Oracle in the Financial Service Industry

FSI Industry Solutions

Christian Hartono Tanu
Sales Consultant
Oracle Fusion Middleware

1

Agenda

 Oracle in the FSI Industry
 Multi-Channel Banking
 Enabling Process Centric Financial Institution
 Payment Services Hub
 Real-Time Banking

2

INVESTMENT IN FINANCIAL SERVICES

3

ORACLE BUSINESS & CONSUMER BANKING COVERAGE
ALL USERS Customers Agents Partners White Label Staff

TOUCH POINTS Internet Mobile/PDA KIOSK Phone Branch Surface Mail ATM

Business Lending Retail Corporate Financing Broking Funds Treasury Asset Mgmt
Distribution Marketing Sales Origination Service
DISTRIBUTION Processing
PLATFORM
Infra Services Dashboard Alerts Workflow SLA Escalation Offers Personalization

CORPORTE ADMINISTRATION TRANSACTION PROCESSING
Deposits Wealth Management Lending Distribution Processing
Finance Letters of Credit & Bank
Term Deposits Profiling & Planning Portfolio Definition Loans Decisioning engine Foreign Exchange
Guarantees
Risk Target Savings Plan Scoring Collections
Asset Allocation Corporate Actions Money Markets Bills & Collections
Certificate of Deposits Mortgages Leasing
Compliance
Simulations Mutual Funds Swaps & FRAs Funds Transfer
Safe Deposit Box Revolving Loans Overdrafts
HR Performance
Order/ TXN Capture Securities Cash & Liquidity Management
Savings/ TXN Accounts Analysis
Loan Syndications & Project Loans
Procurement
Standing Orders Portfolio Administration & Valuation Impaired Assets Management Features & Options Nostro Reconciliation

SHARED Customer Master Entitlements Charges Pricing Limits

SERVICES Collateral Management Expense Processing Reports Payments Alerts & Notifications

SECURITY
Authentication Multi Factor Authentication One Time Password Access Control Single Sign On Identity Federation
SERVICES

4

ORACLE BUSINESS & CONSUMER BANKING COVERAGE
ALL USERS Customers Agents Partners White Label Staff

TOUCH POINTS Internet Mobile/PDA KIOSK Phone Branch Surface Mail ATM
Multi-Channel Banking
Business Lending Retail Corporate Financing Broking Funds Treasury Asset Mgmt
Distribution Marketing Sales Origination Service
DISTRIBUTION Processing
Process Centric Real Time Banking
PLATFORM
Infra Services Dashboard Alerts Workflow SLA Escalation Offers Personalization

CORPORTE ADMINISTRATION TRANSACTION PROCESSING
Deposits Wealth Management Lending Distribution Processing
Finance Letters of Credit & Bank
Term Deposits Profiling & Planning Portfolio Definition Loans Decisioning engine Foreign Exchange
Guarantees
Risk Target Savings Plan Scoring Collections
Asset Allocation Corporate Actions Money Markets Bills & Collections
Certificate of Deposits Mortgages Leasing
Compliance
Simulations Mutual Funds Swaps & FRAs Funds Transfer
Safe Deposit Box Revolving Loans Overdrafts
HR Performance
Order/ TXN Capture Securities Cash & Liquidity Management
Savings/ TXN Accounts Analysis
Loan Syndications & Project Loans
Procurement
Standing Orders Portfolio Administration & Valuation Impaired Assets Management Features & Options Nostro Reconciliation

SHARED Customer Master Entitlements Charges Pricing Limits

SERVICES Collateral Management Expense Processing Reports Payment Services Hub
Payments Alerts & Notifications

SECURITY
Authentication Multi Factor Authentication One Time Password Access Control Single Sign On Identity Federation
SERVICES

5

Agenda


6

CUSTOMER EXPERIENCE RATING AND VALUE FOR FSI
Financial services companies are in the middle of the pack, but the Improving the customer experience drives loyalty and boosts revenue
gap between leaders and laggards in banking has widened.

7

CUSTOMER EXPERIENCE – HOW CUSTOMER “WANT” TO INTERACT TODAY?

