Master Data Management in Financial Services Gregg Loos VP Sales MDM October 24, 2008

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Master Data Management in Financial ServicesGregg LoosVP Sales MDMOctober 24, 2008

© 2006 Oracle Corporation – Proprietary and Confidential

The Battle of Ulm: what’s true?

• In 1805 Austria and Russia formed Third Coalition against Napoleon.• Planned Date for the “battle”: October 20th • What happened? No Russians.• 70.000 Austrian Soldiers:

• 20.000 escaped,

• 10.000 killed or wounded,

• and the rest made prisoner.

• 170.000 French Soldiers: • About 6000 killed or wounded.

• Gregorian vs Julian calendar? • 12 day difference.

• First known data quality problem?


Fragmented Information Increases Risk and is Expensive to manage

““The value of information increases exponentially as The value of information increases exponentially as fragmentation is reduced.”fragmentation is reduced.”

Ellison’s LawEllison’s Law


What are banks doing? Consolidate Information Global visibility through a single source of truth

• Consolidate and standardize key operational data Customers Employees Products Payments Financial Consolidation Organizational Hierarchy

• Consolidate documents and digital assets• Consolidate servers and storage• Optimize profitability and performance through

common analytics and reporting

Insight to Action

“Business that use a formal, enterprise-wide strategy for Global Data Synchronization will realize 30% lower IT costs in integration and data reconciliation at the department level through the rationalization of traditionally separate and distinct IT projects.”


More Competitive, Lower CostsMDM value on the IT Roadmap

Deploy Grid PlatformDeploy Grid Platform

Standardize Business

Processes

ConsolidateApplications

& Data

Standardize

ServicePlatform

OptimizeInfrastructure

SourceApplicationManagemen

t

Outsource Application & Infrastructure ManagementOutsource Application & Infrastructure Management

ModernizeCore Processes

Modernize applications while transitioning to a

lower cost platformiFlex footprintInsurace footprintApplication Modernization

ModernizeCore Processes

Modernize applications while transitioning to a

lower cost platformiFlex footprintInsurace footprintApplication Modernization

Standardize Service Delivery Platform

IntegrationIntegrationBusiness Intelligence

Business Intelligence

Process Management

Process Management

User Interaction

User Interaction

StandardizeCorporate ServicesImprove efficiencies and

reduce costs:Financial MgmtHuman Capital MgmtProcurementGRC & Performance MgmtFacilities & Projects

StandardizeCorporate ServicesImprove efficiencies and

reduce costs:Financial MgmtHuman Capital MgmtProcurementGRC & Performance MgmtFacilities & Projects

Standardize Front Office

Grow revenue, improve customer retention and

reduce cost:MarketingSales & ServiceRelationship MgmtCollaboration

Standardize Front Office

Grow revenue, improve customer retention and

reduce cost:MarketingSales & ServiceRelationship MgmtCollaboration

Consolidate Information

Improve visibility and reduce cost:CustomersFinancialsOrganizationsData WarehousesDocuments

Consolidate Information

Improve visibility and reduce cost:CustomersFinancialsOrganizationsData WarehousesDocuments

1 2 3

5

6

7

4

Oracle’s Banking FootprintComplete, Open, Integrated

Corporate AdministrationCorporate Administration

Customer Analytics

ChannelAnalytics

Marketing Analytics

Exec Analytics

Funds TransferPricing

Portal & Dashboards

Business ActivityMonitoring

Business ProcessAnalytics

Op Intelligence

HR Analytics

CustomerInsightCustomerInsight

Performance ManagementPerformance Management

OperationalExcellenceOperationalExcellence

AnalyticsPlatformAnalyticsPlatform

Consolidation Budgeting

Procurement

Profitability Mgmt

Fixed Assets

Incentive Comp

Product Hub Org Hierarchy Hub Accounting Hub Credit Risk Hub

Master Data ManagementMaster Data ManagementCustomer Data Hub

Rich Client F/WAJAX, Web 2.0

Systems Mgmt Web Services MgmtDirectory Services

Enterprise Content Mgmt

Database (Grid,Memory, Embed)

Web ServicesOrchestration (BPEL)

