Qlikview in Banking. Business Intelligence & Interactive Risk Information Discovery. Credit Risk Analytics & Dashboard. Lance Tay. Australia Comprehensive Credit Reporting

1. 21 November 2o13
Using Technology to Bring Risk and Finance
Closer to the Business
INFORMATION INSIGHTS
To Bring Risk And Business Together
Lance T
ay
Head of Financial Services, Japan & Asia-Pacific
ARCA National Conference 2013
Fairmont Resort, Blue Mountains
21 November 2013
Lance Tay
Director of Financial Services
lance.tay@qlikview.com
Lance Tay is the Director for Financial Services Industry in QlikTech’s Global Market Development Unit.
He provides deep domain expertise and solutions to QlikTech’s banking and insurance customers in Japan
and Asia-Pacfic. Lance brings to this role a wealth of experience and valuable insight gained through over
twenty years of experience working with some of the region’s largest financial services companies. His
domain expertise includes retail banking, wealth management, cards services, trade payments, and P&C
lines.
Lance has worked with many financial services institutions in Australia, New Zealand, South East Asia, India,
China, and S. Korea to envision and implement transformation programs in the areas of customer
segmentation, acquisition, on-boarding, and retention. He is considered a business transformation and
business strategy thought leader within the financial services sector. And, He is a regular commentator in
leading industry publications and is often invited to speak at industry seminars about breakthroughs in retail
financial services and IT strategy.
Prior to joining QlikTech, Lance held management positions at The Boston Consulting Group, Accenture,
Oracle Corp, and Procter & Gamble. Lance was also the general manager of the national check processing
center for a major regional bank.
Lance holds a MBA from Cornell University, and a Bachelor of Science from the Southern University of New
Hampshire. Before settling down in Singapore, Lance lived in Sydney, Bangkok, Mumbai, and Geneva.
Lance Tay
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2. 21 November 2o13
Agenda
• QlikTech, Qlikview, and Business Discovery
• Qlikview in Financial Services
• Qlikview Solutions for Risk Management in Banking
- Enterprise Risk
- Counterparty Risk
- Credit Risk
- Liquidity Risk
- Operational Risk
- Market Risk
- AML and Fraud
• Customer Case Studies
• Qlikview Solution for Australia’s CCR
• Qlikview Solution for Cross-Border Strategies & Challenges
• Q &A
Qlikview – Interactive Analytics
Video Vignette - Business Discovery
Lance Tay
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3. 21 November 2o13
QlikTech
3,000+ Financial Services clients
• Founded 1993 in Sweden
• 26,000 customers in 100
countries
– 1,800+ banking customers
– 15 of the top 15 banks
– 5 of the top 5 Insurers
– 10 of the top 10 capital markets
• 1,400+ employees across 28
offices in 23 countries
• 1,200 global partners including
industry specific technology,
solution and SI partners
Qlikview in Australian Banking
QlikView is used in many areas of Australian Banks including:
• Treasury dashboards (liquidity, funding, return, etc)
• Market Risk Limits Management
• Cards Product and Marketing Analy sis
• Interest rate risk and VaR
• Deposits Portf olio analysis
• Global Capital Markets
• “For v alue” batch monitoring
• Expense Management
• Retail Sales Dashboards – lending, deposits
• Finance analy sis and what if
• HR FTE, resource utilisation, gender equality, etc
• Project Management consolidated v iew
• Adv isor perf ormance and coaching
• Cross Sell and Up Sell across businesses
Lance Tay
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4. 21 November 2o13
Enterprise Risk & Compliance for a Global Bank
Video Vignette - Customer Confidence
Qlikview
• Qlikview is Business Discovery for
Banking - the most demanding
industry in the world
• QlikView is the market-leading
business discov ery platform for the
f inancial serv ices sector by providing
true self -service BI
• QlikView empowers business users
and decision-makers by providing
access to data-driv en insights,
business discov ery and collaboration
• The experts in business discovery
within f inancial services with a prov en
set of solutions and methodologies for
tackling the challenges f aced by
today ’s financial institutions
Lance Tay
Gartner BI Platform User Survey 2011: #1 in
Performance, Satisfaction with development
tools and Lowest total cost of ownership
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5. 21 November 2o13
Data Discovery (aka Business Discovery)
• “Business Discovery” or
“Data Discovery” is
Business Intelligence with
interactive reports and
explorable data from
multiple sources.
