Making BancAssurance Agile - 4th Annual BancAssurance Conference

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Making BancAssurance Agle
4th Annual BancAssurance Conference - Vienna

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Making BancAssurance Agile - 4th Annual BancAssurance Conference

  1. 1. Creating an agile BancAssurance platform 4th Annual BancAssurance Conference - Vienna, Austria 23rd April, 2009 Kalpesh Desai CEO, Agile Financial Technologies kalpesh.desai@agile-ft.com YOUR LOGO www.agile-ft.com Page  1 Confidential
  2. 2. Agenda 1 BancAssurance – Current business drivers 2 Challenges in deployment Agility In BancAssurance 3 Technology as an enabler of business agility 4 About Agile Financial Technologies Page  2 Confidential
  3. 3. Agenda 1 BancAssurance – Current business drivers 2 Challenges in deployment Agility In BancAssurance 3 Technology as an enabler of business agility 4 About Agile Financial Technologies Page  3 Confidential
  4. 4. The need Regulatory Banks Regime Extensive branch network, infrastructure & Relaxed regulatory penetration Customer retention Regime challenges – require shift to universal Low cost banking model distribution model Dismantling barriers between banking and insurance products Opportunity to diversify banking revenues – fee income Customer Centricity Complex financial needs – Achieve reach in a require asset protection timely and cost- (insurance) and growth 70% of world efficient manner Need to target (investment) plans assets with HNWI’s to Margin people > 50 position pressure/credit complex Unprecedented Access to risk/enhanced KYC products population ageing liquidity High distribution Insurance costs spend increases Economic Channel fidelity as GDPs reach slowdown Poaching of quality threshold agents Power concentrated by a few leaders Under-serving of middle-tier Clients Insurance Environment consumers Companies Page  4 Confidential
  5. 5. Fragmented Approach By Banks & Insurers Client Branch network Agents/Brokers Insurance Banks sell Life Banks sell Companies and Pension Non-Life sell Investment products products Products Page  5 Confidential
  6. 6. Channels Servicing The Landscape Opportunity to introduce BancAssurance Page  6 Confidential
  7. 7. Services Expectation Gap •Automate services; evolve technology •Outsource non-core functions •Identify and structure fees based on “needs-based” approach High Service Needs NEEDS Level Client Service requirement GAP Low Profitable person-to-person servicing capability High Net 0 Mass Emerging Mass Affluent Emerging Worth Market Affluent Wealthy Client Segment Page  7 Confidential
  8. 8. Different strokes for different folks Plan Build & Build Manage Ultra Legacy Wealth HNWI Protect Mega Net Worth Wealth Customers Advice HNW Customers Mass Affluent Customers Personal/Premier Banking Customers Volume of potential Clients Page  8 Confidential
  9. 9. What clients want How clients desire to be Traditional process of servicing serviced • Brokerage services (product • Global outlook to “asset management” experts and financial advisors) • Investment Management • Research on international services (relationship-based development • Transparency and visibility on approach to financial products) • Wealth Planning (personal portfolio performance and risk financial planner) mitigation • Support and resources and tracking of social returns on their philanthropic and charitable pursuits • Choice of sectors, geographies, community focused, socially responsible investment screening Page  9 Confidential
  10. 10. Servicing the need Advisory based sales Segmented products Over the Counter/Direct Marketing Creditor Products sold with existing product distribution Mid balance High balance Preferred/ Salary Loan holders liabilities liabilities Private accounts customers customers Banking Client Base Page  10 Confidential
  11. 11. Business Drivers Diversify the banks’ products and services portfolio Integrate marketing efforts Reduce dependence on interest- based income Optimize distribution costs Gain access to a larger client base Increase cross-selling opportunities Page  11 Confidential
