delivering the future of banking today

Industry Executive Overview

SAP for Retail and Commercial

Banking

Delivering the Future of Banking Today

Executive

Summary

SAP Solutions SAP Innovations References Contact Us

© 2013 SAP AG

© 2013 SAP AG 2 / 44

Delivering the Future of Banking Today

Banks must seek new competitive advantages in response to changes in customer

trust, demographics, and demands as well as profit margins reduced by higher

capital requirements, compliance costs, and lower fee income.

While most banks have made customer-centricity one of their highest priorities, the recent global

financial crisis has led to an erosion of customer loyalty. Meanwhile, banks find that distribution

through branch networks and the Internet are inadequate for satisfying demands among younger

customers for service “right here, right now.”

An evolving market brings additional challenges such as higher costs of capital and funding. As

investors and banks increasingly share risk, banks face greater government supervision of the

industry, new requirements for capital coverage, and higher compliance costs. Greater

transparency in pricing has caused, especially in the retail markets, a reduction in (or even the

elimination of) fees, which is further eroding margins.

As customers demand real-time, multichannel, and mobile transactions, it has become clear that

customer-centricity requires changes in business and operating models to rebuild margins and

maintain customer loyalty. To attract everyday customers, banks need real-time processes that are

accessible via all channels (including mobile and tablet devices) to deliver relevant up-to-the-

minute analysis whenever they are needed.

Executive

Summary


Delivering the Future of

Banking Today

Market Situation

Transformation Through

Technology Innovation

Business Priorities

SAP Innovations

© 2013 SAP AG 3 / 44

Exceed today’s customer expectations.

Immediate processing

Real-time banking provides immediate responses to customer requests.

Enhanced visibility

Employees get 360-degree visibility into transactions, their customers, or risk.

Increased Agility

Banks must react quickly and flexibly to new market, product, and regulatory requirements.

Real-time processing gives banks greater transparency and agility in areas such as risk, finance,

and sales to help them respond appropriately in the moment.

Embracing “Real” Real-Time Banking

Real-time processing gives banks greater transparency and agility in areas such as

risk, finance, and sales to help them respond appropriately in the moment.

Best-Run Retail and

Commercial Banking

Executive

Summary



Banking Today

Market Situation



Business Priorities

SAP Innovations

http://www.youtube.com/watch?v=9uns_ywYh0Y&list=PL8A5633CAEF949A08&index=2

© 2013 SAP AG 4 / 44

The best-run banks meet customer and market demands by flexibly and rapidly

responding to customer needs through multiple channels and industrializing their

offerings through efficient manufacturing to support new distribution capabilities.

Best-Run Banking Priorities

Understanding the value drivers for each of these priorities is key to becoming a

best-run financial-services company.

Retail Banking Operations

Commercial Banking Operations

Risk and Compliance

Sales and Service

Multichannel

Finance

People and Talent

Procurement

IT Management

Technology Solutions

Executive

Summary



Banking Today

Market Situation



Business Priorities

SAP Innovations

© 2013 SAP AG 5 / 44

Executive

Summary



Banking Today

Market Situation



Business Priorities

SAP Innovations

For over 40 years, SAP’s innovations have helped companies transform and achieve the goals

they never thought possible – making more informed decisions and innovating to lead in new

markets. SAP enables the real-time enterprise, empowers new experiences, and unwires the

business.

Enable the Real-Time Enterprise

SAP’s integrated, real-time analytical, predictive, and in-memory database solutions improve the

business value of your information and optimize business outcomes.

Empower New Experiences

The SAP software solutions allow you to deliver simple, elegant, real-time applications rapidly

across any device, with the superior consumer-grade experience users have come to expect.

Unwire the Business

Connect with your customers, partners, and employees efficiently and securely with a market-

leading mobile platform and device management technologies from SAP.

Business Transformation Through Technology

Innovation

Revenue growth and profit are no longer sufficient benchmarks for success. In

today’s economy, companies need to stand out in crowded and highly competitive

markets. The pace of business is relentless, where today’s innovation becomes

tomorrow’s status quo. Organizations that embrace technology can transform to

gain a significant advantage rapidly over the competition.

© 2013 SAP AG 6 / 44

SAP Innovations

Banks can use innovations such as in-memory computing, big-data analytics, and

cloud-based commerce and business networks consumption to satisfy customers

while maintaining control of business risk and profitability.

Banks can use mobile technology to expand beyond their branches and reach traditional

customers at the local mall or unbanked customers in remote areas. Banks’ business customers

want immediate access to payments, reports, and execution on the go – using solutions such as

the SAP Financial Services Network, delivered via the cloud.

In-memory computing with the SAP HANA platform answers and exceeds needs for real-time

operational use of analytical data — such as liquidity risk management and multichannel analysis

for real-time offer decisions. This technology revolutionizes the way banks deal with the

performance challenges of “Big Data”. The continued drive for efficiency in corporate functions will

see cloud deployment models using low-cost and secure platforms for nonstrategic functions (such

as HR, payroll, finance, and procurement) while ensuring security and integration simplicity across

end-to-end-business processes.

Executive

Summary



Banking Today

Market Situation



Business Priorities

SAP Innovations

© 2013 SAP AG 7 / 44

Comprehensive solutions for commercial and retail banking.

