UBS is present all over the world offering services through it 4 main divisions: Wealth Management & Swiss Bank Wealth Managament Americas UBS Global Asset Management, and UBS Investment Bank
UBS started up in Italy in 1996 and between 2002 and today has grown from a head count of around 120 to a headcount of 435 and from 5 branches to 9. IB has two branches, in Milan and Rome
The project took 7 months to complete from starting analysis to implementation
The problem we had to face was the time taken to compete the account opening process – 13 days! (vedi battuta) As well as achieving our initial objectives, we also: Greatly reduced the error rate, and Made immediate and long term savings
In 2004 UBS Italy migrated to a new core banking system, during which an extensive review of processes and procedures was carried out. Special attention was given to manual processes, particularly those which would feed the core system. During the course of this review, detailed workflows were prepared and analysed, and various areas for improvement were identified, especially in relation to managing increased volumes.
In particular the account opening and document management processes were analysed with a view to reducing manual activity, and consequently the risk of manual error, to reducing the time taken to complete the process, and to providing an optical archive, both as back-up and to provide easy viewing and retrieval. The account opening process at that time involved double input of data in different applications Paper documentation meant lengthy approval processes, the risk of loss or damage to the originals, bulky physical archives for paper copies and a slow retrieval process for originals. Given the number of areas involved (Operations, Legal, Compliance, Market) it was very difficult to follow the progress of the documentation and know where it was at any given time.
The high error rate in the account opening process related mainly to data entry mistakes or inconsistencies This causes delays as they have to be returned to the Front office and completed / corrected. The errors also had an effect in regulatory reporting, with rejected files having to be corrected manually. Errors were being identified and corrected at the end of the process rather than the process being corrected at the beginning (oppure &quot;when and where they were made&quot;). Streamlining and automating the process so that a single system is used for data entry greatly reduced the number of errors
The slide shows the situation as it was with the KPIs we expected to achieve By reviewing the workflows and process again 6 months after the close of the project we were able to improve even further on these KPIs
After a selection process, the companies we chose to help us define the new workflows and develop a tool to manage them were Docflow and Metastorm and the tool we developed in-house with their assistance is called the &quot;Validation Tool&quot;. With the new structure All the customer data are requested, checked and managed The solution shows all the ongoing business processes for a given customer All the necessary documents are automatically generated, and prefilled with online data. All the documents are then merged into a single, transferable, easy to manage PDF. A tracking pane shows the status of all the tasks performed on the Account and who is responsible for the next action The due diligence process collects and manages all the data and documents related to a customer “trustworthiness” Management of internally collected information Management of information collected from third party data banks
which provides: a single point of data entry to be carried out by a single resource (front office), integration with the core application data base and front end tools automated approval processes (due diligence, special economic conditions) contract and related documentation scanned, and automatically indexed for both electronic and physical archiving, thus improving retrieval times. full integration with the Optical Storage tool for back-up, display and printing
Process issues addressed: Data entry is performed only once Data entry is performed only by WMIS Access to Olympic is only performed trough Web Interface WMIS to take charge of alignment between copy of the contract signed and contract confirmation Contract documents are to be printed only when mandatory data are filled Data consistency checks in Olympic are fully automated Approval processes (e.g. Special economic conditions, Due Diligence) are managed trough specific workflows The new system has allowed us to: Reduce account opening time increase customer satisfaction improve the overall quality of data reduce deficiencies ( e.g. data entry, mistakes in documents) improve the quality of regulatory reporting Automatically monitor the status of the documents using electronic check-lists reduce the number of resources required by 3 FTE, despite increased volumes ( from 9,800 accounts in 2005 to 14,00 accounts in 2010) The same application was then also used for account closing, and , subsequently, also for other processes such as credit cards, special economic conditions, credit etc.
Our objectives were to reduce risk of loss and damage Speed up retrieval and Reduce storage space required for back-up copies The automatic feeding of the scanners means that high volumes can be managed and stored Originals can be archived and electronic files distributed to other departments, if necessary The automatic indexing of documents eliminates manual error and links the documents to the account number of the client The project took 3 months to complete, including the scanning of the historical archives.
The index bar code immediately identifies the document.
