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Revenue Management & Billing

Oracle Revenue Management and Billing powers RIA Advisory’s new solution for the public sector

Oracle and RIA Advisory have partnered to bring Oracle Revenue Management and Billing (ORMB) to public sector agencies. The solution, named RIA Public Sector Foundation, is designed for public sector agencies that manage self-assessed taxes, property taxes, regulatory fees, grants, subsidies, and other revenue types. The RIA Public Sector Foundation solution enables public sector tax assessment, billing, revenue management, and collection capabilities. It provides a fresh, modern approach for implementing and maintaining the ever-changing complex rules in the core tax and revenue administration system. The solution helps government authorities achieve compliance, improve citizen service, enhance revenue collection capabilities, and provide increased flexibility to respond to revenue law changes. The solution uses Oracle Revenue Management and Billing product capabilities across crucial business process areas, including registration, accounting, payments, billing, and collections. Essential design principles of the solution Easy upgrade and maintenance: Designed as a true commercial off-the-shelf (COTS) package, the solution is easily upgradable with the configuration in place, eliminating the redundancy that is often associated with public sector platforms. A modern and intuitive user experience: To simplify user adoption and solution deployment. End-to-end business processes: The solution addresses the core tax and revenue administration requirements spanning from taxpayer registration to tax forms submission. These include tax assessment and billing to payment, approvals to refunds, automated penalty and interest with collections processing, and integrated citizen and taxpayer self-service. Sub-ledger accounting: The solution achieves GAAP compliance through double-entry accounting. The solution offers easy integration into financial systems such as Oracle E-Business Suite, PeopleSoft Financials, and Oracle Financials Cloud. Integration-friendly: Built on ORMB’s integration standards and leveraging a micro-services portal architecture, the solution fits seamlessly into any technology eco-system. With the above principles, public sector agencies can deploy in as little as six months, transforming their revenue management capabilities in the shortest timeframe. To learn more about our next-generation public sector revenue management systems, please message me. For more information, please visit: RIA Advisory: Link RIA Advisory Public Sector Foundation: Link Oracle Revenue Management & Billing Solutions: Link Oracle Financial Services: oracle.com/financial-services Subscribe to The Check-In, our financial services newsletter: Keep up with the latest blogs and more: Sign up today Contact us: Request for Information: Link           Follow us: Linkedin: https://www.linkedin.com/showcase/oraclefs/ Facebook: https://www.facebook.com/oraclefs/ Twitter: https://www.twitter.com/oraclefs 

Oracle and RIA Advisory have partnered to bring Oracle Revenue Management and Billing (ORMB) to public sector agencies. The solution, named RIA Public Sector Foundation, is designed for public sector...

