• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
4239 Misys Bank Fusion Presentation
 

4239 Misys Bank Fusion Presentation

on

  • 6,119 views

 

Statistics

Views

Total Views
6,119
Views on SlideShare
6,113
Embed Views
6

Actions

Likes
1
Downloads
272
Comments
0

3 Embeds 6

http://www.linkedin.com 4
http://www.lmodules.com 1
http://www.slideshare.net 1

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    4239 Misys Bank Fusion Presentation 4239 Misys Bank Fusion Presentation Presentation Transcript

    • Misys BankFusion Analyst & Investor Event Wednesday 3rd March 2010 Deutsche Bank Winchester House 1 Great Winchester Street London, EC2N 2DB experience, solutions, results 1
    • Forward looking statements This communication contains forward looking statements. Those forward looking statements include all statements other than those made, solely with respect to historical facts. Forward looking statements may be identified by words such as believes, expects, anticipates, estimates, projects, intends, should, seeks, future, continue, or the negative of such terms, or other comparable terminology. In addition, statements made in this communication about anticipated financial results, future operational improvement, and the results of the regulatory approvals, are also forward looking statements. Such forward looking statements are subject to numerous risks, uncertainties, assumptions and other factors that are difficult to predict, and could cause actual results to vary, materially, from those expressed in or indicated by them. Factors that could cause actual results to differ materially include but are not limited to legislative, regulatory, political and economic developments, changes in competitive and market forces, further exchange and interest rates, changes in tax rates, and future business combinations, or disposals. Some of the central risks faced by Misys are set out in the company’s most recent annual report. Misys undertakes no obligation to revise or update any forward looking statement or to make any other forward looking statement, whether as a result of new information, future events or otherwise. Misys is not responsible for updating the information contained in this communication beyond the published date, or changes made to this communication by wire services or internet service providers today. experience, solutions, results 2
    • Agenda 1 Exploiting our Unique Position in the Financial Services Market Mike Lawrie, Misys CEO 2 Banking Market Assessment: The challenges of legacy banking systems and routes to modernisation Don Free, Gartner 3 BankFusionTM: A Radically New Way to Solve Operational Challenges Peter Scott, Misys BankFusion Solutions Management 4 BankFusionTM Customer Update Guy Warren, EVP, Misys Solutions for Banking Including: Why Actinver chose Misys Alejandro Ramos, Actinver CTO Refreshment Break 5 BankFusionTM Go to Market strategy Peter Scott, Misys BankFusion Solutions Management 6 Partnering with Misys Rashik Parmar, IBM and Stuart Drew, HCL 7 How BankFusionTM will Change Misys’ Financial and Business Model Stephen Wilson, Misys VP Group Finance 8 Summary and Question & Answer Session Mike Lawrie, Misys CEO Drinks and Canapés experience, solutions, results 3
    • Key messages We have a strong installed base - our business challenge is to leverage this base The first new core banking solution for Misys in over 7 years. BankFusion allows Misys to compete in the Unix space opening up 70% of the new business market Allows us to upgrade our installed base over time whilst minimising risk to our customers Building an eco-system of partners to help take our proposition and capability to market Over time, BankFusion will fundamentally change the financial characteristics of Misys’ Banking business experience, solutions, results 4
    • Leveraging the installed base Installed base of Significant cross-sell 1,200 customers opportunity Application Customers Core Banking 510 Treasury and Capital Markets 370 Trade Services 120 Transaction Confirmation Matching 380 Other 150 1,200 customers Multiple products (300) 120 countries ALL 1,230 Tier 4 banks right up to tier 1 BankFusion creates new initial licence, professional services and maintenance events experience, solutions, results 5
    • Responding to changing customer needs New World BankFusion enables banks to: Capital preservation & cost Increase flexibility, adding new reduction functions and components while lowering operating costs Co-ordinated online, mobile, call centre, branch Remove the risk of moving to new systems through our renovation approach Increased regulation Rapidly reconfigure business processes Ability to change Business Processes quickly Quickly respond to changing Fast automation of new Banking market conditions and products lowering risk opportunities Dependable Affordable Scalable experience, solutions, results 6
