Client/Server: A Thing of the Past for Banks

Kontostand, Überweisung, Geldkarte aufladen: Bankgeschäfte werden mobil (Foto: Deutsche Bank AG)
Managing banking transactions on the move (photo: Deutsche Bank AG)

Software from the Internet, mobile applications, and BI solutions also dominated the second day of the SAP Congress for Banks in Frankfurt. Client/server architecture is a thing of the past. As Gerald Faust, head of the Banking industry business unit (IBU) at SAP said in his keynote, SAP is now focusing on on-demand solutions from the Internet and mobile software.

If the forecasts are to be believed, by the year 2014 some three billion people will be managing their finances – loading their cash cards, transferring money, paying invoices – using a smartphone or a laptop while away from their home or office.

Faust predicted that, in the future, owners of mobile devices will decide which programs and applications they want to use when and where. With Customer Analytics and SAP BusinessObjects Enterprise Risk Reporting for Banking, SAP provides the relevant on-device applications.

SAP’s acquisition of Sybase means that even more products are set to be added to SAP’s mobile banking portfolio. Sybase already offers mBanking 365, mPayments 365, and mRemittance 365.

mBanking puts banks in a position to implement mobile services, so that customers can manage their money from their cell phone. Using text messaging or a mobile Web browser, bank customers can call up their account balance, transfer money between accounts, and pay invoices. At the same time, mBanking is a communication channel for financial institutions to inform their customers about new products and interest rates.

Nowadays, ATMs can do more than churn out cash – for example, customers can use them to top up their prepaid cell phone accounts. mPayments is the software behind this. It enables secure transactions, as well as premium text messaging and WAP billing.

mRemittance is a platform for processing payments and enables the provision of mobile services. For example, users can send mobile credits or withdraw cash from ATMs without using a card. mRemittance supports all networks, mobile devices, and currencies.

Next page: A look at software for banks

Overview of accounts displayed on a smartphone (photo: Deutsche Bank AG)
Overview of accounts displayed on a smartphone (photo: Deutsche Bank AG)

Gerald Faust, Head IBU Banking SAP, bei seiner Keynote (Foto: Christiane Stagge)
Gerald Faust, head of SAP's IBU Banking holds his Keynote (photo: Christiane Stagge)

At the DSAG Annual Congress 2010, SAP Executive Board members Jim Hagemann Snabe and Gerhard Oswald already presented on-demand software for 2011. Faust stressed that SAP Travel OnDemand and SAP Sourcing OnDemand were also ideal for use in the financial services industry.

In the future, SAP software for banks will also be equipped with new BI tools and reporting functions from the SAP BusinessObjects portfolio. Furthermore, Faust announced that SAP Bank Analyzer will support Basel III requirements and the International Financial Reporting Standards (IFRS) 9.

In a parallel exhibition, visitors had the opportunity to find out about partner products and solutions. For instance, Innobis AG demonstrated how ERP Banking and Banking Services 7.0 can be combined. Using a master credit agreement as an example, the company showed how a long-term loan in SAP Loans Management can be connected with master contact management and the customer’s checking account in SAP Banking Services.

Syskoplan, a company headquartered in Gütersloh, Germany, presented e.KV – its electronic credit template for corporate customers. Regardless of whether bank customers are applying for a new loan or a credit extension or have exceeded their credit limit, the application offers end-to-end information about each person. The application can be integrated with the SAP for Banking set of solutions.

Hamburg-based CAS AG offers software that works with SAP Customer Relationship Management (SAP CRM) and is specially tailored to the needs of banks and financial institutions. Its application supports banking-specific regulations such as the German Securities Trading Act, the German Banking Act, and data protection legislation.

CAS provides SAP CRM in combination with SAP Business Partner for Financial Services (SAP BP-FS). The software supports compliance mechanisms such as Chinese walls and the Banking Secrecy Act. It automatically produces a classification suggestion in accordance with the German Securities Trading Act and generates outline agreements.

Furthermore, the program offers credit monitoring templates that can be called up at regular intervals or when triggered by specific events. Repayment schedules and loan conditions such as interest rates and margins can also be mapped using the solution. And what’s more, all the master data is integrated – including data from non-SAP systems.

From credit monitoring through deadlines for ratings and regular strategy meetings with customers, the software allows banks to generate their schedules automatically. The software also connects with Lotus Notes and Microsoft Outlook.

Parallel zur den Fachvorträgen: Die Ausstellung der Partner (Foto: Christiane Stagge)
The partner exhibition accompanied the presentations (photo: Christiane Stagge)

Managing banking transactions on the move (photo: Deutsche Bank)