Post on 04-Jun-2018
transcript
8/13/2019 Mayank Oracle
1/19
Open Banking Architecture
Mayank MishraPrincipal Banking Architect
Oracle Asia Pacific
8/13/2019 Mayank Oracle
2/19
Copyright (c) Oracle Corporation 2006. All rights reserved. 2
8/13/2019 Mayank Oracle
3/19
Copyright (c) Oracle Corporation 2006. All rights reserved. 3
Emerging Banking Trends
The Unbanked
- Microfinance Initiatives- Distribution through Partnerships (postal, retailers)
- Pre-paid cards to reduce the Risk
- New segmentsFarmers, 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
8/13/2019 Mayank Oracle
4/19
Copyright (c) Oracle Corporation 2006. All rights reserved. 4
IT Reality - Without an Architecture !
TreasuryTradefinance
CustomerInformationSystem
GeneralLedger
DataWarehouse
Branch network ATMNetworkCall centre InternetBanking
PrivateBanking
Insurance
Current &Savings
Accounts
ConsumerBanking
CorporateBanking
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
8/13/2019 Mayank Oracle
5/19
Copyright (c) Oracle Corporation 2006. All rights reserved. 5
Framework for Customer Service Delivery
Service Unit
Sales Unit
Collaboration
Regulators
PartnerBanks & Agencies
Banks
ProductBusiness Unit
Customers
Banking Eco System Leveraging all
8/13/2019 Mayank Oracle
6/19
Copyright (c) Oracle Corporation 2006. All rights reserved. 6
Business Demands & Trends
Architecture Approach
Ideal Banking Architecture
Agenda Banking Architecture
8/13/2019 Mayank Oracle
7/19
Copyright (c) Oracle Corporation 2006. All rights reserved.
7
Human
Capital
Risk
Management
Customer
Management
Corporate
Governance
OptimizeControl andCustomer focus
while reducing theCostandComplexity
Core Systems
Optimisation
Maintenance costs; time to market, new
products; multi-channel integration
Regulators
demanding
greater
transparencyand accuracy
Channel
optimisation and
profitability
analysis
IAS, Capital
Adequacy
requirements
being adopted invarying degrees
Administration
and training
costs; closing
the strategy-execution gap
Purpose of an architecture
To allow IT strategy to align with the business strategy
8/13/2019 Mayank Oracle
8/19
Copyright (c) Oracle Corporation 2006. All rights reserved. 8
Key objectives from IT Investments!!
Compet i t ive Advantage by B usiness Ag i l i ty
- Products & services innovat ionat affordable pr ice
- Easy Integrationof partners into the banks p ort fol io
- Reduce cost of c hangeby conf igur ing products &Services, no expensi ve IT delivery cyc les
- Suppor t Business in BPR & autom ation init iat ives
- To enhance the customer s erv ice
Better Cost al location
- Minimal Capital expenditure
- To t ie the costs to bus iness value del ivered
- Leverage techno logy to m inimize capital investment
- Lower operations r is kby reducing manual
except ion handl ing
- Reduce cos tof internal & external changeTechnolog y Independence & Re - Use
- Capabi l ity to enr ich the satel l i te systems in
the bank
- Leverage on SOA to have shared services
Infrastructure
- Real time environm ent, reduce batch w indow s
- Reduce Vendor Risk, go Open systems
- Col laborate, promoteOpen f inance init iat ives
Getting value from IT
8/13/2019 Mayank Oracle
9/19
Copyright (c) Oracle Corporation 2006. All rights reserved. 9
Architecture Selection Criteria
Architectural longevity (the changes in technology andfortune that the platform will undergo during the next threeto 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
on demand, workload management Market momentum: Independent software vendor (ISV)
and channel enthusiasm, market share, demand creation
Future Proof your Investments
8/13/2019 Mayank Oracle
10/19
Copyright (c) Oracle Corporation 2006. All rights reserved. 10
Evolution of computing Infrastructure
8/13/2019 Mayank Oracle
11/19
8/13/2019 Mayank Oracle
12/19
8/13/2019 Mayank Oracle
13/19
Copyright (c) Oracle Corporation 2006. All rights reserved. 13
Many advantages
Automate mundane processes
Reconciliations
Exception management
End to End Process EfficiencyLoan origination
Credit Card approvals
collections
Open FinanceCollaborate to offer attractive products
Processes Automation, Efficiency & Enrichment
BPEL is the future of the
integrat ion space in m y
viewWhy? Because the value
is so much higher when you
provide not only a w ay to
integrate applic ations, 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
8/13/2019 Mayank Oracle
14/19
Copyright (c) Oracle Corporation 2006. All rights reserved. 14
Customer Centric
Targeted Marketing for better
results
Readiness for compliance(KYC)
Understanding life-cycle
requirements
Understanding Customer
Customer relationship
Siebel
Legacy
PeopleSoftSAP
BroadVisionE.piphany
Chordiant
Understanding the customer better
8/13/2019 Mayank Oracle
15/19
Copyright (c) Oracle Corporation 2006. All rights reserved. 15
End-to-End InsightSiebel Analytics Integrated To Oracle FSI Analytics (OFSA)
Profitability
Analytics
Risk
Management
Operational &
Financial
AnalyticsRisk Assessment/
Quantification
Credit
Operational
MarketRegulatory Compliance
Multi Dimensional Profitability
Activity Based Costing
Transfer Pricing
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?
8/13/2019 Mayank Oracle
16/19
Copyright (c) Oracle Corporation 2006. All rights reserved. 16
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
8/13/2019 Mayank Oracle
17/19
Copyright (c) Oracle Corporation 2006. All rights reserved. 17
Collaborative Access Management
Business Process Orchestration &Management
Integration Management
Access Channels
Call
Center ATM Internet IVR Corporate
Channel
Partner
ChannelBranch
Support FunctionsTransaction Functions
Lending,Deposits
&
Accts
TradeFinan
ce
Cash
MgmtTreasury
Customer
InformationManagement
Cards&
Switch
Enterprise GL
PartnerManagement
(Suppliers,counterparti
es)
CustomerRelationshipManagement
Management Information
InvstMgmt
Risk Management
Data Management
Well defined Architecture
8/13/2019 Mayank Oracle
18/19
Copyright (c) Oracle Corporation 2006. All rights reserved. 18
Fusion Architecture - All encompassing
Technology Superiority
8/13/2019 Mayank Oracle
19/19
Copyright (c) Oracle Corporation 2006. All rights reserved.
19
Thank You