Banking Industry eGuide for Automation

A Digital Re-invention Roadmap for the Banking Industry Profiting from the wealth of opportunities from digital re-invention takes tenacity and foresight. Banking industry leaders, from the traditional to the born-digital, must transform into nimble organizations that think digital, act digital; deliver digital.

eGuide | 2022

TABLE OF CONTENTS Introduction

3.

Digital Re-Invention in the Banking Industry: A Wealth of Opportunities.

R Systems - Banking on the Ever-Shifting Horizon

4.

The Urgency of Change

5.

A Technology Partner that Speaks Banking

6.

How We Work

7.

Automating of Non-Core Functions

8.

Accelerating Impact through Cost Efficiencies

9.

Driving Customer Experience

10.

And beyond

11.

Who do We Work With

12.

Why R Systems?

13.

Our Successes

14.

Meet Some of Our Team Members

18.

What We Believe

19.

Book a free four-week engagement

20.

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eGuide | 2022

INTRODUCTION Digital Re-Invention in the Banking Industry: A Wealth of Opportunities.

We’re living in an age of monumental transition. Business and technology are in lockstep, driving enormous change and forcing companies across all industries to adapt to an evershifting landscape where digital disruption has become the new normal.

The need for digital change in the Banking Industry has never been more urgent. Organizations that delay this transition risk losing customers to fierce competitors who have already mastered digital re-invention and overhauled their business to succeed in a digital-first world.

Traditional banks, constrained by legacy systems and outdated processes, are still finding their footing in an increasingly digitized industry, while the neo banks, once technology trailblazers, are grappling with how to thrive in an era of relentless change where they were once pioneers.

It’s not just Banking Industry changes driving this momentum.

Surviving the aftershocks of the pandemic, war, and broken supply chains requires constant vigilance and the ability to predict and pivot when the next tremor hits.

Profiting from the wealth of opportunities from digital reinvention takes tenacity and foresight. Banking industry leaders, from the traditional to the born-digital, must transform into nimble organizations that think digital, act digital; deliver digital.

It’s no easy task to predict when the next tech groundswell will rattle the foundations of your business, and even harder to be prepared and ready to pivot when the shockwaves hit. That’s why having a technology partner like R Systems with over two decades of experience in the Banking Industry, is the smart choice when it comes to navigating your digital re-invention journey.

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R SYSTEMS - BANKING ON THE EVER-SHIFTING HORIZON When it comes to business and technology change is the only constant. The better prepared you are for what lies ahead, the more skillfully you can profit from the coming wave. Leading the charge on digital re-invention in your organization takes more than just predicting what’s on the horizon, it means having the agility to pivot when that change comes.

R Systems helps companies understand which technologies are on the horizon, allowing you to exploit the right technologies at the right time. We translate business requirements, identify the impact, and implement the right technologies at the right time, enabling you to add new digital capabilities to help drive willful and deliberate disruption to your business.

This requires continually monitoring and optimizing Modernizing Business Operations, Customer Experiences and Enabling Intelligent Decisioning.

Modernizing Business Operations

Optimizing Banking Customer Experiences

Enabling Intelligent Decisions

R Systems helps your bank automate laborious, critical tasks at scale and speed, with accuracy. This allows you to redeploy workforces to focus on more meaningful tasks and responsibilities, leading to massive productivity gains, reduced labor costs and more.

Data and data analytics are the beating heart of providing a rewarding customer experience by accurately predicting what banking customer will do next. R Systems’ CX solutions provide true, realtime customer insights that drive business growth and ROI.

Banking leaders need complete visibility to make definitive business decisions. R Systems leverages the power of analytics, cutting-edge technologies, and best practices to gain actionable insights from the large volume of data across the enterprise.

The Next Wave: Shifting from Automated to Autonomous.

The Next Wave: Moving from the Personal to the Contextual.

The Next Wave: Turning Insights into Action

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THE URGENCY OF CHANGE The majority of financial institutions are already putting in place, or setting the wheels in motion, for the challenges of a digital- first future.

Percentage of US Financial Intuitions Already Implementing these Digital Innovations.

72%

of cloud-based collaboration platform

58%

data-driven personalization

56%

In 2020, North American banks were expected to spend up to 40% of their IT budget on new technology, while European banks invested almost 30% of their budget on new technology.

