Making BancAssurance Agle 4th Annual BancAssurance Conference - Vienna

1. Creating an agile BancAssurance platform
4th Annual BancAssurance Conference - Vienna, Austria
23rd April, 2009
Kalpesh Desai
CEO, Agile Financial Technologies
kalpesh.desai@agile-ft.com YOUR LOGO
www.agile-ft.com
Page  1
Confidential

2. Agenda
1 BancAssurance – Current business drivers
2 Challenges in deployment
Agility In
BancAssurance
3 Technology as an enabler of business agility
4 About Agile Financial Technologies
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3. Agenda
1 BancAssurance – Current business drivers
2 Challenges in deployment
Agility In
BancAssurance
3 Technology as an enabler of business agility
4 About Agile Financial Technologies
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4. The need
Regulatory
Banks
Regime
Extensive branch
network, infrastructure &
Relaxed regulatory penetration
Customer retention
Regime
challenges – require
shift to universal Low cost
banking model distribution model
Dismantling barriers
between banking
and insurance
products Opportunity to diversify
banking revenues – fee
income
Customer
Centricity
Complex financial needs – Achieve reach in a
require asset protection timely and cost-
(insurance) and growth 70% of world efficient manner Need to target
(investment) plans assets with HNWI’s to Margin
people > 50 position pressure/credit
complex
Unprecedented Access to risk/enhanced KYC
products
population ageing liquidity
High distribution
Insurance
costs
spend increases Economic
Channel fidelity
as GDPs reach slowdown
Poaching of quality
threshold agents
Power concentrated
by a few leaders
Under-serving of
middle-tier
Clients Insurance
Environment
consumers
Companies
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5. Fragmented Approach By Banks & Insurers
Client
Branch network Agents/Brokers
Insurance
Banks sell Life
Banks sell Companies
and Pension
Non-Life sell Investment
products
products Products
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6. Channels Servicing The Landscape
Opportunity to introduce
BancAssurance
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7. Services Expectation Gap
•Automate services; evolve technology
•Outsource non-core functions
•Identify and structure fees based on “needs-based” approach
High
Service
Needs
NEEDS
Level Client
Service requirement
GAP
Low Profitable person-to-person
servicing capability
High Net
0 Mass Emerging Mass Affluent Emerging
Worth
Market Affluent Wealthy
Client Segment
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8. Different strokes for different folks
Plan
Build &
Build
Manage
Ultra Legacy
Wealth
HNWI
Protect
Mega Net Worth Wealth
Customers
Advice
HNW Customers
Mass Affluent Customers
Personal/Premier Banking Customers
Volume of potential Clients
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9. What clients want
How clients desire to be
Traditional process of servicing
serviced
• Brokerage services (product • Global outlook to “asset
management”
experts and financial advisors)
• Investment Management • Research on international
services (relationship-based development
• Transparency and visibility on
approach to financial products)
• Wealth Planning (personal portfolio performance and risk
financial planner) mitigation
• Support and resources and
tracking of social returns on
their philanthropic and
charitable pursuits
• Choice of sectors,
geographies, community
focused, socially responsible
investment screening
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10. Servicing the need
Advisory based sales
Segmented
products
Over the Counter/Direct
Marketing
Creditor Products sold with
existing product distribution
Mid balance High balance Preferred/
Salary
Loan holders liabilities liabilities Private
accounts
customers customers Banking
Client Base
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11. Business Drivers
Diversify the banks’ products and
services portfolio
Integrate marketing efforts
Reduce dependence on interest-
based income
Optimize distribution costs
Gain access to a larger client base
Increase cross-selling opportunities
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12. BancAssurance Business Models
Classical fully
integrated
• All products are
sold by the bank
Full-time selling • Advisory based
model product offering
• Trained bank staff • Centralized support
sell most of the services
Embedded products
• Integrated into the
Agents • Wide range of Wealth
• Insurance agents simple & complex Management
products
sell in banks Platform
Distribution
• Licensed advisors
Agreements within the bank
• Referral model • Higher product
• Inadequate training complexity
to bank employees
• Limited product
range
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13. The Need
Leverage joint branding
Product Creation & Product fitment
Underwriting and differentiation
Value to Value to Bank
Insurer
Reduce distribution costs
Additional offering at no
by leveraging
additional infra cost
infrastructure
Leverage of branch network Holistic financial offering to
(reach) and client base (depth) client
Value to Customer
