1/2/2007 1

ee--Commerce Commerce Role of BankingRole of Banking

2007

Presented by Vietcombank

1/2/2007 2

CustomersCustomers

Knowledge Management and Business Intelligence

Electronic Commerce

SupplySupplyChainChain

ManagementManagement

CustomerCustomerRelationshipRelationshipManagementManagement

EnterpriseEnterpriseResourceResourcePlanningPlanning

Direct, Personalized

Sales

Real TimeOrder

Management

Demand Plan

Supply Plan

Scheduling CustomerService

Procurement DistributionLogistics

Product/Service Development Management

Suppliers/Suppliers/PartnersPartners

Business Strategy

e-business Enablement

Simplified e-business Process ModelSimplified e-business Process Model

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e-BusinessAttraction - Interaction - Transaction - Satisfaction

...Sale...Place orderMake paymentBilling and inventory

Pre-Sale...Publish/update catalog, prices, etc.Browse catalogNegotiate terms

...Post-SaleManage inventory with suppliersCoordinate with shipping companyResolve issues and maintain relationshipCustomer

Service

Marketing

Sales

Reaching new customers

Improving bottomline

Increasing loyalty

Manufacturing

Delivery

JIT, ordering

inventory, shipment-

tracking

R&D

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General Business Strategy e-commerce Implication

Consistent processes and information through the supply chain

Reduce costs by automating manual, paper-intensive processes

Operational Efficiency3

Provide superior customer service

Target marketing and sales efforts to individual customers

Provide consistent customer experience across all channels

Increase customer loyalty 2

Increase exposure through alternate channels

Expand to new markets

Develop value-added products & services

Increase revenue per customer

Revenue Growth 1

E-commerce a key component of e-business strategy

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Reduces capital / Reduces capital / resource requirementsresource requirementsLower operational costsLower operational costsPlatform for Platform for differentiationdifferentiation

Buyer IssuesTime intensiveOften times inconvenientLimited selection of products / services

Seller IssuesCapital / resource intensiveRising operational costsIncreasing competitive pressures

Time savingsTime savingsBuying convenienceBuying convenienceBroader selection of Broader selection of products / servicesproducts / services

Electronic CommerceWeb site

on-line sales & service

Internet

Buyers Sellers

Store

DirectSales

ChannelPartners

Catalog

The Emergence of e-Commerce

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E-commerce The Electronic Means of Exchanging Value

InternetInternet

Merchant(Seller)

Consumer(Buyer)Bank

(Payment)

Logistics(Fulfillment)

1/2/2007 7

Home User

I B M

I BM Se r v i c e Ba n k

M i c h a e l M o n e y m a k e r

1 2 3 4 2 5 - 3 3 5 6 7 7 8 8 1 2 3 5 6

K o n t o - N r -

K a r t e n - N r .

1 2 3

4

Branch

I B M

I BM Se r v i c e Ba nk

M i c h a e l

M o n e y m a k e r

1 2 3 4 2 5 - 3 3 5 6

7 7 8 8 1 2 3 5 6

K o n t o - N r -

K a r t e n - N r .

1 2 3

4

Convenience Store

ATM/KioskInternet BankingInternet

Shopping

BANK CARD

1234 5678 90121234 5678 9012V A L I D

F R O M

G O O D

T H R UX X / X X / X XX X / X X / X X

KE N Y AM A DA

X X / X X / X XX X / X X / X X

KE N Y AM A DA

Unmanned Banking ServiceSuper Small

Branch Office

New Concept Branch

Internet

SecuredNTWK

Cyber- Mall Logistics GW

e-Commerce: e-Credit/e-Debit

Authentication : PKI

Unmanned/Customer Site Banking

Financial Institution

Contactl Center

DB Marketing :Intelligent Miner/

BDS

Internet

Internet Banking

Channel E-Apps Information SystemNTWK

Bank

Insurance

Service

Marketing

Cust. Info. Analysis for Credit

Mainstay System

Business tie-up System

Channel Interface Pricing

Risk Mgm't

Cust. Mgm't

Stock Co.

e-Commerce for Financial Institutions

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Internet Paym ents D iagam

OnlineStore

Pay m e ntSe rv e r

Se cureW e b Brow se r Internet

B A N K

Merchant's Bank

Internet

ExistingFinancialNetworks

Customer's Bank

Pay m e ntGate w ay

Consumer Merchant

dial-upor

leased-line

Consum e r W alle t

Secured Tranaction

1/2/2007 9

Electronic CommerceWeb site

online sales & service

Internet

The Bank is a Core Foundationfor e-Commerce

Banking Facilities to businesses and consumersOnline banking - retail, corporateApprovals for banking products - OD, Loans, etc.Payment options - Credit, Savings, Current...Trade Finance - Factoring, Discounting, LC, new e-payment...Stock Broking - IPO, e-trading, paymentsInsurance - New products, computation, premiums, etc.

