Download - Loans-Management
Loans Management with SAP
Joerg Oser
Business Solution ArchitectGlobal Banking Line of Business
Bensheim, 16th January 2008
Customer Base
Functional Overview
Introduction Loans Management
AGENDA
Conclusion
Agenda
© SAP 2007 / Page 3
Customer Base
Introduction Loans Management
Functional Overview
SAP Loans Management
Conclusion
SAP Loans Software History - Customers
2000 - 20021991/2 1995 1997 2005
LoansManagement
C ore Banking
M ortgage
L oansTR easury
LO ans
IS – IS
Darwin
700 Customer
s
New:Consumer-
Loans
2007
L O A N S - Management
SAP® for Banking
© SAP 2007 / Slide 5
SAP Analytical Banking
SAP ERPSAP Transactional Banking
Loans
Deposits
Co
llat
eral
s
Leasing
Pay
men
ts
Customer Information
Syn
dic
ati
on
s
Customer Relationship Management
Master Contract Management
Financials
Human Resources
Procurement
Corporate Services
Regulatory ReportingRisk Profitability Accounting
Produce banking products and manage customer interactions
Run the organization
Understand analyze and decide
SAP® for Banking
SAP Analytical Banking
SAP ERPSAP Transactional Banking
Loans
Deposits
Leasing
Pay
men
ts
Syn
dic
ati
on
s
Customer Relationship Management
Master Contract Management
Financials
Human Resources
Procurement
Corporate Services
Regulatory ReportingRisk Profitability Accounting
© SAP 2007 / Page 6
Co
llate
rals
Customer Information
Common Product Enablers
© SAP 2007 / Slide 8
Common real-time solution for retail, commercial and corporate banking
Multi-currency and cross-currency
Multi-language user interfaces and correspondence languages
Multi-channel with equal access to processes and data
Multi-bank, multi-entity, multi-business unit, multi-label
Multi-country, cross-border
Multi-time zone with specific scheduling of cut-off time
Real-time 24x365 access and High Availability architecture
Scalable solution for both small and large banks (ratio volume : sizing)
Process definition through parameterization
SAP Transactional Banking
Loans
Deposits
Col
late
rals
Leasing
Pay
men
ts
Customer Information
Syn
dica
tions
Customer Relationship Management
Master Contract Management
100+ banks 60+ insurance companies 700+ customers
Banks in different areas: retail, wholesale, universal banks, real estate banks, credit factories, specialised banks
Renowned banks all over theworld (in Americas, across
Europe, Africa, Asia)
SAP Financing Customers - examples
SAP Loans Customers 2007
280330
400434 459 479 504
538 558589
623
0
100
200
300
400
500
600
700
Dec 0
0
Mär
z01
Juni-
01
Sep 0
1
Dezem
ber-0
1
Mär
z-02
Juni-
02
Sep
02
Dezem
ber-0
2
Mär
z-03
Juni-
03
Sep 0
3
Dezem
ber-0
3
Dez
04
Dez
05
2007: over 700
Integration SAP Loans Management
Loans Management
Collaterals ManagementGuarantees
CMS
Financial Accounting Legal ReportingAnalytics
SAP – Business PartnerCIM
Fro
nte
nd
/ G
ui
DataWarehous
e
Corres-pondence
Securisation
ABSAsset
Backed Securitie
s
Agenda
© SAP 2007 / Page 12
Customer Base
Functional Overview
Introduction Loans Management
SAP Loans Management
Conclusion
SAP® Loans Management - Products
SAP Loans Management is a functionally comprehensive module for the mapping of different kind of loans (secured and unsecured) such as
Personal Loans (e.g. installment loans)
Corporate Loans including senior loans, junior loans, mezzanine loans.
Mortgage Loans such as fixed and variable rate, equity release
Special Loans (policy loans, employee loans etc.)
