Arbes Finance Day Intelligent solutions for the paperless journey Alexandru Lazarescu June 2014 1
Information Management Maturity Stage Four Integrating with the Business Stage Three Managing Change Stage Zero Legacy Content Stage One: Content Under Control Stage Two Access Anywhere 3
End-to-end model with a customer centric view vision Channels Processes Processes Internal Systems Branch desk Receipts and Payments Bank transfer request Receipts and Payments Bank transfer execution CRM Internet/ Remote Banking Credit card request Current Account Credit card emission Current Account Reporting Banking network New Account Opening request Savings account request New Account Opening execution Savings account executed. ustomer Corner / ATM. Safe custody. Safe custody Bank Call Center Safe transfer request Customer folder Safe transfer execution.. Credit Loan request. A centralized folder for all the customers Credit Loan delivery.. Digital Signature, Process Improvement BPR/BPM Branch operations improvement, a simplified offering of new services and the operational review ( straight through processing ) as benefits after Customer Folder creation 4
Customer Information is the value that needs to be mainteined Customer Lifecycle 2010 Customer is born 2010 Infrastructure Lifecycle Purchase Migration 1 2010 2014 2018 2022 2026 2030 2034 Migration 2 Application Lifecycle Purchase Migration 1 2010 Customer Information Lifecycle 2010 Savings account Migration 3 Migration 4 Migration 5 Migration 6 2100 Customer dies 2100 Migration X 2018 2026 2034 2100 2018 University Marriage Children Migration 2 Life Insurance Current Account Home loan Migration 3 Migration X 2100 2100 2100 5
CONTENT COLLABORATION POLICIES PEOPLE PROCESS DATA CENTRALIZE APPLY VALIDATE NOTIFY CAPTURE PROCESS ACT OPTIMIZE 6
Paperless Bank Reference Architecture Core Banking Systems Infrastracture for digital signature, time stamping Current Account Titles Credit Landing Web Capture Search Lifecycle Retention Agency Customer applications and systems (ad es. apps) Business Process Multichannel Electronic and digital signature Compliant archiving Customer Communication Records Security Compliance Mobile Email Cloud ready Unified Infrastructure 7
But How Do You Get There? Stage Four Integrating with the Business Stage Three Managing Change Stage Two Access Anywhere Stage Zero Legacy Content Stage One Content Under Control Paper & Electronic Documents Multiple Repositories Challenges finding and managing content Managed Electronic Documents Single Content Management Repository Enterprise-wide Search Project and role based controls Ensure access to approved versions Content accessible through web and mobile devices Adherence to industry standards Built-in change management: approval and publishing workflows Access content directly from business systems Support for mobility 8
2014 Key Solutions App-Decom/ Enterprise Archiving (EIA) Loan Automation Digital Mailroom / Branch Services Information Governance Regulatory Reporting Recovery & Resolution Planning Living Wills Paperless Bank Reference Architecture IIG value-added offerings Syncplicity Info Archive Captiva Kazeon 9
App decommissioning
TYPICAL CUSTOMER ENVIRONMENT LEGACY APPLICATIONS READ ONLY ACTIVE APPLICATIONS READ & WRITE INFRASTRUCTURE & STORAGE FRAGILE HIGH COST BUT LIMITED VALUE ARCHIVE SILO 1 BACKUP = ARCHIVE (!?) BACKUP = ARCHIVE (!?) ARCHIVE SILO 2 DATA GROWTH IT COST USERS DATA ACCESS COMPLIANCE MANAGEMENT LINE OF BUSINESS, CUSTOMERS, COMPLIANCE, AUDITOR 11
EMC ENTERPRISE ARCHIVE SOLUTION LEGACY APPLICATIONS READ ONLY ACTIVE APPLICATIONS READ & WRITE INFRASTRUCTURE & STORAGE APPLICATON STORAGE COSTS BACKUP COSTS PERFORMANCE DATA GROWTH IT COST DATA RSA DATA PROTECTION ENTERPRISE ARCHIVE SOLUTION IIG EAS PLATFORM BRS ISILON DATA DOMAIN, ATMOS, CENTERA 12
EMC ENTERPRISE ARCHIVE SOLUTION LEGACY APPLICATIONS READ ONLY ACTIVE APPLICATIONS READ & WRITE INFRASTRUCTURE & STORAGE DATA GROWTH IT COST DATA ACCESS ENTERPRISE ARCHIVE SOLUTION USERS COMPLIANCE MANAGEMENT LINE OF BUSINESS, CUSTOMERS, COMPLIANCE, AUDITOR 13
Customer onboarding
AGENT ACT PROCESS CUSTOMER CAPTURE NOTIFY VALIDATE APPLY 15
ACT PROCESS CAPTURE NOTIFY APPLY for a new product or service VALIDATE APPLY 16
ACT PROCESS VALIDATE against a system of record? CAPTURE NOTIFY VALIDATE APPLY 17
ACT PROCESS NOTIFY personalized via multiple channels CAPTURE NOTIFY VALIDATE APPLY 18
ACT PROCESS CAPTURE electronic and physical documents CAPTURE NOTIFY VALIDATE APPLY 19
ACT PROCESS PROCESS workflow for approval CAPTURE NOTIFY VALIDATE APPLY 20
ACT ACT send welcome kit to customer PROCESS CAPTURE NOTIFY VALIDATE Automatically set the appropriate retention period APPLY 21
