Making BancAssurance Agile - 4th Annual BancAssurance Conference

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YOUR LOGO

Creating an agile BancAssurance platform4th Annual BancAssurance Conference - Vienna, Austria23rd April, 2009

Kalpesh Desai

CEO, Agile Financial [email protected]

www.agile-ft.com

mailto:[email protected]

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Agenda

1

Agility In

BancAssurance

3

4

2

BancAssurance – Current business drivers

Technology as an enabler of business agility

Challenges in deployment

About Agile Financial Technologies

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Agenda

1

Agility In

BancAssurance

3

4

2





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Regulatory

RegimeBanks

Clients Insurance

Companies

Dismantling barriers

between banking

and insurance

products

Unprecedented

population ageing

Relaxed regulatory

Regime

Extensive branch

network, infrastructure &

penetration

Insurance

spend increases

as GDPs reach

threshold

Low cost

distribution model

70% of world

assets with

people > 50

Customer

Centricity

Customer retention

challenges – require

shift to universal

banking model

Opportunity to diversify

banking revenues – fee

income

High distribution

costs Channel fidelity

Poaching of quality

agents

Power concentrated

by a few leaders

Under-serving of

middle-tier

consumers

Need to target

HNWI’s to

position

complex

products

Achieve reach in a

timely and cost-

efficient manner

Economic

slowdown

Access to

liquidity

Margin

pressure/credit

risk/enhanced KYC

The need

Complex financial needs –

require asset protection

(insurance) and growth

(investment) plans

Environment

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Fragmented Approach By Banks & Insurers

InsuranceCompanies

sell InvestmentProducts

Banks sellNon-Life products

Banks sell Life and Pension

products

Branch network Agents/Brokers

Client

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Channels Servicing The Landscape

Opportunity to introduce

BancAssurance

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•Automate services; evolve technology

•Outsource non-core functions

•Identify and structure fees based on “needs-based” approachHigh

Service

Needs

Level

Low

NEEDS Client

Service requirement GAP

Profitable person-to-person

servicing capability

High Net

Worth Emerging Mass Emerging Mass Affluent 0 Wealthy Affluent Market

Client Segment

Services Expectation Gap

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Different strokes for different folks

UltraHNWI

Mega Net Worth Customers

HNW Customers

Mass Affluent Customers

Personal/Premier Banking Customers

Volume of potential Clients

Build & Manage Wealth

Protect Wealth

Build Legacy

Plan

Advice

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What clients want

Traditional process of servicing

• Brokerage services (product experts and financial advisors)

• Investment Management services (relationship-based approach to financial products)

• Wealth Planning (personal financial planner)

How clients desire to be serviced

• Global outlook to “asset management”

• Research on international development

• Transparency and visibility on portfolio performance and risk mitigation

• Support and resources and tracking of social returns on their philanthropic and charitable pursuits

• Choice of sectors, geographies, community focused, socially responsible investment screening

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Servicing the need

Advisory based sales

Client Base

Loan holdersSalary

accounts

Mid balance

liabilities

customers

High balance

liabilities

customers

Preferred/

Private

Banking

Over the Counter/Direct

Marketing

Creditor Products sold with

existing product distribution

Segmented

products

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Business Drivers

Diversify the banks’ products and services portfolio

Integrate marketing efforts

Reduce dependence on interest-based income

Optimize distribution costs

Gain access to a larger client base

Increase cross-selling opportunities

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BancAssurance Business Models

Distribution Agreements

• Referral model

• Inadequate training to bank employees

• Limited product range

Embedded Agents

• Insurance agents sell in banks

• Licensed advisors within the bank

• Higher product complexity

Full-time sellingmodel

• Trained bank staff sell most of the products

• Wide range of simple & complex products

Classical fullyintegrated

• All products are sold by the bank

• Advisory based product offering

• Centralized support services

• Integrated into the Wealth Management Platform

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The Need

Leverage of branch network

(reach) and client base (depth)