    • BankFusion - Transforming the Misys Banking business • Leveraging and deepening our relationships with customers to increase the value we deliver • Catapulting Misys into a technology leadership position • Dramatically expanding our reach in new markets through our partnership network Over time, BankFusion will transform Misys Banking into an organic growth business experience, solutions, results 7
    • 2 The Industry Analyst View The challenges of legacy banking systems and routes to modernisation Don Free, Research Director experience, solutions, results 8
    • 1. Business: Through 2010, only 30% of financial institutions and business models will be restructured sufficiently to take advantage of a return to growth. 2. Technology: Through 2010, legacy technology landmines and “run the bank” responses will keep cost/income efficiency ratios above 50% © 2008 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. <docname>_<date>_<author> 9
    • Social Fabric Fractures • Fracturing social fabric - aging, urban, exclusion/inclusion & personal identity. Traditional processes broken down • Who is the customer - Demographic shifts & behaviors remain poorly understood and mass customization persists • Personalization is cost of doing business, but product centricity still dominates bank mindset • Micro lending moves from developing- to-developed world © 2008 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. <docname>_<date>_<author> 10
    • Innovation Should Not be an Afterthought • Risk aversion strategies dominate market • Innovation attempts remain fragmented - strategy elusive • Many banks go into hibernation and don’t build resources/capabilities to meet future recovery requirements • What innovation occurs remains focused on products not experiences • Emerging markets lead innovation initiatives © 2008 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. <docname>_<date>_<author> 11
    • The Neighborhood Is Changing Long-Term Threats Most-Immediate Threat Higher Telcos Scale Global Mega-Banks Utilities Scale of Competitor Retail Threat to Digital Native Ownership Lower Scale Non-Traditional Traditional © 2008 Gartner, Inc. and/or its affiliates. All rights reserved. Type of Banking Competitor Gartner is a registered trademark of Gartner, Inc. or its affiliates. <docname>_<date>_<author> 12
    • Core Banking Renewal Drivers Customer Process Information System Business Change Uncertainty IT Functional System Gaps Scalability Product Operational Innovation Efficiency Slow Time Rigid to Market Architecture Long Regulatory Development Change Customer Cycles Service © 2008 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. <docname>_<date>_<author> 13
    • Unleashing the Power of the Core Core Applications: The End of Core Applications: 2010 2015 Specialty Current Micro Savings Loans Accounts PNC Lending Insurance Neg. Commercial Credit Amort. Lending Card Lending Lending Consumer Credit Services Mortgage Lending Cards Equity Corporate Customer Banking Lending Services Life and Fixed Term Deposit Pensions Services © 2008 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. <docname>_<date>_<author> 14
    • The Back Office in Transition: Reform or Transform? Reformative Strategy Longer-term, incremental program to revise back-office technologies Transformative Strategy Short-term, all-encompassing program to revise back-office technologies Reformative Transformative • slower pace of renewal reduces • condensed timeframe results in risk of program failure faster time to market Benefits • reduced impact on near-term • less retrofit due to fewer parallel business initiatives short-term business initiatives • less competitive in medium term • resource intensive with higher risk • higher risk of long-term market Drawbacks of burnout loss • limits near-term market opportunity © 2008 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. <docname>_<date>_<author> 15
    • 3 BankFusion: a new way to run a bank BankFusion brings speed, simplicity and flexibility to banking processes Peter Scott BankFusion Solutions Management experience, solutions, results 16
    • What makes BankFusion unique? Applications Universal Banking Shared Modules • Fully process-driven core banking solution gives high flexibility • BankFusion Workbench graphical design time Components Such as: accelerates development at a • Interest Accruals lower cost • Charges • Amortisation Rules • Use of Components makes adapting business process to desired workflow BankFusion BankFusion BankFusion simple Workbench Platform Server • BankFusion Server automated code Design Run Time Time generation saves time and expensive IT resources experience, solutions, results 17
