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Technology Imperatives in the New Normal
Maximo Diez
Senior Director
Financial Services Business Unit
Oracle EMEA
Financial Crisis – 2008…….
Profound industry transformation
continues to sweep across EMEA
• Government interventions in major banking institutions across EMEA with focus on cost contention and return to profitability
• Major consolidation in UK, Germany, and restructuring of “Cajas” landscape in Spain, including increased capital requirements
• EC rescue packages for troubled countries put additional pressure on banks and financial institutions (Greece, Ireland, Portugal,…)
• Basel III introduces significant changes in the way Banks calculate, report, and comply their capital and risk requirements
• Industry “Winners” investing to enlarge the gap
1.Focus on Risk, Compliance and Regulation.
4. Strategic Cost Management
5. Building Agile Systems
Leaders will focus on strategic capabilities
3. Improving Customer Sales & Service Focusing on a client-centric model to deliver the next
generation of value-added products/services.
2. Optimizing Core Banking Operations Core Banking for Competitive Advantage
Leveraging New Technology – SOA, eXtreme
Performance
Packaged Software & Software as a Service (SaaS),
Investment in Enterprise Risk & Finance
Transformation
• Credit Risk Pricing and Management
• Liquidity Management
• Balance Sheet and Capital Management (Stress Testing)
• Revision to Basel II Basel III
• Internal Capital Adequacy Assessment Process (ICAAP)
• Revision to IFRS – IFRS 9
• Fast Payout – Deposit Guarantee Scheme
• ICB Report on Ring-Fencing Retail and Investment Banks
•
…. Never Waste a Crisis Needed the Crisis to Do Basic Reform of The Financial Sector
Performance Management
Risk Management
Customer Insight
Governance & Compliance
Oracle Financial Services Analytical Applications
Treasury Risk
Credit Risk
Governance and Compliance Regulatory Compliance (Financial Crime)
Channel Insight
Analytical CRM
Anti-Money Laundering
Trading Compliance Broker Compliance
Fraud Detection Operational Risk
Retail Credit Risk
Corporate Credit Risk
Portfolio Analytics
Marketing Analytics
Service Analytics
Channel Usage
Channel Performance
Economic Capital
Regulatory Capital
Liquidity Risk Stress Testing
Economic Capital Advanced (Credit Risk)
Operational Risk Economic Capital
Performance Management and Finance
Accounting Hub
Activity-Based Costing
Consolidation Profitability
Oracle Financial Services Analytical Applications
Budgeting and Forecasting
Hedge Management IFRS 9 – IAS 32/39
ICAAP
Customer Profitability
Stress Testing
Asset Liability Management
Market Risk
Basel II
Retail Portfolio Risk Models and Pooling
Funds Transfer Pricing
Loan Loss Forecasting Pricing Management
RAPM
Know Your Customer
Reconciliation
Performance Management
Risk Management
Customer Insight
Governance & Compliance
Balance Sheet Planning
Source Systems
Subsidiary Bank Systems
Source Systems
Oracle Enables Enterprise Risk & Finance Transformation
Common Staging Area
Customer
Account
Transactions
Enterprise
Dimensions
Data
Quality
Financial
Recon
Adjustmnts
Ledger
Information Delivery
Dashboards, Reports, Ad
Hoc
OLAP Analysis
Alerts & Exception Based
Management
Financial & Management
Accounts
Analytical Applications for Management Reporting
(Analytical data store and engines)
Profitability
Enterprise Performance Management(OFSAA)
FTP Planning ALM
Basel II LRM & ICAAP
Operational Risk
Stress Test
Enterprise Risk Management
Open Systems Platform - Database, Middleware and Hardware
Financial Accounting
Hub
Corporate Admin
Financial Management
Accounting Rules
Engine
Detail Accounting
Data
General Ledger
Daily Average Balance
Financial Consolidation
Financial Adjustments
Thin GL Thick GL
AP, AR, FA
Retail Banking
CA & SA
Deposits
Loans
Payments
Collections
Corporate Banking
Corporate Deposits
Cash Mgt
Bills & Collection
FX & MM
Un
ifie
d A
nal
ytic
al M
etad
ata
Building Blocks Shared Components across Applications
FINANCIAL SERVICES ANALYTICAL APPLICATIONS DATA MODEL
FINANCIAL SERVICES BUSINESS INTELLIGENCE
Data
Sources
Reports Alerts Dashboards Embedded
Purpose Built Engines Common Tools Business Rules Stochastic Modeling
Common Objects Common Dimensions Pre-Integrated/ Extensible
High Volume
FINANCIAL SERVICES ANALYTICAL APPLICATIONS FRAMEWORKS
ASSET|LIABILITY MANAGEMENT
BALANCE SHEET PLANNING
PROFITABILITY MANAGEMENT
BASEL II REG CAPITAL
CUSTOMER INSIGHT
Extreme Performance in FSI
Oracle Profitability Manager to
execute 172 allocation rules
across 250 million accounts
+ 1 billion transactions
Reduction from 48 hrs to 4
hours and 45 minutes.
