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Financial Services

Fintech APRO Cloud Solutions Delivers Embedded Treasury Banking to ERP Cloud Customers on Oracle Autonomous Cloud

Blog co-authored with Geert Mouwen from APRO Software Solutions One of the concerns of companies considering a move to Oracle ERP Cloud is their existing bank treasury connectivity. Many companies have gone through extensive processes with their banks building and testing formats and setting up connectivity, often resulting in completely customized solutions. These projects have taken a lot of time, money and effort to complete and to maintain. Understandably companies are not very eager going through that experience again. On the other side, global transaction banks today are under heavy pressure to provide superior experience to their customers in the areas of executing global payment transactions. However, many banks and the corresponding corporate treasury organizations are now settling with inferior customized solutions that are taking too long to implement and do not provide the true straight through processing experience. Due to the high number of customizations offering new services to existing clients has become a difficult process. One of the big benefits of moving your ERP to Oracle Cloud is the access to a broad range of third-party apps through the Oracle Marketplace. Apps that allow for easy access to the latest fintech products and services. Also, banks are also moving ahead, and more and more banks are seen expanding their services to be directly accessible through API’s. Embedding the Bank in Oracle ERP with Oracle Fintech APRO Cloud Solutions: What if there is a treasury banking app on the Oracle Cloud Marketplace that acts as a global universal bank ERP payments and treasury adaptor? On one side you plug directly into your customers ERP, and on the other side you connect to your own internal banking systems. The plugin has a global format library available that has the latest bank formats and transmission protocols available for both global and local banks. As soon as your banks API’s become available this app will allow your customers to utilize your new API services by just upgrading the app, giving your clients the option to use your services without the need for any development on their side. Banks today can deliver this global payment solution for their ERP customers by simply leveraging the APRO Cloud Solutions Banking Gateway application and do a one click deployment on Oracle Cloud. Any ERP customer globally can instantly connect to their treasury bank with this offering enabling them to improve their operational efficiencies, improve their cash flows by calling real time banking APIs and gain instant insight into payments status. APRO Cloud Solutions Banking Gateway does just that. It is created by a highly specialized company that builds bank connectivity and formats for Oracle for over 20 years. APRO is using Oracle Java Cloud & Oracle Autonomous Database technology and their Banking Gateway solution can be found on the Oracle Cloud Marketplace since 2016. With Oracle Cloud banks can be assured of the security, scalability and performance of the solution and can be confident that the solution complies to global banking regulatory compliance requirements. If your ERP connectivity is a concern for migration to Oracle ERP Cloud, it might be worth checking out what this application can do. For banks looking to deliver treasury banking and payments capabilities integrated seamlessly to Oracle ERP Cloud , APRO Cloud Solutions Banking Gateway provides the banking experience embedded into Oracle ERP systems. This solution delivers banking experience to where their customer conduct business, drastically improve customer experience and remove operational efficiencies in payments and treasury banking. APRO Cloud Solutions Banking Gateway can be found on Oracle Cloud Marketplace here. Learn more about the Banking Gateway solution here.

Blog co-authored with Geert Mouwen from APRO Software Solutions One of the concerns of companies considering a move to Oracle ERP Cloud is their existing bank treasury connectivity. Many companies have...

Financial Services

The Future of Financial Services: 3 Technologies Poised to Change Your Experience

If you think about it, financial services have traditionally been disconnected from their customers’ goals. For instance, when we want to buy a vehicle or house, or purchase inventory for a manufacturing process, we typically begin by researching and evaluating our options, then making a purchase decision. Only then do we look at the financial services necessary to complete the transaction. But financial services companies today are already well on their way to changing this experience, and three technologies are key to this transformation: APIs, adaptive intelligence (AI)/machine learning, and blockchain. These key strategies involve leveraging large troughs of data so banks can become an integral part of the consumers’ journey, engaging intelligently with customers through contextual offers and advice, and connecting customers and the services they need. The Integral Bank: becoming integral to customers’ lives by using APIs to embed the bank in every customer interaction One key opportunity that financial services companies have with APIs is to bring the banking experience directly to the customer where a decision is happening with banking-as-a-service-enabled strategies. One example of this is a recent partnership announcement between Citi and big-tech Google. Using APIs to expose its banking services, Citi has enabled Google to offer these financial services as the customer is searching for services and offers on the web. In the future, customers will be able to search for a vacation home or airline travel, and Google will be able to integrate seamless and contextual banking services into the customer flow. Then a bank like Citi will power the transactions, be it on-point lending or embedded payments, to complete transactions without users ever leaving their journey. By exposing their services so they can be embedded in customers’ daily experiences, banks can increase their reach and help provide contextual services to customers at the point of the transaction.   This example of delivering banking ubiquitously is now being explored by many leading banks who are opening up their banking services as APIs and embedding the bank experience directly where the user conducts everyday transactions, rather than the consumer having to come to the bank. This approach also enables banking to be distributed by third-party fintechs or big techs without needing to take on the regulatory burden of becoming a bank. On the other side of the spectrum, banks can assemble third-party services that they typically don’t offer and, essentially, become a one-stop financial services shop for their customers through an approach called banking-as-a-platform. Starling Bank in the UK is an example of a bank using APIs to bring all these services together to deliver a seamless experience to its customers – an experience Starling calls the Marketplace. The bank describes the Marketplace as an “ecosystem of financial products” – both consumer and business customers can access a number of digital financial services through their Starling accounts, including mortgages, pension investment management, and homeowners’ insurance.  A typical retail bank or credit union can achieve massive scale by implementing a platform approach and aggregating services in a seamless experience—eliminating the need for consumers to go to different institutions for different services. The Intelligent Bank: leveraging data with adaptive intelligence (AI) to engage with customers through intelligence and to enable autonomous finance Once all of the available data is aggregated through banking-as-a-service or banking-as-a-platform, banks can power personalized offers based on all the interactions customers have with the ecosystem partners through AI/ML-enabled engines that parse the data in real time and present highly contextual and relevant inline offers. This is the future of banking: contextual finance, where the bank is able to offer the right product at the right time in real time to the right person based on data that’s acquired from interactions customers have with the ecosystems or with a wider set of platform applications. Banks are already rapidly moving to deliver highly tailored services to a segment of one by leveraging all the data available to them. For instance, AI is already being used to provide consumers with advice on how to use their money, how to budget well, and how to invest and achieve long term investment goals, all powered by intelligent agents. Self-driving finance enables banks to deliver proactive advice to their customers to empower them to take control of their financial well-being. This strategy boosts customer engagement and product adoption. Using Oracle Autonomous Cloud, fintech company Personetics is delivering “self-driving” or autonomous finance today to banks. We’re also seeing AI and natural language processing (NLP) being used to drive conversational engines that can converse easily with customers in natural language; these engines have full awareness of context and can seamlessly adapt to deliver a human-like experience.  Another example of a company that delivers natural conversational AI banking experience with fully pre-trained agents is Ipsoft . Their digital agent Amelia can cover mortgages, loans, onboarding, wealth management leveraging the autonomous cloud, big data and the Oracle open banking platform.  Employment of digital labor improves customer experience, reduces time to resolution while continuously improving back office bank efficiencies. Machine learning-based models are also now being used in underwriting to provide a holistic view of borrower risk based on alternative data. In the past, this would have taken weeks because publicly available data had to be collected from different sources and then aggregated for analysis. Now, it can be seamlessly synthesized in minutes to enable the risk teams to bring all the information together in concise, succinct bullet-size information to make credit decisions. Using real-time payment information and a risk management system to analyze thousands of customer transaction variables, MYbank in China is now making small business lending decisions in fewer than three minutes.  Borrowers apply with a few taps on a smartphone and, if they’re approved, receive cash almost instantly. There are no humans involved in the process, and the default rate is practically non-existent (1%). The Connected Bank: connecting customers and their banking needs through blockchain When dealing with global financial payments, inter-bank transfers, fraud detection, and loan processing, the processes have traditionally been slow. At the backend, the process requires banks to cooperate and connect seamlessly with other entities. Lack of transparency is also a major hurdle. With these hurdles, it might take days for banks to complete a transaction. But blockchain is changing this experience. Arab Jordan Investment Bank (AJIB) is an excellent example of how blockchain can improve and speed processing. Before adopting blockchain, the bank’s money transfers required third-party intermediaries for cross-border transactions. Each intermediary charged a fee and required AJIB to share some customer information with those third parties, which involved strict regulation compliance. With Oracle Blockchain, the bank is now able to make transfers in real time without the transaction fees that used to occur at every stage. Both senders and receivers can track the money transfers as they’re happening, providing information about the exact timing and amount of the transfer. This has resulted in tighter security, elimination of delays, and automated transactions without third-party interference. Oracle Helps Facilitate the Future of Financial Services Oracle is taking a leading role in building the future of banking with technologies that enable banks to become integral, intelligent, and connected to their customers’ lives: Oracle Autonomous Database uses AI/ML capabilities to minimize human intervention and eliminate manual, error-prone tasks, which minimizes operational risk exposures and tightens data security. Oracle AI enables data scientists and data engineers to build, train, deploy, and manage machine learning models and assets within a single collaborative workspace to better manage the real-time information that’s flowing into the bank from multiple channels. Oracle Fintech Innovation helps smaller banks and fintech companies succeed by combining Oracle’s financial services and technology expertise with Oracle for Startups, a program designed to help accelerate growth and leverage Oracle’s world-class enterprise cloud platforms and ecosystems. Oracle drives digital innovation into banking with curated enterprise-grade financial technology that delivers solutions in payments, cognitive banking, autonomous personal finance, wealth management and a variety of transformational digital fintech solutions on Oracle Cloud that can be easily plugged into the bank with Oracle banking APIs. Oracle Open Banking Platform provides the APIs and tools banks need to succeed with their open banking and digital transformation initiatives. It helps them develop and deploy new digital services rapidly and share data securely by enabling them to deliver banking-as-a-service or connect to ecosystem partners for banking-as-a-platform capabilities. Oracle Blockchain Platform provides trusted peer-to-peer permissioned networks to run smart contracts and maintain tamper-proof distributed ledgers for B2B transactions, eliminating intermediaries and points of failure. Learn more about how technology is transforming the financial services industry in this video.

If you think about it, financial services have traditionally been disconnected from their customers’ goals. For instance, when we want to buy a vehicle or house, or purchase inventory for...


Simple, Digital, Transparent & Efficient

  Small to medium businesses are the foundation for the global economy. They represent a substantial potential revenue source for banks. Yet this critical customer segment is many times overlooked by banks having them switch between their Retail and Commercial divisions. Most small businesses are still not satisfied with how banks are addressing their specific financial needs.  Small to medium businesses are demanding a better banking experience ~ Simple, Digital, Transparent, Efficient.  Sounds Easy – Right? What’s the challenge then? Two tables from the Small Business Credit Survey – grabbed my attention. They are indicating that applicants are most dissatisfied with online lenders’ higher rates, less favourable repayment terms, and loan conditions. However, the speed at which they can give a credit decision and give customers access to funds – influences their lending preference. It’s clear from this that banks that get the small business customer experience RIGHT have an enormous opportunity to increase their market share in this critical segment.   Source: https://www.fedsmallbusiness.org/medialibrary/fedsmallbusiness/files/2018/sbcs-employer-firms-report.pdf Small Medium Businesses demanding new experiences isn’t new information to banks. For a while now, banks’ strategic priorities have been focused on increasing market share and delivering profitable growth in small to medium business segment. So, if this is the case - why are so many banks still challenged to deliver on the small to medium business customer expectations? For many banks, the small to medium customer falls between their consumer and corporate businesses. And while many banks are now addressing this segment uniquely on their public-facing websites – this change has not proliferated down-stream to the processes, systems, and data that underpin this segment. I am not suggesting that banks need to change their channel or core systems– instead, adopt an incremental middle-out approach. One that enables banks to deliver demanding experiences for this segment and leverage investments already made.  Where to start?  Data is the most critical asset that banks have, yet it is grossly underutilized. Data is often unused during loan origination. Underutilized data happens often during loan origination. I recently had the privilege to be part of a panel discussion titled ‘Leading Small Business Lending into a Digital and Data-Driven Age’. What struck me was the emphasis on leveraging ‘trusted data’ to deliver simplify, automate, and ultimately drastically improve the overall customer experience.     Why, when there are abundant data sources available within the bank and external to the bank, do customers need to input application data. Instead, banks should be striving for ZERO to minimal data entry required by either the customer or the banker, which would significantly reduce turnaround time and ‘first time right.’  A couple of examples –  Many banks have invested in centralized customer data repositories, but most have not yet thought through where to house and maintain the customers’ financial profile critical to the origination process. Our PARTY component can sit alongside these customer repositories and provide a location to store financial profile information, which is then updated, maintained, and reused across the origination process. Further, being able to connect to external sources that host the customer’s financial data without the need for the customer to re-key to expedite the application capture process with the fewest keystrokes.  Similarly, COLLATERAL information – for most banks, this data is siloed against individual applications and not centrally stored. The consequence of this is that customers are asked to provide this information with each use and are not able to leverage existing collateral across new applications. Further, appraisal data cannot be reused, meaning bankers will often request multiple appraisals for individual collateral at a high cost to the bank.    Next, consider the ‘origination process’ – many banks try to take existing processes designed for assisted channel origination and make these digital. Instead, banks should be over-hauling these processes and thinking ‘customer in’. Taking into consideration seam-less omnichannel navigation, leveraging data at each stage to drive efficiency, simplification, and remove product silos. Customer in thinking enables banks to deepen customer relationships.  Finally, ensuring that there is access to both data to the process. All capabilities must be API enabled to ensure that customers, bankers, underwriters, approvers, and any other parties associated with the procedure are delivered a superior experience. API enablement goes beyond merely providing the customer with an online form to complete an application. It aims to enable customers and bank staff with secure and consistent access, delivering transparency into the data and its related processes at every stage of the origination life-cycle.  We are delivering  Oracle’s origination platform enables banks to leverage their existing investments and provides a “speed to market” advantage in the race for a better small to medium business banking experience.   90% improvement in ‘First time Right’ ‘Time to Yes’ in minutes NOT days ‘Time to Cash’ less than 24-hours 70% improvement in auto-decision rates 35% increase in banker customer-facing time  To learn more about what Oracle is doing to enable banks to meet small to medium business expectations – please instant message me to learn more or have a conversation. For more information on Oracle’s SMB Originations solution please visit our websites at: Oracle Banking Originations: Webpage Oracle Banking Solutions: Homepage Oracle Financial Services: Homepage Contact us: Email: financialservices_ww@oracle.com    Follow us: Linkedin: https://www.linkedin.com/showcase/oraclefs/ Twitter: https://www.twitter.com/oraclefs

  Small to medium businesses are the foundation for the global economy. They represent a substantial potential revenue source for banks. Yet this critical customer segment is many times overlooked...

Financial Crime and AML Compliance

Integrated Case Management – A Game Changer for Smaller Banks Fighting Financial Crime

Smaller banks are equally vulnerable to financial crime just like large multi-jurisdiction banks – thus exposing them to greater regulatory scrutiny. This has led to increased investment in financial crime & compliance programs such as Know Your Customer, transaction monitoring & case investigation. Increased regulatory expectation has amplified the costs and burden of compliance management – and the challenge is surely greater for smaller banks. “Basic” Anti-Money Laundering Software Is Not Working Banks currently perform periodic reviews on high-risk accounts and conduct investigations based transaction histories via several risk indicators. To facilitate this anti-money laundering process, there are many tools which fit the “basic” and “economical” compliance needs of smaller banks. However, these anti-money laundering tools only provide basic functionality and lack key aspects such as flexibility, automation and future readiness. These are some limitations in current anti-money laundering software: Lack of Holistic View: If a bank’s system is unable to provide complete cause of red flags, customer activity, historical cases, then the analysts are not able to get a clearer view of the AML investigations. This means that either the analyst has to gather such details from third-party systems, manually adding to the investigation times or make inaccurate conclusions using incomplete data. Manual Case Assignment: Based on team structure & case types,  banks should be able to automatically assign cases to users or user groups. If not, supervisors need to step in and assign the cases themselves. With process automation that is available in the market, banks can  invest in their time more on high-value activities such as reviewing & assessing overall program instead of assessing cases. Inflexible Workflow: Current anti-money laundering software options pre-packed with basic workflows which is great from a “time-to-production” perspective. However, if these tools are inflexible and cannot be tailored to meet bank-specific anti-money laundering policies or any future organizational changes then it needs to be adapted. These tools may not be the best option to match available resources with the bank’s risk profile. Case Correlation: If the case management tool does not allow for case grouping as per common/shared information between cases then, it is most likely that analysts are investigating siloed cases, hence not making informed decisions. This leads to inaccurate case outcome and an  inefficient AML investigation process. Case Categorization: Ability to group cases based on priority, customer segment & investigation scenario allows more effective case assignment policy, enhanced risk assessment reporting & removes false positives. By maintaining cases without any relevant categories or sub-categories, it can restrict a more granular assessment. Productivity Reporting: Productivity reports provide a complete view of bank’s financial crime program & user management. Information around volume of pending cases, for instance, allows the senior management to better manage resources towards anti-money laundering, plan out training courses as well as other policies. Integration with Third Party Systems: A thorough financial crime case investigation often requires information-gathering from several sources such as  transaction reports, sanctions screening and media scan to truly “know your customer”. Inability to integrate with third party systems increases investigation time, and also makes it impossible to maintain complete audit trails of investigation steps. Scalability/Future Proofing: It is critical to align AML compliance investments with firm’s enterprise growth goals. The cost of upgrading would be more expensive compared to configuring existing tool to support newly added jurisdictions, products/services or acquisitions.  Don’t Settle for the Rest, Go for the Best To maximise their return on investment, smaller banks should aim to adopt anti-money laundering technology that is tailored for the size of their operations and that is powered by deep industry understanding and research. Highly visual tools are available in modern anti-money laundering software that puts  the power of analytics in every user’s hands instead of being beholden to vendor limitations. Here is a useful checklist when assessing your investment in anti-money laundering technology: A Modern Intuitive User Experience: Proving an exceptional user experience is critical part of the investigation hence. The solution needs to include the functionality -    A logical presentation of key information Automatic access to historical activity and cases Summary of key information for Level 2 investigation Ability to take unlimited steps for actions & evidence-gathering to fit banks policies View of pending/overdue cases for supervisors A map of network of all the related parties Complete audit trail Perform end to end process with fewer clicks   Configurable Workflow Process & Correlation: Every bank can come with different anti-money laundering policies & processes. A pre-packaged workflow will make it easier and quicker to implement any changes. Drag-and-drop flexible frameworks will allow banks to achieve the most optimized anti-money laundering process, matched to available resources. By grouping & correlating together new cases based on shared information between customers, accounts, external parties, addresses, tax ID and household, it will give a more holistic view of case entity. Case correlation can better make sense of all information as well to weed out false positives. Robotics Process Automation: Robotic process automation (RPA) is gaining popularity in anti-money laundering technology, for good reason. AML investigation teams have an important but time-consuming job. Looming deadlines and volumes of information make it harder to address all factors for each investigation. On the other hand, failure to consider key factors could also result in incomplete analysis. Robotic process automation can help to improve investigation efficiency and quality. There is a high rate of robotic process automation adaption within smaller banks due to lower technology cost Smaller banks need a solution that is not a black box and is fully compliant with the latest anti-money laundering regulations for data and model controls like DFS504 and AML5D. As the volume of transactions get larger and schemes become more complex, the need to fighting financial crime with advanced technology is even more pressing. The opportunity to apply the latest anti-money laundering technology to help defeat financial criminals is here. Modern visualization-driven platforms and robotic process automation can take financial crime programs to the next level increasing your organization’s efficiency and effectiveness. Find out more about our anti-money laundering solutions here: https://www.oracle.com/industries/financial-services/analytics/solutions/financial-crime-compliance.html

Smaller banksare equally vulnerable to financial crime just like large multi-jurisdiction banks – thus exposing them to greater regulatory scrutiny. This has led to increased investment in financial...

Financial Crime and AML Compliance

Can Blockchain Block Money Laundering?

Blockchain has been touted as the solution to replace the many ageing processes powering financial services and it may just be the answer to stop money launderers and financial criminals in their tracks. What is blockchain? Blockchain is a sequential distributed and encrypted database found in cryptocurrencies derived from Bitcoin. It has become a tool for maintaining transparent and distributed ledgers that can verify transactions, including financial ones, with minimal third party involvement. Blockchain is distributed because the ledger is not held in a central location but rather spread across a network of computers or nodes. And it is transparent since every transaction is made public for all to see. As part of its set up, historical transactions can’t be changed, which reduces the possibility of data altering and maintains a high level of data integrity. With these characteristics, blockchain has tremendous potential to become one of the most wanted technologies across all industry sectors over the next coming years and will have an industry impact similar to the Internet. Central banks and financial institutions are actively investing in this space. A recent article lists 26 separate banks globally who are considering blockchain technology. Similarly, there are 42 banks that are considering a common set of standards and best practices with a view to explore a hybrid blockchain concept. What is money laundering? Every year, financial institutions spend about US$10 billion to develop anti-money laundering processes , yet still this and other financial crimes continue to take place on a large scale. The largest financial crimes are not carried out with firearms but with a single click of a button. These criminals disguise themselves with different aliases from different locations so that the origins of the money laundered becomes untraceable. How money laundering works is commonly described in three stages: Placement, the stage at which criminally derived funds are introduced into the financial system. Layering is the substantive stage of the process in which the property is 'washed' and its ownership and source is disguised Integration, the final stage at which the 'laundered' property is re-introduced into the legitimate economy. These three stages simplifies how money laundering works but provides a general overview. Often, these stages may overlap and there may be no requirements for criminal proceeds to be placed. Find out how free trade zones can be a financial fraud freeway: https://blogs.oracle.com/financialservices/free-trade-zone-a-freeway-without-policing Blockchain improves data integrity As financial criminals are after the big economic data that banks and similar financial organizations are dealing with, keeping this data safe is an important anti-money laundering process. With blockchain technology, banks can increase the level of data traceability and integrity, which will consequently improve the quality of their transaction monitoring activities. In parallel, Blockchain can significantly reinforce the effectiveness of the internal controls (COBIT 5 – Data Governance Requirements) to secure data and meet the underlying principles outlined by ISACA: Reduce complexity and increase cost-effectiveness Increase user satisfaction with information security arrangements and outcomes Improve integration of information security Inform risk decisions and risk awareness Reduce information security incidents Enhance support for innovation and competitiveness Blockchain as part of your anti-money laundering process While blockchain technology will not become the future anti-money laundering platform, financial institutions can directly leverage blockchain to source data for Know Your Customer (KYC) and fight financial crime The data irreversibility of Blockchain provides a single source of truth and reduces the risk of duplications or errors as it is immutable. Blockchain can be used to streamline client on-boarding and KYC processes in a considerable way. To ensure data privacy and cyber security, cryptography can be another critical point to ensure partitioning of data. The number of cases of fraud, hacking and unauthorized personnel accessing data that should be secure poses a significant risk for all businesses. Utilizing blockchain can overhaul and improve security and highlight where upgrades need to be made after a leak or hack has occurred. Blockchain technology holds promise in boosting anti-money laundering processes but there will be some challenges to address. Shifting to a decentralized network will require educating end users and operators and integrating with current working process to have the biggest and best impact. Read up on the latest anti-money laundering trends and solutions here: https://www.oracle.com/industries/financial-services/analytics/solutions/financial-crime-compliance.html

Blockchain has been touted as the solution to replace the many ageing processes powering financial services and it may just be the answer to stop money launderers and financial criminals in...


