E - Commerce Role of Banking

1/2/2007 1 e-Commerce Role of Banking 2007 Presented by Vietcombank 1/2/2007 2 Customers Knowledge Management and Business Intelligence Electronic Commerce Supply Chain Management Customer Relationship Management Enterprise Resource Planning Direct, Personalized Sales Real Time Order Management Demand Plan Supply Plan Scheduling CustomerService Procurement Distribution Logistics Product/Service Development Management Suppliers/ Partners Business Strategy e-business Enablement Simplified e-business Process Model 1/2/2007 3 e-Business Attraction - Interaction - Transaction - Satisfaction ...Sale... Place order Make payment Billing and inventory Pre-Sale... Publish/update catalog, prices, etc. Browse catalog Negotiate terms ...Post-Sale Manage inventory with suppliers Coordinate with shipping company Resolve issues and maintain relationshipCustomer Service Marketing Sales Reaching new customers Improving bottomline Increasing loyalty Manufacturing Delivery JIT, ordering inventory, shipment- tracking R&D 1/2/2007 4 General Business Strategy e-commerce Implication Consistent processes and information through the supply chain Reduce costs by automating manual, paper-intensive processes Operational Efficiency3 Provide superior customer service Target marketing and sales efforts to individual customers Provide consistent customer experience across all channels Increase customer loyalty 2 Increase exposure through alternate channels Expand to new markets Develop value-added products & services Increase revenue per customer Revenue Growth 1 E-commerce a key component of e-business strategy 1/2/2007 5 Reduces capital / resource requirements Lower operational costs Platform for differentiation Buyer Issues Time intensive Often times inconvenient Limited selection of products / services Seller Issues Capital / resource intensive Rising operational costs Increasing competitive pressures Time savings Buying conveniencei i Broader selection of l i products / services / i Electronic Commerce Web site on-line sales & service Internet Buyers Sellers Store Direct Sales Channel Partners Catalog The Emergence of e-Commerce 1/2/2007 6 E-commerce The Electronic Means of Exchanging Value Internet Merchant (Seller) Consumer (Buyer)Bank (Payment) Logistics (Fulfillment) 1/2/2007 7 Home User I B M I BM Se r v i c e Ban k M i c h a e l M o n e y m a k e r 1 2 3 4 2 5 - 3 3 5 6 7 7 8 8 1 2 3 5 6 K o n t o - N r - K a r t e n - N r . 1 2 3 4 Branch I B M I BM Se r v i c e Ba nk M i c h a e l M o n e y m a k e r 1 2 3 4 2 5 - 3 3 5 6 7 7 8 8 1 2 3 5 6 K o n t o - N r - K a r t e n - N r . 1 2 3 4 Convenience Store ATM/Kiosk Internet Banking Internet Shopping BANK CARD 1234 5678 9012 V A L I D F R O M G O O D T H R U XX / X X / X XX / X X / XX KE N YAM ADA Unmanned Banking ServiceSuper Small Branch Office New Concept Branch Internet Secured NTWK Cyber- Mall Logistics GW e-Commerce: e-Credit/e-Debit Authentication : PKI Unmanned/Customer Site Banking Financial Institution Contactl Center DB Marketing : Intelligent Miner/ BDS Internet Internet Banking Channel E-Apps Information SystemNTWK Bank Insurance Service Marketing Cust. Info. Analysis for Credit Mainstay System Business tie-up System Channel Interface Pricing Risk Mgm't Cust. Mgm't Stock Co. e-Commerce for Financial Institutions 1/2/2007 8 Internet Payments D iagam Online Store Paym ent Se rve r Secure Web Browse r Internet B A N K Merchant's Bank Internet Existing Financial Networks Customer's Bank Paym ent Gatew ay Consumer Merchant dial-up or leased-line Consumer Walle t Secured Tranaction 1/2/2007 9 Electronic Commerce Web site online sales & service Internet The Bank is a Core Foundation for e-Commerce Banking Facilities to businesses and consumers Online banking - retail, corporate Approvals for banking products - OD, Loans, etc. Payment options - Credit, Savings, Current... Trade Finance - Factoring, Discounting, LC, new e-payment... Stock Broking - IPO, e-trading, payments