Oracle Basel II for Regulatory Capital
Calculations on Exadata Database
Machine X2-2 executing Risk-Weighted
Asset Calculations On 65 million
exposures in only 1 hour and 29 minutes
Oracle Liquidity Risk Management on
Exadata Database Machine X2-2 Business-
as-usual liquidity gaps for 370 million cash
flows 65 million accounts in just 69 minutes.
Stressed liquidity gaps in only 10 minutes.
1.Focus on Risk, Compliance and Regulation.
4. Strategic Cost Management
5. Building Agile Systems
Leaders will focus on strategic capabilities
3. Improving Customer Sales & Service Focusing on a client-centric model to deliver the next
generation of value-added products/services.
2. Optimizing Core Banking Operations Core Banking for Competitive Advantage
Leveraging New Technology – SOA, eXtreme
Performance
Packaged Software & Software as a Service (SaaS),
Investment in Enterprise Risk & Finance
Transformation
Improving customer
centricity and clear
understanding about
customers
Inefficiencies and inflexibility
in providing differentiated
products and services
Lacking automation in
controls, risk
management and
compliance
Operating with very
high systems cost of
ownership due to ongoing
maintenance and
integration
Obsolete,
batch-based and fragmented
processes and
architectures
Implementing these strategies presents a challenge for
most banks due to the intrinsic limitations of existing IT
systems
Source: Oracle Insight
High Risk
High Cost
High Complexity
The Migration Challenge:
Target Architecture & Roadmap
What’s the right
transformation
roadmap?
CORE RENEWAL PLANS BY BANK ASSET SIZE
% respondents
Survey of 37 banking institutions
Core Banking Transformation Strategies
Source: Oracle Insight; Financial Insights; Economist study
0%
20%
40%
60%
80%
$10M-100M $100M-1B $1B-10B $10B-100B >$100B
Enhance Existing Systems Replace System
CORE RENEWAL IMPLEMENTATION STRATEGIES
% respondents
Survey of 100 global banking institutions
Not
considering
core renewal
Regionally
(e.g. country,
state)
Departmenta
l (e.g. retail,
corporate,
branches)
Run new
system in
parallel, then
switch all at
once 27%
29%
32%
12%
Renewal/Expansion Strategies
Package Installs, or
Rip & Replace
Evolutionary, Component
& SOA-based
• More preferred by smaller
to mid-size banks, or
subsidiaries and
international operations
of large banks
• Replace legacy core
banking application (e.g.
retail deposits,
commercial lending,
Internet Banking) with
new package solution
• Implementation can be
phased by department,
region, etc.
• A progressive
transformation,
preferred and suited for
large banks
• SOA approach to extent
life of existing systems
• Swap out with or install
package application
where significant gaps
in legacy system
• Strive for complete
replacement over time
Progressive Transformation Approaches
Front End Back End Middle Business Component End-to-End
Risk-Cost-Complexity
Process Transformation: - Progressively transform business
processes spanning across
multiple systems, e.g.:
- account opening,
- account
servicing/management, etc.
- Composite Application
Development
- Requires foundational architecture
investment
Business Capability
Transformation: - Progressively transform
selected business capability
components, e.g.:
- By core banking product:
current accounts,
checking accounts,
mortgages, loans, etc.
- By common
services/processors:
limits management,
collateral management,
etc.
