Banking Book of Dreams v1

The Banking
Book of Dreams
Digital Business Transformation Patterns

for a Mobile-First, Cloud-First World
A Digital Advisory Team Production
At Microsoft, were proud to partner with and empower all our customers around the world with the leading technology
to seize the vast opportunities ahead.
Satya Nadella
3
Digitally Transforming Banking
Engage
<> Your Deliver personalized, rich, connected experiences to your customers, inspiring and driving
loyalty along every step of the customer journey.
Customers
Empower Your Enable your employees to keep up with your fast-moving customers, efficiently collaborating
to quickly meet customer needs with agility.
Employees
Optimize Your Increase the flow of information across your entire business operations, keep your business
processes synchronized, and improve your interaction with partners.
Operations
Transform Your Gather information about use of your services, design innovative offerings, and work
collaboratively to improve products and develop new ones.
Products
4
Contents
Imagine If
Vision
Business Drivers
Customer Experience Journey
Capabilities For each scenario:
Scenario Chain
Scenarios Scenario Narrative
Engage Your Customers: Scenario Storyboard
Omni-Channel Customer Experience Tech Storyboard
Empower Your Employees: Business Dependency Network (BDN)
Banker Productivity Value Touch Points
Optimize Your Operations: Value Realization Scorecard
Risk Analytics Customer Story
Transform Your Products: Transformation Roadmap
Bank as a Service
Additional Resources
5
Imagine if
Imagine if your customers had a seamless
experience doing business with your bank
anywhere and anytime.
Imagine if you had a 360 degree view of

customers, could proactively identify
customer needs, and collaborate more
effectively with colleagues to provide
service and market offers.
Imagine if you could use data insights to
manage your market, credit, and
operational risk more effectively.
Imagine if any business in the world could
be your sales channel even for cross
borders transactions, without escalating
costs.
6
Vision for Banking
Enabling financial institutions to be in the financial lives of their customers
Any Time Any Place
Any Device Any Channel

7
Business Drivers for Banking
Focus Areas for Key

Business Drivers Executives Business Benefits
Customer expectations for Better customer experience and

Mobile banking
mobile and online banking increased loyalty
Targeting valuable customer

Higher customer churn and Generate new revenue
segments and improving
cost of customer acquisition while reducing costs
customer satisfaction
Increasing risk Risk management and Manage risk better,

and compliance costs compliance programs faster, and cheaper
8
Customer Experience Journey
Research online Discuss satisfaction
about product with others
Learn of product Find and consult
via social media with an expert
online while at branch
Find branch and

contact rep from Rep uses customer 360 c
anywhere view to tailor offers Share and discuss options
online with others Monitor performance
of product anywhere,
anytime
Meet with rep at Meet online with rep

branch to select product
Schedule in-person
meeting with rep
Digital Hotspots
Changes in fees Account Switching Debt collection
Complaints resolution Account onboarding & maintenance Claim management
Life events (marriage/child birth) Lost/Stolen card Setting up a payment
Buying a new product
9
Banking Capability Map
Reference Risk and
Sales and Service Operations and Execution Business Support
Data Compliance
Customer Data Assisted Channel Consumer Financial Corporate Bank Portfolio

Marketing Products Markets Products IT Management Finance
Management Management and Treasury
Consumer Loans Investment Trade Finance
External Agency and Deposits Management Non-IT and HR
Cross Channel Analytical Model
Data Sales Corp. Banking Enterprise HR Management
Management Management Development Services
Bank Cards Wholesale Products
Trading
Market Data Customer Consumer Corp. Financial Buildings, Equip. Knowledge and
Services Market and Advisory Business Analysis
Management Management and Facilities IP Management
Operations Services
Business
Product Data Customer Compliance Corporate
Command and
Management Servicing Management Control Relations
Business
Cross Product Operations Direction
Doc
Account Operational
Payments Management
Management Services and Archive
Collateral
Administration
BIAN Service Landscape v.3.0

10
Digital Transformation Approach
Engage Your Empower Your Optimize Your Transform Your

Customers Employees Operations Products
Banking Book of Dreams
Imagine if
Imagine if your customers

had a seamless experience
doing business with your
bank anywhere and
anytime.
13
Omni-Channel Customer Experience Scenario Chain
Business Drivers Investment Objectives Enterprise Scenarios

[Business environment]
Key Benefits
[Business response] [Tactical execution]
Improve acquisition, retention and Increased intra-bank collaboration to
Margin pressures and cost reduction development of profitable customers Omni-Channel Customer Experience show a single face to the customer
Create a 360 degree customer view to Improved profit margins and

align sales, marketing and services operational efficiency
Cross-sell and generate revenues from interactions
non-interest related activities Increased revenue by cross-selling
Reduce costs and enhance efficiency and up-selling
Banker Productivity Improved customer service and

