BANKING SOFTWARE - Finnova AG
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BANKING SOFTWARE
For over three years, we have been accompanied by the motto 'The Sounds of Smarter Banking' in the product and services brochure – Finnova Day provided us with the pictures. This year, we had to cancel Finnova Day and have a creative rethink. Our current source of pictures is musician and in- teraction designer Jonas Friedemann Heuer. With his modular synthesizer, he set the suites of our Finnova Banking Software to music. Heuer's 'gener- ative art' is a balancing act between creativity and analysis. He docu- mented the creative process for us with highly attractive photos. And for the first time, with this publication, you can listen to them: use the QR codes on the next page for music, videos and background information on Heuer's art. In the chapter , we look to the future with digital experience, analytics and open banking. As usual, you will find an overview of our products at the end. We hope you find what you read and hear interesting.
2 Finnova Banking Software
Value proposition for our customers
Finnova Banking Software
Table of contents 3
Finnova at a glance 6
Solutions for Smarter Banking 9
Value proposition for our customers 10
Success for customer segments 12
Banking – The future is now I–XX
Finnova Banking Software at a glance 18
Further development of the Finnova Banking Software 27
Finnova Client Engagement Suite 32
Finnova Core Suite 48
Finnova Management Suite 70
Finnova Open Platform 78
Finnova Services 88
Licence and price Model 98
Overview of all products100
"Basic musical elements have been extracted from the
Finnova brand sound and rearranged: key, time signature,
musical phrases, melodies and tones. Finnova's company
melody is picked up by the machine, but constantly var-
ied and thus newly interpreted time and again. The varia-
tion is influenced by the logic of the Finnova core. This in-
fluences the sound of Finnova as a company and its
employees on the one hand, and the logic of the Finnova
software and the machine on the other hand, bringing
about a new musical result of the Finnova brand."
J. F. Heuer
Designer & musician
The Finnova brand,
musically interpreted
6 Finnova Banking Software
Finnova at a glance
Finnova Banking Software
Finnova at a glance 7
Finnova at a glance To the advantage of our customers Our shareholder base
With the Finnova Banking Software and the accompanying We are a 100% self-financed limited company under Swiss
Since 1974, Finnova has stood for innovative banking services – from analysis and consulting to training, through to law. Various stakeholder groups are represented in our share-
operation and support – our community can reap the benefits holder base, in which all owners have a long-term commitment
solutions – in development, in operation and in advisory. of a high-performance and reliable banking platform. With its and share the company vision.
Together with our customers and partners, we focus on the breadth and depth of functionality, it can be used for various The majority shareholder of Finnova (registered as finnova
business models, be it front-to-back, end-to-end or bank-spe- AG Bankware) is the German IT consulting and system integra-
digital transformation and open banking, thus supporting cific. The attractive total cost of ownership (TCO) is an impor- tion company msg systems ag. As part of the msg group, we
our around 100 customers from the financial services sector tant criterion. Finnova banks have had a leading position on have access to this globally designed network that includes
the market in this regard for years. over 8,000 experts and offers strategic consulting as well as
in Switzerland and in the Principality of Liechtenstein in As a result of the extension with the Open Platform for value-adding IT solutions, primarily for sectors with vertical
being sustainably profitable and competitive. operation and the integration of a comprehensive ecosystem, value-added chains, such as insurance companies, banks and
our customers are able to differentiate themselves even more the public sector. In addition, several customer banks, our stra-
on the market in times of digitalisation. tegic partner Swisscom and members of our Executive Board
Finnova also offers complete flexibility in choosing the also have shares. This balanced structure, which is also re-
most appropriate operating model for the bank. This applies flected in the Board of Directors, incorporates the interests
for individual or multi-tenant installation and BPO services in of the most important stakeholder groups. All of this enables
equal measure. Banks benefit from a functioning market when strategic corporate management designed to be long-term
it comes to selecting an operating partner. and sustainable and makes us a reliable partner.
The comprehensive functionality, stability and performance Optimisation of time to market From Finnova's own Application Management, we now Hans Zehtmaier (founder and CEO, and from 1 January
you would expect of modern banking software are just three The ongoing optimisation of processes and the cooperation also provide our products and solutions as an SaaS solution. 2020 onwards, chairman of the supervisory board of msg sys-
of many strong arguments that characterise the Finnova Bank- with our Community, the use of modern and consistent archi- The offer extends from individual products to the full range tems ag) has been chairman of Finnova's Board of Directors
ing Software and that our customers have appreciated for tectural concepts, increased efficiency and the deployment of of functions of the Finnova Banking Software. since 2015.
years. Regardless of whether during peak loads like the year- dedicated and experienced development teams improve the
end processing or during the high-performance processing time to market and increase the effectiveness of our devel- Our Executive Board
of scaled-up and consistent banking processes, the Finnova opment. With the right solutions at the right time, we enable Finnova's Executive Board comprises the CEO and the heads
Banking Software forms the basis of a modern and high-per- our customers to serve and work their markets sensibly and of the six business units: Services, Development, Product
formance bank. to meet the needs of their bank clients. The openness of the Management, Technology Competence Center, Business De-
In light of increasingly heterogenous needs, the growing Finnova Banking Software with its Open Platform is becoming velopment & Sales and Corporate Development & Finance.
speed of change on the market as well as blurred boundaries increasingly important for this. As a result, banks can benefit
between sectors and new competitors, we position ourselves from innovations in the area of digital front-office applications
as a reliable and innovative solution provider with the develop- and position themselves actively in competition with the ex-
ment of new solutions and operating models. As a result of a isting and new market participants.
modern architecture, consistent opening up and substantial in-
vestments in digitalisation at the client interface, we offer Fin- Development of new business areas
nova customers comprehensive flexibility and differentiation In addition to strengthening the client base in private bank-
on the market. Thanks to the Open Platform and the orches- ing, the number of satisfied clients in retail banking and the
tration capability of a digital ecosystem, bank clients' needs expansion of Finnova's own ecosystem, Finnova has further
can be fulfilled and realised. We support our customers in the marketable assets to be able to develop new growth areas in
successful implementation of their digital strategy, both with bank-related sectors.
our own products and with a broad-based partner network. Finnova Analytics is gaining in importance with the de-
velopment of new markets and new market segments. New
paths open up – also outside the financial sector – as a result
of platform independence and the possibility of using differ-
ent data sources.