Business Process: Product Setup
Definition of loan products:
Definition of loan products:
Product
Conditions
Comprehensive product specific parameters
Flexible condition concept
Product Configurator
One Solution for Customers with Different Business
Real Estate
Consumer Loans
Universal Bank
Credit Factory
Corporate Financing
Specialised
Project Financing
© SAP 2007 / Page 16
Business Process: Product Setup
Business PartnerContract creationConditionsCollateral /Objects
DisbursementIntegration Financial Accounting and
Cash MgmtCorrespondence
Payment transactionsIncoming payment post-processingTransfer postingsReversalDunning / Interest on arrearsAccruals/deferrals
Rollover Borrower changePayoff/ unscheduled repayment WaiverParallel valuationsArchivingReports
Customer Request
Contract Conclusion
Contract Disbursement
Accounting
Contract Processing
Contract Default
Contract Closing
Contract Analysis
© SAP 2007 / Page 18
Portfolio
Collection
Execution
New Business
Business Process: Product Setup
Business PartnerContract creationConditionsCollateral /Objects
Customer Request
Contract Conclusion
Contract Disbursement
Accounting
Contract Processing
Contract Default
Contract Closing
Contract Analysis
New Business
© SAP 2007 / Page 19
SAP Customer Information File as Central Anchor
Proven solution with more than 100 banking customers
Comprehensive and Centralized
Customer Data
Distribution to and from Other Systems
Enhancement of Data and Screen
Design
Central Address Management
Management of Relationships
Role Concept
© SAP 2007 / Page 21
Partner Hierarchy
Nordic TradingBP: 50292
Loan: 10001656
Trondheim TechnologyBP: 133
Loan: 10001708
Bergen ShippingBP: 132
Loan: 10001702
Trondheim SecuritiesBP: 50313
Loan: 10001710
Trondheim Computer ChipsBP: 50312
Loan: 10001709
Oslo ElectronicBP: 131
Loan: 10001701
Business Partner: Relation Ships
Business Partner: Total Commitment
Total Commitment
SAP
SAP
non SAP
SAP
SAP
SAP
View of all the business with the customer
Possibility to take into regard customer entitities (holding etc)
Configurable layout
Loans-ContractSAP-Loans
Business Partner
Correspon-dence
Product
CollateralsGuarantees
Basic Data
Contract: Master Data - overview
Conditions
Percentage of defined base amounts
Fixed amounts
Proportionally per disbursement
Total amount with first or final partial disbursement
Commitment interest / charges Discount / premium calculation
Repayment forms
Installment repayment
Annuity repayment
Maturity repayment
Fixed Interest
Variable Interest
Formula-based interest
Interest calculation
Conditions and Structuring - Overview
© SAP 2007 / Page 29
Fixed Interest Periodfrom 10.01.YY
09.30.YY
Fixed Interest Periodfrom 10.01.YY
09.30.YY
Charges from10.01.YY 50 €
Repaymentfrom 10.01.YY1150 €
. . . Condition header
Condition items
Interestfrom 10.01.YY5.5%
Loanbasic data
Condition header
Cash flow
Conditionitems
-----------------------------
Master dataLoan contract
Interestfrom 10.01.YY 5%
Calculate effective interest
Calculate payment
plan
Condition Concept
Planned records
© SAP 2007 / Page 30
Cash Flow
© SAP 2007 / Page 31
New Business: Highlights
© SAP 2007 / Page 32
Comprehensive master data
Powerful condition features
Integrated functions for
Customer Management
Collateral Management
Account Origination
SAP® for Banking
SAP Analytical Banking
SAP ERPSAP Transactional Banking
Loans
Deposits
Co
llat
eral
s
Leasing
Pay
men
ts
Customer Information
Syn
dic
ati
on
s
Customer Relationship Management
Master Contract Management
Financials
Human Resources
Procurement
Corporate Services
Regulatory ReportingRisk Profitability Accounting
© SAP 2007 / Page 33
Collateral Management System
ReportingCentral
document management
Statutory reporting / risk mgmt
Communi-cation system
Customer Information
Real estate
Movable property(incl. ship, car)
Security Account
…