• According to Gartner,
"Data discovery has
become a mainstream
architecture in 2012”
Insight Everywhere
Business Discovery is a whole new way of
doing things that puts the business user in
control.
Unlike traditional BI, where just a f ew
people are inv olv ed in insight creation,
Business Discovery enables everyone to
create insight.
It’s about workgroups, departments, and
entire business units hav ing access to the
data they need to make better decisions.
With QlikView, businesses can take insight
to the edges of their organization, enabling
ev ery business user to do their jobs
smarter and f aster than ever.
Qlikview – Power to the User
Video Vignette - A String of Related Questions
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6. 21 November 2o13
Qlikview in Financial Services
Front, Middle, and Back Office
Sales, Branches & Advisors
• Sales & Revenue Analysis
• Customer Targeting
• Wealth Management Analysis
• Sales Performance Analysis
• Online Channel Applications
Executive Management
• Executive Dashboards and Mobile
• Balanced Scorecards
• Predictive / What-If Analysis
• Product Performance
• Performance, Margins, Commissions
Lending, Payments & Transactions
• Transaction Activity Analysis
- Deposits & Withdrawals
- Payments & Collections
• Mortgage and Loan Production
• AML / Fraud Investigation
Operations, IT, & Back Office
• IT Systems & SLA Management
• Project Portfolio Management
• Physical Asset Inventory
• Branch / Network Optimization
• ATM Rationalization
Risk Management & Compliance
• Risk & Exposure Analysis
- Credit, Market, Portfolio, Operational
and Liquidity Risk
• Compliance –Basel II, KYC, AML, USA
Patriot Act, Dodd-Frank
Portfolio Management
• Portfolio Management & Analysis
• Multi-Channel Performance
• Product Research
• Scenario / What-if Analysis
Finance
• Expense Management
• Financial & Management Reporting
• P&L Analysis by LOB
• Fund Accounting / GL
• Supplier Spend Analysis
Dashboard
Analysis
Marketing & Product Management
• Customer Cross-sell and Up-sell
• Customer Profitability & Segmentation
• Product Performance Analysis
• Marketing Campaign Analysis
• Web Analytics
Risk Management – The Drive for Stability
No Surprises !
• Risk management has been named as one
of the top four financial services themes for
2012 by the “IDC Financial Insights 2012
Predictions”
• In order to remain compliant and mitigate
risk, financial institutions are seeking to
adopt an enterprise-wide approach, ensuring
risk management is woven into the decisionmaking processes across all lines of
business, risk types and geographies
• Financial institutions are pursuing tools that
can provide risk personnel with the ability to
view, interrogate and analyze their risk data
on demand
• Meeting regulatory compliance remains a
top priority especially with regulations such
as Basel II+ for banking and Solvency II for
insurance
Lance Tay
BARC BI Survey 2011: #1 in Customer loyalty,
Mobile use, Intent to buy more licenses,
Performance satisfaction and Product features
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7. 21 November 2o13
Qlikview Solutions for Risk Management
Find the Unknowns
• QlikView can consolidate large volumes of
data from disparate sources into a single view
• The in-memory ‘associative’ data layer allows
users to interact with risk data in an intuitive
interface which facilitates non-structured
analytical paths and drill through to details
• QlikView provides business users with the
ability to explore risk data and answer
questions without having IT deliver static or
prompted reports which provide limited
analysis capability
• QlikView has an extensive partner solution
and consulting offerings dedicated to risk
management within financial services
“It would take a year and a million dollars to
implement this functionality with traditional BI”
IT Team Lead, Major Com m er cial Lending Or ganization
• QlikView has proven experience delivering
complex risk solutions to banking,
securities/investments and insurance clients
Qlikview Key Functionality for Risk Management
Uncover the Unknown Unknowns
• Risk data discovery: Enables business users to
explore and interpret risk data
• Ad hoc analysis & reporting: Build simple or
complex interactive reports from scratch
• Risk data aggregation: Leverage in-memory
storage to pull together data from multiple
disparate sources at low levels of detail
• Mobile consumption: Deploy risk content to iPads,
iPhones and Android mobile devices
• Regulator inquiries: Quickly answer questions and
minimize manual efforts
• Search: Locate risk data in structured and
unstructured fields
• Association: Find risk data relationships
through built-in association functionality
“With QlikView at the core, we have built a
scalable and flexible data architecture with
new processes to allow more efficiency in
aggregating and reporting insurance
program information.”