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14. Objective – Leverage Customer Centricity
Objectives
Factor Bank Insurance Company
Retention of clients Access to a quality customer
base. Ability to offer customized
Customers
offerings to a wider, wealthier
client base
Ability to service more Revenue and channel
Serviceability financial needs under one diversification
roof
Effective and profitable Quicker geographical reach on
Infrastructure
the bank„s backbone
resource utilization
Revenue diversification, Low distribution cost, increased
Economics increased fee based income, customer penetration and
reduce revenue volatility servicing, increased revenues
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15. Objective - Increase revenues/cross-sell
Credit Shield/
Lost Card
Insurance
Credit cards
Credit Life
Insurance
SME Banking
Mortgage Life
Insurance
Mortgage
Motor
Insurance
Auto Loans
Personal
Credit
Insurance
Personal Loans
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16. Objective - Winning Strategy For All
Customers
Receive holistic solution from a
one-stop shop
Insurance
Companies
Banks
Deepen client New distribution
relationships channel
Increase fee income Low distribution cost
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17. Evolving A Client Centric Approach
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18. Agenda
1 BancAssurance – Current business drivers
2 Challenges in deployment
Agility In
BancAssurance
3 Technology as an enabler of business agility
4 About Agile Financial Technologies
Page  18
Confidential

19. Integrating BancAssurance in operations
Global Banking Private Banking
and Markets Global
HNWI
Institutions
Corporate Mass Affluent
Commercial Personal
Banking banking
SME Mass Market
Wholesale and Retail Products
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20. Process and Technology Challenges
Inability to align
products and
services with
customer profitability
Islands of
information created People and
by the deployment of relationship
point solutions and dependent
disparate IT processes
solutions
Poor visibility of Past revenue growth
Business
economic led to increased fixed
Under-
performance and costs of acquiring
drivers by customer and serving new
performance
segments customers.
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21. Technology Can Inhibit or Enable
• Inflexible Applications
• Islands of information
• Tedious Product Development
• Interface touchpoints
• Outdated software
• Succession planning
• Uncertainty
• Implement a multi-carrier
BancAssurance model
• Constantly evolving needs
• Increasingly sophisticated
I.T.
and demanding client base
• Increase competitiveness
Business
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22. quot;In a time of accelerating turbulence, the
valuation of a company will be strongly
affected by how it executes change.quot;
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23. BUSINESS AGILITY
!! NOT A LUXURY !!
The ability of a
business to adapt
rapidly and cost
efficiently in response
to changes in the
business environment.
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24. Question
how do you change a business model and
innovate?
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25. If your current systems do not enable teams to
collaborate
And create a common platform linking
processes, knowledge and tools to leverage the
BancAssurance opportunity Page  25
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26. Bridging the gap
• Net worth • Based on Client Lifetime
• Client interests, Value
• Analyze client needs
frequency of interaction,
communication and create tailored
preferences and offerings
• Build additional
financial behavioral
attributes. capabilities or find
partners to service the
gap
Position
Customer
Products and
Segmentation
Services
Stay Current Service
with Client Delivery
Needs Model
• Continuously monitor • Determine a service
and update client approach
• Deliver service through
profiles and behavior
patterns multiple channels and
• Engage research and practice models.
surveys to question
internal assumptions
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27. Agenda
1 BancAssurance – Current business drivers
2 Challenges in deployment
Agility In
BancAssurance
3 Technology as an enabler of business agility
4 About Agile Financial Technologies
Page  27
Confidential

28. Aligning Business
Business and Organizational Operational
customer strategy design effectiveness
• Identify and migrate • Break out of silos to • Build, buy or
clients from transition from a partner to offer
banking services to product-centric to a more complete
asset management customer-centric asset
services organization management,
• Position advisory • Integrate different retirement & estate
planning and
capabilities and components of
protection
best-of-breed offering to provide
capabilities
investment and a single point of
• Leverage physical
insurance products contact for clients
• Assess viability of footprint
• Ensure rigorous
providing a asset
adoption of “know
management
offering to the mass your customer
rules”
affluent
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29. With I.T.
