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 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 product”“The 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 / © 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 CreditPortfolio

Currency ManagementOptimization

© SAP 2008 /

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 Transactional Banking Solutions


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


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 parametersMinimum and maximum loan amount and termFlexible payment periods – monthly or dailyconfiguration (s)Payment rules – pre-, under-, over- and singlepaymentPayoff – penalty definition, short and over payoffhandling, automated payoff processingProducts build the

foundation 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 fullAdditional chargesIndividual postingsWrite-offs / Charge-offsBorrower 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 ComponentsSAP 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

processHigh operating costs for servicing multiple

corporate customersHigh up-sell costs to grow wallet share

Low profit margin and reduced customerretention due to increased competition

The SolutionReduced operational risk, improved

security and increasted transactionaltransparrency from end-to-end.

Tap new revenue streams across theFinancial Supply Chain and delivery

service differentiation.Reduced on-boarding time, faster

revenue realization and improvedcustomer satisfaction.

Near real-time transaction deliveryStandardized best-practice

implementation

SAP Core Business Transformation

© SAP 2007 /

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 bank’s 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 /

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 SAP•Thaler 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

banking•Vertical 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 360º View on

customers in each and every bankingprocess

• Provides “foundation layer” andplatform for other systems to deliver

further benefit•Readiness of IT-landscape for an

improved adaptivness of processes•Processes complexity reduction by

referring only to one central source ofcustomer data

• Advanced Business Intelligence Toolswith dynamic-analytics and content rich

Dash Boards•Focus 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-marketing•CIO – 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 view•Lack of opportunity to cross sell or increase

revenue from existing clients•Changes to regulatory to adapt business

process for collaterals•Missing 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 /

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 products•Business 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 /

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 Solution•Thin 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)ConsolidationFinancial

Statements

Source Data Layer

FinancialInstrumentAccounting

Subledger

Results Data Layer

HedgeAccounting

Fair ValueServer

HedgeAnalytics

SAP Basel II, Risk and Compliance

© SAP 2007 /

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 Solution•Consistent 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)ConsolidationFinancial

Statements

Source Data Layer

FinancialInstrumentAccounting

Subledger

Results Data Layer

HedgeAccounting

Fair ValueServer

HedgeAnalytics

SAP Human Capital Management

© SAP 2007 /

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 Solution•One 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

FindingTomorrow’s

Leaders

WorkforcePlanning

Finding/Retaining the Right

Talent

WorkforceAlignment

EnsureCompliance

MeasuringEffectiveness

SAP Currency Management and Optimization

© SAP 2007 /

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]

mailto:[email protected]

http://www.sap.com

© SAP Summit 08 /

Copyright 2008 SAP AGAll rights reserved

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changedwithout prior notice.

Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.

SAP, R/3, xApps, xApp, SAP NetWeaver, Duet, SAP Business ByDesign, ByDesign, PartnerEdge and other SAP products and services mentioned herein as well as their respective logos aretrademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned and associated logos displayedare the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary.

The information in this document is proprietary to SAP. This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This documentcontains only intended strategies, developments, and functionalities of the SAP® product and is not intended to be binding upon SAP to any particular course of business, product strategy,and/or development. SAP assumes no responsibility for errors or omissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, orother items contained within this material. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties ofmerchantability, fitness for a particular purpose, or non-infringement.

SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitationshall not apply in cases of intent or gross negligence.

The statutory liability for personal injury and defective products is not affected. SAP has no control over the information that you may access through the use of hot links contained in thesematerials and does not endorse your use of third-party Web pages nor provide any warranty whatsoever relating to third-party Web pages

Weitergabe und Vervielfältigung dieser Publikation oder von Teilen daraus sind, zu welchem Zweck und in welcher Form auch immer, ohne die ausdrückliche schriftliche Genehmigung durchSAP AG nicht gestattet. In dieser Publikation enthaltene Informationen können ohne vorherige Ankündigung geändert werden.

Einige von der SAP AG und deren Vertriebspartnern vertriebene Softwareprodukte können Softwarekomponenten umfassen, die Eigentum anderer Softwarehersteller sind.

SAP, R/3, xApps, xApp, SAP NetWeaver, Duet, SAP Business ByDesign, ByDesign, PartnerEdge und andere in diesem Dokument erwähnte SAP-Produkte und Services sowie diedazugehörigen Logos sind Marken oder eingetragene Marken der SAP AG in Deutschland und in mehreren anderen Ländern weltweit. Alle anderen in diesem Dokument erwähnten Namenvon Produkten und Services sowie die damit verbundenen Firmenlogos sind Marken der jeweiligen Unternehmen. Die Angaben im Text sind unverbindlich und dienen lediglich zuInformationszwecken. Produkte können länderspezifische Unterschiede aufweisen.

Die in diesem Dokument enthaltenen Informationen sind Eigentum von SAP. Dieses Dokument ist eine Vorabversion und unterliegt nicht Ihrer Lizenzvereinbarung oder einer anderenVereinbarung mit SAP. Dieses Dokument enthält nur vorgesehene Strategien, Entwicklungen und Funktionen des SAP®-Produkts und ist für SAP nicht bindend, einen bestimmtenGeschäftsweg, eine Produktstrategie bzw. -entwicklung einzuschlagen. SAP übernimmt keine Verantwortung für Fehler oder Auslassungen in diesen Materialien. SAP garantiert nicht dieRichtigkeit oder Vollständigkeit der Informationen, Texte, Grafiken, Links oder anderer in diesen Materialien enthaltenen Elemente. Diese Publikation wird ohne jegliche Gewähr, wederausdrücklich noch stillschweigend, bereitgestellt. Dies gilt u. a., aber nicht ausschließlich, hinsichtlich der Gewährleistung der Marktgängigkeit und der Eignung für einen bestimmten Zwecksowie für die Gewährleistung der Nichtverletzung geltenden Rechts.

SAP übernimmt keine Haftung für Schäden jeglicher Art, einschließlich und ohne Einschränkung für direkte, spezielle, indirekte oder Folgeschäden im Zusammenhang mit der Verwendungdieser Unterlagen. Diese Einschränkung gilt nicht bei Vorsatz oder grober Fahrlässigkeit.

Die gesetzliche Haftung bei Personenschäden oder die Produkthaftung bleibt unberührt. Die Informationen, auf die Sie möglicherweise über die in diesem Material enthaltenen Hotlinkszugreifen, unterliegen nicht dem Einfluss von SAP, und SAP unterstützt nicht die Nutzung von Internetseiten Dritter durch Sie und gibt keinerlei Gewährleistungen oder Zusagen überInternetseiten Dritter ab.

Alle Rechte vorbehalten.

sap loans management girish nehete

Documents

banking sap

banks sap

sap crm

sap analytical banking

sap business intelligence

overview of sap solutions

banking customers

business process3