The document discusses how customer analytics and business optimization solutions can help financial institutions drive higher customer satisfaction, revenue, and profits. It outlines the current challenges facing banks in growing revenue while managing risk. The solution aims to provide a complete, accurate customer view across channels to generate insights for more targeted marketing. It captures customer interactions across channels in real-time to optimize engagement and tailor experiences. The goal is to move from mass marketing to precise, event-based interactions using customer data and predictive analytics.

1. Customer Analytics and Business
Optimization
Drive Higher Customer Satisfaction, Revenue & Profits
© 2012 IBM Corporation

2. Agenda
Current market or industry situation
Our understanding of your goals
How the solution addresses needs and challenges
Solution description
Why IBM?
How to get started?
2 © 2012 IBM Corporation

3. Current market or industry situation
 Financial Institutions are focused on profitable growth by selling more products and services to the existing
customer base to generate higher revenues.
 Banks and Financial Markets firms also want to bring new products, services and bundles to market faster.
 As the economy recovers, banks will need to improve their industry’s health and identify new business niches,
customized services and innovative strategies to foster long-term growth. This will involve finding new, sustainable
sources of revenue, while raising operational efficiency and developing a more astute risk strategy.
 Banks must focus on raising capital, improving asset quality, and increasing profits.
Banks will look to find new ways to grow revenue, while managing risk:
 Redefining their business models via long-term savings initiatives in IT, shared services and front office/back office
integration in order to enable lower cost structures
 Specializing in areas in which they are strong, whether it be products, distribution channels or specific markets;
and partnering with other banks to reach new markets
 Segmenting clients by what they value and marketing to their unique needs
 Reforming the risk management culture by replacing siloed implementations with an integrated, enterprise-wide
risk management framework
3 © 2012 IBM Corporation

4. Our understanding of your goals
We understand the critical challenges in the financial markets today:
LOB Pains:
 Inability to maintain a single customer, account and product view across all channels
 Inability to support customer-centric initiatives & consistent customer experience
 Inability to integrate customer or product information across business units (M&A) or product lines
(bundles)
 Inability to gain insight to effectively market relevant offers to clients
IT Pains
 Inability to provide ‘single view’ of master data to business and applications and do so quickly
 Inflexible systems, lack of trusted information and poor analytical tools and reports hamper IT’s ability to
respond to business requests
 Inability to showcase ‘SOA’ solutions and prove value to business users
4 © 2012 IBM Corporation

5. How the solution addresses needs and challenges
Customer Analytics & Service Optimization solution is focused on addressing these
needs to drive higher customer satisfaction, revenue & profits.
Provide timely, accurate Address changing
Deliver results quickly
and complete business requirements
and efficiently
information
 Integrate quality data with  Start with the capabilities  Create custom-built domains
Cognos for more in-depth they need now and grow for industry or company
information over time i.e. Fast Track specific data models
 Incorporate Master Data in  Streamline deployment  Integrate with a broad
business analytics to capabilities spectrum of business
generate greater insight  Provide an intuitive and processes for greater impact
extensible user interface
5 © 2012 IBM Corporation

6. Banking CMOs are eager to deploy tools and technologies to address growing the volume, velocity
and variety of data.
Banking Plans to increase the use of technology
Percent of CMOs selecting technologies
50% Global
Customer analytics 86% 81%
Mobile applications 86% 80%
CRM 82% 81%
Social media 80% 82%
Single view of customer 80% 70%
Content management 77% 73%
Tablet applications 77% 72%
Predictive analytics 77% 66%
Collaboration tools 70% 68%
Campaign management 67% 61%
Reputation management 67% 63%
Search engine optimization 62% 62%
E-mail marketing 58% 46%
Source: IBM Institute for Business Value “From Stretched to Strengthened; Insights from the Global Chief Marketing Study”
www.ibm.com/cmostudy
6 © 2012 IBM Corporation

7. Customer Experience and Analytics
Customer-focused enterprises deliver a superior customer experience through global solutions
while lowering operational expenses
Organize
Information
Owned Media &
Point of Sale Interaction Channels
Capture Analyze
and Notice Web Branch and Derive
Interaction
Paid Optimization Earned
Social
Kiosk Media Media
Media
Media Marketing Brand
Optimization Analytics Optimization
Apps SMS
Customer
Data &
Optimize Email Chat Gain Content
Interaction Insight
Marketing Performance Optimization
Voice
Application Integration
Capturing every customer moment of truth Marketing and selling based on customer events
In real-time across both staffed and automated channels, Progress from mass marketing to precise, event-based
and trigger appropriate actions marketing with customer information and predictive analytics
Providing consistent, cross-channel experience Engaging customers in insightful conversations
7 © 2012 IBM Corporation

