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Financial Services - Banking
Transforming Banking
Strategic choices for winning in the digital economy
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Transforming Banking
A World of Infinite Possibilities
BUILDING THE BANK OF THE FUTURE
New technology is transforming how we bank. It’s fundamentally
challenging the traditional banking role. But it’s also opening up
a world full of infinite possibilities.
The boundaries of traditional retail banking value chains
are becoming blurred, with online retailers, communities,
marketplaces, and platforms having access to large customer
and supplier networks.
Breakthrough technology trends are shaping the digital
economy and driving an unmatched era of digital innovation.
A whole range of factors is causing banks to reimagine
existing business models.
Only 6%
Of financial services organizations can
personalize marketing by using deep
insight into customer preferences,
behavior, and sentiment, such as on
social media
Source: SAP benchmarking
45%
Of banks believe monitoring borrower
behavior to anticipate and respond to
default risk is the biggest opportunity
for Big Data to improve performance
in guarding against loan defaults
Five Key Technology Trends
DELIVERING UNPRECEDENTED BUSINESS INNOVATION
We are living in an unmatched era of innovation, where breakthrough technologies have matured and are delivering radical change.
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Hyperconnectivity
Today’s customers and businesses are
socially connected and in charge. Banks
are responding with highly interactive
communications and new, engaging products
and services.
Supercomputing
Large-scale in-memory computing is enabling
massive simplification of processes and is
providing the ability to anticipate customers’
needs and assess risks in the moment.
Cloud computing
Cloud computing offers banks the opportunity
to rapidly deliver new business models and
technologies while reducing costs and freeing
up valuable resources for innovation.
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Smarter world
As intelligent, always-connected devices
become commonplace, banks can take
advantage with smarter banking products
that reshape value chains and redefine how
banking is conducted.
Cybersecurity
To protect against fraud and other
cyberattacks, technologies like multifactor
authentication, biometrics, contextual
analysis, location-based intelligence,
and behavioral analytics are becoming
increasingly important.
Source: "Retail Banks and Big Data: Big Data as the key to better risk
management,” Economist Intelligence Unit, 2014.
LEARN MORE
Get an in-depth look at the future of banking in the digital
economy with our complimentary thought leadership report.
https://goo.gl/K0USN9
Hear how our customers see banking evolve in the digital
economy. https://goo.gl/MuVxV6
Note: All sources cited as “SAP benchmarking” are based on our research with customers
through our benchmarking program and/or other direct interactions with customers.
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Transforming Banking
Reimagining Banking
Five Characteristics of a Digital Bank
THREE COMPONENTS OF DIGITIZATION
BUILDING THE FOUNDATION FOR SUCCESS
ONE: A DIGITAL CORE
At SAP, we believe the bank of the future needs to reimagine
itself in three key areas:
What is the DNA of a digital bank? Based on our insights, we
believe there are five fundamental characteristics that define
the bank of the future.
Simplify and standardize core banking processes
By developing a digital core that combines transaction
processing and analytics, banks can reduce time to market,
standardize product development procedures, orchestrate
end-to-end processes, and integrate them with customer
channels and third parties.
Reimagining business models
Traditional business models are no longer sustainable.
We see retail banks reevaluating their customer engagement
strategies, networks, digital capabilities, and data insights to
find new, real-time ways of delivering the products and services
that customers want.
.
Reimagining business processes
Direct interaction with customers and the ability to execute the
majority of processes in the moment will fundamentally change
how banks operate. Examples of this include robo-advisors,
cashless payments, instant lending, and digital marketing.
Effective
workforce
engagement
Collaborative
business
networks
A digital core
As a result, they can deliver faster, more proactive responses
to customers, accelerate product delivery, collaborate more
effectively with suppliers and partners, and improve employee
productivity.
TWO: SEAMLESS CUSTOMER SERVICE
Mastery of
Big Data
Reimagining work
With simpler, streamlined processes, automation, and instant
information, banks can eliminate manual work and invest in
improving skill sets, moving employees to higher-value activities
that deliver greater returns for the bank and its customers.
Seamless
customer
service
Simple, in-the-moment, personalized experiences
The bank of the future brings together marketing, sales, banking
services, and commercial operations processes, enabling the
entire customer experience to be digitalized regardless of the
channel that is used.
In addition, it has a 360-degree view of customers and employs
sophisticated predictive analytics to deliver personalized offers
and provide live interaction over any channel and device.
75%
10 minutes
Reduction in time to
market for new products
Time needed to open a mobile
account, down 64%
See how Adarsh Credit has decreased its dependency on
physical branch infrastructure while reducing operational
costs by 30%. http://goo.gl/fTgmRV
Source: Commonwealth Bank of Australia Business
Transformation Study, 2013.
https://goo.gl/gqHRwe
Watch our videos to see how the bank of the future will be
a bank of one.
https://goo.gl/N8dt5g
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LEARN MORE
Discover why individual attention is important to Liane
https://goo.gl/HjuoKC
Find out why being connected is vital for Kirtland
https://goo.gl/glH2JO
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The Journey to the
Bank of the Future
Get In Touch
THREE: EFFECTIVE WORKFORCE ENGAGEMENT
FIVE: MASTERY OF BIG DATA
SUCCESSFULLY UNDERTAKING DIGITAL TRANSFORMATION
LET’S TALK ABOUT HOW WE CAN HELP YOU
Improve total productivity
Reimagining work enables banks to substantially increase
productivity and improve decision making, by using smart
applications to provide employees with live transaction
processing and easy access to the right information on
any device.
The currency of the digital economy
Big Data offers banks unprecedented opportunities to analyze
massive amounts of internal and external data in the moment
and apply the insights gained across the entire value chain.
To take advantage of the opportunities provided by the digital
economy, traditional banks have to transform themselves.
But it is a major undertaking that impacts people, processes,
and technology throughout the organization.
Contact us through our web site below and we’ll arrange an
introductory meeting to discuss your requirements.
By mastering Big Data as well as operational and predictive
analytics, banks can optimize the customer experience with
tailored, context-aware offerings. They can use internal and
external data assets to make better and faster decisions, and
improve the overall reporting of finance and compliance.
At SAP, we not only have a vision of what the digital bank of the
future will look like, we also have the solutions that can help you
make the transformation and digitize your end-to-end business.
Why not talk with us about your priorities and how we can help
you address them?
At the same time, banks can manage the entire workforce
lifecycle in one place, including recruiting, onboarding,
performance, compensation, and learning.
FOUR: COLLABORATIVE BUSINESS NETWORKS
Leverage relationships with suppliers and partners
Building an ecosystem of customers, suppliers, advisors, and
partners is a prerequisite for success in the digital economy.
Knowing this, successful banks are using established business
networks to extend their processes beyond the four walls of
the business.
As a result, banks can open up countless new ways for
optimizing the business, simplifying processes, reducing cost,
and providing the agility required in a fast-changing digital
world.
Visit our Web site: http://goo.gl/iequXv
Follow us on:
D!: http://goo.gl/tPhGa6
Facebook: https://goo.gl/y5k74t
Twitter: https://goo.gl/aT2eDo
YouTube: https://goo.gl/Tw6ehA
SCN: http://goo.gl/IKiJQH
Expanding business processes to encompass partners,
suppliers, advisors, and customers reduces manual effort,
improves collaboration, accelerates transaction processing,
enforces compliance, and raises productivity.
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LEARN MORE
LEARN MORE
Learn how the Ariba Network helped one financial
services provider create a simple and seamless
procurement process. https://goo.gl/LMpdHs
Watch Falk Rieker, global head of the banking industry
business unit at SAP, discuss how leading banks are
reevaluating their business models and processes to remain
relevant and competitive in the new digital economy.
https://goo.gl/SJFMfY
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