Strengthening of entrepreneurial action
Entrepreneurial action will play a central role in the implemen-
tation of our Strategy 2025. We promote and demand intra-
preneurship from our over 400 committed and talented em-
ployees – independence and personal initiative are important
elements in this.
Left to right: Olaf Romer, Markus Metzger, Simon Kauth, Hendrik Lang, Daniel Bernasconi, Raphael Widmer, Jörg Steinemann
Finnova Banking Software
Solutions for Smarter Banking 9
Solutions for Smarter Banking
More than ever, successful business models in banking re-
quire the intelligent use of technology. The digitalisation of
banking, increasing pressure of competition and costs as well
as increasing compliance requirements are driving forces. In
this interplay, we offer our customers efficient and innovative
IT solutions, enabling 'smarter banking' with the open Finnova
ecosystem.
The single-source banking solution
As an open, complete package, the Finnova Banking Software offers banks a broad
range of functions, enabling consistent data storage and processing, up-to-date in-
teraction with clients and comprehensive data analysis.
The Core Suite is the centrepiece of the Finnova Banking Software. It represents
the Systems of Record, which guarantee processing that is as automated as far as
possible and data storage, and this with sharply rising volumes, high speed and an
increasing process orientation. The data is used and supplemented by the Systems
of Engagement (Client Engagement Suite) and the Systems of Insight (Manage-
ment Suite). The Systems of Engagement address customer experience, mobility
and context-oriented services and information – with the aim of increasing the in-
teraction of products and services for bank clients and making their banking activi-
ties as easy as possible. Last but not least, the Systems of Insight provide analyses
concerning clients, products and markets as well as in-house procedures – with the
aim of making informed decisions, of continuously introducing improvements and
innovations, and of having risks under control at all times.
The Open Platform of the Finnova Banking Software enables integrations for
third-party, development and service partners. It is also used for the integration and
orchestration of Finnova's own applications and suites. This makes way for an open
ecosystem. Bank clients continuously perceive processes in a digitalised manner.
In accordance with the 'Systems of...', Finnova takes on different roles as business
driver and/or business enabler.
FINNOVA AS A FINNOVA AS A
BUSINESS ENABLER BUSINESS DRIVER
SYSTEMS OF SYSTEMS OF SYSTEMS OF FINNOVA ECOSYSTEM
ENGAGEMENT INSIGHT RECORD & DELIVERY
Client Engagement Suite Management Suite Core Suite Open Platform
10 Finnova Banking Software
Value proposition for our customers
Finnova Banking Software
Value proposition for our customers 11
Value proposition for our customers
Thanks to an extensive ecosystem and versatile partnerships, A single-source solution
With us, customers get everything from one source, from business analysis and
our customers benefit from an extremely modern, reliable and consulting to solution architectures, technology, products and solutions, through
high-performance standard solution with breadth and depth to training and support. In particular, this means we can implement special require-
ments of our banks quickly and together.
of functionality, as well as high-grade individualisation – all
with an attractive total cost of ownership (TCO). Stability and low TCO
Our software has been operating reliably for years in varied constellations of use. It
is characterised by the stability that our customers highly value, whether for peak
loads such as the year-end processing or for rolling out new functionalities as a re-
sult of continuous releasing.
Thanks to the high-grade standardisation and the single-source approach, we
can build and maintain our software cost-effectively. This allows us to keep produc-
tion costs low for our customers. The unique parameterisation capability enables
The value chains of banking processes are increasingly shifting to the bank client our customers to optimise and automate the processing of their bank transactions,
via digital solutions and services. This makes a consistent and media disruption-free and to industrialise their processes. The flexible operating models also contribute
orchestration of data and communication channels possible. Identification with to our customers achieving a very attractive TCO.
the brand of the respective bank also increases with a consistent user experience.
Therefore, reliability, availability and security of a solution will also be important for
banks in future. We build our solutions according to this principle.
Customer knowledge and proximity
Our customers have always been the focus of our thinking and actions. Thanks to Cost-to-Income Ratio (CIR) Ranking of Swiss Retail Banks 2019
them and the constant collaborative exchange, we keep pace with market devel- (Basis 2018)
opments. Only this way can we set the right priorities and drive the further devel-
opment of our standard solution forward for the benefit of our customers. Among Ranking Bank CIR Ranking Bank CIR
other things, the newer Finnova solutions such as Advisor Workbench, Loan Advi-
sory, Investment Cockpit, Analytical Framework and Open Platform came into be- 1 Banque Cantonale de Fribourg* 34.31% 7 Appenzeller Kantonalbank* 45.91%
ing within the framework of this close exchange. 2 Bank Leerau Genossenschaft* 43.10% 9 Graubündner Kantonalbank* 46.72%
3 Schwyzer Kantonalbank* 43.58% 10 Banque Cantonale du Valais* 46.97%
4 AEK Bank 1826 Genossenschaft* 44.25% 11 Regiobank Männedorf AG* 47.05%
5 Zuger Kantonalbank* 44.93% 12 Clientis Sparcassa 1816 Genossenschaft* 47.18%
6 Schaffhauser Kantonalbank* 45.46% 15 Migros Bank AG* 47.41 %
Ecosystem and Community
The Finnova Community of banks and partner companies brings together the largest Source: IFZ Retail Banking Study 2019, p. 65
and most diversified banking ecosystem in Switzerland. Across dedicated commit- *Finnova bank
tees, we offer the banks and partners at various levels of management and perfor-
mance a platform to actively participate in the product design and strategic direc-
tion, and to drive innovations forward together.
Freedom of choice and flexibility
Whether an individual installation, operation on a multi-tenant tower, software as
a service or a BPO service, our customers can choose the most suitable operating
model and operating partner for them.
In all operating models, they benefit from our continuous releasing process –
on a quarterly basis, or even on a monthly basis, if desired. New software is rolled
out incrementally.
12 Finnova Banking Software
Success for customer segments
Finnova Banking Software
Success for customer segments 13
Success for customer segments
Finnova actively manages Switzerland's largest banking com-
munity, consisting of around 80 universal banks and 20 pri-
vate banks. Supplemented by over 100 partner companies, it
offers customers a comprehensive ecosystem together with
the accompanying services of Finnova.