Banking

A Global Transfer Agency Platform Story

My colleagues Tushar and Swapnil have begun looking at the Myth or Reality of Global Transfer Agency here and I now dive deeper into the choices Global Transfer Agents face when looking at solutions for servicing multi country Mutual Fund clients Chapter 1 – Fantasy Land Once upon a time in a land of joy and wonder an Asset Manager woke up in the morning and glanced at the news knowing that their Investors were happy and content with the service they received.  They did not need to worry about their Transfer Agent partner as they knew that were happy investors across the globe. The Asset Manager was assured of seamless interactions with all Investor types, through whichever channel or medium the Investor choose.  The Asset Manager also knew their clients were looked after irrespective of the region of the world in which they lived. At the same time, on the other side of town, the Transfer Agent woke, well rested from a night of perfect slumber, realising that there had been no alerts overnight.  They knew that the Asset Manager too would be happy as their clients had received the service that they had expected. BANG! Reality bites as both the Transfer Agent and Asset Manager return to reality and the year 2020.  Chapter 2 – Reminiscing the good ol’ days (TA 1.0) However, they both remember the early days of Transfer Agency, a process that had grown from a small and fractured beginning.  A simple requirement to record investors and transactions has evolved into a critical piece of the Financial Services industry. Transfer Agency was formed for the need to always have that book of record for each investment made by an Investor in a Fund.  Funds were initially employed by a small group of institutions and individuals.  Fund Product ranges were comparatively simple with choice limited. As a result, Transfer Agency was seen as part of the Asset Managers competency.  Initially it was seen that the use of basic tools such as Access and/or Excel was sufficient as this could manage the records.  Service to Investors was maintained by the Asset Manager and their colleagues to those that had invested in the found.  Oh how, the landscape looked like back then! Chapter 3 – Regulatory relaxation & Technology growth (TA 2.0) Then, Governments keen to expand people’s savings profile for retirement and to leverage the pools of monies in Funds, loosened saving tax regulations, encouraged investment & opened the doors to a new wave of Investors.  Suddenly, investing in Funds became ‘normal’ and the cottage industry of Transfer Agency had to grow up fast and a new range of products evolved to meet the wide spectrum of Investors As well, regulators redefined the framework of how funds could operate from which it was then possible to create a wider array of Fund Products distributed globally.  The success of the UCITS brand that launched went far beyond the expectations of all in the Industry. At the same time Technology made strident leaps forward, particularly with the birth of the Internet.  Data creation (& its capture) and public consumption of information entered a new age.  The Asset Manager now needed to focus more on Fund Product & Distribution Models, and, as a result, they looked for a partner who had the technology & scale to provide the Transfer Agency service. At the same time Service Providers recognised they could bring Value to the Asset Manager as they had the scale, knowledge and technology to support Transfer Agency.  The Asset Manager could focus on the Front Office whilst the Service Provider cared for the Back Office of the Fund. Chapter 4 – Spaghetti (TA 2.0) As technology continued to evolve both the Transfer Agent and Asset Manager knew they had to keep their systems modern, scalable & robust and secure.  Asset Managers and Transfer Agents alike moved into new Product lines and new markets. This, though, led to a divergence as Asset Managers required tailored solutions to cater for their unique proposition in each market whereas Transfer Agents played catch up to find solutions that could continue to deliver to the Asset Managers ask. Over time Transfer Agents found that they had a myriad of systems to answer each market and product ask of the Asset Manager.  Systems too had not evolved easily with legacy platforms requiring tactical approaches to address demands from Asset Managers & Regulators. The tactical approaches became embedded and so running the business, making change and delivering quality requires significant investments for little or no return.  Then, after years of under investment, the nest of platforms has become so nested and entwined that no one is certain how to simplify the ecosystem and get it future ready. Data and digital engagement will drive the successful Asset Manager, and by extension the successful Transfer Agent.  