Oracle Solutions for Financial Services Industry

Agenda - Oracle for Financial Services

Industry TrendsCustomersISV Partner SolutionsOracle Products-Oracle Application Server

Financial Services Industry Drivers

Consolidate InformationAddress Privacy & Security

Consolidate InformationAddress Privacy & Security

GlobalizationGlobalization

Corp. Control / Local ActionDeliver Efficiently

Corp. Control / Local ActionDeliver Efficiently

IndustryConsolidation

IndustryConsolidation

BanksBanks

Capital Capital MktsMktsFirmsFirms

InsuranceInsuranceCompaniesCompanies

Payments/Payments/ProcessingProcessing

ResearchResearch

Labor & Labor & MaterialsMaterials

ClearinghouseClearinghouse

Deliver Innovative ProductsProvide Flexible OfferingsDeliver Innovative ProductsProvide Flexible Offerings

NewCompetitors

NewCompetitors

RetailRetailCustomerCustomer

BusinessBusinessCustomerCustomer

DistributionDistributionPartnersPartners

RegulatorsRegulators

Drive Customer ProfitabilitySearch for Aggregated DataDrive Customer ProfitabilitySearch for Aggregated Data

MarginsMargins

Total IT Spend – over $250B per IDC

Oracle’s Financial Services Focus & Strategy: Core Segments

Slow to change and modernizeTypically laggard in technology adoptionStratified between Life, P&C, HealthFinancial health outlook is okayReal focus is on cost containmentParticularly those who demutualized

More advanced technologyTypically globally diversifiedAnalytically more complexHistorical tendency to build allFinancial health outlook is poor Better in “buy side” firms

Financial health is good particularly in retail banking. Multinationals hurt most. Transaction volumes/assets are upTrying to rationalize customers & channelsLots of product silos Many products are loss leaders

FinancialFinancialServicesServices

BankingBanking

InsuranceInsurance

Capital Capital MarketsMarkets

Segment Trends Sample Clients

Integrating Customer Data from Multiple ApplicationsMove from fragmented batch scenario to an online integrated Scenario

Financial Financial ServicesServices

Data Data Integration & Integration & ConsolidationConsolidation

Enterprise Enterprise Performance & Performance &

ComplianceCompliance

Customer Customer Insight & Insight &

ManagementManagement

BankingIntegrating Customer Data from Multiple ApplicationsDeliver new product to market fasterMove to intra-day/ Real time vs batch

CapitalMarkets

Insurance

Move from product to customer focus. Providing true customer repository Customer real time access to information

Move from product to customer focus. Channel integration across customers, agents, brokersCustomer real time access to information

BASEL II Anti-Money LaunderingGlobal Imaging andArchiving/C21Sarbanes-OxleyGramm-Leach Bliley

BASEL II Anti-Money LaunderingSarbanes-OxleyGramm-Leach BlileyT+1

HIPAA Sarbanes-OxleyGramm-Leach Bliley

Straight Through Processing(STP). The information must flow between front-middle-back office systems and externally.

Single view of the customer across systems allows for individualized marketing and sales

Initiatives

Oracle’s Financial Services Focus & Strategy: Initiatives

Financial Services Industry Transformation

• Fragmented and Discrete Systems

• Weak Information Comprised of Partial Data

• Product Centric• Manual, Paper-Based Service

Model• Inefficient Operational Silos

• Fragmented and Discrete Systems

• Weak Information Comprised of Partial Data

• Product Centric• Manual, Paper-Based Service

Model• Inefficient Operational Silos

• Single, Shared Global Repositories

• Improved Analysis Based on Integrated Data

• Customer Centric• Streamlined and Intelligent

Customer Interaction• Automated, Integrated

Processing

• Single, Shared Global Repositories

• Improved Analysis Based on Integrated Data

• Customer Centric• Streamlined and Intelligent

Customer Interaction• Automated, Integrated

Processing

Today Today TomorrowTomorrow

OracleAS Financial Services Customers

Customer Success Story: Banking

OracleAS powers BarclaysTop 15 Global Banks, Retail Bank Standard

2.3 Million Branch, Card, e-Customers Served with Oracle9iASHigh Transaction Rates, Messaging, Servlets, EJBs

Heterogeneous Environment - Vignette, DB/2, MQ-SeriesOther Projects Starting - Integration, Wireless

