Dear,
A former client released some weeks a new Banking mobility platform for tablets and smart-phones, and I had the opportunity of testing the Apps.
The mobile applications provide the customers with the capacity of accessing to their bank accounts, checking balances, run credit cards payments, etc.
It also provides a framework of tools with graphical representations of the accounts movements and credit-cards consumption.
In general it´s a useful tool, and it will provide the bank's customers a self-banking system, reducing the number of interactions with the branch or phone-banking.
For the bank, the technology offers an opportunity of improving the customer service, reducing operational costs at the same time.
This is important, but in my opinion, it´s not even close to the real opportunities of the mobility paradigm.
Mobility offers a 24/7, direct, bidirectional and formalized communication channel between the bank and its clients, virtually in any situation and place. This communication channel opens the gate for new business processes that must be aligned with a successful strategy.
As you know, top priority of the new Financial System is efficient Capital and Liquidity management.
The challenge for mobility consultants and architects is designing and describing new processes supporting Capital and Liquidity optimization.
Mobility offers many opportunities for capital and liquidity optimization, let´s look at some of them.
Not utilized free-lines consume capital and they don´t give any benefit to the customer or the bank. This is particularly relevant in revolving credits (like credit cards).
Typically credit cards have the same credit limit during the year, while the customer consumption behavior can present seasonality patterns. The bank and the customer can agree variable credit limits of the credit cards, according to the customer monthly consumption plans. By adjusting the commitment amount to the client's consumption expectations, the bank can reduce the free-line and consequently the capital consumption.
In a similar way, if the clients provide their expected liquidity requests to the bank, the treasury department can generate simulated transactions in the bank's Assets and Liability systems.
Having this information in advance would be very useful for the banks liquidity planners, as they can plan the liquidity requirements more efficiently, getting the necessary liquidity at better rates, or preparing the investment of potential excesses of cash.
Clients with potential exposures or requests in foreign currency, could also plan their foreign currency requirements or Forex hedging transactions in the mobility banking tool. With this information, the bank can also better clear their exposures on foreign currency. Imagine, for instance, that the client is planning a trip to a foreign country or he´s expecting payments in foreign currency.
All this data, provided by the collaboration scenarios, is only useful if it´s processed and converted in information. The conversion requires a central representation of the bank´s exposures (real and simulated), capital and liquidity positions.
Bank Analyzer will support the bank´s managers in their liquidity and capital planning activities, using the information provided by the mobility channel.
The model requires a seamless integration between the banking mobility system and the capital management system.
The required level of integration only can be offered with the holistic vision of SAP, which is the only banking suite offering all the components of the value chain; from the mobility Apps to the capital and liquidity management engine.
Looking forward to read your opinions.
K. Regards,
Ferran.
A former client released some weeks a new Banking mobility platform for tablets and smart-phones, and I had the opportunity of testing the Apps.
The mobile applications provide the customers with the capacity of accessing to their bank accounts, checking balances, run credit cards payments, etc.
It also provides a framework of tools with graphical representations of the accounts movements and credit-cards consumption.
In general it´s a useful tool, and it will provide the bank's customers a self-banking system, reducing the number of interactions with the branch or phone-banking.
For the bank, the technology offers an opportunity of improving the customer service, reducing operational costs at the same time.
This is important, but in my opinion, it´s not even close to the real opportunities of the mobility paradigm.
Mobility offers a 24/7, direct, bidirectional and formalized communication channel between the bank and its clients, virtually in any situation and place. This communication channel opens the gate for new business processes that must be aligned with a successful strategy.
As you know, top priority of the new Financial System is efficient Capital and Liquidity management.
The challenge for mobility consultants and architects is designing and describing new processes supporting Capital and Liquidity optimization.
Mobility offers many opportunities for capital and liquidity optimization, let´s look at some of them.
Not utilized free-lines consume capital and they don´t give any benefit to the customer or the bank. This is particularly relevant in revolving credits (like credit cards).
Typically credit cards have the same credit limit during the year, while the customer consumption behavior can present seasonality patterns. The bank and the customer can agree variable credit limits of the credit cards, according to the customer monthly consumption plans. By adjusting the commitment amount to the client's consumption expectations, the bank can reduce the free-line and consequently the capital consumption.
In a similar way, if the clients provide their expected liquidity requests to the bank, the treasury department can generate simulated transactions in the bank's Assets and Liability systems.
Having this information in advance would be very useful for the banks liquidity planners, as they can plan the liquidity requirements more efficiently, getting the necessary liquidity at better rates, or preparing the investment of potential excesses of cash.
Clients with potential exposures or requests in foreign currency, could also plan their foreign currency requirements or Forex hedging transactions in the mobility banking tool. With this information, the bank can also better clear their exposures on foreign currency. Imagine, for instance, that the client is planning a trip to a foreign country or he´s expecting payments in foreign currency.
All this data, provided by the collaboration scenarios, is only useful if it´s processed and converted in information. The conversion requires a central representation of the bank´s exposures (real and simulated), capital and liquidity positions.
Bank Analyzer will support the bank´s managers in their liquidity and capital planning activities, using the information provided by the mobility channel.
The model requires a seamless integration between the banking mobility system and the capital management system.
The required level of integration only can be offered with the holistic vision of SAP, which is the only banking suite offering all the components of the value chain; from the mobility Apps to the capital and liquidity management engine.
Looking forward to read your opinions.
K. Regards,
Ferran.
1 comment:
Nice Blog.
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