2013 Customers EMC CONFIDENTIAL INTERNAL USE ONLY 22
SOLUTON Application Decommissioning/EIA A unified cost-effective applications decommissioning solution, streamlining and standardizing data from multiple sources. It eliminates obsolete legacy systems, maintenance, licenses, storage & retention costs for all system types and volume, enabling fast trusted adherence to corporate & regulatory policies. WHY NOW: EXAMPLES: BENEFITS: Cost reduction for legacy applications: recurring costs maintaining obsolete infrastructure, redundant out of support licenses and applications Infrastructure modernization Core system replacement Archiving projects (including SAP) Integration and rationalization initiatives from M&A Compliance initiatives (Records Management) Storage Refresh Direct alignment with banks cost reduction strategies, eliminating 30-50% IT costs and risk Eliminates redundant software licenses and processes Compliance challenges with enforcing data retention/deletion policies, governance & long term data access for audit and discovery Accelerating business transformation IT cost reduction and standardization programs Data center review and rationalization Legacy systems decommissioning (>5 apps) IT struggling with data growth and replication Significant & Fast ROI (4-months) $5m legacy storage savings in one year WHY EMC: AppDecom/EIA from EMC & our partners, is differentiated by: Unified archive and attractive pricing policy Rapid deployment of modernization rollout Expert implementation, easy access to previously isolated/ inaccessible data Extract value from unified data for informed decision making and compliance KEY WINS: EMC CONFIDENTIAL INTERNAL USE ONLY 23
SOLUTON Loan Automation Eliminates lengthy, error prone paper driven processes by uniting and automating content, process and collaboration - streamlining operations and service delivery and ensuring quality controls to lending operations (back office and servicing) for retail and commercial banks WHY NOW: FACTS: BENEFITS: The cost to produce any loan has risen significantly over the past five years When operating expenses increase and gain on sale revenue decreases, the combination is a massive loss of overall profitability All loan types When operating expenses increase and gain on sale revenue decreases, the combination is a massive loss of overall profitability We have the end-to-end solution. Potential savings of over 20% per loan Reduction in loan cycle time of over 50% Most enterprises have multiple fulfillment methodologies depending on LOB and product. According to the Mortgage Banking Association (MBA), the cost to produce a residential loan has increased by 144% in the past five years Current solutions focus on 1 or 2 segments of fulfillment such as packaging and delivery only. Fit for - Top Tier Banks, Credit Unions, Mortgage Originators, CUSO s, BPO s, Loan Servicing Aggregators As per the MBA, the average cost to produce a residential loan is $5,163 WHY EMC: Loan Automation from EMC & our partners is differentiated by: Partner domain and process management expertise Works in conjunction with existing system of record Creates one environment for multiple LOBs OnDemand & cloud-based solution options KEY WINS: EMC CONFIDENTIAL INTERNAL USE ONLY 24
SOLUTON Digital Mailroom A rules based, automated processing solution to digitally capture, classify, index, and electronically distribute physical and electronic documents across the enterprise providing better customers service, revenue generation, and cost reductions, and compliance across the enterprise WHY NOW: FACTS: Customer Service, Revenue Generation, and Cost Reduction are all impacted by effective document capture A typical firm loses 7.5% of all documents Consolidating multiple sources of data entering FSI firms, SMS, Paper, Mobile, Web, email, phone, etc. Two-thirds of organizations believe that a digital mailroom is important to the success of the organization; 22% regard it as critical Paper volumes are increasing by as much as 8% per year A typical firm misfiles an additional 3% of all documents Lack of proper Underwriting and Claims file documentation is consistently in the Top 10 critical Market Conduct exam results BENEFITS: WHY EMC: Businesses spend almost $500B annually turning documents into useful data to run their businesses Enterprises typically see an ROI of 12 to 18 months $20 in labor to file one document Digital Mailroom from EMC & our partners, is differentiated by: Reducing mailroom float and more quickly having access to incoming mail Capture documents at their source eliminating transport/mail time Scale from departmental to enterprise implementations Reduce compliance concerns $120 in labor to find a misfiled document $220 to reproduce a lost document $12,000 per year to maintain a single file cabinet A typical firm copies a document 19 times KEY WINS: EMC CONFIDENTIAL INTERNAL USE ONLY 25
