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Master Data Management in Financial Services
Gregg Loos
VP Sales MDM
October 24, 2008
The Battle of Ulm: what’s true?
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In 1805 Austria and Russia formed Third Coalition against Napoleon.
Planned Date for the “battle”: October 20th
What happened? No Russians.
70.000 Austrian Soldiers:
• 20.000 escaped,
• 10.000 killed or wounded,
• and the rest made prisoner.
• 170.000 French Soldiers:
• About 6000 killed or wounded.
• Gregorian vs Julian calendar?
• 12 day difference.
• First known data quality problem?
© 2006 Oracle Corporation – Proprietary and Confidential
Fragmented Information Increases Risk and is
Expensive to manage
Ellison’s Law
“The value of information increases exponentially as
fragmentation is reduced.”
© 2006 Oracle Corporation – Proprietary and Confidential
What are banks doing? Consolidate Information
Global visibility through a single source of truth
• Consolidate and standardize key operational data
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Customers
Employees
Products
Payments
Financial Consolidation
Organizational Hierarchy
Insight to Action
• Consolidate documents and digital assets
• Consolidate servers and storage
• Optimize profitability and performance through
common analytics and reporting
“Business that use a formal, enterprise-wide strategy for Global
Data Synchronization will realize 30% lower IT costs in
integration and data reconciliation at the department level through
the rationalization of traditionally separate and distinct IT projects.”
© 2006 Oracle Corporation – Proprietary and Confidential
More Competitive, Lower Costs
MDM value on the IT Roadmap
1
Standardize
Business
Processes
Consolidate
Information
Improve visibility and
reduce cost:
Customers
Financials
Organizations
Data Warehouses
Documents
Consolidate
Applications
& Data
5
Standardize
Service
Platform
2
Standardize
Corporate Services
Improve efficiencies and
reduce costs:
Financial Mgmt
Human Capital Mgmt
Procurement
GRC & Performance
Mgmt
Facilities & Projects
3
Standardize
Front Office
Grow revenue, improve
customer retention and
reduce cost:
Marketing
Sales & Service
Relationship Mgmt
Collaboration
4
Modernize
Core Processes
Modernize applications
while transitioning to a
lower cost platform
iFlex footprint
Insurace footprint
Application Modernization
Standardize Service Delivery Platform
Process
Management
Business
Intelligence
Integration
User
Interaction
6
Deploy Grid Platform
Optimize
Infrastructure
7
Source
Application
Management
© 2006 Oracle Corporation – Proprietary and Confidential
Outsource Application & Infrastructure Management
Oracle’s Banking Footprint
Oracle
Complete, Open, Integrated
Third Party
Governance,
Risk &
Compliance
Risk Based
Decisioning
Customer &
Business
Insight
Lifecycle Management
Marketing
Selling
Retail
Originating
Servicing
Commercial
Private Wealth Mgmt
Customer Experience
Risk Based
Pricing
Platform
Teller
Economic
Capital/RAPM
Internet
Banking
Kiosk
Call
Center
Team
Selling
Order
Mgmt
Internet
Banking
EBPP
Security
Trading
Client
Servicing
Derivative
Pricing
CRM &
Marketing
Order
Entry Platform
Lead
Mgmt
Financial
Planning
On
Demand
Call
Center
Product and Transaction Processors
Risk
Management
Deposits
Operational
Risk
Loans
Market Risk
Investments
Credit Risk
ALM
Payments
Savings
Mortgages
Cards
(Credit / Debit)
Leasing
BASEL II
& 1A
Loans
Trade
Finance
Treasury
Payments
Asset
Mgmt
Syndicated
Loans
Structured
Derivatives
Investor
Services
Leasing
Nostro
Recon
Custody
Performance Mgmt
Market Data
Lock Box
Core Banking
Ledger
Portfolio
Mgmt
Compliance
& Limits
Trade
Processing
Balance & Positions
Product Hub
OFAC
Channel
Analytics
Check
Order
Marketing
Analytics
Market
Feeds
Performance
Management
Profitability
Analytics/RAPM
Compensation
Clearing &
Settlement
Reconc
Funds Transfer
Pricing
iliation
Operational
Excellence
Org Hierarchy Hub
Accounting Hub
Credit Risk Hub
Op Intelligence
HR Analytics
Corporate Administration
Fed Wire
SWIFT
Enterprise GL
Consolidation
Budgeting
Profitability Mgmt
Incentive Comp
Analytics
Platform
POS
Human Capital Mgmt
Projects
Procurement
Fixed Assets
Real Estate
Portal &
Dashboards
Credit
Rating
Business
Activity
Monitoring
ACH
Enterprise Technology
Regulatory
Reporting
Customer
Analytics
Exec Analytics
AML
SOX
External
Interfaces
Fees & Commissions
Master Data Management
Customer Data Hub
Compliance
Core Banking
Ledger
Integration
Cash
Mgmt
Deposits
Customer
Insight
Rich Client F/W
AJAX, Web 2.0
Database (Grid,
Memory, Embed)
Enterprise Content
Mgmt
