ing’s global front-to-back office transformation with pega ...€¦ · ing’s global...

Harry van de Witte and Saurabh Joshi

ING’s Global Front-to-Back

Office Transformation with

Pega KYC and Pega CLM

CEO Ralph Hamers:

“ING wants to be a tech

company with a banking license.”

Tribe

Squad Squad Squad Squad Squad

Chapter

2004 2018

2 releases per year 2 releases per month

Business, IT-DEV, IT-OPS separate BizDevOps Teams

Managers and project managers in

the leadAutonomous Squads

Less management

Testers, designers, developers,

OPS engineers

Product managers, marketing managers,

formule managers, functional maintenance

T Shaped IT engineers

Customer Journey Experts

VERSUS

Trend Towards Open Source

• What is it?

• Vendor software?

• Licenses?

• Are you kidding me?

• Why?

Pega…?

Tool selection

1. Global Standard for Know Your Customer

2. Global standard for WFM /

CaseManagement

Choice based on:

• Capabilities OOTB

• Layer cake / reuse

• Applications

• Integration

• Open standards

• Success in ING NLPega

Pega Selected

2014

‘Reactive’

2015

‘Sufficient’

2018

‘A step ahead’

• Unable to react appropriately

• Pressure from regulators

• GAPS closed just in time

• Temporary not sustainable processes

• Resource intensive

• Crappy tooling

• Convenient customer experience

• Implement changes in time

• Efficient & sustainable KYC capabilities

Know Your Customer Challenges

June

2016

Oct

2016

April

2017

May

2017June

2017

Oct

2017

Feb

2018

Sep

2018

Inception Week Private Banking

Kick off Squad (9 FTE)

Private Banking Live

Start 3 New Teams

New FEC Legislation + Mass Live

FEC Small Businesses Live

Remediation & Event Handling Live

Small Businesses Onboarding LiveStart up KYC Global

Jan

2018

Know Your Customer –

Customer Due Diligence Case

Know Your Customer –

Customer Due Diligence Case

• Private banking / small medium enterprises / mass segment

• 10 services

• 25.000+ cases

• 250+ active users

• Pega 7.2 + KYC 7.2.2

• Ootb rules re-use 80-20

• Configuration for KYC Types and approval processes

Know Your Customer –

CDD & Alert Handling

MAGIC HOUDINI

B.V

MRS. HOUDINI

HOUDINI PENSION

INVESTMENTSMAGIC

HOUDINI B.V

MRS.HOUDINI

HOUDINI PENSION

INVESTMENTS

MR. HOUDINI

MR. HOUDINI

Cluster Cases

Cluster Cases

Work Management

Know Your Customer – KYC Types

• Implementation for Mass/SME segment

• Listener to process xml data load and create cases

• Most cases are STP

• Around 70.000 cases in production

Know Your Customer – Remediation

Pega Platform

Pega APP: FSIF, KYC and CLM

ING APP: CLMAPP

ING App: CLM

ING + ING DB Layer

ING CIM Integration Layer

ING APP:

KYC

ING App: KYC, AHH

ING APP:

AHH

ING Pega Hotel

Pega

Layer Cake

Give / receive

information

Waiting

Visit

ING Branch

Customer pains

22 fields+ ID

+ KVK Nr

Branch of choice or

online

No reject3

KYC Signatoryapproval

KYC CAMprint mail

for Zapping

1-2 workday+ 2 days

activation

Reject 1% of total

4,6% of non-Jive

Customer receives

pickup request log in code

Customer gets log in code

Branch near business address

60,600

15,85015,850

61,500

2,2102,9405,9005,9005,900

20,300

65,100

Form is filled in at

ING Branch(~10 FTE)

Form is processed at ING Zapping

(16 FTE)

Customer can fully bank at

ING

Read mail from ING

0-1 workdays

Read mail from ING

1 workday

KYC CAMScan docs for

KYC MKB(LWD)

1-2 workdays to send to

HLW

KYC minimalreview(HLW)

0-1 workdays1

~5% reject is handled by

Zapping4

Moment of

rejection

KYC MKB On- boarding

review

questions+ docs

via e-mail

~ 3-4 weeks

In this step: ~50% quits2

KYC minimalmake work

item for KYC MKB (HLW) 68% FTR

received

0workdays

71%

75% 29% ~50%

31% 2%

1 workday

25% rejects

Jive 69%

Waiting Times for Customer

LateRejections

Handovers

Many Systems

Duplicate Data Entry

IncompliantCustomers

Onboarding Current Process

• Compliant

• Consistent process

• Easy to use

• Changeability

• Better onboarding customer experience

• One integrated CLM/KYC solution

Benefits Program

• OOTB customer journeys

• KYC types logic

• OOTB Data model

• Score cards

• Customer Master Profile

• OOTB functions

Benefits CLM / KYC Applications

Customer Master Profile

Lessons

Learned

• 4 teams working on 1 application

• Automated testing is key

• DevOps / continuous integration mindset

• Discussions LSA’s

• Stakeholder management end users

• Stability Pega shared infrastructure

Lessons Learned

• Know Your Customer for remaining user groups

• Improve efficiency

• Straight through

• Customer Self service

• Integrate with Datalake

• Integrate Netherlands and Belgium

Roadmap

Reinventing Ourselves in Every Market is

No Longer an Option…

The ING of Tomorrow Has One Experience

Built on One Global Foundation

• Requirements sessions

• Minimum viable products for:

1. Private banking in Luxembourg

2. Small businesses in Poland

3. Mass customers in Spain

• Share knowledge / reuse from NL

KYC Global

42

Questions?

Backup slides

44

INGKYC

Customer Due Diligence Customer Activity

Monitoring

Systematic Integrity Risk Assessment (SIRA)

Custo

mer

Beha

vio

r &

Data

Monitori

ng

CD

D I

de

ntification &

Veri

fication

Custo

mer

Assessm

en

t

Generic

Auditin

g

Tra

inin

g &

Com

munic

atio

n

Repo

rtin

g &

MI

Customer

Administration

Digital

ArchiveS

mart

CD

D J

ourn

ey

Orc

hestr

ato

r

Additio

nal A

naly

tics

Datalake & Analytics

Data &

Intelligence

Tri

gg

ers

Onboarding

Periodic

Other Events

Post T

ransactio

n

Monitori

ng

Remediation

Inte

gra

l C

DD

Ris

k P

rolie

Mgt.

FEC

CRS

FATCA

ESR

Our KYC End State

• Business Lending

• Personal Loans

• Know Your Customer

• Mortgages

• Fraud

• Onboarding

• Account Opening

• Payment Investigation (Smart Investigate)

• Customer Decision Hub (Sales Offers Belgium)

Pega Use Cases in ING

Continuous Delivery as a Service

Customer i.e Organisation