SAP Banking with SAP S/4HANA as the digital core can enable the business capabilities required to achieve these strategic priorities. For example, a bank might use the solutions to reimagine the record-to-report process by optimizing the financial close cycle and accelerating financial reporting.

1. SAP Banking
Powering Digital Transformation with

2. Executive Summary
Our Understanding of Banking Strategic Priorities
Leading banks plan to capture new business opportunities by driving customer
experience, enhancing performance and financial management, focusing on a step
change in productivity, and empowering innovation culture. Leaders focus on these
four strategic priorities:
▪ Ability to connect seamlessly
▪ Data-driven intelligence
▪ Operational effectiveness
▪ Financial insight and risk control
SAP® solutions with SAP S/4HANA® as the digital core can enable the business
capabilities required to achieve these strategic priorities. For example, a bank might
use the solutions to reimagine the record-to-report process by optimizing the financial
close cycle and accelerating financial reporting.
Implications for Your IT Landscape
Banking leaders are also investing in an IT environment that enables these strategic
priorities and meets expected future requirements. The SAP portfolio with the
intelligent suite (including SAP S/4HANA), intelligent technologies, and open digital
platform can provide the right technology stack to help meet business challenges.
Business Value
With SAP S/4HANA and other SAP solutions, you can:
▪ Radically simplify the finance technology architecture, enabling continuous
accounting
▪ Enable dynamic planning, forecasting, and consolidation
▪ Enable “lights out" transactional tasks augmented by emerging technologies
(artificial intelligence, machine learning, Big Data analytics, and blockchain)
▪ Provide best-of-breed banking functions such as average daily balances
“on the fly” and multicurrency accounting
▪ Provide a subledger and performance management integrated with SAP S/4HANA
▪ Engage the workforce with a better user experience
Business Value – Digital Customer Experience and Core Banking
With SAP S/4HANA and other SAP solutions, you can:
▪ Enable a consistent experience, no matter what the device
▪ Enable focused customer offers in real time
▪ Provide faster time to market for new products
▪ Enable real-time processing and balances
▪ Enhance responsiveness to regulatory mandates
▪ Provide advanced cash management and payment services
How to Start
Given the tremendous potential value to be realized by successful transformation, your
company needs to start now by laying a strong foundation with SAP S/4HANA.
The simplified data model and modern user experience of SAP S/4HANA are
exemplary, regardless of the selected deployment model (cloud, on premise, or a
combination). Based on the business objectives, current landscape complexity, and IT
strategy, your company can choose the right approach to transform its digital core.
Why SAP
With more than 14,100 banking customers worldwide, deep industry-specific capabilities,
and embedded, preconfigured best practices, SAP is strongly positioned to help banks
on their digital transformation journey.
Proposed Engagement and Next Steps
Based on your needs and scope, we offer three types of engagement offerings:
▪ Intelligent Enterprise – Build and execute your digital vision
▪ Discovery for SAP S/4HANA – Understand the right migration strategy
▪ Adoption starter guided enablement – Do it yourself with guidance from SAP
As a next step, we recommend setting up a meeting to align executives with your
strategic priorities.