Customers are increasingly seeking a Deepen relationships and provide loyalty
targeted personalized approach consistent & superior customer
experience Consolidated 360 degree view to
provide consistent channel experience
Increasing customer expectations for Better alignment of sales, marketing
mobile and online experiences and services with the 360 degree view Improved customer retention and
loyalty
Deliver Omni-Channel customer Risk Analytics
experience % Processes & systems compliant
Mergers & acquisitions and joint
ventures Enhance customer communication % Apps compliant
and feedback by enabling social
collaboration % Infrastructure compliant
Increased regulatory pressure creating
a demand for greater transparency Improve regulatory compliance and Bank as a Service Automated regulatory & risk related
and accurate reporting risk management processes
14
Omni-Channel Customer Experience Scenario Narrative
Start a transaction on any channel and complete it seamlessly on any other channel
Current State Operations Manager
We struggle to provide the mobile experience customers now
expect, as well as modernize our on-premises experience. We
dont offer a seamless experience to a customer through different
channels. Customers are moving to competitors because they
perceive that the client experience is better elsewhere.
Desired Future State

We provide banking services to our customers anytime, Provide banking services anytime, anywhere
anywhere, in the most customer-centric and convenient ways
Serve customers over any channel
possible. Customers are able to start a transaction on any
channel and complete it on any other channel. We have Sell more products and services
increased customer loyalty and satisfaction, and are seen as an Increase customer satisfaction and loyalty
innovative market leader who is sensitive to customer needs.
15
Omni-Channel Customer Experience Solution Storyboard
Customers can use many channels to interact with the bank, and can begin transactions on one channel and seamlessly complete them on another channel.
Customer chooses channels Obtains services and conduct transactions Seamless customer experience
Any Mobile
Banking Investment
channel capabilities
Natural User Advanced Insurance Loans

Experience Analytics
Customer Efficient
Customer and bank interact satisfaction operations
using preferred channels Capabilities Services and offerings Innovation
Top-line Impact
Happier customers with an enhanced value proposition. Ability to provide intelligent value offerings in every attribute of the customer experience.
Benefits Start Stop Continue
Increased customer satisfaction and loyalty Aggregating customer information Requiring customers to navigate through Providing banking services anytime,
Increased cross-sell and up-sell obtained through multiple channels a complex organization anywhere
Improved operational efficiency Providing convenient ways for customers Restricting customers from performing Serving customers over any channel
Increased collaboration and efficiency to learn about and choose products and transactions anytime, anywhere Increasing sales of products and services
among bank employees services Inefficiently accessing customer Increasing customer satisfaction and loyalty
Using customer analytics to connect information
customers with the most pertinent
products and services
16
Omni-Channel Customer Experience Technology Storyboard
A customer can first connect with a bank on the phone, and then go to a kiosk and continue interacting with an agent
via video, or go to a branch.
360 Degree Customer View
Anywhere Provide service
Access expertise
Banking Anywhere
Customer Collaborate Anywhere

Consistent Customer
Dynamics
Experience CRM Online
Skype for
Office365
Business
Customer receives service Bankers collaborate to serve

anywhere, anytime customers from anywhere
App Machine
Storage PowerBI
Service Learning
Back Office
Core Banking Express Route
Cloud-based services augment core banking capabilities
17
Omni-Channel Benefits Dependency Network
Customer Experience
Enabling Enabling Business Investment
Benefits Business Drivers
Technologies Changes Changes Objectives
Customer Relationship 360 degree view to

New navigation Increased revenue by
Management provide insights into a Improve acquisition,
optimized for analysis, cross-selling and up-
customers financial retention and Margin pressures and
search & engagement selling
position with the bank development of cost reduction
profitable customers
Business Intelligence
Develop relevant
Accessible expertise,,
insights with real-time Improved profit
shared information,
account data, news, margins and
and consolidated
Social Computing social activity and operational efficiency Generate greater
customer view to
connections revenue from
enable collaboration Reduce costs and
and optimize products and services
enhance efficiency
operations through cross-sell and
Data Management Seamless integration Increased intra-bank upsell
with several 3rd party collaboration to
& core banking Customer present a single face
systems representatives and to the customer
financial specialists
Enterprise Integration
identify the needs of Customers are
Efficient deployment the customers, Provide consistent
increasingly seeking a
which enables a recommend the right customer experience
Improved customer targeted personalized
robust, reliable, products, and across all channels
retention and loyalty approach
Development Platform scalable and secure efficiently process
system applications
18
Omni-Channel Customer Experience Value Touch Points
Value for Customers Value for Business Leaders Value for IT Leaders
One-stop shop and access to Streamline services to customers Increase technology innovations
expertise Increase brand recognition and recall Amplify the customer experience
Strategic Improve service quality Increase customer engagement and loyalty Improve channel integration
Increase footprint
Increase net promoter score
Reduce time to service resolution Reduce time to enter new geographic markets. Increase agility in responding to new business needs (cloud
Reduce time for new product Use rapid prototyping to test ideas. time)
Time to Value setup Cloud-based development environments reduce cycle times
Alignment with needs and
preferences
Reduce cost of service Increase cross-sell/up-sell
Increase
Reduce transaction charges Increase customer wallet share
Revenue
Optimized prices
Improve satisfaction levels Decrease capital expense Providing self service technology at lower value
Partner promotions and discounts Reduce cycle time in customer service resolution Reduce cost of data analytics
Decrease Cost
Reduce cost of operations (specifically branch) Reduce cost of data acquisition, storage, and management
Reduce customer acquisition costs
Convert dissatisfied customers to satisfied Movement from traditional waterfall IT development to agile
Decrease Risk customers by targeting relevant services/offers delivery models
Improve business insights and workflow
19
Omni-Channel Value Realization Scorecard
Customer Experience
Continuously managing & measuring clear value levers, success factors, and performance measures
Omni-Channel Customer Experience Business Outcomes/Results