Competitive Win vs IBM

Customer Success Story: Banking

OracleAS powers CitibankOne of the Top Financial Service Company in the World

9iAS Runs Wireless and Investment ApplicationsOracle9iAS J2EE, Wireless and Forms

J2EE Applications Aggregates Financial Data for Reporting

Customer Success Story: Capital Markets

OracleAS powers UBS World’s leading provider of Wealth Management Services

Analyst and Broker Dashboard Portal-25,000 usersThe portal includes over 2000 pages and 600 portlets

Heterogeneous Environment - 100 applications SSO/Oracle Directory infrastructure

Customer Success Story: Capital Markets

OracleAS powers Fidelity Investments Largest Mutual Fund Company in the US

OFSA and Discoverer based multi-dimensional profitability system Supports the allocation of costs and revenues along multiple dimensions

Customer Profitability up 18%Handling 10 million customers and 100M transactions

Customer Success Story: Insurance

OracleAS powers JLT GroupThe Jardine Lloyd Thompson group

is the world’s fifth largest insurance broker.Business Processes automated by OracleAS ProcessConnect

will manage the Life cycle from Placement to Sign Down.Insurance Reps and JLT employees can track status and

create business exception management rules. Competitive Win vs BEA and IBM

Oracle’s Products

Oracle’s ISV Partners for Financial Services

Solution Map – Retail Banking

Risk Mangement

Electronic Bill Pay

Core Banking Check21

*Pega Systems, *Alogent, *FiServ, *Unisys, *Netapp,

*NCR,*Xenos,*Synoran

FiServ, Temenos, I-Flex, Argo Data, *Financial Fusion,

SuperSolutions, Pentasoft

Document Management

Documentum, FileNetCheckFree,

*Bottomline Tech, Pentasoft

Fair Isaac, *Algorithmics, *Mantas, Pentasoft

* Recruiting to use OracleAS

Solution Map – Capital Markets

Identify new drug targetsIntegrate volumes of datePerform complex analysisDeliver drug targets to trials

Complex processesRegulatory pressuresManage quality Minimize recall risks

FiServ, *Summit Systems,

*IQ Systems, *Wall Street,

*Financial Fusion, *ADP

*Sungard Trading, Integral

Fair Isaac

Algorithmics

*Mantas, *Pentasoft

TradingTradingRisk Risk

ManagementManagement Document Document ManagementManagement

Clinical TrialsMost complex segmentHighly regulatedIntense IT requirements

Complex customer networksRequire focused campaignTrack product useSecure MD loyalty

X.Eye, netDecide,*Sanchez

*Solcorp, *Advent, *Fincentric,

FTI

DocumentumFileNet

Wealth Wealth ManagementManagement

* Recruiting to use OracleAS

Solution Map – Insurance

Identify new drug targetsIntegrate volumes of datePerform complex analysisDeliver drug targets to trials

Complex processesRegulatory pressuresManage quality Minimize recall risks

FiServ, *Perot Systems

Sungard, *Amerillium Systems DocumentumFileNet

Document Document ManagementManagement Electronic Bill Electronic Bill

PayPay

Clinical TrialsMost complex segmentHighly regulatedIntense IT requirements

Complex customer networksRequire focused campaignTrack product useSecure MD loyalty

CGI, VRC, *Solcorp, *Sungard SherwoodeBAO, *Fadata, *Computer Professionals*TIA Technologies

Checkfree, *Bottomline Tech

Claims Claims Processing Processing and Admin.and Admin.