 Shift from islands of information to a holistic integrated system
 Deploy CRM to enable identification of potential wealth-
management clients and provide an integrated view of the customer
and information across all product groups
 Using technology as a platform for serving the mass affluent
 Improving information and data exchange to share information
across silos
- Integrating legacy and new systems
 Outsource non-core functions to service providers
- Investment Accounting
- Research
- Reconciliation and transcription
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30. Technology as an enabler of business agility
 Technology is a key operational factor for every insurer
- From Lead Generation to Policy administration and Claims Management.
 Major IT drivers:
- New product development.
- Integration with insurance company data, sales and services practices
- New distribution channels.
- New regulatory requirements.
 Integrate tightly with the Bank’s own systems
 Web-centric IT system.
- On-line case management and request handling
- Channel Management.
- Policy, Product details and online premium calculator
- Facility for group insurance customers to view individual savings status on the web.
 Facility to pay premiums through credit cards, Net banking, Standing
Instructions, etc.
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31. Approach
Insurance Products
Web based access Interface between IT systems
to Channels, Employees, in the Bank & Insurance
Branches and Customers company
Banking Products
Creation of new products Service offering by
Servicing client needs Integrating processes
Core Banking Platform
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32. Approach
Maintain bank‟s service
Multi-carrier support
standards
Integration with
core banking
(Customer
Information)
Ease of premium
Utilisation of alternate
payments using auto
service points to minimise
debits, cards, net
cost
banking, collection
agencies
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33. Technology as an enabler of business agility
o Create value for banking
Increased
and insurance customers
Response
Levels
o Improve experience for
distributors, partners and
Increased
Employees
Revenues
o Reduce the sales cycle
o Enhance interoperability
Cost
Efficiency
between systems
o Shift to holistic integrated
systems from islands of
disparate information
Scaleability
o Provide integrated view of
customer information
Integrated/
Aligned
across various products
Processes
o Improve information-sharing
practices
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34. Self serve capabilities using the web
Bank Employees/
RMs
Unified Technology Platform
Scalability and Adaptability
Insurance
Agents
Consultants
Distribution
Channels
Brokers
Corporate/
Individual
Customers
Direct
Marketing
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35. Examine deployment models
Higher return on Software as Service
IT investments Entire computing capacity is outsourced
to third party/ solution provider
Competitive
costing
Platform as Service
Service to create, operate and run applications
Expense Control
Infrastructure as Service
Fully outsourced infrastructure and application
environment
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36. Integrated BancAssurance Framework
Multi-Carrier
Management
Mid/Back Front Office
Office Integration
Integration
Product Performance
Portfolio Management
Distribution
Network
Automation
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37. Thank you
Kalpesh Desai
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38. Agenda
1 BancAssurance – Current business drivers
2 Challenges in deployment
Agility In
BancAssurance
3 Technology as an enabler of business agility
4 About Agile Financial Technologies
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Confidential

39. The Evolution
Backed by Private Equity, Agile Financial Technology is a mid-sized Indian IT company focused on
providing products and services to the Investment Banking, Asset Management, Insurance and Capital
Market sectors
M&A Strategy led by a strong management team