Retail and Commercial Banking Value Map


SAP Solutions

Commercial Banking

Operations

Sales and Service

Risk and Compliance

Multichannel

People and Talent

Finance

IT Management

Procurement


Retail Banking

Operations

Retail Deposits

Retail Lending

Centralized Payment

Processing

Finance Finance

Transformation

Performance

Management

Finance and Risk Data

Management (IFRA)

Collaborative Finance

Operations

People and

Talent Core Human

Resources and Payroll Talent Management

Workforce Planning

and Analytics

Procurement Supplier Discovery and

Lifecycle Management

Strategic Sourcing

and Contracting

Procurement and

Order Collaboration

Collaborative Invoice

to Pay

IT Management Application Lifecycle

Management

IT Infrastructure

Management

IT Portfolio and

Project Management

IT Service

Management

IT Strategy and

Governance

Multichannel

Mobile Customer

Internet Banking

Call Center

Automated Teller

Machines

Sales and Service

Customer Acquisition

Customer Management

Social Media

Engagement

Risk and Compliance

Credit Risk Management

Liquidity Risk

Management

Governance, Compliance

and Surveillance

Enterprise Risk

Reporting

Commercial Banking

Operations

Cash and Liquidity

Management

Commercial Lending

Leasing

Financial Services

Network

Executive

Summary


Technology

Solutions

Analytics Consumer Experience Data Management Enterprise Mobility

SAP HANA Platform

Application Develop-

ment and Integration

© 2013 SAP AG 8 / 44

Putting the customer at the core of your business requires

a move away from product silos and inaccurate client

data. The best-run banks need a 360-degree view of their

customers to offer them more relevant products.


Responding to new customer demands has

traditionally meant adding more IT complexity

at an ever-increasing cost, because product

and customer systems lacked the flexibility to

satisfy these demands. Taking an

industrialized, building-block approach toward

the manufacture of new products can reduce

their time to market.

Banks can create their services, product

bundles, and offers at low cost and with

minimal additional front-end workload – thereby

eliminating workaround processes and process

breaks. This new manufacturing efficiency also

supports agile, customer-centric distribution. It

ends the trade-off between efficiency and

flexibility to increase revenue while decreasing

cost.

16% Of companies have a 360

degree view of customers

Source: SAP Performance

Benchmarking

Priorities

SAP Solutions

Executive

Summary


SAP Solutions


https://valuemanagement.sap.com/disclaimer/

© 2013 SAP AG 9 / 44

Benefits

Real-time transparency and issue resolution

Cost reduction via module preintegration

Real-time product and offer creation

Increased productivity via best practices

Multichannel relationship pricing

Proven, scalable support across all layers


Reducing operational costs while increasing agility.

Drive the lowest unit cost of production and foster agility for mass individualization,

ongoing innovation, and improved margins across the customer relationship.

Retail Deposits Manage and monitor the entire account contract lifecycle – from transactions and

agreements to statements.

Retail Lending Accelerate time to market and innovation using simple configuration. Support the full loan lifecycle with efficient workflow and knowledge management to maximize loans supported per employee.

Centralized Payment

Processing

Lower ownership cost by simplifying and centralizing payment processes across business and product lines and opening new revenue streams from value-added services.

Executive

Summary


SAP Solutions


Priorities

SAP Solutions

© 2013 SAP AG 10 / 44

The best-run commercial banks aim to be a part of their

customers’ financial supply chains, meet new regulations,

and enhance service by using scalable, low-cost

transaction engines to become more agile.

Real-Time Efficiency: Commercial Banks

The best-run commercial banks have

transformed their business and IT processes to

respond immediately to customer requests and

integrate with customer financial supply chains.

They have reduced costs through process

standardization, tailored offers to customer

needs, and swiftly responded to new demands

and regulatory changes.

Operating in real time lets you adjust flexibly to

new market requirements. You can give

customers 360-degree visibility and direct control

of their global cash positions, regardless of time

and location. Integration with their business

systems fosters end-to-end, straight-through

payment processing and reduces costs.

New cloud commerce models for corporate

connectivity can reduce the cost of on-boarding

corporate clients. It can lead to faster time to

revenue when acquiring new clients, while

lowering transaction costs and increasing

customer proximity.

39% Lower compliance and risk

management FTEs where a risk

management system supports

automated reporting and alerting

to facilitate risk management


Benchmarking

Priorities

Commercial Banking

Operations

SAP Solutions

Executive

Summary


SAP Solutions


© 2013 SAP AG 11 / 44

Benefits

Improved cash flow and liquidity

Real-time product and offer creation

Faster on-boarding of corporate clients

Lower operating and client acquisition fees

Fast reply to regulatory and market

changes

Real-Time Efficiency: Commercial Banks

Greater ability to utilize Big

Data to gain insights with a

well-established analytics and

data-modeling center of

excellence


Benchmarking

The real-time commercial bank – increasing agility while decreasing costs.

The best-run commercial banks are essential to their customers’ financial supply

chains, reducing their working capital costs through agility and cost efficiency.

Cash and Liquidity

Management Optimize the use of cash held throughout the corporate relationship.

Commercial Lending Accelerate time to market for new product offerings and innovation through simple configuration and flexibility.

Leasing Support the full leasing lifecycle for efficient transaction processing.

Financial Services

Network

Build a cloud-based, end-to-end platform for payments, and a services platform

that drives low-cost transactions and on-boarding of new corporate clients. 40%

Executive

Summary


SAP Solutions

Priorities

Commercial Banking

Operations

SAP Solutions


© 2013 SAP AG 12 / 44

Regulators are imposing new, complex regulations that

require on-demand access to highly granular risk and

finance information and drive banks to run stress tests in

real time.