SOLUTON Information Governance Provides next-generation governance & compliance solution to address information risk by automatically collecting regulatory policies, analyzing policy risk and ensuring policy enforcement of information across the global enterprise. WHY NOW: FACTS: BENEFITS: Financial services organizations operate in a world of interrelated risks The number and size of regulatory fines are increasing Most financial services executives do not fully grasp the speed and complexity of the regulatory environmental changes Organizations are burdened with siloed information systems and obsolete records disposition policies Realize millions of dollars in annual savings Minimize fines & penalties Shrink search labor costs by up to 75% Information risk and compliance are two of the most pressing needs for this business segment According to the Wall Street Journal, over $125 billion of fines and penalties have been levied in the past five years Global organizations are more complicated and have exponentially increased risk factors Organizations simply do not know if they are creating the right policies and how they can deliver enterprise enforcement Reduce storage costs by up to 50% WHY EMC: Information Governance from EMC, is differentiated by: Unique offering- most complete end-to-end offering in the market SaaS SOLUTION - focused on regulatory governance Specialized REGULATORY DATA RESOURCE Sophisticated (AI)engine collects & monitors all regulatory data across the globe, 24/7 Policy review by GLOBAL COMPLIANCE EXPERTS DASHBOARD VIEW of compliance across the enterprise Ability to automate the enforcement of regulation across the records an organization holds KEY WINS: EMC CONFIDENTIAL INTERNAL USE ONLY 26
SOLUTON Recovery & Resolution Planning ( Living Wills ) Regulatory Reporting (XDMP) The Living Wills solution from Deloitte provides firms with complex technical content and assured delivery of financial management information as mandated by Recovery Plans covering how companies will run during a period of corporate or market stress; Resolution Plans covering the orderly close down of a failed business. WHY NOW: FACTS: Mindful of global risk, bank failures have prompted regulators to mandate production of plans Firms need to understand economic instability impacts RRP submissions July 2014 RRP applies to all G-20 states - all banks, deposit takers etc are affected annually Predicted RRP submission costs - $6.4M FI s must articulate their legal entity structures, business lines and supporting infrastructure, through document preparation and collation Significant costs, volume, resources (authors) and complexity of work with 1000 s of documents requiring management, audit and compliance Needs to be embedded in compliance departments, operations etc High dependency on investigation, analysis and retrieval of management information BENFITS: Cover all the project scope, annual revisions and complexity Single platform to deliver repeatable use cases WHY EMC: EMC solution and our partner can deliver: Leading market presence, reputation, CxO relationships and contacts Deep FSI domain business expertise Repeatable reporting standards EMC CONFIDENTIAL INTERNAL USE ONLY 27
SOLUTON Paperless Bank Paperless Bank eliminates dependency on costly error-prone distributed duplicated paper based operations. The proven electronic central Enterprise repository provides fast deployment of cost-effective paperless client-facing applications, capturing reusable data at source, digitizing, analyzing and archiving with enhanced client communications for true competitive advantage. WHY NOW: Fragmentation inconsistent multiple standalone data silos with disparate compliance, retention policy, usage or management process Paper Proliferation - misfiled, confused, incorrect, replicated growing paper volumes Information isolated from central or cloud based banking applications and mission critical systems. Poor customer experience with low retention rates as FI s search and process manual, inconsistent, outdated or compromised documents. FACTS: BENEFITS: Unified central repository Capture of trusted client data at source Digitizing and standardization of all documents Fast accessibility, storage, data reusability and retrieval across a modern efficient infrastructure Paper handling and production costs slashed by 88% Project payback of 64% delivered in 15 months Creating customer advantage: New loan processing cycle from 3 days to 30 minutes Faster account opening and loan processing, and client retention with reduced service time and cost Fast document processing and cost-effective accurate customer communications Faster Customer on-boarding with up-sell opportunities in NAO, digital mailroom, compliance and regulatory reporting WHY EMC: EMC & Partners solution is differentiated by: Expertise: with taxonomies and country models for fastest implementation A packaged standardized asset delivery platform with fast, accurate, trusted content for competitive advantage Business ready information, re-usable across applications, putting data to work Cost effective enhanced client retention KEY WINS: EMC CONFIDENTIAL INTERNAL USE ONLY 28