Research Insight Trade Support Manage

Buy Online View Portfolio
Web Comparison Site

Chat
Contact Research New
Center Opportunities
Place Order

Branch Visit Branch Office Local Branch /
Office Web
Browse Products
Kiosk & Services Initiate a Trade

Mobile Google Product Info
Device
Search
Email
eMail Confirm w/Rec

Facebook Share Experience on
Social Read Reviews Discuss Trade
Fan Club Twitter
With Community

© 2011 Oracle Corporation – Proprietary and Confidential 9 9

MULTI CHANNEL DELIVERY
CURRENT CHALLENGES
Silo channels and products
impede:
Customer
• Consistent customer experience
• Single view of customer information
• Flexibility to meet new customer needs
Branch Unsecure Corporate Individual Mobile
Website Internet Internet Banking  Reduced customer retention
Banking Banking
 Decreased wallet share
Hardwired  Reduced efficiency
ESB

Backend Banking Systems

10

Interact With Customers Seamlessly Across Channels
Vision for the Bank

Customer

Branch/ Mobile Banking
Unsecure Corp Internet Banking Internet Banking
Relationship
Website
Single View of Financial
Consistent customer
Institution
experience
Multi-channel delivery platform
Unified Platform for Consistent Customer Experience Across Channels
Common customer, product information
Single View
Of Customer
Increased opportunities
for revenue growth

Backend Banking Systems

11

MULTI CHANNEL CUSTOMER EXPERIENCE REFERENCE MODEL

Webcenter Suite

Business Process Management
Enterprise Rules

Service Bus
Data Integrator , Golden Gate

12
12

NAB Launches Online Direct Banking
Sets a New Benchmark for Customer Self-Service

COMPANY OVERVIEW
• Leading Australian bank with total assets of $657B FY 08 RESULTS
• Structured around regional banking and wealth management operations • Grew Bank’s Deposit base significantly
• International capital markets • Rolled out new Direct Banking application
• Institutional banking business
within a year
• Branch-free banking service that customers
CHALLENGES access via the Internet and an Australia-
• Legacy technology
• Lack of flexibility to support the new business model
based call centre
• Inability to launch new products in weeks • Focused on savings products
• Higher cost of operations • Leading player in the ‘Self-Service Banking’
space in Australia
APPROACH
• Offer direct banking on open, scalable platform ACCOLADES
• Phase II – Replace legacy application with Oracle Applications and Technology IT Wire Aug 06, 2009
NAB pioneers ‘five minute’ online bank
SOLUTIONS account
• Oracle Fusion Middleware

Copyright © 2011, Oracle. All rights reserved.
Oracle & [customer] Confidential

Business Requirements
Branchless Direct Banking
Business Requirements
Custom Build Member Registration, Account opening, Profile
Functionality Maintenance, Goal Tracking
•Public/Secure Content
Business Case: •Content Lifecycle (Publish, Workflow, Versioning,
Content Management
 Strategic transformation program including creating a New Online Security)

Banking Brand in Australia •Search

 Create a compelling market differentiator Marketing Integrate with CRM On Demand
Internet Banking and
 Complete online lifecycle - enabling prospecting to fulfillment to Web Apply Integrate with Flexcube, Card management, others
customer servicing •Calculators, Product Comparison Tools, Budgeting
 Create a unique customer experience which is difficult to replicate Web Tools Tools
•Money Market Tools
 Grow in tandem with current trends on emerging social networks
Web Community
and online communities (Facebook, Twitter, YouTube etc) (Collaboration) •Forums Setup & Management (Including Moderators)
 Assist customers to take informed financial investment decision •Blogging on Podcast, Video, Presentations
 Equipped with unmatched security to prevent online fraud or •RSS (Really Simple Syndication)
hacking
Security and User •Authentication & Provisioning with Single Sign On
 Establish itself as the PREFERRED Online Bank in ANZ region Management
•Role based Authorization
•Multi Factor Authentication

•Branding / Personalization
General System
Requirement •Localization (Multilingual, Multi-Brand, Multi-Country)
•Google Analytics


Solution Overview

Oracle FLEXCUBE
Core / Internet Banking Platform

Identity / Access Management
Oracle IdM Suite Veda / Edentity

Online KYC Services
Bank Site
Social Media Features WebCenter
(Blogs/Forums) Services
Facebook/Twitter/
iGoogle/YouTube
Leading Social Media Sites