3. Strategic Priorities Key Business Capabilities Enabled by the Digital Core
Enabling Banking Priorities with SAP Software
Leading banks have come to recognize the impact and potential of digital transformation. They seek to constantly innovate across the value chain to drive profitable
growth by successfully adapting to how customers want to acquire, use, and pay for their solutions and services. To achieve these objectives, they are focused on the
strategic priorities outlined below. The question you might be asking is, how can SAP help? Outlined below are the primary business capabilities provided by having
SAP S/4HANA as the digital core that can help enable your success.
Connect Seamlessly
▪ Attract and cultivate customers by enabling an integrated, multichannel environment
▪ Integrate SAP S/4HANA with business network solutions
▪ Include a financial products subledger and performance management capabilities with
SAP S/4HANA
▪ Provides agility to efficiently offer personalized products and services in real time
orchestrated across channels – from inquiry to application to fulfillment – enabled
in the cloud
▪ Provides built-in, fully integrated, end-to-end business processes
▪ Provides a clear line of sight between aggregated financial information and supporting
details and root cause analysis
Data-driven Intelligence
▪ Process applications centrally and respond quickly
▪ Make decisions based on accurate and complete customer information provided
through an automated application
▪ Facilitates faster credit decisions, a vastly improved customer experience, significantly
lower costs to serve, and a more secure risk profile
▪ Enables incremental redesign of the entire lending process, enabling progressive
efficiency gains and cost savings
Operational Effectiveness
▪ Deliver customer-centric products and services using a 360-degree customer view
▪ Optimize processes by embedding machine learning and other innovative technologies
▪ Provides advanced data analytics that banks can use to analyze the intentions of
consumers and gain insights
▪ Enables focus on customer segmentation, optimization, text and sentiment analysis,
and pattern recognition
▪ Can play a central role in advancing sales and service interactions by helping analyze
information and make decisions about the best way to respond or interact with clients
Financial Insight and Risk Control
▪ Implement new, innovative business and finance operating models
▪ Meet regulatory requirements and accounting changes in a rapid, sustainable,
cost-effective manner
▪ Provides a unified financial system based on single set of harmonized, trusted, granular
finance data (universal journal)
▪ Results in real-time finance processes that enable continuous accounting, real-time
consolidations, and a faster and more accurate financial close
▪ Supports banking-specific regulatory requirements such as average daily balances,
U.S. GAAP and CECL, IFRS 9, and other critical mandates

4. Simplifying the IT Landscape to Move Ahead
Source: SAP performance benchmarking
Key Challenges Digital Core Enables
Technologies such as the Internet of Things (IoT), machine learning (ML), the cloud, and predictive analytics all are required to achieve the strategic priorities for
consumer products. But companies are still learning to use these technologies at scale, adopt new business models, and innovate business processes. Much of the
challenge relates to the level of complexity across the four key layers of technology. SAP S/4HANA, the intelligent suite, and our digital platform are designed to meet
your company’s technology needs of the future, as shown below.
Experience
▪ Inconsistent user experience across multiple IT systems
▪ Lack of role-based capabilities and cockpits
▪ Difficulty accessing contextual insights in real time
▪ Intuitive and consistent user interfaces across functions and lines of business (LoBs)
▪ Contextual insights and transaction automation powered by machine learning
Applications
▪ Multiple applications for the same function across different divisions
and business units
▪ Fragmented application landscape, resulting in lot of customization,
which makes it difficult to embed new technologies
▪ Efficient and function-rich application portfolio that shares a common data model
▪ Frequent upgrades to ensure access to the latest innovations
Platform
▪ Multiple niche platforms to create solution extensions, adding to complexity
▪ Platforms that are not equipped with built-in intelligent technologies
▪ Customer-specific extensions and co-innovations enabled by a feature-rich open cloud
platform
▪ Secure data management, integration, and analytical services
Infrastructure
▪ Mergers and acquisitions over the years that have resulted in multiple data
centers and silos
▪ Majority of operational budget going into maintaining existing infrastructure
▪ Secure cloud environment with flexible deployment options
▪ Partnerships with all hyperscale cloud infrastructure providers (for example, AWS,
Azure, Google Cloud)
30%
Fewer IT applications per billion in revenue for
organizations that have a strategy in place for a
single solution or platform landscape consolidation