In 2019, 50% of European banks had adopted AI and big data for direct client interactions, and another third of them had been preparing to do so.

Businesses that had been using AI at scale were performing an average of 11.5% better than those who were not.

With R Systems as your technology partner, we’ll forge a plan for your organization’s digital future. Our turnkey solutions include digital accelerators to automate processes, deliver world-class customer experiences, provide deep insights into your data, and ensure you stay compliant in the face of increased scrutiny and compliance

conversational AI/chatbots

52%

ability to capture user information online

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A TECHNOLOGY PARTNER THAT SPEAKS BANKING R Systems is a digital product engineering partner that can quickly assemble an exceedingly skilled team to develop highquality software — from the front-end UX to the back-end processes. We can help you design and build the next-gen products, platforms, and digital experiences that will attract, captivate, and retain customers while generating more revenue.

With over 20+ years of Industry expertise, our banking capabilities include:

AI/ML & Data Management

Financial Systems

services for greater financial insights

expertise such as Temenos T24 Transact, FIS, TSYS, MasterCard , Fiserv, First Data

RPA Services

Financial Platform Engineering

to increase efficiency of financial services process

25+ years of experience

Cloud Transformation & Integration services to support expansion

Omni Channel Enablement framework for customer engagement & satisfaction

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HOW WE WORK

Taking the first steps

Accelerate impact

Customer experiences

Competitive differentiators

Digital Advisory Services y Evaluate digital strength y Data Advisory

Shifting from a Legacy bank to Neo Bank y Unattended onboarding and KYC y Business automation for core processes (retail & commercial banking) y Loan operation y Mortgage operation

Deeper Customer Understanding y (AI + Data Analytics) and proactively identify customers’ needs y Drive revenue growth through analytics

Intelligent Decisioning y Predictive Modelling for customer churn, credit and lending risk

Developing a roadmap...

Product/Platform Engineering y HR Automation y F&A Automations y Enhancement Services y Modernization Services

Delivering cost efficiencies...

Streamline the total experience...

Process Mining y Mapping, repairing, and managing internal processes IPA for Banking y Real time fraud detection, credit card processing, and front office interactions.

Redesign omnichannel customer experience y Open banking strategy to provide customers with easier access to all of their banking information y Reduce hold times and pressure on contact center y Contextual customer engagement

Data insights = better actions...

Ease Compliance & Risk Management y Anomalies detection from repetitive task performed by robots y Anticipate mis-compliance by AI & Predictive ML Digital Banking Platforms y Enable Open Banking, Digital or Platform Banking

Cloud Transformation

Our Practice Areas

Design

Architecture (Core Platform/APps Deve)

Data Engineering

AI, ML, Analytics (Intelligence)

Agile |

Intelligent Automation

SAFe |

Hybrid

Cloud

Mobile

Security

DevOps

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AUTOMATING OF NON-CORE FUNCTIONS Both neo banks and traditional banks face the reality of needing to stay ahead of the competition. Without a strategic digital re-invention plan to bring new offerings to market, banks will struggle to gain traction and reap the benefits of automation.

As a result, RPA has quickly become an essential tool for many banks. According to a recent report published by Fortune Business Insights, the global robotic process automation market size is projected to reach USD 6.8 billion by the end of 2026. For traditional banks, this is a manageable first step in improving operational efficiencies and deliver measurable impact for proof of concept.

Human Resource Automations

Automating Finance and Accounting (F&A) processes

An optimal entry-level category for legacy banks, Automation in HR is non-customer facing and leads to more efficient data management, streamlines rules-based HR process, and improves employee satisfaction

Many banks utilize RPA to automate manual tasks involved in report generation and can realize an immediate RoI. Automating the report generation process includes:

y Resume screening, candidate shortlisting, and offer letter administration

y Optimizing data extraction from both internal and external systems y Standardizing the process of data aggregation y Developing templates for reporting, review, and reconciliation of reports

y Onboarding new hires y Travel and expense management y Employee data management y Attendance tracking y Payroll management

y RPA can allow for a 50% capacity increase in certain process y Banks have seen accurancy rates of 96% with RPA y A $20 million investment can bring in $100 million revenue

Source: Deloite Analysis

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ACCELERATING IMPACT THROUGH COST EFFICIENCIES Intelligent Automation is a practical next step for most legacy banks. This automation deepens and widens as they progress from core functions to automating the entire customer journey.

