Idg banking vietnam2010 customercentricplatform-100527-l-tay-v07

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Customer Centric Strategy Roadmap for Banks

Customer Centric Strategy Roadmap for Banks

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  • 1. <Insert Picture Here> Evolving A Customer Centric Platform For Vietnamese Banks Trends AND Strategies From Across The World Lance Tay Senior Director, Financial Services Global Business Unit Hanoi, 27 May 2010
  • 2. Agenda • Global Trends Banking • Customer Centric Platform Strategies • Roadmap for Success • Oracle Value Proposition © 2010 Oracle Corporation – Proprietary and Confidential 2 BankingVN-CustCentricPlatform-100527-LTay-v07
  • 3. Challenges in Financial Services 2nd global banking crisis? “W” or “L” shaped recovery? CHALLENGES IMPERATIVES • Continued economic • Greece/EU debt Financial uncertainty crisis, China Institutions property bubble Needs To Be • Increasing risk and Even More regulatory • Basel 3, ICAAP, Nimble requirements SEPA end-date Spend less to get • Intensified competitive • USAA1 enables more innovation mobile-phone photo- capture check Respond • Less tolerance for deposit “immediately” to slow restructuring and competition post-merger benefits • Gartner2 predicts realization 50% of post-merger Extract value integrations will fail faster • Increasing customer dissatisfaction • Accelerated Serve to sell customer defection 1. Bank Systems & Technology, Conz, 26 Jun 2009 2. Gartner, Moyer, 23 Jan 2009 © 2010 Oracle Corporation – Proprietary and Confidential 3 BankingVN-CustCentricPlatform-100527-LTay-v07
  • 4. The Challenges We’re Hearing Grow Business & “How can I streamline my business processes to grow wallet Cross-Sell to share and shorten time to market for new products and services?” Customers “The average cost to acquire a new customer is $3,500 in the US” American Bankers Association Compliance & “How can my organization meet the increasing Regulatory Pressures regulatory compliance demands?” “IT spend on compliance will grow annually at 14.1% and reach $3.0 billion by 2006” The Info Shop Scale Costs to Match “How can I improve cost efficiency ratios while providing Market Opportunity greater value to our customers?” “In the near to intermediate term, the industry is expected to continue to experience pressures on its net interest margin” AM Best © 2010 Oracle Corporation – Proprietary and Confidential 4 BankingVN-CustCentricPlatform-100527-LTay-v07
  • 5. The Customer Centric Platform Challenge Retain, Acquire and Cross-Sell Customers, Product Innovation Grow Business & “How can I streamline my business processes to grow wallet Cross-Sell to share and shorten time to market for new products and services?” Customers Forrester Trends : Retail Financial Services © 2010 Oracle Corporation – Proprietary and Confidential 5 BankingVN-CustCentricPlatform-100527-LTay-v07
  • 6. Agenda • Global Trends Banking • Customer Centric Platform Strategies • Roadmap for Success • Oracle Value Proposition © 2010 Oracle Corporation – Proprietary and Confidential 6 BankingVN-CustCentricPlatform-100527-LTay-v07
  • 7. Customer Centric Platform Strategies Meeting Customer Expectations 1. Delivery Channels – Beyond traditional branch Top 3 successful and ATM channels business 2. Products Innovation strategies – Blended deposit, loan, payment, investment and Critical for fast corporate offering growing 3. Customer Relationship economies such Management as Vietnam – Integrating service with sales, and core banking © 2010 Oracle Corporation – Proprietary and Confidential 7 BankingVN-CustCentricPlatform-100527-LTay-v07
  • 8. 1. Delivery Channels Direct banking channels enablement is key • Wider reach – 60% prefers to transact over the internet • Lowest cost to serve – 10cents per transaction over mobile Source: 2007 McKinsey survey of personal financial services in Vietnam © 2010 Oracle Corporation – Proprietary and Confidential 8 BankingVN-CustCentricPlatform-100527-LTay-v07
  • 9. Vietnam Direct Banking Potential Mobile banking channel emerging dominance • 30m+ mobile subscribers Internet Usage Mobile Subscribers 25,000 25000 20,000 20000 Subscribers in 000s Users in 000s 15,000 15000 10,000 10000 5,000 5000 0 0 2003 2004 2005 2006 2007 2008 2001 2002 2003 2004 2005 2006 2007 Year Year Source: VNNIC Source: ICT Statistics / International Telecommunication Union © 2010 Oracle Corporation – Proprietary and Confidential 9 BankingVN-CustCentricPlatform-100527-LTay-v07
