ibm software group © 2007 ibm corporation

IBM Software Group

© 2007 IBM Corporation

Portal & Collaboration in Banking: An IntroductionSimply a better way for people to connect with business

Presenter:

IBM Software Group

© 2007 IBM Corporation2 Portal and Collaboration in Banking

Legal Notice The information contained in this presentation is provided for information purposes only. While

efforts were made to verify the completeness and accuracy of the information contained in this presentation, it is provided “as is” without warranty of any kind, express or implied. In addition, this information is based on IBM’s current product plans and strategy, which are subject to change by IBM without notice. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, this presentation or any other documentation. Nothing contained in this presentation is intended to, nor shall have the effect of, creating any warranties or representations from IBM (or its suppliers or licensors), or altering the terms and conditions of the applicable license agreement governing the use of IBM software.

Trademarks

The following terms are trademarks of the International Business Machines Corporation in the United States, other countries, or both:

Eserver® ibm.com® Domino® Dynamic Workplaces™ DB2® IBM® Lotus Notes® Lotus® Notes® SecureWay® Tivoli® WebSphere®

Microsoft, Windows, Windows NT, and the Windows logo are trademarks of Microsoft Corporation in the United States, other countries, or both.

Java and all Java-based trademarks and logos are trademarks or registered trademarks of Sun Microsystems, Inc. in the United States, other countries, or both.

Other company, product, and service names may be trademarks or service marks of others.

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Agenda

Banking Challenges

Roles and Business Processes

The Value of WebSphere Portal & IBM Collaboration to the Banking Sector

Portal & Collaboration Banking References

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Banking Drivers For Productivity Solutions

“US banks will upgrade and renovate 30,000, or 26% of their branches by 2006 and spend $1.4 billion on branch technology in 2006. Most of this spending will go toward enabling branch personnel to view all of a customer’s relationships with a bank.”

—Datamonitor, Information Week,

April 2004

“The browser-based portal is fast becoming the enterprise UI [user interface] and the nexus for a new breed of integration and app dev.”

—InfoWorld, January 2004

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Core Systems

Teller

New Accounts

BrowserChannel

Application Servers

WebServers

InternetCall Center

Loan Origination

Browser

ATMWireless

An open standards-based Web/centralized model provides the ideal base to address a number of banking challenges.

Browser

Branch

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IT Dimensions To Business ValueBlurs the boundaries between thin and rich application

1. Reach Internet Banking

Branch Manager

Platform Officer

2. High Performance Broker

Call Center Agent

Branch Teller

3. Sometimes Connected

4. Self Service

Kiosk

Web Access

Easy access through any browser

Demands rich experience to boost productivity

Minimize latency

Insurance Agent

Financial Advisor (Mobile)

Business Banker

Need local data and applications

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Infrastructure

Insi

ght

Six Financial Services Competencies

Distribution

Customer-facing activities that leverages interactions

Infrastructure

Technologies, processes and personnel

Insight

Planning, market research and data mining capabilities

Risk & Financial Management

manage aggregated risk and portfolio-based activities,

Manufacturing

development and assembly of products and services

Processing

fulfillment processes and transaction support functions

Source: IBM Institute for Business Value analysis

Financial institutions compete and excel across six common competencies, striving to deliver them faster, at lower cost, and with higher quality than the competition.

Operations

Manufacturing

DistributionR

isk & F

inancial M

anagement

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Portal services

A service-oriented architecture (SOA) is an approach for building distributed systems that enables flexible connectivity of applications/resources

Data

Serviceflow

Existingapplications

Newservice

logic

B2Binteractions

SOAPService Request

(e.g., J2EE, .NET)

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Competencies Manifested as Business ServicesBanking Industry “Point of View”

Business Service A business service is

a group of cohesive business activities supported by

– Systems – Processes – Organization– Performance measures

Each business service addresses a unique purpose and collaborates with others with clear SLAs

Source: IBM Institute for Business

Value analysis

Each competency is componentized within an overall infrastructure, the result of which is an integrated value chain linking customers, employees, and partners.