Web Services
Orchestration (BPEL)
J2EE Services, ESB
and Rules Engine
Systems Mgmt
Directory Services
Web Services Mgmt
Identity Mgmt
Access Mgmt
Business
Process
Analytics
Other
Systems
Key Business issues driving MDM in Financial
Services
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Risk & Compliance ie Basel II
Complicated process for client On-Boarding
Poor customer data integration across operating divisions
Disconnected Governance processes for stewarding information
High Data Management Costs for reconciliation
Inflexible system infrastructure to support “Customer Centricity”
programs ie Account Centric vs Customer Centric
•M&A!!!
© 2006 Oracle Corporation – Proprietary and Confidential
MDM example in Capital Markets: Legal Entity and
Credit Risk Master Data Management
Key Capabilities of an Oracle Credit Risk Hub:
 Sourcing and aggregating multiple vendor feeds
and internal systems
 Legal Entity Hierarchy Management
 Centralization of On boarding and KYC
 Risk Concentration Analysis
 Risk Aggregation and Reporting
 Data Stewardship
 Integration with Downstream Systems
© 2006 Oracle Corporation – Proprietary and Confidential
ROI Opportunities:
• Improve Risk Profiles
• Reduce Regulatory
Capital
• Rationalize Data
Provider Spending
• Reduce Manual costs
• Reduce system
integration costs
XYZ Bank will benefit by creating an integrated
view of Risk…..
• Fulfills key elements of Basel II
compliance
• Greater accuracy in capital allocation
• Faster reaction to changes in risk
exposure
• Increased trade execution automation
• Reduced costs of data management
© 2006 Oracle Corporation – Proprietary and Confidential
Oracle Credit Risk Hub Highlights
• Speed of Deployment (Phase 1 90-120 Days)
• Lowest Risk/Lowest Cost Integration
• Hub can be leveraged across the Enterprise to
include other divisions, entity types (eg.Contacts)
• Link to Retail Business
• Manage multiple versions of Customer across
business lines ie Operations view, Credit view, Sales
view
• Deep MDM Industry experience
• Large Oracle Partner channel
© 2006 Oracle Corporation – Proprietary and Confidential
Oracle Legal Entity and Credit Risk Hub
Front Office/Customer Facing Applications
SFA
Call
Center
Trading
Desk
ERM
Business Features
• Complete and accurate view of the legal
entity to feed risk analysis and other
downstream trading systems
• Aggregate risk exposure and profitability
• Active monitoring of changes and
transactions
Business Users
…n
Enrichment Sources
D&B
Real-time/near real-time Master Data
Data Stewards
Legal Entity and Credit Risk Hub
BANKSCOPE
Middleware
Real time/
Batch
Master Data
Universal Customer Master
Data
Quality
Deduplication
Party Data
Model
Privacy
Customer
Management
Oracle Hub stores
relevant counterparty
reference data and
associates transaction
data creating rule
based events
AVOX
Real-time/near real-time Master Data
Business Users
Collateral
Mgmt
Limit
System
Internal
Ratings
Risk
Scenario
Analysis Analysis
Downstream Applications
© 2006 Oracle Corporation – Proprietary and Confidential
Security
Master
…n
IT Features
• Persists master data with references to
transactional data
• Complete metadata management
• Rules-based configuration
• Service-oriented architecture
• Application Integration Foundation
Oracle Enterprise Master Data Management
The most complete MDM offering in the market today
Data Governance New
Operational
Systems
New
Siebel
Analytical
Financial
Site
Product
Supplier
SAP
DW
Customer
EBS
Analytical
MDM Apps
Operational MDM Apps
BI &Datamarts
Planning
PSFT
JDE
Analytical
Systems
Oracle
Customer Hub
Oracle
Product Hub
Oracle
Site Hub
Oracle / Hyperion
Data Relationship
Management
Financial
Consolidation
Custom Apps
Application Integration Architecture
External
Apps
© 2006 Oracle Corporation – Proprietary and Confidential
Oracle Fusion Middleware
Budgeting
Application Integration Architecture –
Composite Business Processes – Beyond Middleware
Oracle Application Integration Architecture
Best Practice Industry Processes
Pre-built Sustainable Integrations
Common Objects and Services
Open Standards Based Foundation
Connector
Connector
Connector
Connector
Customer
Relationship
Management
Billing and
Revenue
Management
Service
Fulfillment
Master Data
© 2006 Oracle Corporation – Proprietary and Confidential
• Business Process Models
Provide foundation for
understanding your business
• Pre-built Processes
Connect across applications
quickly
• Enterprise Business Services
Reduce the time to deploy and
change
• Enterprise Business Objects
Enable any application to plug
into processes
• Application Business Conn.