  12. 12. BancAssurance Business Models Classical fully integrated • All products are sold by the bank Full-time selling • Advisory based model product offering • Trained bank staff • Centralized support sell most of the services Embedded products • Integrated into the Agents • Wide range of Wealth • Insurance agents simple & complex Management products sell in banks Platform Distribution • Licensed advisors Agreements within the bank • Referral model • Higher product • Inadequate training complexity to bank employees • Limited product range Page  12 Confidential
  13. 13. The Need Leverage joint branding Product Creation & Product fitment Underwriting and differentiation Value to Value to Bank Insurer Reduce distribution costs Additional offering at no by leveraging additional infra cost infrastructure Leverage of branch network Holistic financial offering to (reach) and client base (depth) client Value to Customer Page  13 Confidential
  14. 14. Objective – Leverage Customer Centricity Objectives Factor Bank Insurance Company Retention of clients Access to a quality customer base. Ability to offer customized Customers offerings to a wider, wealthier client base Ability to service more Revenue and channel Serviceability financial needs under one diversification roof Effective and profitable Quicker geographical reach on Infrastructure the bank„s backbone resource utilization Revenue diversification, Low distribution cost, increased Economics increased fee based income, customer penetration and reduce revenue volatility servicing, increased revenues Page  14 Confidential
  15. 15. Objective - Increase revenues/cross-sell Credit Shield/ Lost Card Insurance Credit cards Credit Life Insurance SME Banking Mortgage Life Insurance Mortgage Motor Insurance Auto Loans Personal Credit Insurance Personal Loans Page  15 Confidential
  16. 16. Objective - Winning Strategy For All Customers Receive holistic solution from a one-stop shop Insurance Companies Banks Deepen client New distribution relationships channel Increase fee income Low distribution cost Page  16 Confidential
  17. 17. Evolving A Client Centric Approach Page  17 Confidential
  18. 18. Agenda 1 BancAssurance – Current business drivers 2 Challenges in deployment Agility In BancAssurance 3 Technology as an enabler of business agility 4 About Agile Financial Technologies Page  18 Confidential
  19. 19. Integrating BancAssurance in operations Global Banking Private Banking and Markets Global HNWI Institutions Corporate Mass Affluent Commercial Personal Banking banking SME Mass Market Wholesale and Retail Products Page  19 Confidential
  20. 20. Process and Technology Challenges Inability to align products and services with customer profitability Islands of information created People and by the deployment of relationship point solutions and dependent disparate IT processes solutions Poor visibility of Past revenue growth Business economic led to increased fixed Under- performance and costs of acquiring drivers by customer and serving new performance segments customers. Page  20 Confidential
  21. 21. Technology Can Inhibit or Enable • Inflexible Applications • Islands of information • Tedious Product Development • Interface touchpoints • Outdated software • Succession planning • Uncertainty • Implement a multi-carrier BancAssurance model • Constantly evolving needs • Increasingly sophisticated I.T. and demanding client base • Increase competitiveness Business Page  21 Confidential
  22. 22. quot;In a time of accelerating turbulence, the valuation of a company will be strongly affected by how it executes change.quot; Page  22 Confidential
  23. 23. BUSINESS AGILITY !! NOT A LUXURY !! The ability of a business to adapt rapidly and cost efficiently in response to changes in the business environment. Page  23 Confidential
  24. 24. Question how do you change a business model and innovate? Page  24 Confidential
  25. 25. If your current systems do not enable teams to collaborate And create a common platform linking processes, knowledge and tools to leverage the BancAssurance opportunity Page  25 Confidential
  26. 26. Bridging the gap • Net worth • Based on Client Lifetime • Client interests, Value • Analyze client needs frequency of interaction, communication and create tailored preferences and offerings • Build additional financial behavioral attributes. capabilities or find partners to service the gap Position Customer Products and Segmentation Services Stay Current Service with Client Delivery Needs Model • Continuously monitor • Determine a service and update client approach • Deliver service through profiles and behavior patterns multiple channels and • Engage research and practice models. surveys to question internal assumptions Page  26 Confidential
