Integrated Banking: Customer Acquisition, Application, Origination, and Onboarding

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Integrated Banking: Customer Acquisition, Application, Origination, and Onboarding

Nafis HasanGlobal solution Lead – Oracle Banking PlatformBill Hyman – North America Solution Lead

September 29, 2014Session CON 8963

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | 2

Safe Harbor StatementThe following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.


Financial Services Changing – More Competition, Less Control

Customers are in Control, they Dictate the Terms of Engagement, Have Higher Expectations of Value and are Less Loyal

Channel Innovation and Competitive Process Redesign is Creating Both New Opportunities to Engage and Incremental Cost

New Market Entrants and Innovators Competing for Customers and Growth

FS Firms are Losing Control of the Message and the Brand


Oracle Delivers a Modern Approach to CX Complete Customer Experience Platform

Oracle Marketing

Integrated Customer Experience Foundation

Social Network Mobile Integrations

Oracle Sales

Oracle Service

Oracle Social

Oracle Banking

Analytic KPIs & Dashboards

Predictive Analytics


Banking Landscape is Shifting from Being Product / Accounts Centric to Customer Centric

Historically, Banking Systems have been Product and Account Centric

Now, Banks have to be Customer Centric…

… as Customer Expectations have Changed

Choice of channel (anytime / anywhere)

Price the relationship

Originate the customer, not product

Offer a financial solution, not products

Single, transparent process across the bank

Real-time

Accounts

Accounts

5


Banks have to Fundamentally Change the Way they Serve Customers

Historically, banking systems have been product and account centric

Product Out

Checking Mortgage Credit Card

But the demand on them is to be truly customer centric …

Customer In

Customer Centric Processes

Channel Services

6


Role

Social

Marketing

Self Service

Assisted Engagement

Back Office

Insight Targeting Engage Sell Originate Service

Consistent Cross Channel Customer Engagement

• 7


Manages Complete Customer Onboarding Process

Oracle BankingBanking Platform | BPM Suite | Human Workflow | Documaker

Oracle CX Sales Cloud | Seibel | Policy Automation | Real-time Decisions

Perform Prospecting

ExecuteOffer

StructureOffer

Manage Applications

Needs Assessment

Customer ExperienceOriginations

Monitor and Manage

8


Enables Progressive Transformation JourneyInterim states drive incremental benefits

Customer Centric Originations

SecurityIDM

CCO

Workflow

RulesEngine

Alerts

ProductCatalog& Bundling

Reference ProcessModel

CustomerMDM

Work-list

DocumentManagement

Configurable workflows for executing origination related activities

Contains all the product offers and bundles supported through origination

Sends notifications to the customer and internal staff on the status of the origination

Consolidated view of customer mastered across systems

Business rules driving and enforcing the parameters of the origination process

49 Origination specific business processes providing end-to-end scope

Manages the tasks required to complete the origination process

Electronic repository of all relevant documentation

Documaker Generate customer facing documents Externalized security for access management

Foundation Services

Near Term

9


Enables Progressive Transformation Journey Cont’d.Interim states drive incremental benefits

Near Term

Customer Centric Originations

Deposits

Bundled Origination

Checking

Savings

Term Deposits

Business

…

Unsecured

Auto

Mortgage

Secured

Loans

…

Line of Credit

Overdraft

…

Overdraft

Credit Card

Multi OptionFacility

Insurance(Linked to Secured Loans)

Others

…

10


Enables Progressive Transformation JourneyInterim states drive incremental benefits

CoexistNear Term

Product ProcessorsCustomer Centric Originations• Deposits • Loans • Credit Cards • Mortgages

Optional Enterprise ModulesDynamic pricing based on the customer’s total relationship including bundles

RelationshipPricing

Limits & Collateral Management

Manage limits and exposures at the relationship level instead of by product

External Interfaces• Decisioning • Fraud Detection • Behavioral Scoring• Credit

Bureau

• KYC • Address Verification

• Fulfillment • Serviceability Calculations

11


Interim States Drive Incremental BenefitsEnables Progressive Transformation Journey

• Multiple SORs with limited dependencies and disparate pricing policies

• Lack of single, consolidated customer views• Redundancies and duplicate processes

Disparate Systems of Record Coexist

NEAR TERM

• Leveraging OBP enterprise web services (EWS) to simplify core• Enhancing core banking functionality• Smaller, digestible projects with positive returns on investment• Reducing core application complexity to simplify the bank

