Mayank Oracle

8/13/2019 Mayank Oracle

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Open Banking Architecture

Mayank MishraPrincipal Banking Architect

Oracle Asia Pacific


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Copyright (c) Oracle Corporation 2006. All rights reserved. 2


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Emerging Banking Trends

The Unbanked

- Microfinance Initiatives- Distribution through Partnerships (postal, retailers)

- Pre-paid cards to reduce the Risk

- New segmentsFarmers, Students, tourists

Corporate & SME

- Maximize cross sell across verticals

e.g. Trade - Treasury, Cash - MM, Custody - Treasury- Vendor Financing Converging Cash & Trade

- Structuring custom Loans Risk adjusted pricing

- Liquidity management, Sweeping

Retail

- Fee based Income (Mutual funds, Banc assurance)

- Mobile Banking

- Processing efficiency in Account Origination

- Financial Needs Analysis (life cycle driven)

- Payments Hub

New Areas of Opportunities


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IT Reality - Without an Architecture !

TreasuryTradefinance

CustomerInformationSystem

GeneralLedger

DataWarehouse

Branch network ATMNetworkCall centre InternetBanking

PrivateBanking

Insurance

Current &Savings

Accounts

ConsumerBanking

CorporateBanking

Integration problems -> in-flexibility, high cost, high risk

Fragmented Applications & Data

Fragmented Business Processes, Visibility

Fragmented Security and Management

Complex, unmanageable environment

Unscalable, Costly environment


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Framework for Customer Service Delivery

Service Unit

Sales Unit

Collaboration

Regulators

PartnerBanks & Agencies

Banks

ProductBusiness Unit

Customers

Banking Eco System Leveraging all


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Business Demands & Trends

Architecture Approach

Ideal Banking Architecture

Agenda Banking Architecture


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Copyright (c) Oracle Corporation 2006. All rights reserved.

7

Human

Capital

Risk

Management

Customer

Management

Corporate

Governance

OptimizeControl andCustomer focus

while reducing theCostandComplexity

Core Systems

Optimisation

Maintenance costs; time to market, new

products; multi-channel integration

Regulators

demanding

greater

transparencyand accuracy

Channel

optimisation and

profitability

analysis

IAS, Capital

Adequacy

requirements

being adopted invarying degrees

Administration

and training

costs; closing

the strategy-execution gap

Purpose of an architecture

To allow IT strategy to align with the business strategy


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Key objectives from IT Investments!!

Compet i t ive Advantage by B usiness Ag i l i ty

- Products & services innovat ionat affordable pr ice

- Easy Integrationof partners into the banks p ort fol io

- Reduce cost of c hangeby conf igur ing products &Services, no expensi ve IT delivery cyc les

- Suppor t Business in BPR & autom ation init iat ives

- To enhance the customer s erv ice

Better Cost al location

- Minimal Capital expenditure

- To t ie the costs to bus iness value del ivered

- Leverage techno logy to m inimize capital investment

- Lower operations r is kby reducing manual

except ion handl ing

- Reduce cos tof internal & external changeTechnolog y Independence & Re - Use

- Capabi l ity to enr ich the satel l i te systems in

the bank

- Leverage on SOA to have shared services

Infrastructure

- Real time environm ent, reduce batch w indow s

- Reduce Vendor Risk, go Open systems

- Col laborate, promoteOpen f inance init iat ives

Getting value from IT


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Architecture Selection Criteria

Architectural longevity (the changes in technology andfortune that the platform will undergo during the next threeto five years)

Availability of skills (from lower cost of ownership as well as

lower inertia point of view) Level of integration required (the amount of system

integration work the customer is required to do)

Manageability: Planning downtime, partitioning, capacity

on demand, workload management Market momentum: Independent software vendor (ISV)

and channel enthusiasm, market share, demand creation

Future Proof your Investments


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Evolution of computing Infrastructure


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Many advantages

Automate mundane processes

Reconciliations

Exception management

End to End Process EfficiencyLoan origination

Credit Card approvals

collections

Open FinanceCollaborate to offer attractive products

Processes Automation, Efficiency & Enrichment

BPEL is the future of the

integrat ion space in m y

viewWhy? Because the value

is so much higher when you

provide not only a w ay to

integrate applic ations, but also

a way to create services from

them and put them into

business processes

- John Rymer, Vice President,

Forrester Research, Inc.

Gaining Business Agility


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Customer Centric

Targeted Marketing for better

results

Readiness for compliance(KYC)

Understanding life-cycle

requirements

Understanding Customer

Customer relationship

Siebel

Legacy

PeopleSoftSAP

BroadVisionE.piphany

Chordiant

Understanding the customer better


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End-to-End InsightSiebel Analytics Integrated To Oracle FSI Analytics (OFSA)

Profitability

Analytics

Risk

Management

Operational &

Financial

AnalyticsRisk Assessment/

Quantification

Credit

Operational

MarketRegulatory Compliance

Multi Dimensional Profitability

Activity Based Costing

Transfer Pricing

CRM

Analytics

Performance Scorecards

Operational Cost Analysis

Bank Performance Analytics

Interaction History

Customer Behavior

Segment Migration

Propensity to buy

Pervasive Insight from the Back office to the Front

A banker asks . . .

What products are most profitable to sell to

whom?

How to better hit our targets?

How to improve wallet share?

Where are organizational bottlenecks?

What is our Risk Adjusted Return?


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Cost Management

Centralize the Operations

Simplify Support and Reduce Cost

Consolidate Hardware to a GRID on demand

Bring Branch processing to the center

Reduce hardware investment and software

licenses

Improve IT asset Utilization


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Collaborative Access Management

Business Process Orchestration &Management

Integration Management

Access Channels

Call

Center ATM Internet IVR Corporate

Channel

Partner

ChannelBranch

Support FunctionsTransaction Functions

Lending,Deposits

&

Accts

TradeFinan

ce

Cash

MgmtTreasury

Customer

InformationManagement

Cards&

Switch

Enterprise GL

PartnerManagement

(Suppliers,counterparti

es)

CustomerRelationshipManagement

Management Information

InvstMgmt

Risk Management

Data Management

Well defined Architecture


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Fusion Architecture - All encompassing

Technology Superiority

Documents

Mayank Oracle