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Analytic Applications in Financial Services
Jennifer Toomey
Senior Director
The following is intended to outline our general
product direction. It is intended for information
purposes only, and may not be incorporated into any
contract. It is not a commitment to deliver any
material, code, or functionality, and should not be
relied upon in making purchasing decisions.
The development, release, and timing of any
features or functionality described for Oracle’s
products remains at the sole discretion of Oracle.
Agenda
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Oracle in Financial Services
Industry Challenges in the Spotlight
Roadmap to Management Excellence
Q&A
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Oracle in Financial Services
Financial Services Customers Using
Oracle Analytic Applications
Banking
Capital Markets
Insurance
Investment in Market Leading Analytic
Applications for Financial Services
Treasury
Services
Multidimensional Profitability,
Funds Transfer Pricing,
Asset Liability Management,
Balance Sheet Planning
1998
Transactional Analytics,
Anti-Money Laundering,
Broker/Dealer Compliance
Basel II, Economic Capital,
Credit Risk, Operational Risk
2005
Activity-Based
Management, Funds
Transfer Pricing, Financial
Services Data Warehouse
2006
Customer Analytics,
Business Intelligence
2007
Financial Consolidations,
Budgeting & Planning
Oracle Analytic Applications for
Financial Services
Governance
Risk & Compliance
Enterprise Risk
Management
Enterprise
Performance
Management
Customer
Insight
Governance &
Compliance
Credit Risk
Performance
Management
Marketing
Governance
Retail Credit Risk
Multidimensional Profitability
Portfolio Analytics
Compliance Risk
Corporate Credit Risk
Customer Profitability
Marketing Analytics
Regulatory Compliance
Treasury Risk
Funds Transfer Pricing
Service Analytics
Anti-Money Laundering
Market Risk
Finance
Channel
Trading Compliance
Asset Liability Management
Balance Sheet Planning
Broker Compliance
Regulatory Capital
Budgeting & Forecasting
Channel Usage
Channel Performance
Sales Analytics
Fraud Detection
Basel II : Credit Risk
Consolidation
Operational Risk
Basel II : Market Risk
Accounting Hub
Operational Risk
Basel II : Operational Risk
Economic Capital
EC : Credit Risk
EC : Market Risk
EC : Operational Risk
Insurance
Specialized Analytics
Credit Cards
Mortgages
Oracle Positioned in Leaders Quadrants
Magic Quadrant for
Business Intelligence
Platforms, 2008
Magic Quadrant for
CPM Suites, 2007
Magic Quadrant for
Data Warehouse Database
Management Systems, 2007
The Magic Quadrant is copyrighted 2008 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis
of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology
users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express
or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
These Magic Quadrant graphics were published by Gartner, Inc. as part of larger research notes and should be evaluated in the context of the entire reports. The Gartner reports are available upon request from Oracle.
Sources:
Gartner, Inc., “Magic Quadrant for Business Intelligence Platforms, 2008” by James Richardson, Kurt Schlegel, Bill Hostmann, Neil McMurchy, 1 February 2008
Gartner, Inc., “Magic Quadrant for CPM Suites, 2006 “ by Nigel Rayner, Neil Chandler, John E. Van Decker, 19 December 2007
Gartner, Inc., “Magic Quadrant for Data Warehouse Database Management Systems, 2007” by Donald Feinberg and Mark A. Beyer, 10 October 2007
Reveleus in Risk & Compliance
Reveleus Basel II Solution emerges as the market leader
January ‘06
June ‘06
December ‘05
August ‘05
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Reveleus was named as a leader in Gartner’s Magic Quadrant
Tower Group named Reveleus the “crown jewel” of i-flex and
ranked Reveleus Basel II highest
Celent group considers Reveleus as the North American Market
Leader in Basel space
Oracle’s Financial Services Strategy
Oracle’s Strategy and Vision is based on the view that the
only way to bring a wide range of domain specific software
capabilities to market is through:
1 • Developing and acquiring the most complete set of “best of
breed” functional capabilities available from any one single
vendor
2 • Pre-integrating these “best of breed” solutions through process
based integration to reduce complexity and cost for the customer
3 • Standardizing and converging over time the “integrated best of
breed” solutions onto a common, open technology architecture
4• Building an ecosystem of system integrators to complement our
own capabilities for platform lead implementations
© 2008 Oracle Corporation – Proprietary and Confidential
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Industry Challenges in
the Spotlight
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“Confessions of a Risk Manager”
The Economist, August 7, 2008
“In banks there is always a bias towards one side of the argument. The
business line was more focused on getting a transaction approved than
on identifying the risks in what it was proposing. The risk thinking
therefore leaned towards giving the benefit of the doubt to the risktakers.”
