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Highlights of 4th annual Bancassurance Conference held in Vienna, Austria. An amazing presentation by Kalpesh Desai, CEO Agile Financial - Creating an Agile Bancassurance Platform


  1. 1. Creating an agile BancAssurance platform 4th Annual BancAssurance Conference - Vienna, Austria 23rd April, 2009 Kalpesh Desai CEO, Agile Financial Technologies YOUR LOGO Confidential Page  1
  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 Confidential Page  2
  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 Confidential Page  3
  4. 4. The need Regulatory Banks Regime Extensive branch network, infrastructure & Relaxed regulatory penetration Customer retention Regime challenges – require shift to universal Low cost Dismantling barriers banking model distribution model 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 Unprecedented complex Access to risk/enhanced KYC population ageing products liquidity Insurance High distribution spend increases costs Channel fidelity Economic as GDPs reach Poaching of quality slowdown threshold agents Power concentrated by a few leaders Under-serving of Clients Insurance middle-tier consumers Environment Companies Confidential Page  4
  5. 5. Fragmented Approach By Banks & Insurers Client Branch network Agents/Brokers Insurance Banks sell Banks sell Life Companies Non-Life and Pension sell Investment products products Products Confidential Page  5
  6. 6. Channels Servicing The Landscape Opportunity to introduce BancAssurance Confidential Page  6
  7. 7. Services Expectation Gap •Automate services; evolve technology •Outsource non-core functions High •Identify and structure fees based on “needs-based” approach Service Needs Level Client NEEDS Service requirement GAP Low Profitable person-to-person servicing capability 0 Mass Emerging Mass Affluent Emerging High Net Market Affluent Wealthy Worth Client Segment Confidential Page  7
  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 Confidential Page  8
  9. 9. What clients want How clients desire to be Traditional process of servicing serviced • Brokerage services (product • Global outlook to “asset experts and financial advisors) management” • Investment Management • Research on international services (relationship-based development approach to financial products) • Transparency and visibility on • 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 Confidential Page  9
  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 Confidential Page  10
  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 Confidential Page  11
  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 Agents • Integrated into the • Wide range of Wealth • Insurance agents simple & complex Management sell in banks products Platform Distribution • Licensed advisors Agreements within the bank • Referral model • Higher product • Inadequate training complexity to bank employees • Limited product range Confidential Page  12
  13. 13. The Need Leverage joint branding Product Creation & Product fitment Value to Underwriting and differentiation 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 Confidential Page  13
  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 resource utilization the bank„s backbone Revenue diversification, Low distribution cost, increased Economics increased fee based income, customer penetration and reduce revenue volatility servicing, increased revenues Confidential Page  14
  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 Confidential Page  15
  16. 16. Objective - Winning Strategy For All Customers Receive holistic solution from a one-stop shop Insurance Banks Companies Deepen client New distribution relationships channel Increase fee income Low distribution cost Confidential Page  16
  17. 17. Evolving A Client Centric Approach Confidential Page  17
  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 Confidential Page  18
  19. 19. Integrating BancAssurance in operations Global Banking Private Banking and Markets Global Institutions HNWI Corporate Mass Affluent Commercial Personal Banking banking SME Mass Market Wholesale and Retail Products Confidential Page  19
  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 economic Business led to increased fixed performance and Under- costs of acquiring drivers by customer performance and serving new segments customers. Confidential Page  20
  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 and demanding client base I.T. • Increase competitiveness Business Confidential Page  21
  22. 22. "In a time of accelerating turbulence, the valuation of a company will be strongly affected by how it executes change." Confidential Page  22
  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. Confidential Page  23
  24. 24. Question how do you change a business model and innovate? Confidential Page  24
  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 Confidential Page  25
  26. 26. Bridging the gap • Net worth • Based on Client Lifetime • Client interests, Value frequency of interaction, • Analyze client needs communication and create tailored preferences and offerings financial behavioral • Build additional 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 profiles and behavior • Deliver service through patterns multiple channels and • Engage research and practice models. surveys to question internal assumptions Confidential Page  26
  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 Confidential Page  27
  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 capabilities and components of planning and best-of-breed offering to provide protection investment and a single point of capabilities insurance products contact for clients • Leverage physical • Assess viability of footprint providing a asset • Ensure rigorous management adoption of “know offering to the mass your customer affluent rules” Confidential Page  28
  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 Confidential Page  29
  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. Confidential Page  30
  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 Confidential Page  31
  32. 32. Approach Maintain bank‟s service standards Multi-carrier support Integration with core banking (Customer Information) Ease of premium payments using auto Utilisation of alternate debits, cards, net service points to minimise banking, collection cost agencies Confidential Page  32