100% buy-out of IT/ITES companies Management teams of underlying
Agile emerges as a vertically integrated
companies are inculcated into Agile‟s
focused on the Financial Services &
mid-market player
Insurance Sector core team
Create economies of scale, efficiency and a powerful sales, support, and marketing process to leverage a
vertically integrated product & services offering
Consolidated revenues of US$ 30mn in FY08
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40. The Constituents
Insurance Management Technology Solutions
Investment Banking BPO
•Managed Services
•Treasury & Dealing •General, Life, Medical, •Application processing
Activity
•Security Consulting
•Fund Management Broking, Banc Assurance •Document Verification
•App maintenance/
•Portfolio Management software •KYC
•Liabilities Management development
•Takaful compliant •Banks, AMCs, Insurance
•EAI
•V@R Management •Strategic Resourcing
•ALM
•Over 14 years in •Over 20 years in
•Over 6 years in business
•Over 20 years in
•140+ employees
business business
business
•130+ employees •2100+ employees
•Provide consulting,
•120+ employees
•Ranked by IBS •40 locations in India
•Initial deployments in the development and
•India‟s largest domestic
Intelligence (UK) as 6th managed services to
M.E. at Emirates
Overview
largest Treasury solutions BPO
banks, insurance
Insurance, Al Ain Al Ahlia
•Provides transaction
•Oldest Oracle partner in
provider globally companies and asset
•Largest Indian wholesale processing services to
management companies
India (1985)
banking software provider EVERY bank, mutual
•Ranked as “Highly fund, and life insurance
recommended Company” company in India
by THE BANKER, India
•Bombay Stock Exchange
•Chola-Mitsui
•Union National Bank •Mashreq, First Gulf
•State Bank of India
Key Clients
•Apollo DKV
•Bahrain National Holdings Bank. ADCB
•Barclays
•Deutsche Bank
•AIG Mutual Fund •Amex, StanChart
`
•BNP Paribas
•Edelweiss
•StanChart Mutual Fund •Barclays
•Edelweiss
•ONIC (Oman)
•Reliance Mutual Fund •AIG`
•Kotak Life & Kotak AMC
•Astra (Singapore)
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41. Delivering Value
• Managed Services
• Insurance
• Security (BCP/DRP)
• General, Life, Broking,
Consulting
• Bank Assurance
• Strategic Resourcing
• Investment Bank/Fund
• Enterprise Application
Houses
•
• Asset Management Integration
•
• Investment & PMS
• NBFC‟s/Banks
Technology
Products Services
BPO KPO
• Banking
• Loan, Payments,
Liabilities origination
processing • Fund Accounting Services
• Mutual Funds • IPO processing & Support
• Origination, KYC • Equity & Forex Research
• Insurance
• Claims processing, KYC
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42. Milestones
Our BPO, Pamac processes over 7% of all retail applications & 27% of all
new credit card applications processed in India
Pamac is ranked amongst the largest Indian domestic BPO vendors by D&B
Over 10mn transactions processed per annum. Over 70mn US$ of loans
disbursed per annum
The largest Mutual Fund in India (over 22 Bn$ AUM) uses iDEAL Funds
iDEAL Funds processes 30% of India‟s Mutual Fund‟s AUM
Around 45% of the money exchange transactions in India are managed by
MercuryFX
iDEAL is ranked as the 6th largest Treasury solution globally by IBS, UK;
and the largest Indian wholesale banking software in terms of footprint
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43. Our Engagement Process
Horizontal Services
Vertical Sales Organization
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44. Our Presence
Central & Eastern Europe Middle East
 Russia
 UAE (Direct Presence)
 Kazakhstan
 Oman
 Ukraine
 Bahrain
 Poland
 Kingdom of Saudi Arabia
 Kuwait
 Qatar
Asia Pacific
Africa
 India (Direct Presence)
 Mauritius (Direct Presence)
 Sri Lanka
 Kenya
 Indonesia
 Tanzania
 Malaysia
 Malawi
 Phillipines
 Ethiopia
 Singapore (Direct Presence)
 Nigeria
 Ghana
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45. iDEAL Investment Management Suite
Investment/Fund
Banks Finance Companies
Houses/Insurance
•iDeal Integrated •iDeal Funds – Front,, Mid & •iDEAL Finance –
Treasury Management Back office for fund, Liabilities (Borrowings)
