WalterMhlongo IBM BankingMobileMoney2-3Mar2011 2

IBM Banking Industry Framework

Walter MHLONGO

Client Solutions Executive

IBM East Africa

03/03/2011

[email protected]

© 2010 IBM Corporation

Building a smarter planet

2

$1,264 trillion

The value of global assets3

will quadruple by 2025 –

calling on a vibrant global

financial system to

intermediate and manage.

Half the world is unbanked.

Just over half of world’s

adult population do not use

formal financial services to

save or borrow.2

2.5 billion

Growth in world GDP1 from

2010 thru 2025 will put the

current crisis in context.

5.8% CAGR

1 - Nominal

2 - http://financialaccess.org/sites/default/files/110109%20HalfUnbanked_0.pdf

3 - Assets = deposits, equity and fixed income

Reasons to be optimistic there is an

extraordinary opportunity !

http://financialaccess.org/sites/default/files/110109 HalfUnbanked_0.pdf



3

• A global system moves more than $74T of money each day

• A financial supply chain that is massively interconnected and interdependent

• Public and private partnerships are suboptimal cross-border and within borders

• System requires 24/7 continuous flow of information

• Rapid increase in types of data entering financial system from “real economy” digitization

• A criminal element that grows more sophisticated

• In total the system intermediates the needs of billions of people in 190 countries in thousands of languages.

An adaptive system evolving organically

Policy makers

Regulators Supervisors

Financial

institutions

Compliance

Laws and

rules

Surveillance

and monitoring

Standards

Soundness

Stability

Dramatic forces changing the world’s most complex system.


Building a smarter planet: Banking & Financial Markets

44

Growth requires smart institutions to think and act in new ways

Winners will focus on three key imperatives (2011)

Focus on

the customer

Optimize data and

leverage analytics

to cultivate client-

centricity, build trust

and drive profitable

growth

Integrate risk

management

Achieve compliance

objectives while

mitigating operational

risk, fighting crime

and optimizing

financial returns

Reinvent the

business model

Drive a simplified and

streamlined agile

enterprise that

balances growth,

efficiency and

business resiliency



5

Commercial

banking

Retail

banking

Corporate

finance

Asset

management

Custody

and agency

services

Sales and

trading

Payments

Processing

Anti-Money

Laundering

Compliance

Reporting

Trading

Systems

General

Ledger

Account

Opening

Customers

Partners

Regulators

Service Providers

Inflexible, complex operations and silo’d data hinder progress in using

data as a strategic asset



6

These complexities increase cost, lengthen delivery time and

increase project risk

Hard-coded links between applications

Duplicate systems and redundant

processes

Relevant information difficult to access

real-time

Inability to track transactions through

processes

High degree of manual intervention in

processes

Technology not aligned with business

needs

…slowing deployment of solutions and decreasing agility



7

Smarter banking solutions have a common set of attributes

INTERCONNECTED INTELLIGENT

Financial products

are decomposed

and managed at

the atomic level,

allowing the

participants to

measure, control,

sense and respond

quickly and

precisely based on

a “single source of

truth.”

A smart bank is

built on systems

that advance

processing to

better automate

transactions with

counterparties,

partners and

suppliers to enable

innovation across

the value chain.

A smart bank

enables the rapid,

intelligent analysis

of a vast mix of

structured and

unstructured data

to improve insight,

enable informed

judgment and fight

abuse.

INSTRUMENTED

+ =+

SMARTER BANKING

A smart bank

anticipates client

needs and delivers

innovative products

more quickly and

consistently than

the competition. It

can respond

nimbly to changes

in market

conditions.



8

A comprehensive framework that delivers accelerates solution deployment

The framework provides a banking-

specific software platform with…

• Banking extensions and pre-built solution

accelerators to speed deployment

• Best practices and business- specific

usage patterns to lower risk

• Support for adoption of open and industry

standards

• A choice of business applications from IBM

business partners

• An approach to align technology with

business needs

The framework gives you speed, flexibility

and choice in deploying solutions while

reducing cost and risk!