CIO, Global Insur ance Or ganization
• Drill down: Identify trouble spots and drill down to
transaction level details
• Integration: Integrate with custom or 3rd party risk
calculation engines, portals and visualizations
Lance Tay
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8. 21 November 2o13
QlikView Application Areas for Risk Management
Enterprise Risk Management
• Economic and Regulatory Capital
• Risk & Exposure Analysis
• Credit, Operational, Market, Liquidity
• Regulator and Board ad hoc requests
• Executive Risk Dashboards / Scorecards
Liquidity Risk
• Intraday Liquidity Snapshot / Trend
• Limit Management
• Idiosyncratic Survival
• Cash Flow Events
• Liquid vs. Illiquid Products
Counterparty Risk
• Counterparty Performance Trends
• Risk calculation / Simulation Integration:
- Credit Valuation Adjustment (CVA)
- Right Way / Wrong Way Risk
Analysis
- Risk Correlation
Credit Risk
• Mortgage and Loan Production
• Delinquencies and Charge-Offs
• Transaction Activity Analysis
- Deposits and Withdrawals
- Payments and Collections
Operational Risk
• Internal / External Events
• External Loss Events
• Risk Control Self-Assessments
(RCSA)
• Advanced Measurement Approach
(AMA)
• Data Quality and Controls
Market Risk
• Trade book performance and what-if:
- Equity Performance
- Interest Rates and FX Rates
- Commodity Prices
• Portfolio VaR, Stressed VaR
AML and Fraud
• Fraud Detection and Investigation
• Suspicious Activities / Transactions
• Watch List and Case Management
• Transactional Pattern Analysis
• Social Profiling
Regulatory Compliance
• Basel II+ (Banking)
• Solvency II (Insurance)
• Know Your Customer (KYC)
• Treating Customers Fairly (TCF)
• Sarbanes Oxley (SOX)
Customer Examples
Enterprise Risk Management
Liquidity Risk
Credit Risk
Counterparty Risk
Operational Risk
AML and Fraud
Market Risk
Lance Tay
Regulatory Compliance
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9. 21 November 2o13
Qlikview – Demo
Video Vignette – Commercial Credit Risk
QlikView for Enterprise Risk Management
• Challenge:
–
–
–
Consolidate risk analytics across multiple
geographies, risk classes and lines of businesses
Share insights with key executives, shareholders
and regulators
Better manage economic and regulatory capital
• Solution:
–
–
–
Risk & exposure analysis across credit,
operational, market, liquidity, etc
Executive risk dashboards/scorecards to satisfy
inquiries from regulators and the board
Analyze economic and regulatory capital
Risk Container solution, built by Project Brokers, QlikView Partner
• Benefits:
–
–
Lance Tay
Help towards achieving the bank or insurer’s
performance targets and deliver shareholder value
Ensure effective internal reporting and external
regulatory compliance
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10. 21 November 2o13
QlikView for Credit Risk
• Challenge:
–
–
–
Optimize loan approval decisions
Reduce defaults and improve credit quality
Manage portfolio credit risk
• Solution:
–
–
–
Analyze credit applicant profiles based on peers
Effectively track past due loans & forecast defaults
Investigate credit portfolio risk
• Benefits:
–
–
–
Reduction in loan defaults
Increase in loan profitability
More proactive credit portfolio management
Credit Risk management example showing ‘what-if’ analysis
QlikView for AML and Fraud
• Challenge:
–
–
Ability to detect and combat fraud at a corporate
and executive board level
Ability to spot and share knowledge regarding
high-risk customers and fraudulent practices
• Solution:
–
–
–
Rapidly integrates data sources and produces
compliance analytics on demand
Identify and mitigates suspect behavior or
potential fraud
Investigate and respond to ad hoc regulatory
compliance requests
Fraud example showing potential insurance claims fraud
• Benefits:
–
–
–
Lance Tay
Reduce regulatory fines and penalties
Reduce reporting and manual data analysis costs
Avoid potential reputational risk
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11. 21 November 2o13
QlikView for Regulatory Compliance
• Obj ectiv e:
–
–
Eliminate risk and compliance silos and effectively
manage risk across the business
Compliance across multiple regulations and embed
compliance across core business practices
• Solution:
–
–
–
Deliver timely, accurate information to optimize risk
processes and management
Share risk insights with decision-makers
throughout the organization
Accurately identify and mitigate fraud and
operational risk
Regulatory Compliance example showing aggregated risk profile
