09.00 09.40 SAP - Jans Peter - SAP Bankacılık Stratejisi Transformasyon ve Yalınlaştırma

SAP BANKING SUMMITA New Aproach

SAP Banking Strategy – Transform and SimplifyJens-Peter Jensen

Global Head of Banking Architecture & Technology Solutions

© 2012 SAP AG. All rights reserved. 3

Financial Services - Global Customer Base

17,000+

120

180+

100M +

200+

45%

300+

400M +

1,000+

160+

of capital markets front and middles offices

live bank accounts (+75M in implementation)

Mobile and / or Internet Banking

Financial Services Customers

Countries

Core Banking

Core insurance

Claims Handled

Database

Cloud

© 2012 SAP AG. All rights reserved. 4

The 4 Phases of EvolutionOur Journey to become the Industry Cloud Leader

GT

M

Strate

gy

Banking

So

lu

tio

n

Strate

gy

I. Standardization

Products

II. Verticalization

Business Processes

Industry Segments

Retail Banking

Commercial Banking

Capital Markets

Central Banks

Wealth Management

Other Financial Institutions (e.g. Development Banks)

Solutions

III. Localization

Market Requirements

Geographical

Expansion

Localized Solutions

IV. Simplification

Ease of Consumption

Market Penetration

Top 100

Top 1000

Top 10000

Focus

Phases

Cloud Solutions

Standard Functionality

Solutions People ResultsPurpose Innovations Ecosystem Join UsHome InnovationsImagine

© 2013 SAP AG. All rights reserved. 5Confidential

© 2012 SAP AG. All rights reserved. 6

Real-Time PlatformThe Opportunity – Best of Both Worlds

Real-Time Banking

Imagine EVERY service and information were

available before you have even asked for it

Customer Value

IT Simplification

Imagine every information is stored only ONCE

and available for ALL use cases

TCO reduction

Transact

Analyze

Event Event

SAP HANA Platform

10,000x Faster Process massive amounts of data, and

deliver information at unprecedented speeds

Vastly Simplified ITDeployable on-premise or in the cloud, SAP

HANA dramatically simplifies complex and

expensive

IT architectures

Simplify your technology stack with the SAP HANA platform

Applications Analytics

Insight to ActionContextual. Real-time. Closed-loop.

Simplify your user experience with a mobile-first experience

Mobile First Experience

SAP HANA Platform

Applications Analytics

© 2012 SAP AG. All rights reserved. 9

Let’s Build Better Banks

Technology plays a key role in driving the Transformation

• Changing from product driven to customer centric approach

• Overcome process boundaries resulting out of silo approach

• Layered componentized SOA architecture as key enabler

Paradigm: Industrialize at the back – differentiate at the front

Appli-cation

Appli-cation

Appli-cation

Appli-cation

Front End / Multi Channel

Process Orchestration

BusinessFunctionality

BusinessFunctionality

© 2012 SAP AG. All rights reserved. 10

SAP for Banking Platform Strategy

Technology Innovation Drives Business Innovation & Simplification

Retail

Banking

Commercial

Banking

Wealth

ManagementCentral Banks &

BuzDevBanks

OmniChannel

Sales andService

Operations

Risk and Compliance

Financec

Human Resoruces

Capital

Markets

Procurement

Information Technology

Technology and Platform

Leveraging Cross Industry Application Platform

Omnichannel Banking Platform

Core Banking Platform

Finance & Risk Platformbased on Real-Time Data Platform

Real-Time

Data

Platform

Leveraging Cross Industry Technology Platform

1. Omnichannel Platform

Mobile First

Customer intimacy

Analytics as integral part of

customer service

2. Core Banking Platform

Ready to use service

Cornerstone of real-time banking

For customer centricity same as for

compliance

3. Finance & Risk Platform

Consistent and comprehensive

Simplified and open

Easy to be adapted to new

compliance requirements

© 2012 SAP AG. All rights reserved. 11

What’s Top of Mind?Front Office

Customer

Front Office

Digital

Customer

TECHNOLOGY

Mobility,

Social, UX

New

Co

mp

e-

tito

rs

© 2012 SAP AG. All rights reserved. 12

Customer Centric Banking – Preparing for the Segment of OneOmnichannel, Sales and Service Platform

SERVICEMARKETING

SALES

Mobile

Powered by

SAP HANA

End-to-end,

Core Banking Processes

ANALYTICS

Online Branch

Channel

Contact

Center

CUSTOMER

Customer Insight

Loyalty

Flexible Product

Bundling & Pricing

Social CRM & Sentiment

Analysis Omnichannel

Real-Time Offer

Management

© 2012 SAP AG. All rights reserved. 13

National Bank of CanadaCutting Mortgage Adjudication Time by 70% with SAP® CRM

CMP27028 (13/08)

Company

National Bank of Canada

Headquarters

Montreal, Quebec

Industry

Banking

Products and Services

Commercial and retail banking and financial

services

Employees

20,000

Revenue

CAD 5.3 billion

(USD 5.06 billion)

Web Site

www.nbc.ca

Partners

Accenture, SAP Services

The company’s top objectives

Create the ultimate customer experience in terms of simplicity and value delivered

Improve advisor efficiency by standardizing, simplifying, and automating mortgage process

activities

Fulfill initial customer needs and then cross-sell and up-sell additional products

The resolution

Built a customer experience matrix covering 20 business scenarios for evaluating applications

Selected and implemented the SAP® Customer Relationship Management (SAP CRM) application

Changed business processes to match SAP software best practices

The key benefits

Freed advisors to spend more time understanding customer needs

Enhanced customer satisfaction

Increased customer retention and revenues

“With SAP CRM we demystified our siloed areas and integrated our

processes through all our channels and lines of business. It gave us a

foundation for growing the business .”