  • 10. 2. Product Innovation Increase agility - break-out from legacy core banking constraints Legacy Core Banking Systems Modern Core Banking Limitations Solutions • Closed platform • Open platform • Hardcoded offerings and processes - • Incorporating latest Difficult to create new product products and service variations and new products offerings in single • Predominance of aging legacy “core” systems requires companies to • Easy product spend between 65% and 80% of IT reconfiguration - mix & spend on system maintenance and match products to steady state operations create new offerings • Siloed infrastructure (often mirroring • Process driven organization) creates redundant solutions credit, deposit, lending and trading • Lower cost applications and data environments maintenance © 2010 Oracle Corporation – Proprietary and Confidential 10 BankingVN-CustCentricPlatform-100527-LTay-v07
  • 11. Modern Core Banking – Enable Consistent and Superior Customer Experience From a product centric to a customer centric business model © 2010 Oracle Corporation – Proprietary and Confidential 11 BankingVN-CustCentricPlatform-100527-LTay-v07
  • 12. 3. Customer Relationship Management Delivering service to win and retain profitable customers 1 Concept Creation Servicing & Product Design 6 Transacting • Customer insight 2 & Planning • Product & market analytics • Customer maintenance • Product characteristics • Product and usage reporting • Contract/account maintenance • Product details • Marketing/Segmentation analysis • Financial transactions • Product pricing • Concept refinement • Payments & collections • Product bundling • Customer escalations & claims • Product risk assessment • Product delivery vehicle(s) Acquisition, On-boarding, Retention Account Origination / 5 New Business 3 Product Creation • Product selection Campaign • Application capture 4 Management • Product sourcing • Delivery vehicle setup/activation • Decisioning • Integrated marketing • Collateral/marketing materials creation • Orchestrated fulfillment • Discounting and promotions • Docs, processes, employee training • Contract/account creation • Sales execution • Discounts and promotions • Real-time offer generation • Real-time up sell/cross sell • Campaign effectiveness © 2010 Oracle Corporation – Proprietary and Confidential 12 BankingVN-CustCentricPlatform-100527-LTay-v07
  • 13. The Evolution of CRM – From Mid to Front Office Transact Analyze Engage 1990’s 2000’s 2010’s © 2010 Oracle Corporation – Proprietary and Confidential 13 BankingVN-CustCentricPlatform-100527-LTay-v07
  • 14. Agenda • Global Trends Banking • Customer Centric Platform Strategies • Roadmap for Success • Oracle Value Proposition © 2010 Oracle Corporation – Proprietary and Confidential 14 BankingVN-CustCentricPlatform-100527-LTay-v07
  • 15. Roadmap for Success 3-Stage Recommendation For Vietnam 1. Implement a scalable • Reach out to rapidly direct banking solution expanding market 2. Install a modern core • Rapidly offer new products banking solution wanted by customers 3. Undertake a • Capture and retain comprehensive CRM profitable customers solution © 2010 Oracle Corporation – Proprietary and Confidential 15 BankingVN-CustCentricPlatform-100527-LTay-v07
  • 16. 1. Oracle FLEXCUBE Direct Banking Scalable internet and mobile banking solution – out of the box • Support for multiple delivery channels, with a wide range of functionality. This includes banking, bill payment and presentment, online statements, account registers, alerts, personalization, account aggregation, and one-to-one marketing • Offer advanced services on mobile communication devices SMS • Expand business across geographies • Address fraud and mitigate phishing risks • Rollout your 'Gen Y' strategies effectively • Lower customer acquisition and servicing costs Any Consumer Device • Offer benchmark internet banking and Any Core Banking mobile banking services Systems © 2010 Oracle Corporation – Proprietary and Confidential 16 BankingVN-CustCentricPlatform-100527-LTay-v07
  • 17. FLEXCUBE Direct Banking - True ‘Anywhere, Anytime’ • Available across range of devices – Mobile Phones, PDAs, Smart Phones (iPhone, WindowsMobile, Symbian) • GPRS, EDGE, WiFi • Supports mobile banking through – SMS – Browser based (WAP 2.0, i-mode) – Downloadable Java applications • Secure end-to-end transaction • User Interface managed by application to suit individual devices © 2010 Oracle Corporation – Proprietary and Confidential 17 BankingVN-CustCentricPlatform-100527-LTay-v07