    • BankFusion builds banking business processes • Over 30 years of banking domain knowledge • Product Composer assembles banking products from a library of building components • Takes process models and creates business applications from them Using building block components accelerates development experience, solutions, results 18
    • Visual design environment - Product Composer • Financial components and activity steps assembled into business workflow • Can be used by Business Analysts as well as developers • Freedom to focus on business content Cash Deposit Transaction Capture New business requirements rapidly deployed experience, solutions, results 19
    • BankFusion solves banks’ challenges COO CIO CEO Optimise customer Raise flexibility Increase sales and relationships grow profitably Challenges Reduce expenses, Future proof the Differentiated streamline processes system services based on single customer view Manage risk Easier localisation Fast response to market opportunities BankFusion has unique attributes to address these issues Process Driven Automated Code Product Application Generator Composer experience, solutions, results 20
    • Industry Analysts rate BankFusion technology “Business process-enabled core systems unlock banks’ potential to drive more aggressive and sustainable growth.” “BankFusion provides updates that are error free… a true cost of ownership advantage.” “Institutions are no longer constrained by arcane, restrictive, time-consuming and horribly complex practices… far greater degree of business control and ownership.” “… has significant potential as a truly modern banking system… more effective than existing monolithic banking systems.” “… highest score on depth of integration.” experience, solutions, results 21
    • How BankFusion solves operational problems Scenario demonstration Using the Product Composer, we show how BankFusion can be used to rapidly respond to changing business requirements experience, solutions, results 22
    • 4 strategic segments of BankFusion strategy Internal Universal Renovation Banking BankFusion Platform External Industry Renovation Platform experience, solutions, results 23
    • BankFusion Universal Banking Security Current Accounts BankFusion Management Development Reporting Workbench Deposits Pub li sh Lending Compliance BankFusion Runtime Multi-Currency Environment Payments Branch Operations Treasury Limits Pricing experience, solutions, results 24
    • 4 strategic markets for BankFusion Internal Universal Renovation Banking BankFusion Platform External Industry Renovation Platform experience, solutions, results 25
    • Internal Renovation and Shared Module approach The Present The Future BankFusion Midas Midas Loan Origination BankFusion Equation Equation Branch Solution Bankmaster Collateral Management Universal Banking Charges Dedicated Developments Shared Modules experience, solutions, results 26
    • 4 strategic markets for BankFusion Internal Universal Renovation Banking BankFusion Platform External Industry Renovation Platform experience, solutions, results 27
    • BankFusion as External Renovation technology Shared Modules such as Loan Origination, Customer Acquisition, Branch Solution Common Components such as Interest Accrual, FX calculation rules, working days calculator BankFusion Platform Design-time and Run-time Legacy Core Banking Systems In-house developed Moribund 3rd party solutions Products acquired but not evolving experience, solutions, results 28
    • 4 strategic markets for BankFusion Internal Universal Renovation Banking BankFusion Platform External Industry Renovation Platform experience, solutions, results 29
    • BankFusion - Disruptive industry platform • BankFusion adoption as an industry standard for financial industry developers • Leveraging Misys’ leading market share in the banking applications market • Misys opens up its community to 3rd party developers and showcases their solutions • Option to ‘white-label’ core banking for regional developers to add and support compelling local features experience, solutions, results 30
    • 4 BankFusion customer update BankFusion customer update Guy Warren EVP, Misys Solutions for Banking experience, solutions, results 31
    • Customer proof points Upgrades New system Renovation TIME Bank Internal Universal Renovation Banking BankFusion Platform External Industry Renovation Platform experience, solutions, results 32
