SAP announced on April 13 local time that it plans to launch a new business unit with the support of German investment firm Dediq to tackle the financial services industry (FSI) in earnest. According to SAP CFO Luka Mucic, an SAP brand joint venture with an independent management team with an investment of about $ 600 million from Dediq to expand the FSI space. Start a business. Focus on digital services for the market such as commercial lending, retail banking and transaction banking. Mucic explained that his goal is to launch a “high-speed craft” for FSI that creates agile IT solutions specifically for the financial services industry. “We are confident that we can improve our business by further targeting,” he said at a press conference. “We want to build a stronger portfolio that meets the unique needs of the financial services industry.” We want to create a comprehensive portfolio of FSI solutions on our business technology platform, integrated with a strong backbone such as SAP S / 4HANA. ” The new financial portfolio will be cloud-based and dedicated to FSI as part of the company’s industry cloud portfolio strategy, Mucic said. In the future, it plans to collect all FSI-related SAP personnel in one organization and bundle all FSI products as a cohesive unit. On the investment side, it plans to focus on commercial lending, which already has a strong introduction base, and real estate finance, where digitization of end-to-end processes is of great interest. SAP also explained that products for the retail and transaction banking markets will focus on process standardization and cloud migration. This joint venture requires the approval of antitrust regulators. He also pointed out that SAP has not disclosed the name of the management team or the name of the joint venture for legal reasons, but will bear the SAP brand. The new FSI business unit and SAP will work closely together to enter the market in two stages. After SAP resells the transferred industry portfolio and the FSI business unit goes live, it will sell a broad portfolio and new products on behalf of the business unit. “Management has complete autonomy to determine the direction of the business unit, but will be a strong member of the SAP family,” he said. SAP expects to establish a new FSI department in the second half of 2021. I’m out.