>> Universal and retail banks >> Transaction banks >> BPO providers
The focus of universal and retail banks is on increased efficiency and compre- The most efficient processing possible of payments, se- Efficiency in banking is achieved today by breaking down
hensive functionalities. We support them with our highly automated software, curities, foreign exchange and loans for other banks is the value chain and outsourcing standard processes to
high STP rates and efficient processes. The Finnova Banking Software stan- the core competence of transaction banks. The Finnova BPO providers. The Finnova Banking Software is ideally
dard solution already contains a very broad functionality for universal and retail Banking Software helps them achieve this with maxi- suited as a backbone for the industrialisation of banking
banks that can be individually extended, notably through our open partner mum scalability, high STP rates and maximum automa- processes. In addition, it offers a user platform espe-
ecosystem. tion. cially designed for BPO providers, with which processes
for several banks can be handled simultaneously.
Banque Cantonale de Fribourg InCore Bank
Clientis banks VZ Depository Bank Finanz-Logistik
ESPRIT network Sobaco/InCore Bank
Graubündner Kantonalbank Swisscom
Migros Bank >> Digital asset banks
Valiant Already during the phases preceding market maturity,
Finnova was engaged with the topics of 'cryptocurren- >> Fintechs and development companies
cies' and 'digital assets'. The integration solutions of the Open Platform enable a
>> Private banks The first digital asset bank in the world was given systematic connection of various systems to the Finnova
The change in private banking with growing compliance requirements, margin the green light from FINMA at the end of August 2019 Banking Software. The Finnova platform thus becomes
pressure and changed client needs results in new business models. We offer and started productive operation on the basis of the an open ecosystem that supports the interaction of vari-
private banks specific functionalities such as our new Portfolio Management Finnova Banking Software at the start of September ous actors such as banks' own development teams, op-
System and the Advisor Workbench. They also have the possibility of simple 2019. With the integration of custody, brokerage and to- erating partners, development companies, fintech busi-
connection of best-of-breed third-party solutions, which are already being kenization applications, a fully integrated solution can be nesses and BPO partners. It helps Finnova to increase
used in many forms in private banking via FIL Integration Services. With its in- designed in combination with the core banking function- agility in the provision of functionalities and to meet the
tegrated functions and interfaces, the Finnova Banking Software offers a alities. challenges resulting from the breakdown of the value
compliant implementation of regulatory and tax requirements, leaving private chain and the technological change in banking more
banks on the safe side – at an overall attractive TCO. Sygnum quickly.
InCore Bank
Habib Bank Zurich Camunda
Lienhardt & Partner Privatbank Contovista
Mercantil Bank (Switzerland) >> Financial services Crypto Finance
Neue Bank (Liechtenstein) In the area of financial services, we address the seg- Ergon Informatik
Privatbank Bellerive ment of non-banks, which, although offering bank-re- Jemmic
REYL & CIE lated services on the basis of their business model, do Netcetera
not require a full core banking system. With Finnova's ti&m
SaaS model, customers have the advantage of using the
Finnova Banking Software on a modular basis as well as
being able to flexibly choose the functionalities used and
planned extension stages.
Liberty (pension provision platform)
The listed names are an extract from the reference lists.
14 Finnova Banking Software
Value proposition for our customers >> Banking – The future is now I
Finnova Banking Software
Value proposition for our customers
The only thing that does not change is change itself.
The future has never been set in stone; it is a moving target. Un-
predictable developments can throw us off course and force us
to rethink – 2020 has provided us with a stark reminder of this.
However, the better we understand the past and present, the
better we are prepared to fact the uncertainties of the future.
Trends come and go, but the challenge of making progress and
remaining flexible remains. Our technical experts are required
to analyse trends, identify opportunities and not lose sight of
the wood for the digital trees on a daily basis. On the following
pages, three of them have their say and highlight three exciting
topics that are already shaping future banking today.
Digital experience II
AnalyticsVIII
Open banking XIV
III Knorr The company history of Knorr began in 1838 with the foundation of the company 'C.H. KNORR, milling products, regional goods and soup factory' by Carl Heinrich Knorr in Heil- bronn, Germany. At the time, nobody suspected that the Knorr products would be among the most successful consumer goods worldwide 150 years later. Convenience food and haute cuisine address different client needs today: convenience and time saving on the one hand, and quality and ex- perience on the other hand.
IV >> Banking – The future is now >> Digital Experience V
Fast food or haute
cuisine?
In banking, as with food, the force of habit applies. A famil-
iar taste gives us the certainty that the product is good. At
the same time, it is in our nature to want to broaden our
horizons and try new things that were not known to us be-
fore now. What happens if regular bank clients acquire new
tastes?
When making important decisions, in particular History repeats itself
when settling financial matters, we act in ac- Asset management, lending business and pay-
cordance with the principle of trust. This trust ment transactions: these traditional tasks are
An embodiment of personal service is the 'Kronenhalle', one of
does not come about overnight – however, it deeply rooted in the DNA of Swiss bankers and Zurich's most traditional upscale restaurants with a traditional
can be gambled away quickly. Traditional banks their regulation goes back as far as the 14th menu. The 'Kronenhalle' was opened in 1924. It is still known for
with their long-standing level of trust therefore century. However, the Swiss banking system its impeccable service and good cuisine today. You book a table by
still have an almost unbeatable asset at their only made a breakthrough in 1850 when the telephone or email and not via a booking platform.
disposal. But what if the regular clients acquire first commercial banks (e.g. the Swiss Credit
new tastes? And if they not only jump on the Institution and the Swiss Bank Corporation)
bandwagon of new food trends, but also that honed in on the financing of railway construc-
of digital banking trends? tion and on growing large-scale industry. As They all share the tactic used: They offer a set
The traditional banks must first classify dig- a counterpart to these large banks, numerous of basic services and features that is aimed at
italisation correctly for themselves and see it resourceful credit institutions (including many a single selected group, namely digitally savvy GLOSSARY
as an opportunity. Why not selectively extend cantonal banks) emerged between 1860 and clients. The same applies as for a good burger:
the menu? A bank can also benefit from digi- 1880, tailoring their services to the needs of quick, simple, cheap. They are therefore focus- Customer experience (CX) Customer experien-
talisation without having to turn away from its tradespeople and the middle class according to ing on basic needs for accounts, cards and pay- ce relates to the experience had, for example,
fundamental values. A new trend is also ulti- the motto 'small bank vs. large bank'. ment transactions, as well as lower fees for before purchasing a product or the use of a
mately quickly tried out. However, the reverse services and currencies. service/product.