Identity Mgmt

J2EE Services, ESB and Rules Engine

Access Mgmt

Enterprise TechnologyEnterprise Technology

ProfitabilityAnalytics/RAPM

ACH

Credit Rating

POS

SWIFT

Fed Wire

OFAC

Market Feeds

Check Order

OtherSystems

RetailRetail

Platform Teller Call Center

InternetBanking Kiosk EBPP

Private Wealth MgmtPrivate Wealth MgmtCommercialCommercial

TeamSelling

OrderMgmt

InternetBanking

SecurityTrading

ClientServicing

DerivativePricing

CRM &Marketing

LeadMgmt

Order Entry Platform

Order Entry Platform

On Demand

Customer ExperienceCustomer Experience

Call Center

Deposits

Loans

Payments

Cards(Credit / Debit)Investments

Core BankingLedgerLeasing

Payments

Deposits

TreasuryTradeFinance

AssetMgmt

SyndicatedLoans

StructuredDerivatives

Lock BoxNostroRecon

InvestorServices

Leasing Custody

Mortgages

Customer &BusinessInsight

Customer &BusinessInsight

Lifecycle ManagementLifecycle ManagementSellingMarketing ServicingOriginating

External InterfacesExternal Interfaces

Projects

Risk Based Pricing

EconomicCapital/RAPM

Operational Risk

Market Risk

Credit Risk

ALM

SOX

RegulatoryReporting

Risk Based DecisioningRisk Based Decisioning

Risk ManagementRisk Management

Governance, Risk & Compliance

Governance, Risk & Compliance

ComplianceCompliance

BASEL II& 1A

AML

Human Capital Mgmt

Enterprise GL

Product and Transaction ProcessorsProduct and Transaction Processors

CashMgmt

Real Estate

Savings Loans

Core BankingLedger

Compliance& Limits

PortfolioMgmt

TradeProcessing

Performance Mgmt

Balance & Positions

Fees & Commissions

Compensation

Clearing &Settlement

Oracle Oracle

Third Party

Integration

Market Data

Reconc

iliation

Financial Planning


Key Business issues driving MDM in Financial Services

• Risk & Compliance ie Basel II• Complicated process for client On-Boarding• Poor customer data integration across operating divisions• Disconnected Governance processes for stewarding information• High Data Management Costs for reconciliation • Inflexible system infrastructure to support “Customer Centricity”

programs ie Account Centric vs Customer Centric

• M&A!!!


MDM example in Capital Markets: Legal Entity and Credit Risk Master Data Management

Key Capabilities of an Oracle Credit Risk Hub: Sourcing and aggregating multiple vendor feeds

and internal systems Legal Entity Hierarchy Management Centralization of On boarding and KYC Risk Concentration Analysis Risk Aggregation and Reporting Data Stewardship Integration with Downstream Systems

• Improve Risk Profiles• Reduce Regulatory

Capital• Rationalize Data

Provider Spending• Reduce Manual costs• Reduce system

integration costs

ROI Opportunities:


XYZ Bank will benefit by creating an integrated view of Risk…..

• Fulfills key elements of Basel II compliance

• Greater accuracy in capital allocation• Faster reaction to changes in risk

exposure• Increased trade execution automation• Reduced costs of data management


Oracle Credit Risk Hub Highlights

• Speed of Deployment (Phase 1 90-120 Days)• Lowest Risk/Lowest Cost Integration• Hub can be leveraged across the Enterprise to

include other divisions, entity types (eg.Contacts)• Link to Retail Business• Manage multiple versions of Customer across

business lines ie Operations view, Credit view, Sales view

• Deep MDM Industry experience• Large Oracle Partner channel


Oracle Legal Entity and Credit Risk Hub

Trading Desk

CollateralMgmt

LimitSystem

InternalRatings

RiskAnalysis

SFACall

Center ERM…n

…n

Legal Entity and Credit Risk HubUniversal Customer Master

Data Stewards

Business UsersFront Office/Customer Facing Applications

Enrichment Sources

Downstream Applications

Data Quality

De-duplication

Party Data Model

PrivacyCustomer

Management

Middleware

Real-time/near real-time Master Data

Real-time/near real-time Master Data

Real time/ Batch

Master Data

ScenarioAnalysis

SecurityMaster

D&B

BANKSCOPE

Business Users

AVOX

Business Features• Complete and accurate view of the legal

entity to feed risk analysis and other downstream trading systems

• Aggregate risk exposure and profitability• Active monitoring of changes and

transactions

IT Features• Persists master data with references to

transactional data• Complete metadata management• Rules-based configuration• Service-oriented architecture• Application Integration Foundation