  27. 27. Agenda 1 BancAssurance – Current business drivers 2 Challenges in deployment Agility In BancAssurance 3 Technology as an enabler of business agility 4 About Agile Financial Technologies Page  27 Confidential
  28. 28. Aligning Business Business and Organizational Operational customer strategy design effectiveness • Identify and migrate • Break out of silos to • Build, buy or clients from transition from a partner to offer banking services to product-centric to a more complete asset management customer-centric asset services organization management, • Position advisory • Integrate different retirement & estate planning and capabilities and components of protection best-of-breed offering to provide capabilities investment and a single point of • Leverage physical insurance products contact for clients • Assess viability of footprint • Ensure rigorous providing a asset adoption of “know management offering to the mass your customer rules” affluent Page  28 Confidential
  29. 29. With I.T.  Shift from islands of information to a holistic integrated system  Deploy CRM to enable identification of potential wealth- management clients and provide an integrated view of the customer and information across all product groups  Using technology as a platform for serving the mass affluent  Improving information and data exchange to share information across silos - Integrating legacy and new systems  Outsource non-core functions to service providers - Investment Accounting - Research - Reconciliation and transcription Page  29 Confidential
  30. 30. Technology as an enabler of business agility  Technology is a key operational factor for every insurer - From Lead Generation to Policy administration and Claims Management.  Major IT drivers: - New product development. - Integration with insurance company data, sales and services practices - New distribution channels. - New regulatory requirements.  Integrate tightly with the Bank’s own systems  Web-centric IT system. - On-line case management and request handling - Channel Management. - Policy, Product details and online premium calculator - Facility for group insurance customers to view individual savings status on the web.  Facility to pay premiums through credit cards, Net banking, Standing Instructions, etc. Page  30 Confidential
  31. 31. Approach Insurance Products Web based access Interface between IT systems to Channels, Employees, in the Bank & Insurance Branches and Customers company Banking Products Creation of new products Service offering by Servicing client needs Integrating processes Core Banking Platform Page  31 Confidential
  32. 32. Approach Maintain bank‟s service Multi-carrier support standards Integration with core banking (Customer Information) Ease of premium Utilisation of alternate payments using auto service points to minimise debits, cards, net cost banking, collection agencies Page  32 Confidential
  33. 33. Technology as an enabler of business agility o Create value for banking Increased and insurance customers Response Levels o Improve experience for distributors, partners and Increased Employees Revenues o Reduce the sales cycle o Enhance interoperability Cost Efficiency between systems o Shift to holistic integrated systems from islands of disparate information Scaleability o Provide integrated view of customer information Integrated/ Aligned across various products Processes o Improve information-sharing practices Page  33 Confidential
  34. 34. Self serve capabilities using the web Bank Employees/ RMs Unified Technology Platform Scalability and Adaptability Insurance Agents Consultants Distribution Channels Brokers Corporate/ Individual Customers Direct Marketing Page  34 Confidential
  35. 35. Examine deployment models Higher return on Software as Service IT investments Entire computing capacity is outsourced to third party/ solution provider Competitive costing Platform as Service Service to create, operate and run applications Expense Control Infrastructure as Service Fully outsourced infrastructure and application environment Page  35 Confidential
