Capgemini helps Swedbank implement Pegasystems technology to provide their client with Digital Customer Experience

1. SWEDBANK’S JOURNEY
TO BECOMING
THE BANK OF THE FUTURE
Fredrik Hovstadius Swedbank Head of Lending Transformation
Frank Almenning Swedbank Product Owner Credit Origination
Claes Timner Capgemini Engagement Manager
Stephan Kolarik Capgemini Delivery Executive

2. Presenters
2
Fredrik Hovstadius
Head of Lending Transformation
Swedbank
E-mail:
fredrik.hovstadius@swedbank.se
Stephan Kolarik
Delivery Executive
Capgemini
E-mail:
stephan.kolarik@capgemini.com
Frank Almenning
Product Owner
Swedbank
E-mail:
frank.almenning@swedbank.se
Claes Timner
Engagement Director
Capgemini
E-mail:
claes.timner@capgemini.com

3. Agenda
3
Introduction1
The Swedbank Lending Transformation Program2
Transformation roadmap3
Project set-up4
Delivery model5
Analysis and observations after go-live6
Q&A7

4. For Us at Swedbank, Sweden, Estonia, Latvia
and Lithuania Are Our Home Markets
4
16.2 million inhabitants
7.3 million private customers
651,000 corporate customers
382 branches
13,774 employees

5. Our Private Customers
5
Almost half of the population in our
home markets are Swedbank customers. Here
are a few of the things we help them with:
 Loans & mortgages
 Savings & investments
 Payment services
 Pension & insurance
 Private banking

6. Capgemini is Swedbank’s Partner for the
Digital Transformation of the Lending Business
6
The business value
of technology comes
from and through people
Together with Swedbank, we
create and deliver business
and technology solutions that
fit Swedbank’s needs and drive
the results Swedbank wants
Digital Customer
Experience
User Experience Collaborative
Business
Experience
Testing
Excellence
Transformation
Management

7. The strategic Business Objectives Behind
Swedbank’s Future Lending Process
7
Strategic Objectives
Customer Value
Cost Efficiency
IT Simplification
Other Long-term Objectives
 Improve customer experience
across products and services
 Same process and platform
independent of channel
 Create a bank-wide digital
backbone supporting our
future needs
 Achieve Process Excellence
Main Objectives
 Improve customer experience through
self-service and consistent quality
 Increase speed and agility in fulfilling
customer requests
 Create standard, Group-wide common
banking platforms
 Enable faster time-to-market for new
products and services
 Optimize lifecycle stages of
IT landscape
 Automate manual processes and
improve end-to-end processes while
reducing processing cost

8. The FLP Digitalization Roadmap 2020
Comprises Three Phases
8
Phase
Phase 1
Phase 2
Phase 3
Future Lending Platform (FLP) Program ObjectivesHigh-level Content
Group-enable and digitalize/
automate origination processes
Group-enable and digitalize/
automate servicing processes
Realize Group-level synergies
and efficiency
 Loan application process until final disbursement
 Implement digitalized / STP private consumer & mortgage loans
 Implement digitalized / STP corporate micro loan
 Improve corporate, SSE, SME, Midcorp, LC& I, and finance processes
 Digitalize high-volume servicing events for private and corporate loans
 Establish a Group-level collateral system
 Establish a Group-level account ledger
 Ensure flexibility in outsourced collections
Move Group Common IT-systems …
 To new Group-level platform (at end-of-life)
 Streamline business and IT processes between Baltics and Sweden
(non-customer facing)
 To decrease business and IT complexity
Embrace digital as a driver for cost efficiency and service excellence
2015 2016 2017 2018 2019 2020 2021 …
Phase 1
Phase 2
Phase 3

9. Phase 1 Quickly Delivers Results and
Establishes the Foundation of Digital Lending
9
2015 2016 2017 2018 2019 2020 2021 …
Release 1
Release 2
Release 3
Release 4
Release 5
Release 6
Release 7
Unsecured
Consumer Loans
Sales: Increase
Efficency: 100%
Private Mortgages
Sales: Keep market share
Efficency: 50%
Corporate
Sales:
Efficency:
Cost:
Corporate
Sales:
Efficency:
Cost:
SSE/SME Corporate
Finance Company
Sales: Increase
Efficency: 50%
Large Corporate
Decrease operational
risk and increase quality
240 000 /
year
260 000 /
year

10. FLP “One Team”:
a Truly Collaborative Business Experience™
Steering
Committee
Ref. group SIT BAT
Pega
Config
Pega
Integrations Mainframe
Internet
Bank
Apps
Digital LendingIntegrationsCOS Development
Business
Architecture
Project Management IT Project Management
Swedbank Business Capgemini Swedbank IT
Architecture
Middleware
Business Roll-out
TestTest
10

11. Transition Post Go-Live
Support
Release scope
finalization
In each release, parts of the functional scope are addressed in specific 4-week
cycles with iterative elaboration, construction and testing
Go-Live
Pega SmartBPM™ Helps Us to Combine
Best of Both – Traditional and Agile
11
 We replaced the SmartBPM
Inception phase with release
pre-study to align with
Swedbank’s methodology
 Objectives:
– Define the scope for
next release and finalize
architectural approaches
– Create estimates for all work
included in the release
– Define a project plan for
the next release
 In the Elaboration phase,
requirements and use cases
are made design-ready
 Main tasks:
– Conduct DCO sessions with
Pega technical & functional
architects, Business & IT SMEs
– Use case documentation
– Handover of agreed
requirements to development
and test
– Final sign-off of use cases
with business
 Iteratively build and unit test the
application in construction
 Show & tell sessions together
with Business/IT SMEs to obtain
early feedback
 Integration design & implementation
 Bi-weekly deployment of built
functionality to ST and SIT testing
 Final verification takes place in the
Transition phase, including:
– Final Integration testing
– Regression testing
– Performance testing
– Business acceptance test, BAT
 Common release testing
follows BAT to ensure alignment
with other deliveries in the same
bank-wide release
Current delivery cycle is 6-8 months with the aim to reduce it to 3-4 months

12. Main Challenges Faced –
and How We Have Mastered Them
12
Challenge
Mainframe Legacy
Other Initiatives
People Aspect
MitigationsDescription of Challenge
 Implicitly defined business logic
 Point-to-point integrations
 Different delivery teams
 Motivation of end-users to adapt to the
new system
 Bank-wide acceptance of requirements
and solution
 Sync with other initiatives ongoing
at Swedbank
 Consolidation of end-to-end requirements
 Alignment of time plans
 Mainframe systems turned into service providers
 Business logic extracted and managed on the
Pega process layer
 Legacy functionality isolated to complement the
new platform
 Representatives from different departments
included throughout the development cycle
 Program run as a bank initiative, not as a
standard buyer/seller set-up
 Continuous dependency mapping
 Sync around capabilities and requirements
already ensured during pre-study

13. Quick Facts on the
Lending Transformation Program
13
The Project, Release 1 delivery
82,000 hours
10 months
156 BR
200 use cases
1,000 test cases
47 integrations
In Production
6 sec
12.3 min
37.1 years
62 % male
75% stp
$ 12,000

14. Loan Application Swedbank
14

15. Our Team has Delivered –
Release 1 in Time and Budget!
15

16. Q&A
16
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