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Oracle in the Financial Service Industry
 

Oracle in the Financial Service Industry

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    Oracle in the Financial Service Industry Oracle in the Financial Service Industry Presentation Transcript

    • FSI Industry SolutionsChristian Hartono TanuSales ConsultantOracle Fusion Middleware 1
    • Agenda Oracle in the FSI Industry Multi-Channel Banking Enabling Process Centric Financial Institution Payment Services Hub Real-Time Banking 2
    • INVESTMENT IN FINANCIAL SERVICES 3
    • ORACLE BUSINESS & CONSUMER BANKING COVERAGEALL USERS Customers Agents Partners White Label StaffTOUCH POINTS Internet Mobile/PDA KIOSK Phone Branch Surface Mail ATMBusiness Lending Retail Corporate Financing Broking Funds Treasury Asset Mgmt Distribution Marketing Sales Origination ServiceDISTRIBUTION ProcessingPLATFORM Infra Services Dashboard Alerts Workflow SLA Escalation Offers PersonalizationCORPORTE ADMINISTRATION TRANSACTION PROCESSING Deposits Wealth Management Lending Distribution Processing Finance Letters of Credit & Bank Term Deposits Profiling & Planning Portfolio Definition Loans Decisioning engine Foreign Exchange Guarantees Risk Target Savings Plan Scoring Collections Asset Allocation Corporate Actions Money Markets Bills & Collections Certificate of Deposits Mortgages Leasing Compliance Simulations Mutual Funds Swaps & FRAs Funds Transfer Safe Deposit Box Revolving Loans Overdrafts HR Performance Order/ TXN Capture Securities Cash & Liquidity Management Savings/ TXN Accounts Analysis Loan Syndications & Project Loans Procurement Standing Orders Portfolio Administration & Valuation Impaired Assets Management Features & Options Nostro ReconciliationSHARED Customer Master Entitlements Charges Pricing LimitsSERVICES Collateral Management Expense Processing Reports Payments Alerts & NotificationsSECURITY Authentication Multi Factor Authentication One Time Password Access Control Single Sign On Identity FederationSERVICES 4
    • ORACLE BUSINESS & CONSUMER BANKING COVERAGEALL USERS Customers Agents Partners White Label StaffTOUCH POINTS Internet Mobile/PDA KIOSK Phone Branch Surface Mail ATM Multi-Channel BankingBusiness Lending Retail Corporate Financing Broking Funds Treasury Asset Mgmt Distribution Marketing Sales Origination ServiceDISTRIBUTION Processing Process Centric Real Time BankingPLATFORM Infra Services Dashboard Alerts Workflow SLA Escalation Offers PersonalizationCORPORTE ADMINISTRATION TRANSACTION PROCESSING Deposits Wealth Management Lending Distribution Processing Finance Letters of Credit & Bank Term Deposits Profiling & Planning Portfolio Definition Loans Decisioning engine Foreign Exchange Guarantees Risk Target Savings Plan Scoring Collections Asset Allocation Corporate Actions Money Markets Bills & Collections Certificate of Deposits Mortgages Leasing Compliance Simulations Mutual Funds Swaps & FRAs Funds Transfer Safe Deposit Box Revolving Loans Overdrafts HR Performance Order/ TXN Capture Securities Cash & Liquidity Management Savings/ TXN Accounts Analysis Loan Syndications & Project Loans Procurement Standing Orders Portfolio Administration & Valuation Impaired Assets Management Features & Options Nostro ReconciliationSHARED Customer Master Entitlements Charges Pricing LimitsSERVICES Collateral Management Expense Processing Reports Payment Services Hub Payments Alerts & NotificationsSECURITY Authentication Multi Factor Authentication One Time Password Access Control Single Sign On Identity FederationSERVICES 5
    • Agenda Oracle in the FSI Industry Multi-Channel Banking Enabling Process Centric Financial Institution Payment Services Hub Real-Time Banking 6
    • CUSTOMER EXPERIENCE RATING AND VALUE FOR FSIFinancial services companies are in the middle of the pack, but the Improving the customer experience drives loyalty and boosts revenuegap between leaders and laggards in banking has widened. 7
