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Banking Transformation


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Banking Transformation - Bridging the People, Process and Content Divide

How would you like to transact with your bank in 2020? On vacation – relaxing on a beach, from your home or on the go? Most of us would prefer all three where time, place and medium don’t matter. Today, Banks are adapting to changing consumer behavior and are focusing on building new channels for interacting and transacting with them. The millennials in particular prefer banking anywhere, anytime and is therefore demanding innovative methods for availing banking services.

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Banking Transformation

  1. 1. Banking TransformationBridging the People, Process and Content Divide
  2. 2. Driving Transformation ThroughProcess AutomationBanks today need systems beyond redundant activities like manual Enhanced customer experience can becore banking. For improving hand–offs, needless paper movement, achieved by ensuring communicationsproductivity, centralization of back repetition of checks, reviews and more via customer preferred channels andoffices is an imperative, where non- system inputs than necessary. The key by enabling them to get access to thecustomer facing activities can be processes which banks look forward to bank via multiple channels like mail,moved from branch to central back automating will include Account fax, sms, phone, web portal, This ensures that most of the Opening, Loan Centralization and Customer on-boarding experience canstaff at branches is customer–facing Trade Finance. be improved by leveraging alternativeand performs value added services. channels of communication. Process automation leads to greaterUsing BPM & ECM, banks can build visibility and transparency across the Another important benefit offered bycentralized back offices and improve organization. This can be achieved BPM/ECM, is the ability to meetoverall customer experience. through real time dashboards; thus regulatory compliance and adhere toIn order to tap the benefits of enabling the enterprise to gain insight the SOPs, thus enforcing consistency.centralization, process automation is a into the work-in-progress, user or BPM enables large organizations tomust. Digitization will help transform process performance and KPIs. outsource selectively, whilemanual and paper-based processes Through measurement and tracking, maintaining visibility into thoseacross branches / head Offices into BPM can help identify the gaps and outsourced transactions.electronic processes. This will remove bottlenecks in the processeliminate all error- prone and thus optimizing process performance. Enhanced Customer Experience Centralized Back-Office Compliance & Standardization Digitization & Process Automation Outsource Selectively Visibility & Measurement Driving Transformation through Process Automation SOLUTIONS FOR BUSINESS PROCESS & CONTENT MANAGEMENT
  3. 3. Newgen Banking Solutions UniverseNewgens highly configurable, flexible Corporate and Commercial Banking, request management solutions (forand scalable products along with its Payment and Settlement, Lending Contact Centers) and customerdomain experience in banking have led &Mortgage and Retail processes. At the communication management solutionsto readymade point solutions being base of these processes are the solution are available in Newgens kitty. Alloffered to banks. These solutions are enablers provided by Newgen like these solutions for Banking ensureworking in numerous large scale Global Business Process Management, Content almost 100% compliance to theBanks and are available to clients as Management and Rules Management regulatory standards, streamlinedsoft template processes and off the etc. which are integrated with the processes enabling high productivityshelf products. existing systems in a bank like Core and reduced costs. Also, the customer Banking System, CRM, and ERP etc. communications management solutionThe below diagram clearly ensures standardization, customerencompasses the spectrum of As an assembly line of the processes, it experience and revenue maximization.Newgens solution for banking. The is possible to have a 360 degree viewfollowing figure resembles an assembly with real time monitoring usingline which has multiple point solutions Newgens Organizational Dashboard.provided by Newgen for functions like For interacting with the end customers, d Or oar REAL TIME ga hb ni s VISIBILITY za Da tio l na na 99% Compliance io lD t iza as hb n Lower TAT ga oa Or rd Standardizing of Customer Exp. Cross Selling CRM for Contact Centers Customer Communication CORPORATECOMMERCIAL PAYMENT & SETTLEMENT LENDING & MORTGAGE Letter of Credit Issuance Image Based Clearing Loan Origination (Inward/Outward) Know Your Customer & Commercial Loans Loan Servicing Customer Due Diligence. Funds Transfer Bank Guarantee Loan Underwriting Account Maintenance Post Dated Cheques Accounts Payable Forex Collections & Dispute Term Deposit Service Automated Cheque ...... House ...... ...... ...... Process Management Content Management Product Configurations User & Rights Management Rules Management COMMON INFRASTRUCTURE CRM ERP Internet Banking Legacy Systems Core Banking Banking Industry Framework SOLUTIONS FOR BUSINESS PROCESS & CONTENT MANAGEMENT