investments and portfolio Management
•Mercury FX –Merchant
management
& Retail FX •Quadryx – OTC
•Fund Managers / Investment Derivatives
•Quadryx - OTC
Managers in AMCs,
Derivatives •CALMS – ALM
Insurance Companies and
•RiskMark – Value @ •Clients
Portfolio Management
Risk •L&T Finance, Shriram
companies
•iDeal Wealth Transport, Canfin Homes,
•FundMetrics –Risk &
Management Sundaram Home Finance,
Compliance reporting Fullerton India Credit,
•Clients
•iDeal Funds Performance HDFC, Kotak Prime
•State Bank of India
Reporting Limited, Fullerton India,
Karnataka Bank,, Indian
•Clients Cholamandalam DBS
Bank, Axis Bank, OBC,
•AVIVA Life Insurance*,
Central Bank of Sri
Bharti AXA Life*, TATA AIG
Lanka,, PNB Gilts, HDFC
life*, LIC (Debt portfolio),
Bank, ING Vysya Bank,
Shriram Life, Reliance Life,
SocGen, Union National
Reliance general, Sahara
Bank (UAE)
Life, BNH (Bahrain),
Reliance MF, AIG MF,
StanChart MF, HDFC MF, SBI
MF, , Pru ICICI
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46. Insurance Management Suite
Insurance
Brokers Banks
Companies
• Agilis - • BrokerWorld – • BancAims –
Integrated Insurance Comprehensive
Insurance Brokerage BancAssurance
Enterprise Management Management
Management • Rate comparison-
• Non-life, Life, Policy
Composite Administration-
Claims follow up-
• Takaful
Accounting
• Health & TPA’s
• All life and non-
life businesses
covered
• Powerful
commission
tracking
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47. Technology Solutions
Solution Framework Infrastructure Services
• Data Centers – Design, Security Paradigm,
• IntiCraft – A customer self service application for
Implementation, Movement and Support.
Mutual Funds
• Infrastructure Software Support – Database,
• Life Insurance Portal – Customer, Agent and
Middleware, OS, Security and Messaging
Employee Portal – A virtual office for Life
• Disaster Recovery Design and Implementation
Insurance Companies
• HRMS add-ons – Expense Management, • ISO 270001 Consulting
Appraisal System, Emp Intranet, Emp Helpdesk • Database and schema migration
• Secondary Sales – Tracks movement of goods
sold beyond the first point of sale
Enterprise Application Integration System Integration
• Application Integration • Hardware sizing and selection
• Customer Application development and • Building a solution for solving a problem – may
maintenance require a mix and match of third-party products
•Middleware expertise on Oracle, IBM and Sybase
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48. Business Enablement Services
Fund Admin/ Investment
Verticals Serviced
Banks NBFCs Insurance Telco's
Registrars Banks/Funds
Equity & Policy Credit Risk
Fund R & T/ Back Office
Processes Enabled Forex & Claims Evaluation/
Accounting IPO Processing Accounting
Research Admin Processing
Customer
Data Mining/
Receipts/
Accounts Reporting
Research
interaction
MIS
Payments
Activities
Outsourced
Txn
Fulfilment Verification Dispatch Reconciliation
Processing
Business Process Strategic
Application Managed
Services
Provisioning Consulting Staffing
Development Services
iDEAL
Application 3rd Party/Client Apps
Provisioning
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49. The Company We Keep
Banks
Investment
Management
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50. The Company We Keep
Insurance
Financial
Services
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51. Infrastructure
 India
SPOKE
- 40 cities across India, 80+ locations
SPOKE B(3)
A(3)
SPOKE
SPOKE SPOKE
A(2)
C(1) C(3)
- Hub & Spoke model SPOKE
SPOKE
B(2)
B(1)
SPOKE
 ISO 9001:2000 certified BPO H
A(1)
U SPOKE
H H C(2)
B
H.
- 300+ employees in product development and U U
B
O.
B B
H
deployment A C
H. U SPOKE
O. B F(2)
- 150+ employees in technology support services H F
SPOKE
H
D(1) SPOKE
U F(1)
U
B
- 2,100 employees in business enablement services B SPOKE
SPOKE
DE(1) E(2)
E
(BPO) SPOKE SPOKE
D(2) F(3)
SPOKE
SPOKE
E(3)
D(3)
- 7,600 resources deployed onsite in banks
 UAE
- Dubai Internet City
- Dubai Outsourcing Zone
- Sharjah Airport International Free Zone
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