    • CUSTOMER EXPERIENCE – HOW CUSTOMER “WANT” TO INTERACT TODAY? Research Insight Trade Support Manage Buy Online View Portfolio Web Comparison Site Chat Contact Research New Center Opportunities Place Order Branch Visit Branch Office Local Branch / Office Web Browse Products Kiosk & Services Initiate a Trade Mobile Google Product Info Device Search Email eMail Confirm w/Rec Facebook Share Experience on Social Read Reviews Discuss Trade Fan Club Twitter With Community© 2011 Oracle Corporation – Proprietary and Confidential 9 9
    • MULTI CHANNEL DELIVERYCURRENT CHALLENGES Silo channels and products impede: Customer • Consistent customer experience • Single view of customer information • Flexibility to meet new customer needs Branch Unsecure Corporate Individual Mobile Website Internet Internet Banking  Reduced customer retention Banking Banking  Decreased wallet share Hardwired  Reduced efficiency ESB Backend Banking Systems 10
    • Interact With Customers Seamlessly Across ChannelsVision for the Bank Customer Branch/ Mobile Banking Unsecure Corp Internet Banking Internet Banking Relationship Website Single View of Financial Consistent customer Institution experience Multi-channel delivery platformUnified Platform for Consistent Customer Experience Across Channels Common customer, product information Single View Of Customer Increased opportunities for revenue growth Backend Banking Systems 11
    • MULTI CHANNEL CUSTOMER EXPERIENCE REFERENCE MODEL Webcenter Suite Business Process Management Enterprise Rules Service Bus Data Integrator , Golden Gate 12 12
    • NAB Launches Online Direct Banking Sets a New Benchmark for Customer Self-ServiceCOMPANY OVERVIEW• Leading Australian bank with total assets of $657B FY 08 RESULTS• Structured around regional banking and wealth management operations • Grew Bank’s Deposit base significantly• International capital markets • Rolled out new Direct Banking application• Institutional banking business within a year • Branch-free banking service that customersCHALLENGES access via the Internet and an Australia-• Legacy technology• Lack of flexibility to support the new business model based call centre• Inability to launch new products in weeks • Focused on savings products• Higher cost of operations • Leading player in the ‘Self-Service Banking’ space in AustraliaAPPROACH• Offer direct banking on open, scalable platform ACCOLADES• Phase II – Replace legacy application with Oracle Applications and Technology IT Wire Aug 06, 2009 NAB pioneers ‘five minute’ online bankSOLUTIONS account• Oracle Fusion Middleware Copyright © 2011, Oracle. All rights reserved. Oracle & [customer] Confidential
    • Business Requirements Branchless Direct Banking Business Requirements Custom Build Member Registration, Account opening, Profile Functionality Maintenance, Goal Tracking •Public/Secure ContentBusiness Case: •Content Lifecycle (Publish, Workflow, Versioning, Content Management Strategic transformation program including creating a New Online Security) Banking Brand in Australia •Search Create a compelling market differentiator Marketing Integrate with CRM On Demand Internet Banking and Complete online lifecycle - enabling prospecting to fulfillment to Web Apply Integrate with Flexcube, Card management, others customer servicing •Calculators, Product Comparison Tools, Budgeting Create a unique customer experience which is difficult to replicate Web Tools Tools •Money Market Tools Grow in tandem with current trends on emerging social networks Web Community and online communities (Facebook, Twitter, YouTube etc) (Collaboration) •Forums Setup & Management (Including Moderators) Assist customers to take informed financial investment decision •Blogging on Podcast, Video, Presentations Equipped with unmatched security to prevent online fraud or •RSS (Really Simple Syndication) hacking Security and User •Authentication & Provisioning with Single Sign On Establish itself as the PREFERRED Online Bank in ANZ region Management •Role based Authorization •Multi Factor Authentication •Branding / Personalization General System Requirement •Localization (Multilingual, Multi-Brand, Multi-Country) •Google Analytics Copyright © 2011, Oracle. All rights reserved. Oracle & [customer] Confidential
