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Swedbank's journey to becoming the bank of the future

Capgemini helps Swedbank implement Pegasystems technology to provide their client with Digital Customer Experience

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Swedbank's journey to becoming the bank of the future

  1. 1. SWEDBANK’S JOURNEY TO BECOMING THE BANK OF THE FUTURE Fredrik Hovstadius Swedbank Head of Lending Transformation Frank Almenning Swedbank Product Owner Credit Origination Claes Timner Capgemini Engagement Manager Stephan Kolarik Capgemini Delivery Executive
  2. 2. Presenters 2 Fredrik Hovstadius Head of Lending Transformation Swedbank E-mail: Stephan Kolarik Delivery Executive Capgemini E-mail: Frank Almenning Product Owner Swedbank E-mail: Claes Timner Engagement Director Capgemini E-mail:
  3. 3. Agenda 3 Introduction1 The Swedbank Lending Transformation Program2 Transformation roadmap3 Project set-up4 Delivery model5 Analysis and observations after go-live6 Q&A7
  4. 4. For Us at Swedbank, Sweden, Estonia, Latvia and Lithuania Are Our Home Markets 4 16.2 million inhabitants 7.3 million private customers 651,000 corporate customers 382 branches 13,774 employees
  5. 5. Our Private Customers 5 Almost half of the population in our home markets are Swedbank customers. Here are a few of the things we help them with:  Loans & mortgages  Savings & investments  Payment services  Pension & insurance  Private banking
  6. 6. Capgemini is Swedbank’s Partner for the Digital Transformation of the Lending Business 6 The business value of technology comes from and through people Together with Swedbank, we create and deliver business and technology solutions that fit Swedbank’s needs and drive the results Swedbank wants Digital Customer Experience User Experience Collaborative Business Experience Testing Excellence Transformation Management
  7. 7. The strategic Business Objectives Behind Swedbank’s Future Lending Process 7 Strategic Objectives Customer Value Cost Efficiency IT Simplification Other Long-term Objectives  Improve customer experience across products and services  Same process and platform independent of channel  Create a bank-wide digital backbone supporting our future needs  Achieve Process Excellence Main Objectives  Improve customer experience through self-service and consistent quality  Increase speed and agility in fulfilling customer requests  Create standard, Group-wide common banking platforms  Enable faster time-to-market for new products and services  Optimize lifecycle stages of IT landscape  Automate manual processes and improve end-to-end processes while reducing processing cost
  8. 8. The FLP Digitalization Roadmap 2020 Comprises Three Phases 8 Phase Phase 1 Phase 2 Phase 3 Future Lending Platform (FLP) Program ObjectivesHigh-level Content Group-enable and digitalize/ automate origination processes Group-enable and digitalize/ automate servicing processes Realize Group-level synergies and efficiency  Loan application process until final disbursement  Implement digitalized / STP private consumer & mortgage loans  Implement digitalized / STP corporate micro loan  Improve corporate, SSE, SME, Midcorp, LC& I, and finance processes  Digitalize high-volume servicing events for private and corporate loans  Establish a Group-level collateral system  Establish a Group-level account ledger  Ensure flexibility in outsourced collections Move Group Common IT-systems …  To new Group-level platform (at end-of-life)  Streamline business and IT processes between Baltics and Sweden (non-customer facing)  To decrease business and IT complexity Embrace digital as a driver for cost efficiency and service excellence 2015 2016 2017 2018 2019 2020 2021 … Phase 1 Phase 2 Phase 3
  9. 9. Phase 1 Quickly Delivers Results and Establishes the Foundation of Digital Lending 9 2015 2016 2017 2018 2019 2020 2021 … Release 1 Release 2 Release 3 Release 4 Release 5 Release 6 Release 7 Unsecured Consumer Loans Sales: Increase Efficency: 100% Private Mortgages Sales: Keep market share Efficency: 50% Corporate Sales: Efficency: Cost: Corporate Sales: Efficency: Cost: SSE/SME Corporate Finance Company Sales: Increase Efficency: 50% Large Corporate Decrease operational risk and increase quality 240 000 / year 260 000 / year
  10. 10. FLP “One Team”: a Truly Collaborative Business Experience™ Steering Committee Ref. group SIT BAT Pega Config Pega Integrations Mainframe Internet Bank Apps Digital LendingIntegrationsCOS Development Business Architecture Project Management IT Project Management Swedbank Business Capgemini Swedbank IT Architecture Middleware Business Roll-out TestTest 10
  11. 11. Transition Post Go-Live Support Release scope finalization In each release, parts of the functional scope are addressed in specific 4-week cycles with iterative elaboration, construction and testing Go-Live Pega SmartBPM™ Helps Us to Combine Best of Both – Traditional and Agile 11  We replaced the SmartBPM Inception phase with release pre-study to align with Swedbank’s methodology  Objectives: – Define the scope for next release and finalize architectural approaches – Create estimates for all work included in the release – Define a project plan for the next release  In the Elaboration phase, requirements and use cases are made design-ready  Main tasks: – Conduct DCO sessions with Pega technical & functional architects, Business & IT SMEs – Use case documentation – Handover of agreed requirements to development and test – Final sign-off of use cases with business  Iteratively build and unit test the application in construction  Show & tell sessions together with Business/IT SMEs to obtain early feedback  Integration design & implementation  Bi-weekly deployment of built functionality to ST and SIT testing  Final verification takes place in the Transition phase, including: – Final Integration testing – Regression testing – Performance testing – Business acceptance test, BAT  Common release testing follows BAT to ensure alignment with other deliveries in the same bank-wide release Current delivery cycle is 6-8 months with the aim to reduce it to 3-4 months
  12. 12. Main Challenges Faced – and How We Have Mastered Them 12 Challenge Mainframe Legacy Other Initiatives People Aspect MitigationsDescription of Challenge  Implicitly defined business logic  Point-to-point integrations  Different delivery teams  Motivation of end-users to adapt to the new system  Bank-wide acceptance of requirements and solution  Sync with other initiatives ongoing at Swedbank  Consolidation of end-to-end requirements  Alignment of time plans  Mainframe systems turned into service providers  Business logic extracted and managed on the Pega process layer  Legacy functionality isolated to complement the new platform  Representatives from different departments included throughout the development cycle  Program run as a bank initiative, not as a standard buyer/seller set-up  Continuous dependency mapping  Sync around capabilities and requirements already ensured during pre-study
  13. 13. Quick Facts on the Lending Transformation Program 13 The Project, Release 1 delivery 82,000 hours 10 months 156 BR 200 use cases 1,000 test cases 47 integrations In Production 6 sec 12.3 min 37.1 years 62 % male 75% stp $ 12,000
  14. 14. Loan Application Swedbank 14
  15. 15. Our Team has Delivered – Release 1 in Time and Budget! 15
  16. 16. Q&A 16 ?