Integrated Banking: Customer Acquisition, Application, Origination, and Onboarding

1. Integrated Banking: Customer Acquisition, Application, Origination, and Onboarding Nafis Hasan Global solution Lead – Oracle Banking Platform Bill Hyman – North America Solution Lead September 29, 2014 Session CON 8963

3. Financial Services Changing – More Competition, Less Control Customers are in Control, they Dictate the Terms of Engagement, Have Higher Expectations of Value and are Less Loyal Channel Innovation and Competitive Process Redesign is Creating Both New Opportunities to Engage and Incremental Cost New Market Entrants and Innovators Competing for Customers and Growth FS Firms are Losing Control of the Message and the Brand

4. Oracle Delivers a Modern Approach to CX Complete Customer Experience Platform Oracle Marketing Oracle Sales Oracle Service Oracle Social Oracle Banking Integrated Customer Experience Foundation Social Network Mobile Analytic KPIs & Dashboards Predictive Analytics Integrations

5. A cc ou n ts ts n cc ou A Banking Landscape is Shifting from Being Product / Accounts Centric to Customer Centric Now, Banks have to be Customer Centric… … as Customer Expectations have Changed Historically, Banking Systems have been Product and Account Centric Choice of channel (anytime / anywhere) Price the relationship Originate the customer, not product Offer a financial solution, not products Single, transparent process across the bank Real-time

6. Banks have to Fundamentally Change the Way they Serve Customers But the demand on them is to be truly customer centric … Historically, banking systems have been product and account centric Customer In Checking Mortgage Credit Card Channel Services Customer Centric Processes Product Out

7. Consistent Cross Channel Customer Engagement Insight Targeting Engage Sell Originate Service • 7

8. Manages Complete Customer Onboarding Process Customer Experience Originations Perform Prospecting Needs Assessment Manage Applications StructureOffer ExecuteOffer Monitor and Manage Oracle CX Sales Cloud | Seibel | Policy Automation | Real-time Decisions Oracle Banking Banking Platform | BPM Suite | Human Workflow |Documaker

9. Enables Progressive Transformation Journey Interim states drive incremental benefits Near Term Customer Centric Originations Foundation Services Customer MDM Reference Process Model 49 Origination specific business processes providing end-to-end scope Consolidated view of customer mastered across systems Workflow Product Catalog & Bundling Configurable workflows for executing origination related activities Contains all the product offers and bundles supported through origination Work-list Rules Engine CCO Business rules driving and enforcing the parameters of the origination process Manages the tasks required to complete the origination process Alerts Document Management Sends notifications to the customer and internal staff on the status of the origination Electronic repository of all relevant documentation Documaker Security IDM Externalized security for access management Generate customer facing documents

10. Enables Progressive Transformation Journey Cont’d. Interim states drive incremental benefits Near Term Bundled Origination Customer Centric Originations Deposits Loans Overdraft Others Checking Unsecured Line of Credit Credit Card Savings Auto Overdraft Multi OptionFacility Term Deposits Mortgage … Insurance(Linked to Secured Loans) Business Secured … … …

11. Enables Progressive Transformation Journey Interim states drive incremental benefits Near Term Coexist Customer Centric Originations Product Processors • Deposits • Loans • Credit Cards • Mortgages External Interfaces • Decisioning • Fraud Detection • Behavioral Scoring • Credit Bureau • Address Verification • Serviceability Calculations • Fulfillment • KYC Optional Enterprise Modules Relationship Pricing Limits & Collateral Management Dynamic pricing based on the customer’s total relationship including bundles Manage limits and exposures at the relationship level instead of by product

12. Enables Progressive Transformation Journey Interim States Drive Incremental Benefits TODAY NEAR TERM Credit Cards Deposits Commercial Lending Mortgage CCO CIF Consumer Loan Disparate Systems of Record Coexist • Multiple SORs with limited dependencies and disparate pricing policies • Lack of single, consolidated customer views • Redundancies and duplicate processes • Leveraging OBP enterprise web services (EWS) to simplify core • Enhancing core banking functionality • Smaller, digestible projects with positive returns on investment • Reducing core application complexity to simplify the bank

13. Oracle’s solution delivers significant business benefits to customer and account origination in an accelerated and strategic manner Multi-channel experience • Progressively capture customer information, documents collection and credit decision for better customer interaction and experience • Complete reuse of customer information and relevant documents • Deliver Cross-Channel Common Origination experience. Customers can use the channel of choice • Straight Through Processing to reduce operational cost. • Opportunity to create common back office across brands • Deliver better insight and benchmarking into operational performance & KPIs • Enable Relationship Pricing Multi-entity, Multi-brand Multiple / bundled products Customer-centric Standardised Processes Straight-through processing Integrated stack – Efficiency, Quality, Service

14. Banker Customer IT Credit Policy LOB Owner Operations Oracle’s Customer-Centric Origination Platform is designed to uplift customer and banker experience, increase productivity and efficiency • Improve Efficiency, Reduce Cost • Streamline process steps and maximize automation to deliver productivity savings in front office origination and middle/back office fulfillment processes • Simplify, Simplify, Simplify • Rationalize the typical “patch-work quilt” of IT applications and vendors across the origination/fulfillment space, reduce overall IT complexity and cost of technology ownership • Keep the Bank Safe • Reduce loan losses arising from approvals outside of delegated lending authority or outside of bank policy • Attack the Market • Enable new business acquisition channels (e.g. broker originated products, new brands, white-labeling of products for 3rd parties, expansion into new geographies) on a single platform • Sell More, Sell Faster • Remove process barriers to origination of multiple products, making it easy for front-line staff to address additional opportunities • Reduced Time to “YES” • Reduce/eliminate paper from the origination/fulfillment process, with all documents produced, dispatched and stored electronically

15. Case Study Full Domestic Retail Transformation Facts & Figures Strategy • Global Top 50 Bank, headquartered in Melbourne, Australia • Commercial Bank, with Retail Banking operations in Australia, New Zealand, the UK, US and international offices in Asia • Initially launched a “greenfield” direct banking business, UBank, to build deposits & reduce reliance on wholesale funding • Initial roll out of the platform into NAB’s Australian Retail franchise is Customer Centric Origination • Most transformational project currently being undertaken in Banking, in any market • Annual cost savings of approximately $800M expected by the end of the year program • Initially launched a “greenfield” direct banking business, UBank, to build deposits & reduce reliance on wholesale funding • Initial roll out of the platform into NAB’s Australian Retail franchise is Customer Centric Origination • Most transformational project currently being undertaken in Banking, in any market • Annual cost savings of approximately $800M expected by the end of the year program Source: NAB Annual Review 2012

16. Oracle Banking Platform – National Australia Bank Global Top 50 bank, 750+ Billion Dollars in Assets Background and Customer Needs Benefits • “Clean-sheet” business re-engineering to fundamentally remove complexity and drive step-change in business efficiency • Remove the business and IT constraints to being an agile and innovative competitor • Enable growth strategies (multi-brand distribution and bank/wealth integration), deepen customer relationships and grow revenues • Significantly improve both the customer and banker experience making it easy for customers to do business • Transform technology from a “builder/integrator” to a “consumer” of leading vendor’s capability; in so doing, address significant obsolescence risks across the IT architecture • Deploy the solution across the enterprise without replacing existing legacy processing platforms

17. Origination Demonstration