Africa's biggest lender by assets, our client is one of South Africa's largest financial services groups, operating in 20 countries across the continent and other key markets worldwide.
The Challenge
Current legacy system prevented the bank from harnessing key SAP Core Banking capabilities
The bank wanted to replace their legacy system to take advantage of SAP’s Core Banking capabilities for their transactional products and services.
However, the bank’s existing relationship-based pricing model, which is different from the concession pricing model, needed to be an existing feature in their SAP solution. Therefore, in addition to the SAP implementation and configuration, our client needed a solution capable of handling their specific pricing and billing scenarios.
The bank needed SAP to move from a centralized, uniform standard pricing structure to support a more client-centric approach, accommodating individualized pricing needs and prioritizing account-specific pricing while maintaining efficient pricing management processes.
The Objective
Update legacy systems to SAP while maintaining the diverse pricing and billing needs of the bank's customers
- Develop and implement a feature within SAP that enables customers to request concessional pricing on fees based on their specific requirements and relationships with the bank
- Successfully integrate peripheral systems with SAP to create a cohesive and unified platform for relationship-based pricing functionality
- Ensure that the pricing solution aligns with the strategic objective of relationship-based pricing, allowing the bank to offer tailored pricing structures to meet the unique needs of each customer
The Solution
Implement SAP and extend its capabilities to manage the bank’s unique relationship-based pricing model
The SAP team at HCLTech began assessing SAP’s built-in features and the bank’s unique pricing needs. The assessment focused on existing functionalities and how to facilitate future integration with SAP. The team also conducted a thorough data analysis of the bank’s various fees and requirements unique to their customer experience.
This solution aimed to enhance fee management and reporting within the banking system, improving customer experience and operational efficiency. Initially tailored to serve the small enterprise market segment, it has the potential for future extensions to other market segments.
HCLTech played a pivotal role in developing key features:
- Elevated customer experience through the customization of fee structures to align with customer behavior, thereby promoting transparency and a better customer experience
- New product offerings, including the Start-up Business Account, Flexible Savings and Transactional Account, are meticulously tailored to align with the distinct needs and preferences of customers within the framework of SAP Banking Services
The Impact
Improved customer experience and cost optimization positively impact revenue growth
The impact of the SAP implementation and added functionality to support diverse pricing models helped our client improve cost management, enhance customer satisfaction and extend strategic decision-making.
- Cost optimization: Data analysis allowed for thoroughly examining monthly fees. By identifying inefficiency or unnecessary expense areas, the company can now optimize its fee structures and reduce operational costs.
- Customer experience: Tailoring fee structures to suit customer needs and behaviors provided transparency, leading to higher satisfaction and loyalty.
- Revenue growth: Understanding the as-is functionalities and aligning them with SAP enabled new revenue streams, cross-selling opportunities and innovative fee models.
- Operational efficiency: By effectively harnessing SAP's capabilities, the bank automated processes, reduced manual intervention and improved fee management and reporting efficiency.
- Data-driven decision-making: Generating reports on fee structures and market segments provided valuable insights, empowering the company to make data-driven decisions regarding fee adjustments, product offerings and market expansion strategies.
- Product development: By analyzing fees associated with various products, the bank can refine existing products and create new ones tailored to customer needs and preferences.