TODAY

Mortgage

Credit Cards

Consumer Loan

CommercialLending

Deposits

CIF

CCO

12


Oracle’s solution delivers significant business benefits to customer and account origination in an accelerated and strategic manner

Multi-channel

experience

Customer-centric

Multiple / bundled products

Straight-through

processing

Standardised Processes

Multi-entity, Multi-brand

Integrated stack – Efficiency, Quality,

Service

• Progressively capture customer information, documents collection and credit decision for better customer interaction and experience

• Complete reuse of customer information and relevant documents

• Deliver Cross-Channel Common Origination experience. Customers can use the channel of choice

• Straight Through Processing to reduce operational cost.

• Opportunity to create common back office across brands

• Deliver better insight and benchmarking into operational performance & KPIs

• Enable Relationship Pricing13


Oracle’s Customer-Centric Origination Platform is designed to uplift customer and banker experience, increase productivity and efficiency

BankerCustomer

Improve Efficiency, Reduce CostStreamline process steps and maximize

automation to deliver productivity savings in front office origination and middle/back

office fulfillment processes

IT

Simplify, Simplify, SimplifyRationalize the typical “patch-work quilt” of IT

applications and vendors across the origination/fulfillment space, reduce overall

IT complexity and cost of technology ownership

Credit Policy

Keep the Bank SafeReduce loan losses arising from approvals

outside of delegated lending authority or outside of bank policy

LOB Owner

Attack the MarketEnable new business acquisition channels (e.g.

broker originated products, new brands, white-labeling of products for 3rd parties,

expansion into new geographies) on a single platform

Operations

Sell More, Sell FasterRemove process barriers to origination of multiple products, making it easy for front-

line staff to address additional opportunities

Reduced Time to “YES”Reduce/eliminate paper from the

origination/fulfillment process, with all documents produced, dispatched and stored

electronically

14


• Initially launched a “greenfield” direct banking business, UBank, to build deposits & reduce reliance on wholesale funding

• Initial roll out of the platform into NAB’s Australian Retail franchise is Customer Centric Origination

• Most transformational project currently being undertaken in Banking, in any market

• Annual cost savings of approximately $800M expected by the end of the year program

Case Study Full Domestic Retail Transformation

15

Total Assets Net Profit (Income) Return on EquityCost Income

(Business Efficiency) Ratio Total FTE

$753.8B $4.0B 14.2% 41.3% 43,336

• Global Top 50 Bank, headquartered in Melbourne, Australia

• Commercial Bank, with Retail Banking operations in Australia, New Zealand, the UK, US and international offices in Asia

Facts & Figures

Source: NAB Annual Review 2012

• Initially launched a “greenfield” direct banking business, UBank, to build deposits & reduce reliance on wholesale funding

• Initial roll out of the platform into NAB’s Australian Retail franchise is Customer Centric Origination

• Most transformational project currently being undertaken in Banking, in any market

• Annual cost savings of approximately $800M expected by the end of the year program

Strategy


Oracle Banking Platform – National Australia BankGlobal Top 50 bank, 750+ Billion Dollars in Assets

Focus Area 2009 Future State

Customer

Understanding customers 20 Partial Systems/Databases Single Customer View

Time to ‘yes’ approval <120 hours Response within minutes

Time to documentation for a simple mortgage ~20 days <1 hour

Employee

Processes Complexity impacting productivity

Simplified, improved productivity

Hand Offs during simple mortgage 12-8 3

Percentage Rework 95 <10

Employee enablement Impacted by manual processes

Improved via reduced role complexity and better

processes

BenefitsBackground and Customer Needs “Clean-sheet” business re-engineering to fundamentally

remove complexity and drive step-change in business efficiency

Remove the business and IT constraints to being an agile and innovative competitor

Enable growth strategies (multi-brand distribution and bank/wealth integration), deepen customer relationships and grow revenues

Significantly improve both the customer and banker experience making it easy for customers to do business

Transform technology from a “builder/integrator” to a “consumer” of leading vendor’s capability; in so doing, address significant obsolescence risks across the IT architecture

Deploy the solution across the enterprise without replacing existing legacy processing platforms

16


Origination Demonstration

17


Documents

Integrated Banking: Customer Acquisition, Application, Origination, and Onboarding