    • Solution Overview Oracle FLEXCUBE Core / Internet Banking Platform Identity / Access Management Oracle IdM Suite Veda / Edentity Online KYC ServicesBank Site Social Media Features WebCenter (Blogs/Forums) Services Facebook/Twitter/ iGoogle/YouTube Leading Social Media Sites CRM CRM on Demand Web Analytics Site Search Content Management Oracle Content Management Copyright © 2011, Oracle. All rights reserved. Oracle & [customer] Confidential
    • Interactive Banking 1 A landing page is optimised for a new visitor 3 Potential information of is suggested to the visitor the Information of value value is recommended to visitor The site promotes access to information channels to aid the new visitor based on ‘discovery of intent’ new visitor based on ‘discovery of visitor intent’ 2 4 Interaction channel Interaction or collaboration suggestions are promoted channel suggestions are promoted Copyright © 2011, Oracle. All rights reserved.This information is considered proprietary and may not be copied, distributed, modified or re-used for any purpose without the express permission of Oracle Oracle & [customer] Confidential
    • Transparency Copyright © 2011, Oracle. All rights reserved. Oracle & [customer] Confidential
    • Agenda Oracle in the FSI Industry Multi-Channel Banking Enabling Process Centric Financial Institution Payment Services Hub Real-Time Banking Copyright © 2011, Oracle. All rights reserved. Oracle & [customer] Confidential
    • FSI is a Process-Driven Industry Desired Customer-Centric Process Characteristics: • Shared across channels • Integrated across functional silos • Personalized for individual customerBranch ATM/Kiosk Call Center Internet Mobile • Agile, adaptable to business change • Monitored to eliminate bottlenecks Common Processes Orchestration • Analyzed for performance measurement Hardwired Integration, Manual Processes • Enables optimal end-to-end execution Top Priority Processes In Banking • Loan Origination Deposits Credit & Investments Customer • Simplify Account Lending Master Opening/Customer On boarding • Trade Finance • Service Management • Policy Underwriting • Claims Processing Copyright © 2011, Oracle. All rights reserved. Oracle & [customer] Confidential
    • What does OFM Offer Fill the Gaps:- Innovate and Wrap your composite systems• “Pre-defined” Process Accelerators Best Practices based Business Process Model• Document Capture & Imaging • All types of Document formats • Managing Entire Lifecycle of All Documents • Reduce Manual Data Entry using OCR / OFR Systems People• Powerful Workflow for Processing • Consistent processes, strong quality control • Handling Exceptions & Escalations • Improve cycle times whilst managing SLAs • Monitoring Real time• Business Rules Engine Decisions Documents • Separate the Business Logic from Applications Events • Rapid Execution of ever changing business policies & procedures• Multi-Channel capability • Ability to Apply and Enquire from any channels • Transparency, Consistency , Single view across multiple systems Copyright © 2011, Oracle. All rights reserved. Oracle & [customer] Confidential
    • Accelerators to Fast-Track process design Reference models with relevant meta-data for process automation Automated tasks  Service integration to IT applications  Adapters and Connectors to end-points Business rules Hot deployable changes Rules driven routing Content Integration  Document Processing Human Task  Scanned Images  Worklist of user or group  Calendar, delegation, escalation Track processes  Sharing notes & documents  Gather process KPIs Process Intelligence  Single interface between people and processes  BAM dashboards Ties tasks, alerts, discussions, documents, communities, intelligence in context of  Alerts process Initiation Compliance Credit Scoring Fulfillment Copyright © 2011, Oracle. All rights reserved. Oracle & [customer] Confidential