Those Transfer Agents that can offer a rationalised, single solution approach for their clients will reap the benefits of their early adopter process. Other Transfer Agents may find solace in either their legacy but functioning platform (focusing on a single market) or in their tangled web of platforms that provide a pseudo pan regional solution, but their client will not.  Masking the problem with even more tactical solutions will eventually lead to a collapse of the house of cards. Chapter 5 – Investors to change the TA paradigm (TA 3.0) Addressing the need for Digital requires an honest appraisal of where the Transfer Agent and Asset Manager want their partnership to go.  The evolution of the Transfer Agency model has meant that they now act as the Asset Manager’s point of contact with Investors, and not the Asset Manager. However, Asset Managers are seeing that Investors are now more discerning and are keen to tap into a wider range of Products (eg Active; ETF; ESG etc) which are offered within the same Management firm.  Therefore, the Asset Manager wants to simplify the relationship and minimise painful and potentially redundant processes (KYC, Relationship Anchors), whilst also ensuring that Private Data (eg PII) is well protected. As Investors have a more global outlook, they will expect the same service from the Asset Manager irrespective of the region of the globe they are in.  Currently, this places huge demands on legacy TA systems & processes to present themselves as Digitally ready and available. But do not feel the pressure of legacy, the utopian opening that we started with is actually not that far from reality.  Digital Investor demands are growing, and as the demographics move to the nomadic digital native (& beyond) Asset Managers need to speak to their future market.  Chapter 6 – Can Fantasy become a Digital reality? (TA 3.0) Digital will continue to disrupt the industry however it seems that Asset Managers still find it hard and costly to fulfil the Transfer Agency process.  Therefore, Asset Managers are keen to get it done through their TA partners in the most cost-effective way. But how, when Transfer Agents have a myriad of platforms that make up a ‘solution’.  The answer is might seem too obvious to be true, but it is; and that is to work with Transfer Agents that have a single solution approach (1 system, 1 instance, common IT/Operating model, 1 experience to Investor/Asset Manager partners of TA). This can happen where solution simplification is considered and undertaken by the brave Transfer Agent. Taking an honest assessment of the current ecosystem with its multitude of platforms can force the Transfer Agent to course correct and work with technology partners that can provide them with a true solution to address their needs across the globe.  Modern Transfer Agency solutions, such as Oracle FLEXCUBE Investor Servicing, will have the capability to support out of the box Digital channels with open APIs; Blockchain connectivity options and data points to help with Machine Learning.  With a robust solution it helps to ensure that the above is delivered in alignment to Regulatory compliance (GDPR, PIPA et al) and more importantly deliver to the emerging True Global TA Service Expectations. Chapter 7 – Renewal (TA 2.0 or TA 3.0) And so, in 2020 we have seen, with the Covid 19 pandemic, a step change in how the world operates.  The changes that occurred were unforeseen, quick and profound.  This has driven a new assessment of what best-of-breed means and looks like. How then to move forward in this brave new Digital world for Funds?  Are Transfer Agents supporting Asset Managers on their Digital revolution? Can TA’s provide a truly scalable Global solution that is market agnostic, digitally enabled and on the Cloud? Both Transfer Agents (with their overly complex eco systems) and Asset Managers (with the urgent need to be Digitally native) are recognising that a true Global system is required.  However, renewing existing platforms may seem to offer instant benefit but longer term returns are not certain and existing perceived benefits lost. Oracle FLEXCUBE Investor Servicing can help to make the digital change that can be Cash flow neutral, enable pointed cost reduction and provide uplift in value with its unique support of true Global Transfer Agency and offering choice of on-premise deployments or on the Cloud. Therefore, ask yourself – do I stay in TA2.0 with my Spaghetti nests and constant renewals of my patchwork solutions or do I move to TA3.0 based on an Open Architecture, API enabled & Cloud based solution that caters for local, regional and Global Transfer Agency and Fund Distribution? Smart Transfer Agents and Asset Managers have started the move, can you afford to be left behind? For more information, please visit: Investor Servicing oracle.com/financial-services Subscribe to our Blogs: Oracle Financial Services Blogs: Sign up today Contact us: Email: financialservices_ww@oracle.com Follow us: Linkedin: https://www.linkedin.com/showcase/oraclefs/ Facebook: https://www.facebook.com/OracleFS/ Twitter: https://www.twitter.com/oraclefs