CRM CRM on Demand

Web Analytics

Site Search

Content Management Oracle Content
Management


Interactive Banking

1
A landing page is optimised for a new
visitor

3 Potential information of is suggested to the visitor the
Information of value value is recommended to
visitor

The site promotes access to information channels to aid the
new visitor based on ‘discovery of intent’
new visitor based on ‘discovery of visitor intent’
2

4
Interaction channel
Interaction or collaboration
suggestions are promoted
channel suggestions are
promoted

This information is considered proprietary and may not be copied, distributed, modified or re-used for any purpose without the express permission of Oracle

Transparency


Agenda



FSI is a Process-Driven Industry

Desired Customer-Centric Process Characteristics:
• Shared across channels
• Integrated across functional silos
• Personalized for individual customer
Branch ATM/Kiosk Call Center Internet Mobile • Agile, adaptable to business change
• Monitored to eliminate bottlenecks
Common Processes Orchestration • Analyzed for performance measurement
Hardwired Integration, Manual Processes • Enables optimal end-to-end execution
Top Priority Processes In Banking
• Loan Origination
Deposits Credit & Investments Customer • Simplify Account
Lending Master Opening/Customer On boarding
• Trade Finance
• Service Management
• Policy Underwriting
• Claims Processing


What does OFM Offer
Fill the Gaps:- Innovate and Wrap your composite systems

• “Pre-defined” Process Accelerators Best Practices based Business Process Model
• Document Capture & Imaging
• All types of Document formats
• Managing Entire Lifecycle of All Documents
• Reduce Manual Data Entry using OCR / OFR
Systems
People
• Powerful Workflow for Processing
• Consistent processes, strong quality control
• Handling Exceptions & Escalations
• Improve cycle times whilst managing SLAs
• Monitoring Real time
• Business Rules Engine
Decisions Documents
• Separate the Business Logic from Applications
Events
• Rapid Execution of ever changing business policies & procedures
• Multi-Channel capability
• Ability to Apply and Enquire from any channels
• Transparency, Consistency , Single view across multiple systems


Accelerators to Fast-Track process design
Reference models with relevant meta-data for process automation

Automated tasks
 Service integration to IT applications
 Adapters and Connectors to end-points

Business rules
 Hot deployable changes
 Rules driven routing

Content Integration
 Document Processing
Human Task
 Scanned Images
 Worklist of user or group
 Calendar, delegation, escalation Track processes
 Sharing notes & documents  Gather process KPIs

Process Intelligence
 Single interface between people and processes
 BAM dashboards
 Ties tasks, alerts, discussions, documents, communities, intelligence in context of  Alerts
process

Initiation Compliance Credit Scoring Fulfillment


Example: Loan Origination Process Accelerator
Business Process Overview

Identity &
Application Document Credit Risk Assessment & Account Creation &
Background Pre-Closing
Capture Collection Verification Underwriting Disbursement
(KYC)

Best practice BPM-driven solution to enable end-to-end automation of the Loan Origination Process for a financial
institution (Retail Banking) – from the creation of the financial application to the disbursement of the loan amount

Strategic Goals Process Advantages
• Increase new business • Significantly cut down loan approval time
• Reduce operational costs • Provide agility, visibility and audit capabilities
• Comply with regulations and reduce risk • Reduce use of paper based documents
• Enhance customer satisfaction • Manage business process as shared asset across LOB and
• Be more competitive in the Marketplace channels
• Build Multi-channel delivery capabilities • Provide a consistent, personalized customer experience
• Comply with Know Your Customer (KYC)


Loan Origination Process Accelerator
Extensible Business Process
Monitor operational performance via real time
dashboards
Process Performance
Individual Performance
SLA adherence
Optimization
Reporting
Audit Trail

• Best practice, process driven solution
• Multi-channel enabled
• Centralized document management
• Integration with internal systems & external services
• Business Rule driven process flow

Sales Channels Loan Processing Compliance Underwriting Contracts & Legal Loan Funding

Product Customer Content Risk Contracts Loans
Service Service


Taishin Bank Taiwan
Save US$1.58 Million a Year by Automating Image Process Management
Integrated Imaging and Business Process Management (IPMS)

