••Banking On DemandBanking On Demand

Delivering the Business Value of IBM Workplace Solutions for Banking

Wuttichai KoasakulProject ExecutiveVirtual Link SolutionsTel: 02-618-9934E-mail: wuttichai@vlink.co.th

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Drivers of Bank Spend

Regulatory complianceOps., credit & market risksOptimal capital allocation

Loss ReservesTier 1 & 2 Capital

Expand wallet shareFee vs. Margin IncomeSustainable differentiation

Market ShareCross-sell ratios

Reduce operation costsSimplify business structureFocus on core activities

Efficiency RatioNon-Interest Expense

ResilienceResilience GrowthGrowthEfficiencyEfficiency

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Top IT Vendors in Banking

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5

10

15

20

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IBM HP EDS CSC Fujistu Accenture Cisco Microsoft Sun Hitachi

Top 10 companies in Financial Services TechnologyRanked by American Banker & Financial Insights

Tota

l FSS

reve

nue

in $

Bill

ions

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Banking is an important franchise for IBM

IBM’s Banking industry

Banks account for just 7% of total IT spending (GMV), but…

Banking accounts for 15.7% of IBM’s revenue (S&D). Banking is the largest of IBM 17 industries, and …

Banking accounts for 17% of IBM’s profit (S&D). With $6.2B gross profit, Banking is IBM’s largest profit driver.

IBM Banking has 20% market share, > next 5 competitors combined

15% 85%

Banking Revenue as a % of S&D

Banking GP as a % of S&D

17% 83%

Banking as a % of Total GMV

7% 83%

BankingRest of IBMFY Forecast

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Banking Business Solutions

On demand Infrastructure

Manufacturing

Processing

Insigh

t

Risk

Ma

nage

ment

Technology Management

Business Management

Distribution

PaymentsCore SystemsBanking Back Office

PaymentsCore SystemsBanking Back Office

Multi-ChannelInsightBanking Front Office

Multi-ChannelInsightBanking Front Office

Risk & Compliance

Risk & Compliance

Efficiency

Growth

Resilience

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IBM Banking Reference Architecture is focused on providing an efficient & reusable structure for Model, Assemble, Deploy and Manage banking components

Staffed channels

Teller

Call center

Platform

ATM

Web

Phone

Wireless

Self-servicechannels

Access services

Device enablement

Authentication

Contentdelivery

Personalization

Collaborationtools

Dialogmanagement

Access control

External info gateways

Information integration

External processgateways

Transaction integration

Process integration

Enterpriseintegration

Data marts

Data Warehouse

Business analytics

•Data mining•Segmentation•Campaigns•Reporting

Payments

ERP Systems

Insurance

Banking

Investments

Enterpriseservices

Core business processing

External data•Account aggregators•News•Market data•Exchange rates•Investment pricing

External partners•ATM/POS networks•Payment networks•Exchanges•Clearing/settlement•Custodians

Business transactions

Service / customer care

Fulfillment

Customer profile

Marketing

Sales

Advice / decision support

...

Common business logic

Retail customer (Web)

Retail customer (IVR)

Call center agent

Small business customer (Web)

Teller

Platform sales

Retail customer (ATM)

Role-specific channel applications

...

Channel Interaction

Contact history

Integrated customer view

Customer Info

•Consolidated client info•Complete contact history

Front Office Transformation Strategy

IBM Workplace

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IBM WebSphere Portal Version 6.0Meeting the New Requirements for the Front-End of SOA

Helping Organizations to Rapidly Respond to Change– Integrate with IBM WebSphere Portlet Factory– AJAX support to deliver compelling user experience

Easy-To-Use Composite Application Templates

– Flexibility to easily customize interfaces– Leverage new workflow builder– Portlet Palette & Enhanced Portlets

Helping Increase Organizational Productivity and Operational Efficiency– Enhanced IBM Workplace Web Content Management– Leverages IBM Workplace Forms (e-forms) capabilities– Fly Out Menus & Page navigation– Drag & Drop support– Enhanced Search– Native MS Windows & MS Office Integration

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Content & Document Management Integration

platformPortalFramework

Information Retrieval

Multi-channel Access

Learning

Expertise Location

Community

Process Management

User Process Integration

Application Servers

Industry Impact: Technology ConvergenceDriven by solution purchasing and need to reduce integration costs

Data Storage

Teamrooms

Web Conferencing

Presence & Instant Messaging

e-Mail

Systems Management

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Portals are being deployed today to deliver business values

B2E Portals improve employee productivity and speed decision making

B2C Portals increase customer loyalty and cross-sell revenue

B2B Portals build partner relationships through integration with your business processes

Content

People

Applications

Processes

Common portal framework reduces costs and meets changing requirements

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CRM

Teller

Content Management

Collaboration

eHR

Claims

Syndicated Rates

What is a Portal = Single User Experience

Single Sign On

Role Based

Personalization

Customization

Navigation

Security

“Integration at the Glass”

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IBM WebSphere® Portal: The Framework for Flexible Interaction Services

IBM Workplace Dashboards

IBM Workplace Forms

IBM Workplace Collaboration

Services

IBM Workplace Composite Products

IBM Lotus® Notes ®/Domino™

Browser

Mobile Clients

Rich Clients

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Business portals provide the personalized, integration point for applications, content, information and people