Customer Employee Reducing customer churn / increased
Consistent channel experience Team-based selling and detailed customer satisfaction
Personalized to the customer customer profiling Increased revenue from cross/up sell
reflecting their needs and wants Increased job satisfaction (reduced Reduce cost per customer contact
Increased touch points with the customer complaints)
bank/banker Increased innovation in delivering
end-to-end experiences in a
customers journey
Operations
Enterprise-wide view that supports intelligent multi-channel decisions
Continuous improvement through test and learn
Reduced branch traffic
Reduced operations costs
20
Omni-Channel Customer Experience Roadmap
Business Benefits IT Projects

Phase 3: Enable predictive modelling and risk analytics
Predictive modelling
Improve risk management Azure ML
Descriptive and prescriptive analytics
Reduce operating costs Prescriptive analytics Big Data
Improve regulatory compliance Enable gathering, storage, transforming, and distributing of Data Modeling
Big Data
Phase 2: Enable mobility to support customer scenarios and

Better connect employees and
empower banker productivity Azure ML
customers
Value
Banker productivity applications Dynamics CRM
Improve business insight and
workflow Real-time business and customer analytics, predictive models O365
Increase sales Collaborative and shared workspaces PowerBI
Phase 1: Shared view of customer state and 360 view of customer

Improve customer Persona analysis and scenario modelling and prioritization Data rationalization
experience Determine customer journey, architecture and gaps (current/future state) Dynamics CRM
Raise customer satisfaction Omni channel customer banking applications O365
Reduce operating costs PowerBI
Time
21
Metro Bank Customer Story
Leveraging technology to give people what they want
Metro Bank is focused on offering the Weve embraced the software of a company
best customer experience, how, when that helps us treat people like people
and where the customer wants it. The Office 365, [Microsoft Dynamics] CRM, and
Yammer from Microsoft. With the technology
banks motto is "no stupid bank rules" working for us, we can focus on the really
and its focus is on bringing back important stuff.
traditional retail banking, supported by
Paul Marriott-Clarke
flexible technology. Commercial Director Metro Bank
Business Needs The Solution Results

Make customer service with Metro Bank deployed a solution that Reduced customer wait times
personalized interactions a competitive used Microsoft Dynamics CRM, Office Improved consistency with every
differentiator for the bank. 365. Metro Bank employees use the customer interaction
Be flexible operationally, taking best tools to identify and address problems
before they begin to affect the customer Streamlined systems create more
practices from one location and time for customers
implementing them across all locations. relationship. And when in doubt,
employees have access to a vast Ongoing connection with customers
knowledge base of answers.
22
Empower Your Employees

Imagine if
Imagine if you had a 360

degree view of customers,
could proactively identify
customer needs, and
collaborate more effectively
with colleagues to provide
service and market offers.
24
Banker Productivity Scenario Chain
Enterprise Scenarios Mapped to Benefits
Key Benefits

non-interest related activities Increased revenue by cross-selling
Reduce costs and enhance efficiency and up-selling

mobile and online experiences and services with the 360 degree view Improved customer retention and
loyalty
Deliver Omni-Channel customer Risk Analytics
experience % Processes & systems compliant
Mergers & acquisitions and joint
ventures Enhance customer communication % Apps compliant
collaboration % Infrastructure compliant
25
Banker Productivity Scenario Narrative
Deliver operational and strategic insights to make the right decisions at the right time.
Current State Relationship Manager
I do not have timely access to the information or insight I need
on-premises or at customer locations to effectively provide and
sell services. I am unable to efficiently track leads, or to quickly
exchange information or collaborate with my colleagues. I waste
time trying to collate information spread across our organization.
I am losing customers to banks that offer more efficient and
personalized experiences.