    • Bankmaster customers upgrading to BankFusion Universal Banking Internal Universal Renovation Banking BankFusion Platform Profile • Fastest-growing Bank in Tanzania Industry External • 700,000+ accounts Renovation Platform Requirements • Bankmaster replacement • Ease of migration • Latest technology to underpin business • Improve customer service Status • User Acceptance Testing completed with positive performance • Go-live scheduled March experience, solutions, results 33
    • Equation customers selecting BankFusion Equation Internal Renovation Universal Banking Profile BankFusion Platform • Long-standing Equation customer • Almost 900 branches External Industry Platform Renovation Requirements • Expansion across domestic and international network • Best technology to support growth ambitions • Agility and innovation to maintain competitive edge Status • Currently implementing in Head Office • Scheduled roll-out to international branch network throughout 2010 experience, solutions, results 34
    • 4 BankFusion customer update Why Actinver Chose BankFusion Alejandro Ramos, CTO experience, solutions, results 35
    • Who is Actinver? • One of the fastest growing financial services groups in Mexico • Expanding from Brokerage and Fund Management to Banking • 1,500 employees • 72 Branches • 200,000 Customers • Daily transactions: 25,000 • Total assets: MXN $150 billion experience, solutions, results 36
    • What were we looking for? • Deposits, Loans, Channels - Branch through to Back Office • A customer-centric solution to improve the customer experience • Customisation, not just changing parameter settings • Most technically advanced Universal Banking solution on the market • A platform on which to base our future growth • A long-term partnership with the vendor experience, solutions, results 37
    • Why Actinver chose Misys • Revolutionary process-oriented approach • Capability to meet complex regulatory reporting requirements • Flexibility of the Workbench • Integration approach • Delivery capability, professional services and a proven track record experience, solutions, results 38
    • 5 BankFusion: a new way to run a bank We will bring to market a range of BankFusion applications & tools to modernise banking systems Peter Scott BankFusion Solutions Management experience, solutions, results 39
    • 4 strategic markets for BankFusion Internal Universal Renovation Banking BankFusion Platform External Industry Renovation Platform experience, solutions, results 40
    • BankFusion Universal Banking 2009 onwards Who will we sell it to? EXISTING CUSTOMERS NEW CUSTOMERS Internal • Bankmaster customers • Domestic & Regional retail Universal Banking Renovation • With growing business banks replacing core systems aspirations • Tiers 3 & 4 • With functional and account • Legacy systems, stretched by BankFusion volume limitations. competitive pressure and Platform regulatory burdens External • New ‘start up’ banks Industry Renovation Platform Why will we win? • Low risk ‘upgrade’ for existing Bankmaster customers • Next Generation build and design • Lower Total Cost of Ownership • Excellent business agility experience, solutions, results 41
    • Internal and External Renovation 2010 onwards Who will we sell it to? EXISTING CUSTOMERS NEW CUSTOMERS Internal • Equation and Midas users • Monolithic legacy Universal Renovation • Want to introduce more • Tiers 2 & 3 Banking flexible business processes • Require functional evolution • Receptive to Misys new • Need better process efficiency module Roadmap BankFusion Platform • ‘Rip and Replace’ too risky Industry Platform External Renovation Why will we win? 2011 onwards • Low risk alternative to ‘Rip and Replace’ • Raises the return on existing investments • Unique technology and business proposition • Business Roadmap from Shared Modules experience, solutions, results 42
    • Extending the BankFusion platform Internal NEW CUSTOMERS Universal Renovation Banking • Application partners build software BankFusion using BankFusion technology Platform • Misys vets and showcases 3rd party External applications Industry Renovation • Local features from 3rd parties in ‘white Platform labelled’ core banking offer • Based on success in other segments and unique proposition 2013 onwards BankFusion will have a disruptive market impact when used by 3rd parties experience, solutions, results 43
    • BankFusion Services - enhancing value to our customers Business Process design Consultative engagement Deeper • Focus on business customer workflow relationships • Best Practice in • Greater role in business transformation Banking processes • Misys Global Centre • Design as well as • Continuing business implementation of Excellence partnership • Misys / Partner led • Early stage contribution • Increased cross-sell to solution definition and up-sell over time • Greater share of wallet experience, solutions, results 44