    • Example: Loan Origination Process AcceleratorBusiness Process Overview Identity & Application Document Credit Risk Assessment & Account Creation & Background Pre-Closing Capture Collection Verification Underwriting Disbursement (KYC)Best practice BPM-driven solution to enable end-to-end automation of the Loan Origination Process for a financialinstitution (Retail Banking) – from the creation of the financial application to the disbursement of the loan amountStrategic Goals Process Advantages• Increase new business • Significantly cut down loan approval time• Reduce operational costs • Provide agility, visibility and audit capabilities• Comply with regulations and reduce risk • Reduce use of paper based documents• Enhance customer satisfaction • Manage business process as shared asset across LOB and• Be more competitive in the Marketplace channels• Build Multi-channel delivery capabilities • Provide a consistent, personalized customer experience• Comply with Know Your Customer (KYC) Copyright © 2011, Oracle. All rights reserved. Oracle & [customer] Confidential
    • Loan Origination Process AcceleratorExtensible Business Process Monitor operational performance via real time dashboards Process Performance Individual Performance SLA adherence Optimization Reporting Audit Trail • Best practice, process driven solution • Multi-channel enabled • Centralized document management • Integration with internal systems & external services • Business Rule driven process flow Sales Channels Loan Processing Compliance Underwriting Contracts & Legal Loan Funding Product Customer Content Risk Contracts Loans Service Service Copyright © 2011, Oracle. All rights reserved. Oracle & [customer] Confidential
    • Taishin Bank Taiwan Save US$1.58 Million a Year by Automating Image Process Management Integrated Imaging and Business Process Management (IPMS)COMPANY OVERVIEW “Slashing costs and boosting productivity were our two primary goals. By using Oracle Fusion Middleware products to integrate six image process management systems (Branch• Current deployed = 105 branches across Taiwan, 3.6 Million Customer Teller, CIF, Daily settlement, eLoans, Trade Finance for NTD Trade Finance for Foreign with 11000 Transaction/day. Currencies) , we have reduced paper use, cut printing and storage costs, and restructured our workflows for greater efficiency.” – Josephine Yang, CIO, Taishin BankCHALLENGES/OPPORTUNITIES• Paperless document management SOLUTIONS •Save document storage and transfer cost • Oracle BPM , Oracle Services Bus, Business Activity Monitoring, Oracle Security Model, •Reduce rate of lost of Loan Document •Increase efficiency in document search • Oracle Universal Content Manager (UCM), WebCenter Portal• Business Process Re-engineering for highest possible ROI • Oracle 10g Database, WebLogic 10MP1 •Simplified and standardize documents RESULT •Centralize document management • Taishin Bank to Save US$1.54 Million a Year by Automating the Process Management •Reduce processing time • Asian Banker Award for the Best Branch Automation and Networking for Increase time for customer• Integrated platform leverage on SOA & BPM service •Avoid duplicate IT investment • Robust infrastructure for future extension with legacy integration to customer CIF, Corebanking •Build expandable operating platform system and 3rd party gateway and switches •Risk management • Single Source of retention policies for all contents, improve efficiency, productivity and reduce cost • Better customer insight , risk mitigation and better customer service • Fast time to market for new product and services offering Copyright © 2011, Oracle. All rights reserved. Oracle & [customer] Confidential
    • Integrated IPMS (System architecture) Front Office Mid Office Back Office End User Process/Image Management Interface Backend System Services Components BPM UCM Web ServiceCustomer Service Core Banking Scan OCR Image Remittance BAM Mortgage valuation Branches Electronic transcript IPMS App International Task List (e.g eLoans) ESB SettlementsCorporate banking FICO, Credit Scoring IPMS Common Business Object etc.. ModelPersonal Finance Image Viewer International Telegram Exchange Consistent Customer Experience Across Channels Copyright © 2011, Oracle. All rights reserved. Oracle & [customer] Confidential
    • Improve Efficiency and Risk Mitigation Normal Branch Operations CenterPrior IPMS Operator Secondary Operator Operator Supervisor Paper Paper Image Paper Physical paper submission Reporting System Check Review Scan Printing Trade Enforcement Review Ability to cut down the competent review to improve efficiencyIPMS Go-Live Operator Supervisor Operator Supervisor Image Image Image IPMS IPMS IPMS Initiation Trade Enforcement Review Copyright © 2011, Oracle. All rights reserved. Oracle & [customer] Confidential
