Oracle Solutions for Financial Services Industry
Agenda - Oracle for Financial Services
Industry TrendsCustomersISV Partner SolutionsOracle Products-Oracle Application Server
Financial Services Industry Drivers
Consolidate InformationAddress Privacy & Security
Consolidate InformationAddress Privacy & Security
GlobalizationGlobalization
Corp. Control / Local ActionDeliver Efficiently
Corp. Control / Local ActionDeliver Efficiently
IndustryConsolidation
IndustryConsolidation
BanksBanks
Capital Capital MktsMktsFirmsFirms
InsuranceInsuranceCompaniesCompanies
Payments/Payments/ProcessingProcessing
ResearchResearch
Labor & Labor & MaterialsMaterials
ClearinghouseClearinghouse
Deliver Innovative ProductsProvide Flexible OfferingsDeliver Innovative ProductsProvide Flexible Offerings
NewCompetitors
NewCompetitors
RetailRetailCustomerCustomer
BusinessBusinessCustomerCustomer
DistributionDistributionPartnersPartners
RegulatorsRegulators
Drive Customer ProfitabilitySearch for Aggregated DataDrive Customer ProfitabilitySearch for Aggregated Data
MarginsMargins
Total IT Spend – over $250B per IDC
Oracle’s Financial Services Focus & Strategy: Core Segments
Slow to change and modernizeTypically laggard in technology adoptionStratified between Life, P&C, HealthFinancial health outlook is okayReal focus is on cost containmentParticularly those who demutualized
More advanced technologyTypically globally diversifiedAnalytically more complexHistorical tendency to build allFinancial health outlook is poor Better in “buy side” firms
Financial health is good particularly in retail banking. Multinationals hurt most. Transaction volumes/assets are upTrying to rationalize customers & channelsLots of product silos Many products are loss leaders
FinancialFinancialServicesServices
BankingBanking
InsuranceInsurance
Capital Capital MarketsMarkets
Segment Trends Sample Clients
Integrating Customer Data from Multiple ApplicationsMove from fragmented batch scenario to an online integrated Scenario
Financial Financial ServicesServices
Data Data Integration & Integration & ConsolidationConsolidation
Enterprise Enterprise Performance & Performance &
ComplianceCompliance
Customer Customer Insight & Insight &
ManagementManagement
BankingIntegrating Customer Data from Multiple ApplicationsDeliver new product to market fasterMove to intra-day/ Real time vs batch
CapitalMarkets
Insurance
Move from product to customer focus. Providing true customer repository Customer real time access to information
Move from product to customer focus. Channel integration across customers, agents, brokersCustomer real time access to information
BASEL II Anti-Money LaunderingGlobal Imaging andArchiving/C21Sarbanes-OxleyGramm-Leach Bliley
BASEL II Anti-Money LaunderingSarbanes-OxleyGramm-Leach BlileyT+1
HIPAA Sarbanes-OxleyGramm-Leach Bliley
Straight Through Processing(STP). The information must flow between front-middle-back office systems and externally.