Access On Demand

Employees

Customers Partners

Suppliers

Business Portals

Open Services Infrastructure Enterprise Modernization

Host Environment

Open Source

ApplicationDevelopment

Developers

Open Services Infrastructure Enterprise Modernization

Host Environment

Open SourceCommunity

ApplicationDevelopment

Developers

Access On Demand

Employees

Customers PartnersInteractive User Experience

Business Portals

Selling and Channel Management

Content

Applications

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Branch Manager

Platform Agent

OptionsComposite ApplicationRenovate green screensInstant MessagingOfficeDashboardsSystem ServicesLocal ServicesAlertsNews

Dynamic Workplace with ‘peripheral vision’

Mobile Lender

that’s right for each role in your FRONT OFFICE

Branch Teller

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Translates company strategy into executionEnables cascading, interlocking and linking specific objectives internally and externallySupports real time management of relevant metrics, forecasts, etc., that affect achieving objectivesRapid resolution of existing and projected gaps in plans to meet objectivesDynamic change management system to quickly push, reach agreement, and implement modified objectives Embedded collaborative services to support correcting objective shortfalls

Executive Dashboards at work …

1515 Workplace Composite Products 5/21/2008

Reusable components (Builders) capture dashboard design patterns, speeding creation of custom portlets.

Record List & Detail

Hierarchy Drill Down

Status Indicator

Status Page

Summary Row

Summary & Drilldown

Query Filter

Repository of Reusable Design Components

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Performance Dashboards – properly implemented – provide a valuable tool for executives to improve their decision-making and business executionData Filters

Drill Downs

Utilities (Export, Print)

Hi-FidelityCharts

Alerts

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Drive Alignment and Accountability

Graphical UI instantly shows areas that need attention

Shows dependencies and potential performance gaps

Clarifies goals, targets and measures for an organization and the individual

Assigns concrete, measurable targets at all levels of an organization

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Dashboard KPI Catalog – No Charge Financial Services KPIs!

www.ibm.com/lotus/dashboardcatalog

Banking/Lending KPIsLoan Portfolio Distribution by GeographyProcessing Costs– By Geography – IT costs– FTE costsAt Risk Internal Processing Issues – Loan Revenue– Net Charge Offs– Loan Count– Non-performing loans Average Transaction Size

Loan Processing Time– By Geography– by Loan Type – By quarter Total Loan Count History– By Geography– Total Finance Issue Summary – Severity Level – Customer– Representative – Date

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Branch Manager Workplace

branch_hm.htm

•Banking Front Office

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Branch Platform Officer Workplace

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Branch Teller Workplace

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•Banking Front Office

Branch Teller Workplace

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Application Coexistence

Native Applications

WebApplications

SystemServices

LWP(SWT)Applications

Portlet (WPS)Applications

Text TerminalEmulator

Java Apps& Applets

•Banking Front Office

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Once the strategy and processes have been defined, IBM designs and builds an integrated desktop solution utilizing Rich Client Portal technologies

CTI integrated into Expeditor desktop

Customer & interaction information from CRM system

Call wrap-up buttons

Real time agent performance stats

Transactional functions

Tab access to 3270 terminal session

Agent scripting available concurrently with all other

applications

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Customer References

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RaboBank

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Bank Bumiputra

Bumiputra Commerce Bank

Bumiputra Commerce Bank

Bumiputra Commerce Bank

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Bank Hapoalim

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Bank Hapoalim Particulars

Business needTo provide its worldwide customers with fast and convenient services around the clock, Bank Hapoalim had implemented an online banking solution. The bank originally used BroadVisionsoftware to develop the solution, but the application rapidly proved difficult for the bank to maintain. Bank employees found that adding new or updating existing Web sites was both complex and time-consuming, leading the bank to search for another solution. Benefit of the solution:Implementing IBM's industry-leading portal solution has helped Bank Hapoalim to improve employee productivity and customer satisfaction. The bank can update its Web sites quickly and easily, saving time and increasing adaptability. Portals built using WebSphere software simplify and accelerate user interaction by providing a single point of access to personalized dynamic information and applications. Customers enjoy convenient and protected banking services from any location in a variety of languages.

Key factors that led to the IBM sale: The bank decided that the IBM WebSphere Portal Enable solution delivered much more than the BroadVision had, and the new software better fit the bank's existing environment.

Sales approach:IBM displayed the WebSphere Portal Enable software's capabilities and a roadmap that the bank liked very much.Find the individual who will support the solution from the client side.

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Fifth Third Bank

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Abu Dhabi Securities Market

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Met Life Investors

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Macif (French Insurance Company)

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Upgrade e-relationship with customers as a means to competitive advantage

The Challenge:Build e-relationship with customers & agents to deliver more responsive customer service, while also lowering operational costs

The Solution:WebSphere Portal selected to provide a single platform for deployment of integrated Java and non-Java applications. Policyholders can access updated account information in real-time & across products

On Demand Business Benefits:Supporting 300,000 registered users400 new registrants and 8,000 unique visits a dayWebSphere Portal easing burden on call center staff, enabling representatives to focus on value-added tasks15% of exchanges and 5% of redemptions are processed online.

“Insurance customers are enjoying a much richer

experience … And the big payback for Prudential is moving transactions out

of the call center & to the Web site--resulting in a significant year-on-year

reduction in call volumes.”- David Kennington, Prudential , VP of IS

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And Many More …

Maybank MalaysiaBNP ParibasComericaFirst BankCitibankWorld Bank MidanaoAkbankBanco AztecaBumiputra Commerce BankTaiwan Cooperative Bank …

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And even more everyday …

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Financial Services Communications Industrial Public Sector Distribution

Customers Benefit from Information Integration

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