I have a 360 view of my customers, supported by analytics, that Provide excellent and personalized service
helps me provide the most appropriate services, and predict
Identify new opportunities and increase revenue
those that may be needed in the future. I can efficiently and
effectively manage my portfolio of customers, driving down costs Remain connected to our colleagues and information resources
while remaining agile. I can collaborate with my colleagues and
customers from anywhere to resolve requests and identify
opportunities for increasing revenue.
26
Banker Productivity Solution Storyboard
Bank employees can efficiently provide services to customers and collaborate with colleagues to perform tasks, remain informed, and increase sales.
Banker and customer connect Banker efficiently provides services and makes sales Increased sales at decreased cost
360 Customer View
Dynamics Mobile Banking Investment

CRM capabilities
Collaboration Advanced Insurance Loans

Tools Analytics
Anytime, anywhere Customer Increased
satisfaction sales
Capabilities Services and offerings Decreased cost
Top-line Impact
<>
Increase banker agility and sales efficiency Supporting smoother workflows Spending so much time pulling together Improving the customer experience when
Improve time to market solutions Enabling employees to work from customer information interacting with a banker or other employee
Increase up-sell and cross-sell anywhere, anytime Making best guesses about customer Winning and retaining customers
Improve collaboration among employees Providing bankers with deeper customer preferences Improving our brand as an innovative bank
Reduce costs of providing customer-centric insight Losing sales opportunities from being focused on customers
services Using a 360 customer view to become unaware of customer needs and desires
familiar with customer
27
A Day in the life of a Relationship Manager
Start of Day Taxi to Clients Office Client Office Bank Office
View Calendar & Task Confirm Appointment Capture Meeting Notes Working with Dashboard
View Calendar Activity Call customer Capture opportunity View Dashboard
View Task Drill into dashboard
Phone Phone Tablet PC
Email & RM Dashboard Review Account status Review Pipeline

Check email in Outlook Dashboard Update Activity
View Activity in Calendar 360 of the customer Advance Opportunity flow-UI
View RMs To Do List Export Open Leads To Dynamic
Use Inline Charts to filter Hot Leads Pivot Excel Sheet
Change Flow-UI
process and Qualify
the hot lead
Tablet Tablet PC
Outlook/Tablet App/flow-UI/ Dashboard/

Tablet, Phone/App Tablet App
Inline Charts Dynamic Excel Export
28
Banker Productivity Technology Storyboard
Microsoft technologies provide for more productive banker experiences. Skype for business and Office 365 allow bankers to
be productive anywhere on any device.
360 Degree Customer View
Provide service Anywhere
Personal Customer
Banker Representatives
Banking Anywhere
Customer
Dynamics Consistent Customer
Financial Specialist
CRM Online Experience
Skype for
Office365
Business
Customer receives service

Banker collaborates and App Machine anywhere, anytime
Storage PowerBI
serves customers anywhere Service Learning
using any channel Back Office
Core Banking Express Route
Cloud-based services augment core banking capabilities
29
Banker Productivity Benefits Dependency Network


Develop relevant
Accessible expertise,,
insights with real-time Improved profit
shared information,
account data, news, margins and
and consolidated
Social Computing social activity and operational efficiency Generate greater
customer view to
connections revenue from
enable collaboration Reduce costs and
and optimize products and services
enhance efficiency
operations through cross-sell and
Seamless integration Increased intra-bank upsell
Data Management
identify the needs of Customers are
Efficient deployment the customers, Provide consistent
increasingly seeking a
which enables a recommend the right customer experience
Improved customer targeted personalized
robust, reliable, products, and across all channels
retention and loyalty approach
Development Platform scalable and secure efficiently process
system applications
30
Banker Productivity Value Touch Points
Enable customers to pick products Increase sales efficiency Improve data process management
which are better suited for their Improve lead response time Improve data modeling capability
needs Reduce customer churn Improve analytical capabilities
Personalized, customized, real-time Reduce customer complaints Use disparate data and provide a comprehensive view of the
Strategic services customer
Transaction behavior analysis
Faster turn-around time for service Have sophisticated metrics that rationalize the investment in
Acquire more profitable customers
requests the IT solution
Predictive analysis of inter-segment movement
Improve customer engagement and loyalty
Time to Value Real-time services for customer Improve time to market
Reduce cost of service Improve opportunity win rates Reduce cost of data analytics
Increase Reduce transaction charges Improve revenue/employee
Revenue Optimize prices Improve fund management through credit
utilization analysis
Reduce campaign costs Usage of raw data (structured and unstructured) to determine
Decrease Cost Reduce back office costs sophisticated insights like the drivers of customer attrition
Lower customer acquisition costs
Decrease Risk Reduce risk of non-compliance
31
Banker Productivity Value Realization Scorecard
Banker Productivity Business Outcomes/Results

Customer Employee Increased sales effectiveness and productivity
Banking anywhere Unlock them from their desk Reduced operational risk
Shorter wait times and faster Better access to information Increased security
resolution of problems Easier access to relevant data Improved employee satisfaction
Faster, more personal interactions Virtual team always available
Faster and more satisfying
experiences
Move from mere customer
satisfaction to customer delight
Operations
Improved and paperless workflow
Optimized distribution network
Lower operational cost through automated processes
Improved regulatory compliance
32
Banker Productivity Roadmap