Single view of the customer across systems allows for individualized marketing and sales
Initiatives
Oracle’s Financial Services Focus & Strategy: Initiatives
Financial Services Industry Transformation
• Fragmented and Discrete Systems
• Weak Information Comprised of Partial Data
• Product Centric• Manual, Paper-Based Service
Model• Inefficient Operational Silos
• Fragmented and Discrete Systems
• Weak Information Comprised of Partial Data
• Product Centric• Manual, Paper-Based Service
Model• Inefficient Operational Silos
• Single, Shared Global Repositories
• Improved Analysis Based on Integrated Data
• Customer Centric• Streamlined and Intelligent
Customer Interaction• Automated, Integrated
Processing
• Single, Shared Global Repositories
• Improved Analysis Based on Integrated Data
• Customer Centric• Streamlined and Intelligent
Customer Interaction• Automated, Integrated
Processing
Today Today TomorrowTomorrow
OracleAS Financial Services Customers
Customer Success Story: Banking
OracleAS powers BarclaysTop 15 Global Banks, Retail Bank Standard
2.3 Million Branch, Card, e-Customers Served with Oracle9iASHigh Transaction Rates, Messaging, Servlets, EJBs
Heterogeneous Environment - Vignette, DB/2, MQ-SeriesOther Projects Starting - Integration, Wireless
Competitive Win vs IBM
Customer Success Story: Banking
OracleAS powers CitibankOne of the Top Financial Service Company in the World
9iAS Runs Wireless and Investment ApplicationsOracle9iAS J2EE, Wireless and Forms
J2EE Applications Aggregates Financial Data for Reporting
Customer Success Story: Capital Markets
OracleAS powers UBS World’s leading provider of Wealth Management Services
Analyst and Broker Dashboard Portal-25,000 usersThe portal includes over 2000 pages and 600 portlets
Heterogeneous Environment - 100 applications SSO/Oracle Directory infrastructure
Customer Success Story: Capital Markets
OracleAS powers Fidelity Investments Largest Mutual Fund Company in the US
OFSA and Discoverer based multi-dimensional profitability system Supports the allocation of costs and revenues along multiple dimensions
Customer Profitability up 18%Handling 10 million customers and 100M transactions
Customer Success Story: Insurance
OracleAS powers JLT GroupThe Jardine Lloyd Thompson group
is the world’s fifth largest insurance broker.Business Processes automated by OracleAS ProcessConnect
will manage the Life cycle from Placement to Sign Down.Insurance Reps and JLT employees can track status and
create business exception management rules. Competitive Win vs BEA and IBM
Oracle’s Products
Oracle’s ISV Partners for Financial Services
Solution Map – Retail Banking
Risk Mangement
Electronic Bill Pay
Core Banking Check21
*Pega Systems, *Alogent, *FiServ, *Unisys, *Netapp,
*NCR,*Xenos,*Synoran
FiServ, Temenos, I-Flex, Argo Data, *Financial Fusion,
SuperSolutions, Pentasoft
Document Management
Documentum, FileNetCheckFree,
*Bottomline Tech, Pentasoft
Fair Isaac, *Algorithmics, *Mantas, Pentasoft
* Recruiting to use OracleAS
Solution Map – Capital Markets
Identify new drug targetsIntegrate volumes of datePerform complex analysisDeliver drug targets to trials
Complex processesRegulatory pressuresManage quality Minimize recall risks
FiServ, *Summit Systems,
*IQ Systems, *Wall Street,
*Financial Fusion, *ADP
*Sungard Trading, Integral
Fair Isaac
Algorithmics
*Mantas, *Pentasoft
TradingTradingRisk Risk
ManagementManagement Document Document ManagementManagement
Clinical TrialsMost complex segmentHighly regulatedIntense IT requirements
Complex customer networksRequire focused campaignTrack product useSecure MD loyalty
X.Eye, netDecide,*Sanchez
*Solcorp, *Advent, *Fincentric,
FTI
DocumentumFileNet
Wealth Wealth ManagementManagement
* Recruiting to use OracleAS
Solution Map – Insurance
Identify new drug targetsIntegrate volumes of datePerform complex analysisDeliver drug targets to trials
Complex processesRegulatory pressuresManage quality Minimize recall risks
FiServ, *Perot Systems
Sungard, *Amerillium Systems DocumentumFileNet
Document Document ManagementManagement Electronic Bill Electronic Bill
PayPay
Clinical TrialsMost complex segmentHighly regulatedIntense IT requirements
Complex customer networksRequire focused campaignTrack product useSecure MD loyalty
CGI, VRC, *Solcorp, *Sungard SherwoodeBAO, *Fadata, *Computer Professionals*TIA Technologies
Checkfree, *Bottomline Tech
Claims Claims Processing Processing and Admin.and Admin.