Enterprise Enterprise Insurance Insurance SolutionSolution

* Recruiting to use OracleAS

J2EE, &Web Services

Portals

WirelessBusinessIntelligence

e-Business Integration

Management &Security

Performance &Caching

Problem: Monolithic ApplicationsInflexible, Inefficient, Hard to Maintain

Print Invoices

Generate POs

Credit Verification 1

User Authentication 1

Account Validation 1

Create Customers

Credit Verification 2

User Authentication 2

Account Validation 2

Hard to adapt to changing business requirements

Duplication of functionality means wasted resources

Small fixes require large investments of time and labor

Print Invoices

Generate POs

Authentication Service

Account Validation

Service

Create Customers

Credit Verification

Service

Build applications from modular business services

Standardized interfaces for reuse & interoperability

Self-describing for easy discovery and binding

Reusable ServicesLower Development Costs, Improve Flexibility

Oracle Application Server 10g

Service Development FrameworkRapid Development of Business Services

Productivity with Choice– Visual and declarative environment– Complete development framework– “My JDeveloper” personalized interface

Full Web services lifecycle support– Model, develop, deploy, debug, test, tune– XML metadata for simplified maintenance

Complete standards support– SOAP, WSDL, UDDI, WS-I– Interoperability with .NET

Collaborative development– Integration with SCM tools Oracle JDeveloper 10g with ADF

Customer Success Story: OC4J

OracleAS powers Manulife Limited#1 Insurance Provider in Hong Kong and Canada

Over HKD$29.9 Billion Total Asset under Administration Web-based Benefit Application Developed with J2EE

Next Phase is to Integrate with Oracle Forms

Leverage Existing InvestmentsWrap IT Assets as Web Services

DatabaseStoredProcedure

SOAP

SOAP

SOAP SOAP

ExternalSupplier

OracleASIntegration

PackagedApplication

LegacyApplication

Any Data Source

Exchanges

Business Process Management

Transformation

3rd Party Apps

E-BusinessSuite

Custom Apps

ApplicationAdapters

MessagingSystems

Intelligent Routing

Integrate Your Business

Logging Validation Security MonitoringTransactionManagement

– Improve Efficiency using integrated business processes – Integrate applications within your enterprise & trading partners – Single solution for EAI, B2B, and Web Services

Customer Success Story: Integration Server

OracleAS powers Tower FinancialIn Operation Since 1869 with NZ$21.2B in Asset

Provides Life Insurance, Fund and Trustee ManagementUse Oracle9iAS Integration (EAI) to Integration 18 Products"We selected Oracle9i Application Server over BEA, IBM and Microsoft as the corporate

integration platform to integrate 18 product administration systems across the entire Tower Group. With the integration features of Oracle9i Application Server, we completed phase one

of the project integrating four such systems in only 10 weeks." – Greg Reimann, Group

Enterprise Architect, Tower Limited

Publish Services as PortletsAllow Users to Interact with Web Services

ApplicationDeveloper

Import

Public UDDIRegistry

Expense reporting

…Stock quotesNews feedsTravel reservationsProcurement

Lead trackingCampaign planning

Sales forecasting

Portlet Catalog

Publish Personalize

Personalize

Personalize

Customer Success Story: Portal

OracleAS powers AEGONUsing Oracle9iAS Portal, AEGON Spain created a self-

service application, Mi Cartera, for Customers.By using Oracle CRM and Portal, a 10% reduction in

customer churn is expected."Mi Cartera is very popular with clients because it gives them 24-hour access to their policy details and ensures they receive a personalized service from us. Oracle's self-service content

publishing tools allow us to create and post information very easily on the portal, and our customers can pull their information at their convenience. Oracle Portal provides a very cost-effective framework for implementing our CRM strategy." – Enrique Mendizabal, E-

Business Director, AEGON Seguros Espana

Universal Access to the EnterpriseExtend your business, mobile enable your workforce

Direct Business Impact– Increase Employee Productivity– Reduce Operation Costs– Improve Customer Service

Lower Your Costs– Increased productivity reduces

labor costs– Reuse of existing devices reduces hardware

costs – Single, standard development paradigm

reduces development costsIncrease Your Flexibility

– Multi-channel access to applications– Wireless connectivity options: online or

offline (manual or adaptive switching)– Integration with mobile network services

Customer Success Story: Wireless

OracleAS Wirless Powers Citibank SingaporePart of CitiGroup, preeminent global financial services companyBuilding mobile banking services in Singapore to off-load routine services to low cost channels and enable customer service reps

to perform value added activities.Using Oracle9iAS Wireless to support mobile banking