Core Banking

Transformation

Customer

Care and

Insight

Payments

and

Securities

Integrated

Risk Management



99

Framework projects in four domains provide the capabilities to

address banking pain points

The core banking transformation domain

allows you to modernize and renovate the

legacy applications that support core banking

functions while aligning with the changing

needs of the business

The customer care and insight domain helps

you build a foundation for creating a single

view of the customer and enabling more

effective and efficient sales and service

The integrated risk management domain

supports taking a holistic approach to

managing financial risk, financial crimes,

operational and IT risk, and compliance

The payments and securities domain helps

you progressively transform your payments

operations to become more flexible and

efficient


Core Banking

Transformation

Customer

Care and

Insight

Payments

and

Securities

Integrated

Risk Management



10

The framework can re-use software assets across projects to increase ROI

Entity Analytics SoftwareEnables Identity Management…

Who Is Who?

Who Knows Who?

Who Does What?

Example

Better Risk Management

• Identify potential conflicts

of interest

• Prevent financial crimes

activity by detecting

fraudulent identities

Improved Customer Service

• Discover non-obvious

relationships in real-time

• Get a full view of a

customer’s activities and

relationships with the bank



1111

Speed solution deployment with software extensions and accelerators

Information FrameWork (IFW) & Banking Data

Warehouse (BDW) Process and Data ModelsIB

M F

ou

nd

ati

on

al

COGNOS Banking

Performance Blueprints

SOA Banking Scenarios

Cu

sto

me

r C

are

& I

ns

igh

t

COGNOS Banking Performance

Blueprints

Customer

Identification Solution

Common Business

Language Services

Accelerator

Banking Data Integration

Accelerators

WebSphere Multichannel

Bank Transformation

Toolkit

Account Opening Scenario

Paym

en

ts &

Secu

riti

es

WTX Industry

Packs

Financial

Transaction

Manager

pureXMLTM

Payments

Bundles

WebSphere

BI for FN

Corporate

Payments Scenario

WebSphere

Modeler with

IFW

Rational

Software

Architect with

IFW

WebSphere Banking Content

Pack

COGNOS Banking Risk Performance

– Credit Risk

Entity Analytics and Global Name

Recognition

Finance and Integrated Risk

Management (FIRM)

COGNOS Risk Adjusted Profitability

Blueprint

Inte

gra

ted

Ris

k M

an

ag

em

en

t

IBM Service Management

for IRM

Co

re B

an

kin

g T

ran

sfo

rmati

on

Solution Templates

Banking Vocabulary

Design Rules

Banking Message Model

Common Shared Services

Banking Extensions for MDM Server

Services Component

Building Blocks

Development Tools / Methodology

http://publib.boulder.ibm.com/infocenter/soasdbox/v1r0m0/topic/com.ibm.soln.SOASandbox.nav.fw.doc/home_pages/welcomeSandbox.html





12

The framework provides the software foundation for end-to-end IBM banking solutions

Banking solutions address the diverse

business and IT needs of our clients

through integrated IBM offerings

Applications are provided by IBM best-in-

class independent software vendor (ISV)

business partners

Software that supports banking solutions is

delivered by the IBM Banking Industry

Framework

Services help clients maximize their

investments, decrease costs, and realize

value more quickly

Technology, including hardware and

storage, supports flexible and scalable

solutions in a dynamic infrastructure



13

Supply Networks

Marketing and

Customer

Management

IT Systems

and Operations

Merchandising

and Product

Management

Business and

Finance

Administration

Core Banking

Transformation

Customer

Care and

Insight

Payments

and

Securities

IBMs Investment in the future through acquisitions continues to

extend our Industry Value through the Banking Industry Framework

Core Banking

Transformation

Customer Care

and Insight

Payments and

Securities

Integrated

Risk Management



Major Reasons for IBM SWG Acquisitions

Strategic

– Extend portfolio into new or related markets

– Targeting of high value, high growth segments

– Market Consolidation

Technology

– Provide capabilities we do not have & compliment existing portfolio

Skills

– Infusion of fresh innovative talent

– Synthesis of new talent with IBM talent makes for a better company

Industry Relevance

– Line of business value proposition industry specific assets

– Fills whitespace in IBM and partner portfolio



Providing integrated marketing optimization

solutions through web analytics

Complete Marketing Optimization Solution

Leading web analytics used to accurately measure

marketing effectiveness

Suite of capabilities to optimize marketing ROI

Business Highlights

230 employees with headquarters in San Mateo, CA

Over 565 direct customers

SaaS business hosted on data centers in the US and

UK

Top brands across various industries, transacting

more than $20 billion/year

Decade of expertise and innovation

http://www.myfico.com/?lid=logo&lpos=top_image



Coremetrics Line of BusinessDelivering Value to IBM through Continuous Marketing Optimization



