SAP has announced that it is starting a new business unit aimed at customers in the financial industry. To set this up, the company will receive an investment of over 500 million euros from Dediq.
The efforts should lead to a joint venture with an independent management team. The whole thing should fall under the SAP brand and focus on the Financial Services Industry (FSI). Specifically, the company mentions commercial lending, retail and transactional banking. Insurance services should also be able to use the services of the new unit.
“Through partnering with Dediq, we will significantly increase our support for the digital transformation of customers in the Financial Services Industry and deliver innovative cloud solutions at an accelerated pace that help them transform their business holistically,” said Christian Klein, CEO, SAP SE. “Financial services is a key industry for SAP, and today we not only reiterate but also reinforce our commitment to this market.”
In its announcement of the unit, SAP boasts of its previous successes in the FSI market. According to the company, more than 80 percent of the thousand largest banks and insurers are SAP customers. With the new branch, the company wants to offer customised solutions for customers that can cover the entire processes of banks and insurers. Naturally, the services will run on the SAP Business Technology Platform in the cloud. Technologies such as SAP HANA and S/4HANA will also be used.
“The FSI market offers a huge opportunity for us,” said Luka Mucic, Member of the Executive Board, SAP SE. “To unleash this potential, we will use our unique capability to provide enterprise-grade solutions. Jointly, we will extend our existing FSI portfolio to cover banking and insurance processes end to end. Helping our customers to become more agile through digital business innovation and cloud technology will be front and center for our new FSI Unit. The new unit will be very flexible and customer-centric with full autonomy to set its strategic direction. At the same time, it will be a strong member of the SAP family. Customers will benefit from SAP’s leading technology and the FSI Unit’s agility and focus on their specific needs.”
The new unit is still subject to approval by competition authorities. SAP expects the branch to be fully up and running in the second half.