8. Leading enterprises place the Continuous feedback to recognize
customer AND financial advisor new opportunities and trends in data,
at the center of the business. information and analytics.
Information sharing that
Data and analytics that drive growth
synchronizes the organization with
by targeting and extending
consistent messaging, relevant
the value you provide.
offers, and impactful service.
client
client
Customers
Insight that improves collaboration Financial Advisors Insight-rich processes that
and visibility for your customers, Business Directors maximizes the effectiveness of each
financial advisors, and partners. Customer Analysts customer interaction.
Enterprise Alignment & Adoption
CLIENT ADVISOR MARKET
17 3
1 Business Insight
2
2.5
16 3
2
15 1.5 4
1
0.5 Client Market Insight
14 5 Advisor
0 Insight to Planning,
Insight for
for Targeting and
13 6 Distribution
Relationship New Business
Optimization
12 7 Development Opportunities
11 8
10 9
Information & Analytics Foundation
Current Analytics Enablement
Target Analytics Enablement
Solid Information Management Data, Information and Analytics Maturity Assessment Blueprint and Roadmap for Deploying the
as an Enterprise Foundation Based on Business Consumption Most Impactful Data First
IBM has a keen understanding of the analytics challenges faced by complex Financial Services companies – and how to solve them
And we focus on how information is organized, consumed by the business, and delivered to customers at the front-line.
8 © 2012 IBM Corporation

9. Client is looking to overcome embark on the planned growth strategy
Current State Challenges Implications for Client
Client is facing regulatory scrutiny and data integrity A comprehensive data environment that supports financial
Regulatory concerns of reporting integrated data across aging legacy reporting across multiple dimensions for compliance and
pressures systems analytic capabilities for a host of regulatory needs
Business Need for robust business controls to ensure integrity of A comprehensive finance infrastructure to collect high value
controls financial process subsidiaries and affiliates to a single financial system to ensure
proper business controls
Financial Need for reconciliation of multiple and complex data supply An single supply chain for financial data integrated across all
reporting chains at various levels of financial detail. More than 7000 the source systems including subsidiaries with multi-
reconciliation balance sheet reconciliation of nearly than 3000 are manual dimensional financial aggregates
Accounting logic embedded in each of the 97 source Consolidated accounting logic in a central rules engine enabling
Distributed systems resulting in inflexibility and high cost of ensuring flexibility and efficiency to manage changing financial reporting
accounting logic consistency of accounting rules and meeting changing needs
reporting requirements
Opaque financial date environment precludes traceability, Integrated instrument level data repository providing drill down
diminishing value of financial processes and key metric from summary level financial results to granular instrument level
Traceability insights balances creating true financial transparency
Lack of accurate customer and product level profitability Leverage high quality financial data to customer and product
Profitability analysis to enable decision making for improving market profitability analysis increasing confidence and accelerated
analysis share and book of business decision making, while at the same time reducing data
gathering and analysis cost
9 © 2012 IBM Corporation

10. BAO Methodology and Accelerators
A smart financial institution is built around an optimized and integrated back office
one that leverages advancements in technology, global integration opportunities and a
continuous flow of data to cut costs, drive speed and further innovation.
OUTSOURCING
GENERIC FUNCTIONS
PRODUCT
INNOVATION
ARCHITECTURE RENEWAL
AND IT RENOVATION
PAYMENT
CONSOLIDATION
BUSINESSS AND
FINANCIAL REPORTING
RISK SYSTEMS
INTEGRATION
10 © 2012 IBM Corporation

