In the increasingly competitive transactional banking market, a storm is rising. Trends like collaboration, new technological achievements in areas such as artificial intelligence (AI), changing customer behavior, and pressing market conditions are driving huge changes.
To prepare for these shifts and to thrive in the future, financial companies need essential competencies. Key capabilities for today’s financial organizations include the following:
- Agility, which helps organizations keep pace with business and technology trends such as open banking, collaboration, and cloud deployment
- Acceleration, which allows financial companies to serve customers faster, for example, by using intelligent technologies, simplifying processes, reducing time to market for products, or enabling smart delivery options
- Cost efficiency to help financial institutions automate servicing up to full straight-through-processing
- Excellent business insight spanning from product information to revenue-related figures, such as interest key indicators
To help companies pave the way to intelligent transactional banking, SAP collaborated with leading banks, researched market trends, and explored research insights. And the company built on its experience of providing the backbone of transactional banking for customers worldwide, managing millions of accounts and contracts.
By launching SAP Transactional Banking for SAP S/4HANA, SAP is helping financial institutions provide next-generation banking services and extraordinary customer experiences. The package provides financial institutions with an open-core banking platform that enables intelligent transactional banking. It allows banks to participate in ecosystems — supporting open banking and beyond. Furthermore, it facilitates cost savings through intelligent technologies and processes.
SAP Transactional Banking for SAP S/4HANA comprehensively supports and automates the servicing of transactional banking processes in both retail and corporate banking. The solution enables financial institutions to meet market demands such as cooperation, new business models, or cloud.
| Area | Retail banking examples | Commercial banking examples |
| Deposits and account management | Current/checking accounts, savings, term deposits, bundled pricing, overdraft protection | Current/checking accounts, savings, notional pooling, cash pooling |
| Lending | Installment loans, mortgages, micro-loans, consumer lending | Commercial loans, facilities, mortgages |
| Collateral management | Real estate liens, pledges, personal guarantees | Commercial real estate liens, shipping, collateral pools |
Solution highlights that help financial institutions cope with changing conditions in today’s banking industry include:
- Collaboration and ecosystems: APIs and other interfaces support open banking and new business opportunities including marketplaces.
- Cloud: A choice of flexible delivery options – such as cloud, hybrid, or on premise – and increased agility through faster deployment models are available.
- Innovative pricing models: Flexible capabilities provide options such as cross-product pricing.
- Fast time-to-market: Graphical product configuration helps users get up and running quickly.
- User experience: An award-winning user interface allows users to quickly become proficient.
- Next-generation processes: Simplified processing streamlines tasks, helping, for instance, to more efficiently manage open items.
- Real-time processing: 24×7 availability helps ensure rapid transaction processing.
- Intelligent automation: Automating numerous processes helps reduce costs using intelligent technologies; for example, using machine learning to help post-processing run faster and more efficiently.
- System landscape simplification: Deployment in a single instance with other SAP S/4HANA solutions enhances cost efficiency
- Unseen data insights: The ability to integrate data from operational sources (OLTP) and analytical sources (OLAP) provides new ways of business insights.
- Reporting capabilities: On-the-fly calculations accelerate analysis with fast data access.
SAP Transactional Banking for SAP S/4HANA offers valuable benefits to financial organizations, helping them achieve unparalleled competitive advantage on their intelligent enterprise journey.
For more information about the solution, visit the Banking area of sap.com.
This article first appeared on the SAP News Center.