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Solution_Bank_E.qxd
01.09.2006
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Banking Advisory
able to highlight the achievements. Banks
and partners interested in learning more
about the Network will be able to participate in local info sessions. The next steps
will include an opening of the Network to
further enhance the community, continue
working on the various topics, and to further drive standardization.
SAPs role in the Network is to supply
solution expertise and to help banks agree
on service definitions and other enterprise
SOA-oriented issues. The effort is an example of how SAP relies on collaborative, industry-wide input as refines enterprise
SOA, the SAP blueprint for a business-driven approach to SOA.
Innovate!
SAP transactional banking applications
To meet increased competition from both existing and new entrants targeting specific market segments, banks must become more innovative. In retail banking,
product innovation has traditionally been poor: A savings account or a fixed deposit account looks much as it did 20 years ago. To compete in price and keep their
profitability, banks must become more efficient and innovative in their processes,
doing the same things smarter and faster.
Banks have recently concentrated
their efforts on increasing the availability of their services that is, innovation
through new channels such as the Internet
or phone banking. An Internet bank today
is much more than a pure transaction interface; automatic investment advisory has
become common. The level of sophistication is different between different countries, but within a country, most banks offer Internet channels with comparable
functionality.
Innovation in product development is
no longer a matter of developing a new
type of savings account with a particular
way of calculating interest, but combining
a set of products into a package. It can be
a combination of a mortgage loan and repayment insurance or a credit card bundled with a current account.
The handling of these packages poses
a set of challenges for many banks, challenges in the administration, charging,
and flexibility of the package. For example, what happens if the customer cancels
one component of the package or wants
to extend the existing package with an additional product? The current IT landscape of most banks increases the complexity, since the different components are
managed in different product silos, with
limited possibilities to handle whole
product packages.
SAP Deposits Management
With its latest release, SAP Deposits Management offers unique handling of product
bundles. A bank can combine a number of
accounts into a contract bundle which is
managed by a master account to which a
number of functionalities can be attached,
such as payment distribution or pricing.
It also supports automated cross-account processes, such as overdraft protection. Overdraft protection allows a customer to define a second account from
which to withdraw money whenever the
current account is at risk of an overdraft.