5. All banks are grappling with the reality of the digital economy. These banks are discovering that their existing enterprise systems cannot deliver the capabilities needed
to drive their strategic priorities; nor can they help organizations move to the next level of customer experience, productivity, or workforce engagement. Initial results
from adoption of SAP solutions are so promising that companies cannot ignore the impact on their industry cost structure and competitive play. Here are some of the
expected strategic and tangible benefits.*
Identifying the Value
*Benefits are based on results from individual SAP customers or are conservative outside-in estimates of the benefits. As each enterprise is at a different level of maturity, our recommendation is that you work with SAP to determine the value
proposition for your enterprise.
DRIVE CUSTOMER
EXPERIENCE
DELIVER STEP CHANGE
IN PRODUCTIVITY
ENGAGE THE
WORKFORCE
▪ Greater innovation ability
▪ Increased business agility to respond to
market changes
▪ Competitive advantage through next-
generation industry processes and industry
intelligence
▪ Improved customer engagement with
consumer-grade user experiences
▪ Stronger employee engagement and
higher productivity
▪ Enhanced governance and compliance
▪ Fast route to becoming a connected
enterprise
▪ 56% more qualified leads through omnichannel
▪ 30% less time to market for new products
▪ 68% increase in willingness to pay more for a
better customer experience
▪ 30% fewer processing errors across the network
▪ 36% higher product cross-sell rate
▪ 99% reduction in manual effort in centralized
payment processing
▪ 34% higher online lead conversion
▪ 45% increase in revenue growth with
information as a key strategic asset
▪ 52% increase in data completion with
governance
▪ More than 12,000 banks in 142 countries
▪ 10,925 banking customers enabled in the
cloud
▪ Over 200 million active bank accounts
supported by SAP solutions
▪ Assets in excess of €70 trillion (US$80 trillion)
managed by our banking customers
▪ Essentials required to compete in the digital
economy
▪ 97% of banks in the Forbes 2000 innovating
with SAP solutions
The Time to Start Is Now
Speed is what matters now, as the first movers will have an edge. Digital transformation is a long journey, and the sooner you start, the sooner you will be able to
compete in the digital economy. First movers will have the significant advantage of consolidating their position in the industry and ecosystem, and further building on
their lead by focusing on innovation. Companies waiting to start will be left further behind.
It’s better to change while you can, rather than when you have to.
With the intelligent suite from SAP, including SAP S/4HANA, the SAP HANA® business data platform, and our investments in digital technologies, we are ready to help
your bank to navigate through the digital storm and become a best-run business.

6. SAP Enables Companies to Become Intelligent Enterprises
SAP helps banks transform to intelligent enterprises through integrated business applications that use intelligent technologies. This enables next-generation business
processes to deliver breakthrough business value and enable our customers’ become an intelligent enterprises.
Intelligent Suite
The set of applications provides the business capabilities that banks need to run
their business. End-to-end business processes span multiple applications, so
processes and data must be integrated for automation, a seamless user
experience, fast adoption, and ease of operations.
Intelligent Technologies
Several innovative technologies have matured to practical use:
▪ The Internet of Things makes business applications interact with the physical
world.
▪ Big Data makes large data sets accessible for advanced analytics and
intelligence.
▪ Machine learning and artificial intelligence automate repetitive processes and
learn from human exception handling and decision-making.
▪ Advanced analytics find data patterns to support decisions and predict the
future.
▪ Blockchain distributes collaborative processes across the entire value network.
▪ Data intelligence finds new value in data assets for new business models.
Digital Platform
The digital platform, which is powered by SAP HANA, extends the intelligent end-
to-end processes and connects to data sources:
▪ Cloud platform that allows customers and partners to extend their intelligent
suite to run additional business processes
▪ Data management to handle and organize data, a key asset of an intelligent
enterprise