    • Process Centric Banking Approach Mortgage Loan- Document & Workflow 1. Customer submits loan form & docs thru different channels 1. Scan, index & create Loans Applications with signature 2. Store in Centralized CM Oracle UCM 1. OCR recognizes Layout, Text & Barcode 2. Real time trigger of Business Process on BPM SuiteCore & Legacy Applications 1. SOA allows seamless integration to Legacy & LOB applications 2. Annotate / Mark secrecy 3. Business Rules to review decisions (Big or small Loans) 4. Sign and stamp, scan and send it to customer 5. BAM to monitor entire process flow, define SLAs and KPIs Dashboard Oracle BAM Copyright © 2011, Oracle. All rights reserved. Oracle & [customer] Confidential
    • Key Values using BPM 11gBetter Process VisibilityPartial Home Loan Process Copyright © 2011, Oracle. All rights reserved. Oracle & [customer] Confidential
    • Agenda Oracle in the FSI Industry Multi-Channel Banking Enabling Process Centric Financial Institution Payment Services Hub Real-Time Banking Copyright © 2011, Oracle. All rights reserved. Oracle & [customer] Confidential
    • Current Situation Why Bank needs to act now• Impact on Market Position and Competitiveness - Changes in Fee Structure , Lower Margins - New Companies going to Mature Markets with LOW Cost Structure - Specialized New Players (e.g. PayPal, Google) - Lack of Flexibility impacting Time-To-Market - Cost Per Transaction – Critical Ever• Increasing Globalization and stringent (costly!) Regulatory Environment• Huge Opportunity in Emerging Markets (APAC, E7, Africa) through Financial Inclusion initiatives• Opportunity to capture share of wallet in matured APAC market Copyright © 2011, Oracle. All rights reserved. Oracle & [customer] Confidential
    • Typical Bank ArchitectureBefore Payment Hub Copyright © 2011, Oracle. All rights reserved. Oracle & [customer] Confidential
    • Bank ArchitectureWith Payment Hub Copyright © 2011, Oracle. All rights reserved. Oracle & [customer] Confidential
    • ORACLE Payment Services Hub Reference Architecture Bank User Operations Administrator Developer User Frontend Operations Dashboard Admin UI Developer Toolset ORACLE Payment ProcessorRetail Payment Back-end, Billers /Channel / Platforms Platforms Corporate Connector Modules Retail Connector Modules Reusable Functional Modules Standards based back-end/Billers ConnectivityBank Branch Back Office Sequencing/ Standards based Channel Connectivity Audit / Tracking Rule Validation SWIFT MT/MX Internet Payment PrioritizationInternet Gateway SWIFT Routing & Switching Queuing Dups check RoutingCall Center RTGS Acquiring Product RTGSPhone Banking Domestic Payment NetworkATM Liquidity Check Compliance Check Settlement IVR + Mobile ERP InterfacesPOS Banking Product Local Clearing Limits Accounting ReconciliationClearing/Settlement Core Systems ACH / EFT ACH / EFT FX Rates/Currency Account Acknowledg-ement Management ESB Fraudulent Check Payment Risk Analyzer Monitoring & Reporting Transaction Database Exception Management Trending & Analytics Copyright © 2011, Oracle. All rights reserved. Oracle & [customer] Confidential
    • Connectivity Open standard and adapter-based approach• High-speed Intermediary • Connect once; loosely coupled • Promote service re-use • Unlimited scalability • Visibility into messages PHP• Any to any connectivity • HTTP/SOAP • Web services Connectivity Mediator • Proprietary Messaging • JMS/MQ/EJB/RMI • FTP/SFTP/File • SMTP Data base Siebel Others • Native Database Lookup• Interoperability • .NET, Tibco EMS, IBM MQ, IBM WebSphere, Apache Axis, B2B Interchange, iWay 5.5 adapters Copyright © 2011, Oracle. All rights reserved. Oracle & [customer] Confidential
    • The ORACLE PSH STP++ Advanced Patterns Fast in-memory lookups Asynchronous checking Matching using CEP enabled through distributed of limits depending on techniques caching technology configurable Business RulesFraud Analyzer Duplicate Checking Limits Check Source Input Message Enrichment & Clearing & Target Output Audit Routing Manager Validation Standardization Settlement Manager Monitoring & Exception Compliance Reporting Management Check Continuous status monitoring and update to enable real-time Provision for Manual Checkpoint for violations Dashboard for KPI tracking intervention for Managing against predefined policy Cases of unhandled situations guidelines Copyright © 2011, Oracle. All rights reserved. Oracle & [customer] Confidential