For the Banking Industry this means taking a holistic view across all lines of business, starting with your most important resource, your people, and then building a strong foundation that accelerates the automation of your key processes.

Intelligent Automation for: y Onboarding new employees y Know Your Customer (KYC) process for monitoring customer risk and compliance y Business automation for loan and mortgage operations.

Processing Mining Accelerate your shift from a legacy bank to a neo bank through Process Mining, where we map, repair, and manage your internal processes for greater efficiencies.

With finance automation, your organization can reduce operational cost by between

40% and 50% Implementing Intelligent Banking Process Automation for real time fraud detection, credit card processing, and front office interactions.

Rapid Cloud Deployment For banks considering a move to the cloud, we provide Cloud migration 2-speed IT to support core functions and rapid development.

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DRIVING CUSTOMER EXPERIENCE Customers expect world-class digital-first experiences. Both traditional and digital born banks are losing ground on digital engagement, resulting in customer churn and a failure to attract new customers.

Deep Customer Understanding Implement AI and data analytics to proactively identify customers’ needs enabling targeted messaging and customized offerings.

Creating Omnichannel Customer Experience An intelligent open banking strategy provides customers’ easier access to all of their banking information, reduces customer hold times, and relives pressure on contact center. In addition, deep analytics with meaningful insights offers contextual customer engagement that helps drive growth.

As more customers use digital banking and nontraditional new market entrants emerge in the space, improving the customer experience and keeping pace with customer demands are critical components of a digital strategy.

Planning to Implement

Already Implemented

72%

Cloud-based collaboration platform

46%

Ability to capture user information online

62%

Customer/client analytics/real-time intelligence

41%

Data-driven personalization

58%

Data-driven personalization

40%

Automated cost estimates

57%

Marketing automation

38%

Conversational AI/chatbots

56%

Conversational AI/chatbots

36%

Customer/client analytics/real-time intelligence

52%

Ability to capture user information online

35%

Marketing automation

52%

Automated cost estimates

26%

Cloud-based collaboration

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AND BEYOND Standing out from competitors, whether legacy or neo banks, takes extending your digital offerings, and becoming more resilient and responsive to market shifts.

R Systems helps you with: Intelligent Decisioning Predictive Modelling for customer churn, credit and lending risk.

More Effective Compliance & Risk Management y Anomalies detection from repetitive task performed by robots. y Anticipate mis-compliance by AI & Predictive Modelling

The number of complaints about banking services in the UK alone exceeded 2 million in 2019.

Robust Digital Banking Platforms y Enable Open Banking, Digital or Platform Banking Data extraction from loan applications, forms, legal letters, etc.

Automated metadata extraction enables straight-through processing of documents Validating and cross-checking data using various validations.

Reduces TAT for information extraction, review & validation

Only 1 out of 26 unhappy customers complain and the rest churn.

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WHO DO WE WORK WITH R Systems is a trusted partner to some of the world’s largest and most respected banking companies.

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WHY R SYSTEMS? 5 Reasons to Work with Us

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PURPOSEFUL INNOVATION Your commercial objectives are our North Star. We constantly innovate using fresh ways of thinking to develop accelerators for your business, leveraging the power of automation and AI to generate actionable insight, simplify workflows and mission-critical processes. We support sustainable innovation, backed by big data, analytics, and cloud.

A TRUSTED PARTNER Our consultative business approach enables ongoing digital re-invention that meets your current needs and future ambitions.

We observe, listen, and think. Deeply.

Understanding the challenges and harnessing our global technological and analytical solutions, we empower our clients to overcome digital barriers, put their customers first, and achieve operational efficiency.

FUELING BUSINESS PERFORMANCE

GLOBAL R Systems has locations in every major banking market in the world, with 26 offices, 16 global delivery centers, and 3,000 employees across North America, the UK, Europe, and Asia Pacific.

Our specialized service offerings help our clients to achieve speed-to-market, driving business growth. We use the cloud’s full potential to gain maximum value and maintain a competitive edge. Our AI-powered, datadriven intelligent insights help our clients to optimize customer experience and develop lasting relationships.

PROACTIVE AND AGILE We recognize that there’s never just one way, and work collaboratively to find the optimal solutions. Helping organizations to understand the value of UX in product innovation, our digital accelerators enable customers to adapt to constant changes in technology, security issues, and user behavior.