Additional offering at no

additional infra cost

Product fitment

and differentiation

Holistic financial offering to

client

Reduce distribution costs

by leveraging

infrastructure

Product Creation &

Underwriting

Leverage joint branding

Value to

Insurer

Value to Bank

Value to Customer

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Objectives

Factor Bank Insurance Company

Customers

Retention of clients Access to a quality customer

base. Ability to offer customized

offerings to a wider, wealthier

client base

Serviceability

Ability to service more

financial needs under one

roof

Revenue and channel

diversification

InfrastructureEffective and profitable

resource utilization

Quicker geographical reach on

the bank„s backbone

Economics

Revenue diversification,

increased fee based income,

reduce revenue volatility

Low distribution cost, increased

customer penetration and

servicing, increased revenues

Objective – Leverage Customer Centricity

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Credit Shield/

Lost Card

Insurance

Objective - Increase revenues/cross-sell

Credit Life

Insurance

Mortgage Life

Insurance

Motor

Insurance

Personal

Credit

Insurance

Credit cards

SME Banking

Mortgage

Auto Loans

Personal Loans

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Objective - Winning Strategy For All

Customers

Receive holistic solution from a

one-stop shop

Banks

Deepen client relationships

Increase fee income

Insurance

Companies

New distribution channel

Low distribution cost

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Evolving A Client Centric Approach

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Agenda

1

Agility In

BancAssurance

3

4

2





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Wholesale and Retail Products

Personal

banking

Commercial Banking

Global Banking and Markets

Private BankingGlobal

Institutions

Corporate

SME

HNWI

Mass Affluent

Mass Market

Integrating BancAssurance in operations

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Process and Technology Challenges

Business Under-

performance

Poor visibility of economic

performance and drivers by customer

segments

Islands of information created

by the deployment of point solutions and

disparate IT solutions

Inability to align products and services with

customer profitability

People and relationship dependent processes

Past revenue growth led to increased fixed

costs of acquiring and serving new

customers.

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Technology Can Inhibit or Enable

• Inflexible Applications

• Islands of information

• Tedious Product Development

• Interface touchpoints

• Outdated software

• Succession planning

• Uncertainty

• Implement a multi-carrier

BancAssurance model

• Constantly evolving needs

• Increasingly sophisticated

and demanding client base

• Increase competitiveness

I.T.

Business

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"In a time of accelerating turbulence, the valuation of a company will be strongly

affected by how it executes change."

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BUSINESS AGILITY!! NOT A LUXURY !!

The ability of a business to adapt rapidly and cost efficiently in response to changes in the business environment.

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how do you change a business model and innovate?

Question

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If your current systems do not enable teams to collaborate

And create a common platform linking processes, knowledge and tools to leverage the BancAssurance opportunity

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Bridging the gap

• Determine a service approach

• Deliver service through multiple channels and practice models.

• Continuously monitor and update client profiles and behavior patterns

• Engage research and surveys to question internal assumptions

• Based on Client Lifetime Value

• Analyze client needs and create tailored offerings

• Build additional capabilities or find partners to service the gap

• Net worth

• Client interests, frequency of interaction, communication preferences and financial behavioral attributes.

Customer Segmentation

Position Products and

Services

Service Delivery Model

Stay Current with Client

Needs

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Agenda

1

Agility In

BancAssurance

3

4

2





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Aligning Business

Business and customer strategy

• Identify and migrate clients from banking services toasset management services

• Position advisory capabilities and best-of-breedinvestment and insurance products

• Assess viability of providing a asset management offering to the mass affluent

Organizational design

• Break out of silos to transition from a product-centric to a customer-centric organization

• Integrate different components of offering to provide a single point of contact for clients

Operational effectiveness

• Build, buy or partner to offer more complete asset management, retirement & estate planning and protection capabilities

• Leverage physical footprint

• Ensure rigorous adoption of “know your customer rules”

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With I.T.

