Operational Performance in Financial Institutions with Smart Capture Solutions and Process Improvement

Driving Business P f i h Performance with Industry SolutionsIndustry Solutions

Room 4

Driving Business Performance with Industry Solutions – Room 4

Reshaping IT Operational Performance in Financial Institutions with Smart Capture Solutions and Process Improvement

Juan Angulo Lopez-DórigaJuan Angulo Lopez-DórigaApplications Services DirectorFujitsu

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12:00 h

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O ti l P f i Fi i lOperational Performance in Financial Institutions with Smart Capture Solutions s u o s S a Cap u e So u o sand Process Improvement

Juan María Angulo López-DórigaApplication Services DirectorFujitsu Technology Solutions [email protected]

Fujitsu Forum 2011 – November 2011

Copyright 2011 FUJITSU

Agenda

1. Enterprise Content Management full lifecycle2 Intelligent Capture2. Intelligent Capture3. Financial Sector Challenges4. Bank Use Case5. Technological solution6. The benefits

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7. Fujitsu Presence


Tangible and Intangible – Individual and Group

“It is not necessary to change…” “survival is not mandatory”

Dr. W. Edwards Demingg

“If you have an apple and I have another and we exchange then we still have a apple each But if you have a idea and I have anwe still have a apple each. But if you have a idea and I have an idea and we exchange these ideas, then each of us will have

two ideas.”George Bernard Shaw

“It should be obvious that the intelligent is primarily asocial product, not just union of ideas but, above it,

about people knowledge sharing.”Antonio OrihuelaAntonio Orihuela

“Any decision it’s right when you've had and analyzed any l t i f ti b f t k it “

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relevant information before take it.“Peter Senge


ECM the full “road” life cycle

STORESTORE

CAPTURECAPTURE DELIVERDELIVER

MANAGEMANAGE

6 Copyright 2011 FUJITSU

PRESERVEPRESERVE

Intelligent Information Capture

Business Process DataCritical Business Documents

Loan

Loan A Y 8789011 $ 250,000

Loan B N 8990989 $ 325,000

Equity Line of Credit

Y 1234567 $90,000

The " Intelligent Information Capture" applies advanced technologies of recognition in the processes to capturedocuments transforming the information (Data) into usefuldocuments, transforming the information (Data) into useful information for business processes, while reduces the costs of data entry and improves the productivity


Intelligent Information Capture Full Process

Invoice NumberVendor NamePurchase DateSubtotalGrand Total

10010Acme Products30 January 2008$ 6,014.81$ 6,025.88

C t Cl ifi ti E t ti V lid ti D li

Payment Terms$ ,Net 30 Days

T h l l d th

Capture Classification Extraction Validation Delivery

Technology leads the wayCorporate architecture for document´s captureFlexible options for both centralized and distributed implementationFlexible options for both, centralized and distributed, implementation Automatic capture services - classification documents, data extractionIntegration with business systems and SOA and .NET support


Solution RequirementsCapture from any source of informationC t d di t ib t d iCapture and distributed in originAuto classification ofAuto classification of documentsIntelligent recognition of te ge t ecog t o oinformation of any nature (OCR)Integration with the systems and existing architectures in the banksthe banksHigh scalability and performance

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performance


The five challenges and objectives of Financial sector

15Improving efficiency through technology and processes that reduce costs

Business Agility through the simplification

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Proactively reach Efficient management

and time1Challenges2

4 2

Identify new opportunities

ycustomers through better channels and analysis

gof the regulation’s growth

3Identify new opportunities

to make the business grow


Focus on 3 Challenges

Processes restructurationTechnological consolidation

Cost reduction and IT efficiency

New regulatory

Industrialization

Transparencyinitiatives

p yComplexity and penaltiesreductionCompliance LOPD, MiFID, DOD 5015 SoX SEC SEPA eDiscovery

New ways to createrevenues

5015, SoX, SEC, SEPA, eDiscovery, Basel III

Added value servicesCustomer retentionrevenues Customer retentionSales force promotionProcesses Improvement

CONTROLLED AND AGILE ti l d l


operational model

Challenges: Cost Reduction and IT efficiency

Maturity of the models within Financial sectorHosting, Outsourcing, BPO, Case Management, SaaS, Cloud

These models must now get current challenges:System scalabilitySystem scalabilitySpeed time to marketKnowledge re-usegCost optimizationAvoid Mistakes

T t th INDUSTRIALIZATION f th ti l d lTo get the INDUSTRIALIZATION of the operational model


Challenges: Improve operational model

Most of the current operational model tasks are done manually managing paper.

Intelligent Information Capture Platformg pis the answer

Three fundamental factors improve paper management:Three fundamental factors improve paper management:1. To capture, to digitize, and to store electronically from the origin.2 To eliminate the costs of the manual process of documents and entry2. To eliminate the costs of the manual process of documents and entry

of information.3. To improve the efficiency eliminating unnecessary steps.


Challenges: Compliance

The Financial Sector is submitted to a normative increasing pressureincreasing pressure

MiFID, DOD 5015, SoX, SEC, SEPA, eDiscovery, Basel III etc.

