Alchemist – The Software for Norkom’s Solutions

1. Alchemist – The Software for Norkom’s Solutions

2. What is Alchemist? Multiple Delivery Channels Information Dissemination: Deliver Intelligence & Information where & when it is needed Notification Technologie Apply Intelligence Algorithms for caching and optimising data harvesting Enterprise and Legacy data

3. Alchemist Design Principles • Modular in design and roll-out options • Robust & Open Technology Platform • Real-time and batch transaction monitoring • User-friendly, easy to use • Based on Web-enabled technology

4. Alchemist CRM Intelligent Marketing Automation

5. Dealers / Competition Media Above the line Below the line In-bound Out-bound Internal External Web / Email SMS WAP Billing Direct Mail Customer Care Service Centres Message Delivery Opportunity Detection Business Rule Application Analysis Creative Management By Intelligence Predictive Internal Message Management & Notification Internal & External Intelligence Gathering i2i hub Descriptive Brand External RoI Market Customer Channel Proposition definition & authorisation Product DOL WAP FoneCover SMS SpeakEasy Personal Business Handset Product & Service Design & Provision Norkom’s View of CRM

6. Dealers / Competition Media Above the line Below the line In-bound Out-bound Internal External Web / Email SMS WAP Billing Direct Mail Customer Care Digifone Centres Message Delivery Opportunity Detection Business Rule Application Analysis Creative Management By Intelligence i2i hub Predictive Internal Message Management & Notification Internal & External Intelligence Gathering Descriptive Brand External RoI Market Customer Channel Proposition definition & authorisation Product Product & Service Design & Provision DOL WAP FoneCover SMS SpeakEasy Personal Business Handset Where is Value Added and When? Provide a consistent message accross channels Propose the right product @ rigth time @ the right customer/prospect Identify new Value propositions based on enriched customer/prospects knowledge and market profiles Full Leverage requires ability to drive product/services design according to findings Learn from experience and drive Business process

7. Analysis and Customer Lifecycle Profitability Churn Cross- Sell Fraud Promotion Winback Customer Relationship Management - Micro Credit Scoring Account Application Rate Enquiry Monthly Statement Usage Complaint Upgrade Exit Customer Management Customer entry Customer Exit Competitor Promotion New Home New Job Marriage Children Retirement Competitor Promotion

8. Functional Architecture

9. Alchemist Intelligence

10. DESCRIPTIVE Alchemist offers a comprehensive range of descriptive techniques including: Association Rules Kohonen Neural Network K-means Decision Trees – eg C4.5 (This can be viewed as both a descriptive and predictive technique) Data audit tools PREDICTIVE Alchemist’s strong portfolio of predictive techniques includes: Robust Regression Naïve Bayes Back Propagation Neural Network Decision Trees eg. C4.5 Alchemist Intelligence Workbench FeaturesData Mining Suite

11. Predictive Modelling Outputs of a Predictive Exercise • Scored list • Model Contributions • Individual Contributions T O’Reilly Ltd: Score = 0.9 from turnover=high and ave_contract_class=C AR Building contractors Ltd: Score = 0.9 from turnover=low and ave_contract_class=R

12. Location Complaints Letters Call Centre Campaign Interaction Information No. Contacts Dealer Inbound First/Last Contact Outbound Use of information you have (today and in the future) Billing No. of dropped No. of calls Tenure Dealer No. Premium Rate No. of Intl Usage Information Customer Information Dependants Intelligence Workbench No. of SMS Occup Price Plan Insurance Corporate Handset Dealer Product Information Upgrades Roaming Discount Pre/Post supplemental

13. Alchemist Marketing Automation

14. Marketing Automation • The Automation of the marketing task of managing intelligent contact with Customers • Closed Loop from Customer data through Modelling and Insight to Customer Contact • Customer Intelligence Capability: Modelling, Profiling & Model Management • Campaign Management: Batch, Event Driven and Real-Time contact with customers through all channels (Phone, DM, E-Mail, Call Centre etc.)

15. Benefits of Marketing Automation Drive up response rates to campaigns • Timely and relevant customer offerings • Intelligence driven customer contact strategy • Easy selection of the right customer for right campaign • Better models driven by central contact and response repository • Optimise message and channel selection • Run 100 focused campaigns not 10 broad-brush campaigns Drive down the cost of acquisition and conversion • Capture and report on campaign effectiveness • Optimal re-use of effective campaigns (learn by doing) • Reduce waste by contacting only ‘good’ prospects

16. Alchemist Marketing Automation Features • Campaign Definition • Automatic customer list generation based on business theme being addressed (e.g. Cross-sell) taking into account • volumes, profiles, campaign content and channel • Automatic Campaign Execution • Execute across multi-channel environment while: • Achieving channel optimisation • Include necessary authorisation logic • Automatic Campaign Reporting • Review predicted vs. actual campaign performance • Understand customer to channel preference • Build product to customer profile by channel learning from previous campaigns

17. Call Centre Direct Sales Channel Broker / Correspondent Channel Direct Marketing Web mCommerce - PDA, SMS, WAP, Pagers Operational CRM Platform Enterprise Automated Marketing Platform Predictive Applications Intelligent Information Workflow Campaign Management Credit Risk Prepayment Risk Customer Retention Cross-Sell Life-time Value Customer Acquisition Channel Optimisation Critical Business Issues Demographic/ Marketing Databases Customer and Third Party Information Other Data Sources - House Price Indices - Pricing & Credit Data Customer Database - Mortgage Servicing Database - Retail Bank Database - Origination Database - Marketing Database - Solimar/Base100 - DataQuick - CSW - Equifax - MRAC - TRW - MIC - Experian - Acxiom InfoBase - MITI

18. Alchemist Risk & Fraud Management

19. Integrated Solution for Financial Crime • Alchemist for AML modules for • Case Management • Scenario detection engine • Customer Profiling engine • Advanced Name matching with prepopulated data dictionary and language rules • List management • Reporting and audit • Security and user administration • Real time and batch operation • Standard Interfaces • Automated 3rd party list integration • E.g. World Check • Provision of World Check list of PEP’s and Sanction lists etc.