17

Meeting marketing challenges with a rich, interactive

marketing suite Unica

Financial



18

Start simplifying and realizing benefits with a framework project

… select from 20 project areas across 4 framework domains

Integrated Risk

Management

Customer

Care and

Insight

Integration

Optimization

Analytics

Collaboration

Security

Resiliency

Core Banking

Transformation

Payments

and

Securities

Architecture Transformation

Process Agility

Application Modernization

Regulatory Compliance

Corporate Services

SWIFTNet Modernization

Retail Payments

Payments Process Efficiency

Digital Payments Conversion

Financial Risk

Financial Crimes

Operational and IT Risk

Governance and Compliance

Insight

Information

Multi-Channel Transformation

Sales

Service

Compliance

Marketing


©2010 IBM Corporation1919

Core Banking TransformationTransforming back office legacy systems

• As banks seek to grow revenue and improve operational efficiency through product innovation, globalization, and M&A activities, legacy back office systems often become inhibitors

• Mismatch between the horizontal business processes and the vertical application silos leads to ever-increasing IT integration complexity

• Heavily customized and inflexible legacy systems make it hard and expensive to support regulatory changes



20

Core Banking Transformation

Framework Projects

Dynamic Relationship Pricing

Bundled Offerings

Product Agility

Flexible Core Business Process

Performance Monitoring

Replace outdated legacy applications

with best-of-the-breed application components

Replace outdated legacy applications

with packaged applications

Develop next generation applications

Renovate existing legacy applications

Single View of Customer

Integration Platform

Infrastructure Scalability

Model Driven Development

Architecture

Transformation

Application

Modernization

Process

Agility

Integration

Optimization

Analytics

Collaboration

Security

Resiliency

Core Banking

Transformation

Customer

Care and

Insight

Payments

and

Securities

Integrated

Risk Management



21

Determine how existing

applications can be

service-enabled to support

SOA-based processes

Develop as-is and to-be

models of new core

processes and services

components

Define line of

business priorities

Component

Business

Model

IFW Process and

Data ModelsSOA Solution Model

The framework approach supports alignment of business needs with IT

transformation efforts

Develop

Renovate

Integrate

HybridLegacy

Analysis and

Discovery

Data Models Process Models



22

Core Banking Transformation Methodology

Transformation Workbench

Component Business Model.

This step determines WHAT to do

IFW Process & Data Models

This step determines HOW to do

SOA Solution Model

This step is the WAY to implement

Runtime

This step is for WHEN

it is operational

Legacy Analysis &

Discovery

This step provides for

HOW to transform the

legacy



2323

A major Korean bank enables dynamic product bundling for more

targeted customer offers

Smarter Business Outcomes

• Consolidated customer data

• More agile product management with dynamic product bundling

• Ability to price based on relationships

• Greater business agility & flexibility

Client Challenges

• This bank needed to provide more customer-centric and innovative product offerings to retain existing customers and attract new customers

Solution

• Developed business service components to support dynamic product bundling & relationship pricing and integrated components with client’s legacy applications

Major Korean Bank



2424

Four Pillars of Core Banking Transformation (CBT)

1. Architecture

Architectural work products that describe the “design rules” that govern solution creation using the framework

2. Integration Platform

Software foundation on which solutions are deployed

3. Methodology & Tooling

Integrated Tooling that links business & IT

4. Solution Accelerators

Software extensions and solution templates that make it easier to create solutions

Industry Models

Best practices

Methodology&

Tooling

ArchitectureIntegrationPlatform

SolutionAccelerators

CBT



2525

Architecture of the Next Generation Core Banking Systems

Methodology&

Tooling



CBT

Party Product Contract

Loan

Deposit

Cards

…

General

Ledger

Fees &

Ch

arg

es

Inte

rest R

ate

s

Analytics &

Data WH

Integration Platform(Business Process Mgmt,

Business Rules Mgmt,

Service Mediation.

