 |
 SAP indicates commitment to Banking industry
SAP has announced innovations to its industry-specific banking software that supports banks’ business processes from the front to the back office.
by: Nathan Dukes
In a shift away from the traditional IT banking system, SAP’s new banking solution combines front and back end functionality, and places more emphasis on customers.
Traditionally, banking systems focused on the separation of the two main components, which for SAP were Finance and Risk- the back end accounting component, and Core Banking- the front office.
SAP, in building their banking solution from the ground up, has merged these two components. The result, according to SAP ANZ Director for the Financial Services Industry Stuart Pike, is the ability for the bank to make timely decisions.
“The market is much more competitive, and because of the finance and risk platform in the back end, the bank can be more careful in the way it manages capital to fund those products. The bank can get a single view of their finance and their risk infrastructure,” he said.
The second major shift in this latest SAP Banking release is a renewed focus on customers, away from the product centric environment of old.
“Banking software was based on the products banks sell, and they created lots and lots of product systems, where each of those products goes to multiple customers,” Stuart said.
“Over the last 10 years, SAP has looked at where the next generation of banking would be. For us, it’s about putting the customer in the centre of the banking environment rather than the product.”
Post Lehmann Brothers there has been a real focus in the banking industry on customers, and on safety. That’s safety of the bank and safety of the capital.”
The latest modular banking solutions from SAP, based on SOA, now enable banks to extend their investments using existing systems.
The SAP Banking portfolio now includes enterprise management solutions and transactional banking solutions, as well as risk management and compliance solutions.
SAP’s investment in the banking services sector was a strategic move, which took into consideration the increasing importance of the banking market.
“SAP has 27 industry solutions that are built on a common platform, but banking is a) very complex, and b) it’s the heart of all activity around the globe. Every business and every person has a relationship with a bank. Thirdly, a lot of IT spending is done by banks,” Stuart said.
Don Trotta, senior vice president and global head of financial services industry at SAP AG, says SAP’s Banking Solutions have gained traction in the market in the last few years.
“The new release of banking services is just the latest example of SAP's ongoing commitment and investment to provide the leading banking platform available in the industry that enables our customers to truly innovate and transform their business and IT models,” said Trotta.
Source: www.insidesap.com.au |
|
