S/4 Transactional Banking (S/4TRBK) from SAP Fioneer is a newly released version of Banking Services 9.0. An open Core Banking platform based on an architecture that ensures real-time processing and continuous availability for financial institutions. It offers a wide range of functions for retail and corporate banks on a micro to enterprise level.
The new landscape enables Central Business Partners across the different applications to create unique profiles which can be used to uncover unseen customer insights by combining analytical and transactional data, and provide personalised offers with a lesser data footprint. It supports accelerating business and efficiency by taking advantage of next generation processing and leveraging new developments such as intelligent enterprise capabilities. Not forgetting, a state-of-the-art user experience and award-winning user interfaces.
While it shares many components with its predecessor, specific S/4TRBK experience is scarce in the market. Outside of the experience held by SAP Fioneer, bancon are one of the only partners to have significant exposure. bancon has been working on S/4TRBK since its foundation, helping SAP to deliver its standard roadmap and codebase – as with earlier versions of SAP Banking Services.
S/4 Transactional Banking is for financial institutions who want to make technology the strategic backbone of their business. The new Intelligent Suite and digital platform for Core Banking runs on S/4HANA providing faster innovation, seamless API integration with SAP Cloud Platform and Open Banking, improvement to online payment processes and back-office processes, while also facilitating customer journey mapping so banks can suggest products and services based on behavioural triggers. Running on an intelligent SAP Transactional Banking suite, opens up new insights that can allow for more relevant customer experiences, while reducing risk through more informed data-driven decisions.
The main difference between the two is the platform in which it sits; S/4HANA, which provides further deployment options like single stack deployment S/4HANA Finance and S/4HANA TRBK running on a single NetWeaver stack, among other benefits or managed services via SAP Fioneer’s Cloud4Banking proposition.
While S/4HANA TRBK shares many enterprise grade features of its predecessor, SAP Banking Service 9.0, it has been significantly enhanced through its move to the S/4HANA platform which allows for;
The most common misconception we’re seeing is when it’s simply considered as an upgrade of the software components, where the processes and products remain the same. Without consideration to the broader business growth strategy, deployment possibilities and the evolution to a digital customer-centric organisation becomes limited and doesn’t allow for full potential.
Even if it is possible to convert a legacy Core Banking solution like Banking Services 8 or 9 (its predecessor) to S/4TRBK while keeping the same business functionality, it would mean investing considerable resource on improving the tech stack without really generating the greatest ROI from it.
The transition to S/4TRBK should not be evaluated based on the price associated with the technical transition but on what that investment will do for new business, accelerating product innovation, streamlining back-office processes, having flexible deployment options and automated processes with best-in-class user experience.
We are seeing a hesitation from financial institutions to be the first to make the change and having no case studies to support the transformation. There are two ways to look at this; take the leap with the support of the expert team at bancon and capitalise on market share before your competitors do, or delay the decision of what will be an inevitable transition when SAP Fioneer discontinue the support for SAP Core Banking.
In order for banks to survive and thrive in today’s world, the experiences they offer must mirror those of the tech giants, who are allowing consumers to shop, watch and stream anywhere at any time.
New standards in customer experience are forever being set, while the banking industry lags behind with complex customer journeys due to outdated back-office processes. As new banking disrupters enter the market with a digital first mindset, the more traditional financial institutions lose market share and crucially, hundreds of years of customer trust becomes eradicated almost overnight.
In today’s world, consumers want access to instant-loans so dreamy vacations can be paid for in instalments, they want tailored offers based on past purchases and for credit card or premium banking applications to be accepted without having to manually fill in forms containing information the bank already has.
However, a mere aesthetic revamp is not enough. If banks are serious about wanting to transform for the future, they must look at a strategic structural reshaping and digitalising of legacy products. The industry must adapt to cultural shifts in consumer behaviour and expectations which cannot be performed with isolated digital initiatives or without sufficient technological infrastructure such as S/4 Transactional Banking.
Our key learnings are taken from our experience in delivering S/4TRBK transition assessments, traditional S/4HANA transitions and upgrades of predecessor SAP Banking Services.
Clients can expect a 3-step approach; transition assessment, transition planning and transition execution. What you can expect at each stage:
Step-1: Transition assessment workshops to understand your strategic priorities and business requirements and for us to advise on the best S/4 transition approach (System Conversion, Greenfield Migration or Selective Data Transition). This includes a full technical and functional analysis of the current system to analyse deployment options. From the assessment, we’ll be able to identify the key findings in terms of critical success factors that could impact the move to SAP S/4HANA for example, highlight custom code that is now supported by standard S/4TRBK functionality, or is partially supported and therefore requires the process to be redefined.
Step-2: Transition planning to convey a S/4TRBK migration strategy by leveraging the assessment findings and any roadmap developments, to create an overall project plan for the transition journey and target landscape architecture. This will include a project with documented milestones, skillset(s) required throughout the program, toolset and/or accelerators required and determine the involvement needed from the financial institutions core team.
Step-3: Transition execution, enacting against the plan defined in the transition planning stage. Whether this is an end-2-end delivery, advisory and/or ad-hoc support, together we will work to deliver the S/4TRBK migration.
bancon have supported over 75 banking partners worldwide with their core banking requirements and implementing S/4 Transactional Banking or earlier SAP Banking Services. Our global reach enables us to advise on best practices from around the world, apply our wider experience to help deliver market first implementations, connect clients to share knowledge and provide critical insight into lessons learnt from previous projects.
We differentiate ourselves through our close partnership with SAP and SAP Fioneer built over many years of joint projects. Our co-founders and early employees formed the original group of developers and architects of the foundational SAP Banking platform. This personal connection gives us unique access, understanding and foresight on the product set and stakeholders thinking. Since SAP Fioneer’s foundation, bancon Group have been an essential enablement partner globally which has allowed us to increase connectivity between client and OEM, gain a deeper insight into SAP Fioneer’s roadmap and most importantly meet clients’ ambitions as one team.
We have a full suite of bTools that provide ‘‘out-of-the-Box’’ S/4HANA Transactional Banking templates to accelerate all stages of an S/4TRBK migrations. These, coupled with executing multiple S/4TRBK assessments together with SAP Fioneer & SAP and enabling them to deliver their S/4TRBK development roadmap, enables us to uncover the unknowns when undergoing an S/4HANA migration.
If you’d like to chat to us in more detail about an S/4TRBK transformation project, get in touch.