Shift from islands of information to a holistic integrated system

Deploy CRM to enable identification of potential wealth-

management clients and provide an integrated view of the customer

and information across all product groups

Using technology as a platform for serving the mass affluent

Improving information and data exchange to share information

across silos

- Integrating legacy and new systems

Outsource non-core functions to service providers

- Investment Accounting

- Research

- Reconciliation and transcription

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Technology is a key operational factor for every insurer

- From Lead Generation to Policy administration and Claims Management.

Major IT drivers:

- New product development.

- Integration with insurance company data, sales and services practices

- New distribution channels.

- New regulatory requirements.

Integrate tightly with the Bank’s own systems

Web-centric IT system.

- On-line case management and request handling

- Channel Management.

- Policy, Product details and online premium calculator

- Facility for group insurance customers to view individual savings status on the web.

Facility to pay premiums through credit cards, Net banking, StandingInstructions, etc.

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Approach

Insurance Products

Web based access

to Channels, Employees,

Branches and Customers

Interface between IT systems

in the Bank & Insurance

company

Core Banking Platform

Creation of new products

Servicing client needs

Banking ProductsService offering by

Integrating processes

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Approach

Integration with

core banking

(Customer

Information)

Multi-carrier support

Ease of premium

payments using auto

debits, cards, net

banking, collection

agencies

Maintain bank‟s service

standards

Utilisation of alternate

service points to minimise

cost

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IncreasedResponse

Levels

IncreasedRevenues

CostEfficiency

Integrated/Aligned

Processes

Scaleability

o Create value for banking

and insurance customers

o Improve experience for

distributors, partners and

Employees

o Reduce the sales cycle

o Enhance interoperability

between systems

o Shift to holistic integrated

systems from islands of

disparate information

o Provide integrated view of

customer information

across various products

o Improve information-sharing

practices

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Self serve capabilities using the web

Distribution

Channels

Corporate/

Individual

Customers

Brokers

Bank Employees/

RMs

Agents Insurance

Consultants

Direct

MarketingUn

ifie

d T

ech

no

log

y P

latf

orm

Scala

bility

an

d A

dap

tab

ility

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Examine deployment models

Software as ServiceEntire computing capacity is outsourced

to third party/ solution provider

Platform as ServiceService to create, operate and run applications

Infrastructure as ServiceFully outsourced infrastructure and application

environment

Expense Control

Higher return on

IT investments

Competitive

costing

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Mid/BackOffice

Integration

Front OfficeIntegration

Distribution Network

Automation

Multi-CarrierManagement

Product Portfolio

Performance Management

Integrated BancAssurance Framework

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Thank youKalpesh Desai

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Agenda

1

Agility In

BancAssurance

3

4

2





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The Evolution

Consolidated revenues of US$ 30mn in FY08

Create economies of scale, efficiency and a powerful sales, support, and marketing process to leverage a vertically integrated product & services offering

M&A Strategy led by a strong management team

100% buy-out of IT/ITES companies focused on the Financial Services &

Insurance Sector

Management teams of underlying companies are inculcated into Agile‟s

core team

Agile emerges as a vertically integrated mid-market player

Backed by Private Equity, Agile Financial Technology is a mid-sized Indian IT company focused on providing products and services to the Investment Banking, Asset Management, Insurance and Capital

Market sectors

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The ConstituentsA

cti

vit

yO

ve

rvie

w

`

BPO

•Application processing

•Document Verification

•KYC

•Banks, AMCs, Insurance

•Strategic Resourcing

•Over 20 years in

business

•2100+ employees

•40 locations in India

•India‟s largest domestic

BPO

•Provides transaction

processing services to

EVERY bank, mutual

fund, and life insurance

company in India

•Mashreq, First Gulf

Bank. ADCB

•Amex, StanChart

•Barclays

•AIG`

Insurance Management

•General, Life, Medical,

Broking, Banc Assurance

software

•Takaful compliant

•Over 20 years in

business

•120+ employees

•Initial deployments in the

M.E. at Emirates

Insurance, Al Ain Al Ahlia

•Oldest Oracle partner in

India (1985)