My colleagues Tushar and Swapnil have begun looking at the Myth or Reality of Global Transfer Agency here and I now dive deeper into the choices Global Transfer Agents face when looking at solutions...

Banking

Technology and Global Transfer Agency

We hear much of the latest and greatest technologies within the Financial Services industry and even Transfer Agency is not immune to these fashion, fads & changes (see Is Blockchain a disruptor or enabler for Transfer Agency?).  Each coming new technology offers the opportunity for Transfer Agency and Fund Distributors to address servicing dilemmas for Investors and Asset Managers. Despite recent bouts of doom and gloom around the existence of Transfer Agency, we see that firms are thriving and continuing to innovate their services.  We can safely put to bed the introspection and existential concerns that had bubbled in various threads on Transfer Agency within Europe and beyond. Indeed, looking at the Transfer Agency market, there are opportunities for those providing TA services to grow their offerings and, further, become an important value-add component of the Asset Manager.  This opportunity still exists even in the unprecedented climate as a result of the existing restrictions across the globe. Within the industry, we know that Asset Managers will partner with those Transfer Agents that help them support the Investor on their investment journey.  The ‘smart’ Asset Manager will therefore want to find the TA that offers an excellent, dependable service (including digital), which is consistent across all markets and Investor segments. Transfer Agents, in return, will gladly partner the ‘smart’ Asset Manager and will reap the benefits from a having a strong underlying technology partner who recognises that the Transfer Agent brings unique skills in servicing the Investor journey.  The skills and knowledge of Transfer Agents, when wedded with best-of-breed technology, can lift the Transfer Agent & Asset Manager together to new levels of service and market reach. There is no doubt that Transfer Agency is ripe for disruption given the plethora of legacy systems and cumbersome processes that are involved.  Many firms (as Providers and FinTechs) have focused on reducing the friction involved in some of the processes by looking at utilising technology in these complex processes. Here we see the likes of Market Infrastructure providers smoothen the processing of Deal Instructions; FinTechs address specific processes with limited added-value (for example Reconciliations).  The more complex areas, such as KYC, have long been a holy grail and multiple start-ups are using technologies such as Blockchain to make the process as painless as possible. These additions to the Transfer Agent will help improve elements of the journey, however, they also add challenges.  Transfer Agent’s technical environment will expand with these additional applications and integrations.  Applying this to an already creaking, legacy environment is suboptimal but is done for the sake of expediency. With the multitude of tactical solutions, Transfer Agents do their best to keep the lights on but there are constant Cost & Servicing pressures, not to mention ongoing local & regional Regulatory requirements.  But doing the best is now further challenged in the current climate and will need addressing in the new normal world. Consolidation of platforms into a single system enabled will no longer be a nice to have, but a must have for Transfer Agents to both survive and bring value.  In addition, Transfer Agents will need to effectively leverage the Cloud to maximise their savings opportunities as Revenue and Margins will be impacted for the foreseeable future. Further, with the increasing focus by Regulators to meet the needs of the next generation of investors who are digitally native and Global Citizens and protect PII, Transfer Agents will need to have a simpler environment to address this with Technology rather than current High Risk Operational processes that exist today. Not only are the future Investor wanting a nimbler, mobile driven service, they are also much more likely to be mobile in their career.  