1. Business/IT Alignment in
Corporate Banking
Service Oriented Architecture (SOA)
Business process management (BPM)
Gherda Stephens
November 2010

2. TOP IT SPENDING PRIORITIES
Recent research from CIO and IDG Research Services shows that companies
across industries have put customer experience technologies at the top of their
priority lists, and many companies say they plan to spend on these
technologies in the next 12 months
Exhibit 1

3. BUSINESS-CRITICAL DECISIONS
Recent survey by IDC Financial Insights noted that the sentiment among
clients is that digital services are very important in keeping them as clients
(>80%)
Exhibit 2:

4. “Banking is an IT game
– everything is around
IT Management
competence and IT
capability.”
Australian bank GM The combination of
SOA and BPM is the
transformational
technology platform
of the decade”
Belgian bank CIO

5. SOA and BPM to ensure Business/IT alignment in Corporate Banking
• At the heart of Business/IT alignment is the ability of IT
applications to support business strategy through business
processes
• Connecting current available application technologies to the
existing bank's legacy systems and to clients’ and/or partners’
systems must be a fundamental part of any bank’s business
strategy
• This is a recommendation to investigate SOA and BPM as a
possible solution to address the above
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6. COMMON FINDINGS FROM ANALYZING THE „AS-
IS‟ PROCESS
1. Difficult to predict with accuracy when an application or case will be
completed and how much effort / cost required
2. Current process dependent on experienced people
3. Hard to gather metrics on current performance
4. 80% of workload runs across 20% of department
5. Inconsistent approaches across different departments
6. No interdepartmental visibility of case work
7. Limited SLAs in existence and are largely unclear
8. No defined escalation paths
9. Systems are not integrated, have to manually transfer data

7. THE REQUIREMENTS GAP SYNDROME

8. Horisontal Maps of the Corporate Coverage Landscape
“How we do
business”
(Our Business How we do Business
Strategy
&Operating
Model) Who is accountability
Who is
accountable? New Business
(For each of the Origination/Deal Business Process What Support do we require
end-to-end Team Concept Owner for each
Business end-to-end
Processes) process
Business/IT alignment
Existing Client Business Process
What Support do Relationship Steering
we require? Management/ Committees for
(Business/IT Client-Centric ongoing
Product Management
Alignment) Approach Office (PMO)
management

9. IT APPLICATIONS TO SUPPORT BUSINESS STRATEGY
1. SOA is an approach to integrate IT resources to enable leveraging of
existing assets, while at the same time building an infrastructure that
can respond to new and emerging business challenges and deliver
new dynamic applications in a highly flexible manner
2. When it comes to information visibility and assurance, business
process management (BPM) protocols allow both the IT and
business sides to properly monitor bank transactions...
3. The combination of SOA and BPM is becoming the transformational
technology platform of the decade

10. THE OPPORTUNITIES
1. Connect & inter-operate various legacy systems giving Bankers
access to an enormous amount of data
2. Technology to help Bankers devise strategies and technology
solutions around the business-critical issue of client engagement
3. Localising and rectifying problems, rapidly, by having both a
holistic view of the process, and knowledge of what's happening
in the process at each step

11. Banking Examples of SOA
Payment Service, Charge Fee service Internet Banking
Registry and Repository: Find Stop
Business Process: Stop Payment
Security: Authenticate user
Manage and monitor
ESB: Routes to appropriate core system
Data Services Process Services
Business Logic: If Orchestration:
Customer_Status = Gold
Service_Fee = $8 else
Service_Fee = $20
Fee database DDA / Current Account

12. Example of BPM: Open New Checking
Account
Human Business Process Management (BPM)
Existing No Scan KYC Run ChexSystem Result
Customer? Information OK?
Yes
• Features of Human BPM:
– It involves human interaction (such as scanning
KYC information)
– It uses external processes such as Chex System.
– It can be used to standardize business processes
and reduce operational risk.