•Chola-Mitsui

•Apollo DKV

•Deutsche Bank

•Edelweiss

•ONIC (Oman)

•Astra (Singapore)

Technology Solutions

•Managed Services

•Security Consulting

•App maintenance/

development

•EAI

•Over 6 years in business

•140+ employees

•Provide consulting,

development and

managed services to

banks, insurance

companies and asset

management companies

•Bombay Stock Exchange

•State Bank of India

•Barclays

•BNP Paribas

•Edelweiss

•Kotak Life & Kotak AMC

Investment Banking

•Treasury & Dealing

•Fund Management

•Portfolio Management

•Liabilities Management

•V@R Management

•ALM

•Over 14 years in

business

•130+ employees

•Ranked by IBS

Intelligence (UK) as 6th

largest Treasury solutions

provider globally

•Largest Indian wholesale

banking software provider

•Ranked as “Highly

recommended Company”

by THE BANKER, India

•Union National Bank

•Bahrain National Holdings

•AIG Mutual Fund

•StanChart Mutual Fund

•Reliance Mutual FundKe

y C

lie

nts

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Delivering Value

• Fund Accounting Services

• IPO processing & Support

• Equity & Forex Research

• Banking

• Loan, Payments, Liabilities origination processing

• Mutual Funds

• Origination, KYC

• Insurance

• Claims processing, KYC

• Managed Services

• Security (BCP/DRP) Consulting

• Strategic Resourcing

• Enterprise Application

• Integration

•

• Insurance

• General, Life, Broking,

• Bank Assurance

• Investment Bank/Fund Houses

• Asset Management

• Investment & PMS

• NBFC‟s/Banks

ProductsTechnology

Services

KPOBPO

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Milestones

Our BPO, Pamac processes over 7% of all retail applications & 27% of all

new credit card applications processed in India

Pamac is ranked amongst the largest Indian domestic BPO vendors by D&B

Over 10mn transactions processed per annum. Over 70mn US$ of loans

disbursed per annum

The largest Mutual Fund in India (over 22 Bn$ AUM) uses iDEAL Funds

iDEAL Funds processes 30% of India‟s Mutual Fund‟s AUM

Around 45% of the money exchange transactions in India are managed by

MercuryFX

iDEAL is ranked as the 6th largest Treasury solution globally by IBS, UK;

and the largest Indian wholesale banking software in terms of footprint

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Our Engagement Process V

ert

ica

l S

ale

s O

rga

niz

atio

n

Horizontal Services

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Our Presence

Central & Eastern Europe

Russia

Kazakhstan

Ukraine

Poland

Africa

Mauritius (Direct Presence)

Kenya

Tanzania

Malawi

Ethiopia

Nigeria

Ghana

UAE (Direct Presence)

Oman

Bahrain

Kingdom of Saudi Arabia

Kuwait

Qatar

Middle East

Asia Pacific

India (Direct Presence)

Sri Lanka

Indonesia

Malaysia

Phillipines

Singapore (Direct Presence)

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iDEAL Investment Management Suite

Banks

•iDeal Integrated Treasury Management

•Mercury FX –Merchant & Retail FX

•Quadryx - OTC Derivatives

•RiskMark – Value @ Risk

•iDeal Wealth Management

•Clients

•State Bank of India Karnataka Bank,, Indian Bank, Axis Bank, OBC, Central Bank of Sri Lanka,, PNB Gilts, HDFC Bank, ING Vysya Bank, SocGen, Union National Bank (UAE)

Investment/Fund Houses/Insurance

•iDeal Funds – Front,, Mid & Back office for fund, investments and portfolio management

•Fund Managers / Investment Managers in AMCs, Insurance Companies and Portfolio Management companies