7. A New World with SAP
• Cloud-based customer data is a single source for divergent systems
(internal, social, third-party), allowing real-time access by digital customer
engagement (DCE) tools from SAP without need for deep knowledge of
system landscape
• Campaign segmentation is defined as well as target customer in real time,
using DCE technology from SAP and Big Data services from SAP
• Iterative, granular campaigns run in days, not months, allowing bank to
further segment campaign criteria in the cloud as needed without IT
constraints
• Machine learning can be applied to campaign results, reducing human
dependency for analysis and next-best offers
• Success metrics stream within campaign, so bank can further tune segments
and campaigns with various inputs without need for IT development
• New campaigns can be built and deployed as needed without help from IT
Campaign segmentation, campaign build, and product deployment
to market and channels
Campaign segmentation optimization in real time, based on
results from previous campaigns
Marketing campaign success metrics in real time during campaign
Connect Seamlessly
*Benefits are based on results from early adopters of SAP S/4HANA or are conservative outside-in estimates of the benefits of moving from a traditional ERP system to enhanced SAP S/4HANA with line-of-business and cloud capabilities.
As each enterprise is at a different level of maturity, our recommendation is that you work with SAP to determine the value proposition for your enterprise.
Banks must attract, cultivate, and retain customers by enabling an integrated, multichannel environment. They must analyze each customer’s behavior and point of view
to succeed in the digital age. This lifestyle view determines what products are created and what services are offered when and where to meet the customer’s needs.
Digital Customer Engagement in the Cloud
With SAP S/4HANA at the digital core and using SAP S/4HANA Cloud software for digital customer engagement in the cloud, banks can provide their customers with
iterative products more quickly and with increased success metrics.
More accurate and personalized product offers, resulting in higher product
conversion and dramatic reduction of application abandonment
Faster business process from business case
completion to campaign evaluation
Top value drivers*
Traditional Scenario
• Business line creates a business case to bring new
products to market
• Business line identifies and defines systems needing
access and data needed for campaign, requiring
intimate knowledge of system landscape
• IT codes and tests process for retrieving target
marketing data
• Business line then scrubs and validates test data
returned
• Business line iteratively provides instructions to IT for
data retrieval correction until satisfied
• Marketing campaign is applied; if additional markets
are further segmented, process returns to IT coding
and testing
• Business line defines data needed from IT to assess
success metrics
• Process returns to IT code-and-test batch process
• Business line consumes success-metric data
• Success metrics are reported to management based
on segment marketed to during campaign
• Each campaign follows a similar process to previous
• New campaigns start from beginning
Key business capabilities enabled by the digital core – SAP S/4HANA
▪ Provides agility to efficiently offer personalized products and services in real time orchestrated across channels – from inquiry to application to fulfillment – enabled in the cloud
▪ Provides built-in, fully integrated, end-to-end business processes
▪ Provides a clear line of sight between aggregated financial information and supporting details and root cause analysis

8. Key business capabilities enabled by the digital core – SAP S/4HANA
▪ Enables faster credit decisions, a vastly improved customer experience, significantly lower costs to serve, and a more secure risk profile
▪ Enables incremental redesign of the entire lending process, enabling progressive efficiency gains and cost savings
Traditional Scenario
• Isolated systems across the bank
• Many legacy systems providing point
solutions isolated from other systems
• Legacy systems not open to sharing data, or providing
minimal data-sharing capabilities
• Banks depending on IT to provide highly custom and
isolated services
• Manual analytics and risk processes
• User behavior and intent determined by running
manual processes across multiple systems,
normalizing the data, and then conducting analysis,
resulting in stale predictions
• Adoption of new regulations hindered by manual
processes
• Fraud analysis after the fact
• Legacy systems isolated from other channels, resulting
in a limited view of fraud exposure and the required
mitigation to limit that risk
• Slow response to competition
• Isolated offer management systems that lack a holistic
360-degree view of customer activity and potential
intent, resulting in lost sales and revenue-generating
opportunities
A New World with SAP
• Full customer view in the cloud
• Access to the SAP Cloud portfolio, which allows a bank to stream multiple
data sources from various systems (internal, third-party, social, and so on)
into a 360-degree, real-time customer view
• Real-time analytics and fraud management
• Deep, real-time risk assessments for flight, churn, and abandonment
• Identification of fraud behavior in real time, minimizing state predictions and
financial loss
• Real-time service and sales in the cloud
• Increased business line view on customer profiles, preferences, and activity
• Creation of personalized product offers and campaigns based on how users
behave within the bank site
• Generation of offers outside the bank’s site, in the cloud
Single source of truth for customer activity and intent in the cloud Real-time analytics for better offer management and fraud mitigation Increased customer sales and offer management
Data-Driven Intelligence
*Benefits are based on results from early adopters of SAP S/4HANA or are conservative outside-in estimates of the benefits of moving from a traditional ERP system to enhanced SAP S/4HANA with line-of-business and cloud capabilities.
As each enterprise is at a different level of maturity, our recommendation is that you work with SAP to determine the value proposition for your enterprise.
Banks should be able to process applications centrally, regardless of their source, in a digital, multichannel world. They should be able to respond quickly, thanks to a
high degree of automation. Decisions should be based on accurate and complete customer information provided through automated application processing and
seamless customer onboarding.
Financial Services Data Management
With SAP S/4HANA at the digital core and using SAP S/4HANA Cloud software for financial services data management, banks can manage risk and provide real-time
customer offer management for sales and services.
Allow real-time data management for better fraud management and
mitigation and more relevant sales campaigns targeting the user
Achieve more control over the customer experience, offer
management, and customer behavior and intent
Top value drivers*
.

