics IT Security Risk IT Governance Management Operational Risk Internal Audit Compliance Vendor risk Reporting Actuarial Risk Strategic Collateral Liquidity Risk Financial Market Risk Policy & Credit Risk RETAIL Consulting ALM & GTS,GBS SWG-Lab CAPITAL MARKETS Integration GBS/BAO COMMERCIAL Services LENDING Data Aggregation and Monitoring* Implement- Fraud Monitoring Loss Event Data Industry Content Legal Case Mgt Cntll Monitoring Records Mgmt ation Seg of Duties INSURANCE Trusted Risk Information IT Ops Mgmt E-Discovery SIEM Asset Mgmt KRI Mgmt Access / IM Warehouse Application Services Database Endpoint Network AML ASSET SERVICES Consolidated Risk Data Results Datamart Operational Change WEALTH IBM Security Solutions Mgmt MGMT Services Operational Systems * representative solutions