sap loans management girish nehete

SAP Loans Management

Girish Nehete,Head, Transactional BankingSAP Asia Pacific Japan19th August 2009

Agenda

1. Introduction2. SAP Loans: Business Process3. Overview of SAP Solutions for Banking

SAP 2008 / Slide 2

Agenda


SAP 2008 / Slide 3

SAP Banking Platform Market Leader

Kaupthing BankPostbank

FORRESTER:SAP leads with agility among core banking

vendors in 2007

CELENT:SAP has won key customers in Europe

and Asia with its Core Banking productThe product is SOA-compliant through

the SAP ESA

GARTNER:Gartner believes these changes (IVN Phase II)

increase the chance for meaningfuladvances in business process service

standards for banks

SAP 2008 / Page 5 SAP 2008 / Page 5

SAP for BankingSolution Portfolio Overview

Customer Communication Channels

Enterprise ResourcePlanning

Customer Relationship Management

Core Banking

Analytical Banking

Integration Infrastructure

voice Connectivity e-mail fax SMS web mail

Marketing Sales Service

Customer Information File

Master Contract Management

Deposits Payments Collaterals

Loans Trade Finance Treasury

Business ProcessManagement

SOAManagement

Corporate bankingconnectivity

Accounting

Asset LiabilityManagement Basel II

Human Resources

Procurement

Cost Controlling

General Ledger

Corporate Services

SAP Business User

Governance, Risk andCompliance

Enterprise InformationManagement

Enterprise Performance Management

BusinessIntelligence

IAS/IFRS Profitability Limits CreditPortfolioCurrency Management

Optimization

SAP 2008 / Page 6

Industry Business Scenarios Select Customers TotalCustomers

SAP Enterprise Resource Planning 600+

SAP Business Intelligence 800+

SAP Analytical Banking 120+

SAP Transactional Banking 130+

SAP CRM for Banking 40+

Banking customer base-- 800+ Banking customers worldwide --

Industry leaders are leveraging SAP beyond ERP to address high-value industryscenarios

Agenda


SAP 2008 / Slide 7

SAP Transactional Banking Solutions

SAP 2008 / Slide 8

ATMBranchMobile Call CenterInternet

L O A N S

Deposits

Col

late

rals

Leasing

Paym

ents

Customer Information

Synd

icat

ions

Customer Relationship Management

Master Contract Management

What is SAP Loans ?

700+customersworldwide

60+insurance

comp.

110+Banks Loans is part

of most sales cases

20 newCustomers

in 2007

fits for differentbank businesses

Retail

Corporates

UniversalBanks

ConsumerLoans

ProjectFinancing Real Estate

CreditFactories

SAP 2008 / Slide 9

Expectations ofCredit Software

Market Requirements for Credit Software

Business Intelligence

Master Data Management

Integration of Information

Financial Accounting

Correspondence

Back Office Support

Various Service Channels

User-Friendly InterfaceIntegrated Workflow

Integration of People

Management ofBusiness Processes

Implementation and Interfaces

Integration of Processes

SAP Offerings for Loans Management

Technology

Processes

People

Application

One Solution for Customers with DifferentBusiness

Credit Factory

Private Bank

ConsumerLoans

Real Estate

ProjectFinancing

CorporateFinancing

Specialised

SAP Loans - Business Process

Customer Application

Contract Conclusion

Accounting

Disbursement

Contract Default

Contract End

Contract Processing

Contract Analysis

PositionManagement

Execution

NewBusiness

Portfolio

Aut

horiz

atio

n / R

elea

se

Visibility: 360 Customer View

Customer Management Loan Origination

Single Customer, Loyalty, and Marketing

Case Management

Defined Products & Product Bundles

Flexible Process Automation

Product Offers

Collateral Handling

XI Services

Sales Opportunity Management

Document Management

New products made easy!

with SAP Loans Management Product Cofigurator!

The Product Configurator

New business rules using flexible Productdefinition

?Over 30 product-specific parameters?Minimum and maximum loan amount and term? Flexible payment periods monthly or daily

configuration (s)? Payment rules pre-, under-, over- and single

payment? Payoff penalty definition, short and over payoff

handling, automated payoff processingProducts build thefoundation of the loan

Product set up allowsflexible control of business

rules and quickimplementation of change.