13. Service Oriented Architecture (SOA)
THE OPPORTUNITY
• Improve the efficiency with which we do business by breaking down the barriers between systems
and applications
• The key is a connected network of support systems, both across the organisation and across its
stakeholders
THE PROBLEM
• Incompatible IT systems necessitate manual interventions across system boundaries, resulting in
redundancy and errors
• The need to provide client-centric services across multiple products and channels whilst having to
meet an increasingly complex web of compliance & regulatory needs
THE SOLUTION
• SOA is an approach to integrating IT resources to enable leveraging of existing assets, while at
the same time building an infrastructure that can respond to new and emerging business
challenges and deliver new dynamic applications in a highly flexible manner
THE RESULT
• Microsoft and other service providers (next pages) have SOA offering that provides developers,
architects and IT professionals with the tools, technologies, framework and guidance for building
and maintaining SOA solutions
• Provides business users with personal productivity software that increase productivity and
optimising business processes
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14. Business process management (BPM)
THE OPPORTUNITY
• Reduce the risk of increased communication errors by eliminating highly fragmented
processes that require multiple handoffs
• Improving processes across BU boundaries can contribute enormously to efficiency
THE PROBLEM
• bank's Legacy systems that neither interoperate nor connect
• Internal line of business applications not integrated with client service systems
• Localising and rectifying problems—rapidly—is extremely difficult to do without both a holistic
view of the process, and knowledge of what's happening in the process at each step
THE SOLUTION
• Business process management (BPM) can help financial services organisations obtain the
needed visibility into their business processes.
THE RESULT
• Provides a graphical modelling environment
• Enables prototyping and simulation
• Automates the processes at runtime, plugging into existing IT systems (CRM, DMS etc.) and
providing work-queues for staff
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15. BUSINESS PROCESS MANAGEMENT (BPM) PLATFORMS IN
FINANCIAL SERVICES
Real business projects are being delivered
on BPM platforms today. They include trade
management, client reporting and the
process of bringing new business on board.
Who are the firms doing these projects, and
what are they actually achieving?
DERMOT MCCAULEY
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16. Singularity‟s Business Process Management Platform
At runtime, the system drives work among teams, supporting complex routing and
synchronizing manual activities
At the simplest level, tasks can be allocated to groups as well as individuals enabling
a team to work on completion of a set of activities
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17. Adobe‟s Business Process Management Platform
• Rapid development environment
• Automated document generation
•Service-oriented architecture
• XML-based data exchange
• Digital signatures
• Certified documents
• PDF forms
• Rules-driven engine
• BAM

18. Microsoft‟s Business Process Management Platform
• Allows businesses to expose its existing information assets as reusable
services
• These services can then be used to compose business transactions that
connect with these
services and
aggregate into higher
level business
processes, and to
compose user
interactions that can
be delivered to clients
and consumed using
their experience
channel of choice
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19. GEF‟s eXtreme Transaction Processing (XTP) Platform
• GEF delivers a rich development framework that may be used to develop rich
applications within a SOA Engineering paradigm
• Logging and tracing
Distributed Messaging
• Business Process
Flow Definition
• Business Process
Execution
• Management
Deployment
• Service Containment
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20. Create new applications from scratch or through reuse
• For financial institutions, finding ways to get more mileage out of
core applications,
• The leverage-and-extend entry point helps financial institutions build
flexible architectures and create new applications or services from
existing code or from scratch by taking advantage of industry
models or using a service-oriented architecture (SOA) approach.
• Using industry models and/or SOA can accelerate deployment of
new services, processes and user interfaces.
• Using an SOA enables financial institutions to create independent
services that can be used across platforms.
• The IBM Rational offering helps enable your teams to accelerate
your modelling, architect and assemble new business processes
from existing services, and rapidly build modern Web2.0 interfaces.
• The IBM Rational offering for leveraging and extending applications
can also help reduce costs on application development and delivery
time.
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21. Automated Client On-boarding
Clien CCG
t
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22. Automated Client On-boarding
THE OPPORTUNITY
• 75% of the total cross-sales that banks obtain from their clients occur in the first three months
• Potential to capture 90% of transactional banking wallet and 80% of investments
THE PROBLEM
• Client’s first impressions of their bank are shaped by the account opening process
• The process is manual and paper-intensive, making it difficult to focus on client acquisition, cross-
sell and retention.
THE SOLUTION
• Automation of the on-boarding process (i.e. Singularity’s Account Opening Accelerator)
• Combines an easy-to-use interface for Bankers with a state-of-the-art process integration engine
that weaves the workflow through the various back-office systems
• The Accelerator drives a fast, structured account opening process
THE RESULT
• 80% reduction in client on-boarding cycle time
• 40% increase in throughput capacity
• 90% reduction in client acquisition costs
• 50% reduction in failed transactions
• 50% reduction in management overhead
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24. Automated Account Opening