Adaptive Asset Managers have recognised this, as they now seek to have a seamless service for their Investor irrespective of the Investor’s or Fund’s Domicile.  Asset Mangers are now truly looking for the Global experience. Do Transfer Agents need to struggle by managing multiple platforms to cater for the Asset Managers they service?  Asset Managers demands are varied as they look to an ever more complex Investor base, but, at the core, its key is the delivery of services & experiences.  Over time, Transfer Agents have required certain platforms for certain markets and/or regions resulting in an overly complex environment where multiple systems overlap as they service specific countries/markets and products.  It is not uncommon to hear of even mid-range Transfer Agents having 5, 6 or even 7 systems for their Long Only Fund clients, and these systems only cover parts of the European markets.  To look at a Global offering requires bold decision making as it will require an honest of review of legacy systems and processes. As a leading provider of Transfer Agency Core platform software, Oracle has seen how Global Asset Managers are now looking for this truly Global offering.  As a result, Oracle is continuing to evolve its TA platform, FLEXCUBE Investor Servicing, to help those Asset Managers and Transfer Agents offer this Global service to Investors.  This evolution is also a step change, as it takes Transfer Agency into a place where it can be the foundation for the Investor irrespective of either the Investor’s or Asset Manager’s location. It is possible for companies to invest heavily in reporting layers to mask their underlying systems and provide a pseudo-standard package.  This has benefits of projecting a standard service to the outside world, but yet this author feels the investments may not be fully realised as the fundamental issue of platform complexity is not addressed. Digital layers and interfaces are vital to support Asset Managers, but with a myriad of systems underneath there is no certainty that this solution is scalable and can easily support the requirements of a truly Global offering.  It reminds us of the swan that appears serene on the surface but is expending massive energy underneath to move along at a slow but steady pace. There are, however, Transfer Agents that have accepted the challenge from Asset Managers to provide a seamless, consistent service for the Investor irrespective of location.  To do this, these Transfer Agents have recognised that they cannot effectively support this by having multiple systems within their ecosystem.  These TA’s have moved the dial by collapsing their Long Only Fund systems globally onto one system, with the exception of the US market. To do this, the core TA system needs to have the necessary broad & deep functions to service multiple jurisdictions, be scalable to handle Retail and Institutional clients and provide the vital consistent data entry & model for service excellence.  With Oracle FLEXCUBE Investor Servicing it is possible to attain this new target Global Operating Model. The question now for Transfer Agents is how do I support the Global Asset Manager efficiently and effectively?  Is it better to build a layer to mask the myriad of systems or is it better to have a scalable solution based on a core engine that can truly service the Local, Regional & Global Investor? Working with Transfer Agents & Fund Distributors Oracle can help identify the Value opportunities within the Organisation to streamline as well looking outward to their partners.  Oracle can help run quick and effective assessments to test various Value Hypotheses.  This Blog has been published on Funds Europe in the FundTech Spring eZine here: https://www.funds-europe.com/fundtech-spring-2020/sponsored-feature-going-global To learn more, feel free to message me to explore more, or have a conversation. For more information, please visit: Investor Servicing oracle.com/financial-services Subscribe to our Blogs: Oracle Financial Services Blogs: Sign up today Contact us: Email: financialservices_ww@oracle.com Follow us: Linkedin: https://www.linkedin.com/showcase/oraclefs/ Facebook: https://www.facebook.com/OracleFS/ Twitter: https://www.twitter.com/oraclefs  