Fintech Hydrogen Accelerates Financial Innovation on Oracle Open Banking

Open banking started as an European Union directive in 2015, known as PSD2. It was administered to get financial institutions to open their APIs to allow third-parties to build applications and services on top of data. This initiative has now spread globally, but there has yet to be meaningful product layers built on top of the financial data. The end goal of open banking was to increase competition and provide a level playing field by regulating consumer protection. However, only about 49% of consumers feel comfortable sharing their data with companies through open banking. Gaining the consumer’s trust is critical when it comes to adopting open banking, and we realize the importance of this, here at Hydrogen. Trust must be established for any relationship to be successful, which is why Hydrogen recently announced that our platform is now available on the Oracle Cloud Marketplace and can be seamlessly added to the Oracle Open Banking Platform. With 430,000 customers in 175 countries, Oracle is one of the most trusted technology firms in the world and Oracle customers can now leverage the power of Hydrogen’s award-winning secure and scalable enterprise grade cloud  platform on Oracle Cloud Infrastructure (OCI). Oracle Open Banking Platform The Oracle Open Banking Platform is an open banking API enabled solution that is built on top of the Oracle Cloud which serves as the foundation for building, integrating, monitoring, and securing applications, as well as for driving new insights. Through its extensive catalog of services, such as lending, payments and predictive analytics, the Open Banking Platform enables financial institutions and fintechs to expedite innovation and monetization with a single enterprise cloud platform. Oracle Open Banking Platform equips customers with a best-in-class open banking solution that, among many other benefits, delivers high-value and cost effective financial products and services, improved operational efficiency, and creates new revenue channels by exposing APIs and monetizing current banking assets. Accelerating Financial Innovation with Hydrogen With the Hydrogen platform integrated with Oracle’s open API banking cloud offering, Oracle customers can accelerate their digital financial innovation by quickly building hundreds of solutions using a single platform. Hydrogen’s powerful toolkit consists of one connected set of configurable APIs, one integration library, and one standardized data model, with added business logic and modular UI components to build end-to-end investing, savings, insurance, wellness, and many other applications. The Hydrogen platform is able to accomplish this because it can integrate with any third party system, provide core data storage and financial engineering, and create end-to-end client-facing web or mobile applications. Financial Wellness Use Case As we’ve previously mentioned, the Hydrogen platform can be leveraged to create numerous financial applications. One example is a data rich financial wellness application that can be built with the joint tools available from Oracle and Hydrogen. In this use case, the wellness application will highlight personal finance management (PFM), budgeting, financial health, and planning. The application starts by pulling in the users financial data through their various accounts with multiple financial institutions. Hydrogen extends this functionality through an integration library and chooses from various aggregation vendors and then pull the data automatically back into the Hydrogen platform. Once the user has selected the financial accounts they want to review, they are taken to their financial wellness dashboard. This data is stored in the Hydrogen platform and synced via vendor integration. The application can now perform analytics on the financial wellness of the user such as net worth tracking and cash flow analysis. Users can also create and update budgets.  After banking and credit card accounts have been synced, the application can check the budget against categorized transactions and users can automatically view their progress toward a configurable budget. The user can also receive a health score across their finances using the aggregated data. This score can be computed using the financial data stored, either by comparing to other users in the application, or based on a rule of thumb. Lastly, interactive calculators can be shown next to each score to give the user additional advice. For example, Emergency Fund Calculator returns a total recommendation along with a plan to save for the total recommended amount in a variety of horizon intervals. With Hydrogen as an added layer on top of the Oracle Open Banking Platform, financial institutions can quickly and cost-effectively create new revenue models and mitigate risks with an enterprise-grade platform. The average Oracle Cloud customer can save over 80% in product development cost and time by leveraging the joint Hydrogen/Oracle model. Guest blogger Mike Kane is Co-Founder of Hydrogen

Open banking started as an European Union directive in 2015, known as PSD2. It was administered to get financial institutions to open their APIs to allow third-parties to build applications...

Financial Crime and AML Compliance

Transnational Financial Crimes Cost Banks up to $2.2 Trillion

Financial crime has existed for as long as money has. Although we’ve come a long way from hiding grain underground, but financial criminals still follow the same principle of anonymity and hiding. Transnational financial crime is  good business. A recent article by Global Financial Integrity, reported that it is valued to be between US$1.6 trillion to US$2.2 trillion in 2017 11 different markets.   The report took a closer look into several groups,  including the FARC (Revolutionary Armed Forces of Columbia), the Islamic State and the Lord’s Resistance Army. These groups reportedly used criminal markets for personal wealth gain and power play. They allegedly “front” anonymous (shell) companies  (i.e. companies that have obscured their ownership in order to allow beneficiaries to operate more “freely”), to help hide their identities, criminal activities  frustrate active law enforcement investigations and run money laundering. The International Consortium of Investigative Journalists (ICIJ) and OrganizedCrime and Corruption Reporting Project (OCCRP) have also found this to be true in their ongoing investigations into global corruption and financial crime.​ Criminals have worked around hard-to-detect areas for money laundering in trade finance and correspondent banking. Financial fraud is also made easier considering the many banks have limited ‘know your customer’ systems and processes, leaving them vulnerable for exploitation. So how can financial institutions stop financial criminals in their tracks? Connect the dots faster and deeper with artificial intelligence and machine learning    It may seem obvious, but criminals increasingly lean on technology. As technology trends accelerate, even an anti-money laundering army of analysts and investigators are no longer able to keep pace. These transactions now happen in an instant, making it hard to detect that quickly. The trouble with digital disruption is that there is too much data. Luckily, artificial intelligence (AI) and machine learning solutions are getting to a point where they can run complete analyses and automated decision-making across vast volumes of transaction data.  Spotting anomalies is crucial. However, it is not useful until they are string together to make sense. This is where graph technology comes in. The use of network analysis and data visualization  allows for the exploration of relationships between entities of interest such as organizations, people and transactions, easier entity resolution, single customer views and the  visualization of patterns and relationships. This is important during transaction monitoring and investigations in helping the anti-money laundering team understand what the data truly means. Use regulation as a jumping-off point While regulation is everywhere in financial services, these regulations rarely align globally or reflect the sophisticated financial crime threat that today’s institutions have to deal with. Financial institutions will need to use regulations as a starting point, rather than as the end point, to ensure that their processes and rules are as up-to-date with criminal activity as possible. Financial compliance need not be a frustrating customer experience. Find out more: https://blogs.oracle.com/financialservices/financial-compliance%3A-the-foundation-of-banks’-customer-experience Collaborate to fight financial crime The financial services community needs to come together to build strength and resilience in numbers. Financial criminals do not work under a single structure. They scatter across clans, cells and networks. But, the crimes they commit are the same. Regulators and financial service providers need to band together to combat any criminals or patterns of corruption. In the likely event that it is taken up to criminal trials, it will easier to judge them under an effective legal system across different borders.   Ultimately, the interconnectedness of the global financial system means that financial crime  and money laundering is only going to get more complicated, far-reaching and sophisticated. However, with the right tools, the right processes and the right collaborative approach, financial services firms can take on these criminals from a position of strength. Find out more about our anti-money laundering solutions here: https://www.oracle.com/industries/financial-services/analytics/solutions/financial-crime-compliance.html

Financial crime has existed for as long as money has. Although we’ve come a long way from hiding grain underground, but financial criminals still follow the same principle of anonymity and hiding. Trans...


Fintech Strands Launches SaaS Personalised AI Banking Platform Running on Oracle Autonomous Cloud

In recent years, financial institutions have taken big steps in the adoption of cloud-based solutions with the aim of leveraging the benefits shared IT resources and ecosystems deliver across the enterprise. Oracle Open World 2019 set the scene for the launch of Strands Software-as-a-Service platform as we look to deliver the first global enterprise grade digital money management solution on the cloud. Strands is a pioneer when it comes to creating highly-customizable digital money management software for top-tier financial institutions worldwide. Cesar Richardson, Head of Alliances and speaker at OOW19, indicated “Strands' and Oracle’s partnership could not come at a more timely moment in the evolution of cloud banking in the Financial Services industry. Banks are very interested in leveraging our technology however demonstrable security, performance, handling PII data and compliance remain key in all our conversations. Oracle's Gen 2 Cloud provides the foundation for enterprise cloud-based banking platform needs demanded by our large banking clients who require to monitor, control, and encrypt sensitive data leveraging, bank private data isolation for mission-critical banking applications such as Strands Finance Suite. We chose Oracle’s Gen 2 cloud as it is designed to meet cloud security principles such as protecting data in transit, asset protection and resilience, separation of client data, operational, personnel security, identity, and authentication requirements, which are table-stakes for taking banking computing to the cloud. We can now confidently meet bank infosec and regulatory scrutiny allowing us to grow our business at scale and provide immediate value to financial institutions and their customers at the best price point in the industry. There is no doubt that banks will be very impressed when they explore how our joint product offering not only reduces the total cost of ownership, but also delivers a range of innovative deployment options (private cloud, public and hybrid) that adapt to implementations with different regulators worldwide. Understanding the current needs of banks and financial institutions when it comes to their digital transformation, Strands has found a partner in Oracle and their Gen 2 Cloud solution to power and deliver their enterprise-grade Finance Suite as-a-Service. This new partnership supports all of Strands’ money management and insights solutions offering a blend of private, public and hybrid cloud configurations based on the requirements of every financial institution and local regulator. Some of the key benefits of our product partnership include: Exceptional Performance - Processing over 150K real-time transactions per minute and instances with over 10 Million users requires a cloud that is optimally tuned to run large and complex production systems. Enterprise Grade Security - Monitored and controlled access to Autonomous DB protecting from cyber attacks and unauthorized internal control. Remove human error and prevent hacks- Autonomous DB reduces the considerable risk human errors can generate including errors in configurations, patching database and carrying out administrative tasks that don't add value but expose the enterprise to potential threats. Smooth Transition - Migration of our Enterprise grade solution to the Oracle Cloud was seamless thanks to the flexibility in supporting all applications - old and new alike. Superior Price to Performance Ratios - Price relative to Performance is unrivaled with Oracle Cloud when running data-intensive applications. Strands’ goal is to help banks and financial institutions build new business models which will allow them to compete in an evolving industry and find opportunities to monetize their rich source of transactional data. This will be achieved by delivering personalized AI banking services using the Oracle Autonomous Cloud. Strands is leveraging multiple components of Oracle’s Gen 2 Cloud including Oracle Kubernetes Engine, OCI Streaming, Oracle API Platform and Autonomous DB. Looking to the future, the value of data will continue to increase. As such, Strands’ mission is to use Machine Learning and Artificial Intelligence to help banks and financial institutions extract and categorize transactional data to produce rich insights about their customers. By doing so, banks can then take steps to speed up internal processes and help reap the benefits of a more engaged relationship with their customers.

In recent years, financial institutions have taken big steps in the adoption of cloud-based solutions with the aim of leveraging the benefits shared IT resources and ecosystems deliver across...

Financial Crime and AML Compliance

Free Trade Zones: A Financial Fraud Freeway?

We’re not saying free-trade zones (FTZ) are a hotbed of financial crime. But given its duty- and tax-free status, these jurisdictions tend to attract money laundering, terrorism financing and other criminal activities, in addition to legitimate businesses. Blind Men and the Financial Crime Elephant  The scope and degree of Customs control over the goods introduced, and the economic operations carried out in FTZs, vary from one jurisdiction to another. Goods introduced in a FTZ can undergo various economic operations, such as transshipment, warehousing, re-packaging and re-labelling as well as storage. But the same shipment may also use FTZs as a base around the globe for no other purpose than money laundering. All of this creates a complex financial crime network with multi-layer supply chain systems that can be tough to monitor. The special status, tax and arrangements, in these areas, can often allow financial criminals to exploit the system with little regulatory oversight. Even involved institution, with a robust transaction monitoring program may have limited visibility or just a fraction of the complete view. It is a Family Business  FTZs are more than commercial distribution centers and represents global, family-based, ethnic/religious networks. The operators may be linked by ethnic/religious networks across FTZs across the world that even company registry information may not be track the relationship across businesses. Tackling the Money Laundering Threat with a 720-Degree Customer View  Transaction monitoring of FTZs is currently ineffective because there is no holistic view of customer financial activity. The current programs only factor internal information (such as Customer, Bill of Lading, Documents) for monitoring & investigation. However, detecting financial criminal behavior requires factoring a good amount of external information, such as comparison of customer activity with overall FTZ customers of similar business nature, company information, actual vessel route and many more. The more effective anti-money laundering approach is to have a 720-degee customer view that includes information beyond the institution’s purview. They need to cross-reference customer activities with other FTZ customers of a similar business nature, gathering company and shipping information, for example. Holistic Risk Indicators: Typical transaction monitoring parameters such as high-risk geographies and inconsistent shipping do not give an overall picture of a customer behavior. These internal red flags should be correlated with external information to understand the holistic view and any discrepancies in customer behavior. Below are examples of some holistic risk indicators: Individual or company linked with several other companies Individual owning & operating more than one company at same time & same location Companies shipping to just one country Direct operations in FTZ Companies & individuals with same family ties  Companies registered with incorrect addresses Companies doing business in high risk geographies Inconsistent shipping route / change in shipping route from Bill of Lading External Network Data is Vital  There is no single source of database on these free ports or the merchants who sell these the goods. However, there are several types of external data that can be collected, organized and available to financial institutions, intelligence and law enforcement agencies as well as businesses. Below are a few examples of the vast variety of external information (along with internal data) needed: Business operating in FTZ - names, addresses, phone numbers and websites Trends report of amount of goods/services received and shipped in FTZ Financial institutions (and their principal officers) serving the businesses in the FTZ Shipping lines that transport goods/services from the port or ports serving the FTZ Products/goods brands sold in each business Data on the global supply chain. Insights on companies at every stage of the supply chain. From manufacturers and buyers to shipping and logistics Connect Hidden Dots: Advanced Graph Analytics What do you do with all that data? Institutions need to connect the dots in their data, uncover hidden relationships and patterns and ensure coverage of known risks by validating existing controls and scenarios. From a technology standpoint, an anti-money laundering solution which allows for graph visualizations for both internal & external financial crime data, that rapidly builds powerful detection patterns and generates insightful investigation dashboards for financial crime investigators and risk analysts, is crucial. In addition, financial criminals register themselves under multiple names and addresses. By the time a link is detected, these individuals nowhere to be found. Robotic process automation,can help automate basic processes for your anti-money laundering team, enhance Know Your Customer (KYC), Know Your Customer’s Customer (KYCC) and augment Counter Terrorist Financing (CTF) investigations with a holistic customer view. A centralized investigation hub to speed up investigations and boost investigator productivity is another critical aspect of anti-money laundering technology. The platform should enable financial institutions to search across customers, bill of lading, watchlists and external data such as FTZ trends, vessel movement, company information and many more. Due to the global nature of business, automating the manual data collection, linking, foreign language processing through graph analytics will ease entity resolution and understand how involved parties are interconnected. There has been increased scrutiny on trade-based money laundering recently by regulators around the globe. Tackling trade-based money laundering effectively requires factoring in the FTZ connection. An agile platform is important to keep up with the dynamic nature of criminals in fight against money laundering & financial crime. Find out more here: https://www.oracle.com/industries/financial-services/analytics/solutions/financial-crime-compliance.html  

We’re not saying free-trade zones (FTZ) are a hotbed of financial crime. But given its duty- and tax-free status, these jurisdictions tend to attract money laundering, terrorism financing and other...


Oracle’s participation in the winning hackathon team at SIBOS 2019 in London

I had the pleasure to meet Nitish Priyaranjan and Vijay Dev, both from the Oracle Financial Services Global Business Unit.  Nitish is a member of the winning team of the SIBOS 2019 hackathon with the theme “Open Banking needs open minds”, and Vijay pulled together the Oracle Banking Sandbox that were used by the hackathon participants. Rik De Deyn: Let’s start with Nitish.  Congratulations on being part of the winning hackathon team, Nitish.  What was the hackathon about? Nitish Priyaranjan: Thanks Rik.  This first SIBOS hackathon was organized by Innotribe at the 2019 SIBOS in London.  The aim of the hackathon was to collaboratively craft solutions to future industry challenges relating to security, identity and payments.  Mixed teams, with participants from banks, technology vendors and fintech firms, spent three days together to come up with an idea and a prototype for a new application.  Rik: Interesting.  So, what was the winning concept that your team came up with? Nitish: Our team consisted of participants from eBury.com, Form3, Trustology and Oracle.  We called our team “Optipay” and decided to design an application to let end users customize the way they do payments.  Our tag line was “Optimal Payments Guaranteed”.  The whole idea was to combine artificial intelligence and API’s, to realistically predict the cost and throughput of the payment that the user wants to do, before the payment is performed.  This gives users the chance to choose the payment method that most matches their personal preferences and initiate the payment with a reduced fee and more transparency. Rik: That sounds useful.  What was Oracle’s participation in the hackathon? Nitish: Oracle participated in the hackathon in two different ways.  We participated with two developers in two different teams, but Oracle also contributed by providing access to the Oracle Banking Sandbox and Oracle Banking APIs to each of the hackathon teams.  For the teams, it was great to be able to use and combine banking API’s, not only from Oracle, but also from SWIFT and Tink. Rik: That brings us to Vijay.  How did you support the hackathon teams with API’s? Vijay Dev: The use of API’s was very much an integral aspect of the hackathon. The theme was about Open Banking, but there was also a focus on open collaboration.  Collaboration between developers from different companies, as well as collaboration between systems.  And API’s are an excellent way to do that.  The experience we have with setting up and supporting hackathons, made us realize that it is important to offer API’s that have access to a fully functioning demo bank system. It makes the hackathon experience so much more realistic.  And that’s what we set up for this hackathon: a Banking Sandbox running Oracle Banking APIs, in our demonstration labs, for all teams to use freely.  Rik: Can you elaborate on that a bit?  What’s the background of this? Vijay: We brought together decades of experience working with over 600 banking customers worldwide, implementing our suite of banking software. We have customers right from core banking capabilities to linking IoT devices. Based on that we have built a sandbox that contains all our products, integrated and available. This is very close to a real bank integration and is open for access and collaboration with fintechs, partners and innovators.  At the front of this sandbox are our Oracle Banking APIs. We expose over 1600 APIs across banking domains and user segments. So, we don’t just deliver the APIs as stubs with dummy data. Our API’s apply the same level of access and authorization controls that are needed to integrate with a bank.        Rik: What a great story.  What has been your biggest take away from the hackathon experience? Nitish: Well, it’s been good to see how focused the whole financial services industry is on collaboration and API’s.  It’s been a real opportunity to be part of this, and I’d like to thank the organizers for including Oracle.  Being a development manager for payments in FLEXCUBE, the hackathon inspired me to continue this path of collaboration. Vijay: Same here.  It’s always interesting to see developer teams working with our API’s for innovative solutions.  A hackathon environment really brings out what’s working best and where we can improve.  This will most certainly influence our Banking API strategy. Rik: Thanks a lot for these insight guys, and very much looking forward to work with you again. Sources: https://twitter.com/Sibos/status/1177186595260096512 https://www.sibos.com/media/news/sibos-hackathon-open-banking-needs-open-minds

I had the pleasure to meet Nitish Priyaranjan and Vijay Dev, both from the Oracle Financial Services Global Business Unit.  Nitish is a member of the winning team of the SIBOS 2019 hackathon with the...


Self-Driving Finance-as-a-Service is Keeping Banks Relevant on Oracle Autonomous Cloud

Leading banks around the world are urgently looking to stay relevant by providing retail, small business and wealth management customers guidance in managing their finances – with varying levels of personalization and automation. We call this Self-Driving Finance. Self-Driving Finance enables banks to deliver proactive help to their customers empowering them to take control over their financial well being. This strategy boosting customers’ engagement & products’ adoption. Self-Driving Finance-as-a-Service is the next iteration as it becomes available on the Oracle Cloud. Now banks can enjoy the benefits of all that comes with an agile and scalable Cloud infrastructure including built-in encrypted security, quicker time-to-market, and on-demand scalability. Banks that adopt a Cloud infrastructure have the agility to innovate as desired with new functionalities, products, and services and streamlined paths for upgrades and customizations. With the help of Open Banking APIs and Kubernetes technology, banks can now move faster than ever to deploy Self-Driving Finance’s personalized insights, automated wellness programs and other innovative products with minimal effort, accelerating their digital transformation towards a new standard of banking experience which is highly personalized, proactively engaging the customer, and focused on the customer’s financial well being. And as Self-Driving Finance-as-a-Service ensures that the security and deployment aspects are taken care of, the fun can begin. Personetics is currently working on a set of out-of-the-box connectors to Oracle’s leading Financial Service solutions and applications. The first step is a connector for Oracle’s Open Banking APIs which will allow any bank using the Open Banking APIs to enjoy Personetics personalized insights, automated wellness programs and other products, with minimal effort. In addition, Personetics’ plan is to build connectors to Oracle CRM and Marketing Cloud to bring the power of Personetics AI to banking departments that work directly with people, namely, sales, support and marketing. Personetics is a proud partner of Oracle’s fintech innovation initiative to accelerate banks’ growth. Combined with the intuitive user interface of the Oracle Cloud Marketplace and its automated application installation features, banks are able to quickly search for relevant applications and services and deploy the business solutions that work best for their organization and their customers. Self-Driving-Finance as a service and its money management and other features accelerates the time-to-market, quality, scale & agility. To date, more than 60 million bank customers across the globe are already experiencing the benefits of Self-Driving Finance. Now, with the accelerated transformation empowered by the secure and agile framework of the Cloud, banks can quickly bring this technology to millions while realizing the tangible ROIs that serve core goals coveted by the industry – increased engagement, improved customer satisfaction, deposit growth, and increased share of wallet. We believe that banks that choose to go with a Cloud set-up, including Oracle Cloud, will see great value in their choice. Personetics plans to continue to innovate and streamline its Oracle Cloud offerings to provide great value and a short time to market. Stay tuned! Guest blogger Dorel Blitz is VP Strategy & Business Dev, Personetics 

Leading banks around the world are urgently looking to stay relevant by providing retail, small business and wealth management customers guidance in managing their finances – with varying levels of...


The critical role of DATA in improving ‘turn-around times’ in SMB Origination

The average ‘Time to Decision’ for small to medium business (SMB) origination within traditional banks ranges anywhere between 5 days to 1 month depending on the loan size and complexity of the deal and ‘Time to Cash’ anywhere between 25-55 days. In a world where SMB’s are demanding funds fast, these time-frames are unacceptable. Banks must focus on how to reduce ‘turn-around times’ and deliver a better end to end experience to both customers and staff. What role does data play in enabling banks to reduce turn-around times for SMB origination?  In the competitive SMB lending arena, banks that effectively leverage their data will be best positioned to ‘win’ the small to medium business customers banking relationship. Let’s take a more in-depth look at how leveraging data can drastically reduce origination ‘turn-around times,’ lower the cost to originate and improve credit quality. To do this, let's break down the end to end origination process into three sub-processes – Application Capture, Application Assessment, and Application Fulfillment. Application Capture - The data captured to support the application must be complete and correct. For both customers and relationship managers, this step needs to focus on minimal data entry while ensuring data quality is not compromised.  The measure at this stage is ‘first time right.’ The higher percentage of right applications for approval, the higher the chance for a quick credit decision.  Banks also need to reduce the effort required by their customers and relationship managers as part of this stage. Doing this, for relationship managers increases their customer-facing time and enables them to focus their efforts on securing the customers business, not data entry. Banks must ensure that any data already on file related to the applicant and relevant to the new application is pre-populated. Pre-populated data must then be enriched either from documents provided by the customer or by taping data sources external to the bank.  As part of the origination process, customers are asked to provide documentary evidence to support their application. Banks typically use these documents for verification purposes. Data provided include personal (driver’s license, passports) and business identification (certificates of registration, etc.) documents, personal and business tax returns, business balance sheets and P&L reports, personal and business bank statements. These documents not only verify but are rich sources of data. The challenge is how to get to the data within these documents. Advancements in Optical Character Recognition (OCR) and Machine Learning are making this possible. OCR is a technology that converts different types of documents, such as scanned paper documents, PDF files, or images captured by a digital camera into editable and searchable data. Leveraging data from documents during the application capture step not only drastically improves both customer and relationship managers experience, it significantly reduces verification processing times. The ability to integrate and augment data already within the bank with data from sources external to the bank provides another opportunity for banks to improve this step in the origination process. Services such as address verification services, personal and business identification services (Equifax, Experian e.g.), data sourced companies and personal credit bureaus, the extraction of financial data directly from the customer bank account or accounting package (Sage, NetSuite, Xero, QuickBooks etc), valuation services to assess collateral value upfront in the origination process. The more data that banks can source the simpler and more accurate the application will be. Further, this data can then determine, in real-time and based on configured credit policy, the amount a customer is eligible to borrow and a risk-based, personalized price.  Oracle customers are achieving 90% ‘First Time Right’ 35% increase in banker customer-facing time Application Assessment – This step aims to maximize the number of applications auto-decisioned and automatically verified. If auto-approved the application needs to move seamlessly to the next stage, if referred the application is sent, and all the associated data relating to the application needs to pass to an underwriter for further scrutiny. Should a manual credit decision be needed, underwriters require access to all the data in a single place to make a timely decision. Underwriter review is where the accuracy of the data captured during the earlier step is so important. For banks to improve ‘time to decision’ errors, manual steps, lengthy verification processes must be avoided. Banks need to be able to configure credit policy to leverage ‘trusted data’ and ensure that quality ensues. Further, banks need to use this data downstream of the origination process to monitor their portfolios and use insights to adjust and adapt credit policy based on portfolio performance.  Oracle customers are achieving ‘Time to Decision’ in minutes 70% improvement in auto-decision Application Fulfilment – At this stage, we measure ‘Time to Cash.’ SMB’s want access to capital quickly, so being able to complete the final legs in the process efficiently is as important as the earlier two stages. Term Sheets need to be generated automatically and pre-populated with the data and all conditions and covenants relevant. Errors at this late stage in the process cause delays which can ultimately impact whether the loan will proceed or not. Post acceptance, funds are disbursed automatically. If the loan is secured, then the bank will need to register their security interest. Oracle customers are achieving ‘Time to Cash’ less than 24-hours Finally, data that is captured and enriched across the origination process must be stored in consolidated repositories so that it can be re-used across the bank and for future applications. As examples, financial profile data captured for both the business and relevant parties associated with the business needs to be stored and updated regularly through integration with external sources, of the provision of updated financial documents such as tax returns, balance sheets, P&L statements. Collateral data is centralized with valuation data kept up to date throughout the life-cycle. The ongoing maintenance of this data is critical for the bank to better manage and monitor the portfolio across time. As competition intensifies, effective banks use data across the origination process and throughout their relationship life-cycle. These banks see significant improvements in turnaround times, as well as in the profitability of SMB origination. Oracle’s Banking Origination Platform enables banks to harness valuable data insights. These insights improves, simplifies small to medium business origination experience for customers and bank staff. Oracle customers are achieving 40% improvement in ‘Turnaround Times' 25% reduction in ‘Cost to Originate’ To learn more about Oracle Banking Origination Platform, feel free to message me to explore more or have a conversation. For more information on Oracle’s SMB Originations solution please visit our websites at: Oracle Digital Mortgage Originations: Webpage Oracle Banking Solutions: Homepage Oracle Financial Services: Homepage Contact us: Email: financialservices_ww@oracle.com            Follow us: Linkedin: https://www.linkedin.com/showcase/oraclefs/ Twitter: https://www.twitter.com/oraclefs

The average ‘Time to Decision’ for small to medium business (SMB) originationwithin traditional banks ranges anywhere between 5 days to 1 month depending on the loan size and complexity of the deal...