Business Architecture
Transformation: - Progressively transform
complete business
capabilities
- Distribution,
- Manufacturing,
- Service & operations
+ _
Best-of-Breed Functional Components: Comprehensive Coverage For Business, Consumer
and Private Banking
ALL USERS Customers Agents White Label Staff Partners
TOUCH POINTS Internet Mobile/PDA KIOSK Phone Surface Mail ATM Branch
Lending Retail Corporate Financing Broking Funds Asset Mgmt Treasury
DISTRIBUTION
PLATFORM
Distribution
Processing Marketing Sales Origination Service
Infra Services Workflow SLA Escalation Offers Dashboard Personalisation Alerts
Business
CORPORTE
ADMINISTRATION
Finance
Risk
Compliance
HR
Procurement
MANUFACTURING AND TRANSACTION PROCESSING
Deposits Wealth Management Lending Distribution Processing
Term Deposits
Target Savings Plan
Certificate of Deposits
Safe Deposit Box
Savings/ TXN Accounts
Standing Orders
Profiling & Planning
Asset Allocation
Simulations
Performance Analysis
Portfolio Administration & Valuation
Portfolio Definition
Corporate Actions
Mutual Funds
Order/ TXN Capture
Loans
Scoring
Mortgages
Revolving Loans
Impaired Assets Management
Decisioning engine
Collections
Leasing
Overdrafts
Loan Syndications & Project Loans
Foreign Exchange
Money Markets
Swaps & FRAs
Securities
Features & Options
Letters of Credit & Bank Guarantees
Bills & Collections
Funds Transfer
Cash & Liquidity Management
Nostro Reconciliation
SHARED
SERVICES
Customer Master Entitlements Limits
Payments Reports Expense Processing Alerts & Notifications
Charges
Collateral Management
Pricing
SECURITY
SERVICES Authentication Multi Factor Authentication Access Control Identity Federation Single Sign On One Time Password
Engineering Applications and Technology Together
to Delivery Extreme Performance
• Offers banks the ability to transform their
operations on a modern business
infrastructure
• scale seamlessly to meet escalating
transactional volume requirements
• It would take 8 IBM P6 instances of 28
cores each and multiple storage boxes to
achieve this performance level
• Demonstrates Oracle’s unmatched ability
to meet the rigorous processing needs of
the world’s largest financial institutions
Oracle FLEXCUBE Benchmark on Exadata V 2 is an example for this approach, with 100
Million Accounts Processed for EOM in 4 Hrs 23 Mins
A Leading Asian Bank Saved 75% by Moving to
Unix from Mainframe
CUSTOMER PERSPECTIVE “Introducing Oracle FLEXCUBE means for Banca
Transilvania, an investment in cutting edge
technology, enabling us to continue to take
advantage of our current growth, while also
expanding through our ability to launch new products
and services to our customers quickly. BT was
looking for an integrated solution for core banking
that was based on new technologies, and that would
be capable of sustaining our development for years
to come. Oracle FLEXCUBE fit the bill, providing us
with a value for money solution and valued expertise
alongside it through their partnership with Trend
Export-Import SRL.”
CUSTOMER OVERVIEW
Banca Transilvania is one of Romania’s top five banks,
with four main business lines: retail banking, SME
banking, corporate banking and healthcare division. The
bank currently has 1.5 million active customers, 6 million
accounts and more than 500 branches and agencies
across Romania.
CHALLENGES/OPPORTUNITIES • Ensure to meet the double digit YoY growth requirements
• Need an integrated, efficient, cost-effective and modern
international banking system
• Improve the customer experience and address the
challenges of risk and compliances
• Ability to launch new products and services to their customers quickly
SOLUTIONS • 2 x Half Rack Oracle Exadata X2-2 DB Machine
• Oracle Sun SPARC servers for Application Tier
• FLEXCUBE UBS - solution supports all of the four
business l
http://www.oracle.com/us/corporate/press/228321
RESULTS
• Enabled bank specialists to make decisions
faster than their competitors, especially in
the area of calculating interest rates
• Enabled bank employees to rapidly develop
new products and business lines, delivering a
competitive advantage
• Improved response time by 20X to 30X,
accelerating access to vital business
information for bank employees and
management
•Reduced maintenance costs and energy costs
Case Study Banca Transilvania – FLEXCUBE UBS on Exadata “Double digit operational growth”
1.Focus on Risk, Compliance and Regulation.
4. Strategic Cost Management
5. Building Agile Systems
Leaders will focus on strategic capabilities
3. Improving Customer Sales & Service Focusing on a client-centric model to deliver the next
generation of value-added products/services.
