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©2013 Software AG. All rights reserved.

ATB Financial Performance Redefined

Benjamin Nakaska

Enterprise Business Process Architect

December 3, 2014

©2014 Software AG. All rights reserved. 2 |

ATB Financial Strategic Drivers

THE Place To Work! Extraordinary Results # 1 in Every Market

We’re In

Loved and Respected

by Albertans

85% Engagement $526 million

Net Income 17% Market Share

in Retail

22% Market Share

in Business

180,000

New Customers

13% Albertans Consider

Switching

781 Customer

Satisfaction Score

77% Engagement $275 million

Net Income

13.8% Market Share

in Retail

21.8% Market Share

in Business

11% Albertans Consider

Switching

752 Customer

Satisfaction Score

Current

FY 2017


THE Place

To Work! Loved and

Respected

# 1 in Every

Market

Extraordinary

Results

• ATB Financial

• Regional Bank in one

province in Canada

• Largest Branch

network in Alberta

• 9th largest Financial

Institution in Canada

• $37.6 Billion total

Assets

• Alberta

• 11% of Canada’s

population

• 52 public billion dollar

firms based in Alberta.

169 in Canada

• Highest per capita

debt in Canada

($125K)

ATB Financial Context


• Stats

• ATB

— 17% market share for

business loans < $5M

• Alberta

— 99.7% of business are

small and medium size

— Small & medium size

employ 56% of the

workforce

— 89.1 businesses per

100,000 people

• Women

— 58% want to start their

own business in the

next 5 years

— Self employed:

110,800 in 2004,

126,600 in 2014

ATB Business And Agriculture

THE Place

To Work! Loved and

Respected

# 1 in Every

Market

Extraordinary

Results


• $4.8 Million in realized

cost savings

• 85% Overall Engagement

Score

• 85% Satisfaction in the

organization

• 289 Enterprise updates

on business rules and

policies

Business Process Management Team at ATB Financial • “Almost every decision I have made that led to something awesome would

have been way more awesome had I simply decided to start sooner.”

Wade Foster, CEO Zapier

THE Place

To Work! Loved and

Respected

# 1 in Every

Market

Extraordinary

Results


What you’ll know by the end of the session

THE Place

To Work! Loved and

Respected

# 1 in Every

Market

Extraordinary

Results


What you can take back to your company


• Baseline

measurement of end

to end process has

average cycle time of

78.2 hours or ~11 days

Primary Object: Reduce the cycle time of small business

and agricultural lending to one day or less

Loved and

Respected

# 1 in Every

Market

Extraordinary

Results


Small Business Express Lending

• Struggles:

# 1 in Every

Market

Extraordinary

Results


Original Process

Existing Customer, sole proprietorship,

no existing collateral

Existing Customer, existing collateral that is

not in CMS

New Customer that is a cooperation

AO – Avg cycle time 2hrs AO – Avg cycle time 2hrs

BP Entry takes ~5 min or less for

80% of B&AG Deals

1. Collateral Entry

2. Total Exposure

2hrs-

1+days 2hrs-

1+days

The most significant contributor to

long cycle time due to re-

work, waiting and

unreliable, unrepeatable

process. Current state has a

~35% approval rate

1. Application Validation

2. Assess if deal is complete

and reasonable

Re-Work Loop

Re-Work Loop

Re-Work Loop

2hrs-

1+days

High processing time,

rework and waiting

are the main process

issues.

1. SC Data Entry

2. Adjudication

3. Recording final entry

Lender must re-key

customer info into

forms for CS to

fund. Rework and

waiting are the pain

points for this step

AO – Avg cycle time 2hrs

AO – Avg cycle time 2hrs

2hrs-

1+days

2hrs-

1+days

Waiting

1 2 3

4

AO App Validation Adjudication

Funding

Loved and

Respected

# 1 in Every

Market

Extraordinary

Results


• Customer

• 48% of processing

activities were non-

value add

• Couldn’t wait for a

decision, but could for

funds (within reason).

Challenges by the numbers

• $2,162.00 Estimated cost per loan based on

processing time

• 35% green light approval

• Industry Standard 70%

• ~20 days process variance

• Breakdown of non-value add steps:

• Application Validation and Routing – 42%

• Scorecard Adjudication – 28%

• Account Origination – 15%

• Manual Adjudication – 13%

• Same deals would result in different answers based

on different adjudicators looking at the deal

Loved and

Respected


Current Implementation

Less than 1 sec.