Complex Event Processing)

Master Data

Core Transactional

Components

Common Services

Business

Service

Components

It is more than transactions…

It is also about:

Master Data Mgmt

Business Process Mgmt

Business Rules Mgmt

Service Mediation,

Composition, &

Choreography

Common Services

Complex Event Processing

Analytics

…

This Leads to Several

Business Benefits:Product Agility

Product Innovations

Product Performance Mgmt

Dynamic Relationship

Pricing

Maintainability

Performance

Flexibility



2626

Banking Integration Platform

Methodology&

Tooling



CBT

• Technology foundation to build next generation banking systems

• Start simple and grow driven by business needs

- Connectivity

- Mediation

- Logging, Security, Audit

- Registry

- Process choreography

- Business rule execution

- Complex event processing

- ETL

- Partner Integration

- Event based routing

• Pre-populated with Banking specific message models

• Optimized on IBM’s Dynamic Infrastructure



2727

Banking Transformation Workbench

Methodology&

Tooling



CBT

Collaborative Solution Development Platform (RTC)

Banking Asset

Repository

(RAM)

Requirements

Repository

Collaborative

Requirements Management

(RRC)

Banking Vocabulary

Implementation &

Deployment

Solution

Modeling

Business

Modeling

Process

modeling

Legacy Analysis

& Discovery

Methodology

• Collaborative banking solution development platform

• Integrates core transformation methodology and assets with IBM development and modeling tools

• Used to implement framework-based solutions in conjunction with a core transformation project

Integrated, end-to-end tooling to create, manage, and adapt banking solutions.

Operationalizes IFW models

CBM WBM RSA RAA WID



2828

Solution templates organize framework assets to accelerate application to a specific

business problem

Methodology&

Tooling



CBT

Business Requirements

Platform Independent

Solution Design

Reference Implementation

Solution Templates

Account

Management(future)

Loan

Life Cycle(future)

Trade

Finance(future)

Product

Factory

Product

Bundling

Account

Opening

• Addresses a specific business problem

• Refined through customer engagements

• An accelerator for core transformation projects

• Delivered, serviced and supported through services engagements



2929

Core Banking Transformation

Framework Extensions and Accelerators

Reusable application

components (e.g., interest rates,

price optimization) plus

composable building blocks

(e.g., arrangement, campaign)

Proven architectural design

work products for core

banking projects

Services Components Building Blocks

Solution Templates

Design Rules

A collaborative integrated

solution development platform

for core banking that integrates

transformation methods, tools,

and assetsBanking Transformation

Workbench

Specific solution accelerators

(e.g., product bundling, loan

origination); includes

architecture, design, and a

reference implementation

A common vocabulary

using Business Glossary

and pre-populated with

IFW terms

Common foundational IT

services such auditing,

logging, and security to

speed solution

development and

deployment

Banking Vocabulary

Banking Data/Message/Service

Model

Common Shared Services

Extensions for MDM

Server that include core

banking specific

concepts such as loan,

credit card, and depositsBanking Extensions for MDM Server

A canonical

data/message/service

model based on IFW to

simplify integration


Payments and SecuritiesBanks need flexible and efficient operations

• Commoditization of payments services resulting in shrinking returns

• Need to specialize and innovate to drive revenue growth

• Market harmonization across the global payments infrastructure drives need for integration with third parties

• Increased merger, acquisition and disposal activity has resulted in redundant operations

• Sophisticated fraud and anti-money laundering activity drives need for transparency and security