also applies: If the challenger banks – the hip Burger instead of banquet: simple, fast Thanks to this simplicity (foregoing expen-
food trucks of banking, so to speak – want more and highly segmented sive physical presence, eliminating complex Legacy system In computer science, this term
designates an established application
then just an amuse-bouche, they not only need If you apply the events from the time around advisory services), the focus on a single tar-
(software) developed over time, which is often
to vie for the favour of the clientele, but also 1860 to the present, a similar pattern emerges. get group and the use of highly developed IT
characterised by its high degree of complexity
build long-term trust and thereby generate sus- Today, with Yapeal, Neon, Zak and most re- systems, banks can rely on processes that are
and lack of flexibility.
tainable financial benefits. cently Flow, four Swiss fintechs are already standardised and highly automated processes.
driving forward the smartphone banking mar- However, in theory, this highly efficient busi-
Neobank A neobank is usually a young bank that
ket with seemingly new offers. With Revolut, ness model is only possible if the start takes
newly defines banking for its target groups. A
N26 and Transferwise, international challenger place without a legacy system, in other words
neobank is also often designated as a challen-
banks have also discovered Switzerland as an from scratch and without manual processes or ger bank.
interesting market and are about to assail the mixed heterogenous IT systems.
established banking institutions.VI >> Banking – The future is now >> Digital Experience VII
THE AUTHOR
Traditional bank Neobank/challenger bank
Trust Arisen and confirmed over time Only partially available and needs to be confirmed
Advisory Personal and individual Digital offers (mostly in self-service form)
Digital? Phygital!
Range Comprehensive in breadth (savings, payments, Specialised in selected topics Only few traditional companies appear to be
financing, investments, pension provision) and depth
ready to fully reinvent themselves and to set
aside the semi-automated IT systems and pro-
Target group Universal (private clients, business clients) Specialised and mainly themed
cesses from decades of experience. It makes
PHILIPP ZIMMERMANN
Product development Inside-out: Old wine in new bottles Outside-in: Radical client orientation little sense for traditional banks to abandon ev- Head of
erything they have tried and tested to begin Product Management Digital Banking
Strengths Solid financing and efficient quality management Short decision-making processes and client focus as a almost as a startup again. But how can they Finnova
maxim prove themselves in the digitalisation race?
The traditional governing bodies of most 'The digital ecosystem offers endless
Weaknesses Inflexible for the reduction of legacy in products, Missing client base and limited equity capital banking institutions may well say 'We differ- possibilities for achieving dynamic balance in
systems and processes entiate ourselves through our customer service the client–bank relationship, thereby taking
and personal advisory'. But is that enough? Af- banking to the next level of advancement.'
Opportunities Transformation: Offers in new (digital) channels Enhancement: Larger client base or expansion of the ter all, challenger banks make absolutely no
product range
compromises when focussing on clients. Al-
though neobanks do not have the basis of trust
Risks Loss of potential future target groups Race against the clock: Will the critical mass be reached
of a traditional institution and their clients can-
fast enough?
not expect personal advisory, they are fully ori-
Sources of income Interest rate difference business, fees, advisory Mostly fees/currency exchange ented towards their digitally savvy clients with
business a very specific need with their modern IT sys-
tems. They ensure the digital client experience
(also a form of service quality) is amazingly sim-
ple, with transparent information across the se-
lected channels.
Therefore, 'phygital' is a great opportu-
nity for traditional banks, with the connection
Therefore, 'phygital' is a of physical and digital worlds: merging exist-
ing strengths in personal advisory with innova-
great opportunity for tradi- and relationship management as well as a wide tive channels and offers and thereby creating
range of products. Not to mention the coffers a competitive hybrid model. Even if the digital
tional banks, with the con- filled to the brim despite margin pressure, universe is quick, simple and cost-effective, the
nection of physical and dig- which enable the technological development human factor must not be ignored. In the fu-
or conversion of IT systems without constantly ture, clients will also need a person they trust
ital worlds. having to plan financing rounds. Therefore, in as a contact for more complex transactions;
essence, the banks have robustness and oper- know-how cannot be simply outsourced to cli-
ational advantages at their disposal, with which ents continually.
they can pit themselves against their challeng-
ers. Food must taste good to the guest, not to
In distribution, neobanks namely sense the the cook on the competition and adjust the menu se-
disadvantages of their often too young market It is essential that banks not only expand their lectively and perhaps only seasonally to find
All that glitters digitally is not gold presence if they have not yet reached critical digital platforms, but also learn from the great- out how its clientele reacts. It understands that
Whoever hastily proclaims the superiority of mass for their platform. New market entrants est advantages of their competition: their un- the consumer not only appreciates the food,
neobanks over their traditional opponents has want to win the duel for more efficient pro- conditional outside-in business model. The cli- but also has expectations regarding ambience.
learnt little from history. It is not only basic ser- cessing of standard business, but the margin ent is king, and the offer is focused on them. If the menu needs to be adjusted long-term,
vices that provide for a sustainable and eco- in basic business is too small – how long can Whoever wishes to survive long-term will do the question arises as to whether the existing
nomically profitable client relationship. Tightly they actually stick with this business model? well to orient themselves towards the needs kitchen team is flexible enough or if they need
organised, established banks with robust struc- They do not yet have the range of necessary of consumers, thereby making the customer to look for a new head chef. Perhaps the tal-
tures not only have efficient quality manage- capabilities at their disposal to be able to make experience a high priority. ented chef of the hip and trendy bistro on the
ment at their disposal – just think of the recent a sustainable impact on the banking business A good restaurant knows the big food corner is headhunted or its owner recognises
debacle surrounding Wirecard – but also de- as a universal service provider. And they do not trends and reacts if the demand from custom- the advantage of a partnership with the estab-
cades of experience in the area of customer want this either. ers changes substantially. It will keep an eye lished gourmet restaurant?IX Syrian hieroglyphics Over 3,000 years ago, people deliberately took care to leave behind traces and history. Hie- roglyphics have been used in various places on this earth. In our part of the world, stonemasons signed their sto- nes – unique and unmistakable, just like the digital fingerprint of a digital user today.