Oracle Powers Digital Fintech Ecosystem at Sibos 2019

At Sibos in London Sept 23-26, Oracle will feature 10 enterprise-ready FinTechs, 3Forge, Amenity Analytics, BankiFi, Gapsquare, IPsoft, Personetics, Perx, Previse, Quant Network, The Logic Value who are leveraging Oracle Cloud technology and Oracle Banking APIs to improve security, reliability, data privacy and regulatory compliance for banking. View detailed profiles of the 10 FinTechs here: Meet the FinTechs Each fintech is part of Oracle for Startups, a unique acceleration program that enables mutually beneficial business-building partnerships for startups and customers. The Corporate banking and payments value chain is an ecosystem that is driven by third-party innovators. The FinTechs selected by Oracle address core challenges in the financial services sector and deliver solutions in areas such as cognitive banking, real-time trade reporting, autonomous finance, investment banking, hyper-personalized customer loyalty platforms, open SME banking, wealth management solutions and more. With its FinTech partners, Oracle’s solutions are designed to help corporate banks rethink processes, co-create innovative products, and provide an experience that is simple and seamless for their customers. Oracle has made significant investments in four major areas: Cash and Liquidity Management, Credit and Lending, Trade Finance and Payments to help banks achieve smarter operations, greater connectivity, and faster delivery of innovative products. Meet us at H101 during Sibos to discover the innovations from Oracle for corporate banks. Please visit oracle.com/goto/sibos for more information 

At Sibos in London Sept 23-26, Oracle will feature 10 enterprise-ready FinTechs, 3Forge, Amenity Analytics, BankiFi, Gapsquare, IPsoft, Personetics, Perx, Previse, Quant Network, The Logic Value who...

Financial Crime and AML Compliance

3 Ways to Turn Anti-Financial Crime Compliance into a Competitive Advantage

As regulatory scrutiny increased, and monitoring systems started to generate an enormous number of cases, the option institutions had was to increase manpower to handle the workload. Increasing the manpower have drastically increased the cost of compliance. Such increasing costs have caused enterprises to start looking at advance analytics and data scientists as smarter investments in the long run. Analytics technologies like machine learning models enabled anti-financial crime teams to predict upcoming cases. The technology helped reduce the false positive ratio by a large degree. These systems have remained mostly disparate in siloes, thereby decreasing the Return of Investments (ROI) for most enterprises. Newer FinTech multi country-based products & services have further complicated financial crime risk making detection of organized, sophisticated crimes even tougher. Traditional Approach – Ineffectiveness in Analytics Added model management regulations, need for machine learning, and rapid evolution of unknown risks, have been critical drivers for institutions to create sizeable highly skilled analytics team. Large data sets from production & non-production systems are needed for analytics to perform data discovery & regular model optimization. Generally, data provisioning can take very long, and by the time the data is made available, it might already be outdated. Moreover, drastic changes in the risk profile of customers or entities require access to non-production data along with production data. Again, a longer time for data provisioning does not provide must-have coverage to financial crime risk. Lastly, tools with restricted data science languages limit the ability to provide coverage for complex behaviors, such as a network of external & internal parties.  This approach makes the data discovery & optimization process expensive & highly inefficient. RPA Can Win Games but Not a Championship – Investigation Challenges It is well established that, for cases, investigation analysts spend almost 80% of the time gathering the information and just 20% of the time analyzing the collected data. Time spent gathering data makes the investigation process the most expensive element in financial crime & compliance program. In recent years, Robotics Process Automation (RPA) has been leveraged to solve data gathering challenge. RPA has reduced overall data gathering time significantly, though it does not provide insight & connection between hidden parties. The lack of insight & connections makes the investigation process highly inefficient and exposes institutions to organized financial crime risks. 3 Ways to Turn Anti-Financial Crime Compliance into a Competitive Advantage Unified Platform for Monitoring, Investigation & Analytics is Vital: Quite a few leading institutions leverage a unified platform for detection & investigation. However, analytics for data exploration, above the line tuning / below the line tuning and new risk coverage are in disparate systems. A unified strategic platform for analytics fully integrated with detection & investigation will ensure timely & quality availability of production data. Additionally, machine learning models require huge volume & a wide variety of data attributes. Data attributes such as case outcome & supported evidence can be efficiently fed into machine learning models, when programmed into unified fully integrated platforms. Additionally, a unified platform can drastically reduce the operational time of newly authored models to production, which is essential for the efficient model optimization process. Polyglot Model Authoring with On-demand Data Access: When a system is jammed with fewer analytics languages, it limits the institution’s ability to leverage numerous open-source languages as per specific requirements.  For example, individual languages prove better while integrating with Hadoop, or can better handle large volumes from Hadoop (Example: SPARK) as compared to other words. Which implies, the ability to leverage multiple analytics languages is essential to the growing need for improved analytics. Strategic solutions should leverage popular data languages such as R, Python, and SQL, for productivity. Institutions realize that active discovery requires the institution’s transactions, accounts, case, and other financial crimes related data hosted in a data lake. Ability to load data from the data lake on-demand, significantly reduces the time and effort data scientists spend in preparing data for analysis. Data Scientists should be able to ‘mashup' production data with third-party data in the data lake for discovery and modeling. Graph Analytics to Fight Organized Criminal Network: Efficient Investigation of highly organized financial crime requires technologies such as Graph Analytics to succinctly express intricate money movement patterns, detect multi-hop relationships, and identify hubs and spokes of activity. Graph Analytics leveraging a single source of data powers investigators with an ability to search customer information from various source systems and allows the linkage of customers, accounts, external entities, transactions and external data stored in disparate operational silos. A single source also provides a 360-degree view of a customer, foreign bodies, or account for a holistic view of the case, transactions, and external data of interest. Graph algorithms such as Connected Components, Shortest Path can generate automatic linkages. For example, such linkages could be (i.e., linking based on customer identification numbers, name-matching, shared phone numbers, tax ID, etc.). Further, investigators can drill down (expand/collapse) on customer information & visualize related parties using graph analytics. Lastly, Natural Language Processing (NLP) to auto-generates case narrative/summary for investigations, including case highlights, associated parties, number of events, and red flags, etc. can be a game-changer in documenting case findings. Graph Analytics opens new avenues of deep learning using graph algorithms such as Graph Similarity. Graph Similarity involves determining the degree of similarity between Graphs. Intuitively, the nodes in both graphs would be similar if, its neighbors are identical (and its connectivity, in terms of edge, to its neighbors). Again, its neighbors are identical if their neighborhoods are similar, and so on. This intuition guides the possibility of using Belief Propagation (BP) as a method for measuring Graph Similarity, precisely because of the nature of the algorithm and its dependence on neighborhood structure. With seamless access to production data in a secure and designated discovery sandbox, ability to leverage popular data science languages and graph analytics, both data scientists & investigators can gain an accelerated path to explore financial crimes data & hidden unknown networks interactively.   In the upcoming ACAMS 18th Annual AML & Financial Crime Conference, Oracle is hosting a panel of key industry experts. The Panel, “Innovation Applied: Solving Financial Crime with Advanced Analytics & Intelligence”, features Stuart Davis - Global Head- Financial Crimes Risk Management, and Group Chief Anti-Money Laundering (AML) Officer, Scotiabank is one of the panelists. Stuart Davis continues to speak about his vision of a unified compliance data store for all financial crime needs. This data store is for monitoring, investigation & advanced analytics. Another panelist is Brad Ahrens - Vice President, Compliance Surveillance Technology & Analytics Group, Charles Schwab. Brad Ahrens is a massive advocate of using innovative technologies to improve advance analytics & intelligence productivity. John Sabatini from our partner organization PwC will also be part of the panel. Jason Somrak Chief Financial Crime Consultant will moderate the panel, Oracle and (Jason)-[Loves]->(Graph). Come join us on September 24th between 3:45 PM to 5 PM to listen to insights on how using innovation, compliance investments can be turned into competitive advantages. Oracle experts will also be showcasing some of our innovative solutions addressing critical issues faced in fighting financial crime at Booth #200. We look forward to meeting you at the ACAMS 18th Annual AML & Financial Crime Conference between September 23rd and 25th in Vegas. Find out more. For more information on Oracle’s Financial Crime solution please visit our websites at: Oracle Financial Crime and AML Compliance Management: Webpage Oracle Financial Services: Homepage Contact us: Email: financialservices_ww@oracle.com            Follow us: Linkedin: https://www.linkedin.com/showcase/oraclefs/ Twitter: https://www.twitter.com/oraclefs

As regulatory scrutiny increased, and monitoring systems started to generate an enormous number of cases, the option institutions had was to increase manpower to handle the workload. Increasing...


Oracle wins Asia Risk Awards – ALM Product of the Year 2019

Oracle is proud to win the Asia Risk Awards – Asset Liability Management (ALM) Product of the Year 2019 for its Asset Liability Management solution. Asia Risk Awards - Key Judging Criteria Amongst Asia Risk Awards 2019, the ALM product of the year is given to the technology solution that offers the most significant value add to end users from an innovation and risk perspective. The judging panel looks out for several critical criteria in determining the best of breed within each category, as follows: Innovation: looking beyond the ordinary in approaching existing or new business opportunities. Risk management: a clear demonstration of sound risk management practices that lie beyond innovation. Client references and feedback: how well innovations meet client needs, including satisfaction of customer service. Cross-asset structuring: mobilisation of the global markets business to move beyond a single asset class.  The editors, journalists of Risk.net and Asia Risk Magazine, together with a selected group of industry leaders, decides on the winner. For the 2019 assessment, the judging panel includes Peter Burgess, Independent advisor, formerly head of XVA central desk, CBA, Sid Dash, Research Director, CHARTIS RESEARCH, Colm Kennelly, CIO, BNP PARIBAS, Frederick Shen, Head Global Treasury Business Management, OCBC BANK. After several rounds of rigorous evaluations, Oracle has emerged top in the Technology category, for ALM product of the year, selected by the group of industry thought leaders.   A forward-looking approach Traditional ALM approaches tend towards reactive measures which are static in nature. This approach often leads to poorly originated exposures, resulting in tactical or strategic imbalances for the banks. Consequently, banks need to manage the incremental costs from the resultant risk.  Oracle’s modern, proactive ALM approach works in a multidimensional manner across the treasury, finance, risk, and business lines. It determines the best possible trade-off between profitability and riskiness by integrating the trading and banking book through several Fund Transfer Pricing (FTP) techniques designed to arrive at the target balance sheet profile. The solution uses FTP as a dynamic tool to incentivize growth or divest certain products, actively contributing to setting the target profile of the banking book. The solution also assists the ALM function in managing compliance with Liquidity Coverage Ratio (LCR), short-term liquidity metrics, funding concentration, and other regulatory requirements. This approach both reduces cost and improves risk management insights to add value beyond compliance. Case in Point – Bank of China (BOC) One client that has implemented Oracle’s ALM solution is the Bank of China (BOC). BOC faced the difficulty of capturing instrument-level characteristics of every customer relationship it has. The complexity increased because of its inability to measure interest rate risk accurately. The Bank also had an increasing volume of regulatory guidance coming from the People’s Bank of China (PBOC). Within this business backdrop, BOC needed sophisticated solutions to measure its exposure to liquidity & market risk accurately. Oracle’s ALM used standard customer level and ledger information for all performance and risk applications, and tuned customer behaviours for prepayments, price sensitivity and product selection to economic circumstances. It generated customer relationship level cash flows considering caps, floors, discounts, and other unique payment characteristics. It has pre-built reports and dashboards available that could be customized to the requirements of the PBOC and delivers Interest Rate Risk in the Banking Book seamlessly. The solution helped to simplify maintenance, operations, and enabled BOC to capture the characteristics of every customer relationship effectively. By understanding its customers, the Bank could assess their behaviours in different environments and its impacts on their bottom line. These benefits enabled the Bank to measure its sensitivity to market and economic circumstances better, managing their exposures, reducing excessive risks. The Bank was also able to speed up its reporting process, responding in time to the new requirements coming out from PBOC. Download the PDF View the article to discover more. For more information on Oracle’s Asset Liability Management solution please visit our websites at: Oracle Asset Liability Management: Webpage Oracle Financial Analytics Solutions: Homepage Oracle Financial Services: Homepage Contact us: Email: financialservices_ww@oracle.com            Follow us: Linkedin: https://www.linkedin.com/showcase/oraclefs/ Twitter: https://www.twitter.com/oraclefs

Oracle is proud to win the Asia Risk Awards – Asset Liability Management (ALM) Product of the Year 2019 for its Asset Liability Management solution. Asia Risk Awards - Key Judging Criteria Amongst...

Financial Crime and AML Compliance

Why are small, medium financial firms more exposed to financial crime?

There is a trend of increasing scrutiny on financial crime by regulators across the globe. As a result, most sizeable FI’s have initiated investments to progress to the next level of maturity for their anti-financial crime (AFC) programs. However, small to mid-sized financial institutions or other businesses such as real estate, legal, casinos, money remitter’s, struggle to gain sufficient investments in compliance, and it often takes a lower priority compared to other business investments. So, what makes them more vulnerable? Executive Mindset Many small to medium-size institution executives perceive compliance as a drag on the business. Few firms believe that they are too small for the regulator to care about, or do not have the clear understanding on the applicability of the AML/CTF laws with respect to their business. Often businesses forget that compliance is a continuous process. Firms that fail to recognize that compliance needs to keep pace with changes in market dynamics are often caught red-handed by the regulators. The fines paid are multifold compared to the investments that firms could have made retrospectively. More recently, AUSTRAC’s audit notice to Afterpay offers a glimpse of the business ramifications – a dent on the stock price, and more broadly, the risk to business reputation. Business Relevant AML/CTF Program Absence of continuously updated, risk-based, business-aligned AML/CTF policy is a key risk. Anti-Money laundering measures should not be limited to an annual corporate audit/exercise. It needs to be something frequently visited by businesses as public scrutiny increases globally. Failure to stop the bad guys at the door There is a lack of proper due diligence at customer acquisition stage (identifying the suspects at the onboarding stage). Fragmented customer onboarding processes (with manual ID checks, screening, and risk assessments) often allows the suspects onboard successfully. Client onboarding is the best avenue to avoid the unnecessary costs of monitoring, reporting, and eventually off-boarding the potential suspects. Effective anti-money laundering practices can save businesses a significant amount of money, and the company risk reduces in the process. Lack of intelligent monitoring Once on board, the next opportunity to identify the bad guys is to monitor and flag their activities/transactions that trigger the red flags. Often small institutions don’t have a dedicated analytics team to assist with continual tuning, upkeep of internal rules for additional products, channels, and changes in behavioural (transactional) patterns. The lack of a dedicated analytics team adds to the burden of operational teams with more irrelevant alerts (high false positives) and a higher probability of missing out on true-positives. Fighting financial crime with poorly designed weapons To understand the challenges in monitoring, it becomes crucial to understand the legacy in this space. Small to medium-size players have long relied on either: A home-grown monitoring solution with its challenges such as accountability, cost of change, model risk management. OR A shared AML/CTF solution (not 100% relevant to the business) with third-party aggregators conducting the monitoring on their behalf. OR A rigid vendor solution that is very expensive to change or upgrade or even keep operational. Why are these poorly designed/deployed solutions more susceptible to money laundering activities? To keep up with the changes in payment industry, the AML solutions need to be more dynamic. The challenge, however, is that majority of the tools to identify/stop them (currently) are not as dynamic. These tools are either limited by their aggregators’ services/solution or the time/cost to make the solution relevant to new behaviours. In addition to it, the micro transaction-level alert based focus hinders the investigators from gaining a more holistic view/context surrounding the triggered red-flags, therefore leading to more time being spent on investigation/gathering relevant details or incorrect disposition of red-flags driven by operational KPI’s. Sustainable compliance can be a reality for smaller businesses with the help of the right mindset, processes, and tools. Five considerations for cost-effective anti-money laundering programs Businesses should ask these questions while selecting a solution to their problems once they have the right mindset: How can the solution stay relevant without continuous vendor engagement or a large internal team to support it? Does the solution allow for holistic investigation (reducing time for dispositioning?) Does the solution assist them to keep the ever-increasing operational budget in check (leveraging Machine Learning etc.)? Does the solution remove the need for future upgrades (staying relevant always)? Most importantly, does the solution allow you to improve your risk coverage and at the same time, reduce your total cost of ownership? Oracle Financial Services Anti-Money Laundering Express Edition is a robust AML detection and investigation platform, designed specifically for the needs of small and mid-sized financial institutions. The product enables small and mid-sized financial institutions to stay compliant with regulations and become responsive to threats. Anti-Money Laundering Express Edition enables organizations to effectively monitor customer behaviour, detect suspicious activities, and make business decisions to counter them in real-time. All this while taking care of their business goals and appetite for technology investments.    For more information on Oracle’s Anti-Money Laundering Express Edition please visit our websites at: Oracle Anti-Money Laundering: Homepage Oracle Anti-Money Laundering Express Edition: Webpage Contact us: Email: financialservices_ww@oracle.com            Follow us: Linkedin: https://www.linkedin.com/showcase/oraclefs/ Twitter: https://www.twitter.com/oraclefs

There is a trend of increasing scrutiny on financial crime by regulators across the globe. As a result, most sizeable FI’s have initiated investments to progress to the next level of maturity for...

Thwarting financial crime in a hyper-connected world!

The age of hyper-connected world is here! Not too long back, the financial services industry witnessed a huge transformation with Digitalization and Open Banking as a result of which financial institutions and service providers from across industries came together to create newer business models and ecosystems that worked towards innovation and providing the best customer experience. While on one side hyper-connectivity worked beautifully to improve the end user experience, on the other hand the bad guys have equally benefited from it. They have leveraged the loop holes within the digital payment transformation system and the payment networks to successfully mask their money laundering and terrorist financing activities. Effectiveness and Efficiency – 2 sides of the same coin Digitalization has caused an exponential increase in the number of financial transactions, as a result of which archaic rule-based systems no longer serve the purpose of catching the bad guys in real-time and ensuring compliance to the AML/CFT regulations. These systems need to be extremely precise in the flags they raise, so that they are “effective” and therefore can reduce the probability of false positives- the biggest pain point hampering the “efficiency” of anti-financial crime departments in banks. Efficiency can improve only when the investigators are able to focus on the real suspicious cases rather than false positives, which in turn can help improve the effectiveness of the anti-financial crime objectives of the institution. Investing in intelligent systems that deploy advanced technologies like AI, RPA, NLP, Machine Learning and Graph Analytics enables institutions to be able to run through huge volumes of incoming transaction data in real-time and fish out “truly” suspicious transactions and augment financial crime investigators with the intelligence to analyze them. In the world of big data, these technologies can empower FIs to achieve much more from their networks. The FIs can leverage their network of internal and third-party systems in a hyper-connected world, to retrieve information about the customer, transaction, related accounts, and beneficiaries, feed the information into innovative analytical models, process and analyze them, and thereby ensure effectiveness and efficiency in their anti-financial crime compliance and investigation efforts. This opens up the possibility for these institutions to be innovative in the multitude of investigative scenarios and checks they might want to apply on data to nip the bud before it is too late, yet ensure superior customer service and keep lights on. Joining the collaboration + innovation bandwagon Regulators across the globe are also increasingly accepting the power of networks and advanced analytics to combat financial crime in the hyper connected world. The USA PATRIOT Act Section 314(b) by FinCEN permits financial institutions to share information with one another in order to identify and report to the federal government activities that may involve money laundering or terrorist activity. Not very long back the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Financial Crimes Enforcement Network (FinCEN), the National Credit Union Administration, and the Office of the Comptroller of the Currency (collectively, the Agencies) issued a joint statement to encourage banks under the Bank Secrecy Act, to consider, evaluate, and, where appropriate, responsibly implement innovative approaches to meet their Bank Secrecy Act/anti-money laundering (BSA/AML) compliance obligations, in order to further strengthen the financial system against illicit financial activity. Similarly the Financial Conduct Authority along with global regulators has formed the Global Financial Innovation Network (GFIN) to leverage the power of collaboration to innovate and share best practices both in terms of newer products for customers as well as combat financial crime. Few banks are already leading the path and testing waters to adopt these advanced analytical technologies as well as collaborate with their peers to combat money laundering and terrorist financing. Though quite a lot of them are yet to embark on these projects. Reasons could be one or many – lack of resources and expertise on advanced analytical technologies, internal conflicts or resistance to change, build vs buy decisions, etc. Oracle’s Financial Crime and Compliance Management (FCCM) suite of products have been specifically designed for organizations looking to thwart illicit financial behavior with advanced capabilities to monitor, detect, investigate and report suspected financial crime, as well as fully manage regulatory compliance requirements. Using Oracle’s expertise, financial institutions can centrally assess, streamline and manage associated operational and customer risks with respect to the organization’s end-to-end AML, Fraud, Know Your Customer, Case Management and Trading and Broker compliance programs. These broad functional capabilities are delivered along with state-of-the-art data management and advanced analytics capabilities. Visit Oracle at Booth H101 @SIBOS 2019 to meet our experts and discuss on how we can partner with you in your transformation journey to leverage the power of collaboration and advanced analytical technologies towards combating financial crime in a hyper-connected world! For more information: Website: www.oracle.com/goto/sibos Email: financialservices_ww@oracle.com Follow us: Linkedin: https://www.linkedin.com/showcase/oraclefs/ Twitter: https://www.twitter.com/oraclefs

The age of hyper-connected world is here! Not too long back, the financial services industry witnessed a huge transformation with Digitalization and Open Banking as a result of which financial...


Oracle retains 2nd position in Chartis RiskTech100 2019 for the 3rd year running!

Oracle retains its 2nd best risk tech provider position in Chartis RiskTech100® 2019   Oracle won 5 category awards while being ranked 2nd in the Chartis RiskTech100® 2019 for the 3rd consecutive year. Chartis is a leading research and analysis firm that specializes in analyzing the systems, products, vendors, applications and trends in the global risk technology market. RiskTech100® – the most comprehensive independent study of the world’s major players in risk and compliance technology – analyzes and ranks top 100 firms in the risk technology space.  Oracle was ranked leader in following solution categories:   2019 Winner 2019 Runner-up Chartis categories Core Technology Functionality Solution Categories Data integrity & control Balance sheet risk management Risk & finance integration Financial crime – applications Risk data aggregation & reporting Liquidity risk & ALM   RegTech Industry Categories Banking   Oracle has consistently emerged as a category leader across multiple specific solution categories by Chartis across the year. The categories are listed below: IFRS 17 Technology Solutions: Market and Vendor Landscape 2019 Financial Crime Risk Management Systems: AML and Watchlist Monitoring 2019 Artificial Intelligence in Financial Services, 2019: Market and Vendor Landscape Financial Crime Risk Management Systems: Enterprise Fraud 2018 CECL Technology Solutions 2018 Technology Solutions for Credit Risk 2.0 2018 Balance Sheet Management Technology 2018 Data Integrity and Control in Financial Services - Market Update 2018 Not far behind Oracle has also been featured as a best of breed solution in the following categories. Risk as a Service for the Buy-Side 2018 Financial Crime Risk Management Systems: Know Your Customer 2018 The wins revealed the strength of Oracle’s technology with the OFSAA portfolio of applications and continued commitment towards providing world class solutions in the risk technology space. To read more about our solutions for banking industry please visit oracle.com/financialservices

Oracle retains its 2nd best risk tech provider position in Chartis RiskTech100® 2019   Oracle won 5 category awards while being ranked 2nd in the Chartis RiskTech100® 2019 for the 3rd consecutive year....