SystemsDevelopment Training Help Desk Systems

OperationsFacilities

Management

Financial Control

ALCO

LedgerGL

Financial Reporting

Treasury

Audit & Compliance

StatementsWireroom/Payments

Document Management

Customer Accounts

Operations

Portfolio TradingRewards Processing

Credit Decisioning

Inforce Processing

Manufacturing

Business Planning

Product Planning

Market Research

Campaign Execution

Case Handling

Operational CRM

Advisory Services

Teller Facilities

Distribution

Customer Services

Sub-Prime Mass Retail Mass Affluent

Private Banking Ultra HNW

Infrastructure

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SystemsDevelopment Training Help Desk Systems

OperationsFacilities

Management

Financial Control

ALCO

LedgerGL

Financial Reporting

Treasury

Audit & Compliance

StatementsWireroom/Payments

Document Management

Customer Accounts

Operations

Portfolio TradingRewardsProcessing

Credit Decisioning

Inforce Processing

Manufacturing

Business Planning

Product Planning

Market Research

Campaign Execution

Case Handling

Operational CRM

Advisory Services

Teller Facilities

Distribution

Customer Services

Portals Assemble Related Business ServicesEach user (employee, customer, partner) interacts with a set of the business services to perform common transactions and collaborate with others to derive value from the infrastructure.

Infrastructure

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Banking Example: Loan Origination

1. Loan Application

2. Asset Verification

3. Credit Scoring

4. Underwriting

6. Decisioning

7. Cross-sell

8. Payment

5. Exception Clarification

CRM Account

Common bank processes can be understood as a sequence of coordinated activities wherein different users interact to execute specific tasks.

Each user has a portal that surfaces a collection of people, applications, and process to facilitate the execution of the process.

Credit Bureau

CollaborativePortal

Loan

Customer Accounts Officer Underwriter

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The componentized model is extensible such that new roles and capabilities can be dynamically introduced when and where it differentiates the process.

3. Asset Verification

4. Credit Scoring

5. Underwriting

7. Decisioning

8. Loan Closing

8. Payment

6. Exception Clarification

CRM Account

Credit Bureau

CollaborativePortal

Loan

Customer Accounts Officer Underwriter

1. Customer Interaction

3rd party Originator

2. Loan Application

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Example of a Loan Officer’s portal homepage

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Business Case View – Return On Productivity (ROP)

Cost Savings

Revenue Generation

Operational Efficiency

User Satisfaction

Provide revenue protection and cross selling opportunities

Collaborate and learn from collective experience

Expand market share and move into new markets

Improvements in customer retention

Productivity increases as frustration decreases

Gain competitive distinction

Build and deploy applications and services faster

Consolidate procurement of hardware and software

Reduce back-office staff and administrative costs

Communicate via one channel, not 1500+ websites

Link event based cross functional processes

Increase data accuracy and speed decision making

Share single infrastructureFocus on content and

services, not technologyStreamline operational

support

Align IT Investments

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ROP Example

Average Salary per Employee 20,000$ Total Employees 2,000 Total Salary Expense 40,000,000$

Project InvestmentSoftware 100,000$ Services 75,000$ Hardware 25,000$ Total 200,000$

Productivity Factor 0.50%(Ratio of Total Project Cost to Total Salary Expense)

Weekly Work Minutes 2,400 (40 hours x 60 minutes)

Productivity Breakeven 12 (In minutes, average weekly savings to breakeven)

Productivity Gain 20ROI 67%

People are the greatest source of competitive advantage

Example productivity drivers:

– Faster Business Process execution

– Clarity of responsibility through task assignment

– Faster response time in process sequence

– Real-time expertise location

– Enterprise Search (Efficient location of information)

– Single Sign On (Simplified access to key applications)

Improving productivity increases competitive advantage

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Sparkasse Rhein-Haardt

Sparkasse Rhein-Haardt purchased IBM WebSphere Portal to:

– Better manage multiple, inconsistent work forms and aging office productivity tools.

– Introduce a document management system to oversee lifecycles and forms stored on several shared directories.

– Manage many bank-specific and office applications, such as the company's IBM Lotus Notes software, which ran on local Intel-processor-based servers.

– Improve efficiency and leverage synergies from previous mergers by cutting the cost of redundant infrastructures

The bank operated with a variety of electronic forms but without a comprehensive document management system to manage them and coordinate access.