  4. 4. Centralized Loan ProcessingEnabling complete operational visibility & controlThe loan applications are received at the original documents at the branch it is automatically sent to the branchremote branches by the customer itself. for resolution. The local database atwalking-in or by direct sales agents. remote site is also updated with status These documents are then transmittedThese documents are then scanned, and transaction data for all live to the central processing centre whereregistered and minimal data entry is transactions. On authorization, the authorization and approvaldone. Additional supporting appropriate action is taken and loan is processing takes place. The data entry,documents such as proof of identity, disbursed to the customer along with risk assessment and loan sanction isproof of residence, etc. are also Collateral Contract. done by the authorizer based on thereceived and are scanned against the The client core application which eligibility guidelines. The process canenrollment number of the original keeps information about customers be integrated with third partyapplication. The document images are and their transactions can be updated verification agencies for customerauthorized by comparing them against with the Loan Details. credit checks. If an exception is raised,Success Stories ŸProcess was time consuming ŸTurn Around Time Reduced by 50% ŸSystems running in silos ŸIntegration with core system ŸManual processing leading to low productivity ŸEmployee Productivity improved by 150% ŸHigh operating costs ŸOperating Costs reduced by 30%Loan Origination Loan Originating Loan Takeover Mgmt Collection & Disputes ŸCurrent Economic Environment Loan Underwriting Image Enablement of LOS Reconciliation Module ŸOperational Efficiency Loan Servicing Customer Query Resolution ŸRisk Management Loans Statements Archival ŸProtection from predatory Early Warning System Loans Statement consolidation lending SOLUTIONS FOR BUSINESS PROCESS & CONTENT MANAGEMENT
  5. 5. Loan Process Implementation fora leading Bulgarian bankChallenges Processes Automated BenefitsŸ Time consuming processing of ŸContract approval and facility • Integration with the core banking loan documents input systemŸ APS the core banking system was ŸInitial and Further Disbursement • Initiating work from the core running separately Credit Amendments banking systemŸ Integration required for proper ŸFurther Administration, • Contract generation functioning Repayment • Master management in APS and ŸProblem Loans, Liquidation and reference by OmniFlowTM Archiving processes • Automation of 250 branches • Implementation in Bulgarian to enable the local language support
  6. 6. Customer On-Boarding (Account Opening)Account opening process can be will be scanned and routed for branch office for resolution. Automaticinitiated at the branch office where the document verification to the central email triggers can be sent to the clientuser will fill in the information related to processing centre. for submission of missing documents atthe account-opening request. The same branch office. Post approval, the data In case of any discrepancies like missingcan be scanned and used for data entry would be pushed to core banking for document, expired passport etc., thealong with the other supporting Account Number generation. The user Assessment Experts would raise andocuments required for Know Your would also be able to generate a exception on the basis of which theCustomer (KYC) details. At this stage welcome kit which would be dispatched transactions would be immediatelythe signed CIF & additional documents to the customer. forwarded to the concerned user at the Process Modeler Dashboard SOLUTIONS FOR BUSINESS PROCESS & CONTENT MANAGEMENT
  7. 7. 60% Reduction in Account Opening TATfor a Fortune 500 bankChallenges Processes Automated BenefitsŸ Bank first foray into retail banking Ÿ Account Opening, Maintenance Ÿ Opens 1200 accounts/day through worldwide and Closure for Savings Account, 10 branchesŸ Ambitious customer acquisition Current Account & FD Ÿ TAT improved from 8 days to 3 targets Ÿ Outward Remittance daysŸ Long A/C opening cycle Ÿ Standing Instructions Execution Ÿ Better monitoring of branchŸ Anticipating outsourcing for Ÿ TDS Process activities keeping costs down Ÿ Outsourcing step allows automaticŸ Time-consuming exception upload of bulk customer data handling Ÿ Masking of signature and mobileŸ Tracking physical documents as nos. for the outsourcing vendor per Central Bank guidelines Ÿ Exception handling TAT reduced by far Ÿ Operational risk management via KYC