Total costs of the project, all inclusive were almost set-off by the savings vs. not doing anything and the immediate savings in HC. There will also be long term savings despite volume growth
Osvaldo Bordoni UBS Italia
O. Bordoni Docflow- Gartner BPM Event May 12, 2011 Milano UBS (Italia) S.p.A. Dimezzare i tempi di apertura conti bancari e aumentare la soddisfazione del Cliente: l’esperienza di UBS Italia
The UBS Group Shanghai Guangzhou Over 100 Wealth Management offices Svizzera Over 70 Wealth Management offices in the world Over 20 Representative offices of UBS SA Città del Messico Buenos Aires Santiago del Cile Città di Panama Montevideo Nassau Vancouver Calgary Montreal Toronto Tokio Sydney Melbourne Mumbai Johannesburg Mosca Kiev Hong Kong Manama Cairo Tel Aviv Beirut Istanbul : Lussemburgo Svizzera Doha Atene Vienna Stoccolma Pechino Praga Taipei Osaka Nagoya Brisbane Taichung Kaohsiung Amsterdam Riyadh Varsavia Dubai Budapest <ul><li>UBS is present in over 50 countries throughout the world with 65,000 employees and offers a variety of services, focused on wealth management, through its 4 main divisions: </li></ul><ul><ul><li>Wealth Management & Swiss Bank </li></ul></ul><ul><ul><li>Wealth Management Americas (not shown on the map) </li></ul></ul><ul><ul><li>UBS Global Asset Management </li></ul></ul><ul><ul><li>UBS Investment Bank </li></ul></ul><ul><li>The map shows the distribution of the Wealth Management Divisions </li></ul>Bangkok Giacarta Kuala Lumpur Singapore Abu Dhabi Salisburgo Monte Carlo Nicosia Bologna Brescia Firenze Milano Modena Padova Roma Torino Treviso Barcellona Bilbao Coruna Madrid Siviglia Valencia Saragozza Bordeaux Lione Marsiglia Nantes Parigi Strasburgo Birmingham Edinburgo Londra Manchester Newcastle Jersey Bruxelles Anversa Ghent Bad Homburg Berlino Bielefeld Brema Colonia Dortmund Duesseldorf Essen Francoforte Amburgo Monaco Norimberga Rosenheim Stoccarda Wiesbaden For purely illustrative purposes. Punta del Este
UBS in Italy UBS (Italia) S.p.A. was established in 1996 and is an Italian bank, fully owned by UBS AG. Our main activity is Wealth Management and we now have 9 branches in Italy Milano Torino Brescia Padova Treviso Bologna Modena Firenze Roma UBS Italia SIM S.p.A. UBS Corporate Finance Italia S.p.A. UBS Global Asset Management (Italia) S.p.A. UBS Alternative Investment (Italia) Sgr UBS Global Asset Management (Italia) Sgr Wealth Management Investment Bank Global Asset Management UBS (Italia) S.p.A. UBS Fiduciaria S.p.A. <ul><li>UBS has recreated its own global platform in Italy offering a full range of services through these three divisions </li></ul>
Executive Summary <ul><li>Existing Situation </li></ul><ul><ul><ul><li>The Account Opening process took 13 days to complete </li></ul></ul></ul><ul><li>Objective </li></ul><ul><ul><ul><li>Reduce timeframe for account opening and set up optical archiving, </li></ul></ul></ul><ul><li>Action </li></ul><ul><ul><ul><li>Develop an application based on Metastorm's BPM </li></ul></ul></ul><ul><li>Results </li></ul><ul><ul><ul><li>A 55% reduction in the account opening timeframe </li></ul></ul></ul><ul><ul><ul><li>A huge reduction in error rate </li></ul></ul></ul><ul><ul><ul><li>Optical Archiving in place </li></ul></ul></ul><ul><ul><ul><li>Immediate and long term savings </li></ul></ul></ul>
Account Opening Project- Approach & Partners Master Plan As-Is Assessment To-Be Model KPIs Definition Costs/benefits Analysis Execution Phase 1 Phase 2 Program Management & Project Office Project partners: <ul><li>Docflow is the system integrator with the expertise to support UBS in developing the Metastorm BPM </li></ul><ul><li>Metastorm offers market-leading software for enterprise and business architecture (EA), business process analysis (BPA) and business process management (BPM). </li></ul>
Overview – Account opening time-frame as it was <ul><li>From contract signing to delivery of acceptance document to customer – 12,8 days </li></ul><ul><li>From receipt of contract by Operations to archiving of documents – 8,5 days </li></ul><ul><li>From delivery of contract document to Operations to account activation – 1,8 days </li></ul>Client sign off Documentation received by Ops Account opened Acceptance sent to client Documentation archived 8,5 days 1,8 days 12,8 days 6 days 6,8 days Operations Front office Client Area of Analysis
Overview of error rate <ul><li>High number of data and document inconsistencies identified (about 90% of documents received by Operations are not correct), which cause process loops </li></ul><ul><li>Contract mistakes recorded by Operations </li></ul>Contracts with data entry mistakes and document mistakes 56% (143) 35% (88) Contract without Contract without mistakes mistakes Contracts with data entry mistakes 9% 9% (22) (22)
