kash aziz sap forum may 11 2016 presentationv3.2

Digital Transformation in Banking

Kashif Al Aziz

Industry Director – Financial Services, SAP

May 11, 2016

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 2Public

Bank 2.0YESTERDAY

Infrastructure, Risk, ProcessesRegulation Focused

Paper Documentation, Silo SystemsDisconnected Data

ATMs, Bank BranchesLimited Communication

Bank 3.0TODAY

Online and Mobile BankingDigitally Empowered

Anywhere, AnytimeConvenient

Self-serviceProduct-Oriented


Bank of the future

Branch ATM Web Mobile

0 – 1

Visit / Month

3 – 5

Visit / Month

7 – 10

Visit / Month

15 – 30

Visit / Month

The bank of tomorrowwill not be a place people go.

Instead, it will go with them wherever they go.


88%of customers look for financial products online.

Empowered customers do their research at home and open accountsonline

78%

of the total time customers spend researching credit cards happens online – an average of 3.5 hours.

62%of the total time customers spend researching mortgages happens online – an average of 11.5 hours

SOURCE – GOOGLESource: Google Financial Service Team, September 2013

3%MOBILE

29%BRANCH

68%ONLINE

AccountOpenings


Market Players are different

19TH CENTURY VS 21ST CENTURY

• AWARENESS

• INTEREST

• DESIRE

• ACTION

SHARE RESEARCH

SHOP

PURCHASETRIGGER

EVENT

COMPARE

$20bn spent globally on mobile devices

80-90% of simple products will be purchasable online

and via mobile in the next five years Source: Bain Consulting


Emerging FinTechcompanies disrupting the market, banks arejoining the race…

10% Acquired

07% Subsidiaries

20% Partnerships

43% Startups

20% VC funds

Source: SAP


Source: Gartner CIO

Priorities 2016

Digital Bank: Partnerships and Competition…

47% of executives expect their firms to enter

into a partnership with a Google, Amazon or Facebook in the next 12 months.

49% expect their digital partnerships to

result in a business model change at their firms.

56% believe most companies will have to be

part of a network to leverage technology trends.

50% of executives said their partnerships

have already proven value ‘beyond doubt’.

Source: The Economist


Customers are in control of the relationship.

The traditional rules of marketing, sales, and service are changing.

The customer journey is omni-channel and complex.

Rules of engagement have also changed …

By 2018, one-third of the top twenty market share leaders in most industries will be

significantly disrupted by new competitors (and ‘reinvented’ incumbents).” Source: IDC


What is digital transformation?

Source: Virtrium

Altimeter defines digital

transformation as:

“The realignment of, or new investment in, technology and business models to more effectively engage digital customers at every touch-point in the customer experience lifecycle.”


Segment of ONE customer

IDENTIFY

NEED

RESEARCH

OBTAIN

QUOTE

USE

PRODUCT

CONTRACTOBTAIN

INFORMATION

ADD

FEATURE

RATE

ITEM

HELP AND

SUPPORT

INVOICING

PROBLEM

MAKE A

PAYMENT

SOLVE

PROBLEM

LOYALTY

BONUS

JOIN

GROUP

COMPLAINT

CHANGE

ADDRESS

ADDITIONAL

PURCHASE

OBTAIN

QUOTE

REFER

FRIENDS

WEB

PRINT

DIGITAL

ADVERTISING

WORD OF

MOUTH

SOCIAL

MEDIA

TV

RETAILERS

WEB

SITE

ANALYSES

KEYWORD

SEARCHES/

ADVERTISING

CONTACT

CENTER

WEB

SITE

E-MAIL

SOCIAL

MEDIA

RETAILERSWEB

SITE

CONTACT

CENTER

CONTACT

CENTER

RETAILERS

CONTACT

CENTER

CONTACT

CENTERSOCIAL

MEDIA

WORD OF

MOUTH

SOCIAL MEDIA

E-MAIL

SUPPORT

PORTAL

?

SUPPORT

PORTAL

?

BRAND

COMMUNITIES

?

Are all customers alike?