  8. 8. Customer Experience ManagementCustomer Experience Management The key business challenges in Newgens offering in Customer(CEM) is the collection of processes a managing customer experience are:- Experience Management provides acompany uses to track, oversee and streamlined, consistent and effective Ÿ To manage a consistent experience toorganize every interaction between a way of handling the day to day customers across various touch pointscustomer and the organization transactions and interactions with like Call Center, Front Desk, Helpdeskthroughout the customer lifecycle. The customers. etc.goal of CEM is to optimize interactions Ÿ To reduce erroneous hand-offs andfrom the customers perspective and, as customer servicing proceduresa result, foster customer loyalty. Ÿ To simplify and standardize implicitNewgen offers banks a seamless and policies and procedures buried inautomated Customer Experience multiple back-end systemsManagement solution catering to Ÿ Differentiating customer conciergemultiple processes like Customer Query services by customer typeResolution, Case Management and Ÿ Dependency on Vendors/ IT expertsContact Center Processes etc. for performing minor changes on different systems leading to escalated costs Newgen Customer Experience Management Framework SOLUTIONS FOR BUSINESS PROCESS & CONTENT MANAGEMENT
  9. 9. Solution Highlights BenefitsŸ Unified application framework Ÿ Reduction in requests abandonmentŸ Online closure of requests with unified customer Ÿ 30% improvement of productivity via straight through services interface processingŸ Back office processing - workflow Ÿ 20% increase in customer acquisition and retentionŸ Multi-authorization facility (e.g. in credit line rates increase) Ÿ End to End tracking of requestsŸ Process modeling to ensure agile configurations of Ÿ Cases of requests getting assigned to wrong back business processes that can be defined and office units eliminated modified by business Ÿ Bulk processing of requests leading to operationalŸ TAT association & escalations efficienciesŸ Comprehensive MIS & dashboard Ÿ SMS/Email notification to customersŸ Total visibility Ÿ Automated Rule Based Escalation And Exceptions Management
  10. 10. Customer Communication Management (CCM)In todays competitive world customer is existing customers and attracting new customer communication while drivingthe most important asset to an ones. The communication is expected to the costs down. It has a proven trackorganization and it is pertinent to retain be highly personalized, One-On-One record of implementations at leadingcustomers for sustainable growth. and over the preferred delivery channel. banks across the world.Smart and effective customer Newgens CCM solution helps banks incommunication is the key to retaining transitioning to new generation HR S Y S A CY TEM LEG e nc Designer na Fi Bank On Demand s on ti nc ine s uc P n Fu tio Design ER le tL ra ltip Templates Ope Mu s int od Pr Marketing l Po e u ltip ch es RE M ou yp CO KING T nT ed N tio CRM BA Interactive ic a ag un n m Ma m Co Email Customer Structured CUSTOMER COMMUNICATION Partner Regulatory MANAGEMENT SOLUTION Newgen’s Unified Customer Communication Management Framework based on BPM and ECM platforms. SOLUTIONS FOR BUSINESS PROCESS & CONTENT MANAGEMENT
  11. 11. Personalized CommunicationBenefitsConsolidation of Statements Customer Centric Inline AdvertisementŸ Better customer experience by having a single view of Ÿ Utilize prime paper space for Personalized Inline the customers statements across Savings A/C, Advertisements Investment, Loans, Credit Cards etc. Ÿ Rule-based profiling and segmenting of customersCost Improved PresentationŸ Consolidated output saves paper, printing & postage Ÿ Communicating in customer’s preferred languageŸ Avoid wasteful & unread inserts Ÿ Adherence to corporate branding guidelinesŸ Reduced manpower for the entire process Ÿ Graphical analytic representation for taking informedElectronic & Multichannel Delivery decisionŸ Failsafe and faster delivery of the correspondences through Compliance Email & Mobile Ÿ Repository for statement archival and real time retrievalŸ Tracking of bounced, undelivered, incorrect statements Ÿ Service duplicate statement request effectivelyŸ Personalized messages over html body or attached pdf Ÿ Workflows for multi-level approvals Ÿ Content and design consistency Ÿ Any-time audit