Better financial decisions and client Phase 3: Optimize middle office capabilities SQL
recommendations (investment analyst) PowerBI
Less time needed to validate accuracy Support from analytics, BI, machine learning Azure ML
of data Enable mobility Risk and Grid Compute
Faster analysis and development of
Enable increased productivity and collaboration among bankers Office 365
financial reports
Device and Application Management
Optimize customer Phase 2: Streamline front office capabilities (relationship mgr)

profitability Unified Communications & Messaging
Enable communications, mobility, modern desktop
SharePoint
Value
Serve clients across multiple
Enable increased productivity and collaboration among front office
channels Office 365
Tools for relationship managers
Improve customer satisfaction Identity and Access Management
Dynamics CRM
Meet strict financial services Phase 1: Enhance security and compliance infrastructure
compliance requirements Help provide secure infrastructure Active Directory Premium
Keep customer and Minimize threat vectors Rights Management Services
financial data well Disaster Recovery & Business Continuity
protected Create data loss prevention (DLP) capabilities
Information Access ( Unified Search,
Reduce the cost of third- Support EDiscovery
social Tagging, search across structured
party compliance solutions and unstructured data)
Time
33
Westpac Customer Story
Improve productivity, quality of customer engagement, and compliance
To support banking at the speed of We needed to equip our financial planners with tools
to drive mobile productivity. I want all my financial
life, Westpac provides devices and tools planners to carry Windows 8 tablets to enable deeper
to advisors to facilitate engaging, customer engagement. This will translate into more
productive consultations improving effective conversation to ensure we meet and surpass
the needs of our customers.
the sales process and differentiating
Michael Chesworth,
Westpac from its competitors. General Manager Financial Planning, Westpac

Optimize customer profitability and turn Provided advisors with Advisory Improved advisor productivity.
customers into loyal advocates. Services Line of Business App and Engaged connected and informed
Empower financial advisors to operate Windows 8 tablets. customer experience.
as a team, anywhere, any time. Secure platform that meets rigorous
compliance needs.
34
Optimize Your Operations

Imagine if
Imagine if you could use

data insights to manage
your market, credit, and
operational risk more
effectively.
36
Financial Risk Management Landscape
Consumer credit risk Credit derivative risk Risk Types Potential Bank involvement
Credit Concentration risk
risk Securitization
Interest rate risk Commodity risk

Market Currency risk Volatility risk
risk Equity risk
Refinancing risk
Liquidity
risk
Table A: Corporate Treasurers Priorities Have Changed

Operational risk management Settlement risk
Since the Crisis
Operational Legal risk Profit risk
2007 2009 2010
risk Political risk Systemic risk
Implementing new
Reputational risk Counterparty risk Forecasting cash flow
treasury structures
Liquidity Availability/cost of
Counterparty risk
management credit
Market portfolio RAROC
Foreign Exchange (FX) Liquidity
Financial risk Risk-free rate Value at risk risk management
Forecasting cash flow
management
modeling Modern portfolio theory Sharpe ratio Liquidity Management
Source: Aite Group
37
Risk Analytics Scenario Chain
Key Benefits

Increased revenue by cross-selling
non-interest related activities
and up-selling
Reduce costs and enhance efficiency
and services with the 360 degree view Improved customer retention and
mobile and online experiences
loyalty
Risk Analytics
Deliver Omni-Channel customer
Improved compliance of processes &
experience
Mergers & acquisitions and joint systems
ventures Enhance customer communication Improved compliance of apps
collaboration Improved compliance of infrastructure
38
Risk Analytics Scenario Narrative
Perform increasingly demanding risk analytics using scalable compute resources

Current State Risk Officer
We cannot scale our computing resources to meet expanding
regulatory requirements for demonstrating that we properly
manage our risk. We need greater processing power and our
compliance costs are increasing. We cannot rapidly provisioning
sufficient capacity to meet our computational needs.

We have access to all the computing power we need for our Decrease our costs to remain compliant with increasing regulations
expanding analytical needs, supporting our regulatory
Perform risk analytics rapidly whenever needed
compliance. We have a flexible and agile HPC solution that
enables us to optimally manage our computing capacity based Maintain security of customer and financial data
on our usage, quickly spinning up more capacity only when we Improve our ability to gather and analyze a wide range of data
need it.
39
Risk Analytics Solution Storyboard
Risk Analytics is performed using scalable compute resources to produce information needed for risk management and regulatory compliance.
Regulators require increasing scope of Use scalable cloud-based resources to perform analytics Decrease compliance costs
risk analysis
Machine
Visualization Learning
Data Advanced
Management Analytics
Top-line Impact
Cost-effective and capable infrastructure that supports analytical requirements now and in the future.
Improved collection and unified access to Using simple visualization tools to Basing risk related decisions on Reducing expense of risk management
risk data and indicators monitor and understand risk exposure inadequate amounts of information activities
Reduced time needed to compute real-time Receiving real-time information about Limiting analytical capabilities due to Increasing the availability of risk information
risk exposure using machine learning and security and other risks shortcomings in infrastructure and insight across all bank areas
advanced analytics Making risk analytics into many Securely protecting customer and
Improved decision making employees every day activities institutional data
40
Risk Analytics Technology Storyboard
Risk Management Applications
Risk Management Analysis
Asset backed risk Market risk
Credit risk Equity risk Probability Distributions Sensitivity Analysis
Regulatory Risk Monte-Carlo Simulations Variance and Trend
Metrics Liquidity risk Commodity risk
Modeling and simulations Analysis Modeling and
Operational risk Etc.
Basel III, Decision Tree Analysis Simulations
AML, OCC, Etc.
Etc.
Express
Route
Office365 Event Hubs API Management
Analytics
Stream Operational Azure Machine
PowerBI
Analytics Insights Learning
Service Bus
Risk Managers
Compute
G Series VMs Azure Batch App Service
HDInsight/Hadoop
Storage
Back Office
Core Banking Data Sync Azure Storage SQL Database Data Factory
41
Risk Analytics Benefits Dependency Network