31

Payments and Securities Project areas

SEPA Infrastructure

SEPA Mandates Management

SWIFT / SEPA Process Integration

Corporate Financial Supply Chain Optimization

Corporate Payments Hub

Global Liquidity Management

MERVA Modernization

“Single Window” for SWIFT Processing

Standards Management

IBM Payments Director Implementation

Imaged Check Processing

Duplication Detection

Payments Process Renovation

Least Cost Routing

Payments Processing Hub

Faster Mass / High Value Payments

Account Validation

Retail Processing

Payments Card Industry Compliance

International ACH and Consumer Remittances

SWIFTNet

Modernization

Retail

Payments

Corporate

Services

Regulatory

Compliance

Digital

Payments

Conversion

SWIFTNet

Modernization

Payments

Process

Efficiency

Retail

Payments

Integration

Optimization

Analytics

Collaboration

Security

Resiliency

Core Banking

Transformation

Customer

Care and

Insight

Payments

and

Securities

Integrated

Risk Management



32

Payments and securities – Framework projects

Payments and securities

Retail Payments Digital Payments Conversion

• Retail Processing

• Payments Card Industry

Compliance

• International ACH and

Consumer Remittances

• Corporate Financial Supply Chain

Optimization

• Corporate Payments Hub

• Global Liquidity Management

Corporate Services

• IBM Payments Director

Implementation

• Imaged Check Processing

• Duplication Detection

SWIFTNet Modernization Payments Process EfficiencyRegulatory Compliance

• MERVA Modernization

• “Single Window” for SWIFT

Processing

• SWIFT / SEPA Integration

• Standards Management

• Regulatory Infrastructure

• Regulatory Mandates

Management

• SWIFT / RegulatoryProcess

Integration

• Payments Process Renovation

• Least Cost Routing

• Payments Processing Faster Mass /

High Value Payments

• Account Validation



3333

Wholesale Payments Hub Reference Architecture with SOA

Bulk Net

Settlement

RTGS or

Hi-Val Net

Settlement

Networks

PaymentsODS & Log

UserInterfaces

Industry Transformation Libraries

Systems ManagementSecurity & Monitoring Infrasctructure

External Parties

Paym

en

ts O

rigin

atio

n

Partner Gateway

Rules Engines

Payment Process Flows

Human Workflow

• Payment Entry

• Payment Repair

• Investigation

• Disputes

•Etc…

Sophisticated Payment Processing Flows

• Liquidity management

• Risk & Fraud

• Exception Handling

• Accounting

• Fee calculations

• DDA Interface

•Etc…

Reporting & Analytics

PaymentsDataWarehouse

Interfaces for Discrete

Payment Services(e.g. OFAC, etc.)



34

Wholesale Payments ESB Reference Architecture (SOA)

Bulk Net

Settlement

RTGS or

Hi-Val Net

Settlement

Networks

PaymentsODS & Log

UserInterfaces

Industry Transformation Libraries

Systems ManagementSecurity & Monitoring Infrastructure

Paym

en

ts O

rigin

atio

n

Rules Engines

Payment Process Flows

Human Workflow

• Payment Entry

• Payment Repair

• Investigation

• Disputes

•Etc…

Sophisticated Payment Processing Flows

• Liquidity management

• Risk & Fraud

• Exception Handling

• Accounting

• Fee calculations

• DDA Interface

•Etc…

Reporting & Analytics

PaymentsDataWarehouse

Interfaces for Discrete

Payment Services(e.g. OFAC, etc.)

WPS, WID, WSRR

WBM WTX &

Libraries

STP Toolkit

. ILOG

DB2

CognosDB2

Partners

DataPower

PartnersPartners

DataPower

Tivoli

WMB WESB (included in WPS)



35

Payments and Securities


WTX Industry Packs

Assets

pureXMLTM

Payments Bundles

IBM Payments Best Practices

Payments Integration Use Cases

Reference Payments Services Interfaces

Reference Payments Process Models

Assets

ISO20022-Based Internal Canonical

Format

Assets for WebSphere Message Broker

Timer Services

State Engine

IFW-Based Data Model

Payments Objects User Interface

Flow Coordinator

WebSphere Business Integration for Financial

Networks

WebSphere Banking Content Pack

Corporate Payments Scenario

Provides a single window

to SWIFTNet services

and reliable processing

of high volume

messages

Enables data

transformation to

industry standards (e.g.,

NACHA, SWIFT, FIX)

Provides efficient XML

data management to

industry standards (e.g.,

SWIFT, FIX, FpML,

TWIST )

SOA-based templates

for faster development

of payments business

services

Assets for building an

enterprise payments

service bus that provides

transaction-level visibility

to payments

Best practice business

and technical patterns for

implementing a corporate

payments solution

IFW / BDW Process & Data Models

Common banking process

and data models speed

requirements definition

and implementation

…and more




36

Integrated Risk Management

Holistically manage risk across the enterprise

Banks need to:

Understand market and credit risk

exposure across multiple silos

Secure all transactions and forms of

interaction

Proactively prevent increasingly

sophisticated internal and external

prohibited activities

Effectively manage detected events

Proactively manage internal and external

potential risks

Understand and manage increasingly

complex compliance requirements at

optimal cost



37

Industry Models

ETL & Quality

Discovery

IBM’s Strategic Direction for Risk Solutions

…

External

Operational

Information Sources

1a Risk Data Mart

Feeds & Data Models

Counterparty Information

Master Data…

Risk related information

2 Analytics & Optimization

• Diverse risk calculators

• Multiple fraud detection engines

• …

Analytics Integration

3a

Optimized decisions embedded

in business processes

3b

IBM strengths

Risk Analysis and Reporting

• Drill down capability

Integrated

reports &

Dashboards

Ag

gre

gatio

n

Optimized end-to-end solution

Customer, ISV or partner Strategic direction

4

1b

0

1. Trusted data: Completeness & accuracy of data for risk aggregation and calculation– Single information source for multiple stake holders

– Best of breed partners for the highly diverse types of risk calculators

1. Generate value from the result of an analysis by feeding them to

a. Decision makers for planning – supported by BI tools like Cognos

b. Business processes for optimized automated and workflow oriented transactional decisions



3838

Integrated Risk Management

Framework Projects

Compliance Information Lifecycle Management

Corporate Governance and Internal Control

Sales and Market Conduct Compliance

Regulatory Compliance

Prudential Compliance

Collaboration for Legal and Compliance

Comprehensive Security Control, Enforcement,

Management

Trusted Identity Management

Configuration/Incident/Problem/Change/Release

Management

Continuous, comprehensive fault monitoring

Data Protection

Application Integrity and Security

Operational Risk Platform

Suspicious activity reporting

Integrated Fraud and Financial Crimes platform

Transaction Monitoring & Detection

Integrated Case and Investigation Management

Get Your Risk Data in Order

Risk Insight and Control

Real Time Risk Insight and Control

Risk Optimization

Risk Modeling and Scenario Analysis

Payments

and

Securities

Governance

and

Compliance

Operational

and IT risk

Financial

Risk

Financial

Crimes

Core Banking

Transformation

Customer

Care and

Insight

Integrated

Risk Management

Integration

Optimization

Analytics

Collaboration

Security

Resiliency



3939

Integrated Risk Management Project Example

Lack of trusted and integrated risk information makes it difficult to understand actual risk

exposures facing the bank and also results in inaccurate reporting of exposures to regulatory

bodies and executive management

More timely and better decision-making

Improved accessibility to risk information across the enterprise

Reduced costs

Consolidate data to create a trusted and accessible source of information

Apply analytics and business intelligence to generate enterprise risk reporting

Apply portal and collaboration technologies to give end users easy access to information

Client issue

Benefits

Solution

Framework

project partners

Data warehousing and master data management

Common banking data models

Enterprise dashboards, scorecards, and reporting templates

Alerts based on business events

Access via web, email, mobile

Enhanced visualization capabilities from IBM Research

Framework

technology

capabilities

Financial Risk – Risk Insight and Control Project



4040

One of the world’s top global banks manages risk across the enterprise

Client Challenges

• A tighter focus on retail credit risk management at the corporate level required new centralized risk capabilities

Solution

• Developed a scalable, comprehensive risk analytics, intelligence, and reporting platform - and a streamlined process to ensure accurate data collection and management


• Centralized and efficient risk analysis, intelligence, and reporting

• Integration with Basel II, traditional, and emerging risk metrics

• Broad, deep, and reliable view of risk from many perspectives

• Risk managed at multiple levels -- from the Board of Directors to line of business

Top Global Bank



4141

Provides industry-leading

credit risk insight with

specialized templates to

create executive

dashboards and reports

COGNOS Banking Risk Performance – Credit

Risk

COGNOS Risk Adjusted Profitability Blueprint

Provides real time identity

and relationship

recognition and resolutionEntity Analytics and

Global Name Recognition

Blueprint for integrating

risk information with

enterprise-wide,

distributed profitability

management

COGNOS Finance & Integrated Risk

Management (FIRM)