    • Biller On-Boarding Steps to ensure a smooth GO-Live! Service automation calls Payment Hub Partner 1 2 3 Directory Biller Representative Review and Approval by Infrastructure setup process inserts Enters Details via Self- Bank’s Biller automation triggers on the Service Portal Integration Team Bank Sideregistration approval updates 4 Connectivity infrastructure testing / SLA results agreed BPM Payment Hub & signed off with Biller Portal updates updates 6 5 Submit Biller Readiness Pilot run certified with existing Status Report. Propose Payment processes by Biller Business for UAT & Integration Team Launch date. Copyright © 2011, Oracle. All rights reserved. Oracle & [customer] Confidential
    • Biller On-BoardingScreenshot sample Copyright © 2011, Oracle. All rights reserved. Oracle & [customer] Confidential
    • Payment – Consumer to Biller process E.g. typical payment process flow Billers Payment 4 1 3 Payment Gateway Pay Bill Bal InquiryCustomer payment viaBank channels 7 5 Payment status Process flow Debit Acc Core Banking Credit Biller Acc Business rule Trx handling 2 6 Copyright © 2011, Oracle. All rights reserved. Oracle & [customer] Confidential
    • BULK PAYMENT SUPPORTSCREENSHOT SAMPLE – BULK PAYMENT VIA INTERNET BANKING E-CHANNELOne source accountMultiple billers at once Copyright © 2011, Oracle. All rights reserved. Oracle & [customer] Confidential
    • TRANSACTION STATUS TRACKING & DEEP DIVESCREENSHOT SAMPLE Copyright © 2011, Oracle. All rights reserved. Oracle & [customer] Confidential
    • Latency Analysis On Every Steps Of Transactions Pro-active preventive action for any potential problems Web PageLatency Analysis Copyright © 2011, Oracle. All rights reserved. Oracle & [customer] Confidential 43
    • Transaction Visibility by SLAs Measure Responsiveness, Availability, Faults & Throughput (RAFT) Performance Metrics Response time Availability Throughput Etc.ServiceLevelAgreements Monitor against baselines and thresholds Historical Reporting End-to-End • Measure agreements in real time • Enables preventative and corrective actions App Server Payment Hub Service Bus Copyright © 2011, Oracle. All rights reserved. Oracle & [customer] Confidential 44
    • Real Time Dashboards For Business Users - Customizable •Business Activity Tracking •Real time updating of data •Ability to dynamic change the routing of certain workload heavy processes to other centers. Copyright © 2011, Oracle. All rights reserved. Oracle & [customer] Confidential
    • Agenda Oracle in the FSI Industry Multi-Channel Banking Enabling Process Centric Financial Institution Payment Services Hub Real-Time Banking Copyright © 2011, Oracle. All rights reserved. Oracle & [customer] Confidential
    • What is Real Time Event Processing?Bank’s operations & customers generatemillions of events per day Business Decision Oracle Event Call Centre Agent Offers the Processor Customer a Jewelery Insurance Policy Right after her Diamond Purchase. Proactively. Offer Business Events Feed Business Events Sources Business Rules e.g. -Large Spending at Jewelery Merchant -High amount spent on Credit Card at a Jewelery merchant - High Net Worth Customer outlet -Existing Insurance Customer Offer Jewelery Insurance -High Net Worth (Bank) Customer Channels = Outbound(Call Centre/SMS) Copyright © 2011, Oracle. All rights reserved. Oracle & [customer] Confidential
    • Real Time Event Processing in Banking • Offer ManagementSales & Marketing • Inbound Marketing • Outbound Marketing • Fraud Detection Risk & Control • Dynamic Controls Enforcement Customer • Drive cross-channel ONLINE customer interaction • Drive cross-channel OFFLINE customer interaction Experience • Adjust Processing of Service DeliveryService Delivery • Re-Prioritize Copyright © 2011, Oracle. All rights reserved. Oracle & [customer] Confidential