Integrated Loan calculator

Calculation of loan repayment rate

Calculation of loan capital

Calculation of loan term end

Calculation of loan interest rate

Automated calculation of loan repayment rate

Automated calculation of loan capital

Seamless Collateral handling

Collateral Management

LoansManagement

Corporate LoansConsumer Loans

Car LoansIslamic Banking Loans

Mortgage Loans

Collateral Workplace: Monitoring

Position Management - Highlights

? Automatic assignment of all incoming payments

? Automatic clearing of payments with receivables

? Tracking of overdue receivables

? Default functionality

Business Operations Overview

? Early repayments, partial or full? Additional charges? Individual postings? Write-offs / Charge-offs? Borrower changes

? Workplace-structured entry of businessoperations

? Business partner-based, contract-based, orproject-based selection for businessoperation entry

? Status tracking of business operations

? Reversal of any posting

? Release functionalityReversedReversed

DeletedDeletedSaved as a

plannedrecord

Saved as anactualrecord

Activate (release, if required)

Delete

Change

Delete

Reverse

Post

Entered/SavedEntered/Saved

ActivatedActivated

PostedPosted

DeletedDeleted

SAP LoansManagement

CustomerInformation

CRM

BusinessWarehouse

FinancialAccounting

CollateralManagement

Reserve forBad Debt

A Pre-Integrated Solution

SAP Loans Management Interfaces

SAP Loans Complete Business Process

Customer Application

Contract Conclusion

Accounting

Disbursement

Contract Default

Contract End

Contract Processing

Contract Analysis

PositionManagement

Execution

NewBusiness

Portfolio

Aut

horiz

atio

n / R

elea

se

Agenda


SAP 2008 / Slide 27

SAP Corporate Banking Connectivity

SAP direct corporate communication for optimal efficiency and new business revenue generation

Solution Components? SAP NetWeaver Process Integration

Some Customers

Pain areas

? High acquisition costs for acquiring newcorporate customers, especially Small and

Medium Businesses (SMBs)? Long and resource intensive implementation

process? High operating costs for servicing multiple

corporate customers? High up-sell costs to grow wallet share? Low profit margin and reduced customer

retention due to increased competition

The Solution? Reduced operational risk, improvedsecurity and increasted transactional

transparrency from end-to-end.? Tap new revenue streams across the

Financial Supply Chain and deliveryservice differentiation.

? Reduced on-boarding time, fasterrevenue realization and improved

customer satisfaction.? Near real-time transaction delivery? Standardized best-practice

implementation

SAP Core Business Transformation

SAP 2007 / Page 29

Business Process Platform for Banking Allowing for a component based approach to Core Transformation

The Solution Transformation approach to core b

Flexibility to follow components baseddeployment

Selectively replace components andtransform specific business ( ex: Loans)

Comprehensive and robust productfactory

Business Process Platform with easeof Integration

Standard software with flexibility toextend as per banks needs

Solution Components SAP Banking Services

Customer Information Deposit Management Loans Management

Collateral Management Payment Engine

Partner components Misys Trade innovation Misys Opics Treasury

Some CustomersBusiness Process Platform for Banking

Pain areas Legacy systems high maintenance cost and

lack of flexibility Complete rip and replace of Legacy systems

requires high risk transformation excercise New systems difficult to co-exist with exisiting

specialized solutions Long time to market for launching new

products

SAP Universal Banking Solution by Callatay &Wouters Thaler run on SAP

SAP 2007 / Page 30

End to End Universal Banking package offering

The Need Need for all-in-one packaged

solution Bank in a box with pre-defined and

pre-configured contents Extensibility to private wealth

management

Some Customers

SAP Business Process Platform

Deposits Loans SecuritiesTreasury

Generic Functions

Payments

AccountingInterest

&Fees

Tax MessagingAMLUser Access

&Security

Customer Information File

Internet Banking Branch Banking CRM

BusinessIntelligence

&Interfaces

Bank Analyzer & General Ledger

Regulatory Reporting

OtherChannels(ATM, IVR,

etc.)

