Architectural longevity (the changes in technology and fortune that the platform will undergo during the next three to five years) •Availability of skills (from lower cost of ownership as well as lower inertia point of view) •Level of integration required (the amount of system integration work the customer is required to do)
Trang 1Open Banking Architecture
Mayank Mishra Principal Banking Architect Oracle Asia Pacific
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Emerging Banking Trends
The ‘Unbanked’
- Microfinance Initiatives
- Distribution through Partnerships (postal, retailers)
- Pre-paid cards to reduce the Risk
- New segments – Farmers, Students, tourists Corporate & SME
- Maximize cross sell across verticals
e.g Trade - Treasury, Cash - MM, Custody - Treasury
- Vendor Financing – Converging Cash & Trade
- Structuring custom Loans – Risk adjusted pricing
- Liquidity management, Sweeping
Retail
- Fee based Income (Mutual funds, Banc assurance)
- Mobile Banking
- Processing efficiency in Account Origination
- Financial Needs Analysis (life cycle driven)
- Payments Hub
New Areas of Opportunities
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IT Reality - Without an Architecture !
Customer Information System
General
Private
Current &
Savings Accounts
Consumer
Integration problems -> in-flexibility, high cost, high risk
Fragmented Applications & Data
Fragmented Business Processes, Visibility
Fragmented Security and Management
Complex, unmanageable environment
Unscalable, Costly environment
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Framework for Customer Service Delivery
Service Unit
Sales Unit Collaboration
Co st
M an ag em
en t
Pe rfo rm an c
e
M an ag em e
n t
Compli ance Readin ess
P roc ess
Effi cie nc
y &
En ric hm
en t
C u st o m e
r
S a tis fa ct
n
Rev enue Gene ration
Regulators
Partner
Banks & Agencies Banks & Agencies Partner
Bank’s
Product
Business Unit
Bank’s
Product
Business Unit
Customers
Banking Eco System – Leveraging all
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• Business Demands & Trends
• Architecture Approach
• Ideal Banking Architecture
Agenda – Banking Architecture
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7
Human Capital
Risk Management
Customer Management
Corporate Governance
Optimize Control and Customer focus while reducing the Cost and Complexity
Core Systems Optimisation
Maintenance costs; time to market, new products; multi-channel integration
Regulators demanding greater transparency and accuracy
Channel optimisation and profitability analysis
IAS, Capital Adequacy requirements being adopted in varying degrees
Administration and training costs; closing the strategy-execution gap
Purpose of an architecture
To allow IT strategy to align with the business strategy
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Competitive Advantage by Business Agility
- Products & services innovation at affordable price
- Easy Integration of partners into the banks portfolio
- Reduce cost of change by configuring products &
Services, no expensive IT delivery cycles
- Support Business in BPR & automation initiatives
- To enhance the customer service
Better Cost allocation
- Minimal Capital expenditure
- To tie the costs to business value delivered
- Leverage technology to minimize capital investment
- Lower operations risk by reducing manual
exception handling
- Reduce cost of internal & external change Technology Independence & Re - Use
- Capability to enrich the satellite systems in the bank
- Leverage on SOA to have shared services
Infrastructure
- Real time environment, reduce batch windows
- Reduce Vendor Risk , go Open systems
- Collaborate, promote Open finance initiatives
Getting value from IT
Trang 9Copyright (c) Oracle Corporation 2006 All rights re
Architecture Selection Criteria
• Architectural longevity (the changes in technology and fortune that the platform will undergo during the next
three to five years)
• Availability of skills (from lower cost of ownership as well
as lower inertia point of view)
• Level of integration required (the amount of system
integration work the customer is required to do)
• Manageability: Planning downtime, partitioning, capacity
• Market momentum: Independent software vendor (ISV) and channel enthusiasm, market share, demand creation
Future Proof your Investments
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Evolution of computing Infrastructure
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• Business Demands & Trends
• Architecture Approach
• Ideal Banking Architecture
Agenda – Banking Architecture
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limited flexibility and re-use with
ever-increasing maintenance costs
provides business, process and data components that are re-useable
across product lines
Legacy Business Model New Services based Business Model
Product
development
Reporting
Interest/Fees
Accounts
Facilities
Payments
Product development Reporting
Interest/Fees
Accounts
Facilities
Payments
Product development Reporting
Interest/Fees
Accounts
Facilities
Payments
Product development Reporting
Interest/Fees
Accounts
Facilities
Payments
Deposits Loans Cash Treasury
Product Development Reporting Interest/Fees Accounts
Facilities Payments
Deposits Loans Cash Treasury
Moving Away from a product-focused design
To a Reusable Design
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Many advantages
Automate mundane processes
Reconciliations Exception management
End to End Process Efficiency
Loan origination Credit Card approvals collections
Open Finance
Collaborate to offer attractive products
Processes Automation, Efficiency & Enrichment
BPEL is the future of the integration space in my view… Why? Because the value is so much higher when you provide not only a way to integrate applications, but also a way to create services from them and put them into business
processes
- John Rymer, Vice President, Forrester Research, Inc
Gaining Business Agility
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Customer Centric
Targeted Marketing for better
results
Readiness for compliance
(KYC)
Understanding life-cycle
requirements
Understanding Customer –
Customer relationship
Siebel
Legacy
PeopleSoft SAP
BroadVision E.piphany
Chordiant
Understanding the customer better
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End-to-End Insight
Siebel Analytics Integrated To Oracle FSI Analytics (OFSA)
Profitability
Analytics
Profitability
Analytics
Risk Management
Risk Management
Operational &
Financial Analytics
Operational &
Financial Analytics
Risk Assessment/
Quantification
• Credit
• Operational
• Market
Regulatory Compliance
Multi Dimensional Profitability
Activity Based Costing
Transfer Pricing
CRM Analytics
CRM Analytics
Performance Scorecards Operational Cost Analysis Bank Performance Analytics
Interaction History Customer Behavior Segment Migration Propensity to buy
Pervasive Insight from the Back office to the Front
A banker asks
What products are most profitable to sell to whom?
How to better hit our targets?
How to improve wallet share?
Where are organizational bottlenecks?
What is our Risk Adjusted Return?
A banker asks
What products are most profitable to sell to whom?
How to better hit our targets?
How to improve wallet share?
Where are organizational bottlenecks?
What is our Risk Adjusted Return?
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Cost Management
Centralize the Operations
Simplify Support and Reduce Cost
Consolidate Hardware to a GRID – on demand
Bring Branch processing to the center
Reduce hardware investment and software
licenses
Improve IT asset Utilization
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Collaborative Access Management
Integration Management
Access Channels
Call
Center ATM Internet IVR Branch Corporate Channel Channel Partner
Support Functions Transaction Functions
Lending,
Deposits
&
Accts
Trade Finan ce
Cash Mgmt Treas ury
Customer Information
Management
Cards
&
Switch
Enterprise GL
Partner
Management
(Suppliers, counterparti es)
Customer
Relationship Management
Management Information
Invst Mgmt
Risk Management Data Management
Well defined Architecture
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Fusion Architecture - All encompassing
Technology Superiority
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Thank You