1 Account Origination

Adjudication –

webMethods

and Blaze

2

Funding 3

Cycle 15 min-1hrs less than 1 Sec.

Est. Cycle 10-20 Min

Cycle 1-2 hrs

Extraordinary

Results


Phase 2

15 min – 1 hours Less than 1 sec.

1 Account Origination

Adjudication –

WebMethods and

Blaze 2

3

Straight through processing!

Funded by

response

Client receives funds/

Account created

THE Place

To Work! Extraordinary

Results


• Verbatim Comments

• “I was able to approve

three deals myself this

week, which is

awesome!”

• “It is way quicker. If

you use the

assessment tool first

it’s pretty accurate”

• “Very slick, quick and

painless.”

Implementation by the numbers

• Benefits

• 60% auto approvals – moving to 70-80%

• Same day approval or rejection – 100%

• Same day funding – 20%

• $940K to $1.1MM in savings / revenue generation per

year.

• Costs

• $602,715 Total

— $58,625 Operating

— $544,090 Capital

— Bill back model in IT

• Adjudication Decision

• Reviewed > 30,000 loans under $250 K

• 24 data points that were statistically significant in

getting to a 70-80% approval rate

# 1 in Every

Market

Extraordinary

Results


After Implementation

THE Place


Results


Operating Guide Storyboard

Written for the writers

Information not consistent

Multiple sources of information, not sure when to use which one

Information is not easily located.

Timely Approvals – 40 + Days

Timely search

Quickly determine what has changed.

Comment quickly without ownership

Update information faster

Relevant Approvers

Loved and

Respected

# 1 in Every

Market


Operating Guide Changes

THE Place

To Work! Loved and

Respected

# 1 in Every

Market

Extraordinary

Results


Change Commercial - Ownership

The Play video <The Things We Own>

THE Place

To Work! Loved and

Respected


Three areas of focus

Strategic

Tactical

Operational

Business Target Operating Model – BTOM

Banking Reference Model Dashboard

Change Dashboard

Business Rule Steering Committee

ARIS & ARIS PPM linked and displayed in SharePoint

Simplified Messages

Operating Guide Refresh

Ops Guide WIKI (Federated model for content updates)

Business Rule development

THE Place

To Work! Loved and

Respected


• Primary Goals

• Better Searching

• Content that is easier

to understand

• Transparency to the

processes at ATB

Financial

• Allow team members

to access the

information to move

forward with the

clients in less than 56

seconds

Implementation Decisions

• Use Existing Technologies

• Transform ATB’s ability to turn around rule changes

• Rules that could be measurable

• These would feed into business rules steering

committee to determine which make sense to drive

into the WebMethods layer

• Trust team members and make sure we meet the

legislative requirements (be crazy but within

reason)

• Strategy Statement:

• To be the best and single source of truth for business

rules, policies and processes in ATB Financial.

THE Place

To Work! Loved and

Respected

# 1 in Every

Market

Extraordinary

Results


• Percentage of Users

• Super User – 3%

• Early Adopters – 2%

• Evangelists – 3%

• Challenges of team

members

• Reluctant to update

content

— Want the “owner” to

update content

User Breakdown

• 1 2

• 3

• Costs

• $2,100

— All Capital

THE Place

To Work! Loved and

Respected

# 1 in Every

Market

Extraordinary

Results


• Verbatim:

• “This is a game

changer”

• “Our processes are

finally clear”

• “Unexpected and a

competitive edge”

Net Benefit of Operating Guide Changes

• 2 days for content to approve

• Work is made easier – Easy Navigation – This feeds

into the operational business rule process

• Approvers are

content specific

• Linkages to ARIS

and near instant

feedback with ARIS

PPM

THE Place

To Work! Loved and

Respected

# 1 in Every

Market

Extraordinary

Results


Leading ATB Financial to:

Intelligent Business Operations

The next generation of

business processes will

have to move beyond cost

savings and efficiency, and

become more adjustable

to disruptive forces,

changing market and

customer dynamics

THE Place


Results


Contact Information

• Email: [email protected]

• Twitter: @BNakaska

• LinkedIn: ca.linkedin.com/pub/benjamin-nakaska/67/999/361/

mailto:[email protected]

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