‘"What we found most compelling about Oracle 9iAS Wireless was the openness and totality of the platform, its telco and device agnosticism, and its ability to integrate with Citibank's various

computing platforms." --D.K. Sharma, Regional Director, E-Commerce Technology, Asia Pacific

Oracle Reports Developer– Sophisticated, high quality web reports – HTML, HTML/CSS, PDF, XML, XLS– Unlimited data formatting– High quality report visualization– Integration with Database

Build and Deploy Web Reports

Oracle Reports Services– Application server based reporting– Data and application security on the web– Pluggable Datasources, Security– Integration with Oracle Portal– Personalization via XML

Easy Self-Service Information Access with Oracle Discoverer

Easy to Use– One Click– Wizard Driven– Drag and Drop Layout

Increase Productivity– Drill Everywhere– Integration with Reports,

Portal– DB Integration

Fast, Accurate Information

Customer Success Story: Business Intelligence

OracleAS powers Banco AgricolaLargest Bank in Central America

Over HKD$29.9 Billion Total Asset under Administration Web-based Benefit Application Developed with J2EE

Next Phase is to Integrate with Oracle Forms

Speed up your Web sites and Applications

Any Data Source

Servlet / JSP

Perl

PL/SQL

Portal

Wireless &Mobile

Browser

– Serves Dynamic and Static Content Faster– Supports more users with fewer web servers / less hardware– Higher reliability with surge protection and loadbalancing

Apa

che

Web

Cac

he

Any Application / Web Server

Internet / intranetUsers

High AvailabilityClustered App and Data Servers with no single point of failureand transparent application failover

Load Balancers (or Web Caches)

Wireless &Mobile

Browser

Internet / intranetUsers

Oracle RACApache Web Serversw/ Load Balancing

• Web Cache receives request.

• Detects down Apache node.

• Re-routes request.

• Apache receives request.

• Detects down Application node.

• Re-routes request.

• App Instance receives request. (Has shared session state information.)

• JDBC (w/ TAF) detects down 9i instance and re-routes request.

• Oracle9i instances share persistent state.

Cluster 1J2EE Application ‘A’Session State Shared

Centralized Identity ManagementEnsure Security While Lowering Cost

Secure centralized access across entire systemCustomized privileges

– By group, roles, users– Manage, update, view

Support for 3rd-party solutions for secure access to legacy applications

Single Sign-On Reduce Management Costs; Improve Productivity

Reduce the cost of resetting passwords ($300 per user / per year, IDC)Users login once to access applications & content

Enterprise Grid Computing

10g

Virtualize and Pool

Resources

AutomateUser & Resource Provisioning

Manage Application

Service Levels

Ensure High Quality of Service

Virtualized Middleware ServicesUse Resources Effectively on Low-Cost HW

HTTP Server

Web CacheJ2EE Server

Group resources and services by application

Oracle 10g

Implement One from Many; Manage Many as One

Virtualize resources on low-cost hardware

Allocate resources dynamically

Automate provisioning

Centralize monitoring and management

Oracle Application Server 10g Feature Summary

HTTP HTTP (Apache + mods)J2EE / Web ServicesJ2EE / Web ServicesTopLinkTopLinkXML (XDK)XML (XDK)Management (OEM)Management (OEM)JDeveloper JDeveloper (5 (5 LicLic.).)Portal Portal Content Mgmt. SDK (Content Mgmt. SDK (iFSiFS))Forms Forms Directory & Cert. AuthorityDirectory & Cert. AuthorityIntegration & Workflow Integration & Workflow Caching Caching Business Intelligence Business Intelligence Wireless Wireless Personalization Personalization

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EnterpriseEnterpriseStandardStandardJavaJavaServicesServices

Best Application Server for the Oracle Database

Single Oracle platform for:– Development --> Deployment --> Management

Development:– Strongly integrated toolset (iDS)– Single, Unified Development Platform for Java, XML, and SQL

Deployment:– Availability – Failover, RAC, standby– Performance – Fastest J2EE implementation– Security – 1 Unified security model for middle tier and back-end – Scalability – Clustering, transactions/messaging optimized– Globalization – 1 globalization model for middle tier and back-end

Management:– 1 management and monitoring tool for the middle tier and back-end– Complete end-to-end transaction tracing