Could Latency Determine your Bank’s Rating

As the global financial industry moves towards real-time payments, banks will lose their relevance unless they can meet customers’ need for speed. Almost all major financial markets have taken steps to make real-time payments the default for both consumer and corporate customers, driven by new legislations like SEPA Instant in the Eurozone and the New Payments Platform (NPP) in Australia. According to Forrester’s latest findings, 90% of banks worldwide are building payments APIs with the explicit goal of improving visibility and agility – responding to demand for ever faster, more convenient payments. Some reports suggest that more than 1 in 2 corporate banking clients will choose their principal bank based on which institution provides real-time payments that match the speed of business. As real-time becomes the default for payments processing, banks will find it increasingly difficult to justify fees or premiums for offering such capabilities. Soon, banks could even be ranked or rated according to their speed of payments handling – something made increasingly possible and transparent with new industrial standards like SWIFT GPI. Corporate banking clients today expect the same speed of transaction that they experience as consumers, if not faster. They demand immediate, real-time access to funds and instantaneous responsiveness as part of how they gain and maintain a competitive edge. Banks need to go beyond traditional batch processing and embrace automated, even AI-enabled models if they want to survive these pressures from customers. Staying secure, at speed The challenge, for many banks, will be this: how can they maintain the fidelity of their business offerings at increasingly taxing speeds? Maintaining compliance and good governance of corporate transactions already poses a sizable challenge; how much more so when dealing with a much higher volume of payments at steadily rising velocity? Forrester’s research suggests that 75% of banks worldwide see lengthy compliance and risk evaluations as the primary barrier to payments transformation, even more than those struggling with legacy infrastructure and processes (70%). To break the speed barrier, and maintain or even augment their reputation amongst customers, banks will need to accelerate not only payments but the way in which they secure and govern them. Automation may be the key to doing so. Banks which automate their payments processes stand to reduce handling time by up to 40%, even as they radically improve the accuracy of those payments. By automating similarly repetitive processes such as Know Your Customer (KYC) or anti-money laundering checks, banks could significantly speed up their compliance routines – to the point of delivering real-time compliance that matches the ever-increasing speed of payments themselves. Applying analytics to their growing wealth of compliance and regulatory data could also help banks profile customer risk and flag suspicious transactions with much greater precision – simplifying the payments value chain and driving up operational efficiencies in a way that supports, if not enables, far broader digital transformation. At the same time, banks would do well to centralize their payments handling. At present, many banks still operate multiple concurrent payments systems in siloed models where cross-system integration is rare. Bridging those silos, and drawing all payments handling under a single hub, should eliminate those duplicate processes while also consolidating all payments data in a single place – making it much easier to develop new APIs, gateways, or other services based on analysis of that data and customers’ underlying needs. Some real-time payments standards, like Australia’s NPP, already demand higher levels of real-time service integration beyond just payments themselves. Banks would do well to shift gears ahead of regulation and centralize their systems to lay those solid foundations for further innovation and platform-building. Ultimately, banks will only thrive if they can continue increasing the speed of payments as part of broader improvements to customer service. Adopting real-time payments is just the start: banks must fundamentally streamline their compliance, security, and even data sharing processes if they are to match the speed at which their customers seek to operate. What opportunities do you see for banks to turn customers’ need for speed into a competitive advantage? Join us at SIBOS 2019 to learn more about what it means to deliver lightning-fast payments and how to meet customers’ need for speed. www.oracle.com/goto/sibos For more information: Website: www.oracle.com/corporate-banking Email: financialservices_ww@oracle.com           Follow us:    Linkedin: https://www.linkedin.com/showcase/oraclefs/ Twitter: https://www.twitter.com/oraclefs

As the global financial industry moves towards real-time payments, banks will lose their relevance unless they can meet customers’ need for speed. Almost all major financial markets have taken steps...


Pricing and Billing in the Cloud: Putting it into practice

Cloud pricing and billing has come a long way in the last few years and has gradually over time evolved from a disruptive innovation to a pervasive reality. We are beginning to see many financial institutions thinking about it, experimenting with it, and are gaining a deeper understanding of how it is shaping up to be a major paradigm shift in revenue management. Why this is happening now: The shift to recurring subscription revenue models and increased customer demand for customized pricing and billing options are all converging to set the stage for this opportunity. To focus on recurring customer relationships, the very foundation from which an enterprise operates, not only needs to be re-established but also needs to be “modernized”. Pricing and billing in the cloud-catchphrase or practical approach? Historically pricing and billing application implementations have been lengthy, costly, and to some extent unpredictable, with extensive customizations and expensive consulting engagements. The cloud changes everything. Pricing and billing in the cloud, gives you all benefits that a cloud solution promises - faster deployment, high availability, quick scalability and business agility. We are beginning to see many financial institutions thinking about it, experimenting with it, and are gaining a deeper understanding of how it is shaping up to be a major paradigm shift in revenue management. The advantages are clear: Is transitioning pricing and billing to the cloud only about cost optimization? For many business leaders, the phrase “cloud transformation” is synonymous with “cost savings”, and that’s understandable. A recent analysis, found cloud application projects deliver 3.2 times the ROI of on-premise ones. Suffice to say, that’s a staggering number. Beyond cost savings, the benefits that come with pricing and billing cloud adoption are profound. Enterprises can: Make more-precise and more-profitable pricing decisions with built-in analytics: Today’s cloud pricing and billing applications have built-in analytics that help financial institutions monitor and act on key events during the customer life cycle Improve customer relationships by providing customers with timely, accurate, and transparent pricing and invoicing. Cloud pricing and billing eliminates manual processing and nonvalue work, thereby reducing the likelihood of errors and saving time Gain real-time insight into revenue and profit margin estimates. By using cloud-based pricing and billing, CFOs and line-level managers can analyze up-to-the-minute financial situation and performance obligations, allowing for better-informed, strategic decision making Cloud based pricing and billing can be easily tailored to fit the exact needs, compared to the ‘one size fits all’ design of on-premise systems. In the cloud, financial institutions can change processes, rules and other conditions easily and rapidly Offer personalization with innovative, flexible pricing and billing: Intelligent billing and charging models that are reflective of consumption behavior Strategic values to exploit: Take the case of a top consumer and wholesale bank. Once it’s pricing and billing is on the Cloud the bank discovers these value additions: Using a pre-configured application, the bank gets off the ground quickly. It takes just six months to go into operation and helps the bank take services to existing and new markets that much faster There are fewer disruptions as upgrades are delivered regularly and automatically, which means near zero downtime It has the freedom to scale up and down as needed - and fast, making it easier to quickly pilot new services on a limited scale - and progressively scale to millions of transactions as necessary, thereby accelerating innovation With many compliance and security measures baked-into the cloud, the bank no longer needs to maintain internal extensive security systems nor does the bank have to spend time and effort on compliance procedures The bank has expanded its operations internationally and quickly conquered new markets with built-in localizations that address local business requirements With seamless sharing of enterprise information and direct integration between other cloud-based and on-premise source systems, the bank has been able to reduce inefficiency caused by siloed systems. The bank has also gained a single source of truth that cascades all operational functions and is able to make business decisions more accurately and quickly Financial institutions that embrace cloud pricing and billing today are more likely to see a greater payoff tomorrow. By moving pricing and billing to the cloud, financial institutions can achieve a sustainable competitive advantage by transforming how they operate internally and how they deliver value to customers. See how Oracle can help you create Tomorrow’s Pricing and Billing, Today at www.oracle.com/goto/sibos For more information: Website: www.oracle.com/corporate-banking Email: financialservices_ww@oracle.com Follow us: Linkedin: https://www.linkedin.com/showcase/oraclefs/ Twitter: https://www.twitter.com/oraclefs

Cloud pricing and billing has come a long way in the last few years and has gradually over time evolved from a disruptive innovation to a pervasive reality. We are beginning to see many financial...

Big doesn’t have to mean slow, for Open Banking

Do smaller, nimbler fintechs have an inherent advantage over traditional financial institutions when it comes to open banking? It may certainly seem so, but that may not be the case. In fact, expertise that larger banks bring to bear – particularly in the areas of B2B transactions and corporate banking – may give them the critical mass to develop much broader, deeper offerings, and even establish themselves as platforms of choice in the open banking ecosystem. But they will need to accelerate their adoption of more open data standards if they want to build the necessary momentum and avoid ending up at the back of the race for customers’ loyalty and attention. Bigger isn’t better…or is it? The scale of traditional banks has often been held up as a roadblock to their adoption of open banking – and it’s true that smaller financial institutions and fintechs can typically adjust their infrastructure and processes much faster than their larger competitors. But traditional banks have something which these smaller players often struggle to achieve: breadth and depth of service offerings, especially in B2B and corporate disciplines which require more specialized knowledge or technical mastery. Couple this with the faster, more streamlined data sharing of open banking standards, and traditional banks find themselves with an opportunity to own a much more comprehensive swathe of the banking services pool than fintechs or smaller institutions – who typically focus on just one core offering – may ever be able to. As banks expand their services and grow transaction volumes, they also gain more and more data to then offer to other service providers in the open banking environment. That has the potential to create a virtuous cycle which eventually establishes the bank as a platform-of-choice – both for businesses looking for a seamless, fully-integrated corporate banking experience, and other providers looking to gain new customers or enter new markets. In an open banking environment, platform providers hold a significant and defensible advantage, and the critical mass of traditional banks – both in providing core services like payments and cross-border transactions, as well as strategic value-adds like Know Your Customer (KYC) and anti-fraud protection – puts them in good stead to take up that position. Riding the regulatory wave To take advantage of these opportunities, however, traditional banks will need to adopt as proactive a stance as possible towards open banking – particularly when faced with its rising tide of regulation. New standards and directives like PSD2, for example, can be treated as impetus for innovation in how banks connect, cross-sell, and integrate products varying from faster payments to cross-bank handling of cash management. Banks which can develop the solutions and platforms for these new open services – like multi-bank cash management solutions for SMEs – stand to generate tens of millions of dollars in additional revenue. For large banks to claim their advantage over smaller competitors, they will need to view these new directives – and open banking more generally – as a matter of customer experience rather than forced adaptation. The movement away from closed-off, proprietary services into open APIs, the forging of new partnerships in the cloud: all these should ultimately be guided by what the bank’s customers want and need, and how the data from those customers might be used to further improve that experience across the entire financial services ecosystem. Banks who move first will gain a valuable head-start on the race to become platforms-of-choice: Citi’s proactive move to enroll with the UK’s Open Banking Directory sends a clear message that it, and its data are literally open for business – and committed to delivering as streamlined and cohesive a banking experience for their customers as possible. Banks must stay at the front edge of the regulation wave, whether by adopting new core systems or preparing their data for third-party use, if they want their size to be a source of momentum instead of slowing them down. Join us at SIBOS 2019 to learn more about what open banking means for today’s financial institutions and how to turn impending regulation into a catalyst for change.www.oracle.com/goto/sibos 

Do smaller, nimbler fintechs have an inherent advantage over traditional financial institutions when it comes to open banking? It may certainly seem so, but that may not be the case. In fact, expertise...


Oracle a Leader in 2019 Gartner Magic Quadrant for Global Retail Banking

Oracle is excited to be named a “Leader” in the Gartner Magic Quadrant for Global Retail Core Banking Report, for the second year in a row. Gartner notes that “Core banking market demand keeps surging, underpinned by digital banking transformation, with an increased focus on commercial off-the-shelf packages, public cloud and open banking initiatives.”   Quadrant Descriptions: Leader  “Leaders in the global retail core banking market tend to possess a high-order market understanding that helps in lead generation and ultimately in achieving more sales. In addition, they make it their business to monitor market trends and funnel progressive innovation into their product roadmaps. Most of them possess software development quality certifications (such as Capability Maturity Model Integration [CMMI]) or are pursuing them. The Leaders are also, without exception, “thinking small” or targeting component-based architecture as a gateway to providing increased accessibility to the granular functionality that banks need to drive the basis for differentiation. Leaders have high viability and great customer feedback, even though lately the increase in the number of sales has brought challenges in supporting customers at high standards. Leaders also focus on innovation — and the innovation trends that affect this particular market. They especially focus on trends with visionary capability in managing the ecosystem for open banking platforms by fostering open banking with their products and services in a collaborative environment with their ecosystem partners. They also leverage the cloud opportunity by gradually making their product more cloud-friendly with “APIfication” of the components and by introducing cloud-native components.” Oracle’s FLEXCUBE is a complete retail banking product suite for consumer, corporate, investment, private wealth management, mobile and internet banking, consumer lending, asset management, and investor servicing, including local and cross-border payments across channels and networks.  To view the full report, click here For more information on Oracle’s FLEXCUBE please visit our website at: https://www.oracle.com/industries/financial-services/       financialservices_ww@oracle.com          Follow us: Linkedin: https://www.linkedin.com/showcase/oraclefs/ Twitter: https://www.twitter.com/oraclefs Attribution: Gartner, Magic Quadrant for Global Retail Core Banking, Don Free, Vittorio D’Orazio, 22 July 2019 Disclaimer: Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a purpose.

Oracle is excited to be named a “Leader” in the Gartner Magic Quadrant for Global Retail Core Banking Report, for the second year in a row. Gartner notes that “Core banking market demand keeps...


KeyBank wins Celent Model Bank 2019 Award for its Digital Platform Transformation with Oracle

We are exhilarated that one of our Customers – KeyBank, wins Celent Model Bank 2019 Award for Digital Platform Transformation. Redefining Customer Experience, from the Client Perspective KeyBank is a leading super-regional retail bank in the United States, with US$138 billion in total assets as of December 31, 2018. It is the first super-regional bank to complete an IT transformation project of such scale. KeyBank completed the transformation while integrating its acquisition of First Niagara Financial Group (FNFG) into its operations and systems. The project, Digital 17, had the goal of accelerating KeyBank’s journey to become a fully digital bank across four significant transformational aspects.(Figure 1) Figure 1: 4 Major Transformational Aspects of KeyBank’s Digital 17 project. KeyBank adopted an agile delivery approach fueled by DevOps automation tools. The tools enabled them to deliver the system change rapidly during the project as well as when the project went live. With this technology adoption, KeyBank redesigned its Retail Banking user interface to be digital-centric, bringing an overall improvement in their customer experience. Impact of the Digital Transformation The transformation saw a 17% increase in the number of digitally active Customers for KeyBank. Their Net Promoter score also improved 15% year over year. Notably, KeyBank’s app store rating jumping from 2.5 to 4.5, an all-time high for the bank. KeyBank also saw its new banking product rollout time reduced from 9 months average to a monthly basis. Their Internet and native mobile apps also share 80% of their code base, reducing maintenance costs and code deployment time. Further details of the transformation impact in Figure 2.  Figure 2: Summary of Key Impact, KeyBank’s Digital Transformation. The Celent Model Bank awards are given for Best Practices of technology usage in different areas critical to the success of a bank. Banks judged on the three main evaluation criteria of Demonstrable Business Benefits, Degree of Innovation, and Technology / Implementation excellence. KeyBank won the award for Digital Platform Transformation due to the significant improvement in its retail banking client experience, its IT cost savings and the technological flexibility achieved. Technology-enabled KeyBank’s growth, facilitating its integration with First Niagara Financial Group. Celent assessed this as a critical core competency for US super-regional banks. Find out more about KeyBank’s Digital Journey   Keybank Case Study Redefining the digital client experience, Winner of Celent Model Bank 2019 Award for Digital Platform Transformation: Download Now             Video KeyBank’s transformation journey | Amy Brady, Chief Information Officer, Executive Vice President, KeyBank: Watch Now   For more information: Website: www.oracle.com/banking                                             Email: financialservices_ww@oracle.com           Follow us:        Linkedin: https://www.linkedin.com/showcase/oraclefs/ Twitter: https://www.twitter.com/oraclefs

We are exhilarated that one of our Customers – KeyBank, wins Celent Model Bank 2019 Award for Digital Platform Transformation. Redefining Customer Experience, from the Client Perspective KeyBank is a...


Banking as a Service: Financial Innovation Is Finally Coming to Corporate Treasury

Consumers have come to expect a high level of technological prowess from their banks: innovative products, tight integration with popular web services, powerful mobile apps, and real-time transaction processing. But until recently, the enterprise corporate treasurer and payments groups have been left to deal with outdated portals, file transfers, batch payment processing, and a lack of transparency into transaction status. Now, however, corporate customers are demanding the same kind of customer experience they’ve come to expect as consumers. The banks that succeed in delivering this improved experience will be rewarded with greater market share and increased revenue. Those that fail to deliver innovation quickly will find themselves falling behind. The rise of banking as a service (BaaS), supported by open banking API standards, has given commercial banking the boost needed to improve the customer experience, develop new business models, and compete/collaborate with their fintech challengers/enablers. Banks that deliver these services also benefit from lowering onboarding costs and delivering a much simpler and rapid onboarding process for their clients. Corporate Customers Have Become More Demanding The key driver when it comes to the evolution of commercial banking is that corporate customers’ expectations are based not on their experiences with commercial banks at all, but on their experiences as consumers. For years, online retailers have set the standard for an easy, intuitive experience at every step of the shopping experience, and commercial banks must provide the same level of user experience to their corporate banking products. Corporate clients are used to the end-to-end visibility that ERP software provides them across functional silos such as finance, procurement and supply chain management, and they want their banks to integrate seamlessly within that ecosystem, sharing data to prevent inaccuracy and improve process efficiency. They don’t want to duplicate efforts by logging in multiple times to a bank’s portal to complete a payment or check the status of transactions. More importantly they expect their user experience to be as seamless and consistent as their existing ERP systems.  Information that is available from banks, whether it is payment status, cash information, future cash flow projections, etc. should be made available seamlessly and right within their existing systems of record. Innovate or Go Home The changing technology landscape, including the rise of artificial intelligence (AI), machine learning (ML), and blockchain, is driving new business models that can help banks innovate to meet and even exceed their corporate customers’ expectations. BaaS unbundles individual banking services including payment processing, treasury management, and working capital financing, and embeds them where the customer is, such as a corporate ERP system. BaaS is driven by open banking, which enables third parties or the banks customers or partners to safely and securely access accounts (with customer consent) to gather transaction data or initiate transactions on the customer’s behalf. In this ecosystem, the bank connects to third parties via an open application programming interface (API) for each service it offers using the banking as service layer At a high level, BaaS for Corporate Banking consists of 3 layers that must function together: The bank’s APIs exposed as a service on the Banking As Service Layer/Portal. This layer should be connected to the underlying core systems of the bank and expose key bank services such as payments, payments tracking, liquidity services etc for the corporate bank to easily consume and embed into their applications. This allows the banks, fintech partners and others to seamlessly extend the banks services and create rich new user experiences. The ERP /Treasury applications that can be extended to provide a seamless banking experience fully integrated and authenticated within the bank The secure API connect cloud layer that connects the bank’s system to the ERP ensuring data exchange is completely secure, obfuscated and meets bank security and compliance standards Oracle’s recently announced partnership with Citi is an early example of how BaaS can work. Citi will use Oracle ERP Banking-as-a-Service Connector, which integrates into the Citi Treasury & Trade Solutions (TTS) via Citi’s own Banking APIs. That connectivity allows corporate finance organizations to initiate payments and gain better visibility into transaction and real time balance statuses from within the Oracle ERP platform, which supports the sending of payment information directly to Citi. Oracle’s payment solution enables banks to unify payment processing, engage in real-time global transactions, prevent fraud, and ensure faster time-to-market for payment services. Increased transaction velocity also means greater return on the bank’s per-transaction revenue.  The Connector provides joint customers with a fast, efficient financial supply chain, from the transaction through to payment, eliminating friction and enabling enterprises to seamlessly complete transactions. Citi and Oracle’s collaboration uses the CitiConnect API Suite and the Oracle Open Banking Platform together to make it a better and faster experience for our clients to connect to Citi via the Oracle ERP cloud. This partnership has achieved in 12 weeks what would typically take a client to develop in 12 months.  Take a look at the video below for details about this solution: The potential of BaaS goes way beyond payment processing, however. In the BaaS model, banks leverage APIs to create an integrated financial ecosystem of corporations, fintechs services, and other banks. This enables all parties to undertake faster transactions while the bank retains control of key financial aspects of its corporate customer’s business. Thanks to this connectivity, banks can get real-time insights into company global liquidity and underlying global account structures previously unavailable. They can offer customized liquidity solutions and intelligent client recommendations that, for example, automatically transfer excess working capital into and out of high-yield instruments or lines of credit as necessary. In addition, banks can leverage emerging technologies such as AI, ML, IOT and blockchain to offer continuous innovation and new revenue streams. For instance, a bank could use AI for forecasts to recommend financing or investment products based on the corporate customer’s financial position. This approach enables banking solutions to be delivered as a service, allowing clients to access banking and treasury services from the same systems they use for daily business transactions instead of disparate banking platforms. Oracle’s Digital Innovation Platform for Open Banking offers financial institutions a secure, scalable, enterprise-grade platform with a holistic set of banking APIs. This approach allows banks to reduce the cost of integrating new fintech innovations or delivering their own, while improving the customer experience and enabling new business models. To learn more about Oracle Innovation Platform for Open Banking, visit: www.oracle.com/industries/financial-services/digital-innovation-platform.html      

Consumers have come to expect a high level of technological prowess from their banks: innovative products, tight integration with popular web services, powerful mobile apps, and real-time transaction...

Financial Crime and AML Compliance

Oracle joins FCA's Global AML & Financial Crime TechSprint to develop solutions for Fighting Financial Crime.

Oracle part of "Team Citadel" which won first place in the TechSprint  "It takes a network to defeat a network."   One of the key themes that emerged from the United Kingdom Financial Conduct Authority's 2019 AML & Financial Crime TechSprint was the importance of data and knowledge sharing amongst relevant bodies in identifying and impeding complex criminal networks.  Ten cross-industry teams, with more than 100 participants, competed in this year's event, as well as c-suite executives, professional bodies (such as FATF) global regulators, law enforcement representative and academics who attended the final presentations and competition judgment.   Members of Team Oracle (Oracle Research Labs – represented by Iraklis Psaroudakis, Sabrina Senna, and remotely assisted by Miroslav Cepek and Riva Nathans, and Financial Crime and Compliance Management, represented by Matthew Long) collaborated with Westpac, Citi, Privitar, DataRobot, Bureau van Dijk, the Financial Conduct Authority (FCA) and Companies House as "Team Citadel" and emerge as winners in this year's highly competitive event. The Team Citadel prototype solution was developed to help address the pending statutory 5th Anti Money Laundering Directive ("5AMLD") requirements associated with UBO reporting and data discrepancies between Financial Institutions and Companies House and to help reconcile those discrepancies without breaching privacy legislation and data protection. Besides, this solution was also submitted for consideration as part of the consultation to enhance the role of Companies House and increase the transparency of UK corporate entities and help combat economic crime. The Citadel team was able to provide valuable insights into the synthetic data supplied during the TechSprint, such as identifying and highlighting missing or inconsistent Company and UBO data held by Companies House and the Banks used in this exercise. Oracle's main Team Citadel focus was on using #graphtechnology #PGX to create the golden networked source of UBO data, post encryption and to carry out some examples of graph query pattern matching (such as finding and visualising the "neighbourhood" of the UBO(s) with connections to the most companies), graph analytics algorithms (such as Pagerank) and network visualization. Oracle was also one of only five technology solution providers invited by the Regulators to participate in the supporting AML Techfair event, which was an opportunity to discuss and present our innovative Anti-Financial Crime Solutions to attendees. The session focus was on the usage of AI/Machine powered solutions to uplift investigations and the potential to facilitate information sharing. Matthew Long, Director, Financial Crime & Compliance Solution Consulting, who was part of Team Citadel and represented Oracle at the AML TechFair noted,  "An underlying theme of the TechSprint was, "it takes a network to catch a network," and the FCA certainly helped create that environment with this event. The complex cross-jurisdictional problems facing the financial industry today can only continue to benefit from cross-organization support, collaboration, and sharing. This was a genuinely well organized, inspiring event and at times an emotional reinforcement, if we needed it, that partnership and collaboration is the only way forward in the ongoing fight against financial crime. Iraklis Psaroudakis, Principal Member of Technical Staff, Oracle Labs, who was part of Team Citadel noted,  "The TechSprint is an incredible event that brings together great minds across multiple organizations and fields to help tackle some of the financial world's most complex data and financial crime problems. It was a great honor and experience to be a part of the Citadel team." More About FCA's TechSprint  To help address this global challenge, this year's Global AML and Financial Crime TechSprint (run between 29 July - 2 Aug), explored the potential for Privacy Enhancing Technologies (PETs) such as homomorphic encryption, zero-knowledge proof, secure multi-party computation, etc. to improve the ability of financial institutions, regulators and law enforcement to share information that will assist in the detection and prevention of money laundering and financial crime while remaining compliant with data protection and privacy legislation.