•FundMetrics –Risk & Compliance reporting

•iDeal Funds Performance Reporting

•Clients

•AVIVA Life Insurance*, Bharti AXA Life*, TATA AIG life*, LIC (Debt portfolio), Shriram Life, Reliance Life, Reliance general, Sahara Life, BNH (Bahrain), Reliance MF, AIG MF, StanChart MF, HDFC MF, SBI MF, , Pru ICICI

Finance Companies

•iDEAL Finance –Liabilities (Borrowings) Management

•Quadryx – OTC Derivatives

•CALMS – ALM

•Clients

•L&T Finance, Shriram Transport, Canfin Homes, Sundaram Home Finance, Fullerton India Credit, HDFC, Kotak Prime Limited, Fullerton India, Cholamandalam DBS

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Insurance Management Suite

Insurance Companies

• Agilis -Integrated Insurance Enterprise Management

• Non-life, Life, Composite

• Takaful

• Health & TPA’s

Brokers

• BrokerWorld –Insurance Brokerage Management

• Rate comparison-Policy Administration-Claims follow up-Accounting

• All life and non-life businesses covered

• Powerful commission tracking

Banks

• BancAims –Comprehensive BancAssurance Management

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Technology Solutions

Solution Framework

• IntiCraft – A customer self service application for

Mutual Funds

• Life Insurance Portal – Customer, Agent and

Employee Portal – A virtual office for Life

Insurance Companies

• HRMS add-ons – Expense Management,

Appraisal System, Emp Intranet, Emp Helpdesk

• Secondary Sales – Tracks movement of goods

sold beyond the first point of sale

Infrastructure Services

• Data Centers – Design, Security Paradigm,

Implementation, Movement and Support.

• Infrastructure Software Support – Database,

Middleware, OS, Security and Messaging

• Disaster Recovery Design and Implementation

• ISO 270001 Consulting

• Database and schema migration

Enterprise Application Integration

• Application Integration

• Customer Application development and

maintenance

•Middleware expertise on Oracle, IBM and Sybase

System Integration

• Hardware sizing and selection

• Building a solution for solving a problem – may

require a mix and match of third-party products

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Business Enablement Services

ApplicationProvisioning

3rd Party/Client Apps

Processes Enabled

Verticals Serviced

ServicesProvisioning

ActivitiesOutsourced

Business Process

ConsultingApplication

Development

Managed

Services

Strategic

Staffing

Txn

ProcessingFulfilment Verification Dispatch Reconciliation

Receipts/

PaymentsResearch Accounts

Data Mining/

MISReporting

Customer

interaction

Fund

Accounting

R & T/

IPO Processing

Equity &

Forex

Research

Back Office

Accounting

Policy

& Claims

Admin

Credit Risk

Evaluation/

Processing

Fund Admin/

Registrars

Investment

Banks/FundsBanks NBFCs Insurance Telco's

iDEAL

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The Company We Keep

Banks

Investment

Management

http://www.ncdex.com/Aboutus/index.aspx

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The Company We Keep

Insurance

Financial

Services

http://www.ncdex.com/Aboutus/index.aspx

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H

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B

A

H

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B

B

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U

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CH

U

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FH

U

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H

U

B

D

SPOKE

A(1)

SPOKE

A(3)

SPOKE

A(2)

SPOKE

B(1)

SPOKE

B(2)

SPOKE

B(3)

SPOKE

C(3)

SPOKE

C(1)

SPOKE

C(2)

SPOKE

F(2)

SPOKE

F(3)

SPOKE

F(1)

SPOKE

D(1)

SPOKE

D(3)

SPOKE

D(2)

SPOKE

E(1)

SPOKE

E(3)

SPOKE

E(2)

H.

O.

H.

O.

Infrastructure

India

- 40 cities across India, 80+ locations

- Hub & Spoke model

ISO 9001:2000 certified BPO

- 300+ employees in product development and

deployment

- 150+ employees in technology support services

- 2,100 employees in business enablement services

(BPO)

- 7,600 resources deployed onsite in banks

UAE

- Dubai Internet City

- Dubai Outsourcing Zone

- Sharjah Airport International Free Zone

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