Enterprise Enterprise Insurance Insurance SolutionSolution
* Recruiting to use OracleAS
J2EE, &Web Services
Portals
WirelessBusinessIntelligence
e-Business Integration
Management &Security
Performance &Caching
Problem: Monolithic ApplicationsInflexible, Inefficient, Hard to Maintain
Print Invoices
Generate POs
Credit Verification 1
User Authentication 1
Account Validation 1
Create Customers
Credit Verification 2
User Authentication 2
Account Validation 2
Hard to adapt to changing business requirements
Duplication of functionality means wasted resources
Small fixes require large investments of time and labor
Print Invoices
Generate POs
Authentication Service
Account Validation
Service
Create Customers
Credit Verification
Service
Build applications from modular business services
Standardized interfaces for reuse & interoperability
Self-describing for easy discovery and binding
Reusable ServicesLower Development Costs, Improve Flexibility
Oracle Application Server 10g
Service Development FrameworkRapid Development of Business Services
Productivity with Choice– Visual and declarative environment– Complete development framework– “My JDeveloper” personalized interface
Full Web services lifecycle support– Model, develop, deploy, debug, test, tune– XML metadata for simplified maintenance
Complete standards support– SOAP, WSDL, UDDI, WS-I– Interoperability with .NET
Collaborative development– Integration with SCM tools Oracle JDeveloper 10g with ADF
Customer Success Story: OC4J
OracleAS powers Manulife Limited#1 Insurance Provider in Hong Kong and Canada
Over HKD$29.9 Billion Total Asset under Administration Web-based Benefit Application Developed with J2EE
Next Phase is to Integrate with Oracle Forms
Leverage Existing InvestmentsWrap IT Assets as Web Services
DatabaseStoredProcedure
SOAP
SOAP
SOAP SOAP
ExternalSupplier
OracleASIntegration
PackagedApplication
LegacyApplication
Any Data Source
Exchanges
Business Process Management
Transformation
3rd Party Apps
E-BusinessSuite
Custom Apps
ApplicationAdapters
MessagingSystems
Intelligent Routing
Integrate Your Business
Logging Validation Security MonitoringTransactionManagement
– Improve Efficiency using integrated business processes – Integrate applications within your enterprise & trading partners – Single solution for EAI, B2B, and Web Services
Customer Success Story: Integration Server
OracleAS powers Tower FinancialIn Operation Since 1869 with NZ$21.2B in Asset
Provides Life Insurance, Fund and Trustee ManagementUse Oracle9iAS Integration (EAI) to Integration 18 Products"We selected Oracle9i Application Server over BEA, IBM and Microsoft as the corporate
integration platform to integrate 18 product administration systems across the entire Tower Group. With the integration features of Oracle9i Application Server, we completed phase one
of the project integrating four such systems in only 10 weeks." – Greg Reimann, Group
Enterprise Architect, Tower Limited
Publish Services as PortletsAllow Users to Interact with Web Services
ApplicationDeveloper
Import
Public UDDIRegistry
Expense reporting
…Stock quotesNews feedsTravel reservationsProcurement
Lead trackingCampaign planning
Sales forecasting
Portlet Catalog
Publish Personalize
Personalize
Personalize
Customer Success Story: Portal
OracleAS powers AEGONUsing Oracle9iAS Portal, AEGON Spain created a self-
service application, Mi Cartera, for Customers.By using Oracle CRM and Portal, a 10% reduction in
customer churn is expected."Mi Cartera is very popular with clients because it gives them 24-hour access to their policy details and ensures they receive a personalized service from us. Oracle's self-service content
publishing tools allow us to create and post information very easily on the portal, and our customers can pull their information at their convenience. Oracle Portal provides a very cost-effective framework for implementing our CRM strategy." – Enrique Mendizabal, E-
Business Director, AEGON Seguros Espana
Universal Access to the EnterpriseExtend your business, mobile enable your workforce
Direct Business Impact– Increase Employee Productivity– Reduce Operation Costs– Improve Customer Service
Lower Your Costs– Increased productivity reduces
labor costs– Reuse of existing devices reduces hardware
costs – Single, standard development paradigm
reduces development costsIncrease Your Flexibility
– Multi-channel access to applications– Wireless connectivity options: online or
offline (manual or adaptive switching)– Integration with mobile network services
Customer Success Story: Wireless