Svc.
Application specific service
translation and transformation
Partner Focus for Oracle MDM
• Focus on working 70% of the opportunities with
Partners
• Implementations drive 2x-5x Services to Software
revenue
• Data Governance and oversight
• Retail Banking, Wealth Mgmt, Capital Markets
• Life Insurance, Property and Casualty
• Payers
• Partner Enablement program
© 2006 Oracle Corporation – Proprietary and Confidential
MDM Resources – Co-Prime Sales
Mike Rosser
Group VP
Chicago
415-848-3561
[email protected]
Gregg Loos
MDM VP
San Fran
917-533-3640
[email protected]
Christopher Dwight
Bus Dev
Austin
512-239-8500
[email protected]
Jonathan Beinke
MDM Rep
Austin
512-573-7313
[email protected]
Mark Bryan
MDM Rep
San Fran
415-215-5034
[email protected]
Jim Burke
MDM Rep
San Fran
707-338-1166
[email protected]
Ted Carroll
MDM Rep
New York
203-249-0337
[email protected]
Tom Kight
MDM Rep
Atlanta
404-668-9905
[email protected]
John Parker
MDM Rep
DC
415-690-9192
[email protected]
Ron Sachs
MDM Rep
Chicago
847-366-3342
[email protected]
Lee Jacobs
MDM Rep
Rochester
585-267-5297
[email protected]
Kevin Bugg
MDM Rep
Denver
650-430-0357
[email protected]
TBH
MDM Rep
© 2006 Oracle Corporation – Proprietary and Confidential
MDM Resources - Presales
Rick Beck
Group VP
San Fran
510-282-0229
[email protected]
Bruce Hamman
Presales
Seattle
206-295-9504
[email protected]
Piyush Ruparelia
Presales
Charlotte
407-454-4975
[email protected]
Yogesh Sharma
Presales
Detroit
734-674-6470
[email protected]
Phillip Nifong
Presales
Dallas
972-510-9879
[email protected]
Drew Wilson
Presales
Dallas
817-247-7993
[email protected]
Bryan Lester
Presales
Dallas
469-693-5171
[email protected]
Gino Fortunato
Presales
San Fran
415-867-4195
[email protected]
Steve Singleton
Director
MDM Soln
Architects
Atlanta
678-315-7655
[email protected]
Dan Gage
Soln Arch
Columbia
803-397-6408
[email protected]
Mike Hammond
Soln Arch
Bridgewater
908-902-6553
[email protected]
Shirley Hoffman
Soln Arch
Los
Angeles
310-699-7636
[email protected]
© 2006 Oracle Corporation – Proprietary and Confidential
Other Key DRM Resources
David Butler
Marketing
San Diego
415-609-2648
[email protected]
Pascal Laik
MDM
Strategy
San Fran
415-260-6797
[email protected]
Manoj Tahiliani
CDM
Verticals
San Fran
650-468-8186
[email protected]
Rohit Tandon
MDM Refs
Chicago
630-248-4793
[email protected]
Dhiman Bhattacharjee
MDM ROI
Specialist
San Fran
781-752-5204
[email protected]
m
Neeraj Gokhale
Fusion
MDM
San Fran
650-533-7701
[email protected]
© 2006 Oracle Corporation – Proprietary and Confidential