2. Optimizing Core Banking Operations Core Banking for Competitive Advantage
Leveraging New Technology – SOA, eXtreme
Performance
Packaged Software & Software as a Service (SaaS),
Investment in Enterprise Risk & Finance
Transformation
Customer Experience Management • Customer Insight • Loyalty • Treatment • Customer Service
Distribution Management - Financial Services
End State Point of View
Effective Sales Execution
• Marketing: Campaign Mgt.
• Sales: Territory Mgmt., Campaign Mgmt., CRM, integrated analytics
• Platforms: Wealth, Branch, Onboarding, Originations , Billing
• Seamless Service
• Knowledge Management
• Proactive offer generation
• Content Management
Bu
sin
es
s In
tell
igen
ce
, M
eta
Da
ta
Ma
na
gem
en
t a
nd
Co
ntr
ols
• Reference Data
• Data Mastering
• Business Process
• Business Intelligence
• Complete Repository
– Account
– Transaction
– Interaction
– Agreements
Customer Centric Information & Governance
Retail Bank Investment Strategies
5%
5%
8%
10%
13%
15%
15%
23%
26%
31%
33%
49%
54%
Reputation management
Developing new product propositions
Improving pricing capabilities
Streamlining the branch network
Other
Improving credit risk management
Developing new customer segmentation approaches
Reducing adminstration and processing costs in …
Improvind brand and marketing capabilities
Improving physical branch distribution networks
Improving customer insight capabilities
Integrating multi-channel distribution
Developing and improving new channels
What are your top four strategic investment priorities for customer management and distribution?
Source: Accenture “Customer 2012: Global Banking Survey”, Aug 2010
Channel Platform
Channel
Management
Distribution Management - Overall Architecture (Logical View)
Channel Functionality
Cross Channel Framework
System Integration / Backend Isolation
Core Backend Systems
Security
External Systems Core Banking
System CRM
Securities
Positions &
Trading
Portfolio
Management
Channels
Market Data
Layout, Look &
Feel, Navigation
Multi
branding Internationalization Customization
Personalization
AuthN, AuthZ
SSO
Provisioning Content Management
Channel Specific Rendering
Core Business Processes & Services
Integration (Channel Adapters, Protocol Adapters, Messaging, Transformation, EAI, ETL)
Management
Configuration
Deployment
Monitoring
DWH /
ODS
Security
Transactions Inquiry Advisory Service Onboarding
Online Banking Public Web
Branch
Channel Call Center POS ATM
Web Analytics
Mobile
© 2012 Oracle Corporation – Proprietary and Confidential
Rabobank
CUSTOMER PERSPECTIVE
“The single, complete view of the
customer and prospects means we are
now able to track and trace lead
management from start to end.”
Tonnie van der Horst, Program
Manager
COMPANY OVERVIEW
• Rabobank is by far the largest and most dense network in the Netherlands consisting of 2,942 contact points.
• 7 MM customers, 1200 branches • Full range of banking services
CHALLENGES/OPPORTUNITIES
• Improve multi-channel customer service • Link the call center, the internet & local branches • Reduce time to market for new products • Increase focus on individual customer
SOLUTIONS
• Standardize front office application “cockpit” • Set up and implement new business processes • Provide continuity, stability, simplicity and cohesion
RESULTS
• Sales/banker/day increased 45%
• Cross-selling up 1% a month
• All 300 community banks use one front
office system
• Rolled out to all users in 18 months
• Client data, client contact information,
lead and sales information is consistent
across the bank
• Lead-management process and
management control successful
• Can now measure results & reward
performance
NAB: Banking 2.0
• UBank, a new direct channel offering,
focused initially on savings products
• UBank has been designed for customers
wanting an easy-to-use online and
telephone banking service
• Customers will be offered a new website and
a 24-hour 'person-to-person' Direct Banking
Centre
• UBank will operate under NAB's banking
licence, offering the same depositor
protection as that provided to existing NAB
customers.