X >> Banking – The future is now >> Analytics XI
'You are what
you click' – Digital
fingerprint analysis
Thanks to findings from digital fingerprint anal-
ysis, banks can counteract the criminal forces
'Digital fingerprint analy-
and their ultimate goal of getting to clients'
assets efficiently and effectively. Even if, at ses increase the protection
worst, a social engineering or phishing at-
tack takes place, in combination with dynamic
of bank clients, secure the
Digitalisation influences almost all areas of our professional real-time transaction monitoring, banks are in bank's reputation and reach
and private lives. And each interaction via digital channels a position to detect and stop fraudulent trans-
actions on time.
their potential in the imple-
leaves traces: It identifies and classifies us as consumers mentation of the UYC con-
From a puzzle piece to the full picture
with certain preferences, interests, needs and habits. But The traces of our interactions and behaviour
cepts.'
what use is that to banking and bank clients? as consumers on the digital channels are de-
termined by the technical tools made available
to us, in other words terminal devices and gad-
gets such as a keyboard, mouse, touchscreen
or the gyroscope of a mobile phone, or simply
by the technical parameters of the respective
devices such as language settings, IP address, GLOSSARY
operating system, geolocation, etc.
Whether a person types quickly or slowly, Dynamic real-time transaction monitoring The
how often they make which mistakes and observation and analysis of transaction data in
how quickly they correct them – this is all per- real time with the aim of gaining insights about
In banking, digitalisation has primarily found its Protecting clients and the bank's sonal information that reflects behaviour and clients, their profiles and their behaviour. As the
way into payment transactions and asset gener- reputation habits. Together with the analysis of the typi- most dynamic of all data sources, transaction
ation, but also increasingly into processes that At the same time, as a result of the intelligent cal transactions for this person and of their al- monitoring is used in the most diverse subject
are recurring or were previously demanding in processing and use of the available information, ready known risk profile and behavioural pat- areas, e.g. fraud detection and prevention,
terms of staff. The analysis of the information – the digital fingerprint should also enable banks terns, this information gives a complete picture. credit risk analysis and analytical CRM.
knowingly or unknowingly – left behind by bank to protect the clients' integrity, i.e. to protect If the bank notices unusual behaviour, it can
clients, the so-called digital fingerprint, can be them from harm, thereby also protecting the react quickly. Gyroscope of mobile phones The gyroscope is
used by the banks for various tasks. bank's integrity. The attackers are not the only an instrument that ensures that the orientation
Main objective of the banks: They want to ones that are technically well equipped – the Full potential is only reached in the right of the smartphone in three-dimensional space
be able to make better offers to their clients, banks also have the possibility of positioning environment and its exact positioning along the axes
can be precisely analysed. The tilt of each
even more precisely tailored to their needs. To themselves with new methods and of coun- Some elements of the digital fingerprints are
person's hand when using a mobile phone and
achieve this objective, banks must continue to teracting attacks. already being used. Some of the techniques
their movement patterns are individual and act
learn how to know and understand their clients Whether social engineering, phishing, used, viewed in isolation, are already innovative
in the same way as a fingerprint.
even better, to identify their needs and to pre- malware attacks or suspicious Covid-19 cam- and are being further developed on an ongo-
dict their behaviour. In turn, this should have a paigns – the methods used by cybercriminals ing basis. However, the digital fingerprint only
UYC concept 'UYC' stands for 'understand your
positive impact on turnover, client satisfaction and fraudsters to obtain the private data of cli- reaches its full potential if is used as part of a
customer'. This highlights clients from all
as well as client complaints and client attrition. ents is becoming increasingly more dynamic, holistic UYC concept such as that of Finnova.
possible perspectives in their facets and
refined and sophisticated. Uncovering, under- In the interplay, it even increases the effective- behaviour patterns. This results in a consistent
standing and preventing all of these methods ness of the already established UYC compo- and uniform analytical 360-degree view of
on time amounts almost to a 'mission: impos- nents. These include, for example, dynamic clients, which allows the bank to better
sible'. However, these attack fronts external to transaction monitoring, dynamic risk-based understand them and to better assess risks,
the bank are also not where a bank can and profiling and behavioural analysis. dangers and potential.
should be applying its protective mechanism
as the bank has little control over them. Fur-
thermore, the defence is naturally always one
step behind.XII >> Banking – The future is now >> Analytics XIII
THE AUTHOR
NIKOLAI TSENOV
Product Manager
Data, Analytics & Compliance
Finnova
'Analytics is not an end in itself but rather a
means to an end. We cannot reduce the
complexity of the environment itself, but using
analytics we can understand it better, simplify
its management and make the best possible
decisions.'
Conclusion
Whether voice analysis, facial recognition or iris
scan – the 360-degree view of clients will be
extended on an ongoing basis. Technical, bio-
metric and behavioural data will always provide
a well-rounded overall view. Even if this may
sound scary at first, it primarily concerns the
protection of clients. Sensibilisation and close
cooperation are therefore important. The dia-
logue between data protection specialists, cli-
ents and software manufacturers should inten-
sify and thus promote mutual understanding
and trust. The right technical environment on
the bank's side is also important for fully ex- The transparent client in
ploiting the potential of new possibilities such the controversy between
as the digital fingerprint. This pays off because protection of personal
at the centre of all these efforts ultimately lies and individual rights and
the protection of both the clients' and the the utmost satisfaction of
bank's integrity. their implicit needsXV Switchboard Industrialisation of data transmission actually began with the patent registration of Bell in 1876. At the time, the conversing parties had to be physically connected with each ot- her, as this picture from around 1900 shows. There is similar behaviour to- day in banking. The traditional one-to- one interfaces still exist, but open APIs and API management make the whole process dynamic. New con- cepts – and open banking – are around the corner.