OracleAS Wirless Powers Citibank SingaporePart of CitiGroup, preeminent global financial services companyBuilding mobile banking services in Singapore to off-load routine services to low cost channels and enable customer service reps
to perform value added activities.Using Oracle9iAS Wireless to support mobile banking
‘"What we found most compelling about Oracle 9iAS Wireless was the openness and totality of the platform, its telco and device agnosticism, and its ability to integrate with Citibank's various
computing platforms." --D.K. Sharma, Regional Director, E-Commerce Technology, Asia Pacific
Oracle Reports Developer– Sophisticated, high quality web reports – HTML, HTML/CSS, PDF, XML, XLS– Unlimited data formatting– High quality report visualization– Integration with Database
Build and Deploy Web Reports
Oracle Reports Services– Application server based reporting– Data and application security on the web– Pluggable Datasources, Security– Integration with Oracle Portal– Personalization via XML
Easy Self-Service Information Access with Oracle Discoverer
Easy to Use– One Click– Wizard Driven– Drag and Drop Layout
Increase Productivity– Drill Everywhere– Integration with Reports,
Portal– DB Integration
Fast, Accurate Information
Customer Success Story: Business Intelligence
OracleAS powers Banco AgricolaLargest Bank in Central America
Over HKD$29.9 Billion Total Asset under Administration Web-based Benefit Application Developed with J2EE
Next Phase is to Integrate with Oracle Forms
Speed up your Web sites and Applications
Any Data Source
Servlet / JSP
Perl
PL/SQL
Portal
Wireless &Mobile
Browser
– Serves Dynamic and Static Content Faster– Supports more users with fewer web servers / less hardware– Higher reliability with surge protection and loadbalancing
Apa
che
Web
Cac
he
Any Application / Web Server
Internet / intranetUsers
High AvailabilityClustered App and Data Servers with no single point of failureand transparent application failover
Load Balancers (or Web Caches)
Wireless &Mobile
Browser
Internet / intranetUsers
Oracle RACApache Web Serversw/ Load Balancing
• Web Cache receives request.
• Detects down Apache node.
• Re-routes request.
• Apache receives request.
• Detects down Application node.
• Re-routes request.
• App Instance receives request. (Has shared session state information.)
• JDBC (w/ TAF) detects down 9i instance and re-routes request.
• Oracle9i instances share persistent state.
Cluster 1J2EE Application ‘A’Session State Shared
Centralized Identity ManagementEnsure Security While Lowering Cost
Secure centralized access across entire systemCustomized privileges
– By group, roles, users– Manage, update, view
Support for 3rd-party solutions for secure access to legacy applications
Single Sign-On Reduce Management Costs; Improve Productivity
Reduce the cost of resetting passwords ($300 per user / per year, IDC)Users login once to access applications & content
Enterprise Grid Computing
10g
Virtualize and Pool
Resources
AutomateUser & Resource Provisioning
Manage Application
Service Levels
Ensure High Quality of Service
Virtualized Middleware ServicesUse Resources Effectively on Low-Cost HW
HTTP Server
Web CacheJ2EE Server
Group resources and services by application
Oracle 10g
Implement One from Many; Manage Many as One
Virtualize resources on low-cost hardware
Allocate resources dynamically
Automate provisioning
Centralize monitoring and management
Oracle Application Server 10g Feature Summary
HTTP HTTP (Apache + mods)J2EE / Web ServicesJ2EE / Web ServicesTopLinkTopLinkXML (XDK)XML (XDK)Management (OEM)Management (OEM)JDeveloper JDeveloper (5 (5 LicLic.).)Portal Portal Content Mgmt. SDK (Content Mgmt. SDK (iFSiFS))Forms Forms Directory & Cert. AuthorityDirectory & Cert. AuthorityIntegration & Workflow Integration & Workflow Caching Caching Business Intelligence Business Intelligence Wireless Wireless Personalization Personalization
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EnterpriseEnterpriseStandardStandardJavaJavaServicesServices
Best Application Server for the Oracle Database
Single Oracle platform for:– Development --> Deployment --> Management
Development:– Strongly integrated toolset (iDS)– Single, Unified Development Platform for Java, XML, and SQL
Deployment:– Availability – Failover, RAC, standby– Performance – Fastest J2EE implementation– Security – 1 Unified security model for middle tier and back-end – Scalability – Clustering, transactions/messaging optimized– Globalization – 1 globalization model for middle tier and back-end
Management:– 1 management and monitoring tool for the middle tier and back-end– Complete end-to-end transaction tracing