Paolo Pizzuto, Senior Vice President of Business Process Reengineering,

National Bank of Canada

-70%Time to approve a customer’s loan

request

-50%Mortgage origination costs

>4Additional products typically up-

sold to mortgage buyers

Customer

© 2012 SAP AG. All rights reserved. 14

SAP Infinite Insight powered by SAP HANA

Potential increase in take up rate of offers and

campaigns (SAP Infinite Insight, Bank of Austria)

400%

Increasing 7xresponse rate vs.

control group

Lloyds Bank cuts

modeling time from days

and weeks to hours

Response rate in first campaigns up 160% and a 35% increase in sales

© 2012 SAP AG. All rights reserved. 15

What’s Top of Mind?Middle Office

Core Operations

Middle Office

Time to

market

TECHNOLOGY

Cloud

© 2012 SAP AG. All rights reserved. 16

Industrialization = Standardization + Agility

Deposits

Loans

Leasing

Payments

Funding

…

© 2012 SAP AG. All rights reserved. 17

Deutsche Bank: Retail Banking Platform for multiple BrandsStandardize operations, differentiate towards the customer

25%Lower unit costs per

transaction

63%Reduction in legacy

product portfolio

60%Fewer interfaces to maintain

30%Faster time to market for

new products

360°real-time customer view

across all channels

© 2012 SAP AG. All rights reserved. 18

CBA gained “sustainable competitive advantage”

Source: CBA annual reports, analyst and approved project presentations; 2012 Operational Income AU$ 20B (~€14B)

Retail Banking Services

before

50%

23

48

75%

2

1

Data Centers

Customer Impacting

Incidents/year

IT spend on

Innovation

after

610 18Products

∆ Time-to-Market -75%

Roadmap Internal Metrics

External Metrics

© 2012 SAP AG. All rights reserved. 20

TECHNOLOGY

What’s Top of Mind?Back Office

Finance and Risk

Back Office

Regulated

Transparency

Big Data

RO

I,

CA

PE

X

O

PE

X

© 2012 SAP AG. All rights reserved. 21

SAP is transforming the Office of the CFO and CRO

© 2012 SAP AG. All rights reserved. 22

Office of the CFO / Customer Examples

Accounting for Financial Instruments

Reporting & DisclosureConsolidationGeneral Ledger

Legal entity level solutions

(detailed granularity)

Group level solutions

(aggregated granularity)

Market leading in Banking

Unrivalled single and parallel processing

Faster legal compliance

Last miles of financial / legal / regulatory reporting

XBRL-based statements(e.g. new EBA FINREP)

Support disclosure process

Parallel ledger architecture

Flexible & reconciled multi- dimensional Accounting

Integration to other non-banking subledgers

Accounting Subledger on contract/position level

Multi-GAAP architecture

General Ledger Integration

© 2012 SAP AG. All rights reserved. 23

Real-time decision making for Credit Risk on HANA

Product: Risk Datamarts built on HANA

Business Challenges Reporting too slow

No mobile capabilities

No ad hoc interactive analysis up to transaction level

Limited intra-day stress testing capabilities

Slow time to development

System landscape too complex

Technical Challenges

High data volume

Too long loading time of aggregates and reports

Benefits

Meet business user benefits

Support “Principles for effective risk data aggregation and risk reporting”

Simplify system landscape

Real-time ad hoc analysis mobile enabled

Data Access >480 Mio records

Stress Testing

and risk

aggregationon demand

3 WeeksPoC implementation

© 2012 SAP AG. All rights reserved. 24

What’s Top of Mind?Bringing it all together

Finance and Risk

Back Office

Regulated

Transparency

Big Data

RO

I,

CA

PE

X

O

PE

X

Core Operations

Middle Office

Time to

market

TECHNOLOGY

Cloud

Customer

Front Office

Digital

Customer

Mobility,

Social, UX

New

Co

mp

e-

tito

rs

© 2012 SAP AG. All rights reserved. 25

SAP is seen as a leader by key Analysts

Core Banking Platform

Source: 2013 Forrester Research

Finance & Risk Platform

Source: 2013 Chartis

Digital Banking Platform

Source: 2013 Gartner

© 2012 SAP AG. All rights reserved. 26

Simplification of Consumption – Banking in the Cloud

© 2012 SAP AG. All rights reserved. 27

Key Takeaways

Adapt or be obsolete!

Banking is undergoing a massive & rapid transformation – that is

technology led & enabled – SAP has the scale and scope to partner globally

and effectively with major Financial Institutions

Think BIG, start small, scale fast!

No competitor is matching our scale of investment in innovation and

commitment in bringing new solutions to the market

Overcome the resistance to change!

Jointly with our partner ecosystem and our customers we will build better

banks for the future

1

2

3

Thank You!

Jens-Peter JensenGlobal Head of Banking Architecture & Technology Solutions

SAP AGDietmar-Hopp-Allee 16D – 69190 [email protected]