Unlock Digital Banking with SAP Bank Analyzer & S4
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The document discusses the impact of digital innovations on the financial services industry, emphasizing the need for banks to transition towards digital platforms to meet changing customer expectations. It highlights that a significant portion of sales must shift from traditional branch interactions to digital channels, driven by consumer behavior that favors constant engagement and personalized experiences. The document outlines the importance of leveraging technology to deliver responsive and efficient digital banking solutions that align with contemporary customer needs and behaviors.
Unlock Digital Banking with SAP Bank Analyzer & S4
- 1. Discovering the Digital Banking Platform Connecting Digital Capabilities to SAP Banking Architecture Guillermo Salazar
- 2. Deloitte Digital Copyright © 2016 Deloitte Digital LLC. All rights reserved. 1 | WHY IS DIGITAL CHANGING FSI NOW? 2 | HOW IS DIGITAL DIFFERENT? 3 | ENABLING DIGITAL CAPABILITIES WITH TECHNOLOGY 4 | DELIVERING ON CUSTOMER EXPECTATIONS 5 | FINANCE & CAPITAL COMPETING IN DIGITAL FSI
- 3. Deloitte Digital Copyright © 2016 Deloitte Digital LLC. All rights reserved. 1. WHY IS DIGITAL CHANGING FSI NOW?
- 4. Deloitte Digital Copyright © 2016 Deloitte Digital LLC. All rights reserved. 1970 TECHNOLOGY CORE 1980 TECHNOLOGY ENABLEMENT 1990 TECHNOLOGY COLLABORATI ON 2000 TECHNOLOGY ENGAGEMENT 2010 DIGITAL 2020 EXPONENTIAL Technology eras are characterized by exponential growth and connectivity. MAINFRAMES DISTRIBUTED TERMINALS CORECOMPUTING OFFICECOMPUTING MINI-COMPUTERS WORDPROCESSING SPREADSHEETS HOMECOMPUTING PCREVOLUTION NETWORK COMPUTING EMAIL RELATIONAL DATABASES CLIENT-SERVER APPLICATIONS INTERNET REVOLUTION BROWSERWARS CUSTOMER ENGAGEMENT INTRANET APPLICATIONS BROADBAND MOBILE CLOUDCOMPUTING BIGDATA ANALYTICS SOCIALMEDIA WEARABLES ARTIFICIAL INTELLIGENCE SENSING HOMEAUTOMATION DIGITALCARS DIGITALMONEY QUANTUM COMPUTING 3DPRINTING/ MANUFACTURING TECHNOLOGY CYCLES WHY IS DIGITAL CHANGING FSI NOW?
- 5. Deloitte Digital Copyright © 2016 Deloitte Digital LLC. All rights reserved. DISRUPTIVE INNOVATIONS ARE RESHAPING THE WAY FINANCIAL SERVICES ARE: STRUCTURED, PROVISIONED, AND CONSUMED DISRUPTIVE INNOVATION WHY IS DIGITAL CHANGING FSI NOW?
- 6. Deloitte Digital Copyright © 2016 Deloitte Digital LLC. All rights reserved. THE FUTURE OF FINANCIAL SERVICES How disruptive innovations are reshaping the way financial services are structured, provisioned and consumed • Innovation in financial services is deliberate and predictable; incumbent players are most likely to be attacked where the greatest sources of customer friction meet the largest profit pools • Innovations are having the greatest impact where they employ business models that are platform based, data intensive, and capital light • The most imminent effects of disruption will be felt in the banking sector; however, the greatest impact of disruption is likely to be felt in the insurance sector • Incumbent institutions will employ parallel strategies; aggressively competing with new entrants while also leveraging legacy assets to provide those same new entrants with infrastructure and access to services • Collaboration between regulators, incumbents and new entrants will be required to understand how new innovations alter the risk profile of the industry – positively and negatively • Disruption will not be a one-time event, rather a continuous pressure to innovate that will shape customer behaviours, business models, and the long-term structure of the financial services industry DeloitteDigital Copyright©2015DeloitteDigitalLLC.Allrightsreserved. WHY IS DIGITAL CHANGING FSI NOW?