9. Traditional Scenario
▪ Product predefined
by marketing and product
management
▪ Product catalog with a
limited number of options
and price lists available
▪ Every option existing
independently as a
product, resulting in
inconsistency and errors
in product management
downstream
▪ Unique product definitions
with different capabilities
and pricing, making it
impossible to simulate
costs early
▪ Multitude of detailed
product definitions for each
possible combination,
generating a low level of
process standardization
and high maintenance
costs
▪ Inefficient, expensive,
and error-prone product
processes and delivery
A New World with SAP
▪ Customer requests
personalized account
offering
▪ Product options and
pricing alternatives are
managed by system rules
▪ Customer is offered an
individualized product by
channel system, tailored
to meet specific needs
and banking behavior
▪ Smooth, comprehensive
process between channel,
product systems, and
accounting allows cost
simulations
▪ Automatic updates occur
for customer-specific
contract changes and
pricing
▪ High customer satisfaction
results, with personalized
products delivered at the
same costs as a
standardized product
Operational Effectiveness
*Benefits are based on results from early adopters of SAP S/4HANA or are conservative outside-in estimates of the benefits of moving from a traditional ERP system to enhanced SAP S/4HANA with line-of-business and cloud capabilities.
As each enterprise is at a different level of maturity, our recommendation is that you work with SAP to determine the value proposition for your enterprise.
Banks need to deliver customer-centric products and services using a 360-degree customer view enabled by streamlined and automated banking operations and a
seamlessly integrated finance, risk, and compliance system across retail and commercial banking businesses.
Leveraging an Intelligent Enterprise in the Cloud
With SAP S/4HANA at the digital core and using SAP S/4HANA Cloud software to create an intelligent enterprise in the cloud, banks can provide their customers with
individualized products faster and at a lower cost.
Lower R&D costsFaster time to marketTop value drivers* Increase in revenue from new products
Key business capabilities enabled by the digital core – SAP S/4HANA
• Provides advanced data analytics that banks can use to analyze the intentions of consumers and gain insights
• Enables focus on customer segmentation, optimization, text and sentiment analysis, and pattern recognition
• Can play a central role in advancing sales and service interactions by helping analyze information and make decisions about the best way to respond or interact with clients