COMPANY OVERVIEW “Slashing costs and boosting productivity were our two primary goals. By using Oracle Fusion
Middleware products to integrate six image process management systems (Branch
• Current deployed = 105 branches across Taiwan, 3.6 Million Customer Teller, CIF, Daily settlement, eLoans, Trade Finance for NTD Trade Finance for Foreign
with 11000 Transaction/day. Currencies) , we have reduced paper use, cut printing and storage costs, and restructured our
workflows for greater efficiency.” – Josephine Yang, CIO, Taishin Bank
CHALLENGES/OPPORTUNITIES

• Paperless document management SOLUTIONS
•Save document storage and transfer cost
• Oracle BPM , Oracle Services Bus, Business Activity Monitoring, Oracle Security Model,
•Reduce rate of lost of Loan Document
•Increase efficiency in document search • Oracle Universal Content Manager (UCM), WebCenter Portal
• Business Process Re-engineering for highest possible ROI • Oracle 10g Database, WebLogic 10MP1
•Simplified and standardize documents RESULT
•Centralize document management • Taishin Bank to Save US$1.54 Million a Year by Automating the Process Management
•Reduce processing time • Asian Banker Award for the Best Branch Automation and Networking for Increase time for customer
• Integrated platform leverage on SOA & BPM service
•Avoid duplicate IT investment • Robust infrastructure for future extension with legacy integration to customer CIF, Corebanking
•Build expandable operating platform system and 3rd party gateway and switches
•Risk management • Single Source of retention policies for all contents, improve efficiency, productivity and reduce cost
• Better customer insight , risk mitigation and better customer service
• Fast time to market for new product and services offering


Integrated IPMS (System architecture)
Front Office Mid Office Back Office

End User Process/Image Management Interface Backend System
Services Components
BPM UCM

Web Service
Customer Service Core Banking
Scan

OCR Image Remittance

BAM Mortgage valuation
Branches
Electronic transcript
IPMS
App
International
Task List (e.g eLoans) ESB
Settlements
Corporate banking
FICO, Credit Scoring
IPMS
Common Business Object
etc..
Model

Personal Finance Image Viewer International
Telegram Exchange

Consistent Customer Experience Across Channels


Improve Efficiency and Risk Mitigation

Normal Branch Operations Center

Prior IPMS
Operator Secondary Operator Operator Supervisor
Paper Paper Image Paper

Physical paper
submission Reporting
System
Check Review Scan Printing Trade Enforcement Review

Ability to cut down the competent
review to improve efficiency

IPMS Go-Live

Operator Supervisor Operator Supervisor
Image Image Image

IPMS IPMS IPMS
Initiation Trade Enforcement Review


Process Centric Banking Approach
Mortgage Loan- Document & Workflow

1. Customer submits loan form & docs
thru different channels

1. Scan, index & create Loans Applications with
signature
2. Store in Centralized CM

Oracle UCM 1. OCR recognizes Layout, Text & Barcode
2. Real time trigger of Business Process on BPM
Suite

Core & Legacy Applications 1. SOA allows seamless integration to Legacy & LOB applications
2. Annotate / Mark secrecy
3. Business Rules to review decisions (Big or small Loans)
4. Sign and stamp, scan and send it to customer
5. BAM to monitor entire process flow, define SLAs and KPIs

Dashboard
Oracle BAM


Key Values using BPM 11g
Better Process Visibility

Partial Home Loan Process


Current Situation Why Bank needs to act now

• Impact on Market Position and Competitiveness
- Changes in Fee Structure , Lower Margins
- New Companies going to Mature Markets with LOW Cost Structure
- Specialized New Players (e.g. PayPal, Google)
- Lack of Flexibility impacting Time-To-Market
- Cost Per Transaction – Critical Ever
• Increasing Globalization and stringent (costly!) Regulatory Environment
• Huge Opportunity in Emerging Markets (APAC, E7, Africa) through
Financial Inclusion initiatives
• Opportunity to capture share of wallet in matured APAC market


Typical Bank Architecture
Before Payment Hub


Bank Architecture
With Payment Hub


ORACLE Payment Services Hub
Reference Architecture

Bank User Operations Administrator Developer

User Frontend Operations Dashboard Admin UI Developer Toolset

ORACLE Payment Processor
Retail Payment Back-end, Billers /
Channel / Platforms Platforms
Corporate Connector Modules
Retail Connector Modules Reusable Functional Modules

Standards based back-end/Billers Connectivity
Bank Branch Back Office
Sequencing/
Standards based Channel Connectivity