Enhance Visibility: Risk and Compliance

Banks require a centralized risk and finance

platform for successful reconciliation of results.

On-demand access to huge amounts of highly

granular information related to credit, market,

operational, or liquidity risk lets banks readily

respond to internal stakeholders and

regulators, calculate risk, and define and run

stress test scenarios. 200 million Cash flow transactions

aggregated and presented in

less than 3 seconds


Benchmarking

Priorities

Risk & Compliance

SAP Solutions

Access to real-time information on liquidity cash

flows helps banks review various liquidity

scenarios, plan for future liquidity needs, and

manage performance according to risk-

adjusted metrics.

Executive

Summary


SAP Solutions


© 2013 SAP AG 13 / 44

Benefits

Reduce fraud and operational risk

Monitor, limit, and mitigate risk

Aggregate risk data in real time

Comply with Basel III and Dodd-Frank rules

Run stress-test scenarios in real time

Improve sanction testing

Enhance Visibility: Risk and Compliance

Integrated, on-demand access to enterprise risk information for enhanced

compliance.

On-demand access to risk information helps banks answer queries from regulators

and internal stakeholders and better mitigate risk.

Credit Risk

Management Calculate and mitigate credit risk.

Liquidity Risk

Management Access real-time information on liquidity risk and manage stress-testing.

Governance,

Compliance, and

Surveillance

Monitor and track operational risk, sanctions data, and fraud to comply with

industry regulations.

Enterprise Risk

Reporting Report, analyze, and visualize risk information on any device, from anywhere.

Executive

Summary

SAP Solutions SAP Innovations References

SAP Solutions

Priorities

Risk & Compliance

SAP Solutions

50-70% Potential improvement of

reporting efficiencies by

merging internal and external

finance and risk reporting


Benchmarking


© 2013 SAP AG 14 / 44

Empowered customers now demand exceptional service,

tailored offers, and more proactive advice. This includes

superior service from banks as customers seek to interact

anytime, anywhere, and on any device.

Sales and Service

Banks must be able to offer the right service, at

the right time, and at the right price to beat the

competition.

This requires a continuous focus on customers

through superior analytics and the ability to

capture and share information across the bank

that builds a single source of truth and a true

360-degree customer view. Such information

can provide the basis for real-time insight and

end-to-end transactions that meet customers’

financial needs. It can also fulfill customers

wishes to carry their offices with them, using

tablet devices.

Subsequent execution and servicing of offers

should be seamless, immediate, and highly

visible to customers. Errors should be corrected

and refinements made in real time or through

self-service channels. Consistency is required

in originations processes and the servicing of

offer lifecycles.

92% Customer satisfaction rate

achieved by best-in-class

customer service

organizations


Benchmarking

Priorities

Sales & Service

SAP Solutions

Executive

Summary


SAP Solutions


© 2013 SAP AG 15 / 44

Benefits

Improve and streamline business processes

Generate flexible products and offers

Manage offers and risk in real time

Generate value from social media

Significantly reduce cost of change

Support consumer and enterprise mobility

Sales and Service

Higher new product revenue as a

percentage of revenue where new

product ideas are captured from

all stakeholders through multiple

channels (including social media)


Benchmarking

Enabling multichannel distribution that is consistent, proactive, and agile.

The best-run banks use SAP software support for sales, service, and marketing for

context-sensitive cross-sell and up-sell offers and profitable product and service

bundles.

Customer Acquisition Anticipate customer needs and provide consistent interaction across channels

that are simple, flexible, and easy to use.

Customer

Management

Deliver a real-time, 360-degree view of customer interactions, immediate

resolution, visibility, and full support for the offer and product lifecycles – including

eligibility and pricing.

Social Media

Engagement

Analyze social media and integrate it into traditional channel services to drive

complaint resolution as well as lead generation and management.

24%

Executive

Summary


SAP Solutions

Priorities

Sales & Service

SAP Solutions


© 2013 SAP AG 16 / 44

Superior customer experience requires state-of-the-art

interfaces that are reliable, convenient, and harmonized.

Profitable banks control costs for integrating and

maintaining channels while creating innovative new

offerings.

Multichannel

Banks can achieve customer satisfaction with

convenient, simple, and harmonized

transactions.

Combining self-service channels and

interaction centers facilitates on-demand

service requests via phone or e-mail. Banks

can use call centers to make new offerings

available, set up appointments with relationship

managers, or administer a customer

satisfaction survey.

New, channel-specific services bring value to

customers and increase profitability.

By maintaining distribution channels separately,

banks can readily offer channel-specific

features. Decoupling the user interface from

business functionality helps banks adopt new

technology and create bank-specific interfaces

and branding.

A central process-orchestration platform can

simplify channel integration and reduce

integration costs. 96% Higher revenue growth where

organizations enable almost

all users with mobile CRM


Benchmarking

Priorities

Multichannel

SAP Solutions

Executive

Summary


SAP Solutions


© 2013 SAP AG 17 / 44

Benefits

Accelerated time to market

Access to new markets

New marketing channels

Propensity-based selling

Lower-cost distribution

Higher cross-sell rates

Multichannel

Higher total revenue from new

customers for the top 25% of

organizations as compared

with average organizations


Benchmarking

Delivering more value, convenience, and satisfaction through multichannel

banking.