With nearly 500 forms available on many varied platforms and databases, finding, accessing, using and managing the forms was problematic, limiting productivity and creating confusion.

Business Challenge Business Benefits

Solution

Boost efficiency by giving employees common access to information, documents, software applications and office and mail tools.

Reduce the number of disparate point solutions and avoid the need to manually distribute work forms

Save on software licensing costs by using OpenOffice software, an open-source, multiplatform tool, for many of its routine business functions.

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Nextra Bank

Nextra purchased IBM WebSphere Portal to:

– Streamline business processes throughout the merged company

– Provide a real-time, responsive CRM portal built on WebSphere and Lotus technologies

Avoid eroding customer service and losing clients while merging two financial groups with different business processes and technology


Solution

Improved customer retention and confidence through enhanced responsiveness

Increased staff productivity & efficiency

Tens of thousands of US$ savings in development, deployment & training costs

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County Schools Federal Credit Union

County Schools Federal Credit Union purchased IBM WebSphere Portal to:

– Increase reliability and productivity

– Provide secure single sign-on

– Allow for easy implementation

– Provide for growth

Fast-growing bank needed a more reliable way for partners and employees to securely access its information systems


Solution

Reduced downtime by 99%

Increased productivity by enabling secure single sign-on wherever the employee is located

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Banca Popolare di Milano (BPM)

BPM purchased IBM WebSphere Portal to:

– A multichannel banking solution to enable seamless service access for customers.

– A single view of the customer for branch employees.

– A component business modeling approach to analyze, transform and integrate processes.

To enhance cross-selling and strengthen customer retention, Banca Popolare di Milano (BPM) needed a more integrated and customer -centric view of their clients. But “siloed” processes and fragmented, complex systems got in the way.


Solution

Single customer view enhances cross-selling revenue opportunities

Seamless user experience raises customer satisfaction and retention

Flexible architecture enables shorter development cycles and faster time to market

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Huntington National Bank“We wanted something robust and functional that would be supported and enhanced by a legitimate vendor going forward. … The product is functionally rich and the pricing was competitive. A bit of a no-brainer really.”

-- David Sewalk, Senior Vice President, Business Solutions Development, Huntington National Bank

Establishing organizational accountability and control catalogs.

Documentation of processes and linking them to financial report line items, associated risks, appropriate controls and control procedures.

Evaluation of control adherence and reporting, using:

– IBM Workplace for Business Controls and Reporting

– IBM WebSphere Portal

– IBM DB2 Content Manager

– IBM Software Services for Lotus

– Control/ Compliance Advisory Services

Document, evaluate, and monitor business processes and financial controls to help meet new regulatory requirements

Business Challenge Technology Benefits

Solution

Reaches across geographic and organizational boundaries for consistent reporting

Proven technology based on open standards

Business Benefits

Helps customer identify risk as part of overall efforts to respond to SOX Section 404

Responsive dashboards enable monitoring of internal controls effectiveness

Holistic framework eliminates duplicate control initiatives

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“I see the solution we’re building as eighty percent communication and twenty percent information. People have to be able to talk to each other easily and collaborate. The 1,300 banks that make up the German Cooperative Banking Organization are not one single company, but they have to work together as if they are. The VR Knowledge Portal (vr-wissen), which we built with WebSphere to integrate Domino databases, helps us accomplish that goal.”

—Hartmut Ehrich, Manager Service Projects, FIDUCIA IT AG

More Quotes

“It made perfect sense to have a secure single sign-on portal for everyone—our partners, executives and employees—to access our applications and company information. IBM understands the regulatory security requirements that banks must meet, and we trust IBM solutions to help us comply.”

—Ann Lukens, Systems Coordinator, County Schools Federal Credit

Union

“Employees have maintained the high level of responsiveness to customers that originally secured our leadership position. Our intuitive Web-based applications—created using WebSphere application development tools—have saved us tens of thousands of dollars in costs normally associated with client software deployment and training.”

—Massimo Paglietti, IT Manager,

Nextra

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Thank You

MerciGrazie

Gracias

Obrigado

Danke

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For More Information: ibm.com/websphere/portal

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