ECM from a business perspective 80% of document input is triggered by 80% of document output E2E Business Process Management Business Process / Business Application integration) Content Discovery Content Security (authentification / autorisation) Content Intelligence client channels / input channels / output client Post (paper) Document Workflow Management Post (paper) email (electronic) email (electronic) Dossier Management eform (web) Call (voice / sms) Content Capture Records Management Content Delivery eform (web) Call (voice / sms) Collaboration (various) Document Management Collaboration (various) ING Internal internal document flow information flow ING Content Management Framework ~ Business Flow (example) Content management framework business flow ICMF V0.97 (12-4-2011) ING Internal internal EMC CONFIDENTIAL INTERNAL USE ONLY 29 29
USE CASE FILE DISTRIBUTION TO MOBILE WORKFORCE Functional and line-of-business group in enterprises have content that needs to be distributed to large teams and kept up to date KEY CHALLENGES: SYNCPLICITY DIFFERENCE: KEY WINS: Current approaches using content management systems rely on users downloading the latest version of the file whenever they are notified that a new version exists. This results in users accessing outdated versions of content. Consumer file sharing systems are not optimized for large groups. If any one user deletes a file it is deleted for everyone. Read Only permissions protect against file changes Push Sync vs Access Only or User Download Automatic Offline Access IT is struggling with whether they can adopt any cloud product and keep content safe. Traditional ECM solutions are expensive to deploy to external users. Email is a non-productive way to share content. Remote wipe at user, device and folder level Store files in public cloud or on premise Unlimited number of free external users Documentum Connector EXAMPLES: LINE OF BUSINESS DEPARTMENTAL VERTICAL Securely distribute content to large groups and onto all their devices Utilize tablets more effectively for your mobile workforce Keep files up to date and avoid fines from non-compliance Reduce cost of expensive external ECM user licenses SALES: MARKETING: EXECUTIVE: R&D: Price lists Standard contracts RFP Responses Competitive overviews Sales collateral Common brand elements Graphics distribution Financial plans Board of Director packets M&A Development Books processes Roadmap documents Market/Product req s Design documents FINANCIAL BRIEFCASE: PHARMA: ENERGY : INSURANCE: Financial collateral Client financial docs Marketing collateral to remote sales teams Research sharing with CROs Research protocols Project group transmittals Field production accounting EPFM related content Design documents Marketing collateral and forms for remote Agents Remote submission of claims information EMC CONFIDENTIAL INTERNAL USE ONLY 30
USE CASE FTP REPLACEMENT (SHARE LARGE FILES) Users need to share and send large files inside and outside the organization, and existing solutions such as FTP are too complex for users and too expensive for IT to support KEY CHALLENGES: Users need to share large files inside and outside the organization FTP is complicated for users and can be unreliable FTP requires recipients to explicitly download each new file or revision (not automatic) IT involvement is required to create FTP sites Users are adopting consumer-cloud tools to bypass IT restrictions SYNCPLICITY DIFFERENCE: EXAMPLES: User-initiated folder sharing (self-service) Sync / Offline access Unlimited file size Large file transfer optimization IT INFRASTRUCTURE Reduce hardware costs of FTP Reduce FTP-related support costs Reduce end user dependency on consumer cloud solutions Reduce/eliminate cost of external ECM license Reduce user frustration with email limitations Send Secure Shared Links Email downloadable links Live links (always have the latest version) Password protection Restricted recipient policy Expiration dates IT control and reporting Usage tracking KEY WINS: EMC CONFIDENTIAL INTERNAL USE ONLY 31
QUESTIONS? EMC CONFIDENTIAL INTERNAL USE ONLY 32