Multichannel success requires the leveraging of back-end product platforms and

the orchestration of sales and service analytics to operationalize execution.

Mobile Customer Deliver best-in-class consumer and enterprise functionality that is easy to deploy

and accelerates time to value.

Internet Banking Build a single software platform to support all digital channels and allow

seamless handoffs from unassisted to assisted channels.

Call Center Support assisted channels to provide transparency and proactively drive

execution and cross-selling.

Automated Teller

Machines Create services and products for the next generation of kiosk ATMs. 47%

Executive

Summary


SAP Solutions

Priorities

Multichannel

SAP Solutions


© 2013 SAP AG 18 / 44

More than ever, CFOs must balance sound stewardship

with value creation to meet the needs of regulators,

shareholders, and internal stakeholders – while

streamlining financial operations, reducing costs, and

improving financial performance.

Finance

Retail and commercial banks face several

major challenges today. They must transform

their operations to meet new regulations, such

as the Dodd-Frank Act and Basel III, and

manage liquidity in a climate of sustained

volatility and tight capital. In addition, they must

outperform their financial objectives and create

sustainable value for their many stakeholders. 76% Higher margin where a

finance system allows for

historical and forward-looking

views into financial and

operational performance


Benchmarking

Priorities

Finance

SAP Solutions

To stay competitive in an increasingly crowded

market, they must also deliver superior

products and service to their customers at

reduced cost.

Executive

Summary


SAP Solutions


© 2013 SAP AG 19 / 44

Benefits

Comply with IFRS 9 and Basel III rules

Deliver superior service at reduced cost

Outperform financial objectives

Create sustainable value

Reconcile risk and finance figures

Improve regulator and consumer trust

Finance

Of company revenue that

goes to finance costs among

top-quartile performers versus

more than 1.2% for the

bottom quartile


Benchmarking

Achieving financial excellence.

Build a platform to meet the challenges of the Dodd-Frank Act and Basel III

regulations and provide reconciled accounts and real-time financial and risk insight.

Finance

Transformation Transform finance to provide external and internal stakeholders with the IFRS 9

financial information they need in the right format, at the right time, and at a low cost.

Performance

Management

Consolidate figures, plans, and budget resources, and meet financial metrics that

improve profitability and performance.

Finance and Risk Data

Management (IFRA)

Create a single platform to meet the integrated requirements of IFRS 9 and

Basel III bank regulations.

Collaborative Finance

Operations

Automate transactional processes for increased efficiency, effectiveness,

collaboration, and service with lower cost. 0.4%

Executive

Summary


SAP Solutions

Priorities

Finance

SAP Solutions


© 2013 SAP AG 20 / 44

People and talent are key competitive advantages in

today’s fast-changing business environment. Best-run

banks achieve profitable growth by leveraging their talent

and out-innovating the competition.

People and Talent

For organizational growth and an agile

response to business change, banks must give

people the knowledge and technology to

facilitate innovation. They must also move into

new markets, adapting to local practices and

tapping the right local talent. In addition, they

must identify and retain new talent acquired

through mergers and acquisitions. 32% Less employee turnover by

using analysis of workforce

data to design, implement,

and monitor workforce

optimization strategies


Benchmarking

Priorities

People & Talent

SAP Solutions

Organizations that quickly respond with the

right talent in the right places will have a unique

advantage in the marketplace.

Executive

Summary


SAP Solutions


© 2013 SAP AG 21 / 44

Benefits

Reduced employee turnover

Improved employee engagement

Alignment of HR and business strategies

Higher revenue per full-time equivalent

Reduced HR cost per employee

Real-time insight into business needs

People and Talent

More employees supported

per full-time HR employee

with automated reporting


Benchmarking

The new world of work.

Enable growth and sustainability by coupling global capabilities, integration, and

real-time insight with choice in the way HR processes and services are delivered.

Core Human

Resources and Payroll Consolidate HR and payroll processes on a common global platform to enhance

workforce data and legal compliance.

Talent Management Identify and analyze talent gaps and streamline workforce planning for efficient

and effective management of workforce demand and supply.

Workforce Planning

and Analytics

Harness the power of Big Data to predict and plan more accurately for

employee demands.

24%

Executive

Summary


SAP Solutions

Priorities

People & Talent

SAP Solutions


© 2013 SAP AG 22 / 44

While companies often focus on revenue, procurement

savings can increase profits about five times more than

revenue. The key to maximizing these benefits is

delivering consistent quality, savings, and compliance

over time.

Procurement Excellence

Procurement leaders set a baseline for success

by implementing best practices, excelling in

category expertise, and working with key

stakeholders on cost control programs.

While savings is always a priority, new

objectives have emerged as well. Procurement

must manage supplier risk and performance,

improve process efficiency, drive innovation,

and ensure sustainability practices.

You need solutions that offer the tools to cut costs

and add value while supporting processes such

as spend analysis, sourcing, contract

management, operational procurement, supplier

information management, and risk and

performance management. Such solutions are

available both on premise and in the cloud.

Robust procurement tools, when coupled with an

unparalleled collaborative business network,

drive real-time insight and efficiency.