PRIVATE

Solution Components Thaler run on SAPThaler universal banking

modules SAP Bank Analyzer

SAP General Ledger SAP Netweaver

The Solution Ready to run package solution

Universal Banking solution catering toend to end core banking components

Core banking solution with integrationinto IFRS and BASEL II

Fully integrated with ready launch padtowards SOA

Horizontal capability via combinesexpertise of SAP and C&W in Core

bankingVertical capability via proven SAP

Technology Private Wealth Management modules

SAP Centralised Customer InformationManagement

SAP Centralised CIM Solution creates a central comprehensive repository with enriched content as a singlesource of truth for the Enterprise System Landscape

Some Customers

Solution Components

SAP Business Partner SAP Business Objects Data Quality

Management SAP Business Objects Dashboard

The Solution

Enablement of improved CustomerManagement through 360 View on

customers in each and every bankingprocess

Provides foundation layer andplatform for other systems to deliver

further benefitReadiness of IT-landscape for an

improved adaptivness of processesProcesses complexity reduction by

referring only to one central source ofcustomer data

Advanced Business Intelligence Toolswith dynamic-analytics and content rich

Dash BoardsFocus on customer for business

growth

? >20 Million BusinessPartner Records

? Integration with > 41Legacy Systems



? Integration with SeibelCRM front end

Pain areas IT - Complex system landscape leading to

distributed and inconsistent CustomerInformation

Regulatory - Incomplete KYC Information Customer Channel - Multiple Versions for

Customer Information leading to poorcustomer experience

Product Management Product CentricOfferings

Sales and Marketing - Higher campaigndelivery costs, poor campaign results due to

mis-marketingCIO Business growth possible with

customer based growth strategy

SAP Enterprise Collateralization ofReceivables

SAP Collateral Management as a Enterprise Collateral Solution

Solution Components SAP Collateral Management Stand

alone or as a part of core banking SAP Portal

SAP Business Objects Dashboard

Some Customers

Pain areas Decentralized view of collateral liquidity,

exposure and pricing In-house developments / core banking does

not provide centralised viewLack of opportunity to cross sell or increase

revenue from existing clientsChanges to regulatory to adapt business

process for collateralsMissing analytical tools lot of manual work

involved

The Solution

The front- and back-end support forEnterprise-wide Management of

Collateral across complete collateral lifecycle.

Risk reduction via transparency oncollateral position (esp. bad debts)

Increased ROI on capital Business process compliance with

regulatory requirements Improve credit risk management Make use of multi currency, multi

language, multi client features Get user experience with streamlined

business processes

SAP Enterprise Credit Management Platform

SAP 2007 / Page 33

SAP Loans Management as a Enterprise Credit Management Platform

Solution Components SAP Loans Management Stand alone

component SAP Portal


Some Customers

Pain areas

Distributed loans system/ platform fordifferent lines of loans business

Time to market new products takes too long Inefficient Loan operation process

Missing simulation tools lot of manual workinvolved

The Solution

One single platform for different bankbusiness Corporate, Retail, Universal

Banks, Credit Factories, Real Estateand Project Financing

Easy configuration of new productsBusiness rules driven automated

processing Improved credit management

Make use of multi currency, multilanguage, multi client features

Get user experience with streamlinedbusiness processes

SAP Financials for Banking

SAP 2007 / Page 34

Achieve Financial Excellence through SAP solution for Integrated Accounting

Pain areas High Reconciliation effort/Costs Difficulty of audit and traceability

Integration is cumbersome Limited Ad-hoc reporting capabilities Limited proactive exception reporting

The SolutionThin and Fat Sub Ledger concept

Multi CCY/Multi GAAP End to end process for Hedge

Accounting Consolidation

Full monitoring capabilities Flexible OLAP Reporting

Solution Components SAP Financials Financial Accounting

Management Accounting SAP Business Objects Dashboard

Some CustomersReporting and Analytics

Costs ofOperations

(ManagementAccounting)