10. Traditional Scenario
▪ Lack of system integration
▪ Disparate legacy applications and data silos
that make it impossible to focus on a holistic
customer experience and journey
▪ Independent system that accounts for
customer data uniquely, leading to difficult
customer data mapping
▪ Manual analytics and risk process
▪ Limited or nonexistent aggregate views of
customer interaction across channels and
products, which make it difficult or impossible
to predict customer intent and therefore
capital needs
▪ Batch-driven risk management
▪ Risk managed at the product level, not at
the customer level, due to a siloed product
landscape
▪ Manual reporting that needs to be generated
in a batch for human review and evaluation
▪ Slow response to market conditions
▪ Batch-driven processes that do not reflect
rapid changes in the market, leading to
“intelligent guesses” for risk management,
resulting in too much or too little capital and
reserves
A New World with SAP
▪ Single source of risk management
▪ Data streaming into the cloud for a single customer view in
real time
▪ Analysis that is automated and reported in real time, sending
alerts to various business owners for immediate risk
management
▪ Analytical tools for real-time risk management
▪ Transactional analysis used for patterns, channel attributes,
customer behavior, current and historic values, velocity, and
historical pattern trends
▪ Real-time analysis of customer intent and behavior based on
internal data, third-party data, social media, browser history,
and cookie information
▪ Forward-looking what-if scenarios that can be calculated using
real-time positional risk – whether it be market exposure,
asset valuation, liability exposure, or cash reserves – using a
single data source in the cloud
Financial Insight and Risk Control
*Benefits are based on results from early adopters of SAP S/4HANA or are conservative outside-in estimates of the benefits of moving from a traditional ERP system to enhanced SAP S/4HANA with line-of-business and cloud capabilities.
As each enterprise is at a different level of maturity, our recommendation is that you work with SAP to determine the value proposition for your enterprise.
10
Banks are required to keep their systems and processes up to date in real time in a complex regulatory environment. They need to meet regulatory requirements in an
easy and flexible way to keep costs down.
Real-Time Analytics for Risk Mitigation in the Cloud
With SAP S/4HANA at the digital core and using SAP S/4HANA Cloud software for real-time risk analytics and mitigation, banks can manage fraud and loss prevention
in real time as events happen.
Reduce fraud and riskImprove the customer experienceTop value drivers* Increase revenue growth
Key business capabilities enabled by the digital core – SAP S/4HANA
• Unified financial system based on a single set of harmonized, trusted, granular finance data (universal journal)
• Real-time finance processes enabling continuous accounting, real-time consolidations, and a faster and more accurate financial close
• Support for banking-specific regulatory requirements such as average daily balances, U.S. GAAP and CECL, IFRS 9, and other critical mandates

11. Traditional Scenario
Delayed close activities that do
not begin until period end
Multiple ledgers that require
time-consuming and error-prone
reconciliations
Risk of regulatory noncompliance
due to lack of transparency and
manual monitoring of processes
Risk of penalties and fines with
insufficient, manual, and error-prone
tax audit processes
Manual, time-consuming, and
effort-intensive processes
Financial data that needs to be
replicated from the financial system
into the consolidation system,
requiring data aggregation and
transformation
Executive conversation limited to
static presentations, and ad hoc
questions and analysis that need to
be taken offline for a later
discussion
Financial
accounting
Management
reporting
Compliance
and tax
Entity
close
Consolidation
Reporting
and analytics
Event-triggered execution enabled
through real-time derivation of
profitability characteristics
No reconciliation needed because
of one universal journal entry that
provides a single source of the truth
End-to-end visibility and steering
capabilities for local periodic legal
reporting
Continuous, self-auditing
tax-monitoring processes
Faster, efficient, and compliant
close process
Real-time consolidation enabled by
instant data access from integrating
transaction and master data
Transformed boardroom experience
with real-time business intelligence, ad
hoc reporting at a granular level, and
what-if analysis to make decisions
Reimagine Finance
The role of finance is evolving toward active engagement with business partners, simplifying and automating processes, enabling new questions to be asked that were
never possible and delivering new insights during the decision-making process.
Reimagine Record-to-Report Process to Enable Finance to Focus More on Strategic Tasks
A New World with SAP

12. JPMorgan Chase Rabobank Banco Atlantida
Compartamos Banco PayPal Inc. mBank SA
ATB Financial Banco Galicia
Commonwealth
Bank of Australia
Bank customers in 150
countries are innovating
with SAP solutions
81%Of the banks in the
Forbes Global 2000
are SAP customers
Top Banks and Fintechs Running SAP Solutions
>14,100
Facts about SAP and its banking customers:
▪ Our customers support more than 140 million active banking accounts across
the world
▪ Our global banking customers manage more than $70 trillion in assets
▪ Analytics solutions from SAP help track more than 6 billion U.S. stock trades
per day to identify fraud and protect investors
SAP’s Place in the Banking Industry
Global “safest” banks
run SAP software
46 of
the 50