Collateral object management
Collateral management
Asset value
Collateral agreement
Receivables
Transaction management
Loans
Other financing
Current accounts
Trading transactions
Guarantees
Inventory
Object Bundle
Other
…
Rights (incl. patents,
insurance)
© SAP 2007 / Page 34
Some SAP Collateral Management Customers
Example Reporting: Customer – Collateral Overview
Branch to transaction
Collateral given
Secured transactions
Details
“At a glance”: free collateral, collateral shortfalls etc
Business Process: Product Setup
Business PartnerContract creationConditionsCollateral /Objects
DisbursementIntegration Financial Accounting and
Cash MgmtCorrespondence
Customer Request
Contract Conclusion
Contract Disbursement
Accounting
Contract Processing
Contract Default
Contract Closing
Contract Analysis
Execution
New Business
© SAP 2007 / Page 37
Payment Processing
Outgoing Payments Partial disbursements possible Deductions Gross – net Future preposting capability Automatic generation of outgoing payments
To borrower
To third party, such as property developer
Flexibly definable payment details
© SAP 2007 / Page 38
Integration LOANS with SAP FI – Financial Accounting
Loan Contract: Cash-flow01.05.JJ 150.000,00 Loan Disbursement 0001 0001
30.06.JJ 1.720,83 Interest debit position 0110 0110
30.06.JJ 639,05 Amortisation 01250125
FI-Schnittstelle
Financial Accounting
Amortisation-Receivable
Interest-Receivable
Other Incomes
Depreciation Deferments
Realtime Postingof flows
FI-Interface
automatically
© SAP 2007 / Page 40
Mass run
Correspondence
Standardized Correspondence
Single run
Individual Correspondence
Correspondence
Example Partner Solution for Output ManagementSTREAMSERVE: SAP Certifications since 1998
Raw Data Interface (BC-RDI)
SAP Smart Forms (BC-XSF)
IDOC ALE Converter (CA-ALE)
Assured device delivery (XOM)
BAPI Integration
Powered by SAP® NetWeaver
SAP-endorsed business solution
A long time SAP® Software Partner, StreamServe has attained multiple SAP® certifications, which ensure seamless connectivity with SAP® business solutions.
Leveraging Financial Statements To Increase Loyalty
Summary and Detail information for Checking, Savings, Investments, Loan/Mortgage, Insurance, etc.
Dynamic, personal message content
from nearest branch manager specific to customer’s account
Dynamic, segmentedUp-Selling messages
SegmentedCross-Selling
messages
Dynamic lease and loans branding
”prior to using StreamServe for communications on customer correspondence we had a 25% customer turnover rate; today it is estimated to be less than 5%.“
Mortgage Statement Embedded Offers
Cross-Sell and Up-sell Messaging
Execution: Highlights
© SAP 2007 / Page 51
Fully integrated accounting
Rich disbursement features including payments to several parties, partial payments
Plausibility checks
Flexibly definable correspondence or usage of external correspondence tool
Business Process: Product Setup
Business PartnerContract creationConditionsCollateral /Objects
DisbursementIntegration Financial Accounting and
Cash MgmtCorrespondence
Payment transactionsIncoming payment post-processingTransfer postingsReversalDunning / Interest on arrearsAccruals/deferrals
Customer Request
Contract Conclusion
Contract Disbursement
Accounting
Contract Processing
Contract Default
Contract Closing
Contract Analysis
© SAP 2007 / Page 52
Collection
Execution
New Business
Payment Processing
Incoming payments Several payment media such as direct debit or bank transfer
Creation of over- and underpayments
Post processing features
Flexibly definable payment details
Outgoing Payments Partial disbursements possible Deductions Gross – net Future preposting capability Automatic generation of outgoing payments
To borrower
To third party, such as property developer
© SAP 2007 / Page 53
Incoming payment
No Incoming payment
For example, auto debit,bank transfer, etc.