Develop relevant
insights with real-time Accessible expertise, Improved profit
account data, news, shared information, margins and
Social Computing social activity and improved risk operational efficiency Generate greater
connections reporting enable revenue from
collaboration and Reduce costs and
optimize operations enhance efficiency
through cross-sell and
Seamless integration Increased intra-bank upsell
Data Management
identify the needs of
the customers, Create solutions for Increasing demands
Efficient deployment managing risk and for managing risk and
to enable a robust, recommend the right Improved customer
products, and improving compliance compliance
reliable, scalable and retention and loyalty
Development Platform efficiently process
secure system
applications
42
Risk Analytics Value Touch Points
Personalize cost of finance based Risk-based pricing Improvement in quality of master data management
on credit score and history Managing portfolio-return profile Data modernization
Better transparency Optimize exposure and concentration limit Eliminiation of redundant and inconsistent data
Better security settings Improve data modeling capability
Improve compliance Improve analytical capabilities
Investments in products that are of
better quality and improve the Improve provisioning through more accurate
Strategic forecasting of likely losses
predictability of returns
Reduce payouts and legal hassles
Fraud prediction
Better quality of assets
Improve governance
Improve underwriting decisions
Time to Value
Improve returns through accurate Improve quality of assets Leverage data and IT investments to derive quantifiable
Increase return forecasting Enable real-time credit decisions business metrics. Enables the IT leaders to measure IT
Revenue Better pricing investments

Reduce cost on complex and expensive burden of
Decrease Cost
compliance
Decrease Risk Better risk-adjusted offerings Ability to detect and mitigate fraud
43
Risk Analytics Value Realization Scorecard
Risk Analytics Business Outcomes/Results

Customer Employee Reduced cost of scaling capacity /
Access to information and insight Ability to run analysis more quickly improved performance
that the bank has produced and evaluate more data Reduced cycle time to conduct analysis
Personalized cost of finance based Ability to develop and use more Less expensive cost per analysis
on credit score and history complex models (machine learning,
Better transparency predictive models)
Security Real-time view of risk-return

scenario
Better risk-adjusted offerings
Improved decision making
Operations
Ability to scale processing and storage when needed
Test and review current risk thresholds
Enhance security through fraud analytics
Ability to predict the value at Risk (VAR)
Account validation against watch-list
44
Risk Analytics Roadmap

Phase 3: Real-time risk analytics
Big Data Azure ML
Improve risk management
Predictive modelling Big Data
Increased agility in responding to risk
Real-time streaming data collection and analysis Stream
Improve regulatory compliance
Pervasive Risk Analytics and BI throughout bank Risk Computing and Modelling solutions
Phase 2: Expand data types and volume

Improve analytical results Support larger data sets
Data Factory
Value
Improve quality of decisions Support less structured data
StorSimple
Perform wider variety of Batch processing of data
Storage
analysis
Phase 1: Reporting with descriptive analytics

Improve access to Improved access to operational data Data classification
business data
Batch processing of data Power BI
Improve operational risk
Analytic results supporting operations Power view
management
Reduce costs Risk Visualization and reporting tools
Time
45
Credit Suisse Customer Story
Reduce operational costs and streamline risk analysis process
Credit Suisse needed an innovative, Creating a central risk repository with
integrated and cost effective solution to automatic analytics capabilities has improved
assess investment risk, counterparty risk productivity, expanded our coverage capacity,
and given us more time to think about
and investment guideline monitoring for portfolio risk.
clients.
Tony Patti,
Chief Risk Officer for
Credit Suisse Asset Management

Credit Suisse wanted a flexible solution CSAM built its Strategic Performance, Reduced operational costs and
architecture that would allow additional Exposure, Attribution, and Risk (SPEAR) streamlined risk analysis process
risk analytics services to be plugged in business intelligence solution using Better positioned to react quickly to
as necessary. In this way, the bank would Microsoft SQL Server and SharePoint changing requirements
be able to use a broad range of complex Server.
asset management products. Stay competitive, investment banks
After successful deployment in the must process increasing volumes of
CSAM United States officeas well as trades and analytics quickly, in real-
the Prime Services Risk Management time
Group of the investment bankSPEAR
is now being rolled out at CSAMs Zurich
HQ.
46
Digital Transformation Book of Dreams
Transform Your Products

Imagine if
Imagine if any business in

the world could be your
sales channel even for cross
borders transactions,
without escalating costs.
Bank as a Service Scenario Chain
Key Benefits
Margin pressures and cost reduction development of profitable customers Engage Your Customers show a single face to the customer