    • Real Time Marketing – What Happens TODAY? “Sorry. Not interested.” • Today we cannot guarantee that the Customer receives a promotion offer when he ATM Web Email Mobile Branch Call Center is ‘most’ interested. • Result - High Rate of offer rejectionCustomer Touch-points • CRM systems capture customer cases & interactions • Information stored in central repository. • Data Mining Tools analyze data and apply rules to execute marketing campaigns. • Interaction based on Post-event & Mortgage Offer Card Mgmt Wealth Insurance Past-data Mortgage Credit Card Offer Deposit Insurance System Mgmt Offer Back end Systems- Silo Automation, triggered without “any contexual intelligence” Copyright © 2011, Oracle. All rights reserved. Oracle & [customer] Confidential
    • Why such “High Rejection Rate”? Wrong Customer Wrong Offer Her mobile banking app receives Receive a promotion message a real-time offer to get 70% about discount on “Whitening discount on fund purchase mask”. How to change the Game? Mary just paid for the minimum John is a man (50 years old) RIGHT Time payment of her credit card RIGHT Channeldon’t have the I XYZ%#@#%... money! RIGHT Offer RIGHT Customer Wrong Product Wrong Timing RIGHT Price The call center agent cross-sell The website prompts up the her about value-added “Segment of 1” promotion of “Free Blackberry for upgrading to Premier Plan” services Mike loves iPhone, iPad and iPod. Next-Best-Action is THE WAY about Kate makes a compliant the charging fee Don’t boring me Not attractive at all Copyright © 2011, Oracle. All rights reserved.© 2008 Oracle Corporation – Proprietary and Confidential Oracle & [customer] Confidential
    • Real Time Marketing – Architectural Components Reporting Analytics Real-time Campaign Business Processes (Oracle BI) (Oracle BAM) Dashboard (Webcenter) (Oracle BPM) (Oracle Data Integrator & Golden gate) Correlated, Analyzed, Contextual Events Data Integration & Replication Inference CampaignAccess Management (Oracle IDM Suite) Real-time ODS Semantic Rules Engine Offer Metadata Management Model (DB) DB LiveList Repository Events State Model (Oracle CEP) (Webcenter) Oracle Service Bus Oracle Fusion Middleware Adapters POS CallCenter Web Email Retek ATM Mobile Branch Complete Integrated Best-of-breed Hot-pluggable Copyright © 2011, Oracle. All rights reserved. Oracle & [customer] Confidential
    • What is Complex Event Processing? Lightweight, Low Latency, Extreme High Throughput, and Java-based Application Container Event Sources SELECT S.stock, AVG(price) FROM SOME_STREAM S [range by 10 slide by 5] WHERE S.stock = ‘ORCL’ GROUP BY S.stockDatabase Event Distribution Network CEP Processor “I want to look at 10 secondsApplications worth of data” In-Memory Data Grid “I want a result generated every 5 seconds” Messaging Lightweight OSGI Server RFID Unmatched Performance and Scalability 1 Million Events Processed / sec (16 Intel Core) <1 Millisecond Latency for 99% Events Copyright © 2011, Oracle. All rights reserved. Oracle & [customer] Confidential
    • Real-Time Marketing - How it works! Rules get triggered based on rule agenda (created in real time) that evaluate the Bank’s Real-time SOA Infrastructure situation based on the contextual Bank’s SOA Layer seamlessly (Channels & Event Sources) passes a real-time transaction information gathered from different Call Ctr Card event captured at the event information sources as well as the event ATM IB source Mobile Branch (or a customer facing channel) Bank SOA Services Oracle CEP Engine loads knowledge (contextual data) about the customer, Single, Redundant Distributed its preferences, behavior patterns, Cache (in-memory + Personalized Offer available channels, etc. from Bank’s persistence)Event results in Real- Customer existing IT systems into its distributed Demographicstime, moments after cachethe Trigger occurred Channel Specific Metadata CEP Historical (e.g. Agent Skillset mapping, Rules Information SMS/MMS/Email Store preference, etc) Engine Business Analysts define Marketing Campaigns and Business Rules for Real-Time Business Rules Engine Calculate score & generate offer based on Campaign all the available Definitions information Copyright © 2011, Oracle. All rights reserved. Oracle & [customer] Confidential