20. ! Alchemist Configuration Watch Lists OFAC, BOE EU World-Check etc Manual Reporting Dashboard FIU Email & Fax • Business Rules • Unusualness Tests • Predictive Modelling • Network Analysis Compliance Workflow Source Transactions & Data Alchemist Data Model Analysis & Reporting • Watch List Monitoring • Watch List Rules The Alchemist HUB

21. Alchemist Fraud Functional Architecture Alchemist AML Analysis & Reporting Case Management Name Matching Portal Knowledge Base Profiling & Segmentation Engine Intelligent Agents Alerts & Notification Rules Engine

22. Alchemist Name Matching • Data dictionary per country • Multiple character sets • Consolidated list management • From multiple sources • Sanction lists + PEP’s • External and internal lists • Automated list update and refresh • Fuzzy logic search capability • Support for multiple jurisdictions • Flexible audit and reporting capability • Integration with Alchemist Case Development, Workflow and reporting

23. Search & Matching Ability • peoples names • account or compound names • delivery or postal addresses • additional attributes • Covered by Population Rules • Covered by Language Rules • Covered by Character set Rules regardless of spelling variation, phonetics, abbreviation, nicknames, missing or extra words, word sequence variation or data quality …. with controllableperformance and response times

24. Rules Engine • Detailed Rules – insurance, banking, investments • Flexible • Detect unusual behaviour for accounts and accounts in segments • Robust, scalable • Rules maintained by MLRO, not IT, easy to use • Operate automatically Rule Triggers Account Transaction Profiles Suspicious Cases Early policy cancellation in unusual circumstances Cash Deposit, many ATM withdrawals

25. Case Management • Rules that are triggered or predictions above thresholds create suspicious customer records. • Detailed customer profile and transaction history sourced • Several states: • Triggered, Monitored, Reported, Clear, Investigation • All cases are prioritised by further rules: • Historical activity/cases • Severity of rule Predictions • Full audit trail and security Automatic Prioritisation

26. Segmentation and Risk Scoring • Based on continuing behaviour, behavoural profile models are built/rescored for each account, trading house and/or company • Notification of ‘Unusual’ account / trading behavour • Client behavioural clustering / movement • Increase in business knowledge (client, house, market) • Early indication of equity trading outside ‘normal’ price bands • Based on historical records, predictive models for each segment are built • Propensity to exhibit market abuse activity scores created for each account • Allow for stastical tuning of business rules

27. Fraud Modules • Card Fraud • Debit Cards • Credit Cards • Skimming • Kiting • Devices • Branch Fraud • e-Banking Fraud • Identity Theft • Access Behaviour • Device Analytics • Tax Fraud • VAT Fraud • Insider trading • Market Timing • Loan Application Fraud • Loss recovery • Internal Fraud

28. Business Intelligence and Performance Management

29. What are we trying to achieve? We want to put in place an environment that facilitates proactive, strategic,business decisions at the appropriate level within Banks abd Telco’s by exploiting thedata contained intheir InformationSystems BalancedScore Card CustomerReport Card CrossFunctional Analysis INTELLIGENCE On-Line Analytical Processing INFORMATION Subject Area Databases Customer Segmentation Micro-Marketing On-Line Transactional Processing DATA Sales External Customer Data Marketing Engineering…… Financial Data

30. Event-based Reporting / Decisioning Portal & KPIs • Personalised • Digital Dashboard • Dedicated KPI Module Analysis & Reporting Alchemist Rules Engine • Executive Alerting • Survey distribution • Survey Collection • Alert Escalation Balanced Scorecard Datamart • End-user Query • Production Reporting • OLAP Analysis Alchemist Agents Alchemist Intelligence • Simulated Business Modelling • “What-If” Analysis • Forecasting • Data Collection • Transformation • Data Loading

31. Visualisation

33. An example showing some chart type variations

34. Example of an Architecture

35. System Architecture

36. Technology Technology Options Technology Options Web Server IIS, Sun ONE, Oracle 9I AS Apache, Websphere, Weblogic AML Application server Apache Tomcat, Websphere, Weblogic, Sun ONE, Oracle 9I AS AML Database Oracle, DB2, SQLServer, Teradata, any JDBC compliant relational database Operating system SUN 2.6, 2.7 .28, IBM AIX 4.3 & 5.1, HP 11 & 11i, Microsoft 2000, NT 4 Client platforms Standard Win98, WinNT, Windows 2000, Win XP desktop, IE5.5

37. Alchemist standard options • Supported Hardware • Supported Operating Systems • Supported Databases

38. Centralised AML Server Group Network Centralised Data Warehouse Web Server Operational Systems External Data Hub based approach