  12. 12. Trade Finance SolutionsThe move to Global sourcing in pursuit Processes like Letter of Credit, Letter of It requires seamless process automationof lower supply costs has generally Guarantee etc. The paper-based which Newgen offers using itsincreased the working capital required, processing of these transactions is time comprehensive suite with strongintroduced additional bottlenecks and consuming and labor-intensive. document management, imaging,inefficiencies in the global supply chain. scanning, records management and Newgen enables centralized processingAs significant amount of world trade is BPM capabilities. of Trade Finance processes. Managingsettled through Letters of Credit (LC), a trade finance involves processing andconsiderable amount of money is tracking of Letters of Credit and relatedlocked up in the financial supply chain instruments at one central location fordue to inefficiencies in Trade Finance the entire global operations. Trade Finance Processes automated by Newgen • Trust Receipt (TR) • Letter of Credit (LC) • Letter of Guarantee • Bankers Acceptance (BA) • LC Issuance (LG) • ECR Pre & Post Shipment (ECR) • LC Amendments • LG Issuance • Local / Foreign Bills of Exchange Purchase / • LC Cancellation • LG Amendment Negotiated Under LC • LC • LG Correspondence • Onshore Foreign Currency Loan (OFCL) Correspondence • LG Closure • Documentary Collection (Both Inward / • LC Closure • LG Cancellation Outward) • Bank Guarantee (BG)Newgens solution for trade finance leaner branches with no dependency Moreover, with an agile BPM platformexpedites trade transactions and on physical documents, anytime- and soft template based approach, theminimizes potential data entry errors anywhere access of digitized solution can be implemented rapidlyby offering rich functionality in an documents, faster and informed for the customer with minimum timeautomated environment. The decision making and automated to market.automation results in greater central exception and resolution.control over operations and efficienttracking of instruments. The solutionbrings overall benefits such asshortened customer service times, SOLUTIONS FOR BUSINESS PROCESS & CONTENT MANAGEMENT
  13. 13. Enabling Agility in Trade Financefor a leading bank in EMEAChallenges Processes Automated Benefits• Bank was running various 15 Trade Finance Processes were Ÿ Providing business agility by applications and worried about automated under the following enabling frequent process changes upgrading the applications every processes Ÿ Reduced Turn-Around-Time for time there was a change in the • Letter of Credit (LC) LC/LG issuance business process • Export Settlement Ÿ Availability of online images for• Bank wanted to achieve business verification • Letter of Guarantee Issuance & agility by moving to a common Amendment Ÿ Improved exception handling and platform for all the processes • Shipping Guarantee Issuance tracking which could be changed easily • Trust Receipt Settlement Ÿ Enhanced compliance with complete accountability
  14. 14. Retail Banking A/c Opening & Locker/Custodial Customer Request CRM Image Maintenance Services Management Enablement Term Deposit PoS A/c ATM Statements Statements Services Management Processing Consolidation & Distribution Customer Statements Services ArchivalCorporate / Commercial Applications Cheque Clearing LC Issuance & Cheque Archival Inward & Outward Process Amendment Clearing Remittance Shipment Credit Cash Management Term Lending Service PDC Operations Bank Guarantee Cheque Collection/ Adhoc Contracts Bulk Pay Orders generation Interest/Dividend Commercial Loans Capturing Documents Warrants at the point of saleCredit Cards & Third Party Credit Card Issuance Chargeback Bancassurance Reconciliation of Credit Card Servicing ATM Statements Processing Utility Bill Management Visa and MasterPayment & Settlement Fund Transfer Forex Cheque Processing Foreign Outward Remittances SWIFT Virtualization Foreign Inward Remittances 100+ processes Account Opening, Signature Management (e-Serve); pioneering work Loan Disbursal – TAT System, Inward Clearing reduced to 1 day Process 20,000 checks in 4 hours; Ombudsman Process, Loan Proc Request Mgmt 700+ branches automated Integration with Core System in 2 years; 40,000 loans per Banking Finacle month 55 processes across LOBs Loan and Credit Card implemented in just 8 30 min consumer loan Processing with Score Check app months approval in 4 countries 450 branches in 22 40% reduction in Account Loan Admin Process, countries, 4 languages Interface in Bulgarian, Opening Process TAT 250 branches SOLUTIONS FOR BUSINESS PROCESS & CONTENT MANAGEMENT