Oracle part of "Team Citadel" which won first place in the TechSprint  "It takes a network to defeat a network."   One of the key themes that emerged from the United Kingdom Financial Conduct...


4 Critical Factors Shaping the Banking Future in Asia Pacific

Asia has become the global banking industry’s epicenter for growth and change. Already some 43% of global banking profits now originate from the Asia Pacific region. By 2021, Asia will generate the largest share of retail banking revenue in the world – driven by a combination of critical mass in China and India, sector maturity in Japan and Australia, and acceleration of growth in emerging markets like Indonesia, Thailand, and the Philippines. Asia’s diversity of services and issues around the region range from the disruptive impact of firms like Ant Financial – originating loans in seconds – to how digital services are filling huge gaps in financial inclusion in emerging markets like Indonesia. The pressure to embrace mobile and digital services, for example, is incredibly high: today, up to 75% of customers demand digital banking in some markets. Virtual banks appear all but guaranteed to shake up markets in Singapore, Hong Kong, Taiwan and Malaysia; Traditional players are also beginning to establish digital banks in developing markets like Cambodia and Thailand.  These firms assert their competitive edge through lower operating costs (running with little to no legacy infrastructure), higher agility, and ostensibly more efficient customer service. However, Asia’s heterogeneity of operating conditions – from high regulation in Australia to the Big Tech-driven free-for-all in China – means that these states of banking are not necessarily the only ways to achieve a decisive and lasting advantage. Different markets, and indeed different banks with varying levels of history and loyalty, will require varying approaches to succeed. Here are four critical factors shaping the banking future that I have identified over the course of our work in the region: “Customer-led” Retail Banking: These banks have inverted their traditional “Product-Out” approach, using their vast stores of data to develop and hyper-personalize products for the consumer. Moreover, the bank no longer limits itself to meeting purely financial needs, but act as a platform to help consumers achieve their dreams and life goals. HDFC Bank in India, for example, now uses our digital core banking platform to offer services such as digital consumer-durable loans and digital loans against non-conventional collaterals like securities and mutual funds. Smaller banks in Asia who can establish themselves as platforms for themselves and partners to provide these “dream creation” services are likely to see rapid growth and customer acquisition. Digital Corporate Banking: These banks extend digital transformation out of back-room operations and into the front-end of B2B banking, using data to maximize clients’ profitability and reduce their risks. We see, for example, that credit lines often take more than 3 months for origination, with 70% of customers in Asia being over- or under-funded due to incomplete credit analyses. Digitizing the corporate credit and lending process allows for the introduction of AI, machine learning, and analytics technologies that can radically improve the speed and accuracy of lending – enhancing customers’ experience of the bank while mitigating bottom-line capital risks for both parties. The same approach can apply across a range of customer-facing corporate banking functions from supply chain financing through to trade services. Protected and Compliant Banking: With financial crime impacting 1 in 2 Asian banks in some way, and some of the world’s most sophisticated criminal networks calling Asia home, the region stands to benefit significantly from a more aggressive, data-led approach to illicit financial activity. These banks seize the opportunity to go beyond just ensuring their own compliance, and apply AML technologies to curtail criminal flows of capital that threaten customers and their communities. Technologies like graph analytics and machine learning, applied to histories of transactional data, can help these banks discover patterns of transaction and behavior that even regulators or litigators may not. That empowers them to play an active role in investigating and prosecuting financial crimes that put not only them but their customers at risk.  High-Performance & Resilient Banking: To maximize their market share and reduce churn, high-performance banks will deploy analytics, AI, and other data-driven tools to optimize on capital allocation, mitigate risks, and maximize long-term profitability. From our latest APAC-wide research on using data to drive business insights, some 66% of global banking executives consider aligning data charting financial performance data and risk very important or critical to success. The research shows clearly that banks need to adapt in a much more agile and reliable manner to changing market, regulatory, and competitive conditions. In the long term, that means both greater returns and loyalty from customers who see their wealth not only protected but consistently grown in even high-volatility environments. There is no definitive “end-state” for Asia’s banks More likely than not, Asia’s banks will progress through several, if not all, of these critical states at different points in their journey to greater customer traction and market share. Each of these states focuses less on technology than it does a specific outcome that the bank might hope to achieve – for itself, and its customers. None of these states constitutes an “end” in itself, but rather a potential vision of the bank at different stages in its journey of ongoing adaptation. Download and read the Oracle Whitepaper on Digital Banking: Evaluating Paths for Progressive Transformation One thing remains constant, however: the time to act is indeed now. From our work with more than 200 leading banks in Asia, we find that irrespective of market the most successful banking transitions take place via a series of measured step-changes, rather than a “big bang” approach to digital transformation. A winning strategy takes constant recalibration and adaptation. The more clearly banks can define how they hope to look in the future, the easier they will move between different states of banking to get there. Connect me at https://www.linkedin.com/in/venkys1/ For more information: www.oracle.com/financialservices financialservices_ww@oracle.com  

Asia has become the global banking industry’s epicenter for growth and change. Already some 43% of global banking profits now originate from the Asia Pacific region. By 2021, Asia will generate the...


The New World of Virtual Banks: Profitable Growth will Define Success

Progressive regulation is creating open and collaborative ecosystems with both banks and customers moving up the technology maturity scale. With customer sentiment ripe for a new way of banking, virtual banks need to grow at scale, leveraging open, cloud-based platforms. While a perfect storm supporting the growth of virtual banks is brewing, success is not guaranteed unless new banks are able to transform into a data-driven, high-performance and profitable organization. Exceeding Your Customer’s Expectations Consistently and Across the Financial Lifecycle Virtual banks globally have done well in the on-boarding process but must prove themselves across the financial lifecycle as they expand into more complex product areas such as SME Banking, Mortgages, and Business Banking. A global survey conducted by Oracle showed that existing customers of traditional incumbent banks are ready for churn not at the beginning of the lifecycle but when more complexity appears in the relationship.  This is where the rubber meets the road. Virtual banks need to have a nimble, friction-free approach across processes, and an ability to act on customer data insights to elevate the overall service experience.   3 Critical Aspects of Running a Virtual Bank Using Data as a Core Asset Across the Business Virtual banks can leverage data insights via agile technology stacks to offer the customer unique personalization. To grow market share and reduce churn, it is critical to implement an analytical architecture and automate using artificial intelligence and machine learning. To ensure long-term profitability, data-driven tools should be used to optimize on capital allocation, customer data management and to mitigate risks. Enable the Strategic Role of CFOs & Customer-facing Teams CFOs have increased responsibility for providing data-driven business enablement: 40% of banking CFOs say they need to provide proactive analysis of future business scenarios. Also, 66% of global banking executives consider aligning financial performance and risk data very important or critical to success.  A common analytics platform helps give a real-time picture of a bank’s business and aligns finance, risk and performance management strategies under the same data-decisioning engine and platform.  Enable Regulatory & Finance Crime Compliance Anti-Money Laundering (AML) technologies like graph analytics and machine learning, applied to histories of transactional data, can help virtual banks curtail criminal flows of capital that put their customers at risk. With the ever increasingly complex business and regulatory landscape, virtual banks need to make use of Know Your Customer (KYC), risk or compliance data associated with running a new bank to gain business insight.  Drive Ecosystems Partnerships The ability to tie up options for eCommerce, transport, lifestyle and payment all in one seamless digital banking experience is critical. Oracle is enabling virtual banks to jumpstart such initiatives with more than 1600 ready to deploy Oracle Banking APIs. Virtual banks can scale and react with speed and agility to incorporate new products and processes onto their platform and easily connect with third-party products — offering more choices to the end user.  The new wave of virtual banks will need to journey through different stages of ongoing adaptation in the bid for growth and profitability, greater customer traction and market share.  Oracle is assisting banks in redesigning the customer journey - right from the API strategy, front-end customer-facing applications to the back-end rails of modern and digital core platforms. The result is better digital services that boost customer value and understanding their needs more deeply across the financial lifecycle.  For more information, pls contact us at: financialservices_ww@oracle.com  

Progressive regulation is creating open and collaborative ecosystems with both banks and customers moving up the technology maturity scale. With customer sentiment ripe for a new way of banking,...

Financial Crime and AML Compliance

Water flows where it’s easiest - Small to medium sized institutions and tackling the AML challenge

For the majority of small to medium sized institutions, money laundering and financial criminality may seem like an issue confined to the news – something that only happens to global players operating high risk products, in higher risk countries. However, the reality is that smaller institutions may now be more at risk of being caught up in money laundering schemes and financial crime activity than their larger counterparts. The risk to smaller institutions was raised recently by the head of the Danish Financial Supervisory Authority, Jesper Berg, who claimed that smaller institutions should be preparing for assault by money launderers as the larger banks are reacting to intense regulatory scrutiny and improving their defences following a series of (ongoing) high profile AML scandals.  A theme echoed in many global jurisdictions. Berg also noted that, “historically they (small lenders) had to worry when somebody came to them with a suitcase and wanted money….. Now they have to worry when somebody comes with a suitcase of money….. What’s changed now is that clearly the bigger banks have upped the(ir) game, and water flows where it’s easiest.” Lack of local resources and centralisation to blame? From a regulatory perspective, whilst the global AML and KYC requirements are similar, many smaller domestic banks or subsidiaries of larger foreign organisations don’t always have the technical infrastructure, sufficient pool of specialist resources or efficient compliance processes, policies and systems in place to be fully compliant and operationally efficient in the jurisdictions in which they operate. For example, the vulnerability to money laundering in smaller institutions was noted by Alison Barker, Director of Specialist Supervision for the UK Financial Conduct Authority (FCA), who stated that, improvements in money laundering systems and controls and an ability to monitor customers, complete  enhanced due diligence and transaction monitoring had been noted for the “largest, most risky institutions.” However, the FCA added that the smaller foreign subsidiaries in the UK in particular had shown fewer improvements, despite enforcements. Similar findings are also evident in other jurisdictions, including in the US, where the federal depository institutions regulators and the U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN)  issued a statement highlighting instances in which certain banks and credit unions may decide to enter into collaborative arrangements to share resources such as staff, technology, or other resources. This initiative, according to the statement, is designed to increase operational efficiencies, reduce costs, and leverage specialized expertise in order to manage their Bank Secrecy Act (BSA) and anti-money laundering (AML) obligations more efficiently and effectively. Overcoming common AML/CTF challenges for smaller institutions Whilst collaboration and sharing will be key in the long fight against financial crime, more short term steps can be taken by institutions that will provide a more immediate impact. Our experience in evaluating and supporting financial crime and compliance management technology frameworks, of all sizes, has highlighted a number of common (if somewhat obvious) shared challenges that should be addressed to help mitigate the AML risks for small to medium sized institutions. Below are just couple: Policy and procedure assessment – foreign subsidiaries For foreign subsidiaries, very often the AML/CTF policies and procedures tend to be enterprise level and largely a derivative on the requirements of the home country. Whilst in principle there are many benefits from centralised governance/monitoring perspective, the localised version needs to be assessed carefully and reviewed regularly to ensure they fully align with the nuances and specificities of the host country requirements. In particular, the host country policy should ensure that there is sufficient independence for the locally responsible teams to be adequately resourced and equipped in order to meet their obligations. (Cost)Effective and efficient behaviour detection and investigation systems AML systems for foreign subsidiaries, particularly transaction monitoring applications, have a tendency to be dependent on enterprise level investments, which also offers many benefits from a cost, governance and monitoring consistency perspective. However, these systems should be carefully assessed to ensure that they are fully adapted to meet the current and pending local AML requirements, such as the pending European 5th and 6th AML Directives, in addition to producing manageable volumes of work for the operational teams supporting it on the ground or in an outsourced environment. Generic monitoring or unchanged processes that are tailored for another jurisdiction may rapidly lead to enforcements in the current climate should breaches occur. For domestic institutions, the systems challenge is somewhat different, as many firms are battling operational challenges coming from legacy, rules-based transaction monitoring and KYC systems that are difficult to adapt or amend to meet new legal requirements due to previous heavy customisation or just a sheer lack of transparency as any system change is heavily dependent on the vendor, consultants or an overly burdened IT team. As such, both smaller domestic institutions and foreign subsidiaries, organisations should be actively assessing the capabilities of their transaction monitoring and investigative capabilities, asking the following questions: How easily can I segment my customer base and apply appropriate thresholds in line with my policy and risk appetite? How can I create new or apply out of the box AML/CTF behavioural scenarios without vendor/consultant involvement? How do I ensure they map against the current and future local AML requirements? How can I easily add new behaviours myself and explain the detection decisions and approach to auditors, senior management and external examiners? Can the solution be on premise and cloud enabled depending on our IT and Compliance strategy? How can I rapidly deploy a new solution if the older one is no longer fit for purpose?   Without doubt, small to medium sized financial institutions will continue to face many compliance and financial crime challenges in the months and tears to come. Challenges made harder in the current climate of increasing regulatory scrutiny, combined with the criminals’ ability to adapt their methods and respond to the increasing controls being implemented within larger firms.  However, at Oracle we believe firms can and should have access to the same high quality and robust technology irrespective of size and we’d love to hear the experiences and insights from those involved in the fight against financial crime within small to medium size companies to see how they are tackling the challenge. For more information on how Oracle can help contact matthew.long@oracle.com  _________ Oracle Financial Services Anti Money Laundering Express Edition leverages more than 25 years of Oracle Anti-Money Laundering expertise to provide a product, optimized for smaller financial institutions, which provides simple and effective operational control and configuration to detect and investigate behaviours of interest. https://www.oracle.com/industries/financial-services/analytics/anti-money-laundering-express-edition.html  

For the majority of small to medium sized institutions, money laundering and financial criminality may seem like an issue confined to the news – something that only happens to global players operating...


The Right Core platform can Drive Success for a New Bank

The banking industry today is one of the most complex ones to operate in. There are several challenges that need to be addressed, for anyone planning an entry into the industry. However, the right technology platform and capabilities coupled with an accelerated launch can help a new entrant not just overcome challenges, but drive growth and success. In several markets around the world, new banking licenses or charters which were scarce until a few years, are now easier to obtain. Consequently, there is an ever increasing number of new banks that have been launched or in various stages of planning/roll-out. These banks are often classified by several names such as challenger banks, neo banks, and digital/mobile-only banks. Firms with a hard-won license to launch a new bank, however, face several industry challenges, which if addressed rightly, can ensure success: Saturated Market: Most markets where new banking licenses have been issued are highly saturated. Retail banking customer segments are also deeply entrenched with incumbent banks for their primary financial service requirements. To drive business and growth in such a market, it is essential for a new bank to offer innovation and new value to demanding customers as well as target untapped markets. Intense Competition: Most markets are also highly competitive with a multitude of players which include traditional incumbent banks with a deep market presence and reach, pure digital subsidiaries of incumbent banks, and nimble FinTechs and startups. Therefore it is essential for a new bank to target a rapid go-to-market with a minimum viable portfolio of products, services, and channels. The agility and flexibility to tweak business models and scale operations are also essential for success. Limited Licenses: New licenses in certain markets are issued with limits or restrictions. For example, they mandate a focus on certain lines of business such as payments or prioritize certain areas like lending to small/medium enterprises. Hence, the ability to quickly establish partnerships can help overcome any limits and provides the necessary agility for a new bank to offer customers additional services, if required. With technology so intrinsic to banking, the right platform and solution landscape is one of the most important factors that will enable a new bank to not just address them, but take advantage of these challenges and drive growth and success. It is therefore essential for a new bank to invest in a core banking platform with the requisite capabilities that drive: Rapid Roll Out: The right core banking platform can help a new bank rapidly launch operations with minimal delays while minimizing risks and costs. A complete, packaged, pre-configured core banking platform enables a rapid roll out. Dedicated clusters enable out-of-the-box market and regulatory compliance. Accelerator packs with preset configurations and industrialized processes help quicken deployment. Ready-to-use products like deposits, lending, payments, etc. can help speed up go-to-market with a minimum viable portfolio. Efficient Collaboration: Partnerships and connected ecosystems, where multiple firms such as banks, FinTechs and, other digital firms share data and build innovative services, are fast becoming a reality. Partnering with third-party firms and participating in ecosystems can also help a new bank explore untapped customer touch points and value chains and allows it to offer a more comprehensive portfolio of services. Hence, the ability to build, manage, offer and consume data and APIs securely, transparently and efficiently is essential for any bank today. Scaling business lines and tapping new business and revenue models also become more efficient. Consequently, a core banking platform that supports global standards and protocols which enable quick, seamless and secure integration with systems and platforms of partner firms and networks is essential to a new bank. Phygital Distribution: While the choice of distribution channels at several new banks today is skewed towards digital or even just mobile in some cases, it is important for a new bank to have the flexibility to leverage physical channels when needed. Physical channels can help drive business growth from un-tapped markets such as under-banked and un-banked customer segments as well as augment engagements for already-banked customer segments. A core banking platform that enables an omnichannel approach which mixes digital and physical channels seamlessly into a ‘phygital’ distribution network is necessary for a new bank to be able to provide comprehensive engagement to its customer segments. Embedded Intelligence: The ability to generate better insights and predictions can help a new bank establish immediate competitive advantages. A core banking platform with embedded Artificial Intelligence and Machine Learning capabilities co-located with data, can industrialize the generation of insights at scale with out-of-the-box business use cases and drive next-generation decisioning. Such capabilities can help a new bank efficiently offer new levels of innovative customer engagement and value. Specialized Micro-verticals: The capability to explore new business lines is also a key requirement. A core banking platform with out-of-the-box functionality for micro-finance, Islamic banking or capabilities that allow the roll out low-cost banking services, can help a new bank target up-tapped markets quickly and profitably. Scalability and Flexibility: The ability to scale operations quickly and cost-effectively is essential for any bank today. A new bank must invest in a core banking platform that provides the flexibility of multi-tenant and multiple operational models to help it cater to regional regulations, market and business requirements as well as customer needs. Additionally, a core banking platform that ensures superior, reliable and continuous performance is also an essential requirement. Selecting the right core banking platform is key to ensuring a new bank’s success. A modern core banking platform with the requisite capabilities is essential for a new bank to address and leverage key challenges and succeed in a complex and rapidly evolving industry.   My colleague Avinash Swamy and I co-authored this blog. We would love to hear your views.  We are reachable at tushar dot chitra at Oracle dot com and avinash dot swamy at Oracle dot com.

The banking industry today is one of the most complex ones to operate in. There are several challenges that need to be addressed, for anyone planning an entry into the industry. However, the...


Fast Track Real-Time Payments Innovation with Oracle and The Clearing House

With over 40+ economies in the world shifting to real-time payments schemes over the last decade, the market demand for immediate access to funds is undoubtedly at its peak. The TCH RTP® not only provisions for real-time transfers and requests for funds but also fills the gaping hole of real-time information through an extensive set of messages. By limiting transactions to credit push alone, it mitigates the risk of unauthorized debits and the cost of follow-up investigations. Most importantly, it creates the foundation of trust for consumers to adopt seamless digital transactions and for fintechs to create evolved use cases around this window of opportunity. Fostering Market Led Innovation for B2B Payments The Clearing House’ RTP® bases itself on an evolved framework of use cases that cater not just to the consumer needs of P2P or B2C payments but focuses equally on challenging use cases around the 23.1 trillion $ B2B payments space. Increasingly, domestic businesses are evaluating the RTP® scheme for most of their settlement needs because of significantly lowered costs of 'invoice to payment reconciliations' and 'receipt re-associations' that promise better cash flow visibility. However, is putting in place a real-time payments infrastructure enough to solve the need for businesses today? Real-time Ready but not Real-time Digital Yet With over 57% of U.S businesses at some point in their individual digital-transformation journeys, the demand for real-time and digital payments is only partially met by the RTP® which provides the foundational network infrastructure native APIs to the ecosystem. Not without thought and as a deliberated upon decision, this whitespace is left to be addressed for technology providers to co-create. Oracle Banking APIs combined with Oracle Banking Payments, unlocks the brute power of this 24x7x365 RTP® infrastructure to create evolved customer journeys across retail and corporate banking.  Leveraging the TCH RTP® ready APIs, banks and fintechs can design simplified user journeys that power not just digital payments but can combine and leverage the 1500 APIs from its stable, to create visibility into cash flows, simplify trade payments, expedite settlements and fortify credit and lending disbursements. These APIs are powered by the Oracle Banking Payments RTP processor, the Universal Payments Hub that processes RTP, ACH, Wires and cross border payments via SWIFT and SWIFT gpi on a single platform. Designed to integrate with complex payment ecosystems, aggregate payments data from across systems and deliver accelerated straight through processing with seamless connectivity to the payments networks, Oracle Banking Payments is now TCH RTP® ready. Collaborate, Innovate and Evolve We invite you to come and experience these products that are designed for collaborative innovation between banks and fintechs. While Oracle’s rich digital APIs helps transform the customer’s payment experience across retail and commercial banking by providing channel agnostic services, data-rich insights and real-time tracking of payables, the underlying payments hub helps businesses scale as they grow, making it a true community platform for innovation. * Carolina Fintech Hub in collaboration with The Clearing House and Oracle is presenting a ‘Real Time Payments Buildathon'. Register for the event to experience the innovation potential of Oracle’s solutions!

With over 40+ economies in the world shifting to real-time payments schemes over the last decade, the market demand for immediate access to funds is undoubtedly at its peak. The TCH RTP® not only...

Financial Crime and AML Compliance

Hiding in Plain Sight: Using Technology To Defend Against The Financial Criminals Costing Banks Billions

We live in a time where news of the next banking or supervisory authority being drawn into a money laundering scandal is a matter of when, not if. The now infamous ‘Troika Laundromat’ serves as the latest stark reminder, with the OCCRP (Organised Crime and Corruption Reporting Project) reporting a complex network of 75 offshore shell companies have been used to channel billions of US dollars belonging to wealthy Russians across to the west. Understandably, this has resulted in widespread criticism of the unwitting companies involved for failing to prevent potentially criminal funds moving through across their global branches. Furthermore, the once well-respected Danske Bank is facing €1 billion of damages filed by up to 70 investors, following allegations that €200 billion of suspicious transactions had filtered through its Estonia branch between 2007 and 2015. The Danish bank revealed 1% (around 28,000) of its retail customers had left the bank, while its chief executive and chairman were both ousted last year. These examples expose serious shortcomings in risk and compliance processes among some of the most established financial institutions in the world.  Clearly, the stakes have never been higher, yet many banks persist in using outdated, time-consuming rules-based processes for their anti-money laundering, KYC and due diligence that history has shown can be circumvented by determined money launderers and other nefarious opportunists. As more high-profile cases of financial crime come to light, the question is: why aren’t financial institutions able to catch them earlier, and how can they and their supervisors better police their own practices? Hiding in plain sight – how are criminals getting away with it? As the ongoing ‘laundromat’ exposure suggests, criminals rely on a sophisticated variety of techniques and mechanisms to obscure their ownership and control of illicitly obtained assets. The most pervasive vehicles for financial crime are shell companies. These organisations will essentially ‘hide in plain sight’ by using global trade and commerce infrastructures to appear legitimate. Due to the anonymity of their ownership, shell companies represent the perfect conduit for money launderers, fraudsters, and other financial criminals seeking to hide their assets and evade taxes and launder criminal funds. It’s becoming far too difficult for law enforcement to pin down the true beneficial owners of these shell entities. Technology is essential to outsmart criminals Clearly, the financial services sector can no longer rely on outdated compliance systems, processes and armies of analysts and investigators to take on this challenge. Given the high volume and complex nature of today’s transactions – combined with opaque and disparate relationships and connections between customers and entities – financial services companies are turning to technology that can better identify and process all the hidden and known connections between the following: Legitimate customers Businesses Criminals PEPs (politically exposed persons) Sanctioned entities Shell companies.   For example, AI and machine learning can create more holistic and contextualised risk profiles or risk scores to determine whether or not banks should enter into a potential client or customer relationship – with anomalies or suspicious activity flagged for further investigation by analysts. Combine this with system-generated recommendations on ‘next step’ considerations and much of the traditional manual exercises (e.g. watch list checking, documentation retrieval, existing relationship checks etc.) are already completed by the system. It means the analyst can now be left to ‘analyse’, instead of ‘clerk’. But for this to work, all that data needs be organised in a much more effective manner and institutions need to have clearly defined what they want and don’t want to see from the system – with all definitions and system-based decisions clearly tested, justified, documented and governed). Currently, when screening individuals against internal and commercially available watch lists, firms typically look to at the following: Customer name Address Date of birth Registration details (corporate accounts or transactions) Information regarding key executives, stakeholders, and beneficial owners (corporate accounts or transactions). Invariably though, anomalies and inconsistencies will inevitably crop up, influencing the accuracy of the screening process and its subsequent results. Data holds the key – preparation is the best form of defence It’s clear that simple data cleansing isn’t a strong enough defence in our increasingly-sophisticated threat landscape. More extensive profiling and auditing of data ahead of screenings need to be enforced, with financial institutions required to collect data concerning: Nationality Country of residence Membership in certain regimes or political parties Close associates (otherwise known as secondary identifiers) Writing system used. Recording this level of detail means pesky anomalies or inconsistencies can be more easily removed, such as white spaces, questionable characters, or fields requiring only one entry that suspiciously contain multiple values, such as a company name or job title. Data can then be optimised to match the original set of rules. Effective screening will differentiate between individuals and entities with common names, but will possess more discrete match rules. With the correct definition and application of rules to customer and list data sources, plus the use of secondary identifiers as part of the screening process, false positives can be reduced to a minimum without increasing risk. This approach empowers organisations to more accurately deploy the risk-based approach demanded by regulators and allows compliance teams to focus their time and investment on higher-risk, higher-probability and higher-complexity issues. This is where the human touch truly adds value. There will always be nefarious activities, but increasingly, forward-thinking organisations are bolstering their defences with machine learning, AI and more meticulous data preparation. If your company is one of those exposing itself to these risks without the correct safeguards in place, then you’re part of the problem, not the solution. If you wish to get in touch please email matthew.long@oracle.com

We live in a time where news of the next banking or supervisory authority being drawn into a money laundering scandal is a matter of when, not if. The now infamous ‘Troika Laundromat’ serves as the...