11. IBM will apply our key tenets to successful implementation
Key Tenet Client Alignment Benefit to Client
Flexible Integration SOR layer Staging layer
Integration Access
ICDW will be implemented on a Flexible Integration
Architecture Architecture that will allow each LOB to build their
layer layer
System of Teradata Semantic
Record Platform Model
Extract Views
operational and analytical capabilities without impacting
Customer
SOR
files
Subject Area Staging
Load Ready Staging
Application & Process Specific Views
Global/LOB Views
Clean Staging
Landing Pad
1:1 Base Views
Secured Views
Data Classification ICDW
other LOB data structures or containers, but still ensuring
Default File
Quality Business Lookup, COC, ICDW
Validation Integrated
SOR Check
Transformations [………] Key Load
files @ Generation @
Data
Extract # @ Warehouse
[…] […] […]
[…] […] […]
adherence to a single Logical Model and designate key
Credit Risk
SOR files
#–Informatica Teradata Parallel @–Informatica Pushdown Optimization Technology
architecture guiding principles
Transporter Technology (Supported by Subject Area Common Components)
Agile Development All ICDW initiatives will adopt a very rapid Agile and
Business driven IT driven Business owned
Program office/Project management
Project initiation/ UAT planning/Deployment planning User Acceptance Test
requirements (UAT)/Deploy
Methodology Design
Test planning
Test
prototyping methodology that will deliver smaller but faster
functionality to business through a very iterative process
Build
Process (SCRUM)
Sprint Review &
Sprint Planning Sprint Burn
Daily Standup Retrospective
Meeting down
Meeting
Spr int Blocks Product
Sprint Goal Shippable Product
Bac klog List Back log
Layer Public Area Discovery Area Supporting Tools
Common Re-Usable Application
BI, Data Access & Query Tools
Interim
Data
Repository
Individual
Sandbox A common set of re-usable components or tools will be
Components created that will assist each LOB leverage some of the key
Application & Process Specific Views Extract Views
Access Shared Dimensions and Metrics
IDR_ RISK USERS
(PRSN) TABLES E095823
1:1 Views of Integrated Tables VIEWS E983456
core functionality like audit log, controls etc thereby
WORK E345678
In volved Party Locatio n Event
IDR_MKT
Arrangement Classificati on Resource I tem
Integration Integrated Consumer Banking Data Model
TABLES
(INTG) VIEWS
Load Ready Tables
reducing duplication of effort
WORK
Subject Area Interfaces
Staging Source System Representation of Data
(ACQN) File System Landing Pad
SOR
System Of Record Data
Support Services Some of the key functions will be performed by a central
Types of Engagement/Services
Line Of Business
Card Services Student & Auto CBB Mortgage Bank Digital Marketing
•Demand Management
 Reporting & Analytics Developm ent  Business Requirements •Requirements
•Priorities
organization to ensure adherence to proper design
 Exploratory Prototyping  Service Level Agreements
Line Of Business IT • Semantic
Development
Car d Services Student & Auto CBB M ortgage Bank • LOB Data
Mart
 Reporting & Analytic Development  Framework & Universes
principles and operational process (i.e. Architecture, Project
 Demand & Program Management  UAT & Training
Centralized ICDW Team
•Develop Common
 Architecture & Model  Development (Common Components & Semantic) Functions
•Model Design &
Management, Release Management, Infrastructure &
 CDM Demand Mgmt.  Integration & Regression QA and Release Review
Management •Cross LOB Initiatives
Line Of Business IT
•New Data Sources
Car d Services Student & Auto CBB M ortgage Bank •Additional
Integration
 Development (SOR, Integration)  Functional /Unit Test •Functional/Unit Test
Operations & Infrastructure Support
 Infrastructure
 Backup & Recovery
 Network
 Production Oper ations
Operation Services)
 Performance Test  Performance & Capacity Plan
Parallel Factory-Based Gather information Extract process File validation
TDQ
checks
Load
tables
The projects will be delivered through a Factory (breaking
Delivery Model SOR layer
System of
Record
Staging layer
Teradata
Platform
Integration
layer
Access
layer
Semantic
Model
down a process into small manageable chunks into
independent and cost effective manner) based delivery
Extract Views
Customer
SOR
files
Subject Area Staging
Load Ready Staging
Application & Process Specific Views
Global/LOB Views
Clean Staging
Landing Pad
1:1 Base Views
Secured Views
Da ta Classification ICDW
model that will enable multiple projects to run in parallel with
Default File
Q uality Busi ness Lookup, COC, ICDW
Validation Integrated
SOR Check
Transfor mations [………] Key Load
files Data
@ Generation @
Extract # @ Warehouse
[…] […] […]
[…] […] […]
Credit Risk
very limited interdependencies
SOR files
#–Informatica Teradata Parallel @–Informatica Pushdown Optimization Technology
Transporter Technology (Supported by Subject Area Common Components)
11 © 2012 IBM Corporation

12. Why IBM?
Broad and integrated portfolio of information and analytics capabilities
 Largest investment in analytics software and solutions with over $16B in acquisitions since 2005
 Enterprise Class Big Data Platform as part of a comprehensive Information Management Foundation
 Analytic Capabilities that scale from personal to enterprise to next generation systems that reason and
learn
 Decision management solutions that embed predictive analytics into business processes
Proven experience accelerating time-to-value and delivering breakaway results
 Over 9,000 experienced strategy, analytics, and technology experts and consultants around the globe
 Proven solutions & use cases across industries and functions, from 1000’s of client engagements
 Thought leadership and practical insights from the IBM Institute for Business Value
 Jumpstart services and eight global IBM Analytics Solution Centers to help organizations get started
 World’s number 1 IT captive financier. (IBM Global Financing)
Comprehensive delivery options to compliment capabilities and lower TCO
Broad range of implementation models, including:
 System Integration, Consultancy, Transformation
 Application Management Services
 Appliance, Hardware, Cloud, Mobile
Advanced technology and expertise applying innovation to real world problems
 First-of-its-kind breakthrough innovations, including IBM Watson
 World’s largest math department in private industry since 1960
 Nearly 600 analytics patents per year and first in patent ranking
12 © 2012 IBM Corporation