  36. 36. Integrated BancAssurance Framework Multi-Carrier Management Mid/Back Front Office Office Integration Integration Product Performance Portfolio Management Distribution Network Automation Page  36 Confidential
  37. 37. Thank you Kalpesh Desai Page  37 Confidential
  38. 38. Agenda 1 BancAssurance – Current business drivers 2 Challenges in deployment Agility In BancAssurance 3 Technology as an enabler of business agility 4 About Agile Financial Technologies Page  38 Confidential
  39. 39. The Evolution Backed by Private Equity, Agile Financial Technology is a mid-sized Indian IT company focused on providing products and services to the Investment Banking, Asset Management, Insurance and Capital Market sectors M&A Strategy led by a strong management team 100% buy-out of IT/ITES companies Management teams of underlying Agile emerges as a vertically integrated companies are inculcated into Agile‟s focused on the Financial Services & mid-market player Insurance Sector core team Create economies of scale, efficiency and a powerful sales, support, and marketing process to leverage a vertically integrated product & services offering Consolidated revenues of US$ 30mn in FY08 Page  39 Confidential
  40. 40. The Constituents Insurance Management Technology Solutions Investment Banking BPO •Managed Services •Treasury & Dealing •General, Life, Medical, •Application processing Activity •Security Consulting •Fund Management Broking, Banc Assurance •Document Verification •App maintenance/ •Portfolio Management software •KYC •Liabilities Management development •Takaful compliant •Banks, AMCs, Insurance •EAI •V@R Management •Strategic Resourcing •ALM •Over 14 years in •Over 20 years in •Over 6 years in business •Over 20 years in •140+ employees business business business •130+ employees •2100+ employees •Provide consulting, •120+ employees •Ranked by IBS •40 locations in India •Initial deployments in the development and •India‟s largest domestic Intelligence (UK) as 6th managed services to M.E. at Emirates Overview largest Treasury solutions BPO banks, insurance Insurance, Al Ain Al Ahlia •Provides transaction •Oldest Oracle partner in provider globally companies and asset •Largest Indian wholesale processing services to management companies India (1985) banking software provider EVERY bank, mutual •Ranked as “Highly fund, and life insurance recommended Company” company in India by THE BANKER, India •Bombay Stock Exchange •Chola-Mitsui •Union National Bank •Mashreq, First Gulf •State Bank of India Key Clients •Apollo DKV •Bahrain National Holdings Bank. ADCB •Barclays •Deutsche Bank •AIG Mutual Fund •Amex, StanChart ` •BNP Paribas •Edelweiss •StanChart Mutual Fund •Barclays •Edelweiss •ONIC (Oman) •Reliance Mutual Fund •AIG` •Kotak Life & Kotak AMC •Astra (Singapore) Page  40 Confidential
  41. 41. Delivering Value • Managed Services • Insurance • Security (BCP/DRP) • General, Life, Broking, Consulting • Bank Assurance • Strategic Resourcing • Investment Bank/Fund • Enterprise Application Houses • • Asset Management Integration • • Investment & PMS • NBFC‟s/Banks Technology Products Services BPO KPO • Banking • Loan, Payments, Liabilities origination processing • Fund Accounting Services • Mutual Funds • IPO processing & Support • Origination, KYC • Equity & Forex Research • Insurance • Claims processing, KYC Page  41 Confidential
  42. 42. Milestones Our BPO, Pamac processes over 7% of all retail applications & 27% of all new credit card applications processed in India Pamac is ranked amongst the largest Indian domestic BPO vendors by D&B Over 10mn transactions processed per annum. Over 70mn US$ of loans disbursed per annum The largest Mutual Fund in India (over 22 Bn$ AUM) uses iDEAL Funds iDEAL Funds processes 30% of India‟s Mutual Fund‟s AUM Around 45% of the money exchange transactions in India are managed by MercuryFX iDEAL is ranked as the 6th largest Treasury solution globally by IBS, UK; and the largest Indian wholesale banking software in terms of footprint Page  42 Confidential
  43. 43. Our Engagement Process Horizontal Services Vertical Sales Organization Page  43 Confidential
  44. 44. Our Presence Central & Eastern Europe Middle East  Russia  UAE (Direct Presence)  Kazakhstan  Oman  Ukraine  Bahrain  Poland  Kingdom of Saudi Arabia  Kuwait  Qatar Asia Pacific Africa  India (Direct Presence)  Mauritius (Direct Presence)  Sri Lanka  Kenya  Indonesia  Tanzania  Malaysia  Malawi  Phillipines  Ethiopia  Singapore (Direct Presence)  Nigeria  Ghana Page  44 Confidential