Transforming Five Key Areas Of Finance Management

If you read our posts about the quandaries of chief controllers and compliance officers and financial analysts and line-of-business managers, you may wonder what finance teams should do. How can they gain the visibility and decision-making ability they need without causing greater fragmentation and complexity in their technology environments? Collaborations with a great variety of banking and insurance businesses leave me convinced that the modern cloud is today’s best foundation for building and evolving infrastructures that can simplify financial processes and provide access to data and analytical tools. In the cloud, software deployments and updates can be fast and non disruptive, and it can become easier to access and integrate business intelligence resources that extend your financial systems. Computing resources and storage are practically unlimited. As the result of research and development backed by billions of dollars in investments by technology leaders, data security in the cloud is more stringent than most banking and insurance organizations could develop on their own. Banking and insurance finance teams need such a cloud-based infrastructure to provide advanced capabilities in five important aspects of their work: Modern financials with efficient, fast workflows for all finance activities, including prompt month-end closings and a scalable, global chart of accounts. They should include accurate, timely reporting on all financial dimensions of interest. Performance management has to provide accurate, anytime assessment of the profitability of company offerings, customer segments, and the business overall. It needs to integrate with financial actuals and meet the insight requirements of finance-team roles. Regulatory and audit reporting must clearly demonstrate the effectiveness of the company’s compliance efforts. Automated reporting mechanisms have to sync with evolving regulatory frameworks and align with up-to-the-minute financial performance results. Portfolio and customer analytics helps banks and insurance companies understand their customers and offer them the right products they want. Analytics can highlight what is happening today and what the future might look like if certain actions are taken or customer behaviors and market trends persist. Integrated risk and finance management should provide compliance and risk officers with reconciled, comprehensive information that helps them understand and mitigate existing and emerging risks. A cloud infrastructure developed by Oracle, the ERP Financial Cloud, can serve as the consolidated resource finance teams can use to perform all their business management and analytical tasks. This cloud foundation, often deployed in integration with Oracle Integrated Finance and Risk Platforms, makes it possible for banking and insurance CFOs and finance teams to deliver their services effectively in our five key areas of finance management. Its basic elements are simple: The platform connects data sources companywide with role- and process-specific functionality that includes the critical areas of accounting, planning, compliance, and customer insight. Such roles as chief controllers, compliance officers, financial analysts, and line-of-business managers find tools designed for their unique requirements. A business insight layer delivers analytical and reporting capabilities across the key finance roles and processes, based on consolidated data from all pertinent sources. Finance managers can use collaboration tools to share insight and enable sound decisions within their own team or with executives and business groups across the company. Feel free to get in touch with me at yogendra.p.singh@oracle.com.

If you read our posts about the quandaries of chief controllers and compliance officers and financial analysts and line-of-business managers, you may wonder what finance teams should do. How can...

Industrialization of Risk and Regulatory Processes in Banking – The Way Forward

Blog By: Saloni Ramakrishna - Author, Senior Director, Oracle Financial Services I had, in my earlier blog in finextra, said “The objective of Industrialization is to drive innovation and efficiency by reengineering the value chain to add measurable value”. In this blog, I take a deeper dive into process of Industrialization with Stress Testing platform as the use case to illustrate the point. The regulators are demanding consistency across reports as well as transparency and line-of-sight into all data, risk & regulatory processes. Banks are challenged both on consistency across reports given the siloed approach, as well on transparency and line of sight as there are multiple manual interventions trying to stitch together processes that are piece meal automated. Echoing this, a study states that “86% of institutions face challenges with risk data aggregation capabilities, overarching governance framework and connected infrastructure”. This chasm between expectation and reality of “connectedness” sets a strong business case for Industrializing the critical processes of Risk and Regulation with an active Process Orchestration capability. It is pertinent to point that implementation of an industrialized approach is most effective when done on a use case basis.  I have chosen Stress Testing platform as the use case for three reasons - a) It is both a regulatory and an internal requirement with regular occurrence at periodical interval, b) Is a huge cost, and c) It is a great example to illustrate the benefits of industrialization because it answers all the below qualifying questions with a resounding “Yes”. Does it have a critical mass in terms of Volumes? Is the current process resource intensive? Are there manual interventions at multiple points? Is there a sizeable opportunity to reduce cost and increase revenue if the process is streamlined and automated? Is it a critical process for the organization? Can it be automated? First step, post use case finalization, is to identify the building blocks that are required. Given our use case, the building blocks needed are Data Preparation that includes Data Sourcing and movement Data Quality and reliability enhancement Data Governance layer that looks at Controls, Key indicators, Assessments, issues and action management. Creation of a clean, consistent and comprehensive “Regulatory Hub” Modeling tools and techniques Stress approach methodology and Stress scenarios. Computational steps for arriving at Stressed Capital under different stress scenarios Having identified the building blocks the next step is to define a lean operating model or Process Model. The challenge and the opportunity here are to identify and eliminate redundancies / duplications; spotting the synergies/ commonalities; reducing manual interventions to the minimum and reuse of data and process artefacts where appropriate. The question I have encountered most often, is should the process models for similar use case be the same for all banks – the answer is “NO”, just like the operating model of two car manufacturer are not identical at all steps. The building blocks will be largely common though, given the common objective – the difference would be in how the problem is approached and solved. Let me illustrate this using two samples of process models of banks designed for calculating Stress capital – the first wants its platform to be designed on the regulatory requirement representing the regulatory flow covering Actual, BAU (Business as Usual) and Stress scenarios. It stresses its models say PD, LGD and EAD with the stress values (GDP Fall, adverse Interest rates or Forex rates etc.) and uses the model outputs to arrive at stressed capital. The second takes a more fundamental approach of stressing the balance sheet and P& L components based on the stressed market and economic scenarios, then calculate PD, LGD and EAD values and arrives at Stressed Capital. Which is the more appropriate approach – well both have their rationale. Can the same bank have both approaches in an industrialized model – the answer is yes – have a common flow for the data preparation block and then branch off into two models – One regulatory the other as internal. This capability not only saves cost but builds in great operational efficiency while providing the flexibility required.  Once the lean process model is defined and approved it can then be automated with appropriate technology that provides unified analytical platform. The objective is to stitch together the different building blocks allowing seamless flow of the data, process in a transparent and auditable manner (remember, this is the risk and regulatory platform that must be audit and regulatory scrutiny enabled.) The above is the preparatory phase. The dynamic part is when the process is executed and is to be monitored - through “active Process Orchestration”. One of my banker friends, calls this as “The central master piece” for an industrialized approach as it enables banks to actively monitor, control and manage the process such that it delivers not just cost savings but measurable value through standardization, automation and traceability.  The below video captures the highlights of that conversation. As we summed up in the conversation, Industrialization of Risk and Regulatory processes in banks is not just a process for process sake but one that will make strategic contribution to the organization by delivering sustained measurable value.

Blog By: Saloni Ramakrishna - Author, Senior Director, Oracle Financial Services I had, in my earlier blog in finextra, said “The objective of Industrialization is to drive innovation and efficiency by...


When Finance Managers Can’t Meet Expectations

CFOs and finance managers in banking and insurance companies often mention that employee turnover is high even while job security is strong and salaries are competitive. According to some industry observers, CFOs themselves stay roughly five years in their role—not at all long for a high-visibility executive. It’s practically impossible to find out trustworthy reports about finance-team turnover. Statistics usually refer to business roles across entire companies, which mean they include call centers and other more volatile operations. Finance-team members I know tend to be loyal to their organizations even when they are not happy with their tools and working conditions. Even so, the hurdles they need to negotiate every day may well cause them to wonder about the working life in other companies. Companies look to finance teams for risk mitigation Analysts have observed that 57 percent of company boards want their finance execs to provide effective risk management. This is one of the top-three expectations for CFOs. For financial analysts working with CFOs to assess and minimize risks as companies strive to win and retain more customers, reviewing and analyzing business data become essential functions. Banks and insurance companies make huge investments when they launch and market new products and services. However, when financial analysts need to determine the impact of these offerings and mitigate the risk associated with innovation, they often encounter difficulties. They typically need to glean customer, market, and financial data from multiple sources. Analysts often have to rely on analytical tools that may not be designed for their industry or that may not reside on the same platform as the data sources. These complexities make it hard for analysts to gain a full view of customer and market trends to make the right decisions in managing performance and reducing risk. Banks and insurance companies often use multiple accounting systems that may be many years old and which aren’t very helpful at delivering business insight. Line-of-business managers and analysts then can be hard-pressed to make strategic planning recommendations based on reliable, comprehensive information. Conventional infrastructures and processes may be dysfunctional today Traditionally, finance teams have often been isolated from the business groups that were responsible for driving growth, generating revenue, devising competitive strategies, or pursuing new customers. Relying on information passed on to them, they were responsible for prudent and efficient financial management. Their scope expanded when regulatory requirements became more complex and when it became necessary for them to contribute to business performance management. But the software tools available to finance teams have not kept up with these tasks. For example, widely adopted, all-in-one ERP systems have often been found to be too inflexible to help finance teams be effective. In fact, legacy ERP software and stand-alone business reporting solutions provoke the most frequent complaints I hear. While finance managers struggle with disparate systems to deliver accurate reporting and gain business insight, the world moves on. Customer preferences can change quickly, and competitors with new business models or from outside of the industry may rapidly cause disruption in once-stable markets. When you can’t fully trust your current reporting tools and data sources, and when it takes too long to transform information into insight, it may be time to change your practices. Imagine what work could be like, for instance, if your company’s data streams and analytical models were completely transparent. Or if you could easily analyze financial performance reporting in context with recent insight on market and consumer trends. It’s Oracle’s goal to empower the finance teams in banking and insurance to minimize risk and drive the best possible business performance. To accomplish this, we have incorporated vast industry and process expertise into software platforms that connect financial management and analytics, like the Oracle ERP Financial Cloud and Oracle Integrated Finance and Risk Platforms. If you want to explore how Oracle aims to make the lives of CFOs and finance teams easier.  Feel free to get in touch with me at yogendra.p.singh@oracle.com.

CFOs and finance managers in banking and insurance companies often mention that employee turnover is high even while job security is strong and salaries are competitive. According to some industry...


What Gets in The Way of Chief Controllers and Compliance Officers?

In conversation with compliance officers in banking and insurance businesses, I’m often struck by the disparity between what they aim to accomplish and the expectations they face—and the tools available to them. The position of the compliance officer, much like the chief controller, has in recent years evolved in parallel with the role of the chief financial officer (CFO), but most software tools have not kept pace. In the past, finance teams were mostly responsible for efficient financial management and reporting. Today, companies look to CFOs and their associates for a more strategic contribution as organizations grow and transform. Business groups and clients alike perceive CFOs and finance team members as highly credible and well-informed business partners. They expect compliance officers and chief controllers, in particular, to act from a position of high integrity and with a clear view of the entire business. Fragmented compliance efforts and limited transparency For many compliance officers and chief controllers those perceptions and expectations may be aspirational, but they do not reflect their working conditions. For instance, an important part of the role of compliance officers is timely regulatory reporting on their company’s compliance programs. Many compliance officers find it challenging to meet reporting requirements because they lack access to reliable, consolidated business information. They must often navigate multiple, disparate data sources and request assistance from IT to do so. When compliance officers cannot easily delve into information and processes, reporting may not be accurate and prompt. Compliance officers face more hurdles when they need to make sure that their organizations adjust to changing regulatory requirements. Such updates generally need to be auditable. Without the visibility and control this effort demands, the interactions of compliance officers with other stakeholders can be protracted and inefficient, which can delay or compromise compliance. The most successful compliance officers are masters at building relationships and working with their peers in the business groups—including IT—to achieve the visibility they need. Compliance officers who know their organization extremely well may be able to succeed this way, but somebody who is new to a company will find it more difficult. Hampered chief controllers and desperate workarounds Compliance officers are always highly conscious of compliance-related risks faced by banking and insurance organizations. Chief controllers, in their turn, are becoming more risk-aware as their companies face intense competition. All too often, growth—especially when it happens through acquisitions—means that chief controllers must deal with a jungle of software tools. It is not uncommon for chief controllers to access as many as 15 different financial reporting systems every day. Under these circumstances, how do you ensure accurate finance management and reconcile financial and regulatory reporting within deadlines? You can invest the effort to become a proficient user of each tool. Or, you can collaborate with IT to get help. However, not all chief controllers succeed at either approach, which may result in longer close cycles and delayed or flawed reporting. Those outcomes, in turn, can lead to decisions that are late or mistakenly based on the wrong assumptions. They also could harm the reputation and standing of the compliance officer and other finance team members involved. The risks of not fully empowering finance teams to succeed are substantial. At Oracle, we enable CFOs, compliance officers, and chief controllers to make the strategic contributions companies expect. We offer a wealth of industry and technical expertise and software tools that make it possible to integrate data sources and analytical applications, including the Oracle ERP Financial Cloud and Oracle Integrated Finance and Risk Platforms. If you want to explore how Oracle aims to make the lives of CFOs and finance teams easier, download our eBook, Empowering Banking and Insurance CFOs in the Digital Era Feel free to get in touch with me at yogendra.p.singh@oracle.com.

In conversation with compliance officers in banking and insurance businesses, I’m often struck by the disparity between what they aim to accomplish and the expectations they face—and the tools...

Financial Crime and AML Compliance

Are FIs Ready for New Wave of Innovation: AML Trends for 2019

Anti-money laundering (AML) and know-your-customer (KYC) compliance have become leading concerns at financial institutions globally today. In 2018, money laundering scandals made headlines, especially in Europe. The Danske Bank scandal, for example, exposed the worrying levels of suspect wealth that flowed, unchecked through European banks. In the aftermath of this, 2019 looks like to be a year when regulatory authorities reassess their regulatory regimes, becoming more tough with enforcement, and less lenient, when dealing with financial indiscretions. Financial institutions under risk of heftier fines, uncontrollable external factors and massive reputational damage will be expected to do much more. Recent joint statement (Joint Statement on Innovative Efforts to Combat Money Laundering and Terrorist Financing) by major regulatory bodies in United States, emphasizes the use of innovative technologies to combat financial crime is an indication of upcoming innovation & trends in financial crime & compliance. In this article we discuss some of the key industry trends which would inspire financial crime & compliance program.   Rapid Efficiency Gain - Robotics Process Automation / AI: Most of the global financial institutions invested in robotics process automation (RPA) in many business areas within their organization. In last 12 to 18 months, RPA investments extended to financial crime & compliance. The most common use cases where RPA has been applied are data provisioning (ETL), information gathering during case review process and suspicious activity reporting narrative. Just by applying RPA for case review processes financial institutions were able to cut investigation time by around 40%. Firms who has no footprint of RPA in their financial crime program yet, will learn from early adopters and continue to enhance their program for such quick wins. Additionally, the RPA use cases will nurture beyond automation and extend to artificial intelligence (AI). Key areas where AI can be useful are for more interactive data mining, Natural Language Processing (NLP) to interpret documents and Natural Language Generation (NLG) to generate suspicious activity reporting case narrative, Optical character recognition (OCR) for Bill of Lading, Ultimate Beneficiary Ownership (UBO) information gathering and many more. Machine Learning/Deep Learning to Increase Effectiveness: Again, like RPA machine learning is not entirely a new trend for 2019. Global financial institutions are leveraging machine learning, mostly during transaction monitoring detection to reduce false positives rate and have gained substantial benefits. However, the application of machine learning is limited to event-based detection only by now, where individual events (red-flags) and its historical disposition learning is leveraged by machine learning model to predict future outcome. A specific event (or behavior) can just be an indicator of suspicious activity and therefore should be assessed in conjunction with other indicators, not in a silo. When events are created for the entity, as soon as there is a suspicious rule hit, the surveillance process and machine learning model is not factoring the behaviors occurred before and after that specific activity. This means the surveillance process is lacking a holistic view, which makes the detection process unproductive. As part of the next wave of machine learning, financial institutions will adopt advance machine learning approaches. Once such as approach is Graph Similarity. In this method, individual events can be correlated based on a network which can be treated as a Graph. And advance machine learning algorithms such as Graph Similarity can be applied to predict future cases.      Power of Data - Financial Crime Data Lake: Financial institutions realize the power of enterprise data strategy in terms of risk, compliance and customer profitability. And that is why enterprise data strategy have been trending for many years now. However, due to the complex nature of money laundering patterns, multi jurisdiction customer network and international regulatory compliance, the holistic view of customer profile from financial crime perspective is limited. Which can be achieved by brining transaction monitoring, customer profile, sanctions, fraud and other relevant financial crime data organized. Finally, financial crime data lake/data mart, can be leveraged for more effective machine learning, model tuning and advance analytics.      Enterprise Investigation Hub: AML and sanctions compliance remains a significant challenge for financial institutions globally, with notable differences between regions. As financial institutions become more complex and more interconnected across jurisdictions, and as rules, regulations and various sanctions regimes continue to evolve, firms devote considerable resources to AML and sanctions-compliance investigations. Such complex investigation requires bringing data from various systems and analyzing the complex customer network. Which is not just extremely expensive but also highlight inefficient, due to the lack of unified investigation platform and technology required to understand complex network. In coming years, financial institutions will be driven to invest in single, unified platform leveraging graph analytics, data visualization, for financial crime data. Which should succinctly express complex money movement patterns, detects multi-hop relationships, and identifies hubs and spokes of activity using advance graph algorithms. Investigation hub which would essentially leverage financial crime data lake as basis can be extended to leverage robotics process automation for more interactive data mining and AI.      The industry has been roiled by a perfect storm of disruptive forces. Complex regulatory-compliance requirements, aging legacy assets and operating models, digital innovation and fintech have rapidly changed the operating environment. The evolving regulatory landscape that accompanies those changes, worldwide political changes and record monetary fines have made AML and KYC compliance a major challenge for financial institutions globally. The stakes are high; regulatory action has produced a wave of investigations and sanctions, jeopardized licenses and found individuals personally accountable and liable for noncompliance. Criminals will always find newer ways to use financial system for illegal activities. The timely detection of criminal activities is the most challenging aspect in the implementation of an efficient program. Several innovative technology-based tools and products are currently available. Though these technology tools will not eliminate financial crime, they will bring it under control to a significant extent, and financial institutions should proactively look at adopting these sooner than later. Hence, the dialog for many organizations specially those who are under higher regulatory scrutiny is about robust program to prepare for unknowns, and not about just cost anymore. 

Anti-money laundering (AML) and know-your-customer (KYC) compliance have become leading concerns at financial institutions globally today. In 2018, money laundering scandals made headlines, especially...


Can your core banking system support your bank’s growth?

The financial services industry is being disrupted by unprecedented levels of convergence and connectivity between people, technology, and businesses. The banking value chain is witnessing a paradigm shift towards unparalleled choice, convenience, innovation and collaboration. This shift is driven primarily by three major factors: Demographics: Digital savvy customers increasingly expect innovative services and engaging experiences, anywhere, anytime and instantaneous service. They also expect services to be more accessible and ubiquitous, available at relevant touch points along different value chains, often beyond the traditional financial realm. Additionally, economic development and financial inclusion directives offer significant opportunities for banks to target the under-banked and even un-banked segments, profitably. Technology: Next generation technologies like Artificial Intelligence and Machine Learning are enabling banks to significantly improve decision making with better prediction of future outcomes, automation of processes and delivery of human-like customer engagement at an unprecedented scale. Advances in Open APIs and Open Banking directives are opening up new opportunities for banks to monetize data and services. They also enable quick and efficient collaboration with multiple third-party firms and ecosystems. Blockchain technologies and systems are also revolutionizing the way data is shared and trusted transactions are conducted. Business Models: Several innovative operating and business models are emerging in the areas of service and data monetization, financial and related marketplaces and Banking as a service (BaaS) where, banking is offered as a utility service to third party firms, almost invisible and seamlessly embedded in any transaction or interaction. BaaS can extend banking services outside traditional banks and beyond banking value chains allowing banks to scale their offerings along and across adjacent value chains and new touch points. All of these factors are coalescing to fundamentally change the industry in the coming years by completely redefining both the way customers experience financial services and the way banks offer them. To address these fundamental shifts, protect customer relationships and business lines and to stay competitive, incumbent banks must double down on transforming their strategies to drive better services, experiences and value for their customers. With technology intrinsic to banking, the right core banking systems and solution landscape is one of, if not the most important factor, that will enable your bank to successfully adapt to these shifts, compete and thrive. It is therefore imperative to take stock of your existing core banking systems and solution landscape to check for requisite capabilities that are now essential for your bank’s success amidst these rapidly evolving dynamics. Here is a quick checklist of essential core banking capabilities: Listed below are key high-level checks that you need to ask of your bank’s core banking system’s capabilities. Accelerated innovation and time-to-market: A modern core banking service must enable rapid innovation and time to market of products and services with centralized product management capabilities, high levels of parameterization, end-to-end servicing capabilities, advanced pricing and billing features and easy localization to meet regional requirements. Augmented customer views, predictions, intelligent decisoning: The ability to build detailed pictures of customers through multi-dimensional views coupled with multi-product originations enables the rollout of customized and contextual products and offers. Additionally, a modern core banking system must enable better predictions of future outcomes to help a bank derive new insights and improve decision making through intelligence and automation. Frictionless and convenient experiences: The capability to roll out simplified, frictionless, safe and engaging digital experiences, seamlessly across any channel is essential for a bank today. A bank’s systems must also enable it to easily attract, onboard and service customers contextually on any channel. New use cases, opportunities: A modern core banking system must support complex workflows that enables a bank to easily orchestrate new services through a highly extensible UI and business logic. It should also allow a bank to quickly adopt new use cases like the ability to leverage any data set for machine learning or the ability to interface with any blockchain system. Additionally, it must have out of the box capabilities to enable a bank to quickly tap new and unexplored opportunities like financial inclusion, microfinance etc. Customized strategies and transformation paths: A modern core banking system must be flexible enough to allow a bank to prioritize their business focus, address immediate strategic needs and undertake customized transformation paths to suit unique requirements. It must offer multiple options for transformation while balancing risk through different deployment models like bank-in-a-box or co-deployed/standalone components or on a private/public cloud. Data and services monetization: The ability to efficiently build and manage data and services as APIs will be a key differentiator for a bank. A modern core banking system must have an open architecture and advanced API management capabilities to enable a bank to build, process and manage fine grained APIs, monetize data/services to drive new revenue streams and profit from Open Banking. New business models and ecosystems: A modern core banking system must enable a bank to externalize any business service or business process with the required operational and financial controls as well as develop and participate in broad ecosystems. This will help the bank leverage a BaaS model to seamlessly and efficiently extend and scale its products and services to new touch points and adjacent value chains. Operational efficiency: A modern core banking system must support multi-tenancy and multiple operational models to cater to regional regulations, market requirements and customer needs. It must support multiple operational models – centralized, decentralized, semi-centralized – to suit diverse business requirements. It must also include superior control management, centralization of key operations and intelligent process automation to enhance operational efficiency. Scalability and performance: The ability to scale operations quickly and cost effectively is an essential capability in a modern core banking system. Additionally, the system must ensure superior, reliable and continuous performance. Regulations and compliance: Out of the box support for regulations like Faster Payments, SWIFT GPI, SEPA Instant etc. are essential. A modern core banking system must offer capabilities that help a bank meet evolving regulatory requirements of PSD2, PAD and data privacy and protection directives and leverage them to create business opportunities. Additionally, it must be equipped with enhanced regulatory and compliance controls and help address multi-regulatory reporting requirements. If the answer to most of these checks is in the negative, it is time to upgrade your core banking systems to ensure your bank’s competitiveness and success. Your bank will need to leverage a modern core banking system that includes the latest digital technologies, Artificial Intelligence (AI) and Machine Learning (ML) to elevate customer engagement and value as well as operational efficiency. A core banking system that supports Open Banking, APIs and the Cloud can help you accelerate collaboration with third-party firms and participate in ecosystems that span value chains and do so efficiently and at scale. My colleague Avinash Swamy and I co-authored this blog. We would love to hear your views. We are reachable at tushar dot chitra at Oracle dot com and avinash dot swamy at Oracle dot com.