Contract Receivables
1,500
Contract Receivables
1,5001,500
Contract Receivables
1,500
Contract Receivables
1,50015
Payments Due
Clearing ofReceivable
Due Payments
Dunning/Interest on Arrears
DunningLetter
Dunning/Arrears List
© SAP 2007 / Page 54
Incoming Payment Processing and Dunning
SAP Loans Back Office: Highlights
© SAP 2007 / Page 55
Rich functional support of rule defined payment allocation
Fully fledged post processing of incoming payments
Support of follow-up activities including dunning
Business Process: Product Setup
Business PartnerContract creationConditionsCollateral /Objects
DisbursementIntegration Financial Accounting and
Cash MgmtCorrespondence
Payment transactionsIncoming payment post-processingTransfer postingsReversalDunning / Interest on arrearsAccruals/deferrals
Rollover Borrower changePayoff/ unscheduled repayment WaiverParallel valuationsArchivingReports
Customer Request
Contract Conclusion
Contract Disbursement
Accounting
Contract Processing
Contract Default
Contract Closing
Contract Analysis
© SAP 2007 / Page 56
Portfolio
Collection
Execution
New Business
Loan Business Activities
Examples: Payoff / unscheduled repayment
(full and partial payoffs) Charges Single postings Borrower change Capital transfer Deferrals, waivers
Application: Structured, user-friendly entry of business
activities Status management of business operations Reversal function Release function
© SAP 2007 / Page 57
Business Process: Product Setup
Business PartnerContract creationConditionsCollateral /Objects
DisbursementIntegration Financial Accounting and
Cash MgmtCorrespondence
Payment transactionsIncoming payment post-processingTransfer postingsReversalDunning / Interest on arrearsAccruals/deferrals
Rollover Borrower changePayoff/ unscheduled repayment WaiverParallel valuationsArchivingReports
Customer Request
Contract Conclusion
Contract Disbursement
Accounting
Contract Processing
Contract Default
Contract Closing
Contract Analysis
Portfolio
Collection
Execution
New Business
© SAP 2007 / Page 59
Release
Release
Release
Use
r Aut
horiz
atio
ns
Release Procedure in SAP Loans
Release control:
Release can be set up using the control parameters company code, product type, contract status, threshold value and currency
Double, treble or quadruple release control can be implemented
The release procedure in SAP
Loans is
supported by SAP Workflow
SAP Loans: Reporting
Standard reports
Drilldown Reporting
QueriesSAP
Business Warehouse
Other Reporting Systems
Mature technology makes it possible to easily fulfil specific information demands via adapting existing queries as well as creating new ones.
SAP Loans is fully integrated with the SAP Business Warehouse.SAP Business Warehouse includes standard content for Loans information.The SAP Business Warehouse allows flexible reporting including cross-reporting.
Rich features in order to create easily new reports via configuration.The reports can be defined ad-hoc with drilldown functionality, in list form or in graphical form
A large set of reports delivered with the systems covering areas such as position, workflow control, balance information, revenue analysis, accounting, commitments
SAP Loans offers an interface in order to feed data to other external systems such as risk systems.
Examples
© SAP 2007 / Page 61
SAP Loans Standard Reporting
SAP Reporting: Export to MS-Office
Agenda
© SAP 2007 / Page 64
Functional Overview
Customer Base
Introduction Loans Management
SAP Loans Management
Conclusion
Customers worldwide
mySAP Banking-Solutions More than 350 Implementations In over 20 countries
mySAP Banking-Solutions More than 350 Implementations In over 20 countries
Implementations of SAP Loans More than 700 Implementations In over 50 countries
Implementations of SAP Loans More than 700 Implementations In over 50 countries
Loans-Banking Customers Increase of Customers
ca. 25% p.a. 40 of the most imortant german
Banks Famous Banks in America,
Europe, Asia, Afrika
Loans-Banking Customers Increase of Customers
ca. 25% p.a. 40 of the most imortant german
Banks Famous Banks in America,
Europe, Asia, Afrika
LOANS – Customers Examples
SAP® Loans Management – Deutsche Postbank AG
Implementation Highlight 25 million accounts (loans, deposits, checking)
Key Benefits Significantly reduced IT costs
Replacement of 14 legacy system with 1 SAP system
Process and system complexity reduced by 80%
Day-end processes 2x faster
Post-processing efficiency increased by 30%
New products within a few weeks
© SAP 2007 / Page 68
QUICK FACTS
Deutsche Postbank AG
Location: Germany
Industry: Banking
Products and services: Retail business and corporate banking
Revenue: €190 billion (2006)
Employees: 22,000
Customers: 15,5 million
Solutions and Services: Applications from SAP for Banking solution portfolio, including SAP® Loans Management, SAP Basel II, and SAP Deposits Management; SAP MaxAttention™ support option; SAP NetWeaver
“With SAP solutions, we aim to achieve
the lowest processing costs and
fastest time to market in retail
banking.”