- 7. Deloitte Digital Copyright © 2016 Deloitte Digital LLC. All rights reserved. NEW NETWORKS ”Thedaysofacentralizedcontrolledworld areoverjustlikethecentralizedstate-run economyoftheSovietUnionisathingof thepast” —Forrester NEW NETWORKS ARCHITECTURESNEW NETWORKS ARCHITECTURES ORGANIZATIONS WHY IS DIGITAL CHANGING FSI NOW? NEW NETWORKS ARCHITECTURES ORGANIZATIONS BUSINESS MODELSNEW NETWORKS ARCHITECTURES ORGANIZATIONS BUSINESS MODELS NORMAL
- 8. Deloitte Digital Copyright © 2016 Deloitte Digital LLC. All rights reserved. 2. DIGITAL CX BUYS DIFFERENTLY
- 9. 9 Digital Sales need to replace lagging branch sales. Bank Sales Digital Banking is about protecting revenues, and growing top line. A projected 30% drop in branch sales need to be replaced by the digital channel. Banks need to drive to a 50% Digital Sales mix by 2019. HOW IS DIGITAL DIFFERENT?130 65 90 63 125 9 Non- Branch Sales 62 0 65 130 Total Sales 2014 Branch Sales 2019 (E) Total Sales Required 2019 (E) Sales Needed to Fill the Gap 2019 99 ∆ = (30)% In Millions of Active New Accounts Estimated Bank Sales Source:SourceCEBCustomerExperienceSurvey
- 10. 10 69% of digital purchases are from constant seeking, not life events. Digitals are constantly seeking in their digital network, not the Bank’s network. Constant Goal Seeking drives Digital Decision making 130 65 30% 41% 29% 28% 28% 21% 10% 8%3% 2% 0% 50% 100% Branch Oriented Digitally Oriented Other Dissastisfied with Another Product Life Event Caused a Need for a New or Different Product Responded to an Attractive Product Offering Learned That I Have a Need for the Product n = 2.343 Constant listening, engagement and messaging is required to acquire and retain digital buyers. Digital purchases are shifting away from life events to influence based, or choice based on superior solution. Digital buyers are changing products and institutions more frequently. Personalized marketing & education drives digital product selection Source:SourceCEBCustomerExperienceSurvey HOW IS DIGITAL DIFFERENT? Reasons for Financial Product Purchase
- 11. 11 Digitals do not wait to be educated by the branch. 62% learned about the financial product outside their bank. Networked Learning Process has changed Balance the investment to optimize the customer experience, returns on technology investment & neutralize risk. 130 65 BankNoticesChange Customer Learns Relevant Solution Determines Best Response Opens Necessary Account CustomerRecognizes Need Customer Chooses Bank Branch Staff Clarify Need Branch Staff Propose Solution Branch StaffFulfill Solution BankBuildsBrand Salience InitiatedTraditionalProcess SuspectedDigitalProcess ActualDigitalProcess CustomerRecognizes Need Customer Clarifies Need Customer Evaluate Alternatives Customer Selects Alternative BranchStaff Affirmor Challenge BranchStaff Fulfill Solution BankBuildsBrandSalience Customer Bank Directed Customer Controlled Bank Enabled Customer Controlled Bank Reaction Customer Learns Need Cognitive Bias is masking the true behavior of Digital customers. Digital buyers churn through products and institutions more frequently. Personalized marketing & education drives digital product selection HOW IS DIGITAL DIFFERENT?
- 12. 12 With the smartphone as the ‘bank’; Full Wallet is not in the mind of the digital customer. The full wallet must be earned. Digital Loyalty is fickle Competition for the Digital Wallet will be fierce & frequent. 130 65 0.4x 1.0x 0 0.5 1 1 2 Customers Who Consolidate All Products at Primary Institution n = 3.900 Source: Federal Reserve Board 2013 Survey of Consumer 0.7x 1.0x 0 0.5 1 1 2 Strong Likelihood to Purchase Next Product from Primary Institution n = 4.957 Source: CEB 2013 Customer Experience Survey DigitalCustomers Non-DigitalCustomers Full Wallet - is 60% less likely to consolidate all of their products. Digital buyers – are less likely to buy from a single institution. HOW IS DIGITAL DIFFERENT?
- 13. 13 Helping digitals ‘stay on track’ drives 50% more loyalty. Digitals find value in managing and measuring the pivotal steps to goal attainment--but it must be integrated and permissioned. Loyalty is an engaged experience Traditional banking is an undifferentiated experience, Digitals seek value add that impacts their goals. 130 65 Loyalty DaytoDaytasks PivotalSteps StayingonTrack PurchasingProducts FinancialPlanning DrivingAction ReducingComplexity ProvidingInformation 13% 24% 64% CustomerWeighting Source:CEBCustomerExperienceSurvey Continuous Engagement is rewarded with an increase in financial products and upsells Automate important and unpleasant tasks that help digitals attain goals HOW IS DIGITAL DIFFERENT?
- 14. 14 Digital Banks can run short cycle test and learn cycles to (digitally) learn the kind of engagement customers seek. Constantly Seek Opportunities to Engage Goal attainment and behavior modification can be executed in high volume, small impact touches that can be measured continuously in real-time. 130 65 Source:LPfinancial Customer Product Use Customer Default Risk Account Related Events Customer Feature and Channel Use Opportunity Getting ahead of potential product service problems Getting ahead of potential repayment problems Getting ahead of account related to- dos Ensuring customers get more out of product and channel features Outreach Proactive alerts Proactive alerts and tips on ways to better manage credit Reminder of upcoming account events and related tasks Educational tips during customer use of services via bank outreach Result Customers regularly use banks products without service problems Improved loan repayment decreases defaults Customers remember to take necessary account actions Customer accesses features and channels that can best meet their needs Digital Engagement creates a digital history that can be used to compare negative and positive outcomes. Digital buyers churn through products and institutions more frequently. Personalized marketing & education drives digital product selection HOW IS DIGITAL DIFFERENT?
- 15. Deloitte Digital Copyright © 2016 Deloitte Digital LLC. All rights reserved. 3. ENABLING DIGITAL CAPABILITIES WITH TECHNOLOGY
- 16. 16 Design to the Gartner Digital Business Platform, enabling the required capabilities, to defend against the threat, and to partner with the innovators, the technology stack must be rethought. Enabling the Digital Banking Capabilities Balance the investment to optimize the customer experience, returns on technology investment & neutralize risk. Data & Analytics Platform Ecosystems & API Platform IOTPlatform Information Systems Platform Customer / Digital Platform Internet of Things Platform Information Systems Platform Customer & Digital Platform Data & Analytics Platform Ecosystems & API platform Internet of things platform Employees Partners Customers Things*Gartner–G00297286 ENABLING DIGITAL CAPABILITIES WITH TECHNOLOGY
- 17. 17 Supports the Back Office and Operations such as ERP and Core systems Information Systems Platform Balance the investment to maximize returns and the customer experience. Data & Analytics Platform Ecosystems & API Platform IOTPlatform Information Systems Platform Customer / Digital Platform Internet of Things Platform Partners Customers Things SupplierPortal& Apps Employee Collaborationand Workspace CoreBanking Applications EndPoint Computing OTSystems CustomerPortal &Apps Business Intelligence BackOffice Systems Employeecollaborationandworkplace-Email,telephonyand video,filestorageandsharing,collaborationtools,productivity tools Back-officesystems-finance,HR,purchasing,MDM,billing, ERP, Coresystems–Corebanking Supplierportalandapps–VendorInteraction&supply management Customerportalandapps–Customersusethemtogain information,getcustomerservice,applyforservices,place ordersandtransact,and/orviewstatus Businessintelligence-reporting,dashboardsandonline analyticalprocessing(OLAP)analysisofback-officeandcore systemdata Operationaltechnology(OT)systems–operationalsystem directlycontrolandmonitorequipmentandassets. Endpointcomputing -endpointdevicesandthesecurityand managementtoolsthatsupportthem Employees ENABLING DIGITAL CAPABILITIES WITH TECHNOLOGY *Gartner–G00297286
- 18. 18 Contains the main customer-facing elements, such as customer and citizen portals, multichannel commerce and customer apps. Multi Channel is table-stakes. Customer & Digital Platform Things Data & Analytics Platform Ecosystems & API Platform IOTPlatform Information Systems Platform Customer / Digital Platform Internet of Things Platform Partners Customers Things SupplierPortal& Apps Employee Collaborationand Workspace CoreBanking Applications EndPoint Computing OTSystems CustomerPortal &Apps Multichannel Interaction& Commerce SocialNetworks Business Intelligence Customer Analytics BackOffice Systems Gateway to Interaction & Commerce. Integrated across the platform. Multichannel interaction and commerce- enables customerstolookupinformation,requestservicesanddoany oftheactivitiesassociatedwithe-commerce,regardlessof interactionchannel Social networks- participateinsocialnetworksfor communityinteractionandtransactional(e.g.,commerceand payment)functions.Bilateraldataexchangewithsocial networks;i.e.:feeds&reads. Customer analytics–DigitalBankingusesanalyticsranging from simplehistoricalanalysisandsegmentationtodemand analyticsandadvancedsocialsentiment.Canbediagnostic, predictiveandprescriptive(e.g.,customerofferengine). Theoutput/resultsofcustomeranalysiscanbefedtoanyother partsofthetechnologyplatform. Employees ENABLING DIGITAL CAPABILITIES WITH TECHNOLOGY *Gartner–G00297286
- 19. 19 Connects physical assets for monitoring, optimization, control and monetization. Capabilities include connectivity, analytics and integration to core and OT systems. Internet of things platform Leverage Connected Things Data & Analytics Platform Ecosystems & API Platform IOTPlatform Information Systems Platform Customer / Digital Platform Internet of Things Platform Partners Customers Things SupplierPortal& Apps Employee Collaborationand Workspace CoreBanking Applications EndPoint Computing OTSystems CustomerPortal &Apps Multichannel Interaction& Commerce SocialNetworks Business Intelligence Customer Analytics Connected Things (Partner) Connected Things (Customer) IOTAnalytics Connected Things (Internal) BackOffice Systems Connected Things (Customers) – Applications,Devices& Technology. Scale,security,cost,andprivacyandethicswillbe majorfactorsinconnectingcustomer-ownedthings Connected Things (Partners) - assetsthatitleasesorthat areoperatedbypartners,agencies,or Connected Things (Internal)–TheIoTplatformprovides connectivity,andinteractiontothisequipment,andshouldbe abletohandlemanydifferentdataandwirelessstandards. IOT Analytics - DigitalBankingusesanalyticsrangingfrom simplehistoricalanalysisandsegmentationtodemandanalytics andadvancedsocialsentiment.Canbediagnostic, predictive andprescriptive(e.g.,customerofferengine). Theoutput/resultsofcustomeranalysiscanbefedtoanyother partsofthetechnologyplatform. Employees ENABLING DIGITAL CAPABILITIES WITH TECHNOLOGY *Gartner–G00297286
- 20. 20 Supports the creation of, and connection to, external ecosystems, marketplaces and communities. API management, control and security are its main elements. Partner & Connected Ecosystem Run or Participated in Ecosystems and API Economy Data & Analytics Platform Ecosystems & API Platform IOTPlatform Information Systems Platform Customer / Digital Platform Internet of Things Platform Partners Customers Things SupplierPortal& Apps Employee Collaborationand Workspace CoreBanking Applications EndPoint Computing OTSystems CustomerPortal &Apps Multichannel Interaction& Commerce SocialNetworks Business Intelligence Customer Analytics Connected Things (Partner) Connected Things (Customer) IOTAnalytics Connected Things (Internal) EnterpriseRun Ecosystems Customer FacingAPI API Management IndustryRun Ecosystems PartnerFacing API’s APImanagementsoftware–management,securityand governanceareforAPIsthatwillbepublic-facingandAPIsfrom partnersthatwillbeemployedinabusinessecosystemthat couldincludeemployees,customersandpartners Customer-facingpublicAPIs-tobeusedbycustomersor otherpartnersincustomer-facingroles Partner-facingpublicAPI-Designedtobeusedoutsidethe enterprise,butforpartnersinsteadofcustomers. Enterprise-runecosystems-Theabilitytocreatesocialgraphs, feeds,monetizationenginesandalgorithmsthatlinksupply withdemand(e.g.,recommendationengines)aresomeofthe maincapabilitiesofthisplatform. Industry-andvendor-runecosystemsThetechnologiesthat connectandallowinteractionandcommercetooccurarepart ofthe capabilitiesofanecosystemplatform.Ie:Intuit’sFinancialAPI’s, SAPAriba. EmployeesBackOffice Systems ENABLING DIGITAL CAPABILITIES WITH TECHNOLOGY *Gartner–G00297286
- 21. 21 Information management and analytical capabilities. Data management and analytical applications fuel data-driven decision making; algorithms automate decisions, discovery and action. Data & Analytics Platform: From Siloed BI to Analytics Everywhere Data & Analytics Platform Ecosystems & API Platform IOTPlatform Information Systems Platform Customer / Digital Platform Internet of Things Platform Partners Customers Things SupplierPortal& Apps Employee Collaborationand Workspace CoreBanking Applications EndPoint Computing OTSystems CustomerPortal &Apps Multichannel Interaction& Commerce SocialNetworks Business Intelligence Customer Analytics Connected Things (Partner) Connected Things (Customer) IOTAnalytics Connected Things (Internal) EnterpriseRun Ecosystems Customer FacingAPI API Management IndustryRun Ecosystems PartnerFacing API’s PartnerAnd Supplier Analytics Business &Op Analytics Algorithm Engines BackOffice Systems Employees Partner and supplier analytics– analyzetheservices renderedandproductsdeliveredbyvendorsandpartners. Includesdataprocuredfromtherapidlyexpandinglandscapeof databrokersandopendatasets. Business and operational analytics- analysescanbe financial,market-focusedandprocess-focused.Dataforthese typesofinsightswillcomefromcoresystemandbackoffice sources,complementedbyothersources. Algorithm engines- Algorithmandanalyticsmodelling workbenchesarebecominganimportantcapabilityforbanks. Setsoftoolscreateandthenrunthealgorithmsusedinallparts oftheenterprise. Artificial Intelligence- branchofcomputerscience attemptingtobuildmachinescapableofintelligentbehavior. Machine Learning - Basedonalgorithmsthatcanlearnfrom datawithoutrelyingonrules-basedprogramming.Ie:Google ‘didyoumean..’ Artificial Intelligence Machine Learning ENABLING DIGITAL CAPABILITIES WITH TECHNOLOGY *Gartner–G00297286
- 22. Deloitte Digital Copyright © 2016 Deloitte Digital LLC. All rights reserved. 4. DIGITAL BANKING PLATFORM – DELIVERING ON CUSTOMER EXPECTATIONS
- 23. 23 Algorithms are at the heart of all on-demand digital solutions. The Algorithm will blend digital, human and operational processes that bring customers fully automated, end-to-end value to match emerging expectations. The platform must listen, adapt, and be scalable. Digital Banking Platform – Meeting current & Future expectations The most successful digital solutions will combine innovation to deliver market value and disruption in real time, all the time. Data & Analytics Platform Ecosystems & API Platform IOTPlatform Information Systems Platform Customer / Digital Platform Internet of Things Platform Partners Customers Things Employees Listen - is where the algorithm begins. This element focuses on the edge or the front end of systems, enables and triggers opportunity. Adapt- is the heart of the algorithm. It focuses on the IT systems and data analysis, striving to derive meaningful insights and predictions out of raw data. Scale is where the algorithm runs. This element focuses on ensuring that "listen" and "adapt“ happen every time and everywhere. DELIVERING ON CUSTOMER EXPECTATIONS
- 24. 24 Digital engagement and CX initiatives are outpacing the supporting Information Systems Platform Legacy Banking Platforms – Application Mapping Past: Information Systems Platforms à Digital Platform Present: Digital Platform à Information Systems Platforms Future: Virtual Platform à Digital Platform Data& Analytics Platform Ecosystems& APIPlatform InformationSystems Platform Customer/Digital Platform Internetof ThingsPlatform The Core has Shifted - Most Legacy Banking platforms (Information Systems Platform) were designed & launched when banking was a ‘systems of record’ activity, with the shift the digital, the core must be repurposed support the customer / digital platform. Sustaining Digital Gains - To sustain the gains made in digital, the core investment needs to be balanced so that True Digital Transformation can occur. Pulling the Core – Driving Digital Customer Experience is pulling the core closer to the customer. Digital Processes must support the Digital Customer. Partners Customers Things SuccessFactors SAPBankAnalyzer SAPHCP SAPHybris E- Commerce SAPCRM Excel EDW SAPHybris Marketing ESB SAPCore(ECC) Exchange ECM SharePoint SAPBW Employee DELIVERING ON CUSTOMER EXPECTATIONS
- 25. 25 To deliver on the Digital promise, Banks needs to pull the core Information Systems Platform towards the Customer / Digital Platform. Unbalanced transformation will deliver marginally decreasing returns as the back end will not be able to execute on the digital promise. Activate the Digital Banking Platform – Pull the Core Horror Vacui – Nature Abhors a Vacuum. Data & Analytics Platform Ecosystem s & API Platform Information Systems Platform Customer / Digital Platform Internet of Things Platform Partners Customers Things SuccessFactors SAPBank Analyzer SAP HCP SAP HybrisE- Commer ce Excel EDW SAP Hybris Marketing ESB SAPCore (ECC) Exchange ECM SharePoint SAPBW Employee Holding the Core Back Myths…. Mobile banking is sufficient to cope with CX needs: Omni Channel should be a consistent experience, back end or ‘execute’ platforms need to deliver in real-time. Ancient Solutions risky to enhance – Hard-wired business logic and rigid transactional interfaces don’t allow quick extensions, and some applications got maintained to death — delivering close-to-zero flexibility and low availability. Risk prevents E2E transformation – Transformation & Reinvention will be perpetual. Agility supersedes robustness. New Solutions / Priority unclear- Identifying the priorities is complex; feeling of ‘no good answer’. SAPCRM DELIVERING ON CUSTOMER EXPECTATIONS
- 26. 26 Supporting the notion of rapid and constant transformation — as opposed to one-time, multiyear change projects — and allows enhancements of existing solutions. Digital Banking Platform – Accelerate Customer Experience, Innovate, Connect, & Mitigate Risk Virtualandin-memoryisthestandardforreal-time DigitalCoreFocusesOnCustomerEngagementAndEases Transformation. Data& Analytics Platform Ecosystems& APIPlatform IOTPlatform InformationSystems Platform Internetof ThingsPlatform Partners Customers Things Employees Vena SAPBanking Services9.0 SAP HCP SAP Hybris Marketing ESB S4 Exchange ECM SuccessFactors Customer/ DigitalPlatform SAP HybrisE- Commer ce E-HANA Information Systems Platform – Agile,Robustand Real-Time,abletoprocess,connectandsupport bank’sdigital ambitions.TheHubofallcustomerandtransactionaldata. Customer / Digital Platform- Flexibleandconnected, abletointegratewithFintech’s,drivinginnovation,ableto deliver‘in sevenseconds’. Data & Analytics Platform–Customer&Enterprise Intelligence,CenterforAutomation,M2M,Algorithms, Exponential Ecosystems & API Platform– SocialMedia Integration,FintechIntegration, Internet of things platform– Sensing&listeningfor therighttimeandrightplacetomakenextoffer. SAPCRM DELIVERING ON CUSTOMER EXPECTATIONS
- 27. Deloitte Digital Copyright © 2016 Deloitte Digital LLC. All rights reserved. 5. DIGITAL BANKING PLATFORM – FINANCE & CAPITAL
- 28. 28 SAP S4 & SAP Bank Analyzer SAPhasbuilttheS4&SAPBankingServicesSuitetoaddressthemostcommonbankingchallenges,thepressuretoengage,forliquiditymanagement and ultimatetransparency. FINANCE & CAPITAL The Universal Journal in S4–S/4HANAFinanceisan AccountingSystem,whosefinalobjectiveisproviding multidimensionalFinancialStatements,eliminatingtheseparation betweenSub-LedgersandtheGeneralLedger. Sap Banking Services / Bank Analyzer - isaCapital Optimizer,whoseobjectiveisofferingamultidimensional representationoftheAccountingResultsofabank’sbusiness segment,theCapitalconsumedforgeneratingtheresults,andthe liquiditygeneratedorconsumedintheprocess.Thisisthefoundation oftheIntegratedFinancialandRiskArchitecture. PostingsintheLedgerareforRisk,Liquidity,Accounting&Cash. SAP Accounting for Financial Instrument s(AFI) Sub-ledger Loans Deposits Securities S/4HANA Finance General ledger Cards Sub- ledger ● GLacctderivation ● Sub- ledger Postings Accountin gEngines ● Amortizedcosts ● Fairvalues ● Riskprovisioning ● Hedgeaccounting ● Re-classification ● Forex ● Notes ● Otherresults ● AggregatedAFIpostings ● Manualpostings ● AcctsPayable ● Fixedassets ● Planning ● Consolidation Events registe r ● Masterdata ● Cash-flows ● Businessevents ● Businesstrans- actions ● Marketdata Derivatives
- 29. 29 SAP S4 & the Universal Journal SAPhasbuilttheS4&SAPBankingServicesSuitetoaddressthemostcommonbankingchallenges,thepressuretoengage,forliquiditymanagement and ultimatetransparency. SAP Accounting for Financial Instrument s(AFI) Sub-ledger Loans Deposits Securities S/4HANA Finance General ledger Cards Sub- ledger ● GLacctderivation ● Sub- ledger Postings Accountin gEngines ● Amortizedcosts ● Fairvalues ● Riskprovisioning ● Hedgeaccounting ● Re-classification ● Forex ● Notes ● Otherresults ● AggregatedAFIpostings ● Manualpostings ● AcctsPayable ● Fixedassets ● Planning ● Consolidation Events registe r ● Masterdata ● Cash-flows ● Businessevents ● Businesstrans- actions ● Marketdata Derivatives Universal Journal - Combinedfinancialandmanagementaccountingand profitabilitydataintooneuniversaljournal. Planning, Forecasting, Budgeting, Consolidation- planning, budgeting,forecasting,financialreporting,andconsolidations.SAPBPCforS/4Hana, nativelyintegratesS/4HANAatthedatalevel. Treasury and risk management - managepaymentsandbank communicationsandhelpmanagecash,liquidity,debt,investment,financialrisk,and commodityrisk. Corporate Finance- Real-timevisibility intoexchangeratesandworking capital;automatetreasuryoperationsandrelatedactivities,optimizecashforecasting, ensureadequateliquidity,improvefinancialriskmanagement,andensurecompliance withglobalaccountingregulations.Receivables,payables,invoiceprocessing,and travelmanagementsolutionscombinewithitsrealestatemanagementinreal-time, allthetime. Lights-Out Finance- continuousandevent-drivenfinance. financialand managementaccountingandprofitabilitydataintooneuniversaljournal. Reconciliation- Alltheaccountinginformationinasinglemulti-dimensional ledger,withseparatedbutintegratedentries,structuredonthemultipledimensionsof thisledger.IntegratingtheBankAnalyzerAccounting(sub-ledgertype)Postingsinthe S4HANAUniversalLedgerBankshaveZEROreconciliationeffortbetweenthe accountingandbankingapplications. Customer Lifetime Value Product Profitability View Channel Profitability View Integrated Planning& Forecasting Real-Time Analytics Lights-Out Finance FINANCE & CAPITAL
- 30. 30 SAP Bank Analyzer SAPhasbuilttheS4&SAPBankingServicesSuitetoaddressthemostcommonbankingchallenges,thepressuretoengage,forliquiditymanagement and ultimatetransparency. Optimize Capital–andfulfillstheIFRSreportingrequirements ofaFinancialInstitution. Compliance - IFRS9,BaselIII,IFRS15,BCBS239,TLACare notisolatedpiecesofregulation,they'reacompleteframework designedtoputCapitalEfficiencyatthecenterofthebanks'strategic objectives,oftenbybusinesssegment. Bank Analyzer IFRA–providesanaccuratemeasurementof theCapitalandLiquidity,generatedandconsumed,byanypotential combinationofanalyticaldimensions,includingthebusiness processesinvolved IFRS 9 –requirestoreportin"accountingterms",theCapital generatedandconsumedbybusinesssegment,includingFairValue andImpairmentCalculationsdataonceandrollingthesame detaileddatainmultipleways Capital Consumption –CorrespondentCapitalRequirements oftheBank'sAssets SAP Accounting for Financial Instrument s(AFI) Sub-ledger Loans Deposits Securities S/4HANA Finance General ledger Cards Sub- ledger ● GLacctderivation ● Sub- ledger Postings Accountin gEngines ● Amortizedcosts ● Fairvalues ● Riskprovisioning ● Hedgeaccounting ● Re-classification ● Forex ● Notes ● Otherresults ● AggregatedAFIpostings ● Manualpostings ● AcctsPayable ● Fixedassets ● Planning ● Consolidation Events registe r ● Masterdata ● Cash-flows ● Businessevents ● Businesstrans- actions ● Marketdata Derivatives FINANCE & CAPITAL
- 31. 31 SAP Bank Analyzer SAPhasbuilttheS4&SAPBankingServicesSuitetoaddressthemostcommonbankingchallenges,thepressuretoengage,forliquiditymanagement and ultimatetransparency. Optimize Capital–andfulfillstheIFRSreportingrequirements ofaFinancialInstitution. Compliance - IFRS9,BaselIII,IFRS15,BCBS239,TLACare notisolatedpiecesofregulation,they'reacompleteframework designedtoputCapitalEfficiencyatthecenterofthebanks'strategic objectives,oftenbybusinesssegment. Bank Analyzer IFRA–providesanaccuratemeasurementof theCapitalandLiquidity,generatedandconsumed,byanypotential combinationofanalyticaldimensions,includingthebusiness processesinvolved IFRS 9 –requirestoreportin"accountingterms",theCapital generatedandconsumedbybusinesssegment,includingFairValue andImpairmentCalculationsdataonceandrollingthesame detaileddatainmultipleways Capital Consumption –CorrespondentCapitalRequirements oftheBank'sAssets SAP Accounting for Financial Instrument s(AFI) Sub-ledger Loans Deposits Securities S/4HANA Finance General ledger Cards Sub- ledger ● GLacctderivation ● Sub- ledger Postings Accountin gEngines ● Amortizedcosts ● Fairvalues ● Riskprovisioning ● Hedgeaccounting ● Re-classification ● Forex ● Notes ● Otherresults ● AggregatedAFIpostings ● Manualpostings ● AcctsPayable ● Fixedassets ● Planning ● Consolidation Events registe r ● Masterdata ● Cash-flows ● Businessevents ● Businesstrans- actions ● Marketdata Derivatives FINANCE & CAPITAL