13.  Services professionals in 170 countries  worldwide access to skills
 Scalable, global delivery capability to fulfill any-size IT/business requirement and access IBM
best practices seamlessly, no matter where banking operations reside
 State-of-the art, web-enabled access to IBM’s reporting and intelligence capabilities
 Flexible sourcing and delivery alternatives, customizable to fit each client’s unique business
objectives
 Research focused on developing real-world, innovative business solutions for industry-
specific needs
 The industry’s largest number of infrastructure experts
13 © 2012 IBM Corporation

14. Appendix
14 © 2012 IBM Corporation

15. Real-World Basel II SolutionsCase Study
$110 billion domestic US Bank, South Eastern US
footprint with business model sweet spot in
mortgage and commercial lending
Project Response Impact
Enterprise Basel II Credit Risk Project Centralized Basel II / Credit Risk  Project in implementation– source
 Goal: Transform legacy decentralized Management supporting systems lined up for 2006/7 migration
bank consortium in enabled advanced Information Management solution  In addition to Basel II compliance, the
credit risk management institution IBM brings solution will be used by multiple
 Accelerate transformation using IBM’s  Banking Data Warehouse Model functional and lines of business as
Banking Data Warehouse and an and Leading Practice accelerators the system of record as well as the
integrated reporting and analytics repository for LOB specific data
 Business knowledge
capability requirements
 Practical Basel II implementation  Will be a source of reliable
 Requirement: Ability to provision data experience
from an enterprise perspective but information for management and
 DB2 regulatory reporting, portfolio
support business model from a
decentralized management perspective  BDWM management and front-line business
users across the Commercial and
 Challenge: Legacy LOB data  Ascential DataStage
Retail Banks
management; across multiple legal
entities, lines of business, functions
and geographies
15 © 2012 IBM Corporation

16. Client ‘s Financial Systems High Level Target Architecture
Platform Administration
(Maintenance & Security)
Reference Data
(Internal & External)
Source Interfaces Financial Reporting
Systems Applications
Data Integration Expense Operational
Layer Sub Ledgers Reporting
(DIL: IT container for (AP / FA)+
below business controls) Exec Financial
Reporting
Accounting General
SEC / Regulatory
Rules Ledger
(GL)
Extracts &
Engine Reporting
(ARE: Chart of
Account Profitability &
Assignment & Financial Data Store LOB
DR/CR Creation) * (FDS: Financial Reporting Integration
Environment & Instrument Level Repository) Reporting
Financial
Other Data
Analytics
Transform Detailed Calculation
Engines Engines Integrated Risk
(Instrument & (DCE: Funds Transfer Pricing / and Financial
Other Attributes) Allocations / Other Detailed
Financial & Risk Functions) Reporting
Processing Control Functions
(Reconciliation / Error Handling / Adjustments / Processing Monitor)
*
Initial instance is a Mapper of existing finance data to new chart of accounts.
+
Use of ERP software for PO, T&E, A/R and Project Costing (PC) to be determined.
16 BB&T and IBM CONFIDENTIAL 16
© 2012 IBM Corporation

17. Business Analytics Factory Model
IBM’s Global Delivery Model
Project Resourcing Deliverables
DI/Analytics Architects Project Mgt.Technical Leadership
Reporting Analysts/Designers Requirements
Reporting Architects Designs (Conceptual, Macro, Micro)
Reporting Developers Onshore  Data integration
Analytics Analysts/Designers  Data delivery (reporting)
Data Integration Analysts/Designers  Data analytics
Client Project Management  Data Repository
Partnership On-Shore Coordinators
Off-Shore Coordinators
Analytics Developers Offshore Completed Source Code
Reporting Developers Reports
Data Integration Developers Maintained Applications
Testers On-Going Support
Maintenance Developers
Application DBA’s
A critical measure of success for every engagement is how we interact with the client on adherence to our joint standards, and how we transfer
intellectual capital. At the beginning of every engagement we work with and gain agreement on a joint project/program interaction model on how,
who, and when we interact in the systems development lifecycle.
17 © 2012 IBM Corporation

18. The findings in IBV’s paper builds on the themes from our earlier research
To become client centric, banks will develop sophisticated insight to
 Innovate their pricing models to be more closely aligned with client segments
 Optimize their channels to maximize satisfaction while balancing services and prices
 Leverage their vast reserve of information to reduce risk
IBM Institute For Business Value IBV Banking
Banking Thought Leadership Paper
Sophistication and
Simplification Globalization Specialization Insight
18 © 2012 IBM Corporation

19. 19 © 2012 IBM Corporation

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