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OUR SUCCESSES Modernizing Business Operations About Client Client is a leading global financial institution providing a full suite of products and services.

Business Need y Product engineering of core banking solutions

Solution

The Benefits

y Digitally transformed client’s financial software systems and core banking service

y Reduced operational costs and improved efficiency

y Created Swagger specs based on requirement

y Eliminated duplicate efforts in reaching out to same customer

y Implemented code reviews and demo of module with client

y Faster prospect to client conversion times

y Facilitated retail users on board through paperless manner

y Real-time visibility into eligibility and availability of services y Enabled users to perform their operations securely

y System upgrade from monolithic architecture to Microservices

Technology Stack

K,

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OUR SUCCESSES Optimizing Customer Experiences

Solution

The Benefits

About Client

y Digital Model Bank Solution- Fully integrated, highly Parameterization, workflow based digital solution for Customer On boarding, Servicing, Payments, Customer service and with value added features

y Personalized offerings with enhanced customer satisfaction

UK based client is a challenger bank wanted to enter the UK market with a true digital solution to cater to customer requirements.

y App based product configurator and preconfigured pre-configured product suite for quick Go to Market

Business Need

y Solution looks at loan requests and book new products online

y Introduce business banking by putting customers first

y Interface with CAPS system, Santander UK DATA Lake, AISP & PISP in UK, Siebel KYC, ICIS

y Host of Product Offerings-Savings and loans, Transactions banking, Overdrafts, current accounts with deposits and foreign exchange y Develop new way of engaging with customers. Allow SMEs to manage working capital better

y Fully compliant with UK regulatory environment, GDPR, PSD2,CASS,IBAN,FSCS CMA, FATCA, MiFID2/MiFR, BCBS 239, IFRS9

y Compliance with UK regulatory environment

Technology Stack

y Flexible, with parameterization and easy to use for business users y Bundling & Pricing, Flexibility through Product Configurator and Pricing Engine y Single unified view of Customer to understand profile and relationship with bank y Data Analytics services & automation of reporting

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OUR SUCCESSES Intelligent Process Automation About Client

Solution

The Benefits

The Client is multinational banking and financial service provider focused on consumer banking, asset management, securities brokerage, equity and debt fund-raising.

y Designed and developed an interactive bot that integrated with the client’s core system

y Solution reduced the resolution time of the cases from 48 hours to 2 hours

y Enabled the bot to use AI and natural language processing(NLP) to help client with complex tasks

y Automated process improved accuracy and efficiency manifold y Enabled the bot to resolve up to thousand queries in a single day

Business Need y To automate the process which refunds excess balance from their customer’s credit card or credit over draft account

Technology Stack

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OUR SUCCESSES Enabling Intelligent Decisioning About Client

Solution

The Benefits

Client provides technology solutions in the banking and payment industry.

y Developed analytical dashboards for customers to analyze location, transaction, ATM failures & profile, etc.

y Decision making and forecasting through dashboards

Business Need

y Enabled the platform to push alerts for any fraudulent activity

y Client wanted R Systems to develop new features for their transaction monitoring & analytics platform

Technology Stack

y Support and maintenance of existing apps y Analyze ATM channel usage, executive view, and placement

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WHAT WE BELIEVE R System believes digital re-invention is both a journey and a destination. It is an endless pursuit demanding relentless curiosity and the confidence to manage perpetual change.

We believe in innovation with purpose, which means being a technology partner laser-focused on your digital goals. We take action to ensure you stay resilient enough to handle any disruption and strong enough to propel further and faster.

We believe that observing, listening, asking the right questions, and thinking deeply about those answers will make our customers better prepared for whatever the future brings.

We don’t believe in the status quo, standing still, or taking the road most traveled.

We are technology expeditioners, driven to explore new digital paths, leaving no stone unturned in our quest to deliver business solutions that drive meaningful impact.

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TAKE THE NEXT STEP No matter where you are in your digital re-invention journey, R Systems can help you build digital capabilities faster.

Start with a free 4-week engagement Book Now  E: solutions@rsystems.com T: +1 916•939•9696

Corporate Office – USA 5000 Windplay Drive, Suite 5, El Dorado Hills CA 95762 Rsystems.com | Digital Product Engineering | Americas – Europe – APAC