"UBank will allow us to compete for the 'self serve banking' customer segment. Our aim is to attract a new set of retail customers while operating independently to NAB's other retail brands” – Greg Sutherland, Executive
General Manager, Star Direct & Marketing
Jibun Bank (Japan): Banking 2.0
Mobile Banking for virtual bank with mobile as primary channel
Joint venture between 2nd largest mobile service provider (KDDI) and largest bank in Japan (Bank of Tokyo Mitsubishi)
Services offered include
30+ banking services
New Customer Acquisition and Account Opening via Mobile
Automated KYC process for existing mobile customers
Inquiries and Transactions for all products including CASA, Term Deposits
Common authentication for Mobile and Internet
Mobile to Mobile Transfer
Multi Factor authentication using matrix cards
More than 35 push alert services
1.Focus on Risk, Compliance and Regulation.
4. Strategic Cost Management
5. Building Agile Systems
Leaders will focus on strategic capabilities
3. Improving Customer Sales & Service Focusing on a client-centric model to deliver the next
generation of value-added products/services.
2. Optimizing Core Banking Operations Core Banking for Competitive Advantage
Leveraging New Technology – SOA, eXtreme
Performance
Packaged Software & Software as a Service (SaaS),
Investment in Enterprise Risk & Finance
Transformation
The Path to Industrialized IT From Silos to Shared Infrastructure
• Physical, dedicated silos
• Sized for peak load
• Difficult to scale
• Expensive to manage
• Virtualized, shared resources
• Improved utilization
• Scale as needed
• Efficient to manage
Oracle Exadata + Exalogic Building the 21st Century Datacenter
• Game changing pre-integrated infrastructure solutions
• Meet the most demanding business SLAs in terms of performance, scalability,
security, high availability and disaster recovery
• Common environment to run package applications (Oracle, SAP, Finacle, etc.),
custom built applications (J2EE), or replatforming of COBOL/Mainframe based
applications
• Shared infrastructure for both OLTP and OLAP applications
• Reduced cost of operations, up to 60% of traditional mainframe solutions
Santander Brazil Transforms Data
Center Operations with Exadata
COMPANY OVERVIEW
• Santander Brazil is the largest operating unit of Santander Group
• Full range of banking services
CHALLENGES/OPPORTUNITIES
• As a result of the acquisition of Banco Real, Santander Brazil struggled with growing data and processing demands, zero space in its data center to expand, lengthy batch processes and process times that were negatively impacting risks, costs, customer analytics and revenue.
ORACLE SOLUTION
• Migrate to Oracle Exadata to consolidate servers, reduce infrastructure costs, improve system maintenance, and improve critical processes within the customer account warehouse, accounts receivable, corporate accounts, etc.
RESULTS
• Achieved 8x performance
improvement in dozens of
transactions, providing business
users faster access to data and
providing the ability to transform
processes
• Compressed data by 10x, providing
a significant savings on storage
and backup costs
• Consolidated several servers into
Oracle Exadata, reducing server,
electricity, floor space, and
maintenance costs
• Changed some businesses
routines, from weekly to daily,
giving much more competitive
turnaround
• Globally standardized products
using the platform for data
processing
Credit Suisse Industrializes Java
Application Platform with Oracle
COMPANY OVERVIEW
• Credit Suisse
CHALLENGES/OPPORTUNITIES
Server sprawl – handcrafted, heterogeneous, multiple
versions of servers
Lack of standardization at higher layers – each
application needed to organize component providers and
related SLA
Months of time to market lost while getting the
environment provisioned
Small/Medium projects with little success to deliver on
time due to senior management support necessity
ORACLE SOLUTION
• Oracle Weblogic Server • Oracle JRockit • Oracle Coherence
RESULTS
Credit Suisse realized continuous
reduction of 10%+ running cost every
year at very high user satisfaction
Highest savings (30-35%) in operating
costs (Run The Bank) and project costs
(Change The Bank)
1 to 10 shared server consolidation ratio
No downtime incidents 3 years in a row
Business Case in two parts
1: CAPEX –
Space/Energy/Hardware cost
savings through Virtualization
2: OPEX – Design-Build-Run cost
savings and operational efficiency
through Platform-as-a-Service
Hardware
Core OS
Applications
InfrastructureSWcomponents
Server Model 1 Server Model 2 Server Model 3 Server model ...
OS Core Version 1
Component a
Version ...
Component a
Version 2
Component a
Version 1Component a
Version ...
Component a
Version 2
Component b
Version 1Component a
Version ...
Component a
Version 2
Component c
Version 1Component ...
Version ...
Component ...
Version 2
Component ...
Version 1
OS Core Version 2 OS Core Version 3 OS Core Version ...
Component a
Release ...