KPI – Target values account opening Key Performace Indicator Current Value (Average value) Account Opening Time - Client Advisor (CA) Perspective Account Opening Time - Client Perspective 1.8 days 12.8 days 1 day Target Value 10 days - 44% - 22% % Reduction Account Opening Time – Time to Acceptance 6.8 days 4 days - 41% Account Opening - Mistakes not detected by Operations Account Opening - Average number of deficiencies per contract sent to Ops Account Opening - Time needed to correct mistakes 17 9 days Account Opening - Time spent per contract 6.5 hours 1.6 hours Above “Satisfactory” 8 5.4 days - 53% - 40% - 75% Below “Satisfactory”
Account opening – New structure Data consistency control Data checked during entry and creates system static data Document printing/Layout Composition Standard template filled with previously entered client data Support to data & document content consistency control Electronic reports check data entered and document produced Workflow and Business Process Monitoring Status monitored and authorisation process activated by specific triggers Support document completion Electronic Check to check the status of the documents The new structure features the following macro-functionalities supporting the new processes CRM Tool Core Banking System Optical Storage Tool
Validation Tool <ul><li>What is the Validation Tool and how does it work ? </li></ul><ul><ul><li>It is a software layer that works between the CRM Tool and the Core Banking System. </li></ul></ul><ul><ul><li>Eliminates the Core System for static data entry </li></ul></ul><ul><ul><li>Electronic checklists to ensure accuracy and completeness </li></ul></ul><ul><ul><li>Automated workflows to synchronize the authorization request process. </li></ul></ul><ul><ul><li>Front office enter data in CRM tool and Ops users and Front office support use the Validation Tool to manage static data. </li></ul></ul>CRM Tool Core Banking System Optical Storage Tool
New Account Opening process <ul><ul><li>Note: the flow shown is only a simplified example of the real process </li></ul></ul>The solution manages all the tasks related to customer account in a process oriented way, delivering the correct information to the correct user at the correct time asking to them perform the required operation, all using a single tool The workflow guides the following processes: New Account opening, Due Diligence and Portfolio Management,
New Account Opening <ul><li>All the customer data are requested, checked and managed </li></ul><ul><li>The solution shows all the ongoing business processes for a given customer </li></ul><ul><li>All the necessary documents are automatically generated, and prefilled with online data. All the documents are then merged into a single, transferable, easy to manage PDF. </li></ul><ul><li>A tracking pane shows the status of all the tasks performed on the Account and who is responsible for the next action </li></ul>
Due Diligence <ul><li>The due diligence process collects and manages all the data and documents related to a customer “trustworthiness” </li></ul><ul><li>Management of internally collected information </li></ul><ul><li>Management of information collected from third party data banks </li></ul>
New Account Opening (Portfolio management) <ul><li>The new account is about to be created. The account type is entered and all the customer's records are linked to the account. </li></ul><ul><li>Economic conditions are also managed. </li></ul><ul><li>Review Check-List. An automatically generated Check List guides the operator to make all the relevant checks. </li></ul>
Optical Archiving project <ul><li>Process Issues </li></ul><ul><li>Isolated manual processes </li></ul><ul><li>Paper documentation </li></ul><ul><li>Solutions provided by new processes </li></ul><ul><li>Automated scanning and electronic archiving of documentation </li></ul><ul><li>Automatic indexing links documentation to the account number using barcode </li></ul>10 Optical Storage Tool 1. Scanning 2. Indexing 3. Interfacing
Optical Archiving – Barcode recognition <ul><li>A barcode integrated in a document provides different benefits, such as: </li></ul><ul><ul><li>Automatic contract recognition (by document ID) </li></ul></ul><ul><ul><li>Automatic version of contract recognition (by document version ID) </li></ul></ul><ul><ul><li>Automatic recognition of document (by progressive ID) </li></ul></ul><ul><li>The following is an example of a barcode: </li></ul><ul><li>3012011234567 </li></ul><ul><ul><ul><li>30 : UBS Italy 2 digit ID Code </li></ul></ul></ul><ul><ul><ul><li>12 : Doc type 2 digit ID Code </li></ul></ul></ul><ul><ul><ul><li>01 : Doc version 2 digit ID Code </li></ul></ul></ul><ul><ul><ul><li>1234567 : Progressive 7 digit ID Code </li></ul></ul></ul>UCC128 CODE128