  • 18. FLEXCUBE Direct Banking (FCDB) – Application Map Pre-built functional solutions, templates, and core integration Delivery Channel Integration Layers Backend Systems Internet PDA Mobile Online/ Batch Retail Banking Retail Banking Store & Forward Corporate Banking Current & Savings Transfers & Term Deposits Loans Accounts Payments Other Legacy Systems Orchestration Bill Payment Standing Orders Customer Services Credit Cards Credit Card System Corporate Banking Message Translation Current & Savings Term Deposits Loans Cash Management Account Other Systems Business Services Integration Authorization Bulk Payments Trade Finance Customer Services CRM Mandates Synchronization Investor Services ERP MF Portfolio View MF Buy / Sell MF Switch / Redeem Customer Services Standardised XML Interfaces Security (Tokens, PKI, Adaptive) Core Services ASCII, ISO 8583 Mobile Gateway Administration Authentication Entitlements Multi Entity Message Queues, Web Services, TCP/IP, Reporting Multi Branding Multi Lingual Multi Currency Security EJB © 2010 Oracle Corporation – Proprietary and Confidential 18 BankingVN-CustCentricPlatform-100527-LTay-v07
  • 19. Case Study FCDB Case Study - Jibun Bankbook (Japan) Jibun Bank – JV of KDDI and Bank of Tokyo-Mitsubishi UFJ Top page after login Deposit/withdrawal details Monthly accounts Change in balance Jibun Bank Wins Jibun Bank Wins Screen change by clicking a tab Awards for Awards for Innovation & Innovation & Quality Quality • •Asian Banker Asian Banker Banking expression “naturally” expected by Summit Award Summit Award (2009) mobile phone users (2009) • •Celent ––Mobile Celent Mobile Banking (2010) Banking (2010) © 2010 Oracle Corporation – Proprietary and Confidential 19 BankingVN-CustCentricPlatform-100527-LTay-v07
  • 20. Case Study Jibun Bankbook - Quick Account-Opening Jibun Bankbook page Enter personal information before opening an account It takes only 10-15 minutes up to this point Use the built-in Within a week, a camera to cash card will photograph the be sent to home driver’s license to complete the and send it account-opening directly process. Data entry is minimized by using the existing subscriber information already registered for the mobile phone. Easy quick account-opening process whenever & wherever © 2010 Oracle Corporation – Proprietary and Confidential 20 BankingVN-CustCentricPlatform-100527-LTay-v07
  • 21. Case Study Jibun Bankbook - Money Transfer Using A Mobile Phone Number Select a recipient from the address book Enter an amount/message Transfer completed Transfer process is completed, just like sending an email. *The recipient receives a notification email when the money is transferred into their account. © 2010 Oracle Corporation – Proprietary and Confidential 21 BankingVN-CustCentricPlatform-100527-LTay-v07
  • 22. 2. Oracle Flexcube Core Banking Solutions Proven in VN, and designed for future-proofing SOLUTIONS KEY FEATURES & BENEFITS • Retail • Vietnam market pre-packaged customization Banking • Engage distribution partners • Corporate • Streamline mortgage processing Banking • Enhance lending and leasing • Leasing / HP • Standardize origination • Islamic • Achieve economies of scale by centralizing Banking trade finance operations in regional hubs • SWIFT ready payments with support for SEPA • Support innovative business models • Gain better analytical and operational insight, manage compliance • Adapt and transform faster • Improve inventory management • Address change for business needs © 2010 Oracle Corporation – Proprietary and Confidential 22 BankingVN-CustCentricPlatform-100527-LTay-v07
  • 23. FLEXCUBE Universal Banking – Functional Arch. BPEL & SOA Foundation © 2010 Oracle Corporation – Proprietary and Confidential 23 BankingVN-CustCentricPlatform-100527-LTay-v07
  • 24. 3. Oracle CRM Solutions – Complete CRM Transact, analyze, and engage Siebel CRM Oracle CRM On Demand Oracle Social CRM Integration (AIA) © 2010 Oracle Corporation – Proprietary and Confidential 24 BankingVN-CustCentricPlatform-100527-LTay-v07