  15. 15. Our Products ™ ™Business Process Management Suite Forms Processing EngineOmniFlow is a platform-independent, scalable Business Process OmniExtract is the data capturing solution which extracts business-Management Suite (BPMS) that enables automation of organizational critical information from image documents and forms. It can extractbusiness processes. OmniFlow is designed to ease the creation, all possible kinds of information like Hand-printed/ Handwrittendeployment, modification and management of Business Processes. Characters, Optical Marks, Barcode, Machine-printed CharactersBuilt using open technologies, it has seamless integration abilities and MICR Fonts.allowing it to be introduced into any IT infrastructure. ™ ™ Invoice Processing SystemEnterprise Content Management Suite Newgen’s Invoice Processing System, with automatic data verificationOmniDocs is an Enterprise Content Management (ECM) Suite for and validation capability, is a solution for automatic data capturecreating, capturing, managing, delivering and archiving large volumes from semi-structured invoice documents. It also supports seamlessof documents and content. OmniDocs manages Scanned Document integration with SAP and other ERP’s.Images, Electronic Documents and Emails as records. It also supportsseamless integration with other enterprise applications. ™ ™ Image-Based Check Clearing & PaymentCustomer Communication Management Newgen’s ChequeFlow is an image based Cheque ProcessingNewgens Omni Output Management System (O2MS) delivers solution for inward and outward clearing. Advanced and highlysmarter & targeted communications for better customer configurable sub-systems for Automatic Signature Verification,experiences. It offers the capability of leveraging prime paper space FOREX Cheque Processing, PDC Management, ECS/ACHfor customer centric inline advertisement, consolidation across mandates, add-ons for Cheque Deposit Machine/ Kiosks.multiple products. It enables secure communication on improvedtemplates with rich designs and graphical representation of analytics ™across multiple distribution channels. In addition easy archival &retrieval of correspondences for presentment & efficient customer Governance, Risk & Compliancerequest resolution is achieved using this enterprise application. Compliance Manager is an integrated solution for Governance, Risk and Compliance that’s geared to ensure compliance with standards, ™ best practices and guidelines of various regulatory acts.Enterprise Reports Management and ArchivalOmniReports stores trillions of computer-generated output pages ™and reports in a highly compressed form. It has a high-speed ingestionprocess with simple interactive definitions, enables instant access to Production and Distributed Scanning Suiteterabytes of reports independent of business application, and is fully OmniScan is a production and distribution software scanning forsearchable at field/row/page levels. OmniReports is ideal for sun- document image capture. It supports distributed scanning, imagesetting of business applications as well as optimizing core system quality enhancement and delivery of documents to business systems.performance by purging historical reports. What Analysts Say Investors Proven for Flexible and Value for Money Large volumes Cost Effective ® 2010 BPMS & 2011, DOCCM 2011 BPM 2011 ECM MQ Wave Report Decision Matrix Reports SOLUTIONS FOR BUSINESS PROCESS & CONTENT MANAGEMENT
  16. 16. About Newgen• Leading Global Provider of Business Process Management (BPM), Enterprise Content Management (ECM) & Customer Communication Management (CCM)• 900 installations across 50 countries• Solutions for Banking, Insurance, Healthcare, BPO/SSCs, Telecom and Government• Credited with some of the worlds largest implementations• Innovative culture, consistent R&D investments, 35 patents• Employee strength 1100+• Certified for ISO 9001:2008, ISO 27001:2005 and CMMI Level3Moments of Pride“Marfin Laiki Bank is known for its innovating culture and focus on bottom line. The bank was always on the lookout for embarking on initiativeslike enterprise content management and business process management to introduce new ways of doing business improve operational efficienciesand service levels. Newgen Software Technologies with vast experience in the finance and banking industries, has been the ideal partner for us inrealizing these initiatives, as it offered us a complete, comprehensive and mature set of tools and technologies that simply make things happen ...The quantifiable increases in productivity speak for themselves" - Marfin Laiki Bank“… Newgen has enabled us to centralize a large number of our processes, resulting in leaner and efficient branches. Branches have been able tofocus on sales, while the processing activities are moved to centralized back office. TAT has been significantly reduced, leading to better customerexperience." - Deutsche Bank“Simple, Easy & Powerful" - Bank Muscat Singapore Newgen Software Pte Ltd. 146 Robinson Road #03-00 Singapore 068909 Email: