Process-centric Banking: Improve Agility, Efficiency, and the Customer Experience

2. Process-centric Banking: Improve Agility, Efficiency, and the Customer Experience Nilesh Trivedi, APAC Industry Architect Team Jatin Thakur, APAC BPM Team

3. Agenda • Industry Trends • Traditional Approach vs. Process-based Approach • Process Centric Banking - Under the hood • So what is the Best Approach to adopt Process Centric Banking? • Time-to-value with Process Accelerators • Customer Success Stories • Q & A

4. The Momentum….

5. What is your Unique Differentiator We have the best Apps…. Bank A Bank B Q: How do I differentiate against my competition? A:Business Process Excellence

6. Traditional ApproachTechnology focused approach results in sub-optimal results Spaghetti of Applications High-level Process Siloed Approach to Implementation

7. Key Business Challenges • Lack of visibility – Decision making is harder • Front-office staff, processors and supervisors have limited visibility into the process • Exception management is manual and load sharing is limited • Impossible to define SLA and communicate the same to customers • Higher costper application • A lot of resources and $$s in processing because of manual processing • Poor document management, Delay due to Multiple-Hand offs • Business User efficiency is low • Users should be able to the tasks easier, No Guidance • Ability to integrate documents at each step • Flexibility to react to market developments is limited • New product introduction, promotions, adding/removing specific steps • Continuous process improvement and optimization • High Riskand enterprise readiness for scale • Inconsistent Process Execution and enforcement of Policies / Procedures • Unknown “Unknowns”

8. Key IT Challenges • Implementation of end-to-end Processes • Modeling flexible business processes that cuts across departments • Quickly respond to change in the process with Faster-Time-To-Market • Connect to & Re-use existing application services • No point building services from scratch or build point connections to existing applications • Application slios, re-entering data limit system capability • Provide consistent User integration • Multiple UIs for users can be confusing • Managing Information including Data and Unstructured Content (e.g. Documents) • Flexible Architecture • Extendibility - Solution architecture should support extensions such as business rules, Application integration, partners • Flexibility – plug-n-play components, ease of use, leverage existing investments • Operations ready • Reporting, exception management • Support project life cycle management – model, develop, deploy and manage

9. Paradigm Shift - Process-based ApproachProcess is central not just to implementation approach but also to architecture….facilitates better ‘Business-IT’ collaboration Process-based Implementation/Architecture Facilitates better ‘Business-IT’ Collaboration Extensible Architecture WYMIWYE – What you Model is what you Execute

10. Process Improvement is a Recognized Priority

11. Process Centric Banking – Under the Hood

12. Process Centric Banking is Powered by Oracle BPMUnified platform for processes including people, apps, documents, events and rules Systems People Events Documents Decisions

13. Process Composer • Business analysts can capture the process • Or import existing process from Visio etc. • Share models and collaborate • Manage snapshots

14. Adaptive Case Management • Case Activities, Events, Stakeholders and Permissions • Runtime management of above concepts • User driven task decomposition • CMIS support to work with multiple content stores

15. How does Dodd Frank changes the way the Banks operate

16. Process Flow – Our Solution Discoveryanalysis Endeca Mobile access Action Officer Case Worker Case Manager Rule based evaluation Serial Activity? Open Case Portal, Mobile Request from Regulator Escalation Dispatch Responders Case Team collaborates to resolution Balance Process, Resource & Cost Performance Case Manager Close Case Identify new case trends with RTD* Refine Automation and Approvals Post-Incident Analysis & Recommendations Send Data Refine Alerts

17. Enhanced Business Rules • Business Policies • Flexible Processes with • dynamic binding • Approval and Task routing • Flexible case handling • Rule Testing

18. Integrated Content Management • Tight integration with Content management systems • Document workflow • Third-party content integration with CMIS

19. Interfaces Delivered on Mobile Browser-based and/or Native Mobile App

20. Actionable Business Insights Oracle BAM Tailored Reports; Manage-by-Exception; Act on Alerts • Monitor processes in real-time • KPIs and SLAs • Analyze events as they occur • Correlate events & KPIs • Identify trends & Alert users real-time • Act on current conditions • Event-driven alerts • Real-time dashboards

21. Process Centric-Banking – Foundation Central Content Repository Consistent Multi-Channels and Web Experience Simple User Access Management Enterprise Process Management Layer Easy-to-Use Console for Provisioning & Management Data in Correct Format & at Correct Time Easy Connectivity to External Application & Data Sources Highly-Available, High-Performance, Scalable & Secure Platform Infrastructure

22. Oracle Provides a Common Service Infrastructure that take care current and future IT needs Universal Content Management WebCenter Identity & Access Management Business Process Management (BPM) Oracle Enterprise Manager Oracle Data Integrator & Goldengate Service-Oriented Architecture (SOA) Exalogic Elastic Cloud Machine & Weblogic Application Server

23. So what is the Best Approach to adopt Process Centric Banking?

24. How do We Start? Possible Approach • Develop/modify a custom/existing application • Gives maximum opportunity to build what you want but inflexible to upgrade and maintain. Higher TCO in long term • Buy a packaged application and adapt it • Customizing a generic application can betediousand prove as difficult as above. • A solution based on process configuration framework • Independent Services and Business Process Modeling provide decoupled architecture that is flexible • Build from disparate/un-integrated tools • Initially seems easier than developing from scratch. But, without integrated tool sets this is not a viable approach either Oracle Business Process Management Suite Approach

25. Oracle Process Accelerators™ Pre-Built Industry and Horizontal Process Solutions Financial Services Public Sector Horizontal Travel Request Management Loan Origination Incident Reporting Document Routing and Approval Business Account Opening eForms Management Credit Card Dispute Resolution Internal Service Request Licensing and Permits Financial Reporting Approval Employee Onboarding Correspondence Management Insurance Claims Management Approvals Management Insurance Policy Underwriting http://www.youtube.com/user/OProcessAccel

26. Accelerators to Fast-Track process designReference models with relevant meta-data for process automation Credit Scoring Fulfillment Compliance Initiation • Automated tasks • Service integration to IT applications • Adapters and Connectors to end-points • Business rules • Hot deployable changes • Rules driven routing • Content Integration • Document Processing • Scanned Images • Human Task • Worklist of user or group • Calendar, delegation, escalation • Sharing notes & documents • Track processes • Gather process KPIs • Process Intelligence • BAM dashboards • Alerts • Single interface between people and processes • Ties tasks, alerts, discussions, documents, communities, intelligence in context of process

27. FS Loan Origination (FSLO) Process Accelerator

28. Demonstration Loan Origination Process Accelerator

29. FSLO High Level Process Steps Process Owner (Monitor & Analyze) Auto Background Checks Compliance Analyst (Verify Applicant Identities) Mobile Channel (Create Loan Application) Loan Underwriter (Approve or Decline Application) Create & Disburse Loan Loan Processor (Obtain Contract Signatures) Loan Processor (Create Submission Package) Loan Officer (Create Loan Application) Obtain Credit Ratings Web Channel (Create Loan Application) Appraise Collateral

30. FSLO PA Highlights • Extensible Business Process Based Solution • Best Practice, Top-Down Process Design • Robust, Relational Data Model • Business-friendly, Extensible ADF User Interface • Business Rule-Driven Process Execution • Enforce Regulatory Compliance (e.g. KYC/AML) within New Business Process • Integrates Across Internal Systems & External Services • Multi-channel Enabled Process Initiation & Inquiry • Centralized Document Management in UCM • Eliminates Errors by Avoiding Repeated Data Entry • Monitor & Analyze Process Execution • Monitor the Business Process in Real-Time • Identify & Correct Processing Bottlenecks • Measure Product & Worker Performance

31. Process Led View of Trade Finance - Import LC Issuance Perform Regulatory Check Receive Import Letter of Credit Application Perform signature verification Customer Perform document verification Perform Limit Check on customer Dispatch Import Letter of Credit Structure Import Letter of Credit Reporting of Import LC Exposure Perform Credit Report Check on supplier Perform Margin Money Check

32. Trade Finance – LC Issuance – Process Diagram Customer Service Executive Documentary Credit Executive Documentary Credit Manager Compliance Manager

33. Online Data Capture Trade Portal - Import LC Processing

34. Case Study

35. Major Multinational Bank - Corporate & Investment BankingCustomer Acquisition Due Diligence System CC Group Opportunities & Challenges • Develop multilevel, configurable workflow management system • Worldwide implementation hence the work-list entitlement (user may have multiple roles/countries assigned) needed to be accurate • Regional workflows • Incorporate business rules for Senior public figure, high risk, Negative List, Casino, Embassy etc • Exception Management & Notifications Solution • Oracle BPM technologies provided elegant CADD initiation, assignment, renewal, review, compliance and approval process along with Global CADD Search and creation of country appendix • Integration with existing Portal, DMS, Seibel CRM, Patriot Act • Custom API based Framework for enhanced security and control Results • The cycle time was improved from weeks to within a day for existing customers • Replaced the existing disparate solutions and the manual processing • Provided a common platform for eCADD worldwide • The unified solution eased the client on-boarding and the maintenance process

36. Real Time KPI Monitoring & 360o Process VisibilityExecutive Dashboards

38. Conclusion

39. Process Centric Banking Summary • Oracle BPM solution helps customers to create their unique end-to-end business process that can elegantly integrate with the various packaged applications and at the same time provide automation across applications via a standard platform that helps businesses to: • be agile (loosely coupled & changes are not done as apps customization) • simulate the process • provide “What-You-Model-Is-What-You-Execute” capability (WYMIWYE) • handle exceptions well • apply business rules consistently • ease to bring new applications & B2B partners onboard • have 360o visibility of business process & key performance indicators (KPI) • be effective (reduce cycle time, reduce cost, better use of resources, go green & improve customer satisfaction)

40. Key Takeaways Oracle is the Market Leader and Customers are enjoying the real benefits from Oracle today Oracle offers a one stop end-to-end solution for your process improvement needs Process centric banking is a key ingredient for the next generationbanking architecture to the drive business results 1 2 3