The financial services industry is being disrupted by unprecedented levels of convergence and connectivity between people, technology, and businesses. The banking value chain is witnessing a paradigm...

Financial Services

Instant PSD2 Compliance, Monetization-Ready

The European Oracle Fintech Innovation Program publishes articles offering insights from curated Fintech partners. This article is based on an interview with Rik De Deyn, Senior Innovation Director at the Oracle European Fintech Innovation Program, and Stefan Hamm, CEO of adorsys. Rik DE DEYN, Sr. Innovation Director, Oracle: Welcome Stefan.  Over the last couple of months, it’s been a real pleasure to get to know you and the group of PSD2 specialists in your organization.   The PSD2 initiative has always struck me as a potential catalyst for Open Banking in Europe.  Is that how European banks and corporates see PSD2, and where are they with their timelines? Stefan HAMM, CEO, Adorsys: With PSD2 (Payment Services Directive 2), entrepreneurs have a real alternative to credit card schemes, as real-time transaction processing opens new possibilities. Since PSD2 is a regulatory EU directive, financial institutions are required to provide the appropriate service in time.  In contrast to SEPA (the Single Euro Payments Area), there is no central authority like the European Payments Council (EPC), that creates and maintains the commercial, banking and technical PSD2 framework. The banks that are looking at becoming ASPSP’s (Account Servicing Payment Service Providers), and the TPP’s (Third Party Provider) that want to be AISP’s (Account Information Service Providers) or PISPs (Payment Initiation Service Providers), will have access to customer accounts (XS2A) of financial institutions.  These parties have been invited to get ready for March 14th, 2019 when the testing phase of the new application programming interfaces (API’s) will start. API’s are the technical mechanism that will allow banks to share customer data with TPP’s securely. The official live start date for PSD2 is Saturday September 14th, 2019. To prevent a Friday-the-13th-disaster, all services must be up and running by then, and all PSD2 participants must have their processes certified by the regulator. We are now three months before the commitment to be ready for testing, and because the directive has different national regulatory frameworks, it is becoming apparent that the EU has 6 or 7 different API standards, like the ones from STET and Open Banking UK. We think that about 80% of the banks will use the NextGenPSD2 format from The Berlin Group, with individual adaptations. We also notice that even just under 10 months before the live launch, not all banks have a truly resilient solution. This is understandable, as the regulation requires deep entry in the core systems. Opening these up is not a trivial adjustment. In defense of the banks, the directive does not provide clear specifications for all details of the technical implementation. This is the reason that much of the lost time went into finding agreements on specifications. Parties that want to go live September 14th will have to largely complete the implementation in June, due to the internal lead times and processes for new products. To reach the March 14th milestone, considerable additional effort will be required.  This will force many of the institutions to find temporary alternative solutions that meet the regulatory requirements. Still, compliance is the highest priority, as non-compliance entails a considerable risk, including liability on the part of the members of the Management Board. The complexity of the implementation, the far-reaching changes and the tight timeframe make the topic so explosive for the banks. Rik, Oracle: It seems like banks are running out of time quickly.  How can Adorsys help banks achieve instant compliance by March 14th? Stefan, Adorsys: We have been working hard on a solution that makes banks PSD2-ready almost immediately. Our customers can obtain a PSD2-compliant sandbox environment for the testing-requirement in March.  The core of the work is the so-called XS2A API, which we have implemented in collaboration with our reference customers. There is no need to integrate existing systems, the PSD2 sandbox contains everything you need to operate as a self-supporting service. To take even more pressure off banks, the sandbox is of course cloud-ready and can therefore be used outside the bank's own infrastructure. Of course, the sandbox environment can be linked to the bank’s back-end systems for the September go-live.  This allows for a smooth transition to go-live, which will be important for our customer’s customers, and the regulator. Rik, Oracle: This is great.  But there are many PSD2 solutions out there.  How do you differentiate from your competitors? Stefan, Adorsys: It always starts with quality people. Our PSD2 team has more than 30 focused employees, including former employees of UBS, Credit Suisse and Consors Bank, part of BNP Paribas. In addition to the pure development performance of the PSD2 team, we also ensure professional market engagement. We have been working on this topic in client projects for a long time and we have achieved a lot.  For example, the sandbox already contains a consent management system.  We now concentrate on additional added value, such as a backend that behaves like a core banking system and enables end-to-end processes, even in the sandbox. But also, for live production, which allows you to not to have to make your inventory system real-time. We are not talking about the future here; the modules are there today. Rik, Oracle: What are some of the things you hear from your bank customers?  How do they benefit most? Stefan, Adorsys:  At the moment, the most banks focus almost exclusively on compliance. Understandable, but what will happen after March 14th? We want to make it as easy as possible for the users of the Sandbox to make the transition to the monetization of their PSD2 investments: value-added services for their customers for example, and API-management.  That’s why we have included everything that can already supports the PSD2 live operation. Even when the banks will be forced to open their live systems, they won’t have to repeat their investment after March 14th, when the race for the customer interfaces will really start.  Those who cannot make monetize their investment will lose importance to their customers. Who wants a new PayPal that uses technology that the bank has built up, with pain and high costs?  With our solutions, we are already ready for the time in which not only the legal framework, but also the commercial exploitation of the technology is becoming the next driver. And so, we see ourselves not only as a technology supplier. We also help banks find viable models to turn technical investments into business value. Rik, Oracle: That’s interesting.  Now, how does your collaboration with Oracle improve benefits for your customers? Stefan, Adorsys: our implementation teams have been around for many years and have built real projects in top-tier banks.  We know Oracle’s strengths and experience in these environments, and Oracle provides technology that allows us to focus on our own solution, instead of having to worry whether the underlying infrastructure will be strong, scalable and secure.  This allows us to convince our customers that we deliver enterprise-ready solutions end-to-end, and they get to a more strategic advantage faster. However, Oracle’s focus on cloud creates another really opportunity for us.  We want to use Oracle Cloud to deliver our solution almost immediately to interested banks, without long infrastructure procurement cycles.  Time is of the essence, especially for the compliance-sandbox.  For live PSD2 implementations beyond March, we know we can count on Oracle to also help us integrate into the bank’s backend systems.   But also here, it’s about people.  The Oracle Fintech innovation program team has created an open and collaborative environment that allows us to find a business model that works for us. Concretely, clients can start with a self-contained sandbox delivered through a trusted cloud and then expand into monetization of PSD2. Rik, Oracle: OK, that’s a great usage of cloud.  When will all this be available? Stefan, Adorsys: The compliance-stage modules are ready today. We have delivered them to several banks as a consulting engagement, and we will soon have productized them on Oracle Cloud. We will continuously extend them to simulate core-banking, create and manage more sophisticated environments for TPPs, and of course keep them compliant to the ongoing demands of upcoming PSD requirements. Rik, Oracle: This was a fascinating story Stefan.  Thanks again and looking forward to helping your customers find that value in PSD2. For more information, reach out to Jay Van Berkel, Senior Business Development Manager, jay.vanberkel@adorsys.de  

The European Oracle Fintech Innovation Program publishes articles offering insights from curated Fintech partners. This article is based on an interview with Rik De Deyn, Senior Innovation Director at...

Financial Services

Fintech Ecosystems: The Key to Achieving Enterprise Sales and Customer Scale

There’s been a flurry of speculation around the impact of fintechs on the future of the financial services industry. The promise of transformative technologies, the demand for smart, digital services, and the ability to deliver a ubiquitous user experience have all fueled the anticipation that these agile, innovative entities will displace traditional business models. However as many big tech companies and leading financial services firms are learning, there’s no “one-size fits all” solution to the challenges facing the financial services industry.  Steady enterprise sales growth and loyal customer engagement can no longer be sustained through traditional means. Fintechs are learning first hand that in this new digital era, to move from innovation to monetization, to achieve enterprise sales growth and customer scale requires a business model change that has the power of a collaborative ecosystem at its core. Over the last few years, Oracle’s Financial Services Industry Solutions Group has been curating an ecosystem of fintech firms, banks and venture capitalists to address the disruptive business and technology challenges experienced across the industry on a worldwide basis.  Through our Fintech Innovation Program we’ve been lucky enough to witness some of the most brilliant young minds in the industry collaborate and make advances in ways we never thought possible before the cloud enabled the democratization of cheap, easy to use innovative technologies. For me, one of the more fascinating aspects of the program has been discovering how a big tech company such as Oracle has been able to add value to this industry.  As the program’s ecosystem grew, we started to see trends in three areas as to why fintechs and institutional innovators were turning to Oracle for collaborative innovation in the fintech space: Community, Change, and Monetization.  Community There’s no innovation without community.  Fintechs come with their agility, innovative use of technology, out-of-this-world ideas and great ambitions. Accelerators create communities between fintechs and financial services organizations, through programs and events. Innovation teams in banks and insurance firms come with the reality of their daily customers, stable innovation and trust.  The collaboration between Oracle and B-Hive.eu, the prime accelerator for Europe is a great example. Oracle, as a big tech company, fits well within the fintech community.  Oracle has a passion for delivering cutting-edge technology, including cloud, artificial intelligence, API and blockchain cloud services.  But Oracle is also a mature fintech, with decades of experience being part of bank data centers. As a result, Oracle is often looked at as a bridge between fintechs and the enterprise in terms of meeting the requirements of financial institutions.  For fintechs, collaborating with Oracle is becoming an excellent way to complement their strength in innovation with the breadth and trusted stability of Oracle’s customer base.  Lastly, many fintechs are benefitting from the flexibility Oracle provides to run cloud services within bank data centers, a differentiator that appeals to a financial sector that’s increasingly concerned about data privacy. Invest and Change the Market Oracle’s fintech ecosystem collaborates in a variety of ways. Some members focus on changing the market, others on pure technology investments or marketing initiatives.  Selected ecosystem partners participate in industry councils, innovation summits, hackathons and open banking workshops.  These gatherings all tackle specific themes like platform banking, security, enterprise monetization, at different levels: market, regions and opportunities.   From an enterprise platform innovation perspective, fintechs have been able to obtain tangible benefits from their collaborations with the Oracle startup and scaleup programs, as well as structured go to market programs as Oracle partner for the more mature fintechs. Finally, Oracle has been co-investing with fintech firms in joint marketing programs, publication in the fintech catalog and social campaigns. Monetization Monetization for all participants is an important ambition of the Fintech Innovation Program.  That’s why the focus on business models is always part of a fintech relationship. Monetization of capabilities can take several forms for fintechs that have found a business model with Oracle. Oracle offers several types of self-service sales programs, and all are publicly available to our customer base.  Fintechs that have found a business model integrating to one of our SaaS applications can provide a pre-integrated software module in the SaaS app marketplace.  There is even a NetSuite-marketplace for SME customers, that has now announced that banks will be allowed to appear on the marketplace. Other fintechs find a business model in running on the Oracle cloud and inheriting all its autonomous and enterprise capabilities.  These fintechs can monetize through the IaaS marketplace and are invited to provide self-service learning, demonstration and -soon- deployment capabilities through Oracle’s JumpStart program. A classic but still powerful approach is to set up sales enablement for Oracle sales teams.  This ranges from use-case driven promotion of fintech capabilities to go-to-market programs for fintechs that have reached enterprise readiness on Oracle Cloud.  Oracle is also regularly consulted to curate a list of fintechs that answer to a customer’s functional, innovation, and enterprise needs. The ultimate form of monetization is of course when fintechs succeed in collaborating with Oracle sales teams in real opportunities.  Oracle supports these sales cycles with incentives and joint selling approaches. Next Steps Oracle regularly runs onboarding programs for fintechs.  Read up on the programs and reach out through http://bit.ly/gfsi-assets.

There’s been a flurry of speculation around the impact of fintechs on the future of the financial services industry. The promise of transformative technologies, the demand for smart, digital services,...

Financial Services

The Future of Financial Services Is Already Here: Singapore Fintech Festival

By Mark Smedley, Vice President, FS Industry Solutions Going to the Singapore Fintech Festival? Good. Staying up to date on the latest services and transformative technologies is more important now than ever, because the future of the financial services industry has never before been so uncertain. Distribution has changed from a vertically integrated model to a digital presence model. Fintech organizations are creating entirely new types of services and changing customer expectations. Big tech companies like Amazon are now essentially becoming banks themselves, partnering with the likes of JP Morgan or others, and odds are that together these collaborations will yield far more customers than your firm. And it doesn’t stop there, the phenomenon is only growing: WeChat is becoming a bank, and it has more than 1 billion active monthly users and 14 billion corporate accounts.  Ant Financial grew out of AliPay and is now the 10th largest bank in the world by market cap… bigger than Goldman and Barclays combined. Faced with unprecedented innovation and scale, financial services companies must ask themselves what unique value they will be able to offer moving forward. Oracle will be exploring these all important questions at the Singapore Fintech Festival 2018. Our focus is on the future of the industry, and we’re putting on two can’t-miss events that you’ll want to attend. First, though, here’s what makes Oracle so different from other companies that will have a presence at the festival: We’re here to collaborate with you, not compete with you. These days, with so many companies going into the banking business, you can’t be sure who’s going to be your competitor tomorrow. Not us. We’re here to help you transform. And transformation is necessary, because delivering financial products the way it’s always been done soon will not be viable. FSI organizations will have to automate the back office, create and sustain a digital presence to be accessible at the customer’s convenience, shift to digital platforms, dial up security, and expose core services to digital distribution and products. Here’s how Oracle can help: Lift and shift current processes onto more efficient and ubiquitous cloud platforms Fire up innovation by connecting financial services firms with certified FinTech partners who can radically and reliably transform processes for regulation, compliance, onboarding, and other key activities Prepare financial services businesses to adapt to and anticipate the huge changes coming in the next five years. Here’s a great example of how we can help companies succeed: We recently announced availability of the Citi and Oracle ERP Banking as a Service (BaaS) Connector. Now, using the CitiConnect® application programming interfaces (APIs), Oracle ERP Cloud customers can connect to the suite of Citi Treasury and Trade Solutions. This enables easy integration with Citi’s core treasury management functionality, which currently allows payment initiation and is soon expected to extend to transaction status inquiry and balance inquiry. Citi wins. Oracle customers win. And that’s our model for the future of financial services. Come learn more about what the future looks like at these sessions: Oracle and B-Hive Partnership: Meet the Experts: Nov 12 – 14, 12:00 – 12:30 The Future of RegTech Nov 15- 16, 15:00 – 18:00 Looking for a quick and reliable way to innovate? Come to the B-Hive. Oracle and B-Hive are paving the way for digital transformation in financial services through a growing innovation partnership designed to accelerate startups and scaleups that solve real digital challenges for incumbent banks. Oracle works with fintech organizations to improve their reliability and integration with Oracle infrastructure, and then curates the best of those organizations, connecting them with financial services businesses that need their innovative new technologies. The focus is on monetization for all participants in this ecosystem and faster, better ways for financial services firms to implement innovation. The Accelerated Evolution of the Bank: Nov 14, 16:00-16:45 What does the future of regulation look like? These experts will tell you (and maybe scare you). Is it game over for traditional banks? What makes your services unique? What about social distribution and scale? We’ve lined up three experts who will be sharing their provocative points of view in what promises to be a fascinating panel discussion. Come hear from compelling industry leaders including Devadas Krishnadas, Founder and CEO of Future Moves, Ketan Samani, Vice President of Consumer Digital at Singtel and Fabian Vandenreydt, Executive Chairman at B-Hive in this engaging session. We’ll follow up this session with RegTech Symposium, co-sponsored by Singapore Fintech Association, featuring a variety of cutting-edge fintech partners and solutions at 80 Robinson Road Fintech Hub, Nov 15th and 16th, 3–6pm. Come learn how accelerator B-Hive and our full panel of RegTech companies (featuring Datarama, Indigita, Novastone, Know Your Customer, Difitek, Merkle, Daon, Pole Star, Blockcerts, and Netguardians) are offering innovative solutions for all aspects of regulatory compliance, including identity management, on-boarding, monitoring, detection, reporting, and process controls. Register to attend We look forward to seeing you at the Singapore Fintech Festival! This event could radically change your business—and help ensure its survival.

By Mark Smedley, Vice President, FS Industry Solutions Going to the Singapore Fintech Festival? Good. Staying up to date on the latest services and transformative technologies is more important now...


Breaking Down the Silos: Group Transformation for Life and Annuities

Many carriers in the Group benefits business have accumulated a host of systems over the years, either by direct purchase from vendors or through acquisition, dedicated to a specific purpose or book of business. These siloed, disparate systems are often based on different technologies and insurers face challenges with making them all work well together. Listen to the podcast where we discuss the background and trends affecting the Group business. We explore how life and annuity insurers are responding to the challenges of their complex IT environments and how modern technology can be used to transform their Group business in a controlled, phased manner. Explore the background and trends affecting the Group business Real-world customer experiences including major pain points Where the Group market is going and how modern technology can help How Oracle enables insurers to break down silos and consolidate multiple lines of business on a single platform Listen to the podcast today. Visit oracle.com/insurance to learn more about Oracle’s modern, rules-based policy administration solution that enables insurers to consolidate multiple lines of business – for both individual and group – on a single platform.   Don’t forget to keep up with Oracle Insurance year-round via social media. LinkedIn: www.linkedin.com/groups?&gid=2271161 Facebook: www.facebook.com/oraclefs Twitter: www.twitter.com/oraclefs

Many carriers in the Group benefits business have accumulated a host of systems over the years, either by direct purchase from vendors or through acquisition, dedicated to a specific purpose or book...


Prepare for IFRS 17: Conquer Compliance Now and in the Future

Designed to give investors and other stakeholders a realistic view of a carrier’s risk exposure, profitability, and financial status, IFRS 17 mandates a radical departure from current accounting standards. Complying with IFRS 17 will require insurers to overhaul their data collection and sort through massive volumes of complex data. How can insurers make drastic changes and provide accurate reporting in such a short amount of time? Learn how Oracle’s solution empowers insurance carriers to meet and exceed the new regulatory demands. Read the Brief Exceed compliance and strengthen business agility  Accelerate the process with plug and play technology Use technology that can connect to existing systems and automatically generate consolidated data Incrementally implement a modern configurable platform to solve current as well as prepare for future regulations Download the brief to learn more Visit oracle.com/insurance to learn more about Oracle’s modern, rules-based policy administration solution that enables insurers to consolidate multiple lines of business – for both individual and group – on a single platform.   Don’t forget to keep up with Oracle Insurance year-round via social media. LinkedIn: www.linkedin.com/groups?&gid=2271161 Facebook: www.facebook.com/oraclefs Twitter: www.twitter.com/oraclefs

Designed to give investors and other stakeholders a realistic view of a carrier’s risk exposure, profitability, and financial status, IFRS 17 mandates a radical departure from current accounting...

Fintechs and Financial Services Firms Collaborate for Greater Success with Oracle’s New Business Model

By: Rochelle Brocks-Smith, Director, FS Industry Solutions Open banking and digital transformation are especially hot topics for financial services firms and fintechs today—and moving faster than the pace of change is essential to competitive success. Financial services firms once looking to navigate digital disruption on their own, are now looking to collaborate with fintechs known for their speed of innovation social expertise and ability to optimize the user experience. However successfully monetizing and scaling a business in the new financial services digital economy can be challenging. Oracle, with its secure, compliant cloud offerings, has in-depth experience of the enterprise requirements of financial services firms as well as the technical capabilities of fintechs. Building on that experience, Oracle is delivering a new Fintech Innovation Scale Up program that helps curated fintechs and financial services firms alike  to connect so they can develop, integrate, and launch new services much faster than before. It’s essentially an ecosystem of curated resources: Oracle identifies fintechs with proven innovation with customers , technological capabilities, user experience, and financial strength, and helps to match them with financial services firms looking to roll out new digital services requiring those specific technologies, so that they can get new services delivered to customers faster. Here are three can’t-miss sessions at Oracle OpenWorld that explore this new model for open banking and digital transformation, and explain how financial services firms can seize a competitive advantage by leveraging Oracle’s global fintech ecosystem. Come check out  these presentations, learn new insights from your peers and start accelerating your own organization’s path to success. Citibank Partners with Oracle to Transform the Corporate Payment Experience [BUS6551] Monday Oct 22 3:45-4:30pm, Park Central (Floor 2) Metropolitan III This presentation provides a great example of what success looks like when a large financial services firm works with fintech partners through the Oracle Open Banking platform to get real business results. You’ll hear how, as its commercial banking client’s take their business to the cloud, Citi is actively pursuing partnerships to simplify the payments process for clients connecting to Citi. The primary objective of the partnership with Oracle is to enhance client experience by removing friction in the onboarding process and enabling Oracle ERP Cloud customers to seamlessly transact payments using Citi-Oracle ERP Banking as a Service (BaaS) Connector. The joint solution on Oracle Cloud Marketplace and Oracle’s Open Banking is the result of a partnership between Citi and Oracle, with a goal of simplifying treasury operations. This session will show case the need for collaboration between large institutions and the Oracle ecosystem to be successfully meet the evolving customer experience expectations in commercial banking. How Fintechs Are Accelerating the Path to Digitization [BUS6873] Tuesday Oct 23 12:30 – 1:15pm – Park Central (Floor 2) Metropolitan III If you’re part of a fintech, you know a shakedown is coming. More than 7,500 fintech firms around the world have raised nearly USD $110 billion in capital—and most of them are not going to make it. Success depends on achieving the right product-market fit, overcoming the high cost of attaining scale, and finding and aligning with the right partners—quickly. Oracle can help you go to market faster with its Fintech ScaleUp program. In this session, five enterprise-class Oracle Enterprise Fintech firms describe how Oracle is helping them accelerate their path to digitization and monetization with transformational technologies delivered on Oracle cloud. These cutting-edge organizations are driving innovative solutions in areas including biometrics (Daon), institutional payments (Baton Systems), discovering and building new unbounded blockchain networks (HACERA), blockchain and Oracle ERP integrated trade/working capital management (TradeIX), and cognitive bank (Unscrambl). Driving Banking Digital Innovation with the Oracle Fintech Innovation Program [CAS6368] Tuesday Oct 23 5:45 – 6:30pm, Park Central (Floor 2) Metropolitan III Financial services institutions and fintech firms understand in general terms the value each can provide. However, growth will depend on the ability of financial services firms to identify specific and relevant partnerships based on success criteria, including founding team engagement, financial stability, business use case relevance, and enterprise-readiness of fintech technologies. This is where Oracle comes in, using its deep technology and business expertise to match them with fintechs that have complementary products and experience. Oracle helps make these connections through the Oracle Fintech Innovation ScaleUP Program accelerators, such as B-Hive Europe, which will be represented in this session. Whether your part of a fintech or a financial services firm, come learn more about this model and how it can benefit your business. This session will include a  panel discussion between Oracle, Accelerators (B-Hive) , Fintech (Difitek) and the Citibank to expore how some of the challenges that fintechs and banks face in co-innovating  and shed light on strategies to adopt Fintech at scale Don’t miss these insightful sessions. Join us at Oracle OpenWorld 2018 and register today.

By: Rochelle Brocks-Smith, Director, FS Industry Solutions Open banking and digital transformation are especially hot topics for financial services firms and fintechs today—and moving faster than the...