Increased revenue by cross-selling
non-interest related activities
and up-selling
Reduce costs and enhance efficiency
Empower Your Employees Improved customer service and
and services with the 360 degree view Improved customer retention and
mobile and online experiences
loyalty
Deliver Omni-Channel customer Optimize Your Business
Improved compliance of processes &
experience
Mergers & acquisitions and joint systems
ventures Enhance customer communication Improved compliance of apps
collaboration Improved compliance of infrastructure
Bank as a Service Scenario Narrative
Serve customers all around the world trough partner network in a automated way
Current State Marketing Officer
Our partner network isnt large enough for us to improve
offerings, operations, and customer service.
We have difficulty establishing new partnerships because of
technical and commercial aspects.
We are not considering cross-border partners because the cost
of managing the transactions quickly eats up our margins.

We can automatically add new partners by enabling them to use Increase the number of channels we use to sell our products
our services.
Increase the number of touch points to improve loyalty
Establishing a new sales channel takes days and not months.
Be flexible and agile managing our partner network
We have no big differences when conducting transactions
Be able to manage cross-border transactions without escalating costs
between domestic or foreign partners: the world is our market.
Bank as a Service Solution Storyboard
Customers interact with different commercial partners worldwide that automatically use banking services creating new channels everyday.
Customers conduct business with Obtain partner services and conduct transactions Seamless customer & partner
banking partners experience
Any Mobile
Banking Investment
channel capabilities
Natural User Advanced Insurance Loans

Experience Analytics
Customer & Efficient
Customer and partners interact Partner operations
using preferred channels Partner Capabilities Services and offerings satisfaction Partner Innovation
Top-line Impact
Happier customers with an enhanced partner led value proposition. Ability to provide intelligent value offerings in every attribute of the customer & Partner experience.
Increased customer satisfaction and loyalty Aggregating customer information Requiring customers to manually Providing banking services anytime,
Increased cross-sell and up-sell obtained through new partner channels integrate services anywhere
Improved operational efficiency Providing convenient ways for partners Restricting customers from performing Serving customers over any partner channel
Increased channel breadth to learn about and choose products and transactions anytime, anywhere Increasing sales of products and services
services for their customers Scaling cost with transaction volume Increasing customer satisfaction
Using customer analytics to connect
customers with the most pertinent
Bank as a Service Technology Storyboard
Azure combines the services to build the solution

Bank as a Service Technology Storyboard
Partners
Social channels
partner
Partner web site
Social Engagement
capture customer social
activity
Dynamics Event Hubs PowerBI

CRM Online
Analytics
Cognitive Stream Azure Machine
Services Analytics Learning
Bot Framework Compute

App Service VMs HDInsight/Hadoop
Customer
Customer receives bank

service thought the
Storage
API Management
partner web site with the Data Lake Azure Storage SQL Database Data Factory
integrated Bot Back Office
Core Banking
Cloud-based services augment core banking capabilities Express
Route
Bank as a Service Benefits Dependency Network

360 degree view to

BlockChain services New navigation Increased revenue by
provide insights into a Improve acquisition,
Artificial Intelligence, position with the bank development of cost reduction
Language profitable customers
Understanding & BOT
as a Service Develop relevant
insights with real-time Accessible expertise, Improved profit
account data, news, shared information, margins and
Social Computing social activity and improved risk operational efficiency Generate greater
connections reporting enable revenue from
collaboration and Reduce costs and
optimize operations enhance efficiency
through cross-sell and
Seamless integration Increased bank- upsell
Data Management
with several 3rd party partners collaboration
& core banking to present a single
systems Bank services help face to the customer
Partner channels to
Enterprise Integration identify the needs of
the customers, Create solutions for Increasing demands
Efficient deployment recommend the right managing risk and for managing risk and
to enable a robust, products, and Improved customer improving compliance compliance
API & Services reliable, scalable and efficiently process retention and loyalty
Development Platform secure system applications
Bank as a Service Value Touch Points
One-stop shop and access to Streamline services to customers Increase technology innovations
expertise Increase partner footprint Amplify the customer experience
Strategic Improve service quality and Increase channel scalability Improve channel integration
integration Unlink service scale and costs Scale seamlessly
Alignment with needs and Reduce time to enter new geographic markets. Increase agility in responding to new business needs (cloud
Time to Value preferences Use rapid prototyping to test ideas. time)
Cloud-based development environments reduce cycle times
Increase Increase cross-sell/up-sell
Revenue Increase customer wallet share
Improve satisfaction levels Decrease capital expense Providing self service technology at lower value
Partner promotions and discounts Reduce cycle time in partner service resolution Reduce cost of transaction
Decrease Cost Reduce cost of operations (specifically online Reduce cost of data acquisition, storage, and management
services)
Reduce customer & partner acquisition costs
Focus proposals on hi-value customers Movement from traditional waterfall IT development to agile
Decrease Risk
delivery models
Bank as a Service Value Realization Scorecard
Bank as a Service Business Outcomes/Results