60% Improvement in annual

average savings resulting

from leveraging technology

for sourcing and procurement

processes


Benchmarking

Priorities

Procurement

SAP Solutions

Executive

Summary


SAP Solutions


© 2013 SAP AG 23 / 44

Benefits

Optimize spend under management

Increase average annual savings

Decrease FTE per billion in spend

Drive innovation with suppliers

Reduce cost and risk with faster turnaround

Procurement Excellence

Lower (FTE) per billion in

spending for companies

conducting electronic supplier

collaboration on a network


Benchmarking

Drive sustainable savings while supporting innovation.

Ensure best practices in the source-to-pay process, on premise, or in the cloud,

while leveraging the power of network collaboration for efficiency and insights.

Supplier Discovery

and Lifecycle

Management

Find new suppliers through cloud-based groups such as the Ariba network and

manage these relationships more effectively.

Strategic Sourcing

and Contracting

Identify and act on sourcing opportunities and create favorable, low-risk supply

contracts.

Procurement and

Order Collaboration

Realize savings with compliant, user-friendly self-service procurement and make

transactions more efficient by collaborating on the Ariba network.

Collaborative Invoice

to Pay

Drive invoice automation and exception management with available dynamic

discounting on the Ariba network. 55%

Executive

Summary


SAP Solutions

Priorities

Procurement

SAP Solutions


© 2013 SAP AG 24 / 44

Business enterprises should forge a strategic business

partnership with their IT organizations by aligning goals.

Business-oriented IT management is all about maximizing

efficiency and responsiveness by running IT like a

business.

IT Management: Run IT Like a Business

A recent study conducted by Gartner shows that

lines of business want to ascertain the value of

their IT investments. IT organizations no longer

decide alone which IT projects to fund.

The challenge is that IT management is often

seen as just running the technical landscape. To

become more relevant to an enterprise, IT needs

to reposition itself to run like a business.

SAP offers an integrated portfolio of solutions to

do just that. New technologies like mobile, in-

memory, and cloud computing generate value to

a business in an unprecedented way.

However, these new technologies also make IT

landscapes more complex, requiring more tools

to manage them. By leveraging SAP solutions

to follow best practices, CIOs, CEOs, other

executives, management, and employees can

tap into and help ensure efficiency, continuity,

and responsiveness – making IT more strategic

to the business.

36% Higher operating margin

where organizations use IT

to enable strategic and

competitive advantages


Benchmarking

Priorities

IT Management

SAP Solutions

Executive

Summary


SAP Solutions


© 2013 SAP AG 25 / 44

Benefits

Better alignment of IT to business strategy

Shorter IT delivery and business cycles

Lower ratio of IT budget: profits/IT upkeep

Reduced system upgrade and operation costs

Lower cost of risk mitigation/revenue loss

Lower downtime of critical business systems

IT Management: Run IT Like a Business

More projects delivered on

or below budget by top IT

management performers


Benchmarking

Evaluate and control risk, help ensure flexibility and scale, control and optimize

costs, and maximize strategic value.

Ensure business continuity, drive efficiency, increase IT responsiveness to business

objectives – with IT management solutions designed for businesses of any size.

Application Lifecycle

Management Use application lifecycle management best practices, methods, and services

based on IT infrastructure library (ITIL).

IT Infrastructure

Management

Monitor all network assets to drive integrated infrastructure and application

lifecycle.

IT Portfolio and Project

Management Align the portfolio and manage projects to drive innovation efficiently.

IT Service

Management

Align service-desk operations with service-level agreements (SLAs), quickly

resolve SLA incidents, and adopt ITIL best practices as business goals change.

IT Strategy and

Governance

Track IT costs and risks and map risks and compliance activities to business

impact.

1.9x

Executive

Summary


SAP Solutions

Priorities

IT Management

SAP Solutions


© 2013 SAP AG 26 / 44

Businesses drive transformation through technology

innovation. Real-time enterprises improve information

value, innovate developer and user experiences, and

unwire the business to engage effectively with customers,

partners, and employees.


Technology solutions can make the difference

between surviving and thriving. As users

become savvier, their needs escalate.

Increasingly, users expect real-time insights,

predictive analysis, and real-time access to

applications from the latest mobile devices.

They expect seamless integration of these

functionalities with their favorite social

platforms.

At the same time, data volumes are exploding

while the window to optimize opportunities is

shrinking. Users need access to information

available in an entirely new class of real-time

applications. Developers need a platform for

innovating more rapidly than ever before.

Banks today need to empower their workforce

with consumer-grade business applications to

increase productivity and competitiveness.

Banks have an unprecedented opportunity to

deliver new levels of customer engagement

through innovative consumer-style applications.

Priorities


SAP Solutions

Executive

Summary


SAP Solutions

“Cloud, social networking,

mobility and the strategic use

of information are the four

forces that combine to create

a new era of computing and

new opportunities for

business.”

Source: Gartner, “SAP Is Driving

Analytics, Cloud and Mobility in the

nexus of Forces,” Donald Feinberg,

August 24, 2012

4

© 2013 SAP AG 27 / 44

Benefits

Quickly build secure mobile applications

Monetize data held in back-end systems

Address market threats and new regulations

Increase employee engagement

Unwire the business to improve engagement

Reduce time to value and speed up innovation


Innovations shaping the future of banking.

Free up resources for running the bank, enhance competitiveness, and appeal to a

new generation of customers with real-time banking via their preferred channels.

Analytics Leverage data with real-time analytics, business intelligence, predictive analysis,

and performance and risk management.