The normative fulfillment is not an option and thenot an option and the impact is relevant

T t CONTROLLED AND AGILETo get a CONTROLLED AND AGILE operational model


Challenges: Looking for new revenue sources

Financial Sector is focused in the customer’s acquisition & loyalty and new sources& loyalty and new sources of revenue generationThe new technologicalThe new technological models provide a great opportunity for develop

hi ti t d dd d lsophisticated added value services (Self-service, Certified digitalization Cloud)Certified digitalization, Cloud)Promote "upselling" and "cross-country re-selling"

AGILE definition of new services and INTEGRATION of existing y g

of new services and traditional products S d “Ti t k t”

products

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Speed “Time to market”


Specific Bank Use Case: Current situationB k th t t i ti d t l f ffi iBank growth strategy is tied to a plan of efficiency improvement: project for business processes optimization.

Bank has started administrative processes outsourcing projects (BPO model) to promote the commercial character j ( )of the branches network and the operational cost reduction.

All systems of these centers are integrated with its reference architecture (Proprietary)architecture (Proprietary).

Certain documents are digitized in origin (branches) and g g ( )some of them travel to the operative centers.

D t lid t d i th BPO t d i t t d

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Documents are validated in the BPO centers and integrated into business processes.


Specific Bank Use Case: Business challengesBusiness challenges to solve:

System scalability: to centralize the maximum process in the BPOs. pTimes of response: to improve process execution times of certain assets.Source of knowledge: the operative of certain assets continues staying in the branches.Cost optimization: eliminating the time dedicated to manual low value tasks.Mistakes reduction and backward channel: because of the reduction of many manual tasks.yConformity and audit: to implement complete traceability of the process from the origin of the information.

Many of the Bank BPOs tasks are totally manual

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gLaunch added value services: to companies and strategic customers


Key Success Factors for Business Processes

Key Factor SolutionScan, capture and store electronically from any kind of device and locationEli i t th t f th l f ith i t lli t iti f d t dEliminate the costs of the manual process of documents

with intelligent recognition of documents and information

Efficiency improvement - Eliminate unnecessary steps

with automatic rules of business, connecting the information with the systems and suitable


unnecessary steps the information with the systems and suitable persons

Current Capture Operational model

Centralized Capture

DigitalReadiness

Life Cycle Management

RecollectionDigitalization

Center

Digital

Achive

Scanning

ClassificatiCustody

Branch

Physical Archive

Classification

Validation

Certification

RecollectionCorporate

Center

Physical ArchiveQuality ControlBranch

Proceso de Digitalización Certificada

Documento en papel

Proceso Único Proceso de Digitalización Certificada(Obligatorio para desechar facturas en papel)

Proceso Único

ProcesamientoMasivo de Captura

Digitalización Firma Almacenamiento, Custodia y Consulta

Mantenimientoy QA


Solution Future Capture distributed model

UsersDistributed capture

CartulinaFirmasBastanteos

Users

File TIF, PDF,JPEG…

Bastanteos

Repository

OCR

File TIF, PDF,JPEG…

Scanning and certification

RepositoryHOST

File XML


Solution Elements:Capture support for any source and whole organization

Centralized Batch CaptureCentralized Batch Capture

Email integrationEmail integration

Fax integrationFax integration

MFPs net CaptureMFPs net Capture

Desktop CaptureDesktop Capture


Browser CaptureBrowser Capture

Solution Elements:Automatic Document ClassificationAccelerate the process and minimize manual steps

Identification Classification & Extraction Routing & WorkflowIdentification Classification & Extraction Routing & Workflow

ECM


Solution Elements: Applying new classification Techniques

Admission

Classification

Invoices

Purchase Orders

xtting

rned

A Lab results

Legal DocsGTM

Full

Tex

nd w

rit

to L

ear

HPA

Letters

F

HanAut

Loan Docs

Patient Records


Records

Solution Elements:Intelligent Data Recognition (IDR)

Automatization reduces dramatically operational costs

Automated recognition and hi h t ihigh success percentage in manual and machine impressionsimpressionsAutomatic extraction of information in zonal regions gwith rules of free form (full text)


Solution Elements: Connection to backoffice systems

Paper transformation into business information

Capture Tool DigitalRepositoryy

StorageS t DBMS

Other

System

Content ERP/CRM/ECM/BI

DBMS

CollaborationPlatform


Applications Management M/BIPlatform

Intelligent Capture – Use Case benefits

Intelligent capture in BPO

BP BP

75%

100%

% Tiempo

75%

100%

% Tiempo

I t lli t25%

50%

25%

50%Intelligent

Capture Sw

0%Tareas

Manuales Tareas

validacion0%

Tareas Manuales

Tareas validacion

Financial Entity Financial Entity


Customer Value Proposition - Benefits

Source Harvey Spencer Associates Inc 2010

There are still some sectors in which 73% of

d t ti it’ i d

Paper based transactions are between 16 and 24

(Government) “In person” based transactions cost 80€


documentation it’s received by paper or fax times more expensiveinstead electronic based 5€

Fujitsu presence in the full life cycle

STORESTORE

CAPTURECAPTURE DELIVERDELIVER

MANAGEMANAGE

SECDOCS


PRESERVEPRESERVE

Intelligent Information Capture Benefits

Operational cost reductionReduces costs of paperReduces costs of paperImproves the quality of informationAccelerates business processespMore conformity control

“Advanced capture applications offer an excellent ROI opportunity... pp y…Users are typically seeing payback in 12 months or less, and often less than 6 months."

Melissa Webster, IDC’s November 2008 Document Processes QuickPoll Survey

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