Analytical Challenges
Compliance Challenges
Performance Challenges
 Information not timely enough to evaluate
organizational performance
 Multiple Versions of the truth
 Inconsistent, measures, targets and
accountability
Performance
 Managing returns require risk adjusted
insight
Compliance
Risk
Cust. Insight Challenges
 No single source of truth for customer data
 Incomplete view of customer
 Inability to cross-sell intelligently to
customer base
 No way of tracking or refining campaigns
 Overspending on redundant, manual
processes
 Lack of vision around performance
management connected to compliance
 One-off regulatory compliance projects
 The burden of compliance will only continue to
increase
Risk Management Challenges
Customer
Insight
 No framework for consistent management
and mitigation of risks across enterprise
 Interrelated risks treated in silos of
information
 Weak business, physical and IT standards
to support enterprise risk management
 Inaccurate and delayed monitoring of key
performance and risk indicators
Problems with Getting Actionable Intelligence
Definitions mismatched across reports
Getting the wrong, too detailed, or insufficiently detailed report
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“Get me the data that I need”
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Data sits in multiple places
Data is difficult to get at for the business user
Data is not formatted or presented in a way that’s relevant to me
Getting data or facts, not information
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“Produce the data that I need to help me run my business better”
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Data from Operational systems only tell part of the story
Financial services are about analyzing and risk
Getting information that does not make any sense
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“I don’t trust the data I see”
”My data does not match that of another departments”
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Definitions are not matched, clean or normalized
Data is not reconciled between systems
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Roadmap to
Management Excellence
The Next Wave: Extend Operational
Excellence to Management Excellence
Competitive
Advantage
MANAGEMENT EXCELLENCE
OPERATIONAL EXCELLENCE
Time
Oracle EPM System
Industry’s First Integrated EPM System
EPM Workspace
Performance Management
Applications
BI Applications
Business Intelligence Foundation
Fusion Middleware
OLTP & ODS
Systems
Data Warehouse
Data Mart
OLAP
SAP, Oracle, Siebel,
PeopleSoft, JDE, Custom
Excel
XML
Business
Process
Market Leading Applications
EPM Workspace
Governance
Risk & Compliance
Enterprise Risk
Management
Enterprise
Performance
Management
Customer
BI Applications
Insight
Business Intelligence Foundation
Fusion Middleware
OLTP & ODS
Systems
Data Warehouse
Data Mart
OLAP
SAP, Oracle, Siebel,
PeopleSoft, Custom
Excel
XML
Business
Process
Oracle’s Analytic Applications Vision in
Financial Services
1. Merge Best-of-Breed capability across products
Treasury
Services
2. Create a single integrated platform
Financial Services Business Intelligence
Financial Services Analytics Framework
Financial Services Data Model
21
Integrated Analytic Applications for Financial Services
Analytic Applications
Governance
Risk &
Compliance
Enterprise Risk
Management
Financial Services Business Intelligence
Enterprise
Performance
Management
Customer
Insight
Embedded
Alerts
Reports
Financial Services Analytics Framework
Stochastic
Modeling
Business
Rules
Purpose Built
Engines
Common
Tools
Financial Services Data Model
Common
Objects
Common
Dimensions
Pre-Integrated
and Extensible
High Volume
Integrated Solution Structure
Unified Analytical Metadata
Dashboards
Interconnected, Integrated Analytic
Capabilities
Business Intelligence
Common Assumptions, Calculation Engines
Unified Analytical Metadata
Analytic Applications
Governance
Risk &
Compliance
Enterprise Risk
Management
Credit Risk
EC/BASEL
Credit Risk
Retail/Corp
Profitability
&
Allocations
Budgeting
&
Planning
Enterprise
Performance
Management
Customer
Insight
Market Risk
Operational
Risk &
EC
Compliance
& Fraud
Risk
Governance
Funds
Transfer
Pricing
Asset
Liability Mgmt
CRM
Analytics
Channel
Behavior
Risk
Performance
Customer Insight
Interconnected, Integrated Analytic
Capabilities
Credit Risk
EC/BASEL
Credit Risk
Retail/Corp
Market Risk
Operational
Risk &
EC
Compliance
& Fraud
Risk
Governance
Regulations/Policies
Processes
Capital Adequacy
Multi-Channel Fraud
SOX & Controls
RAPM
Analytic
Applications
Second Order
Analytic
Capabilities
Analytic
Applications
Common Assumptions, Calculation Engines
Unified Analytical Metadata
Business Intelligence
Profitability
&
Allocations
Cash Flow & Pillar 2
Credit & Behavior Scores
Transaction Drivers & Costing
Customer Profitability
Treasury NII, Variance & Scenarios
NII
Future Balance Sheet
Variance
Budgeting
&
Planning
Funds
Transfer
Pricing
Asset
Liability Mgmt
Segmentation
CRM
Analytics
Channel
Behavior
Risk
Performance
Customer Insight
Oracle Team & Development Method
• Single Division Focused on Analytic Applications for
Financial Services
• Significant New Investment in Development
Resources
• Framework Based Approach to Development
• Common Objects Leveraged Across Solutions
• Allows greater speed to market
• E.g. Common retail pooling engine stratifies instrument
groups for use in Basel II, ALM, FTP, Economic Capital
• E.g. Prepayment assumptions defined in single place and
leveraged across the suite
• Business Logic Embedded in Rules Interface
• Users able to modify calculations to fit their business
Platform Value Propositions
Comprehensive
Covers absolutely all areas of interest to FSIs
Customer & Employee Centric
360 degree customer information with full employee
connections
Best of Breed for FSI
Each area is deep and rich, market evidence of cutting
edge capability
Connected & Integrated across
Functions
e.g. Profitability and Risk are seamlessly available
together for RAPM
Consistent across the Enterprise
Dimensional and other definitions are commonly shared
Pervasive and Actionable across
the Business
Easily slides into the business processes thru standard
interfaces
Immediate and Timely
Manages near real-time data updates
Closed Loop
Includes user actions and results in the analysis
Industrial Strength
Built on Fusion Architecture