Customer Partner Reducing customer churn / increased
Personalized to the customer Consistent channel experience customer satisfaction
reflecting their needs and wants Increased touch points with the Increased revenue from cross/up sell
Increased touch points with the bank/banker Reduce cost per customer contact
bank/banker
Fast Growing partner network that act as a
channel
Operations
Enterprise-wide view that supports intelligent multi-channel decisions
Continuous improvement through test and learn
Reduced branch traffic
Reduced operations costs
Bank as a Service Roadmap

Phase 3: Scale to worldwide sales without escalating costs
Leverage world wide services distribution topology
Improve risk management Azure BlockChain
Leverage BlockChain as a cross border distributed ledger
Avoid increasing operating costs as a Service
Enable country specific service offering
Further Increase channel breadth Global Datacentre
Service
distribution
Phase 2: Integrate value added services like insurance and near

Increase sales trough up sell
non banking products Azure ML
Value
Increase customer satisfaction Enable chat as a service PowerBI
Build virtual to real assistant proper escalation paths Azure Cognitive
Improve service catalogue integration Services
Skype & Skype for
Business
Phase 1: Expose banking services as a scalable API service

Improve customer & Persona analysis and scenario modelling and prioritization Azure API Management
Partner experience Determine customer journey, architecture and gaps (current/future state) API Apps
Raise customer satisfaction Partner integration applications PowerBI
Reduce operating costs
Increase channel breadth
Time
Additional Resources
Book of Dreams EPG

http://aka.ms/BookOfDreams Banker Productivity
Channels & customer experience
Vision Demonstrators Remote advisory
Integrated End-to-End Financial Financial analytics
Services Customer Experience Customer & product analytics
Mobile Banker Vision Demonstrator Mobile banker
Risk compute & modeling
Integrated Solution Pack
Core banking
Digital Bank Integrated Solution Pack
Payments
Contributors and Reviewers
Andy Eunson
Core Blessing Sibanyoni
Development David Meltzer
Team J.D. Meier
Mark Bestauros
Many thanks to the following key contributors and reviewers:

Alan Weaver, Andrew Comas, Arno Harteveld, Bart Bischoff,
Contributors Brad Sevenko, Conan Thomas, Darron Inman, Deb Bannon, Jeff Nye,
and Reviewers Jolly Kaur, Marcelo Marquez de la Garza, Marco Segato,
Padmavathi Srinivasan, Philippe Brissaud, Puneet Gupta, Rachita Ghosal,
Rupesh Khendry, Simran Sachar

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The Banking

Digital Business Transformation Patterns

Imagine if you had a 360 degree view of

Any Time Any Place

Any Device Any Channel

Focus Areas for Key

Customer expectations for Better customer experience and

Targeting valuable customer

Increasing risk Risk management and Manage risk better,

Find branch and

Meet with rep at Meet online with rep

Customer Data Assisted Channel Consumer Financial Corporate Bank Portfolio

BIAN Service Landscape v.3.0

Engage Your Empower Your Optimize Your Transform Your

Imagine if your customers

Business Drivers Investment Objectives Enterprise Scenarios

Create a 360 degree customer view to Improved profit margins and

Banker Productivity Improved customer service and

Desired Future State

Natural User Advanced Insurance Loans

Anywhere Provide service

Customer Collaborate Anywhere

Customer receives service Bankers collaborate to serve

Customer Relationship 360 degree view to

Omni-Channel Customer Experience Business Outcomes/Results

Business Benefits IT Projects

Phase 2: Enable mobility to support customer scenarios and

Phase 1: Shared view of customer state and 360 view of customer

Business Needs The Solution Results

Empower Your Employees

Imagine if you had a 360

Create a 360 degree customer view to Improved profit margins and

Banker Productivity Improved customer service and

Desired Future State

360 Customer View

Dynamics Mobile Banking Investment

Collaboration Advanced Insurance Loans

Start of Day Taxi to Clients Office Client Office Bank Office

Phone Phone Tablet PC

Email & RM Dashboard Review Account status Review Pipeline

Outlook/Tablet App/flow-UI/ Dashboard/

Provide service Anywhere

Customer receives service

Enabling Enabling Business Investment

Customer Relationship 360 degree view to

Decrease Risk Reduce risk of non-compliance

Banker Productivity Business Outcomes/Results

Business Benefits IT Projects

Optimize customer Phase 2: Streamline front office capabilities (relationship mgr)

Business Needs The Solution Results

Optimize Your Operations

Imagine if you could use

Interest rate risk Commodity risk

Table A: Corporate Treasurers Priorities Have Changed

Create a 360 degree customer view to Improved profit margins and

Perform increasingly demanding risk analytics using scalable compute resources

Desired Future State

G Series VMs Azure Batch App Service

Enabling Enabling Business Investment

Customer Relationship 360 degree view to

Risk Analytics Business Outcomes/Results

Security Real-time view of risk-return

Business Benefits IT Projects

Phase 2: Expand data types and volume