IAS/SubLedger

GeneralLedger

(FinancialAccounting)Consolidation

FinancialStatements

Source Data Layer

FinancialInstrumentAccounting

Subledger

Results Data Layer

HedgeAccounting

Fair ValueServer

HedgeAnalytics

SAP Basel II, Risk and Compliance

SAP 2007 / Page 35

Enable risk-intelligent decisions across your enterprise

Pain areas Challenges in decision making due to

lack of quality information High effort and cost to consolidate

data across disparate systems High reconciliation efforts

The SolutionConsistent and reconciled Financial

Risk data mart Credit risk engine for risk weighted

average calculations Flexible calculation processes

Regulatory reporting Limit Management

Solution Components SAP Bank Analyzer


Some CustomersReporting and Analytics

Costs ofOperations

(ManagementAccounting)

IAS/SubLedger

GeneralLedger

(FinancialAccounting)Consolidation

FinancialStatements

Source Data Layer

FinancialInstrumentAccounting

Subledger

Results Data Layer

HedgeAccounting

Fair ValueServer

HedgeAnalytics

SAP Human Capital Management

SAP 2007 / Page 36

Achieve Operational Excellence using SAP HCM

Pain areas Hiring/Training/Retaining talent lack

of tools to manage High Training costs

High costs of common businessprocess like leave processing

Difficulty of audit and traceability Poor service quality

The SolutionOne solution for more than 40

countries with full compliance to legalrequirements

Fully integrated web based trainingsystem

Fully integrated workflow for Payroll,Procurement, Training and Career

planning Integrated solution for talent

management that enables to retain topperformers and develop them.

Solution Components SAP ERP Human Capital Management

Some Customers

FindingTomorrows

Leaders

WorkforcePlanning

Finding/Retaining the Right

Talent

WorkforceAlignment

EnsureCompliance

MeasuringEffectiveness

SAP Currency Management and Optimization

SAP 2007 / Page 37

Optimize your cash and reduce expense on cash logistics

Pain areas High cost of cash handling

Over stocking of ATMs due to lack ofvisibility of demand

High transportation cost due tomultiple trips

High costs for Emergencyreplenishment

Lack of tracking of cash in transit

The Solution

Full cycle of currency supply Demand Planning Supply Planning

Supply optimization Transportation planning

Solution Components SAP Advanced Planning and

Optimization (APO) SAP ERP

SAP Business Objects Dashboard SAP Event Management

Some Customers

Cash Centre ACash Centre A Cash Centre C

Cash Centre C

Regional BranchRegional Branch

OtherBanks

OtherBanks

ATM1

ATM1

Branch YBranch Y

Branch XBranch X

ATM2

ATM2 ATM

3

ATM3 ATM

4

ATM4 ATM

5

ATM5

Cash Centre BCash Centre B

Choose your Line to your destination with SAP

Reconciliation

Security

Information Management

Customer Centricity

Embedded Analytics

Predictive Analytics

Customer Channels

Bundle Pricing/Product

Integrated Banking Solution

Core Banking Replacement

Incremental Core Banking Replacement

Payments

Collections

Working Capital Management

Wealth Management

Unbanked/Underbanked

Micro LendingNon banksIslamic Banking

SME Lending

Mergers &Acquisitions

Go International

Outsourcing/Offshoring

Green Banks

Customer Line

Information Line

Core Banking Line

Segment Line

Holistic Line

Leasing

Enterprise Risk Management

Compliance & Regulation

Thank you.

Thank You for yourattention!!!

Reconciliation

Security

Information Management

Customer Centricity

Embedded Analytics

Predictive Analytics

Customer Channels

Bundle Pricing/Product

Integrated Banking Solution

Core Banking Replacement

Incremental Core Banking Replacement

Payments

Collections

Working Capital Management

Wealth Management

Unbanked/Underbanked

Micro LendingNon banksIslamic Banking

SME Lending

Mergers &Acquisitions

Go International

Outsourcing/Offshoring

Green Banks

Customer Line

Information Line

Core Banking Line

Segment Line

Holistic Line

Leasing

Enterprise Risk Management

Compliance & Regulation

Girish NeheteHead, Transactional Banking,SAP Asia Pacific JapanGlobal Banking Line of Business

M +6592361660F +6567685413E [email protected]

SAP Summit 08 / Page 40

Thank you!

SAP Summit 08 / Page 41

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