  • 25. Siebel 8 – Enterprise-class FSI CRM Sales Marketing • Task-Based User Interface • New Strategic Marketing Initiatives • Haley Rules Engine Integration • Enhanced Budgeting and Financial Management • Advanced Sales Forecasting • New Marketing Collateral and Asset Inventory • Improved Territory Management Management • PRM Contract Enhancements • Enhanced Loyalty Management Capabilities • SOA: Partner Registration • SOA: Personalized Web Offers, Response Creation, Event Management Service Self-Service • Customer Facing Web Services • Managed Services support • Enhanced Store-and-Forward Messaging • Advanced Bill Presentment, Payment & Analytics Capabilities • SOA: Inventory Transactions, Entitlement • Versioned Hierarchy Checks, Asset and Warranty Registration • Advanced Search for eService • SOA: Asset Registration Master Data Management Customer Order Mgt • Universal Data Quality Integration • SOA: Catalog/Configurator • Enhanced Data matching • Privacy Management • SOA: Shopping Cart services • Procedural Condition support • SOA: CDI Data access © 2010 Oracle Corporation – Proprietary and Confidential 25 BankingVN-CustCentricPlatform-100527-LTay-v07
  • 26. 3+2+1 = CRM, Core Banking, and Channels Integration Evolving A Customer Centric Platform Cust Channels CRM © 2010 Oracle Corporation – Proprietary and Confidential 26 BankingVN-CustCentricPlatform-100527-LTay-v07
  • 27. Agenda • Global Trends Banking • Customer Centric Platform Strategies • Roadmap for Success • Oracle Value Proposition © 2010 Oracle Corporation – Proprietary and Confidential 27 BankingVN-CustCentricPlatform-100527-LTay-v07
  • 28. Oracle in Did You Know? Banking 10 of the top 10 Global banks use Oracle Applications to run their business* 23 of the Top 25 North American banks use Oracle Applications to run their business** 15 of the Top 20 Global banks use Oracle Applications to measure and manage their performance*** ** Onesource Public Parent Commercial Banks Onesource Public Parent Commercial Banks ** *Based on the annual ranking by Tier 1 Capital performed by the Banker Magazine July 2004; Includes Financial, Human Capital and Customer Management Applications *Based on the annual ranking by Tier 1 Capital performed by the Banker Magazine July 2004; Includes Financial, Human Capital and Customer Management Applications *** Based on 2006 Banker’s Almanac Ranking *** Based on 2006 Banker’s Almanac Ranking © 2010 Oracle Corporation – Proprietary and Confidential 28 BankingVN-CustCentricPlatform-100527-LTay-v07
  • 29. Oracle’s Strategy Open Standards-Based Architecture More More More Value, Less Choice, Flexibility, Complexity Less Risk Less Cost © 2010 Oracle Corporation – Proprietary and Confidential 29 BankingVN-CustCentricPlatform-100527-LTay-v07
  • 30. Oracle + Sun Complete, Open, Integrated Systems Integrated Approach Complete, Integrated Product Stack Business Benefits Higher Quality of Service Innovation Delivered Faster Better Performance, Reliability, Security Lower Cost Reduced Complexity Single Point of Support Contact Easier to Manage Certified Configurations © 2010 Oracle Corporation – Proprietary and Confidential 30 BankingVN-CustCentricPlatform-100527-LTay-v07
  • 31. Oracle Oracle’s Banking Footprint ISV Partners Governance, Lifecycle Management Customer & Risk & Business Marketing Selling Originating Servicing Compliance Insight Risk Based Retail Commercial Private Wealth Mgmt Customer External Decisioning Insight Interfaces Customer Experience Customer Risk Based OFAC Pricing Call Team Order Internet CRM & Lead Financial Analytics Platform Teller Center Selling Mgmt Banking Marketing Mgmt Planning Channel Check Economic Internet Analytics Capital/RAPM Kiosk EBPP Security Client Derivative Order Entry On Call Order Banking Trading Servicing Pricing Platform Demand Center Marketing Market Product and Transaction Processors Analytics Feeds Risk Deposits Savings Deposits Cash Mgmt Loans Integration Performance Mgmt Management Mkt Data Performance Trade Management Treasury Payments Balance & Positions Operational Finance Portfolio Exec Analytics Risk Loans Mortgages Mgmt Asset Syndicated Structured Fees & Commissions Mgmt Loans Derivatives Profitability Market Risk Cards Compliance Analytics/RAPM Investments (Credit / Debit) Compensation Investor Nostro Lock Box & Limits Services Recon Funds Transfer Trade Clearing & Reconcil Credit Risk Payments Leasing Core Banking Ledger Leasing Custody Core Banking Pricing Ledger Processing Settlement -iation Operational ALM Excellence Master Data Management Customer Data Hub Product Hub Org Hierarchy Hub Accounting Hub Payments Hub Op Intelligence Fed Wire HR Analytics Compliance Corporate Administration SWIFT Enterprise GL Consolidation Budgeting Profitability Mgmt Incentive Comp Analytics BASEL II Platform POS & 1A Human Capital Mgmt Projects Procurement Fixed Assets Real Estate Portal & Credit Dashboards Rating AML Business Enterprise Technology Activity ACH SOX Rich Client F/W Database (Grid, Enterprise Content Web Services J2EE Services, ESB Monitoring AJAX, Web 2.0 Memory, Embed) Mgmt Orchestration (BPEL) and Rules Engine Other Business Systems Regulatory Process Reporting Systems Mgmt Directory Services Web Services Mgmt Identity Mgmt Access Mgmt Analytics © 2010 Oracle Corporation – Proprietary and Confidential 31 BankingVN-CustCentricPlatform-100527-LTay-v07