We hear much of the latest and greatest technologies within the Financial Services industry and even Transfer Agency is not immune to these fashion, fads & changes (see Is Blockchain a disruptor or...

Corporate Banking

Virtual Account Management is Transforming Businesses and Relationships … and The Future Looks Bright

Jeffrey highlights the wide array of opportunities with VAM and where banks and their corporate customers are heading.   Ask a roomful of corporate bankers “What is Virtual Account Management (VAM)?” and you’re likely to get a variety of responses. And that is a good thing. VAM has the potential - with the right technology foundation - to be infinitely flexible with new business use cases imagined daily. It can deliver tremendous value to both corporates and their banking partners. Corporates stand to reduce cost and complexity and introduce new levels of automation through alignment of their banking accounts with their internal accounting systems. Banks, in turn, can strengthen vital relationships by elevating their service to address their corporate customers’ growing pains while reducing their own operational costs. VAM is transforming treasury – and the journey is just beginning. What good are virtual accounts? Banks have offered "virtual account" solutions for many years, but most of these offerings were for specific purposes and targeted customer segments. Oracle has adopted a more holistic approach with VAM to encompass numerous business propositions and use case scenarios. For Oracle, VAM is about the challenges faced by both corporates and banks for cash management efficiency. It goes well beyond the perceived standard of virtual IBANs or virtual reference numbers and offers more than just efficient receivables management. VAM encompasses payables and receivables including On Behalf Of capabilities, corporate In-House Banking, real-time liquidity and management of client funds. For whom are virtual accounts useful? Historically VAM has been a solution for large corporates who have complex structures of physical bank accounts spread across the globe. With growing globalization, organizations that can benefit from VAM are now defined not by their size but by complexity and business breadth. This might include an organization dealing with payments and collections in various currencies or managing funds for new-economy platforms for gig workers and service providers. VAM propositions Currently, many banks address a limited set of VAM business propositions. Meanwhile customers’ challenges are mounting with banks struggling to keep up with an ever-increasing gap. One bank that we are working with has been supporting client money management for many years. It has outgrown the capabilities of its legacy solution and is using the renewal opportunity to expand its services to address multiple virtual account propositions. Another bank is looking at offering services across the geographic region and currencies in which they operate, beyond the local, single-currency cash pooling services that they currently provide. Others are looking to use VAM capabilities to support digital wallets, e-commerce, and the gig economy. Nearly every discussion gives rise to new business propositions that can be addressed through VAM Solutions. The evolution of VAM Banks have started to realize that the traditional VAM techniques of virtual IBANs and virtual reference numbers only address a small portion of corporate challenges with its support of receivables management. The second generation of VAM solutions typically addressed additional business propositions for payables and receivables management, in-house banking, and client money management with self-service capabilities. Beyond this, Oracle Banking’s next-generation VAM solution allows the combination of traditional liquidity management techniques with virtual accounts. This allows corporates to build off physical sweeping (including relationships across multiple banks) with real-time cash concentration (via virtual accounts) into hybrid physical and virtual structures. The next step in the evolution is predictive cash flow forecasting based on accounts receivable and accounts payable, using artificial intelligence and machine learning. Bank’s challenges with VAM One of the greatest hurdles is to carefully identify the precise customer segment challenges and what is needed to deliver real value to the corporate customer - rather than simply introducing a new solution. Our approach is a phased, minimum viable product (MVP) so that customers can see tangible benefits with rapid time-to-market. Another challenge is adapting the mindset of banks toward a more client-focused, self-service approach. As with any financial services project, the integration of a new solution is always a challenge. VAM interacts with many areas of the bank, therefore, it requires many touchpoints with the bank’s systems. Finally, some banks struggle to identify the business case related to developing a VAM offering. It’s not easy for some banks to quantify the benefits for them and their corporate customers around specific VAM applications. Building a proper value proposition for your VAM offering is one key to success. Traditionally, banks have offered cash management solutions for corporates to optimize their working capital and liquidity needs; these offerings used conventional cash pooling techniques. However, many banks have moved away from notional pooling due to regulations and the rising costs of this business. At the same time corporates are looking for greater insight and control, as well as lower costs through alternative solutions. Virtual accounts fit perfectly with these drivers, providing banks and corporates with greater operational efficiency. Corporates require real-time clarity of their working capital and the self-service control for efficiency and speed. Oracle’s unique advantage First, Oracle Banking Virtual Account Management supports multiple business cases in a single platform, including client self-service components. By doing so, it offers enormous flexibility to address the requirements of both the bank and its corporate customers. Oracle’s modern, componentized solution allows banks to choose the components that address their precise needs with both tactical options for faster time-to-market and strategic options for the longer term. For corporates, the solution’s flexibility allows banks to easily provide targeted business propositions and meet evolving corporate needs through configuration rather than additional development. In addition, Oracle applies powerful artificial intelligence and machine learning capabilities for business insights and predictive cash flow forecasting. All Oracle Banking solutions are built on a modern architecture and are designed for easy integration into a bank’s environment. This eases one of the main hurdles that we have identified when banks are developing VAM offerings. In addition, Oracle’s VAM solution is system agnostic; it can integrate with any core banking and payment systems that are used at the bank. Oracle provides banks with an agile, future-proof solution that meets performance and time-to-value, while strengthening their corporate offering through increased flexibility. Building a proper value proposition for your VAM offering is one key to success.   To learn more, feel free to message me to explore more, or have a conversation. Related content: Trends Shaping Corporate Banks: Connected Commerce, Digitalization & AI Mind The Gap: Stepping Up From Liquidity Management To Being A Treasury Partner Treasury 4.0: The win-win approach to working capital management   For more information, please visit: Oracle Banking Virtual Account Management: oracle.com/vam Oracle Financial Services: oracle.com/financial-services Subscribe to our Blogs: Oracle Financial Services Blogs: Sign up today Contact us: Email: financialservices_ww@oracle.com Follow us: Linkedin: https://www.linkedin.com/showcase/oraclefs/ Facebook: https://www.facebook.com/OracleFS/ Twitter: https://www.twitter.com/oraclefs

Jeffrey highlights the wide array of opportunities with VAM and where banks and their corporate customers are heading.   Ask a roomful of corporate bankers “What is Virtual Account Management (VAM)?”...

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...