Data Management Get good information to your enterprise and manage data with scalability, trust,

and unmatched performance.

Application Develop-

ment and Integration

Develop applications and innovation rapidly in a mobile, always-on world of

collaborative business networks for secure, cloud-scale applications.

Enterprise Mobility Unwire employees, customers, and partners with highly-rated mobile solutions.

Consumer Experience Use real-time, consumer-grade software to increase productivity and

competitiveness.

SAP HANA Platform Streamline applications, analytics, planning, and predictive and sentiment

analyses.

Executive

Summary


SAP Solutions

Priorities


SAP Solutions

“Through 2015, organizations

integrating high-value,

diverse, new information

types and sources into a

coherent information

management infrastructure

will outperform their industry

peers financially by more than

20%.”

Source: Gartner, “Hype Cycle for

Information Infrastructure, 2012”

July 31, 2012, Michael Blechar

20%

© 2013 SAP AG 28 / 44

As bank customers increasingly use mobile channels for their transactions, banks must assure a

unified and secure customer experience across distribution channels. To serve customers more

effectively and present the next best offer, they must improve visibility into customer holdings and

transactions. To control risk exposure and meet regulatory requirements, banks need on-demand

access to risk data.

Bank employees must be empowered with analytics in visual dashboards and reports that are

simple to use. They need granular, real-time and predictive updates on risk, finance, operations,

and branch information. To provide services at a lower cost that can scale and adapt quickly,

banks need innovations such as cloud technology to complement their traditional business

systems.

For the last 40 years, SAP has led innovation in banking. A new generation of technology helps

banks better understand and serve the needs of their customers and ensure that employees have

access to the information they need to run their business more effectively.

Bank customers want a unified experience across

distribution channels plus real-time information on their

transactions and balances. They expect banks to have a

complete view of their holdings and risk exposure and to

use innovative technology for competitive services and

protection from fraud.

SAP Innovations

Applications

SAP Innovations

SAP HANA

Mobile

Analytics

Cloud

Executive

Summary


© 2013 SAP AG 29 / 44

Finance

SAP Business Suite on SAP HANA offers a real-time financial close on detailed data. Legal entity and

group are stored in the same repository, thus eliminating time-consuming reconciliation of

intercompany transactions.

SAP Business Suite on SAP HANA provides a revolutionary approach to payables management,

optimizing working capital and reducing days payables outstanding.

Risk and Compliance

Access risk management automates compliance activities and achieves real-time visibility of access

risk to reduce risk and adverse compliance events and improve operational efficiency.

Process risk management controls monitoring across policies and regulatory requirements using an

automated rules framework that enables quick deployment.

Sales and Service

By exploring the power of new analytical and data mining capabilities such as predictive analytics

banks can gain deep insights into their data that cannot be seen easily. Identify clusters of markets,

and leverage these insights to optimize targeting. With a 360-degree customer view, banks can grow

the business by offering products customers need and convert loyalty into revenue.

SAP HANA enables banks to access to customer, risk,

finance, and operations data and identify customers and

products, analyze risk, and optimize financial accounting.

The best-run banks can thus manage Big Data for

significant competitive advantage.

SAP Business Suite Powered by SAP HANA

Executive

Summary


Applications

SAP Innovations

SAP HANA

Mobile

Analytics

Cloud

© 2013 SAP AG 30 / 44

Real-Time Efficiency

Reduce risk and increase customer service through real-time analytics on the most granular

transactions and risk exposures.

Exceeding Customer Expectations

Integrate structured and unstructured data from multiple sources inside and outside the company

to meet and exceed customer expectations.

Enhanced Visibility: Risk and Compliance

Enhance visibility with a real-time holistic view of risk and finance that helps you meet new

regulatory challenges, protect customers from fraud, improve market segmentation, and offer new

services.

On-demand access to customer, risk, finance, and

operations data helps banks identify customers and

products, analyze risk, optimize performance, and limit

fraud. With SAP HANA and SAP Sybase IQ server, the

best-run banks can manage Big Data for significant

competitive advantage.

SAP HANA

100 Terabytes of data can be

stored in memory by

SAP HANA


Benchmarking

Executive

Summary


Applications

SAP Innovations

SAP HANA

Mobile

Analytics

Cloud


© 2013 SAP AG 31 / 44


Give customers a secure and complete offering for on-demand, self-service access to payments,

purchases, and other remittance transactions.


Offer convenient, low-cost channels to customers that allow transactions anytime and anywhere.

Enhanced Visibility: Risk and Finance

Gain insight into and act on risk exposures and respond immediately to regulator queries while on

the go.

Providing a complete and secure way to meet the

requirements of mobile commerce by introducing a

standard and convenient channel for communication and

transactions that supports mobile commerce from

anywhere at anytime.

Mobile

Executive

Summary


Applications

SAP Innovations

SAP HANA

Mobile

Analytics

Cloud

40% Higher employee productivity

where mobile access is

provided to employees across

all levels


Benchmarking


© 2013 SAP AG 32 / 44


Gain granular access to transaction-level information, as it happens, to identify new products more

quickly, segment customers, and make up-sell offers.


Empower thousands of employees with self-service access to information that helps them make

better business decisions in managing risk and finance, and serving customers across business

channels more effectively.

Enhanced Visibility: Risk and Finance

Reduce risk and fraud losses by predicting and protecting the bank from fraudulent transactions,

bad debts, and risk exposures and provide front-line employees with the customer insight they

need to offer better service.

