Status Update: Banking on Social Media

Twitter and BI analysis: banking software is about to become multifunctional (photo: Deutsche Bank AG)
Twitter and BI analysis: banking software is about to become multifunctional (photo: Deutsche Bank AG)

Some 550 banks in 60 countries around the world currently use SAP software to cover everything from account procedures and loans to securities management. For financial institutions, customer relationship management (CRM); governance, risk, and compliance (GRC); product management; sales; human resource management; and analytics are primary concerns.

In the pages that follow, you can read about the functions SAP’s banking software currently includes and innovations in the pipeline.

SAP’s banking software is divided to focus on business processes in the following areas:

  • Sales, service, and marketing
  • Transactional banking
  • Finance and risk management
  • Human resources

Sales, service, and marketing is about answering customer queries, managing customer contacts, and handling sales. SAP offers the following software to help cover these tasks:

  • SAP Marketing, Sales, and Service for Banking (includes CRM analytics)
  • SAP Financial Customer Information Management for Banking
  • SAP Price Optimization for Banking

The SAP Transactional Banking package, meanwhile, provides functions for managing loans and various types of securities:

  • Core banking (loans, retail, deposits)
  • Collateralization
  • Corporate loans
  • Covered bonds
  • SAP Payment Engine
  • SAP Leasing

SAP also has a software package in store that focuses on finance and risk management and GRC. It includes the following:

  • SAP Accounting for Banks
  • Currency management and optimization
  • Performance management, real estate life-cycle management, carbon management
  • Risk and compliance management

Finally, SAP software such as SAP Payroll (including shared services) is available for human resource management, along with functions for talent management and workforce scheduling.

Next page: An advance look at new functions in SAP’s banking software

Preview of new functions

Since the global economic and financial crisis of 2009, banks and other credit institutions have been subject to stricter regulations and compliance requirements. They aren’t the only organizations facing new challenges, however: Service and marketing departments now have to deal with the growing field of online business and the increasing use of mobile devices, which demand new means and channels for managing customer relationships. Customized products and services have become the new standard.

These are the reasons why SAP’s banking software now includes the following new offerings:

SAP Marketing, Sales, and Service for Banking

Social networks such as Facebook, Twitter and Yelp continue to gain users, and companies have long since discovered them as marketing instruments. The banking sector has also recognized their potential; for more, see our article on the 2010 SAP Congress for Banks, “Facebook Opportunities with CRM 7.0,” and Client/Server: A Thing of the Past for Banks.” SAP software now supports targeted management of Twitter and Facebook campaigns and aids in collecting and gauging customer opinions.

Users of in-memory technology (related article on SAP High-Performance Analytic Appliance), meanwhile, can analyze data on customers and finances in real time. In the future, real-time quote management and personalization should also be possible. These enhanced analysis functions enable users to render decisions in just seconds.

The SAP BusinessObjects portfolio already enables customers to conduct comprehensive analyses and create interactive graphics. The software applications for banks now give employees the means to express forecasts and all kinds of developments in terms of KPIs. The ability to generate dashboards that display the efficiency of individual departments is also set to become a standard feature.

SAP Transactional Banking

Want to stop wasting paper while managing your documents? This software package will cover all of your key processes and help you go fully digital. Individual customer accounts will soon be accessible through various account keys, and SAP is promising increased functionality in mapping invoices – particularly third-party payments (subsidies).

Finance and risk management

SAP’s software package for finance and risk management is about to be integrated into SAP ERP and SAP BusinessObjects BI solutions. SAP Master Data Governance will soon include a chart for account management, as well as an extensive GRC framework updated with the latest Basel II regulations. In addition, SAP’s financial shared services are now equipped with a new account interaction center with which users can monitor service level agreements and conduct reporting for shared service centers. SAP Bank Analyzer, meanwhile, serves as an integrated basis for finances and risk information, and SAP BusinessObjects BI solutions are set to support forecasts of risk and profit rates.

Human resources

Last but not least, human resource departments can look forward to enhanced talent management functions that will help them recruit tomorrow’s managers, while clear, easy-to-use dashboards will make much of their work easier.