Component a
Release 2
Application a
Release 1Component a
Release ...
Component a
Release 2
Application b
Release 1Component a
Release ...
Component a
Release 2
Application c
Version 1Component ...
Release ...
Component ...
Release 2
Application ...
Version 1
Hardware
Core OS
Applications
InfrastructureSWcomponents
Server Model 1 Server Model 2 Server Model 3 Server model ...
OS Core Version 1
Component a
Version ...
Component a
Version 2
Component a
Version 1Component a
Version ...
Component a
Version 2
Component a
Version 1Component a
Version ...
Component a
Version 2
Component b
Version 1Component a
Version ...
Component a
Version 2
Component b
Version 1Component a
Version ...
Component a
Version 2
Component c
Version 1Component a
Version ...
Component a
Version 2
Component c
Version 1Component ...
Version ...
Component ...
Version 2
Component ...
Version 1Component ...
Version ...
Component ...
Version 2
Component ...
Version 1
OS Core Version 2 OS Core Version 3 OS Core Version ...
Component a
Release ...
Component a
Release 2
Application a
Release 1Component a
Release ...
Component a
Release 2
Application a
Release 1Component a
Release ...
Component a
Release 2
Application b
Release 1Component a
Release ...
Component a
Release 2
Application b
Release 1Component a
Release ...
Component a
Release 2
Application c
Version 1Component a
Release ...
Component a
Release 2
Application c
Version 1Component ...
Release ...
Component ...
Release 2
Application ...
Version 1Component ...
Release ...
Component ...
Release 2
Application ...
Version 1
Hardware
Core OS
Applications
InfrastructureSWcomponents
Server Model 1
Server Model 2
OS Core Version 1
Component a
Version 1
Component b
Version 1
Component c
Version 1
Component a
Release ...
Component a
Release 2
Application a
Release 1Component a
Release ...
Component a
Release 2
Application b
Release 1Component a
Release ...
Component a
Release 2
Application c
Version 1Component ...
Release ...
Component ...
Release 2
Application ...
Version 1
RuntimePlatformRelease
RTP Release 1 RTP Release 2 RTP Release 3
Server Model 2
Server Model 3
OS Core Version 2
Component a
Version 1
Component b
Version 2
Component c
Version 2
Server Model 3
Server Model ...
OS Core Version 3
Component a
Version 2
Component b
Version 3
Component ...
Version 1
Virtualization VM Layer Version 1 VM Layer Version 1 VM Layer Version 1
Hardware
Core OS
Applications
InfrastructureSWcomponents
Server Model 1
Server Model 2
OS Core Version 1
Component a
Version 1
Component b
Version 1
Component c
Version 1
Component a
Release ...
Component a
Release 2
Application a
Release 1Component a
Release ...
Component a
Release 2
Application a
Release 1Component a
Release ...
Component a
Release 2
Application b
Release 1Component a
Release ...
Component a
Release 2
Application b
Release 1Component a
Release ...
Component a
Release 2
Application c
Version 1Component a
Release ...
Component a
Release 2
Application c
Version 1Component ...
Release ...
Component ...
Release 2
Application ...
Version 1Component ...
Release ...
Component ...
Release 2
Application ...
Version 1
RuntimePlatformRelease
RTP Release 1 RTP Release 2 RTP Release 3
Server Model 2
Server Model 3
OS Core Version 2
Component a
Version 1
Component b
Version 2
Component c
Version 2
Server Model 3
Server Model ...
OS Core Version 3
Component a
Version 2
Component b
Version 3
Component ...
Version 1
Virtualization VM Layer Version 1 VM Layer Version 1 VM Layer Version 1
Platform
Release Mgt
Reduction of complexity in the environment
Stay in technology lifecycle and mainstream (no "rotten" components)
Leverage improved economies and keep power consumption and data center
space in balance
Shared Applications Platform Move towards Industrialized IT
BNP Paribas achieves Extreme
Performance in Investment Banking
COMPANY OVERVIEW
• CIB is the global investment banking arm of the BNP Paribas banking group, headquartered in Paris, London and New York
• BNP Paribas CIB employs 17,000 people across 53 countries and provides financing, advisory and capital markets services.
CHALLENGES/OPPORTUNITIES
• “Keep pace with dramatic volume increases that can double from one day to the next. These are the moments where accurate, complete and on-time statistics and reporting are the most critical for users. We require highly adaptive solutions that will evolve as fast as the global trading floor, keeping our statistics relevant as the environment”.