Providing intelligent visibility into key performance

indicators across business, risk, finance, and customer

operations, as well as predictive analytics for fraud

reduction and customer insight.

Analytics

Executive

Summary


Applications

SAP Innovations

SAP HANA

Mobile

Analytics

Cloud

20% Higher revenue per employee

in organizations that are using

information to identify strategic

and competitive advantage


Benchmarking


© 2013 SAP AG 33 / 44

Financial Services Network

Host on-demand services to facilitate multibank routing, multiformat payments, client on-boarding, and

core transaction management between banks, corporations, and treasury-service providers.

Talent Management

Use cloud services for recruiting, performance management, compensation management, talent

assessment, and performance review.

Smart Procurement and Commerce

Combine industry-leading, cloud-based technology with one of the world’s largest Web-based trading

communities.

Connect to your trading partners anywhere, at anytime – from any application or device – to buy, sell,

and manage their cash more efficiently and effectively than ever.

Enable rapid time to value and maximize savings by automating and streamlining the strategic source-

to-contract process.

The speed and flexibility offered by cloud computing is

creating new opportunities for best-run banks. SAP cloud

applications and the SAP HANA platform help banks

build differentiating solutions, establish nimble global

business networks, and connect faster and more directly

with customers.

Cloud

Executive

Summary


Applications

SAP Innovations

SAP HANA

Mobile

Analytics

Cloud

66% Of companies expect greater

flexibility and agility to be a

source of business advantage

from cloud computing


Benchmarking


© 2013 SAP AG 34 / 44

All the top 50 retail banks run SAP.

Best-Run Customers

ING Real Estate

Best-Run Customers

National Australia Bank

Standard Bank

Nedbank

UniCred Centro Brasiliera

Why SAP?

Executive

Summary


© 2013 SAP AG 35 / 44

SAP co-innovates through the Banking Industry Architecture Network (BIAN) to

build a flexible IT architecture vision with six tier one institutions and in the financial

supply chain area to create SAP Financial Services Network with seven tier-one

institutions.

Customer Co-Innovation

SAP and seven leading banks collaborate on developing SAP Financial

Services Network – a cloud-based platform that simplifies transactions

between corporations and their financial institutions.

Executive

Summary


ING Real Estate

Best-Run Customers


Standard Bank

Nedbank


Why SAP?

© 2013 SAP AG 36 / 44

“To exceed client expectations, ING Real Estate Finance needs to excel

in execution. Implementing globally consistent, end-to-end processes

supported by an up-to-date SAP platform is of strategic importance.”

Guus Schnitzler, COO, ING Real Estate Finance

ING Real Estate Finance is the commercial real estate lending

subsidiary of the ING Group.

Responding rapidly to evolving client needs while minimizing risk is

essential in real estate markets. With strong executive sponsorship and

engagement from internal process experts, ING Real Estate Finance

achieved globally consistent processes. ING now has much greater

real-time insight and control – key advantages in today’s volatile climate.

Key Benefits

Ability to serve all clients and administer all products in 1 integrated

system for loans, collaterals, finance, and reporting

Real-time insight in portfolio to better control and steer the business

Clear end-to-end-process and control framework adopted across all

countries

99% Of loans with complete collateral information

0% Of loans managed in Microsoft Excel

80% Reduction in time to market for new products

Executive

Summary


ING Real Estate

Best-Run Customers


Standard Bank

Nedbank


Why SAP?

© 2013 SAP AG 37 / 44

“Our sales funnels are stronger as result of this activity and lending has

improved. Bankers are more focused on clients with opportunities that

are true and correct

Mary Scoutas, Regional Executive National Bank

National Australia Bank (NAB) is an international financial

services organization that provides a comprehensive range of

financial products and services to over 10 million customers.

NAB’s sales performance information was being received from multiple

reporting sources, residing in multiple databases and governed by

inconsistent business rules. Bankers increasingly need a

360-degree view of sales performance at a local level to support local

decision making.

SAP provided a corporate bankers dashboard’ for sales reporting,

analysis, and number and type of cross-sell leads.

Key Benefits

Consistent view of sales performance by individual branch or region

One view of the truth for accurate sales targets, results, and forecasts

Take-up and usage strong with 90% using monthly and 50% weekly

50% Use dashboard weekly

Cross-sell rate improved

Improved forecast accuracy

Executive

Summary


ING Real Estate

Best-Run Customers


Standard Bank

Nedbank


Why SAP?

© 2013 SAP AG 38 / 44

“For the first time, we delivered our three-year plan targets well ahead of

the executive session, without our central team having to work overtime

to ensure data quality.”

Luigi Bianco, Group Finance General Manager, Nedbank Group

How does a banking giant take its organization to the next

level when relying on stand-alone spreadsheets and manual

processes for business planning?

Nedbank needed to streamline and harmonize the planning process,

implement strategic planning and a rolling three-year plan, improve

the accuracy of information and reports, and provide company-wide,

simultaneous access to planning models.

Nedbank implemented a standard, company-wide approach to

strategic planning.

Key Benefits

Spend more time on analysis and less on transactional work

Eliminate manual intervention while significantly improving

data accuracy

Deploy staff to more value-added activities

30- 40% Improvement in data accuracy

15 Minutes to create report rather than 24hours

100% Reduction in overtime

Executive

Summary


ING Real Estate

Best-Run Customers


Standard Bank

Nedbank


Why SAP?