- 32. 32 SAP Bank Analyzer CombiningS4andBankAnalyzerisapowerfuladvantageforBanks Virtual views of the sub-ledger–Dynamicallyadjustor createnewviewsofthedatasetsinthesubledgerinstantly. Data orstructuresdonotneedtobealteredormoved. N combinations of data views- Mergedatafromexternal applicationsorexternalfeeds(ie:social,regulatory,exchange)to createinfiniteviewsoflookingatBank’sdata,seekingnew opportunityanddefendingagainstchallenges. Continuous visibility to Profitability and Exposure– providesanaccuratemeasurementoftheCapitalandLiquidity, generatedandconsumed,byanypotentialcombinationofanalytical dimensions,includingthebusinessprocessesinvolved Continuous Activity Based Costing - Modelcostsand revenuesfromnonfinancialdatacollectedcontinuouslyfrom clickstreamdatainecommerceapplicationssuchashybris. Compliance –requirestoreportin"accountingterms",the Capitalgeneratedandconsumedbybusinesssegment,including FairValueandImpairmentCalculationsdataonceandrollingthe samedetaileddatainmultipleways Digital–Abletoleveragedatainthemoment,make recommendationsandofferstocustomersbasedonvolatiledata sets/datastreams. SAP S/4HANA General Ledger SAP AFI Financial Instrument Sub ledger SAP AFI sub-ledger Rich Ledger Customer Instrument pricing Valuations, Classification Etc……. GLAccount Legalentity (CoCd) Trading partner Geography Business segment Costing Statistics Customer Type Source System Profitcenter / Costcenter Portfolio Product GeneralLedgerDimensions NOBWREQUIRED FINANCE & CAPITAL
- 33. Deloitte Digital Copyright © 2016 Deloitte Digital LLC. All rights reserved. DIGITAL BANKING PLATFORM – END STATE ARCHITECTURE
- 34. 34 The DBP Enabled by HANA is Real-Time & Virtual Digital Banking Platform END STATE ARCHITECTURE Note1–Cloudintegrationvia POorHCItobedetermined Continuous Banking is Realized Listen - Continuous virtual views between the 5 platforms allows data, algorithms and customers offers to be personalized and triggered based on customer behavior & non-system activity (ie social). Adapt- When the sensing engine identifies an opportunity or intervention, the adapt engine calculates an offer or the appropriate intervention based on algorithms, rules and machine learning. This process is designed to run ‘lights out’. Scale – Leveraging the Listening & Adapt elements, the system can run continuously, not bound by geography, hours or events. Banking is Continuous. Data & Analytics Platform Ecosystems & API Platform IOTPlatform Information Systems Platform Customer / Digital Platform Internet of Things Platform Partners Customers Things Employees
- 35. 35 An unbalanced transformation approach will fail to deliver digital expectations, great CX and increasingly increase risk exposure for Banks. The long-tem business model has changed, so must the architecture. Digital Banking Platform – The urgency to tighten the gap Withoutcorerevitalization,Banksendupwitha‘digitalfaçade’withoutasupporting businessinfrastructureforlongrunsuccess Data Rot-Stale data rots at an accelerated rate; when end- users are engaging with vibrant data, quality improves. Continuous Change- The banking industry has entered a phase of continuous change, the architecture must be flexible and responsive. Modern Solutions- Modern solutions will form part of the portfolio, modern integration must exist to participate. Fintech Integration- ServicesprovidedthroughFintech organizationsneedtobeenabledinastandardizedinterfaceto encourageexperimentationandrapiddiscovery Organizational Learning- Tighter engagement cycles from 3 months to 3 minutes amplify data centric learning; 40,000X learning cycles are enabled reducing costs and personalizing the customer experience END STATE ARCHITECTURE