• Both Day+1 and near real-time performance targets are currently required. In the coming year asynchronous near real-time will become our standard target for user ready information
ORACLE SOLUTION
• Oracle Exadata serves as the underpinning of some 35 trading-floor applications. That includes near-real-time performance stat monitoring, risk- and market-abuse compliance reporting, network and internal application optimization, and long-term (five-year) archival compliance querying and reporting.
RESULTS
• Currently existing queries are
running about 16 to 17 times faster
on Exadata V2 than in the old RAC
deployment, on average, without any
change in code to further exploit
Exadata V2's ability to push SQL
querying down into the storage tier,
which could improve performance on
queries accessing lots of data
• The total warehouse now stores less
than 10 terabytes, down from 23
terabytes in the previous
environment
• Maintenance tasks that used to take
hours can be done in minutes on
Exadata V2
1.Focus on Risk, Compliance and Regulation.
4. Strategic Cost Management
5. Building Agile Systems
Leaders will focus on strategic capabilities
3. Improving Customer Sales & Service Focusing on a client-centric model to deliver the next
generation of value-added products/services.
2. Optimizing Core Banking Operations Core Banking for Competitive Advantage
Leveraging New Technology – SOA, eXtreme
Performance
Packaged Software & Software as a Service (SaaS),
Investment in Enterprise Risk & Finance
Transformation
Oracle Fusion Middleware
Enables implementation of Key Architectural Principles
© 2012 Oracle Corporation – Proprietary and Confidential
At Nordea the Oracle SOA Suite is group-wide standard
for Service Oriented IT-Architecture enabling smooth
integration of processes and systems linking the new
front-end and multiple back-ends core systems
CUSTOMER PERSPECTIVE
‘So in 2006 the bank decided on a stepwise
harmonisation starting with front-end domains,
and moving on to the back office. The objective
was:
• development and implementation of new
business processes and systems for the
entire front-end of the bank
• a new Service Oriented IT-Architecture
enabling smooth integration of processes and
systems between the new front-end and the
national back-ends
• An encapsulation and modularisation of the
national back-ends to support end-to-end
processing.
COMPANY OVERVIEW
• Nordea is the largest Nordic and Baltic financial institution
with 30,000 employees, 1,200 branches and 11 million
customers. It also has a leading netbanking position
with 5.1 million e-customers. It has assets of €440 million.
CHALLENGES/OPPORTUNITIES
• The bank was born through mergers, which gave a
complex legacy structure in processes and systems. In
fact, despite external branding Nordea continued to
function with four back-end core banking systems in
Norway, Finland, Sweden and Denmark.
• This was aggravated by growth fueled by new
acquisitions, at last count 250, with the unavoidable
fragmented legacy structure and silos. In 2006 the bank
decided on a major business transformation program
aimed at streamlining retail front office processes as well
as facilitating the integration of new acquisitions. Thus
Nordea began the search for a complete SOA foundation
to underpin the business transformation program.
SOLUTIONS
• Full Oracle SOA Suite • E 2.0 mainly comprising Content Management • Oracle Database.
RESULTS
• Once up and running Nordea will support its
customer value proposition by a common
product structure, product harmonisation and
higher speed in product development.
• The sales and advisory processes will be
completely revamped and the IT systems
supporting Nordea's core banking process will
be consolidated.
Strong delivery
capability with
domain expertise
Business Process-
driven transformation
Most comprehensive
range of
applications
Oracle as Strategic IT partner rather than technology vendor
Single point of responsibility for total solution
Strong commitment
to open standards
and interoperability
Best of Breed &
Pre-integrated
Components
Best-in-class functionality to solve business problems
Pre-built and sustainable integration – reduced TCO and complexity
Ease of integration with third party and legacy solutions
Evolutionary transformation to SOA
Risk mitigated project delivery with strong track record of success
Strong relationships with leading System Integrators to deliver complete solutions and risk mitigation
Alignment to IT strategy with immediate business impact
Enabling evolutionary transformation of legacy infrastructure
Strategic enablement of standardization and consolidation
Oracle Value Proposition
© 2008 Oracle Corporation – Proprietary and Confidential. Andrew Court, Senior Director Key Account Marketing, EMEA
Thank You