XVI >> Banking – The future is now >> Open Banking XVII
Open banking in Forms of business ecosystems in the area of
open banking
Switzerland – Myths,
high
Open
facts, opportunities
DEGREE OF OPENNESS
Data-based
Open banking is a hot topic for the future development of
the financial services sector internationally.. Open banking
has gained in importance, not least because of regulatory
requirements in the EU and in countries outside of Europe. Dedicated
Closed
low
very low BUSINESS MODEL INNOVATIONS high
© Finnova
Open banking provides the opportunity to pro- The facts
mote new business models and innovations. It There is currently no obligation to open up soft-
challenges the financial services sector to be ware in Switzerland. The Swiss Bankers Asso-
active and to take a stance. The media hype ciation rejected such a regulation in a position
surrounding the topic of open banking has fu- paper and trusts in the self-regulation of the
elled numerous myths and lead to numerous sector. Banks and interest groups are free to de- In Switzerland, there is currently a particular The vision of OpenBankingProject.ch is to beco-
misunderstandings. cide whether, for whom and under which condi- focus on corporate clients with regard to open me the company network in the area of connec-
tions they would like to open up their systems, banking services. Retail clients of Swiss banks tivity. To accomplish this vision, OpenBanking-
Common myths i.e. make data available. In any case, pressure are waiting in vain for access to open banking Project.ch relies on four approaches:
>> Networking – Vessel for networking in the
>> Open banking is for fintechs; traditional fi- from the EU, consumer protection and data pro- services, such as multi-banking. Currently, the
context of open banking
nancial services providers are losing out tection, or even from end clients, will dictate necessary standards, a common understand-
>> Knowledge platform – Articles and first-
and must relinquish the client interface and the conditions of opening. ing of 'helvetisation' (yes, this exists in spite
hand information on the topic of open ban-
client data. In Europe, the business cases for account of standardised API definitions), and guidelines
king
>> Interplay in the open banking ecosystem is information and payment initiation services are for operationalisation are lacking. Various ini-
>> Community APIs – Adaptation and operatio-
clearly defined, as are the relevant roles. consistently regulated on the basis of the PSD2 tiatives driven by SIX, SFTI and OpenBanking-
nalisation of the best API standards in Swit-
>> Possible business models are obvious or regulation. However, for the time being, the Project.ch are attempting to close this gap. For
zerland
are emerging. new requirement of two-factor authentication, this step to succeed, Swiss banks must ideally >> Developer portal – quick and simple possibi-
>> Integration in open banking is very simple the cumbersome and differently operation- agree on a common standard and then imple- lity of testing the Community APIs
and intuitive. alised process of consent management, and ment it at operational level. Standardised in-
>> The necessary standards concerning inter- the various API standards are creating more terfaces are worthless if they are not correctly The founding partners of OpenBankingProject.
faces, contracts and security are available hurdles for users in the European market. and uniformly implemented on a platform (i.e. ch are convinced that is only possible to overco-
and defined. In light of the situation, numerous Euro- operationalised) and if they cannot be tried and me the challenges of open banking and to suc-
pean market participants are following the strat- tested with exceptional loads. cessfully take advantage of the opportunities
egy of implementing the minimum PSD2 re- with a cooperative and open approach.
quirements and, in parallel, implementing their The opportunities
own APIs and business cases within their eco- Despite these unpromising general require-
Study 'Ecosystems 2021 – what will the future system. ments, the open banking movement offers new
bring?' by Deloitte/BEI St. Gallen options for business model innovations.XVIII >> Banking – The future is now >> Open Banking XIX
THE AUTHOR The foundation of the London financial centre is directly
linked with the lenders from Lombardy and the intensi-
ve trading with America. Loan agreements were con-
cluded in places such as is shown here: The emblem
from 1677 originates from a goldsmith called Stokes
and was adopted by Lloyds Bank in 1884. The logo of
the National Bank of New Zealand arose from this in
1978. Lombard Street in London and the signs of the
banks that were around at the time are still evidence of
this. Open banking is the expression of digitalisation
and further market openings today.
SVEN BIELLMANN
Product Manager
Ecosystem
Finnova
'Open banking is here to stay. We are
convinced that there are no alternatives. In an
ever-faster changing world, cooperation will
soon be the only way to achieve client focus.'
Standardisation of the offered products and
services is indispensable for designing busi-
ness ecosystems such as this to be profitable.
Obstacles for users can be removed, such as
different authentication methods for different
banks, and the necessary compatibility can be
achieved, e.g. for multi-banking. In the financial
services sector, such efforts are still in their in-
fancy, with the exception of the payment ser-
vices sector.
Conclusion
Among all the myths, the fact remains that GLOSSARY
Open Banking is less a technical challenge and
more a change process and cultural change. It API management Holistic management of and added value in joint business models Multi-banking Thanks to multi-banking, cli-
needs to be driven forward with conviction by programming interfaces. This includes, through joint use of resources (e.g. via a ents can view and manage all accounts, and
banks, financial services providers, fintechs and among other things, interface publishing, en- platform) and adherence to jointly agreed make transactions conveniently on just one
core banking software providers. This is key for forcement of usage guidelines, access cont- values (governance). platform. Instead of having to log in again for
taking the step into a new era of banking with rol, maintenance of the community of sub- each account with each bank, only one login
scribers, recording of usage statistics and Banking in the value chain The following is required on the platform.
corresponding business models.
creation of performance reports. question gets to the heart of the matter: As a
Open banking is not a yes or no decision,
financial services provider, how do I position Business ecosystem A dynamic network
If you imagine open banking as a business eco- but rather a journey that favours new strate-
PSD2 The second Payment Services Directi- my products and services most efficiently structure of interdependent stakeholders
system, various fields of action can be defined. gies. Participating in this journey is associated
ve is an EU directive from the European Com- where the real client need is? that create and develop new values together
Financial services providers need to consider with opportunities and risks, and forms the ba-
mission in the area of law on payment ser- by aligning their individual needs and capabi-
in which fields of action they want to be pres- sis for the implementation of a comprehensive
vices for regulation of payment services Open API An open application programming lities with a common purpose.