Dirk Berensmann,CIO and COODeutsche Postbank AG
SAP® For Banking – HSH Nordbank
Key Factors Integration of new applications in existing architecture
of crucial importance
Reduced expense for development and production
Increased implementation of standard software
Increasing core competence of IT department
- Support of technical departments
- IT architecture
- Project management
© SAP 2007 / Page 71
QUICK FACTS
HSH Nordbank
is a strong commercial bank in its core region of Northern Europe
Location: Hamburg
Industry: Banking
Products and services: the leading provider of financial services in the transport sector and the world’s largest provider of ship finance, market leader in the corporate customer segment, real estate
Employees: 4,431 (2006)
Branches: represented in 17 foreign locations in the Baltic Sea region, South-East Asia and in the key international financial centers of New York, London and Luxembourg
Revenue: EUR billion 189 (2006)
SAP® Solution and Services: SAP Loans, CMS, BCA, SAP BP, SEM Banking
SAP® For Banking – DG HYP
Results
15% to 20% reduction in it operating costs expected
20% reduction in processing times expected in retail area
Complete mapping of all commercial products in the standard system Reduction of maintenance
costs
Improvement in data quality
Easier introduction of new commercial products
Clearer mapping of data and group structures in the sap financial customer information management application, a central business partner module
© SAP 2007 / Page 72
QUICK FACTS
DG HYP
is the largest real estate bank within the German cooperative banking sector
Location: Hamburg
Industry: Banking
Products and services: the provide finance for residential and commercial real estate, extend loans to local authorities, securitize credit risks and issue Pfandbriefe (asset-covered bonds)
Revenue: EUR 85.7 bn (2006)
Nationwide market presence: 1,250 cooperative banks with about 12,500 local branches
Employees: 594 (2006)
Number of customers: 220,000
SAP® Solution and Services: SAP for Banking, including SAP Financial Customer Information Management
Since implementing SAP for Banking solutions for its commercial loan business, DG HYP has increased data quality, reduced IT costs, and set up a technology base for fast introduction of new products.
SAP® For Banking - DZ Bank
Implementation Highlights
One of the largest SAP Loans Management projects in terms of scale and data volume
Reliable data processing at peak times
Key Benefits
Faster processing of credit data: four hours instead of three days
Excellent operational reliability
Single account view for subsidized loans
© SAP 2007 / Page 73
QUICK FACTS
DZ Bank
is the fifth largest bank in Germany is the central bank for 1,100 Volksbanken
and Raiffeisenbanken and is a Verbund-oriented commercial bank in Germany and abroad
Location: Frankfurt am Main Industry: Banking Products and services: has a strong
position in one-stop financial services Revenue: $m 574,750 (2006) Nationwide market presence: 1,250
cooperative banks with about 12,500 local branches
Employees: 24,154 employees (2006) SAP® Solution and Services: SAP for
Banking
“The integrated set of solutions, SAP
for Banking, offers us the level of
reliability we need for processing our
one million credit agreements.”
Manfred SalberHead of Credit ManagementDZ BANK AG
Agenda
© SAP 2007 / Page 75
Functional Overview
Conclusion
Introduction Loans Management
SAP Loans Management
Customer Base
Key capabilities Easy configuration of new products
Open items handling
Automated processes (e.g. approval of data)
Mass processing features
Business rules driven automated collections processing
Multi currency, multi language, multi client features
Business process cost reduction through standardization and automation
Reduced IT operations costs through reduced interface maintenance efforts
Higher transparency and information quality
Accelerated time to market for new products1
Up to 30% reduction of IT development and change costs with SAP NetWeaver*
2
3
4
5
SAP Value Proposition Loans Management
Value impact
Source: SAP Projects*) Expert Estimation
Thank You for Your Time
Questions
© SAP 2007 / Page 77
© SAP 2007 / Page 78
Thank you!
Joerg Oser
Global Banking Line of BusinessSAP AGHeadquartersD – 69190 Walldorf / Germany
T +49/6227/7-609 52