Run Simple: How to (Net)work It Out in the Financial Services Sector
By Ernie Honey
GM, Service Portfolio Management
You may have noticed that SAP is talking a lot these days about how to Run Simple.
But what does Run Simple mean? It means that SAP wants to help companies overcome the challenge of complexity. Why? So that they can connect with more customers, innovate more effectively, and drive business growth. And if there’s an industry out there that could use a strong dose of Run Simple, I think a good candidate would be financial services.
Getting together ain’t easy
Here’s just one challenge facing financial services companies and their corporate customers: transaction complexity. The fact is, transactions between organizations are slow, expensive, and ever so complicated. Typically they require point-to-point hard-coding so that different systems can talk to one another and exchange financial data. And if changes need to be made – which is frequently the case – someone needs to do the recoding, which is slow and costly.
This high opportunity cost means that banks must dedicate tremendous resources to growing their customer base. Perhaps it’s not surprising then that the financial services industry is home to some of the biggest IT shops in the world. For corporates, the cost of switching banks and working with new ones is prohibitive – which often keeps them in a single banking relationship, even when better opportunities may exist. No one likes to feel stuck.
Changing the opportunity cost equation
One way in which SAP helps the financial services sector run more simply is with the SAP Financial Services Network – a cloud-based solution that removes hard-coding from the opportunity cost equation. It’s a financial network which facilitates transactions between banks and corporate customers, making it easier for network members to find and transact with one another.
The set-up involved to enable ERP systems to work together between corporates and banks is relatively quick. And once you’re up and running in the network, connecting is easier than ever before.
As a member of the SAP Financial Services Network, you get payment processing, centralized monitoring, and analytics that yield visibility into all transactions processed through the network. You also get the flexibility to add new customers quickly if you’re a bank – or to painlessly establish relationships with new banks if you’re a corporate.
To Run Simple is a good thing for the financial services sector and its corporate customers. See how SAP can help you get there with the SAP Financial Services Network. Learn more here.