Consolidates credit /

underwriting, market,

and operational risk

information into an

enterprise-wide view


Risk-specific banking

process and data

models speed

requirements definition

and implementation

Access and identity

management, change

management, and fault

monitoring capabilities

simplify audits for IT

governance, risk and

compliance regulations

IBM Service Management for IRM

Integrated Risk Management - Extensions and Accelerators



4242

Customer Care and Insight Optimizing the customer experience

Consumers…

Demand innovative and more customized

products and services

Want a consistently high quality customer

experience across all touch points

Banks…

Must be able to identify their most profitable

customer relationships

Need an enterprise view of customer

relationships to optimize the customer

experience

Need to balance managing cost, risk,

security and compliance with meeting

customer needs



4343

Customer Care and Insight

Framework Projects

Customer Segmentation and Profitability

Campaign Management

Marketing Communication

Common Channel IT Architecture

Channel Renovation (including Internet,

Mobile, Teller and Branch, Contact

Center, ATM and Kiosk)

Customer Analytics

Business Insight

Search & Discovery Analytics

Threat & Fraud Intelligence

Cross Sell / Up Sell

Lending Optimization

Dynamic Product Bundling

Customer On-boarding (aka Account

Opening)

Case Management

Contact Center Optimization

Disputes

Event-Based Decisions

Customer Data Integration

Common Data Warehousing and Models

Enable Information as a Service

Customer Preferences

Know Your Customer

Payments

and

Securities

Information

Insight

Multi-Channel

Transformation

Sales

Service

Compliance

Marketing

Integration

Optimization

Analytics

Collaboration

Security

Resiliency

Core Banking

Transformation

Customer

Care and

Insight

Integrated

Risk Management



4444

Customer Care and Insight Project Example

Customer Information Optimization – Customer Data Integration Project

Customer data is duplicated and spread across multiple silo’d databases, leading

to an inconsistent experience for customers dealing with the bank

Projects can be implemented in as little as 6 months

Improved customer satisfaction and retention, reduced maintenance costs

Client issue

Benefits

Banking data warehouse models

Data warehousing

Master data management tools

Reporting tools

Process choreography

Implementation expertise

Framework

capabilities

Build an integrated data warehouse to create a consolidated customer profile

and enable customer-centric processingSolution



4545

A top ten U.S. bank enables customer-centric processing with

integrated data


• Created a consolidated customer profile and enabled customer-centric processing

• Ability to manage “new” ATM customer preference data

• Reduced maintenance costs while preserving existing application interfaces

Client Challenges

• The bank needed to provide a more consistent customer experience based on trusted and actionable enterprise customer data

Solution

• Assisted the bank in implementing a customer data integration initiative, providing the bank with a roadmap to sunset its legacy customer file systems

Top 10 U.S. Bank



4646

Customer Care and Insight


Banking Performance Blueprints

Common Business Language

Services Accelerator

Detailed design templates

for accelerating data

warehouse development

Proven pattern and

capabilities to

accelerate the

creation of integrated

retail delivery

applications Process and integration

models provide a higher

order composite services in

relation to Master Data

Management Server Account Opening Scenario

Best practice

business and

technical patterns for

an account opening

SOA-based solution

Banking Data Integration

AcceleratorsWebSphere

Multichannel Bank

Transformation

Toolkit

Pre-defined data, process

and policy models for

enterprise planning, and

financial management and

control…and more


Customer-oriented banking

process and data models

speed requirements

definition and

implementation

WebSphere Banking

Content Pack

Provides services

references templates for

building dynamic

customer care

processes



Benefits of a framework approach

• Speed…of implementation with repeatable architectural patterns and accelerators

• Flexibility…to progressively transform to a simplified architecture one project at a time

• Choice…of how to get started and who to partner with for business capabilities

• Cost Reduction…through re-use of services and assets and through faster implementation

• Alignment…of business and IT priorities for more effective results from solution implementation

Business Processes

BusinessArchitecture

Technology Architecture & Infrastructure



4848

Accelerating Solutions for

Smarter Banks

Thank You

WalterMhlongo IBM BankingMobileMoney2-3Mar2011 2

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