ent and with which of their products and ser- digitalisation strategy. The significance of col-
and payment service providers throughout interface that allows application programs to
vices. Ideally, the path leads to a holistic strat- laborative business models (business ecosys- the European Union (EU) and the European interact and share data. It is often a REST
egy of opening. It is necessary to consider what tems) will increase as they mean innovative Economic Area (EEA). The aim of the regula- implementation that prepares a particular
the desired business model should look like in services can be offered and new earning op- tion is to promote Europe-wide competition service or software function whilst protec-
this 'brave new open banking world'. The De- portunities can be developed. and participation in the payments sector, ting the rest of the application.
loitte/BEI St. Gallen study 'Ecosystems 2021 – If we all work together, we can stay in con- also by non-banks. Furthermore, harmonisa-
what will the future bring?' clearly shows that trol without getting sidetracked. tion of user protection and rights and duties REST Representational State Transfer
added value and client interaction will increas- for payment service provides and users (REST) designates a programming paradigm
ingly shift towards business ecosystems, so should create equal conditions for competiti- for shared systems, particularly for web ser-
'banking in the value chain' will be ever more on. vices. REST is an abstraction of the structu-
important. So-called open APIs are the key to re and behaviour of the worldwide web. The
offering products and services in these busi- Ecosystems Dynamically developing commu- aim of REST is to create an architectural sty-
ness ecosystems. nities of parties such as businesses, consu- le that better represents the requirements of
mers or institutions, which create markets the modern internet.Finnova Banking Software Value proposition for our customers 15
18 Finnova Banking Software
At a glance
Finnova Banking Software
At a glance 19
Finnova Banking Software at a glance Value Creation Processes
Payments
CLIENT ENGAGEMENT SUITE
The Finnova Banking Software is a comprehensive front-to-
Financing
MANAGEMENT SUITE
back software product for retail, universal and private banks.
OPEN PLATFORM
Investments
CORE SUITE
A consistent process orientation and a modular architecture
enable a flexible adaptation and integration of the business Management Processes
Bank Management
functionalities required by banks, their clients and BPO pro-
Compliance
viders today.
Business Process Management
Value creation processes Management processes
In times of transformation towards digital excellence and increasing competitive pressure, The effective control of a bank and fulfilment of compliance
banks are required to focus on the market services that create added value for their clients, requirements front to back require clearly defined processes
and for which their clients are therefore willing to pay an appropriate price. This means banks along the value added chain of a bank, as well as consistent
can optimise their profitability via the added value generated. The turnover of the banks is pri- data storage and aggregation.
marily composed of the three following value creation processes.
>> Bank Management >> Business Process Management
>> Payments Managing a bank in a dynamic environment with an ev- By consistently aligning bank transactions to the clients'
Digitalisation has significantly simplified the basic function 'Payment Transactions'. Now- er-increasing number of competitors and in an increas- needs, banks are able to create genuine added value for
adays, payments are increasingly made via mobile devices, around the clock. Thanks to ingly regulated market challenges many banks and their their clients. User-centred, effective and flexible process
a consistent optimisation of front-to-back banking processes, it is possible to design sim- managers. Management decisions need to be taken on management that allows both strongly and weakly struc-
ple touchpoints for the client as a way to create a unique client experience. In order for the basis of verifiable facts and in-depth analyses, which tured processes is growing in importance – and with it
this to happen, straight through processing and a high-performance validation and pro- requires a comprehensive, coherent and consistent data technical software support in the form of integrated
cessing engine are also necessary. Most of the basic products of banks, such as ac- and information base. front-to-back core banking solutions like the Finnova
counts or cards, and their administration are also allocated to the payment transaction Banking Software.
processes. >> Compliance
Increasing compliance requirements on the part of regu-
>> Financing lators and authorities also present new challenges for
While financing needs were previously addressed mainly at a regional level, digitalisation the client-bank relationship. These challenges can be
has largely eliminated geographical restrictions and low interest rates have brought new met by consistently focusing our software development
competitors such as pension funds to the market. The importance of fast, cost-efficient on the client and thus on the banking needs. Therefore,
and effective front-to-back processing in the lending business is growing, taking into ac- compliance is becoming an integral part of the interac-
count risks and regulatory requirements – from client acquisition to an overall view from tion between the client and the bank. Technology is
a management perspective. changing approaches to compliance in two ways: firstly,
the importance of an information-oriented approach
>> Investments rather than a process-oriented approach is increasing.
The complexity of processes in the investment business is continuously increasing as The keyword here is 'behavioural patterns'. Secondly,
well. This places higher demands on all those involved, from the client to the client advi- the degree of automation of searches can be signifi-
sor, through to compliance and back office employees – especially as not only national cantly increased as it gains in breadth, depth and quality.
regulatory authorities and domestic and foreign tax authorities, but also special bilateral
solutions play a part in this. New and innovative technology-based business models chal-
lenge conventional advisory methods. In this context, it is important to create added
value for the bank clients that can be offset. Simple implementation and the costs play
an important role for the bank. This places considerable demands on the flexibility of
multiple systems such as tracking, valuation, alert, exception handling and reporting, to
name but a few.20 Finnova Banking Software
At a glance
Finnova Banking Software
Value proposition for our customers 21
The Finnova Banking Software is divided into three user-oriented product suites,
supplemented by the Open Platform, which itself is divided into product groups.
Expansions take place in all suites in accordance with the strategic focus. The sup-
plements to the standard product available today are presented in this brochure un-
der the associated suite and in the chapter 'Overview of all products'. We inform
our customers and partners about the further development of the Finnova Banking
Software in the quarterly Finnova Product Update.
Finnova Banking Software
Strategic Focus
Digitalisation Industrialisation, Standardisation Data, Analytics & Compliance Ecosystem
Bank Clients & Client Advisors Middle Office, Back Office & BPO Experts Bank Managers Third-Party Partners
Products Client Engagement Suite Core Suite Management Suite Open Platform
Payments E-Banking & Mobile Banking Payments Financial Accounting & Controlling Solution Integration
Financing
Branch & ATM Financing Risk & Compliance Orchestration
Investments
Advisor Workbench Investment Management Regulatory Reporting Master Data Management
Bank Management Loan Advisory Investment Operations Analytics Runtime Environment
Compliance
Customer Management Clients & Products
Business Process Management
Business Banking Tax
Services & Solutions
Enterprise & Consulting & Integration & Data & Quality Application Mgmt &
Academy
Solution Architecture Projects Orchestration Analytics Assurance Cloud Solutions
Smarter banking with three coordinated business suites and the Open
Platform
The Finnova Banking Software is divided into three business suites and the Open
Platform. The suites address fundamentally different stakeholders. As its name
suggests, the Core Suite stands for the central element of core banking and is the
real backbone of the Finnova Banking Software for achieving high-performance
industrialisation and digitalisation and ensuring 24/7 operation of straight through
processing in real time. The other two suites build on this and focus accordingly.
