SAP for Banking Discussions
Join the conversation about navigating compliance, enhancing customer experience, and driving growth in the banking industry with SAP.
cancel
Turn on suggestions
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
Showing results for 
Search instead for 
Did you mean: 

ERP adoption in Banking and Capital Markets vertical

Former Member

‎02-16-2015 8:54 AM

0 Kudos

Many sectors have adopted ERP, however BFSI sector is slow to respond to ERP applications like SAP and Oracle, why?

Given that SAP Banking and Capital Markets applications are not only powerful and complete, but also cheaper in the long run, why do Banking and Capital Market firms prefer to build applications in house and "reinvent the wheel"

1 REPLY 1

Venkat_Sesha
Advisor
Advisor

‎05-11-2015 8:06 AM

0 Kudos

Hi Surman,

ERP is used for several things.
It depends on the complete Banking solution what has been opted for. for example if you have SAP Banking Services implemented, then you use ERP for FS-CD(FICAX) Financial Services Collection and Disbursement/ Financial Services Cost Accounting. Basically SAP BS is used for Products like what kind of accounts you are going to have in your branch for the customer for example Home Loans, Car Loans, Savings / Cheque Accounts etc etc. and we define all rules and regulations for each product in the SAP BS.

However ERP is used for Money movement and Payment Engines the actual payments like Debit and Credit from one account to another account, do the Clearing Bureau and Payment Runs etc. while the SAP CRM is the master for Customer related stuff like BP, Marketing Segment, Services etc..

That is the reason why when you have SAP Banking, you actually go for ERP to make your banking flexible with more options to the customer and as well as to the bank itself to handle the payments with the third party systems.

Hope this information is helpful.