SOZIALE MEDIEN

FREUNDE

WERBEN

BEWERTUNG

POSTEN

GRUPPEN

BEITRETEN

BESTELLUNG

ÜBERWACHEN

PAKET

ERHALTEN

FEHLENDER

POSTEN

TELEFON

EINRICHTEN

ABRECHNUNGS-

PROBLEM

ZAHLUNG

TÄTIGEN

TELEFON-

SCHADEN

SERVICE

KÜNDIGEN

NETZWERK-

PROBLEM

CHANGE

ADDRESS

ANGEBOT

ERHALTEN

IDENTIFY

NEED

RESEARCH

OBTAIN

QUOTE

USE

PRODUCT

SERVICE

NEU BEGINNEN

KAUFENCONTRACTOBTAIN

INFORMATION

ADD

FEATURE

RATE

ITEM

HELP AND

SUPPORT

INVOICING

PROBLEM

MAKE

PAYMENT

SOLVE

PROBLEM

LOYALTY

BONUS

JOIN

GROUP

COMPLAINT

CHANGE

ADDRESS

ADDITIONAL

PURCHASE

OBTAIN

QUOTE

REFER

FRIENDS

WEB

PRINT

DIGITAL

ADVERTISING

WORD OF

MOUTH

SOCIAL

MEDIA

TV

RETAILERS

WEB

SITE

ANALYSES

KEYWORD

SEARCHES/

ADVERTISING

CONTACT

CENTER

WEB

SITE

E-MAIL

SOCIAL

MEDIA

RETAILERSWEB

SITE

CONTACT

CENTER

CONTACT

CENTER

RETAILERS

CONTACT

CENTER

CONTACT

CENTERSOCIAL

MEDIA

WORD OF

MOUTH

E-MAIL

SUPPORT

PORTAL

?

SUPPORT

PORTAL

?

BRAND

COMMUNITIES

?

Awareness

Interest

Decision

Purchase

Usage

Purchase

Recommendation marketing

Decision

Usage

SOCIAL MEDIA

1212

Of course NOT …

Because every customer

has a unique approach.


Personalized

Offers

Location-

Based

Offers

Real-Time

Customer

360


Only 6% of banksare able to personalize marketing using deep insights on preferences, behavior, sentiments


What do you need?

Customer segmentation strategy

Real-time data platform

Smart Analytics:

Predictive … Social media

Risk, Credit, Markup etc.

Events stream processing capability



Seamless Banker

?


Call Center

AgentSupervisor

Teller

Self-Service

Kiosk

Universal Banker

Only 11% of FSIshave a 360⁰ view of their customers, providing consistent experience across all products and channels


What do you need?

Omni-channel strategy


The right CRM components

Business analytics

Universal Banker


Business Networks


Payment Processing

Cash Management

FX Trade FinanceAP/AR

AutomationReconciliation

Business Networks

Over $12 Trillion in Spend


What do you need?

Business Network Model

Agile Business Connectivity Platform

Simplified User Experience with

Scalability

Business Networks


Effective Prudence


• Policy Mgmt.• Process & Controls• Simulate• Disclosure & Certification

Compliance

Effective Prudence

Risk

Management• Identify• Assess • Prioritize• Mitigate

Governance• Define Policy• Enterprise Risk View• Regulations Oversight • Monitor Performance

31% LowerCompliance and risk mgmt. FTEs per billion US$ in revenue when issues/reports are efficiently extracted and shared


What do you need?

Risk governance strategy


Business Analytics

Risk data model and framework

Effective Prudence


SAP HANA PLATFORM

Customer Experience Omni-Channels

WorkforceEngagement

Big Data & Internet of Things

Supplier CollaborationBusiness Networks

HANA CLOUD

PLATFORM

SAP FIORI

Digital CoreTransformation

SAP Framework for Digital Transformation


Omni-Channels

Unified GRC platform,

Risk Data ModelBusiness Networks

Data Platform & Analytics

Customer

Segmentation,

Predictive,

Omni-Channels

Straight Through event

Processing

Core of Digital Banking


Omni-channel platform

Digital Banking

Financial foundation channel services (entitlement, messaging, alerts, …)

Digital banking service solutions

SAP Digital Banking Customer Centricity Framework

OData/REST/HTTP

Digital Commerce

Content management

Customer experience management

Commerceservices

Guided quotingand selling

Channel management services – MA(D)P, MAM(SAP Mobile Platform: Security, audit, admin, offline data, app lifecycle)

Retailbanking

Commercialbanking

Mobile money

…

Service-oriented

architecture

INTERNET MOBILE E-MAIL CALL

CENTERMARKET

PLACES

INTERNET

OF THINGS

CONTACT

CENTERPOS MARKETING

CHANNELS

DIGITAL

GOODSSOCIAL

NETWORKS

SAP HANA : Real-time Solution

SAP CRMAnalytics solutions

from SAP

Core banking solutions

from SAP

Process orchestration and integration

Non-SAP systems

P P

P P P

P

Digital Marketing

Customer data management

Next best action, Predictive

P

Planning and budgeting

Targeting/customer insight

Cross-channel campaign execution

Thank youContact information:

Kashif Al Aziz

Industry Director, Financial Services

Riyadh, Saudi Arabia

[email protected]شكرا@SAPFORBANKING

discover.sap.com/digital-banking

mailto:[email protected]

kash aziz sap forum may 11 2016 presentationv3.2

Presentations & Public Speaking