Oracle Hub stores relevant counterparty reference data and

associates transaction data creating rule

based events


Oracle Enterprise Master Data Management The most complete MDM offering in the market today

BudgetingBudgeting

Data Governance

Oracle Fusion Middleware

Analytical MDM AppsAnalytical MDM Apps

Operational MDM AppsOperational MDM Apps

OperationalSystems

AnalyticalSystems

Cus

tom

erC

usto

mer

Sup

plie

rS

uppl

ier

OracleProduct Hub

OracleProduct Hub

Fin

anci

alF

inan

cial

Oracle / Hyperion Data Relationship

Management

Oracle / Hyperion Data Relationship

ManagementOracle

Customer HubOracle

Customer Hub

EBSEBS

SiebelSiebel

SAPSAP

Custom AppsCustom Apps

External Apps

External Apps

DWDW

BI &DatamartsBI &Datamarts

PlanningPlanning

Financial Consolidation

Financial Consolidation

Pro

duc

tP

rod

uct

Ana

lytic

alA

naly

tical

Application Integration Architecture

OracleSite HubOracle

Site Hub

Site

Site

New

New

PSFTPSFT

JDEJDE


• Business Process Models Provide foundation for understanding your business

• Pre-built ProcessesConnect across applications quickly

• Enterprise Business Services Reduce the time to deploy and change

• Enterprise Business Objects Enable any application to plug into processes

• Application Business Conn. Svc. Application specific service translation and transformation

Application Integration Architecture –Composite Business Processes – Beyond Middleware

Open Standards Based Foundation

Common Objects and Services

Pre-built Sustainable Integrations

Best Practice Industry Processes

Oracle Application Integration Architecture

Connector

Customer Relationship Management

Connector Connector Connector

Billing and Revenue

Management

Service Fulfillment

Master Data


Partner Focus for Oracle MDM

• Focus on working 70% of the opportunities with Partners

• Implementations drive 2x-5x Services to Software revenue

• Data Governance and oversight• Retail Banking, Wealth Mgmt, Capital Markets• Life Insurance, Property and Casualty• Payers• Partner Enablement program


MDM Resources – Co-Prime Sales

Mike Rosser Group VP Chicago 415-848-3561 [email protected]

Gregg Loos MDM VP San Fran 917-533-3640 [email protected]

Christopher Dwight Bus Dev Austin 512-239-8500 [email protected]

Jonathan Beinke MDM Rep Austin 512-573-7313 [email protected]

Mark Bryan MDM Rep San Fran 415-215-5034 [email protected]

Jim Burke MDM Rep San Fran 707-338-1166 [email protected]

Ted Carroll MDM Rep New York 203-249-0337 [email protected]

Tom Kight MDM Rep Atlanta 404-668-9905 [email protected]

John Parker MDM Rep DC 415-690-9192 [email protected]

Ron Sachs MDM Rep Chicago 847-366-3342 [email protected]

Lee Jacobs MDM Rep Rochester 585-267-5297 [email protected]

Kevin Bugg MDM Rep Denver 650-430-0357 [email protected]

TBH MDM Rep


MDM Resources - Presales

Rick Beck Group VP San Fran 510-282-0229 [email protected]

Bruce Hamman Presales Seattle 206-295-9504 [email protected]

Piyush Ruparelia Presales Charlotte 407-454-4975 [email protected]

Yogesh Sharma Presales Detroit 734-674-6470 [email protected]

Phillip Nifong Presales Dallas 972-510-9879 [email protected]

Drew Wilson Presales Dallas 817-247-7993 [email protected]

Bryan Lester Presales Dallas 469-693-5171 [email protected]

Gino Fortunato Presales San Fran 415-867-4195 [email protected]

Steve Singleton Director MDM Soln Architects

Atlanta 678-315-7655 [email protected]

Dan Gage Soln Arch Columbia 803-397-6408 [email protected]

Mike Hammond Soln Arch Bridgewater 908-902-6553 [email protected]

Shirley Hoffman Soln Arch Los Angeles

310-699-7636 [email protected]


Other Key DRM Resources

David Butler Marketing San Diego 415-609-2648 [email protected]

Pascal Laik MDM Strategy

San Fran 415-260-6797 [email protected]

Manoj Tahiliani CDM Verticals


Rohit Tandon MDM Refs Chicago 630-248-4793 [email protected]

Dhiman Bhattacharjee

MDM ROI Specialist


Neeraj Gokhale Fusion MDM
