How SAP is Driving Digital Reformation of Banking Operations
As per the recent analysis conducted by Bain & Company and SAP Value Management Center it has been estimated that banks can handle on average only 7% of products digitally from end to end. With this in mind, SAP has been continuously revamping its current technologies to gear up for the next generation of banking tools.
Recently, SAP launched the SAP launched the 9.0 version of the real-time platform for banking services. This version uses the SAP HANA® platform to have accurate and live data for better decision making. It streamlines the banking operations by conducting real-time analysis and creating new products better tailored to customer needs. The new age innovation cycle allow banks to create products in days rather than months. Overall, an increased customer satisfaction is experienced.
Being a market leader for Financial Accounting, ERP and CRM solutions, SAP is focussing on the needs of the specific customers. Banking technologies are getting revolutionized and some new players are turning on with some innovative approaches. CommonBond provides opportunity to deliver loans to low-risk students, other companies are offering fast title loans for quick cash and companies like OnDeck offers loans to small businesses without a long track record. Moreover, the traditional risk assessment techniques have gone for a makeover. New sources of data in underwriting, like whether an applicant keeps a consistent phone number is the new strategy.
Banking Services 9.0 – The Advantages Offered
Banks would be able to receive the following benefits:
- Secure a cross-entity view of customer data
- Achieve completely automated processing of data and generation of faster and accurate reports
- Establish a unified version of products with easily configurable packages
- Build innovative and flexible, relationship-based pricing models
- Overview of customer centric data points and a comprehensive analysis on customer inputs
- Integration of all types of data
- Managing a single platform for financial instruments (AFI), profitability analysis, credit risk management and liquidity risk management
- Smart AFI running on SAP HANA
- Accelerate database processing and deliver more intelligence
SAP HANA Enterprise – Delivering Seamless Banking on the Cloud
SAP® Customer Relationship Management (SAP CRM) and SAP ERP offerings were ported to the SAP HANA database. The new suite delivers the following modules:
• SAP Deposits Management for Banking application, Suite edition
• SAP Loans Management for Banking application, Suite edition
• SAP Collateral Management for Banking application, Suite edition
• SAP Reserve for Bad Debts for Banking application
• SAP Financial Customer Information Management for Banking package
• SAP Account Origination for Banking package
• SAP Leasing for Banking package
• General ledger connector for bank analyzer
• Multicurrency accounting
SAP Hana Enterprise cloud edition allows for the easy operation of the Banking services 9.0, thereby providing banks a seamless transition to the cloud.