• Benefits:
–
–
Compliance with evolving regulations, including
Basel II+, Solvency II, FDICIA, GLBA, SOX, etc
Deliver on demand, actionable analytics to ensure
risk is understood and remediated quickly
UK-based GlobalBank – QV in Market & Credit Risk
Utilised in Market &Credit with a wide v ariety of applications being used:
Users: 400-1,000 (globally)
Market &
Credit
Lance Tay
•
•
•
•
•
•
•
•
•
•
•
Single Name Concentration Report
Portf olio QV
Market/Trading Risk Aggregation
Counterparty Risk
Settlement Risk
Underwriting
Contingent Risk
3D Stress (Portf olio Stressing)
QMart – Basel III
Exposures
Credit Valuation Adjustment – Basel III
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12. 21 November 2o13
UK-based GlobalBank - QV in Group Risk
Utilised in Group Risk with a wide v ariety of applications being used:
Users: 150-250 (Globally)
Group
Risk
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Market Risk –
Capital & Analy tics
Europe Retail & Business Banking
Group Wholesale Credit Risk
Pillar 3 – Group Risk Operations & Reporting
Stress Testing – Capital & Analy tics
Fraud MI – Group Fraud Risk
GXX – Group Risk
FRXX Pack – Group Risk
Liquidity Buffer Market Risk
FXXX – Capital & Analy tics
Retail Credit Risk
Trading Market Risk – Market Risk
Treasury Daily Risk – GMR
BAU – Retail Credit Risk
Case Study:
Maj or Credit Rating Agency
• Major credit rating agencies with a worldwide
presence. T hey generate over $2B in annual
revenue and have more than 3,500 employees
• Challenges:
–
To allow all analysts to rapidly assess exposures,
predict losses, estimate debt ratios, quantify
analytics, and publish results to internal and
external clients
• Solution:
–
–
–
Credit Quality: Fast and flexible analysis of loan
and pool level data before inclusion with existing
datasets for rating
Risk & Exposure: Dimensional analysis to discover
trends, analyze spreads, and assess exposures
across investment collateral and asset types
Rapid implementation of very sophisticated
application in less than six months
• Results:
–
–
–
Lance Tay
Improved credit risk assessment and
understanding of exposures that factor into ratings
Reduced average credit analysis time by weeks
Improved consistency and accuracy of credit data
Improved credit risk
assessment and
understanding of exposures
Reduced credit analysis time
by weeks
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13. 21 November 2o13
Case Study:
Bank Neuflize OBC (ABN AMRO)
• One of the top three private banking and wealth
management firms in France, with over $30B in
assets under management
• Challenges:
–
–
Build a centralized, cross-entity operational risk
monitoring system for controllers and executives
Provide reliable, real-time tracking of processes
across thousands of operational control points
• Solution:
–
Deployed QlikView to central risk control
organization for:
•
•
•
Operational Risk Monitoring and Fraud Investigation
Centralized, real-time monitoring across 1,700
checkpoints, 8,000 instances, and 5m transactions
Allowed team to compare and combine from different
sources and standpoints to understand activity and
pinpoint areas of concern
• Results:
–
–
Reduced operational risk by allowing investigation
down to the transaction level, to uncover
underlying drivers
Eliminated 120 days of manual reporting effort for
a team of 20 controllers
Reduced operational risk by
allowing investigation down to the
transaction level
Eliminated 120 days of reporting
overhead for team of 20 controllers
Qlikview Solutions
• Australia’s CCR Privacy Code
• Risk Decisioning Approach
• Cross-Border Strategies & Challenges
Lance Tay
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14. 21 November 2o13
Qlikview Solution for Australia’s CCR
• Preparing for CCR
• Readiness Testing
• Operational Support
• Monitoring
• Ensuring Compliance
The Privacy Amendment
(Enhancing Privacy
Protection) Act 2012
• a simplified and enhanced
correction and complaints
process
• a prohibitio n on the reporting
of credit-related information
about children
• a prohibitio n on the reporting
of defaults of less than $150
• the introduction of specific
rules to deal with prescreening of credit offers
• the introduction of specific
provisions that allow an
individual to freeze access to
their credit related personal
information in cases of
suspected identity theft or
fraud
• the introduction of civil
penalties for breaches of
certain credit reporting
provisions.