  33. 33. Technology as an enabler of business agility Increased o Create value for banking Response and insurance customers Levels o Improve experience for Increased distributors, partners and Revenues Employees o Reduce the sales cycle Cost o Enhance interoperability Efficiency between systems o Shift to holistic integrated systems from islands of Scaleability disparate information o Provide integrated view of Integrated/ customer information Aligned Processes across various products o Improve information-sharing practices Confidential Page  33
  34. 34. Self serve capabilities using the web Bank Employees/ RMs Unified Technology Platform Scalability and Adaptability Agents Insurance Consultants Distribution Channels Corporate/ Brokers Individual Customers Direct Marketing Confidential Page  34
  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 Confidential Page  35
  36. 36. Integrated BancAssurance Framework Multi-Carrier Management Mid/Back Front Office Office Integration Integration Product Performance Portfolio Management Distribution Network Automation Confidential Page  36
  37. 37. Thank you Kalpesh Desai Confidential Page  37
  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 Confidential Page  38
  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 focused on the Financial Services & companies are inculcated into Agile‟s 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 Confidential Page  39
  40. 40. The Constituents Investment Banking Insurance Management Technology Solutions BPO •Treasury & Dealing •General, Life, Medical, •Managed Services •Application processing Activity •Fund Management Broking, Banc Assurance •Security Consulting •Document Verification •Portfolio Management software •App maintenance/ •KYC •Liabilities Management •Takaful compliant development •Banks, AMCs, Insurance •V@R Management •EAI •Strategic Resourcing •ALM •Over 14 years in •Over 20 years in •Over 6 years in business •Over 20 years in business business •140+ employees business •130+ employees •120+ employees •Provide consulting, •2100+ employees •Ranked by IBS •Initial deployments in the development and •40 locations in India Intelligence (UK) as 6th M.E. at Emirates managed services to •India‟s largest domestic Overview largest Treasury solutions Insurance, Al Ain Al Ahlia banks, insurance BPO provider globally •Oldest Oracle partner in companies and asset •Provides transaction •Largest Indian wholesale India (1985) management companies processing services to banking software provider EVERY bank, mutual •Ranked as “Highly fund, and life insurance recommended Company” company in India by THE BANKER, India •Chola-Mitsui •Bombay Stock Exchange •Union National Bank •Mashreq, First Gulf •State Bank of India Key Clients •Bahrain National Holdings •Apollo DKV Bank. ADCB •Deutsche Bank •Barclays •AIG Mutual Fund •Amex, StanChart ` •Edelweiss •BNP Paribas •StanChart Mutual Fund •Barclays •ONIC (Oman) •Edelweiss •Reliance Mutual Fund •AIG` •Astra (Singapore) •Kotak Life & Kotak AMC Confidential Page  40
  41. 41. Delivering Value • Insurance • Managed Services • General, Life, Broking, • Security (BCP/DRP) • Bank Assurance Consulting • Investment Bank/Fund • Strategic Resourcing Houses • Enterprise Application • 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 Confidential Page  41
  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 Confidential Page  42
  43. 43. Our Engagement Process Horizontal Services Vertical Sales Organization Confidential Page  43
  44. 44. Our Presence Central & Eastern Europe Middle East  Russia  UAE (Direct Presence)  Kazakhstan  Oman  Ukraine  Bahrain  Poland  Kingdom of Saudi Arabia  Kuwait  Qatar Africa Asia Pacific  Mauritius (Direct Presence)  India (Direct Presence)  Kenya  Sri Lanka  Tanzania  Indonesia  Malawi  Malaysia  Ethiopia  Phillipines  Nigeria  Singapore (Direct Presence)  Ghana Confidential Page  44
  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) •Mercury FX –Merchant investments and portfolio Management & Retail FX management •Quadryx – OTC •Quadryx - OTC •Fund Managers / Investment Derivatives Derivatives Managers in AMCs, •CALMS – ALM •RiskMark – Value @ Insurance Companies and •Clients Risk Portfolio Management •L&T Finance, Shriram companies •iDeal Wealth Transport, Canfin Homes, Management •FundMetrics –Risk & 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 Bank, Axis Bank, OBC, •Clients Cholamandalam DBS Central Bank of Sri •AVIVA Life Insurance*, Lanka,, PNB Gilts, HDFC Bharti AXA Life*, TATA AIG Bank, ING Vysya Bank, life*, LIC (Debt portfolio), SocGen, Union National Shriram Life, Reliance Life, Bank (UAE) Reliance general, Sahara Life, BNH (Bahrain), Reliance MF, AIG MF, StanChart MF, HDFC MF, SBI MF, , Pru ICICI Confidential Page  45
  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- • Takaful Claims follow up- • Health & TPA’s Accounting • All life and non- life businesses covered • Powerful commission tracking Confidential Page  46
  47. 47. Technology Solutions Solution Framework Infrastructure Services • IntiCraft – A customer self service application for • Data Centers – Design, Security Paradigm, Mutual Funds Implementation, Movement and Support. • Life Insurance Portal – Customer, Agent and • Infrastructure Software Support – Database, Employee Portal – A virtual office for Life Middleware, OS, Security and Messaging Insurance Companies • Disaster Recovery Design and Implementation • 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 Confidential Page  47
  48. 48. Business Enablement Services Verticals Serviced Fund Admin/ Investment Banks NBFCs Insurance Telco's Registrars Banks/Funds Equity & Policy Credit Risk Processes Enabled Fund R & T/ Back Office Forex & Claims Evaluation/ Accounting IPO Processing Accounting Research Admin Processing Receipts/ Data Mining/ Customer Research Accounts Reporting Payments MIS interaction Activities Outsourced Txn Fulfilment Verification Dispatch Reconciliation Processing Services Business Process Application Managed Strategic Provisioning Consulting Development Services Staffing Application Provisioning iDEAL 3rd Party/Client Apps Confidential Page  48
  49. 49. The Company We Keep Banks Investment Management Confidential Page  49
  50. 50. The Company We Keep Insurance Financial Services Confidential Page  50
  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 B(1) SPOKE B(2) SPOKE  ISO 9001:2000 certified BPO A(1) H U SPOKE H H C(2) B H. - 300+ employees in product development and U B B O. U B H deployment A H. U C SPOKE O. B F(2) - 150+ employees in technology support services SPOKE D(1) H U H F SPOKE F(1) U B - 2,100 employees in business enablement services D SPOKE E(1) B SPOKE E E(2) (BPO) SPOKE D(2) SPOKE SPOKE F(3) SPOKE D(3) E(3) - 7,600 resources deployed onsite in banks  UAE - Dubai Internet City - Dubai Outsourcing Zone - Sharjah Airport International Free Zone Confidential Page  51
  52. 52. Confidential Page  52