Insurance - New products, computation, premiums, etc. 1/2/2007 10 Key e-commerce Applications - The Bank as a Player or Facilitator Web Banking Services Electronic Bill Presentment - Business to Business & Consumers Payment Systems Internet Stock Trading Internet company Storefronts / Malls e-procurement e-MarketPlaces 1/2/2007 11 Proprietary Property Of IBMProprietary Property Of IB Access Channels Branch-- based services i Call centersll for sales/ f l / services i Brokers// Agents/ t / Partners Commerciali l & Corporate t RMs Privatei t Bankers Helpdeskl Customer Operated Internet I t t Banking/ i / Payments/ t / Brokerage Corporatet Electronic l t i Linkages/ i / EDI I SelfServicel i Kiosks i Telephone/l / VRU Cards ATM/POS/ Otherst Operational Systems General Ledgerl Deposits/Loansi / Payments FX & Electronic Mkts l i Depositoriesi i Treasury/Trading/ i Cards Staff Functions / i / Partner Connectionsi Knowledge Management Brand Management mass merch. . customizationi i innovation/different'ni i / i ' credit i Risk Managementi operational i l market Customer Management segmentationi valuel customer intimacy i i Service Delivery Management Business Processes & Data Management Network management Security/standardsi / External gatewaysl Shared services i Business process re-engineeringi i i Data warehousing i Profit Managementi product profitability i ili customer relationship profitability l i i i ili Bank Operated Banking and Financial Processes 1/2/2007 12 C O R E B A N K IN G A P P L IC A T IO N S R E T A IL B A N K IN G T R A D E F IN A N C E b a c k o f f ic e B A N K IN G D E L IV E R Y C H A N E L S A T M V C B W E B SM S E X T E R N A L N E T W O R K S W I F T I B P S W A N P U B L IC N E TW O R K C U S T O M E R S E L F S E RV IC E S B R A N C H IN T E R N E T P C /T E L p a y m e e n t R E U T E R D A T A W A R E H O U S E M O SA IC /V C B V IS A /A M E X /M C IAV C BM O N E YC O N N E C T 2 4 M ID L EW A R E H Ö th è n g th « n g t in q u ¶ n lý (M IS ) IB P S G a te w a y S W IF T In te r fa c eIS T S w itc h C R M R IS K M G M T . F IN A N C IA L M G M T . M A R K E T T IN G M G M T . M A N A G EM EN T IN F O R M A T IO N S Y S T EM T R E A S U R Y E x e c u t iv e IN F O R M A T IO N S Y S T EM V C B G a tew a y P O S V ie tc o m b a n k IT In f ru s t ru c tu re R e a d y fo r e -C o m m e rc e 1/2/2007 13 C O R E B A N K IN G A P P L IC A T IO N S R E T A IL B A N K IN G T R A D E F IN A N C E b a c k o f f ic e B A N K IN G D E L IV E R Y C H A N E L S A T M V C B W E B SM S E X T E R N A L N E TW O R K S W I F T I B P S W A N P U B L IC N E TW O R K C U S T O M E R S E L F S E RV IC E S B R A N C H IN T E R N E T P C /T E L p a y m e e n t R E U T E R D A T A W A R E H O U S E M O SA IC /V C B V IS A /A M E X /M C IAV C BM O N E YC O N N E C T 2 4 M ID L EW A R E H Ö th è n g th « n g t in q u ¶ n lý (M IS ) IB P S G a te w a y S W IF T In te r fa c eIS T S w itc h C R M R IS K M G M T . F IN A N C IA L M G M T . M A R K E T T IN G M G M T . M A N A G EM EN T IN F O R M A T IO N S Y S T EM T R E A S U R Y E x e c u t iv e IN F O R M A T IO N S Y S T EM V C B G a te w a y P O S VCBOnline on-line banking on-line based products central information management central business management VCBOnline on-line banking on-line based products central information management central business management eBank Products HOME BANKING (VCBMoney) INTERNET BANKING vcb CYBER BILL PAYMENT SMS BANKING eBank Products HOME BANKING (VCBMoney) INTERNET BANKING vcb CYBER BILL PAYMENT SMS BANKING CARD-BASED Products FULL MEMBER OF VISA,MASTERCARD, EXCLUSIVE FOR AMEx EXCLUSIVE ACQUIRER FOR DINER CLUB,JCB 1,500,000 ATM CARD, 200,000 INT’L CREDIT CARD/DEBIT CARD SHARED RUN ATM/POS NETWORK VCB’s Alliance WITH 20 MEMBERS CARD-BASED Products FULL MEMBER OF VISA,MASTERCARD, EXCLUSIVE FOR AMEx EXCLUSIVE ACQUIRER FOR DINER CLUB,JCB 1,500,000 ATM CARD, 200,000 INT’L CREDIT CARD/DEBIT CARD SHARED RUN ATM/POS NETWORK VCB’s Alliance WITH 20 MEMBERS 1/2/2007 14