Audit / Tracking Rule Validation SWIFT MT/MX
Internet Payment Prioritization
Internet
Gateway SWIFT
Routing & Switching

Queuing Dups check Routing
Call Center
RTGS
Acquiring Product RTGS
Phone Banking
Domestic Payment
Network
ATM Liquidity Check Compliance Check Settlement
IVR + Mobile ERP Interfaces
POS Banking Product
Local Clearing
Limits Accounting Reconciliation
Clearing/Settlement
Core Systems
ACH / EFT ACH / EFT
FX Rates/Currency Account Acknowledg-ement
Management ESB

Fraudulent Check Payment Risk Analyzer Monitoring & Reporting

Transaction Database Exception Management Trending & Analytics


Connectivity
Open standard and adapter-based approach

• High-speed Intermediary
• Connect once; loosely coupled
• Promote service re-use
• Unlimited scalability
• Visibility into messages PHP
• Any to any connectivity
• HTTP/SOAP
• Web services
Connectivity Mediator
• Proprietary Messaging
• JMS/MQ/EJB/RMI
• FTP/SFTP/File
• SMTP Data base
Siebel Others
• Native Database Lookup
• Interoperability
• .NET, Tibco EMS, IBM MQ, IBM WebSphere,
Apache Axis, B2B Interchange, iWay 5.5 adapters


The ORACLE PSH STP++
Advanced Patterns Fast in-memory lookups Asynchronous checking
Matching using CEP enabled through distributed of limits depending on
techniques caching technology configurable Business
Rules

Fraud Analyzer Duplicate Checking Limits Check

Source Input Message Enrichment & Clearing & Target Output
Audit Routing
Manager Validation Standardization Settlement Manager

Monitoring & Exception Compliance
Reporting Management Check

Continuous status monitoring
and update to enable real-time Provision for Manual Checkpoint for violations
Dashboard for KPI tracking intervention for Managing against predefined policy
Cases of unhandled situations guidelines


Biller On-Boarding
Steps to ensure a smooth GO-Live! Service
automation

calls
Payment Hub Partner

1 2 3
Directory

Biller Representative Review and Approval by Infrastructure setup process
inserts
Enters Details via Self- Bank’s Biller automation triggers on the
Service Portal Integration Team Bank Side

registration approval updates 4

Connectivity infrastructure
testing / SLA results agreed
BPM
Payment Hub & signed off with Biller
Portal
updates

updates
6 5

Submit Biller Readiness
Pilot run certified with existing
Status Report. Propose
Payment processes by Biller
Business for UAT &
Integration Team
Launch date.


Biller On-Boarding
Screenshot sample


Payment – Consumer to Biller process
E.g. typical payment process flow

Billers

Payment
4

1 3
Payment Gateway
Pay Bill Bal Inquiry
Customer payment via
Bank channels 7 5
Payment status Process flow Debit Acc Core Banking
Credit Biller Acc
Business rule

Trx handling 2

6


BULK PAYMENT SUPPORT
SCREENSHOT SAMPLE – BULK PAYMENT VIA INTERNET BANKING E-CHANNEL

One source account

Multiple billers at once


TRANSACTION STATUS TRACKING & DEEP DIVE
SCREENSHOT SAMPLE


Latency Analysis On Every Steps Of Transactions
Pro-active preventive action for any potential problems

Web Page

Latency Analysis

43

Transaction Visibility by SLAs
Measure Responsiveness, Availability, Faults & Throughput (RAFT)

Performance Metrics
Response time
Availability
Throughput
Etc.

Service
Level
Agreements Monitor against
baselines and
thresholds
Historical
Reporting

End-to-End • Measure agreements in real time
• Enables preventative and corrective actions
App Server

Payment Hub Service Bus

44

Real Time Dashboards For Business Users - Customizable
•Business Activity Tracking
•Real time updating of data
•Ability to dynamic change the routing of
certain workload heavy processes to other
centers.


What is Real Time Event Processing?
Bank’s operations & customers generate
millions of events per day

Business Decision
Oracle Event Call Centre Agent Offers the
Processor Customer a Jewelery Insurance
Policy Right after her Diamond
Purchase. Proactively.