  45. 45. iDEAL Investment Management Suite Investment/Fund Banks Finance Companies Houses/Insurance •iDeal Integrated •iDeal Funds – Front,, Mid & •iDEAL Finance – Treasury Management Back office for fund, Liabilities (Borrowings) investments and portfolio Management •Mercury FX –Merchant management & Retail FX •Quadryx – OTC •Fund Managers / Investment Derivatives •Quadryx - OTC Managers in AMCs, Derivatives •CALMS – ALM Insurance Companies and •RiskMark – Value @ •Clients Portfolio Management Risk •L&T Finance, Shriram companies •iDeal Wealth Transport, Canfin Homes, •FundMetrics –Risk & Management Sundaram Home Finance, Compliance reporting Fullerton India Credit, •Clients •iDeal Funds Performance HDFC, Kotak Prime •State Bank of India Reporting Limited, Fullerton India, Karnataka Bank,, Indian •Clients Cholamandalam DBS Bank, Axis Bank, OBC, •AVIVA Life Insurance*, Central Bank of Sri Bharti AXA Life*, TATA AIG Lanka,, PNB Gilts, HDFC life*, LIC (Debt portfolio), Bank, ING Vysya Bank, Shriram Life, Reliance Life, SocGen, Union National Reliance general, Sahara Bank (UAE) Life, BNH (Bahrain), Reliance MF, AIG MF, StanChart MF, HDFC MF, SBI MF, , Pru ICICI Page  45 Confidential
  46. 46. Insurance Management Suite Insurance Brokers Banks Companies • Agilis - • BrokerWorld – • BancAims – Integrated Insurance Comprehensive Insurance Brokerage BancAssurance Enterprise Management Management Management • Rate comparison- • Non-life, Life, Policy Composite Administration- Claims follow up- • Takaful Accounting • Health & TPA’s • All life and non- life businesses covered • Powerful commission tracking Page  46 Confidential
  47. 47. Technology Solutions Solution Framework Infrastructure Services • Data Centers – Design, Security Paradigm, • IntiCraft – A customer self service application for Implementation, Movement and Support. Mutual Funds • Infrastructure Software Support – Database, • Life Insurance Portal – Customer, Agent and Middleware, OS, Security and Messaging Employee Portal – A virtual office for Life • Disaster Recovery Design and Implementation Insurance Companies • HRMS add-ons – Expense Management, • ISO 270001 Consulting Appraisal System, Emp Intranet, Emp Helpdesk • Database and schema migration • Secondary Sales – Tracks movement of goods sold beyond the first point of sale Enterprise Application Integration System Integration • Application Integration • Hardware sizing and selection • Customer Application development and • Building a solution for solving a problem – may maintenance require a mix and match of third-party products •Middleware expertise on Oracle, IBM and Sybase Page  47 Confidential
  48. 48. Business Enablement Services Fund Admin/ Investment Verticals Serviced Banks NBFCs Insurance Telco's Registrars Banks/Funds Equity & Policy Credit Risk Fund R & T/ Back Office Processes Enabled Forex & Claims Evaluation/ Accounting IPO Processing Accounting Research Admin Processing Customer Data Mining/ Receipts/ Accounts Reporting Research interaction MIS Payments Activities Outsourced Txn Fulfilment Verification Dispatch Reconciliation Processing Business Process Strategic Application Managed Services Provisioning Consulting Staffing Development Services iDEAL Application 3rd Party/Client Apps Provisioning Page  48 Confidential
  49. 49. The Company We Keep Banks Investment Management Page  49 Confidential
  50. 50. The Company We Keep Insurance Financial Services Page  50 Confidential
  51. 51. Infrastructure  India SPOKE - 40 cities across India, 80+ locations SPOKE B(3) A(3) SPOKE SPOKE SPOKE A(2) C(1) C(3) - Hub & Spoke model SPOKE SPOKE B(2) B(1) SPOKE  ISO 9001:2000 certified BPO H A(1) U SPOKE H H C(2) B H. - 300+ employees in product development and U U B O. B B H deployment A C H. U SPOKE O. B F(2) - 150+ employees in technology support services H F SPOKE H D(1) SPOKE U F(1) U B - 2,100 employees in business enablement services B SPOKE SPOKE DE(1) E(2) E (BPO) SPOKE SPOKE D(2) F(3) SPOKE SPOKE E(3) D(3) - 7,600 resources deployed onsite in banks  UAE - Dubai Internet City - Dubai Outsourcing Zone - Sharjah Airport International Free Zone Page  51 Confidential
  52. 52. Page  52 Confidential

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