© 2013 SAP AG 39 / 44

“Sybase Unwired Platform helps us integrate mobile banking apps with our existing SAP software.It provides a stable, scalable solution that will help us grow our core banking business.”

Willie Stegmann, Core Banking Transformation Executive,

Standard Bank Group Ltd.

Standard Bank Group Ltd. is the largest bank in South Africa;

the company holds a 25% market share.

With a goal of becoming the leading personal and business bank in

South Africa by 2015, Standard Bank engaged in a business

transformation initiative. One project in the initiative was to develop

an inclusive banking program that would provide low-income and poor

consumers with access to formal financial services at Standard Bank.

Meeting this mission required a highly automated IT solution that could

operate at a low cost.

Key Benefits

Opened banking to 10 million prospective customers

Trimmed account origination process from 27 minutes to 10 minutes

Removed paper from the process

Decreased cost of acquiring customers

10 Minutes time needed to open a mobile account, down 64%

7,000 New mobile accounts opened daily

100,000 New loans opened monthly in loans centers

Executive

Summary


ING Real Estate

Best-Run Customers


Standard Bank

Nedbank


Why SAP?

© 2013 SAP AG 40 / 44

“The SAP for Banking solutions enable more transparent processes within

the union and toward members. They support higher productivity with a level

of excellence equivalent to that of other financial services institutions.”

Dr. Clidenor Gomes Filho, President, Unicred Centro Brasileira

With over 17 years in the Brazilian market and more than

8,000 members, Unicred Centro Brasileira is a credit union

serving healthcare professionals.

Unicred Centro Brasileira realized that new investments in technology

were needed to face an increasingly competitive environment. The

investments were necessary not only to optimize processes but also to

reduce IT maintenance costs, take advantage of new opportunities, and

meet its members’ expectations.

Key Benefits

Real-time operation qualification

Better alignment among attendance units, Abraccinti cooperatives,

members, and suppliers

Unified database with information on physical and juridical persons,

organizations, and groups

More free time for networking activities related to the core business

215% More members

510% Credit portfolio growth

424% Growth of assets

Executive

Summary


ING Real Estate

Best-Run Customers


Standard Bank

Nedbank


Why SAP?

© 2013 SAP AG 41 / 44

SAP solutions for the banking industry help customer-centric institutions drive the

sales and service of innovative products and cut costs while staying compliant with

regulators and transparent to stakeholders.

Wide portfolio of solutions

SAP offers the most comprehensive portfolio of solutions for the banking industry, helping

institutions improve their key business processes, comply with regulations, and become more

customer-centric.

Leveraging breakthrough innovations

SAP solutions are based on the industry’s most innovative technologies including the SAP HANA

platform, mobile solutions, analytics, and cloud solutions that support business-process

optimization at low cost.

40 years of delivering value to banks

The world’s leading banks rely on SAP software to support their core business and enterprise.

Why SAP?

Executive

Summary


ING Real Estate

Best-Run Customers


Standard Bank

Nedbank


Why SAP?

© 2013 SAP AG 42 / 44

The best-run bank organizations rely on SAP.

Why SAP?

More than 3,700 banking customers in 120 countries.

More than 2,600 bank customers use SAP Business Analytics.

More than 1,300 bank customers use SAP Business Suite.

More than 150 integrated finance and risk management banks.

More than 180 core banking customers.

More than 85 million live bank accounts (>75 million in implementation).

More than 70 bank customers for sales, service, and marketing.

More than 1,000 bank customers for database.

More than 200 mobile and internet banking customers.

Executive

Summary


ING Real Estate

Best-Run Customers


Standard Bank

Nedbank


Why SAP?

© 2013 SAP AG 43 / 44

Benchmark Your Performance

Position your organization for dominance in this new economy with the business performance

benchmarking program from SAP – available free to SAP customers and select prospects. SAP's

benchmarking program has helped more than 3,000 organizations assess their strengths, uncover

areas for improvement, and identify best practices and IT strategies that generate clear, tangible

value – not someday, but today.

Go Live in Weeks

Here’s the fastest way to run your business better: Our rapid-deployment solutions. In one

package, you get everything you need to be up and running quickly – including preconfigured

software and implementation services – in just weeks. With a defined scope and predictable costs,

there are no surprises.

Join Your Community of Practices

Every day, SAP Community Network (SCN) changes the way that thousands of SAP users work. It

lets members help one another solve problems, learn, and invent new ways to get things done –

faster. Find out how to connect with people, content and resources.

Find Out More About How Your Organization Can

Become Best-Run

Visit valuemanagement.sap.com >>

Visit sap.com/solutions/rds >>

Visit scn.sap.com >>

Executive

Summary


https://websmp105.sap-ag.de/solutionpackages

https://valuemanagement.sap.com/

http://www1.sap.com/solutions/rds

http://www.sdn.sap.com/irj/scn

Industry Executive Overview

SAP for Retail and Commercial Banking

To find out more, visit us online at sap.com/banking

Also visit us on our community pages:

www.facebook.com/sapbanking

http://scn.sap.com/community/banking

blogs.sap.com/banking/.

© 2013 SAP AG

CMP 23245 (12/12)

Executive

Summary


http://www.sap.com/banking

http://www.facebook.com/sapbanking



http://blogs.sap.com/banking/

© 2013 SAP AG. All rights reserved.

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