Offer
Business Events Feed
Business Events Sources Business Rules
e.g. -Large Spending at Jewelery Merchant
-High amount spent on Credit Card at a Jewelery merchant - High Net Worth Customer
outlet
-Existing Insurance Customer Offer Jewelery Insurance
-High Net Worth (Bank) Customer Channels = Outbound(Call Centre/SMS)


Real Time Event Processing in Banking
• Offer Management
Sales & Marketing • Inbound Marketing
• Outbound Marketing

• Fraud Detection
Risk & Control • Dynamic Controls Enforcement

Customer • Drive cross-channel ONLINE customer interaction
• Drive cross-channel OFFLINE customer interaction
Experience
• Adjust Processing of Service Delivery
Service Delivery • Re-Prioritize


Real Time Marketing – What Happens TODAY?

“Sorry. Not interested.”

• Today we cannot guarantee that the
Customer receives a promotion offer when he
ATM Web Email Mobile Branch Call Center is ‘most’ interested.
• Result - High Rate of offer rejection
Customer Touch-points

• CRM systems capture customer
cases & interactions

• Information stored in central
repository.

• Data Mining Tools analyze data and
apply rules to execute marketing
campaigns.

• Interaction based on Post-event &
Mortgage Offer Card Mgmt Wealth Insurance Past-data
Mortgage Credit Card Offer Deposit Insurance
System Mgmt Offer

Back end Systems- Silo Automation, triggered without “any contexual intelligence”


Why such “High Rejection Rate”?

Wrong Customer Wrong Offer
Her mobile banking app receives
Receive a promotion message a real-time offer to get 70%
about discount on “Whitening discount on fund purchase
mask”.
How to change the Game?
Mary just paid for the minimum
John is a man (50 years old) RIGHT Time payment of her credit card

RIGHT Channeldon’t have the
I
XYZ%#@#%... money!
RIGHT Offer
RIGHT Customer
Wrong Product Wrong Timing
RIGHT Price The call center agent cross-sell
The website prompts up the her about value-added
“Segment of 1”
promotion of “Free Blackberry
for upgrading to Premier Plan”
services

Mike loves iPhone, iPad and iPod. Next-Best-Action is THE WAY about
Kate makes a compliant
the charging fee

Don’t boring me
Not attractive at
all

© 2008 Oracle Corporation – Proprietary and Confidential Oracle & [customer] Confidential

Real Time Marketing – Architectural Components
Reporting Analytics Real-time Campaign Business Processes
(Oracle BI) (Oracle BAM) Dashboard (Webcenter) (Oracle BPM)

(Oracle Data Integrator & Golden gate)
Correlated, Analyzed, Contextual Events

Data Integration & Replication
Inference Campaign
Access Management
(Oracle IDM Suite)

Real-time ODS Semantic
Rules

Engine Offer Metadata Management
Model

(DB) DB LiveList Repository Events
State
Model

(Oracle CEP) (Webcenter)

Oracle Service Bus

Oracle Fusion Middleware Adapters

POS CallCenter Web Email Retek
ATM Mobile Branch

Complete Integrated Best-of-breed Hot-pluggable


What is Complex Event Processing?
Lightweight, Low Latency, Extreme High Throughput, and Java-based Application
Container
Event Sources SELECT S.stock, AVG(price)
FROM SOME_STREAM S
[range by 10 slide by 5]
WHERE S.stock = ‘ORCL’
GROUP BY S.stock
Database Event Distribution Network

CEP Processor “I want to look at 10 seconds
Applications worth of data”
In-Memory Data Grid
“I want a result generated every 5
seconds”
Messaging
Lightweight OSGI Server

RFID
Unmatched Performance and Scalability
1 Million Events Processed / sec (16 Intel Core)
<1 Millisecond Latency for 99% Events


Real-Time Marketing - How it works!
Rules get triggered based on rule agenda
(created in real time) that evaluate the
Bank’s Real-time SOA Infrastructure situation based on the contextual
Bank’s SOA Layer seamlessly
(Channels & Event Sources)
passes a real-time transaction information gathered from different
Call Ctr Card event captured at the event information sources as well as the event
ATM IB source
Mobile Branch (or a customer facing channel)
Bank SOA
Services Oracle CEP Engine loads knowledge
(contextual data) about the customer,
Single, Redundant Distributed its preferences, behavior patterns,
Cache (in-memory +
Personalized Offer available channels, etc. from Bank’s
persistence)
Event results in Real- Customer existing IT systems into its distributed
Demographics
time, moments after cache
the Trigger occurred