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Key e-commerce Applications

- The Bank as a Player or Facilitator

Web Banking ServicesElectronic Bill Presentment - Business to Business & ConsumersPayment SystemsInternet Stock TradingInternet company Storefronts / Mallse-procurement e-MarketPlaces

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Proprietary Property Of IBMProprietary Property Of IBM

Access Access ChannelsChannels

Branch-Branch- based based services services

Call centersCall centers for sales/ for sales/ services services

Brokers/Brokers/ Agents/ Agents/ Partners Partners

CommercialCommercial & Corporate & Corporate RMs RMs

PrivatePrivate Bankers Bankers

HelpdeskHelpdesk

CustomerCustomerOperatedOperatedInternet Internet

Banking/ Banking/ Payments/ Payments/ Brokerage Brokerage

CorporateCorporate Electronic Electronic Linkages/ Linkages/ EDI EDI

SelfServiceSelfService Kiosks Kiosks

Telephone/Telephone/ VRU VRU

CardsCardsATM/POSATM/POSOthersOthers

Operational Operational SystemsSystems

General LedgerGeneral Ledger

Deposits/LoansDeposits/Loans

PaymentsPayments

FX & Electronic MktsFX & Electronic Mkts

DepositoriesDepositories

Treasury/TradingTreasury/Trading

CardsCards

Staff Functions /Staff Functions / Partner Partner ConnectionsConnections

Knowledge ManagementKnowledge Management

Brand Management Brand Management mass merch.mass merch. customizationcustomization innovation/different'ninnovation/different'n

credit credit Risk ManagementRisk Management

operational operational market market

Customer ManagementCustomer Management segmentationsegmentation valuevalue customer intimacy customer intimacy

Service Delivery ManagementService Delivery Management

Business Processes & Data ManagementBusiness Processes & Data Management

Network managementNetwork managementSecurity/standardsSecurity/standards

External gatewaysExternal gatewaysShared servicesShared services

Business process re-engineeringBusiness process re-engineering Data warehousingData warehousing

Profit ManagementProfit Management

product profitabilityproduct profitability customer relationship profitabilitycustomer relationship profitability

BankBankOperatedOperated

Banking and Financial Processes

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C O R E B A N K IN G A P P L IC A T IO N S

R E T A IL B A N K IN G T R A D E F IN A N C E b a c k o f f ic e

B A N K IN G D E L IV E R Y C H A N E L S

A T M

V C B W E B

S M S

E X T E R N A L N E T W O R KSWIFT

IBPS

W A NP U B L I CN E T W O R K

C U S T O M E R

S E L FS E R V I C E S

B R A N C H I N T E R N E T P C /T E L paymeent

REUTER

D A T A W A R E H O U S E

M O S A I C /V C B V I S A /A M E X /M C I AV C B M O N E YC O N N E C T 2 4

M ID L E W A R E

H Ö t h è n g t h « n g t in q u ¶ n l ý (M IS )

IB P S G a te w a y S W IF T In te r fa c eIS T S w itc h

C R M R IS K M G M T . F IN A N C IA L M G M T .

M A R K E T T IN G M G M T .

M A N A G E M E N T IN F O R M A T IO N S Y S T E M

T R E A S U R Y

E x e c u t iv e IN F O R M A T IO N S Y S T E M

V C B G a te w a y

P O S

V ie tc o m b a n k IT In f r u s t r u c tu r eR e a d y fo r e -C o m m e r c e

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C O R E B A N K IN G A P P L IC A T IO N S

R E T A IL B A N K IN G T R A D E F IN A N C E b a c k o f f ic e

B A N K IN G D E L IV E R Y C H A N E L S

A T M

V C B W E B

S M S

E X T E R N A L N E T W O R KSWIFT

IBPS

W A NP U B L I CN E T W O R K

C U S T O M E R

S E L FS E R V I C E S

B R A N C H I N T E R N E T P C /T E L paymeent

REUTER

D A T A W A R E H O U S E

M O S A I C /V C B V I S A /A M E X /M C I AV C B M O N E YC O N N E C T 2 4

M ID L E W A R E

H Ö t h è n g t h « n g t in q u ¶ n l ý ( M IS )

IB P S G a te w a y S W IF T In te r fa c eIS T S w itc h

C R M R IS K M G M T .

F IN A N C IA L M G M T .

M A R K E T T IN G M G M T .

M A N A G E M E N T IN F O R M A T IO N S Y S T E M

T R E A S U R Y

E x e c u t iv e IN F O R M A T IO N S Y S T E M

V C B G a te w a y

P O S

VCBOnline on-line banking on-line based products

central information management central business management

VCBOnline on-line banking on-line based products

central information management central business management

eBank Products HOME BANKING (VCBMoney)

INTERNET BANKINGvcb CYBER BILL PAYMENTSMS BANKING

eBank Products HOME BANKING (VCBMoney)

INTERNET BANKINGvcb CYBER BILL PAYMENTSMS BANKING

CARD-BASED Products FULL MEMBER OF VISA,MASTERCARD, EXCLUSIVE FOR AMEx

EXCLUSIVE ACQUIRER FOR DINER CLUB,JCB1,500,000 ATM CARD, 200,000 INT’L CREDIT CARD/DEBIT CARD SHARED RUN ATM/POS NETWORK VCB’s Alliance WITH 20

MEMBERS

CARD-BASED Products FULL MEMBER OF VISA,MASTERCARD, EXCLUSIVE FOR AMEx

EXCLUSIVE ACQUIRER FOR DINER CLUB,JCB1,500,000 ATM CARD, 200,000 INT’L CREDIT CARD/DEBIT CARD SHARED RUN ATM/POS NETWORK VCB’s Alliance WITH 20

MEMBERS

1/2/2007 14