25. Case Management Connecting Systems,
People and Processes
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26. Five Essentials of the Case Management
Platform
1. Goal Management
Use CIB Goals to drive the Case
2. Empowerment of Case Participants
• ―extreme collaboration‖ by all
• ―active case management‖ for all
3. Adaptability in Case Execution
• Cases ―emerge‖ over time
• Cases ―change‖ unpredictably
• ―Jump back‖ or ―Step forward‖ or ―Re-do‖
4. Effective Availability of Information
• Data, documents, artefacts, etc
• Rapid orchestration of technologies
• Context-sensitive presentation
• Security-sensitive presentation
• Record retention & destruction
5. Enabling Continuous Improvement
• All participants contribute to re-design
• Built-in support for modeling, simulation, etc
• Mine case histories for improvement ideas
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27. 27

28. Singularity is a leading provider of business process management
solutions to the global financial services industry. From offices in
London, New York, Singapore, Ireland and India, they implement
measurable improvements in process performance for leading financial
institutions including JPMorgan, BNPParibas, Morgan Stanley,
INVESCO, M&G and UBS.
5th Floor, 101 Moorgate
London EC2M 6SL
United Kingdom
EMAIL: london@singularitylive.com
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29. Rapid Solution Development
THE OPPORTUNITY
• Development of client-centric solutions ahead of the competition
THE PROBLEM
• IT department under pressure to produce robust, working solutions in aggressive timeframes
• The accelerating pace of business change drives a corresponding requirement for rapid turn around of
IT change requests and the implementation of new solutions
THE SOLUTION
• Business Process Management (BPM) technology that automates the tedious and routine elements of
coding (i.e. Singularity’s BPM platform)*
• Using Singularity’s integrated development environment, IT developers work with Corporate Clients to
rapidly prototype a solution and then deliver a working system in dramatically reduced timeframes
• Auto-generates user interfaces, system integration and data integration code, enabling building of a
working prototype within hours
THE RESULT
• Reduces solution development times by up to 80% while keeping solutions aligned to client
requirements
• Facilitates ongoing changes to deployed solutions
www.singularity.co.uk
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30. Mobile Corporate Banking – Get In the Game
Christine Barry – Research Director, Aite Group
Laurie McCulley – Managing Director, Treasury Strategies
Rhys Jones – Chief Innovation Officer, Fundtech
Moderated by Rebecca Sausner – Editor-in-Chief, Bank Technology News
How will your bank respond to the demand for mobile corporate banking? Aite Group
research shows that 65% of treasury professionals are interested in these services,
and almost half are willing to pay extra for them. With the meteoric growth of tablet
computers like the iPad, treasury professionals will be demanding mobile services
that will provide them with up-to-the-minute bank data, enable them to take actions
like approve payments anytime anywhere, and receive alerts when accounts reach
defined thresholds.
Our panel of experts will help you understand the market, build a strategy, and get in
the game. Christine Barry will explain the state of the market and present her
research entitled “The Business Case for Offering Corporate Mobile Banking
Services”. Laurie McCully will explain the treasury professional’s point-of-view
focusing on their top needs and expected benefits. Rhys Jones will provide an
overview of Fundtech’s new mobile corporate banking platform Mobile ACCESSplus

31. Adobe LiveCycle Mobile ES2
LiveCycle Mobile ES2 allows organizations to extend LiveCycle workflows to mobile
devices including task approvals, content management, and data capture