    • The Road Ahead “To CONVERT Every Touch Point Contact into a SELLING OPPORTUNITY” Selling the Right Product(s) at the Right Time With Real-Time Reaction(s) to Business EventsCredit Card Purchase of Airline Ticket Up sell Travel Insurance via Call Centre at 1pm Same Dayat 1230pm Today via Agent/AirlinesChange of Home Address at Call Centre Up sell New Home Insurance/Personal Loans at Call Centre at the Same TimeIPO Subscription of Certain Amount Up sell to Turn the Unallocated Amt to Fix Deposit if, Say, More than > S$200KLarge Fund Inflow/Outflow in Transactional Accounts For Large Fund Outflow, Contact Customer. For Large Fund Inflow, Up sell Investment Products or TDAll Other Possible Touch Points Triggers/Events Others Cross/Up Selling Copyright © 2011, Oracle. All rights reserved. Oracle & [customer] Confidential
    • Some other examples…Events Promotion / ActionsCustomer use Credit Card in Pavilion mall Send SMS Promotion “Dine at Crystal Jade on 6/F of Pavilion Mall, show this SMS to get 20% off.” Increase Credit Card UsageCustomer buy Air Ticket / Tour Package Send Email DM Promotion (hosted by WebCenter site)using credit card One Time Travel Insurance, 10% off One Year Travel Insurance, 20% off Increase Credit Card Usage and Cross Sell InsuranceCustomer bank account received a large Make Outbound Callsum of money Invite Customer To Do A Financial Planning and recommend Investment Funds Earn Mutual Fund Subscription / Management Fee Copyright © 2011, Oracle. All rights reserved. Oracle & [customer] Confidential
    • Fraud Detection - Challenges• To be able to identify various types of fraud patterns within a continuous event stream and subsequently filter out all potential threats before they can cause damage• To scan through ALL events – irrespective of their source/authenticity• Complement the internal systems/processes with an agile Expert System based on intelligent rules• To be able to fire preventive/corrective actions in parallel as defined by Business once a threat is identified To Implement a Complete Fraud Management Solution to Cost Effectively and Intelligently Filter All Suspicious Events coming from Various Sources by tapping them close to the Source with the help of Right Rules in Real-Time Copyright © 2011, Oracle. All rights reserved. Oracle & [customer] Confidential
    • Banking Fraud What are the various types of frauds, most vulnerable areas of attack and risk of exposure for banks! Banking Fraud Insider Fraud Consumer Fraud Identity Money Stolen Accounts Payments Collection Loan/Credit Funds Transfer Rogue Trading “Inspector” fraud ATM deposits Check kiting Theft/Spoofing Laundering Cards/AcctsFictitious Bad debt write- Forged Dubious Personal Redirection/Acco Empty deposit Stolen DD Forged Invoice Bill discounts Agency reporting Large amount Frequent Credentials BIN attack SkimmingNaming off documents approval details/ID proof unt takeover env Process gaps Analytics & Trending Fraud Events based on “sweet camouflage historical spot” data Procedural rules Source: http://www.treasuryandrisk.com/2011/02/01/press-release-uk-report-doubles-estimates-of-fraud-loss Copyright © 2011, Oracle. All rights reserved. Oracle & [customer] Confidential
    • Real-time Fraud Management Why it requires a combination of multiple technologies? Millions of events Real-time Analytics Multiple rules firing Complex Events simultaneously Event Driven ProcessingLow latency Processingrequirement Business Process Management Real-time Potential Event Analytics Fraud Taxonomy Filtered Events for Declarative Rules subsequent processing Copyright © 2011, Oracle. All rights reserved. Oracle & [customer] Confidential
    • Architectural Components Analytics Reporting Case Management BPM (Oracle BAM) Correlated, Analyzed, Contextual Events Distributed Inference Rules Metadata Event Driven Semantic Model Rules Cache DB Engine Repo Repository Architecture Events State Model EnterpriseAncillary MonitoringServices & Management Oracle Service Bus Oracle Fusion Middleware Adapters POS CallCenter Web Email Retek ATM Mobile Branch Complete Integrated Best-of-breed Hot-pluggable Copyright © 2011, Oracle. All rights reserved. Oracle & [customer] Confidential
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