    • BankFusion leveraging and expanding our partner network Depth Scale Complementary Solution System Solutions Partner Integrators Influencer/ Consultant Technology Reach Partner Delivery Partner Agent experience, solutions, results 45
    • 6 Partnering with Misys Partnering with Misys Rashik Parmar Stuart Drew CTO, IBM Distinguished Engineer SVP Financial Services Member, IBM Academy of Technology Europe experience, solutions, results 46
    • 7 Strategic and financial impact What is the value of this opportunity to Misys? Stephen Wilson, VP Group Finance experience, solutions, results 47
    • Value-based pricing model • Pricing based on components and Applications Universal Banking functions selected by customer • Prices scaled according to volumes, e.g. accounts, user seats Modules • Multiple ILF events per customer over time – Platform workbench – Modules – Applications • Incremental Recurring Licence Platform Fee (RLF) experience, solutions, results 48
    • Revenue Model assumptions: 5-year horizon Illustrative assumptions 1 Segment ILF event Market Total ILF Services : RLF: ILF 2 Tier Deals ILF ratio ratio Universal Bankmaster replacements 3,4 100-110 £200-600K 1.0-1.5 1.8-2.4 Banking & Open Market Internal Workbench Licences & 2,3 120-130 £200-500K 1.0-1.2 1.8-2.4 Renovation Application Modules for Equation & Midas customers External Application modules & 2 20-25 £500K-£1m 1.3-1.7 1.8-2.4 rd Renovation Developer Licences for 3 party applications 1 ILF reflects typical ranges for 10-year term licenses sold to banks in the target tiers shown. In practice, pricing will vary more widely towards the extremes of our target markets and also according to volume-based price grids 2 Reflects the RLF generated over the life of a typical 10-year licence contract arising from an ILF deal, under a range of RLF rates, from basic service up to premium service experience, solutions, results 49
    • Progressive adoption of BankFusion Internal Renovation Cumulative BankFusion adoption Customers Migration of Equation customers from 160 2010/11 and Midas customers from 2011/12 Internal 140 Renovation 120 Universal Banking 100 Universal Banking Early impetus from migrating Bankmaster 80 customers and selective competitive wins 60 40 External 20 Renovation External Renovation 0 Platform sales to 3rd party application 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 customers materially from 2012/13 250 adopters over the next 5 years experience, solutions, results 50
    • Potential incremental revenue from the BankFusion strategy • Initial Licence Fee (ILF) growth as Incremental BankFusion revenue over 5 years Based on illustrative assumptions adoption progresses £m £250m • Growing Professional Services 250 29 Recurring Licences multiplier as more complex projects are tackled over time 200 £183m Professional • Recurring Licence Fees (RLF) add 150 81 113 Services progressively to existing base 100 • Normal margin framework but re-use 44 of software components offers Initial 50 109 upside potential over time Licences 58 0 Banking Division BankFusion 2008/9 2010/11 - 2014/15 Potential to add 6-8% per year compound to the revenue base over 5 years experience, solutions, results 51
    • BankFusion brings operational benefits to Misys Higher returns Removal of on investment product silos 8 1 Re-use of business & Fosters creativity in technical resources product development 7 2 MISYS BENEFIT Technology refresh: Simpler 6 3 business agility & new cross-sell functionality 5 4 Process-based client Accelerating consultation functional roadmap experience, solutions, results 52
    • 7 Strategic and financial impact How will BankFusion change Misys? Mike Lawrie, CEO experience, solutions, results 53
    • Key messages  We have a strong installed base - our business challenge is to leverage this base  The first new core banking solution for Misys in over 7 years. BankFusion allows Misys to compete in the Unix space opening up 70% of the new business market  Allows us to upgrade our installed base over time whilst minimising risk to our customers  Building an eco-system of partners to help take our proposition and capability to market  experience, solutions, results Over time, BankFusion will fundamentally change the financial characteristics of Misys’ Banking business 54
    • BankFusion takes Misys into the Leadership phase Get Fit Win More Lead 1 - 2 years 2 - 3 Years 3 - 5 Years Complete BankFusion  TIME Bank Technology Leadership Sales Leadership Services Leadership experience, solutions, results 55
    • experience, solutions, results experience, solutions, results 56