New Shared
Data Elements
•
•
•
•
•
Date account
opened
Credit limit of
the account
Ty pe of credit
Date account
closed
Repay ment
history
Qlikview Risk Decisioning Spectrum
From Visualization to Business Insights
Cross-Border
Customers /
HNWI
Risk &
Margins
Unsecured & Small
Business Lending
Mass Market &
Secured Lending
Lance Tay
Inv estigative Decisioning
Interactiv e Decisioning
Visualization &
Automated Decisioning
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15. 21 November 2o13
Qlikview App for Credit Risk – Retail Banking
Empowering Credit & Business Teams
Function
Loan Officers
Credit Risk
Management
Lending
Executives
ALCO
Compliance
Officers
Capability
Goal
Value
Prov ide big-picture
v isualization
Optimize loan
approval
decisions
Reduce defaults
and improve
credit quality
Manage credit
portfolio risk
Meet regulatory
requirements (eg
CCR, Priv acy)
Reduction in
loan defaults
Analyze credit
applicant profiles
based on peers
Increase in loan
profitability
More proactive
credit portfolio
management
Better track past due
loans and forecast
defaults
Improve riskbased pricing
and capital
allocation
Slice and dice credit
portfolio to identify
areas of risk
concentration
Decrease
reputation risk
High-light outliers
Shared & Trusted Platform
Qlikview – Illustrative Architecture for Risk & CCR
rd
Including bi-directional integration with 3 party risk calculation engines
Filtered analysis
Qlikview Risk
Dashboards
Session
What-if
Session
Scenarios
Optional:
‘W hat-if’
scenarios
(custom UI)
Risk
Calc
Engine
Committed
Scenarios
Custom /
3r d Party Data
Publisher
Hosted QV
Apps
QlikView
Credit
Bureaus
Credit
Bureaus
Internal Data
Credit
Score
Trading
data
Lance Tay
Risk data-mart /
warehouse (optional)
Loan data
GL data
Market
data
Calculated
data
Other data
(.xls, etc)
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16. 21 November 2o13
Typical BI Approach in Banks – Too Com plex, Too Slow
Typical BI Approach in Regional Banks
Manual or No
Consolidation
Country 1
Lance Tay
Country 2
Complexity Times 10n
- Timeliness
- Accuracies
- Completeness
Country n
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17. 21 November 2o13
Qlikview As A Platform Enables Timely Aggregated
Relevant Information At The Right Time.
Global View of Risks
Global Single Customer View
Shared Views !
Country 1
Country 2
Country n
Summary
Lance Tay
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18. 21 November 2o13
QlikView in Risk Management – Global View of Risk
• Risk data discov ery: Business user led risk data exploration
• Risk reporting: Build simple or complex, interactive risk reports
• Ad-hoc analy sis: Create custom reports from scratch
• Risk data aggregation: Lev erage in memory storage to pull together
multiple disparate sources at low lev els of detail
• Mobile consumption: Deploy risk content to iPads, iPhones, Android, etc
• Regulator inquiries: Quickly answer questions and minimize manual efforts
• Search: Locate risk data in structured and unstructured fields
• Association: Find risk data relationships through built in association logic
• Drill down: Identif y trouble spots and drill down to transaction level details
• Drill side-way s: Real-time
For More Information
http://www.qlikview.com/us/explore/s olutions/industries /financial-ser vices/banki ng
Lance Tay
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19. 21 November 2o13
Key Qlikview Contacts
Sharryn Millican – General Manager, Australia & New Zealand
Sharryn.Millican@qlikview.com
+61 409 170 120
Simon Williams - Account Director
Simon.Williams@qlikview.com
+61 414 622 620
Lance T – Head of Financial Services, Asia Pacific & Japan
ay
Lance.tay@qlikview.com
• +65 9737-9971
Lance Tay
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20. 21 November 2o13
Questions & Answers
Legal Disclaimer
This Presentation contains forward-looking statements, including, but not limited to, statements regarding the value
and effectiveness of QlikTech's products, the introduction of product enhancements or additional products and
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© 2013 Qlik Technologies Inc. All rights reserved. QlikTech and QlikView are trademarks or registered trademarks of
Qlik Technologies Inc. or its subsidiaries in the U.S. and other countries. Other company names, product names and
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21. 21 November 2o13
Lance Tay
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