Channel Specific Metadata
CEP
Historical
(e.g. Agent Skillset mapping, Rules Information
SMS/MMS/Email Store

preference, etc)
Engine
Business Analysts define
Marketing Campaigns and
Business Rules for Real-Time
Business Rules Engine
Calculate score &
generate offer based on
Campaign
all the available Definitions
information


The Road Ahead
“To CONVERT Every Touch Point Contact into
a SELLING OPPORTUNITY”
Selling the Right Product(s) at the Right Time
With Real-Time Reaction(s) to Business Events

Credit Card Purchase of Airline Ticket Up sell Travel Insurance via Call Centre at 1pm Same Day
at 1230pm Today via Agent/Airlines

Change of Home Address at Call Centre Up sell New Home Insurance/Personal Loans at Call
Centre at the Same Time

IPO Subscription of Certain Amount Up sell to Turn the Unallocated Amt to Fix Deposit if, Say,
More than > S$200K

Large Fund Inflow/Outflow in Transactional Accounts For Large Fund Outflow, Contact Customer. For Large Fund
Inflow, Up sell Investment Products or TD

All Other Possible Touch Points Triggers/Events Others Cross/Up Selling


Some other examples…
Events Promotion / Actions
Customer use Credit Card in Pavilion mall Send SMS Promotion

“Dine at Crystal Jade on 6/F of Pavilion Mall, show this SMS to get 20%
off.”

Increase Credit Card Usage
Customer buy Air Ticket / Tour Package Send Email DM Promotion (hosted by WebCenter site)
using credit card
One Time Travel Insurance, 10% off
One Year Travel Insurance, 20% off

Increase Credit Card Usage and Cross Sell Insurance
Customer bank account received a large Make Outbound Call
sum of money
Invite Customer To Do A Financial Planning and recommend
Investment Funds

Earn Mutual Fund Subscription / Management Fee


Fraud Detection - Challenges
• To be able to identify various types of fraud patterns within a continuous event stream and
subsequently filter out all potential threats before they can cause damage
• To scan through ALL events – irrespective of their source/authenticity
• Complement the internal systems/processes with an agile Expert System based on intelligent
rules
• To be able to fire preventive/corrective actions in parallel as defined by Business once a threat is
identified

To Implement a Complete Fraud Management Solution to Cost Effectively and Intelligently
Filter All Suspicious Events coming from Various Sources by tapping them close to the
Source with the help of Right Rules in Real-Time


Banking Fraud
What are the various types of frauds, most vulnerable areas of attack and risk of exposure for banks!

Banking Fraud

Insider Fraud Consumer Fraud

Identity Money Stolen
Accounts Payments Collection Loan/Credit Funds Transfer Rogue Trading “Inspector” fraud ATM deposits Check kiting
Theft/Spoofing Laundering Cards/Accts

Fictitious Bad debt write- Forged Dubious Personal Redirection/Acco Empty deposit
Stolen DD Forged Invoice Bill discounts Agency reporting Large amount Frequent Credentials BIN attack Skimming
Naming off documents approval details/ID proof unt takeover env

Process
gaps

Analytics &
Trending Fraud
Events
based on “sweet camouflage
historical spot”
data

Procedural
rules

Source: http://www.treasuryandrisk.com/2011/02/01/press-release-uk-report-doubles-estimates-of-fraud-loss


Real-time Fraud Management
Why it requires a combination of multiple technologies?

Millions of events

Real-time
Analytics
Multiple rules firing
Complex
Events simultaneously Event
Driven
Processing
Low latency Processing

requirement Business
Process
Management
Real-time Potential Event
Analytics Fraud Taxonomy

Filtered Events for Declarative
Rules
subsequent processing


Architectural Components
Analytics
Reporting Case Management BPM
(Oracle BAM)

Correlated, Analyzed, Contextual Events

Distributed Inference Rules Metadata
Event Driven Semantic
Model
Rules

Cache DB
Engine Repo Repository Architecture Events
State
Model
Enterprise
Ancillary Monitoring
Services &
Management

Oracle Service Bus

Oracle Fusion Middleware Adapters

POS CallCenter Web Email Retek
ATM Mobile Branch

Complete Integrated Best-of-breed Hot-pluggable


Oracle in the Financial Service Industry

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