Financial Services

Putting L&A Insurance Tools Directly in Consumers’ Hands

Guest blogger Ben Bengston is Senior Vice-President, Global Insurance Industry Leader at Cognizant. He has over 30 years' experience advising business and technology executives in the insurance and financial services industries. Talk to senior life and annuity (L&A) insurance executives, and you’ll hear a common theme: How best to adapt to the rising customer expectations and disruptive changes underway? Consumers, especially millennials, who are accustomed to one-click ordering on Amazon or Uber, don’t understand why buying life insurance needs to be so confusing and time-consuming. They expect simplified products, customized advice and the ability to buy easily online. The instant economy has already arrived throughout the financial services industry. For example, Quicken Loans, which relies on a direct-to-consumer model promising a simplified application process with rapid approvals, is now the nation’s top home lender. Unless L&A insurance businesses adopt new ways of interacting with their customers, they run the risk of becoming relics. As new digital advice and sales models emerge, their principal competitors may soon be not just traditional insurers but also a digital giant that’s looking to expand into new industries, or an insurtech startup they’d never heard of before. Using AI to Shift to a New Model To respond, L&A insurers must simplify the process of selling direct to the consumer, by leveraging the power of artificial intelligence (AI) technologies, such as natural language processing, machine learning, voice recognition and predictive analytics. These technologies can help insurers micro-target customer segments and then automatically develop and deliver customized product recommendations. By employing chatbots and robo-advisors, they can enhance the customer experience, streamline the sales process and slash operating costs. As technology capabilities evolve, insurers will come ever closer to the lofty goal of treating each consumer as a segment of one. Some L&A insurance companies are already demonstrating what is possible: Haven Life, a subsidiary of MassMutual, allows customers to buy life insurance online in just minutes, in some cases without a medical exam, by using machine learning to analyze third-party data such as prescription and driving records. By applying predictive analytics to public data, Savings Bank Life Insurance Company of Massachusetts (SBLI) has eliminated the need for medical tests and reduced the average processing time from 25 days to only 24 hours. Consumers can get a life insurance quote from Legal & General America just by submitting a selfie photo, which is analyzed to estimate their age, gender and body mass index (BMI). Although the technology is not used for underwriting, it is helping the company attract younger consumers. Although AI promises to provide more objective advice, as these applications continue to learn from new data, they can develop unexpected biases of their own. Insurers will need to put strong policies and procedures in place to ensure that the decisions made by their AI applications are aligned with the company’s and society’s values. Speeding the Pace of Change Many L&A insurance businesses, particularly those that have largely grown through acquisition, will find that implementing a direct-to-consumer strategy will require them to modernize IT infrastructures that currently consist of a patchwork of under-powered legacy systems. While some companies will choose to rely on internal resources to accomplish this, many have been dissuaded by the large upfront capital investment and time required. For this reason, many insurers are turning to software as a service (SaaS) or business process as a service (BPaaS) solutions, which reduce the investment required since total costs are based on operational expenses (i.e., the number of policies or annuity contracts) rather than fixed capital expenditures. Insurers deploy these solutions to slash the time required to roll out new products by an order of magnitude, while reducing operational costs by 20% or more. Change is coming fast to the life and annuity business. The insurers that are able to prosper in the turbulent days ahead will be those that embrace the customer-focused, digitally-driven business model now coming into view.  Note: This blog originally was posted on Digitally Cognizant on October 1, 2018,  https://digitally.cognizant.com/putting-la-insurance-tools-directly-in-consumers-hands-codex3992/ Learn more about Cognizant’s Insurance practice at http://www.cognizant.com/insurance. To learn more about Oracle’s modern, innovative technology that enables insurers to drive their digital transformation strategy forward, visit oracle.com/insurance.

Guest blogger Ben Bengston is Senior Vice-President, Global Insurance Industry Leader at Cognizant. He has over 30 years' experience advising business and technology executives in the insurance and...

Bank Revenue Management: driven by data, or going on guesstimates?

Blog Authored by Akshaya Kapoor, Senior Director, Product Strategy, Oracle Are billing and pricing mechanisms falling behind the rest of banks’ digital stack? To fully realize the benefits of their investments in the digital customer experience, financial institutions must also merge customer data with a more fluid, forward-looking approach to how they manage revenue and price their products. By doing so, they can not only ensure more stable and resilient revenues in the long term, but also personalize what is arguably the most critical element of the customer experience: how much they pay, and when. Dynamic pricing for dynamic businesses Despite broad moves towards customization across the financial services industry, few institutions so far have adopted an equally flexible approach to billing and pricing. In most cases, fixed fees and commissions are still set based upon the bank’s general assessment of what customers may be willing to pay, or the market rate set by its competitors. These traditional pricing models don’t usually account for the huge amounts of customer data that are already beginning to personalize almost every other area of the corporate banking experience – potentially causing banks to miss out on opportunities to better service those customers and seize greater revenue and market share in the process. Banks should consider applying the same data and analytics technologies that they already use elsewhere to how they bill and price products. This would not only allow them to more accurately define and optimize pricing to achieve the highest possible level of profit with each customer. As businesses grow, their financial service requirements also evolve – sometimes extremely rapidly, as in the case of everything from fast-growing start-ups to larger enterprises undergoing sudden mergers or acquisitions. A more dynamic, data-driven approach to pricing can identify not only the right products for those changing needs, but the right price based on the customer’s financial history and current situation. That should ultimately translate into more products and services sold, in better alignment with customers’ unique and ever-changing requirements – a win-win for both banks and the businesses they serve. Centralize to customize For this to happen, financial institutions will need to begin centralizing their billing, pricing, and general revenue management systems – moving away from traditional departmental siloes as quickly as possible. Only by converging their pricing and billing functions, and removing the redundancy that exists across different departments, can banks hope to both gain a full picture of their customers and co-ordinate pricing efforts for the best possible experience. When they do so, banks will also find it increasingly straightforward to calculate and forecast revenues from each customer; a centralized revenue management platform also paves the way for further innovations, such as real-time billing and automated, rule-based pricing, that can simultaneously enhance banking revenues and customer satisfaction. Traditional “guesstimates” of the optimal pricing point can no longer function effectively – not least because market and individual customer demands shift so quickly as to render any such guesses almost immediately redundant. By extending their data and analytics capabilities from the front-end customer experience into the realm of billing and pricing, banks can take the guesswork out of their revenues and better align their profit models to real, often surprising trends in demand. Ultimately, such dynamic pricing systems should seek to strengthen the relationships between banks and their customers on which long-term profits and growth – for both sides – are founded. Discover how banks are extracting greater value from pricing to billing through collections by implementing a complete platform for end-end revenue management. Find out how at www.oracle.com/goto/sibos 

Blog Authored by Akshaya Kapoor, Senior Director, Product Strategy, Oracle Are billing and pricing mechanisms falling behind the rest of banks’ digital stack? To fully realize the benefits of...

Financial Crime and AML Compliance

Financial Compliance: the foundation of banks’ customer experience?

Blog Authored By Sunil Mathew, Vice President, FCCM and Big Data, Oracle The strength of banks’ compliance offerings will increasingly correlate with the quality of their customer experience. By investing in faster, more accurate compliance systems, banks can not only reduce their liability in the case of financial crimes or money laundering – which has, in cases, stretched into billions of dollars of punitive measures – but also improve the fundamentals of customer service and engagement. From bottleneck to accelerator Compliance often comes as a speedbump to real-time payments, data sharing across services, and other core elements of the open banking environment that banks must now operate in. Banks face rapidly rising levels of regulatory complexity both locally and globally, with traditional methodologies of risk assessment under increasing pressure to provide intelligence of greater accuracy and timeliness than ever before. That typically translates into more and more time spent analyzing larger and larger sets of data – which in turn threatens to throttle the agility of the bank’s services and overall customer experience. How can banks achieve even more rigorous standards of governance without compromising their fidelity and the reputation they hold amongst their customers? They may consider adopting new anti-fraud or AML platforms which combine real-time monitoring with increasingly sophisticated analytics, data visualization, and AI or machine learning capabilities. Doing so will help them to automate the detection and streamline the response to potential criminal or noncompliant events with heightened speed and accuracy that constantly improves over time. For this to happen, banks should focus on centralizing or otherwise consolidating data from their core banking systems: the deeper the data sets available for these systems to analyze, the more precisely they can identify potential risk factors and refine the criteria they search for. Banks cannot achieve an optimal experience for their customers without first tackling the speed and accuracy of their compliance solutions. Businesses will inevitably question their trust in any financial institution without robust compliance and governance controls – something traditional banks still hold as an advantage over their less-established fintech rivals. In fact, banks would do well to treat compliance and governance as the foundation of their customer experience – one which, when improved, results in significant flow-on benefits across the organization. Compliance as the cornerstone The effects of digitizing compliance will be felt almost immediately by all a bank’s customers. Apart from faster transactions – essential for services like cash flow management, or credit approval – customers should also find that their regulatory and reporting burdens steadily decline. Smarter, AI-enabled platforms can significantly lower the incidence of false positives when comparing names or other identifiers, minimizing the disruptions caused to businesses by unnecessary audits or money laundering investigations. When data from those platforms is securely shared across the bank, customers should also encounter far less governance checks and balances, the sort normally demand by KYC standards or other mandates on customer identification. The greatest impact of digitized, AI-enabled compliance on customer experience is also the least visible. But while most businesses may never see the cases of fraud averted or financial crimes stopped, they will almost certainly notice the benefits of faster transactions and service levels with less onerous manual reporting and governance requirements. For now, relatively few financial institutions – including fintechs – have managed to strike the right balance between robust governance and speed of processing. Those who can accelerate their compliance solutions with data, analytics, and new technologies like machine learning will find themselves increasingly sought after by businesses looking to benefit from that enhanced customer experience – and even apply such capabilities to their own offerings. Join us at SIBOS 2018 for in-depth discussion into the role of data and AI in the fight against money laundering and financial crime – and the opportunities for banks as providers of this valuable compliance expertise. Take part in our upcoming executive luncheon roundtable session “Crack the Code” to understand ways to streamline and protect your organisation, by using machine learning and advanced analytics to discover patterns and turn raw data into a critical source of business intelligence. View more at www.oracle.com/goto/sibos

Blog Authored By Sunil Mathew, Vice President, FCCM and Big Data, Oracle The strength of banks’ compliance offerings will increasingly correlate with the quality of their customer experience....


Six ways to shift gears and ramp up your innovation quotient at SIBOS 2018

Blog Authored by Parvez Ahmad, Director Marketing, Oracle Oracle’s innovation in financial services will be showcased at SIBOS 2018, where you can discover how technology is shaping the future of banking into a faster, more efficient and secure digital economy. From one-on-one meet-ups with our solution experts to discovery sessions to experience our demos, we’re looking forward to share best practices, connect, and collaborate on modern solutions for the banking world. At Oracle, we’re gearing up for the transition into a platform-centric, open banking environment – one which has major implications for the speed and customer engagement of corporate banks worldwide. Here’s what you can experience with us at SIBOS: Arrive in style at the ICC with a free Tesla ride This year, Oracle is offering SIBOS delegates free rides to the conference – and what better way than to arrive in an electric vehicle that doesn’t leave any carbon footprints behind? Simply tweet us on @OracleFreeRides to schedule a ride in a Tesla Model X – a more frictionless, efficient way of going places. Start your day at the 5km fun run Start your Wednesday morning fresh with a 6am fun run along Pyrmont Waterfront. Sponsored by Oracle, the sunrise route will start and end at the picturesque Metcalfe Park, giving you an opportunity to see the city from a different perspective before a busy conference day begins. The five-kilometer course is a great chance to get outdoors and network with other active delegates, so bring your running shoes and strap in for an early start. Sign up here. Reach for new horizons at the exclusive Dinner in the Sky Dine with us atop the iconic Sydney Tower, 300 meters above the heart of the central business district with 360-degree views of the city skyline. At this exclusive invitation-only event, you’ll meet and hear from Scott Farrell, senior partner at King & Wood Mallesons who has over 20 years’ experience in financial law and government regulatory across Australia and Asia. You’ll also get the opportunity to listen to Australian track cycling Olympian, Anna Meares, about the secrets to reaching peak performance and how to inspire great leadership under even the toughest conditions. Register your interest here. Meet with Oracle experts one-to-one at Booth I11 Engage in one-on-one meetings with Oracle experts at our exhibition booth for a discovery session and brainstorm on solutions and the technology enablers for corporate and business banking. Experience demos of our cloud-based platforms built on modern, open, and data-rich technology. Demos will cover a range of major flashpoints for today’s banks including virtual account management, real-time liquidity management, real-time payments, revenue and billing management, and risk and compliance in today’s heightened-security environment (including KYC and AML solutions). Keep up-to-date with industry trends Learn how to navigate the digital platform economy and the latest financial sector changes with our Power Up and Open Theatre sessions. The Power Up Sessions are quick 20-minute TEDx style presentations, while the Open Theatre will feature guest speaker Laura Misenheirmer from Wells Fargo who will be speaking on Payments Modernization: Responding to Market Events and Regulation Faster. These sessions will inform, educate, and prepare the financial industry in moving to analytics-driven platforms run on cloud technology and artificial intelligence. Shape the future of banking together with us Join us for executive luncheons and roundtable discussions on how adopting best-of-breed technology can help the financial industry overcome previously-intractable problems. Ask questions, network with industry leaders and discuss the role of data science and graph analytics in tackling financial crime. Our session “Crack the Code” will help you understand ways to streamline and protect your organisation, by using machine learning and advanced analytics to discover patterns and turn raw data into a critical source of business intelligence. Another session will be covering how banks can drive pricing & revenue assurance now and the case for change in a digital and real-time world as well as understand how moving to Cloud can accelerate ROI and lead to competitive advantage. These sessions will help industry players innovate and respond to market dynamics using fast, agile and secure digital platforms. Register your interest here. Say hello to us at Booth I11 on Level 1 @ SIBOS 2018, and discover our comprehensive and modern solutions for your business in the digital economy. www.oracle.com/goto/sibos

Blog Authored by Parvez Ahmad, Director Marketing, Oracle Oracle’s innovation in financial services will be showcased at SIBOS 2018, where you can discover how technology is shaping the future of...


Digital Transformation: Strategies to Succeed in Insurance Greenfields

Digital disruptors have set the standards for what we expect when we shop, when we buy, and how we interact with businesses. To compete, insurers often make the mistake of focusing technology upgrades only on the customer-facing front end. True digital transformation—which includes the back end—is critical. Modernizing the IT environment is fundamental for any enterprise attempting to stand out in the crowded marketplace. Read the brief to learn how Oracle’s solutions can help you plan your back-end modernization and turn your data into assets. Read the Brief Create sustained improvements through true digital transformation. Transform both the front end and the back end Leverage data and turn it into an asset Modernize your back end systems incrementally to reduce risk and maximize agility Download the brief to learn more Visit oracle.com/insurance to learn more about Oracle’s modern, rules-based policy administration solution that enables insurers to consolidate multiple lines of business – for both individual and group – on a single platform.   Don’t forget to keep up with Oracle Insurance year-round via social media. LinkedIn: www.linkedin.com/groups?&gid=2271161 Facebook: www.facebook.com/oraclefs Twitter: www.twitter.com/oraclefs

Digital disruptors have set the standards for what we expect when we shop, when we buy, and how we interact with businesses. To compete, insurers often make the mistake of focusing technology upgrades...


Injecting Digital Life into Growth-Challenged Life & Annuity Insurers

Oracle Insurance welcomes a guest blogger this month. Ben Bengston is Senior Vice-President, Global Insurance Industry Leader at Cognizant. He has over 30 years' experience advising business and technology executives in the insurance and financial services industries. Despite the recent decline in equity prices, the stock market has enjoyed an extraordinary bull market over the last decade. Those working in life & annuity (L&A) insurance companies can only look on in envy – like everyone is at a fabulous party to which they weren’t invited. Life & annuity insurers have barely participated in the stock market boom. While the S&P 500 roughly doubled over the last decade, the capitalization growth for U.S. L&A companies was just 40%. The ratio of equity market capitalization to book value for L&A insurers is just 1.04, which is lower than any other industry segment, even slow-growth industries like apparel retailing, coal mining and steel. Investors are demanding stronger revenue growth from the industry, which will require life & annuity insurers to overcome stiff headwinds, such as heightened consumer demand for online sales, advice and service, and the need to improve what consumers perceive to be a poor buying experience. In addition, “insuretech” startups are applying digital capabilities to introduce entirely new business models that offer dramatically lower prices and better service. Reaching Higher Ground I’m convinced insurers will find it difficult to substantially boost revenues unless they first develop more efficient operating models that drive down expenses, freeing up the capital needed to invest in new initiatives. They’ll also need modern systems that support the latest digital capabilities if they are to be successful in either competing or partnering with new insuretech companies. Insurers have been working to reduce expenses through such tactics as sourcing business processes to industry experts, creating shared service centers, and slowly but surely employing robotic process automation. But in my experience, few companies have tackled the heart of the problem – the need to rationalize and modernize the proliferation of outdated, overlapping legacy systems, usually the result of growth through mergers and acquisitions. Meeting the Challenge I see these operational challenges in our current work with a leading U.S.-based life insurance and investment company. Created through a series of mergers and acquisitions over the years, the company has struggled with a tangle of 13 outdated legacy policy administration systems, relying heavily on manual processes to manage policy issues, billing, collections, policy processing and claims. The overlapping systems have been expensive to operate and unable to support modern digital capabilities. Further, the company’s reliance on manual processes has created substantial business risk, such as noncompliance. To rationalize the company’s operating environment, we are implementing our LifeAdmin Core™ solution, a modern, scalable policy platform designed to accommodate the digital capabilities needed to improve the customer experience and sales conversion. The platform is a business process as a service (BPaaS) solution, which eliminates the insurer’s need to worry about the fixed costs of a major upfront capital investment. The company only pays for what it uses, on a per-policy basis. Currently, for term and whole life products (and later for annuity products and other types of life insurance products), the platform comes pre-equipped with the standard product and process configurations used in the industry. Instead of reinventing the wheel, carriers can launch new products and services with minimal effort. The platform can still be customized to meet a company’s unique requirements when there is a product or process that differs from standard industry practice. Cost Reductions, Faster Time to Market We are now migrating applications to the new platform, and the early results appear promising. The company expects to reduce its cost per policy by more than 40%. Cost reductions of this magnitude not only bolster financial performance and ROI, but they also free up capital that can be invested in leading-edge digital capabilities and new products. When those new products are designed, they can be brought to market much faster. The most important benefit may be the impact on senior decision-making. By using a BPaaS solution, senior management is freed from managing administrative issues and has the freedom to focus on what really matters – driving revenue growth by introducing new products and services that better serve the customer. Note: This blog originally was posted on Digitally Cognizant on July 11, 2018, https://digitally.cognizant.com/injecting-digital-life-growth-challenged-life-annuity-insurers-codex3772/ Learn more about Cognizant’s Insurance practice at http://www.cognizant.com/insurance. To learn more about Oracle’s modern, innovative technology that enables insurers to drive their digital transformation strategy forward, visit oracle.com/insurance.

Oracle Insurance welcomes a guest blogger this month. Ben Bengston is Senior Vice-President, Global Insurance Industry Leader at Cognizant. He has over 30 years' experience advising business and...

Financial Services

Oracle and B-Hive Europe Join Forces to Accelerate and Monetize Fintech Innovation

Banks, insurers, and other companies in the financial services sector have invested heavily in innovation through various fintech initiatives for the past few years. Firms have become good at two-day hackathons, four-day proofs of concept, and press releases touting their cutting-edge services. But putting new capabilities in place and generating revenue from them has proven more challenging. Since innovation without monetization was not the point of the exercise, many are now questioning whether they’re getting enough return on that investment. Oracle believes European financial services companies can realize new revenue streams and higher returns from their fintech investments. All they need is a better ecosystem—one that helps match fintech companies with the firms that could benefit from their technologies. It would include an innovation accelerator and world-class infrastructure, and it would curate fintechs around innovation themes such as trust, open banking, talent, and so on. Plus, it would be based in a central location with a long banking history, a central location like Brussels. To help create that ideal ecosystem, Oracle recently rolled out its Fintech Innovation Program to Europe in conjunction with Brussels-based B-Hive Europe. This collaborative fintech platform brings together major banks, insurers, and market infrastructure players to work on common innovation challenges. The goal is to build bridges to the startup and scale-up community and also create a market where banks can offer capabilities in a modular way without having to own every individual component that makes up a service offering.   As B-Hive Europe’s first strategic cloud infrastructure collaborator, Oracle brings expertise to help fintech companies achieve higher levels of enterprise readiness. Oracle will be collaborating with B-Hive Europe to both measure the performance of fintechs and to help them improve their performance scores. Through collaboration, testing, mentoring, and a formal certification program, Oracle will be helping fintechs become more secure, scalable, and resilient—and help them prove it to tier-one financial services companies. Fintechs that meet Oracle’s standards will gain mentoring and insider access to the Oracle customer base of financial services industry customers, with Oracle providing referrals and invitations to show-and-tell days and webinars. Oracle believes monetization will flow when financial services companies become customers of fintechs and fintechs become channels for those financial services firms’ capabilities. As an example, when Barclays used Oracle’s Fintech Innovation Program to publish an open-API catalog for their PrecisionPay services to open its virtual credit card services on the fintech ecosystem, it dramatically expanded its channel. It became an easy default choice for companies building a new service offering with Oracle enterprise software and looking to include virtual credit card services as part of their new service. In another example, Oracle added open APIs for TAS Group services—including card issuing, network gateway, and card management—to the Oracle cloud-based Digital Innovation Platform. Oracle customers can now easily select the specific TAS Group services they need—accelerating TAS Group’s innovation and expanding the company’s customer base. Collaboration is key to B-Hive Europe’s success. At a recent panel discussion between representatives from Oracle, B-Hive Europe, and several fintechs, two fintech representatives, Mantica and TAS Group, met and have begun collaborating to build joint solutions on the Oracle Cloud. When big tech meets fintech in an international banking center like Europe, things start happening. Fintechs and financial services companies alike can build on Oracle’s Infrastructure-as-a-Service and Platform-as-a-Service cloud offerings to speed delivery of new services while mitigating innovation risk—and monetize joint innovations in a matter of weeks instead of years. In the near future, expect to hear more about new Oracle fintech initiatives in Europe in collaboration with B-Hive Europe.

Banks, insurers, and other companies in the financial services sector have invested heavily in innovation through various fintech initiatives for the past few years. Firms have become good at two-day...


Read The ACORD Global Life Insurance Value Creation Study

ACORD, the global standards-setting body for the insurance industry, recently released The ACORD Global Life Insurance Value Creation Study, sponsored by Oracle. The study leveraged in-depth financial analysis, data-driven research, and interviews with industry leaders to answer key questions about global industry performance, the metrics that correlate most strongly to shareholder returns, and the strategies and capabilities that support high performance. The study analyzed six years of data across 50 companies, 17 countries, and over 20 lines of business, representing 1/3 of global life Net Premium Written. By analyzing multiple financial performance metrics and carrier attributes, ACORD was able to identify critical best-practice capabilities across the value chain. Learn about the characteristics that corresponded most closely with successful value creation: Diversification – business mix as well as diversity of brands M&A – value creation through M&A activity and divestitures, and cross-border deals Innovation – leveraging technology through innovation Download the full study to read the findings. For further details of the study, as well as other ACORD research, visit www.acord.org. To learn more about Oracle’s modern, innovative technology that enables insurers to drive their digital transformation strategy forward, visit oracle.com/insurance.

ACORD, the global standards-setting body for the insurance industry, recently released The ACORD Global Life Insurance Value Creation Study, sponsored by Oracle. The study leveraged in-depth financial...

Health Insurance

Podcast Series: Technology as a Transformative Force for Health Insurers. Listen to Part 3.

In first two parts of this podcast series, we covered customer and industry trends as well as the long-term benefits of digital transformation for healthcare payers. In the final interview of our series, we focus on implementation and best practices. Download and listen to part 3, where Elke Blair, business analyst for Oracle Health Insurance, talks to us about implementation best practices and past experiences with healthcare payers that have transformed their operations with Oracle’s innovated, modern technology. Learn how healthcare payers can use technology as a transformative force What payers should consider before they start their transformation journey Some common best practices payers should follow during their implementation Experiences of customers that are already implementing their modernization strategy Listen to the podcast today. Visit oracle.com/insurance to learn more about Oracle’s modern, innovative technology for core health insurance administration, either on-premise or in the cloud. Don’t forget to keep up with Oracle Insurance year-round via social media. LinkedIn: www.linkedin.com/groups?&gid=2271161 Facebook: www.facebook.com/oraclefs Twitter: www.twitter.com/oraclefs

In first two parts of this podcast series, we covered customer and industry trends as well as the long-term benefits of digital transformation for healthcare payers. In the final interview of...

Health Insurance

Podcast Series: Technology as a Transformative Force for Health Insurers. Listen to Part 2.

In part 1 of our 3-part podcast series on using technology as a force to move their digital transformation strategy forward, we discussed how payers are responding to these challenges and opportunities. In this next part, we discuss the long-term benefits. Download and listen to part 2, where Julie Bertolino, pre-sales consultant for Oracle Health Insurance, talks to us about how modernizing IT can help payers boost profitability by automating claims, speeding up time to market, enabling product innovation. Learn how healthcare payers can use technology as a transformative force How to extend your IT environment by using a component-based modernization strategy Benefits of increased automation to improve productivity How Oracle’s flexible, rules-based architecture enables insurers to simplify IT Listen to the podcast today. Be sure to check the Oracle Insurance blog for part 3. In the meantime, visit oracle.com/insurance to learn more about Oracle’s modern, innovative technology for core health insurance administration, either on-premise or in the cloud. Don’t forget to keep up with Oracle Insurance year-round via social media. LinkedIn: www.linkedin.com/groups?&gid=2271161 Facebook: www.facebook.com/oraclefs Twitter: www.twitter.com/oraclefs

In part 1 of our 3-part podcast series on using technology as a force to move their digital transformation strategy forward, we discussed how payers are responding to these challenges...