  • 32. Global and Local Partners GLOBAL SYSTEM INTEGRATORS INDEPENDENT SOFTWARE VENDORS Activplant Gelco OSIsoft, Inc. Pavilion ADP Honeywell POMS Technologies Aegis Analytical Image Solutions PHT Corp. Premenos ArisGlobal I-Many Inc. "Templar" Aspentech IMS Health Inc. Proscape Business Objects SA Integic Relsys Callidus Software Inc. Invensys Systems Rockwell Camstar Systems, Inc. Franklin Group SAS Institute Citect GE Fanuc Siemens ClickCommerce invivodata Siperian Kronos Clinphone Group Ltd. Skura Corporation Incorporated Cognos Labware Spotfire Manhattan Concur Steeprock Associates CRF Health Manugistics Synygy, Inc. Cyclone Commerce McKesson HBOC Tactician Documentum MicroStrategy Trillium Software Werum Software & DrugLogic, Inc. Model N, Inc. Systems Emerson Process MS Projects Winthrop Stewart Management EudraVigilance Open Text Corp © 2010 Oracle Corporation – Proprietary and Confidential 32 BankingVN-CustCentricPlatform-100527-LTay-v07
  • 33. Oracle’s Differentiated Value Proposition © 2010 Oracle Corporation – Proprietary and Confidential 33 BankingVN-CustCentricPlatform-100527-LTay-v07
  • 34. Summary • Banking continues to develop and grow rapidly • Banks in Vietnam need to implement a customer centric platform – Direct Banking – Product Innovation – Customer Relationship Management • Oracle’s solutions enable competitive advantage – Only multi-channel sales, service, marketing and transaction solution pre-integrated with core banking – Only open standards core banking solution enabling new products, relationship pricing & consolidation of existing systems – Only service-oriented architecture with a banking-specific data model and process library © 2010 Oracle Corporation – Proprietary and Confidential 34 BankingVN-CustCentricPlatform-100527-LTay-v07
  • 35. © 2010 Oracle Corporation – Proprietary and Confidential 35 BankingVN-CustCentricPlatform-100527-LTay-v07
  • 36. The preceding is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle. © 2010 Oracle Corporation – Proprietary and Confidential 36 BankingVN-CustCentricPlatform-100527-LTay-v07
  • 37. Oracle’s Product Families Applications Middleware Database Server & Storage Systems © 2010 Oracle Corporation – Proprietary and Confidential 37 BankingVN-CustCentricPlatform-100527-LTay-v07
  • 38. Lance Tay Senior Director, Financial Services Global Business Unit lance.tay@oracle.com • Lance Tay is the Senior Director for Banking across Asia Pacific in Oracle’s Financial Services Global Business Unit (FSGBU). • In this role, Lance is responsible for providing deep domain expertise to Oracle’s financial services customers across all of Oracle’s applications and technology products. Lance brings to this role a wealth of experience and valuable insight gained through over fifteen years of experience working with some of the region’s largest financial services companies. His domain expertise includes retail banking, wealth management, and trade finance. Lance has worked with major financial institutions in Australia, New Zealand, South East Asia, India, China, and S. Korea. • Lance is considered a retail banking IT strategy thought leader within the financial services sector and is a regular commentator in leading industry publications. He is often invited to speak at industry seminars about breakthroughs in banking IT strategy. • Prior to joining Oracle, Lance held management positions at The Boston Consulting Group, Accenture, and Cisco Systems. Lance also worked at Fidelity-NIS, and Procter & Gamble. • Lance holds a MBA from Cornell University, and a Bachelor of Science from the Southern University of New Hampshire. He has also lived in Sydney, Bangkok, Mumbai, and Geneva. © 2010 Oracle Corporation – Proprietary and Confidential 38 BankingVN-CustCentricPlatform-100527-LTay-v07
  • 39. © 2010 Oracle Corporation – Proprietary and Confidential 39 BankingVN-CustCentricPlatform-100527-LTay-v07