The Client Engagement Suite ensures the interaction between client and bank. It
includes all channels, self-service offers in the portal, e-banking and mobile bank-
ing, as well as processes managed by advisors or service centres at the teller. The
Management Suite constitutes the information and management centre for the bank
management, which gets the maximum out of data using analytical approaches.
The Open Platform is the link within the Finnova Banking Software and to custom-
ised and third-party solutions.
We commit to high consistency of business processes across the whole Finnova
Banking Software, up to and including partner applications.22 Finnova Banking Software
At a glance
Finnova Banking Software
At a glance 23
Finnova Client Engagement Suite Finnova Core Suite Finnova Management Suite Finnova Open Platform
The Client Engagement Suite addresses the interaction with The focus of the Core Suite is on transactionality and the data The keyword of the Management Suite is 'interpretation'. The The Open Platform makes the Finnova ecosystem more acces-
clients. Its central task is the best possible support of banks master role. A high-performance, robust core application de- use of all available data to be able to make informed deci- sible to customers, partners and third-party providers, while
in client communication on all channels available to them. signed to provide the highest degree of automation and stand- sions is a main task of the Management Suite. This also takes enabling them to design their own ecosystems. It embodies
The orchestration of processes and content in the interaction ardisation is an indispensable asset for financial services pro- place with analytical tools under the heading of artificial intel- the openness of the Finnova Banking Software and its solu-
with clients is of utmost importance. This ensures consistency viders. The functionally rich, integrable and modularised Core ligence and machine learning. In particular, the Management tions. In times of ever faster change, innovation and agility
across all channels as well as a user experience optimised for Suite fulfils the requirements imposed on core banking. Suite also addresses needs in the areas of integrated bank are sought-after qualities. In order that the operated Finnova
digital excellence, and offers banks the possibility of flexibly The Core Suite is the central workplace, above all for the management such as financial and company accounting, risk solution can better satisfy these needs, the Open Platform is
equipping the available channels with functionalities and pro- middle and back office, as well as for our BPO partners. It is management, compliance and legal reporting, and is thus the being further designed and developed on an ongoing basis in
cess steps. The Client Engagement Suite is currently being and remains the backbone of the Finnova Banking Software comprehensive instrument for bank and risk management. close cooperation with key players in the Finnova ecosystem.
expanded with a focus on investment. We take into account and comprises the known specialist modules. The structure It pools analyses and reports and in addition, its functional- Digitalised and industrialised banking will be possible in the
the increasing demands of end clients in mobile banking and of the Core Suite covers all modules with payment transac- ities cover the ever-increasing compliance requirements in future if solutions can be built and operated to be compatible
e-banking, and support innovations in the area of ATMs and tions, financing, investments, portfolio management, basic the banking sector. with XaaS. The Open Platform product groups target differ-
the connection of market places. In the area of external asset products, client and advisory processing. The master data re- ent stakeholders in the Finnova ecosystem with their specific
management and in the repositioning of our customer banks tention is located here accordingly. For example, client master, needs and requirements – from customised developments
in the local branch business, we also offer attractive solutions card administration, interest rates, fees, charges and limits are via Solution Integration to quality assurance and high-perfor-
which enable banks to differentiate themselves on the market integrated here. The parameterisable process management mance, cost-effective operation.
using modern information and communication technologies. guarantees the banks an efficient and individual integration.
This use of technology also requires a new generation of The focus of the Core Suite is on the quick and comprehen-
workplace for advisors and service centres to support them sive processing of all business cases and the unrestricted,
in their daily sales activities. This workplace is role-based and role-based access to all data, as well as the fulfilment of op-
offers an integral client and advisor perspective, as well as en- erative security requirements in real time.
abling a direct change to various advisory tools in the areas of
financing, investments and pension provision. Operating models
In times of eroding margins and increased cost pressure, a low TCO is important for the com-
petitiveness of banks. For this, the selection of the right and appropriate operating model of
its IT solution plays a central role for the bank. The Finnova model is based on an open part-
ner approach. Our customers can choose between different partners and operating models.
In practice, different operating models and integrations of third-party solutions have become
established – from individual installations to multi-tenant towers with a parallel operation of 26
banks (in the past, there were also over 40 banks on one tower), from cost-effective standard
solutions to the implementation of complex special requirements with third-party solutions,
for example in the private banking sector.
Existing multi-tenant towers*
SOFTWARE PROVIDER SOFTWARE PROVIDER SOFTWARE PROVIDER SOFTWARE PROVIDER SOFTWARE PROVIDER SOFTWARE PROVIDER SOFTWARE PROVIDER
FINNOVA FINNOVA FINNOVA FINNOVA FINNOVA FINNOVA FINNOVA
LICENCE LICENCE LICENCE LICENCE LICENCE LICENCE LICENCE
INCORE SWISSCOM
RESELLER RESELLER
12 x INCORE/ 2 x FINNOVA
2 x GKB 5 x SÄNTIS 23 x CLIENTIS 26 x ESPRIT SOBACO 6 x SWISSCOM FULL - SAAS
SERVICE
BANK
BPO AM ITO BPO AM ITO BPO AM ITO BPO AM ITO BPO AM ITO BPO AM ITO BPO AM ITO
GKB INVENTX INVENTX FOR EACH OTHER FINNOVA ECONIS SWISSCOM INVENTX INVENTX FINANZ-LOGISTIK SWISSCOM SWISSCOM INCORE BANK SOBACO SOBACO SWISSCOM SWISSCOM SWISSCOM FINANZ-LOGISTIK FINNOVA ECONIS
FINANZ-LOGISTIK
*according to the number of banks in 2021You can also read
