Finnova Banking Software End-To-End, Efficient, Open, Innovative 3

FINNOVA BANKING SOFTWARE END-TO-END, EFFICIENT, OPEN, INNOVATIVE 3

Table of contents

Finnova at a glance 4

Smarter Banking 6

Finnova Banking Software’s winning formula 8

Value proposition for our customers 10

Finnova Banking Software at a glance 12

Further development of the Finnova Banking Software 20

Services 24

Finnova Channel Suite 28

Finnova Front Suite 34

Finnova Management Suite 40

Finnova Expert Suite 44

Finnova Solution Suite 58

Licence and price model 62

Lenzburg, September 2017 4

FINNOVA AT A GLANCE

Finnova is a leading provider of banking software in the Swiss financial centre. We help banks and outsourcing providers to realise growth in the banking sector, even in chal- lenging times, thanks to efficient and innovative IT solutions compliant with regulatory requirements. ‘Smarter banking’ with Finnova – that is what we stand for. And that is why over 100 banks have already put their trust in us.

Finnova was founded in 1974 and now employs around 400 people at its headquarters in Lenzburg and at branch offices in Chur, Seewen and Nyon. With the Finnova Banking Software, around 80 universal and 20 private banks benefit from the attractive total cost of ownership (TCO) of this very high-per- Today, more than 100 universal and private banks from Switzer- formance, reliable standard solution, which can be used front- land and Liechtenstein are among our customers. We have to-back for various business models thanks to its wide range evolved to become one of the leading banking software manu- of functions. facturers in the Swiss financial centre. The Finnova platform is open to software solutions developed by banks or third parties such as fintechs, so that banks Our future can set themselves apart on the market in this period of digi- It is our ambition for the future to establish Finnova software talisation. Finnova also offers complete flexibility in choosing solutions as the leading reference for end-to-end banking in From left to right: Hendrik Lang, Daniel Bernasconi, Charlie Matter, Simon Kauth, Markus Metzger, Jörg Steinemann the most appropriate operating model for the bank, whether in- our target markets. We want to enable banks, operating part- dividual installation, multi-tenant installation or BPO services, ners and selective intermediaries, together with third-party supported by selected operating partners. With accompanying providers, to look upon digitalisation, industrialisation and reg- services, we offer support for the Finnova Banking Software, ulation as an opportunity and to successfully position them- from analysis and advisory to training, operation and support. selves in the new era of banking. We focus our efforts on our Our organisation roughly 100 existing customers. Finnova is a limited company under Swiss law. Various stakeholder groups are represented in Our roots We wish to selectively gain further banks for the Finnova our shareholder base, in which all owners have a long-term commitment and share the com- Our success story began in 1974 with the development of Community in Switzerland and Liechtenstein, particularly in pany vision. This makes us a reliable partner. The majority shareholder of finnova AG Bank- the ‘FIS’ software. In the early eighties, various banks joined the private banking sector. ware is the German IT consulting and system integration company msg systems ag. As part forces in the FIS user bank pool. From this organisation, finis We are investing heavily in our product and services port- of the msg group, we have access to this globally designed network that includes over 6000 AG for banking software emerged in 1999. It developed an folios in order to bring innovative solutions to market at the experts and offers strategic consulting as well as value-adding IT solutions. In addition, a total integrated modular solution for universal and private banks. right time, be it in the form of Finnova developments or to- of seven customer banks, the strategic partner Swisscom and the management have a share In autumn 2003, this mission was accomplished and finis be- gether with partners. in finnova AG Bankware. This balanced structure, which is also reflected in the Board of Di- came Finnova AG, which concentrated on the further devel- rectors, incorporates the interests of the most important stakeholder groups. Our solidity can opment and marketing of its standard solution, the Finnova be seen in our 100% self-financing level. Banking Software. Only a few months later, the first banks All shareholder groups are represented in Finnova AG’s Board of Directors. Hans Zehet- opted for the new Finnova solution. In summer 2005, the par- maier, founder and CEO of msg systems ag, has been its president since 2015. The Execu- allel operation of several banks on one single installation in a tive Board comprises CEO Charlie Matter, who has been leading Finnova AG since 1999, and so-called multi-tenant tower was realised, which enabled fur- the heads of the five business units. Our Executive Board members have many years of ex- ther efficiency gains. perience in the IT and financial sector. Some of them have held leading positions at internationally active companies. 6 7

SMARTER BANKING

In the future, successful business models in banking will be determined more than ever by the intelligent use of technology. Growing cost pressure resulting from the erosion of margins, the digitalisation of banking and increasing compliance requirements are driv- ing forces here. In this interplay, we offer our customers efficient and innovative IT solutions, enabling ‘smarter banking’ with the open Finnova ecosystem.

The single-source banking solution As a whole package, the Finnova Banking Software offers banks a broad range of functions, enabling consistent data storage and processing, up-to-date interaction with clients and comprehensive data analysis. The Finnova Expert Suite is the core element of the Finnova Banking Software. It contains the Systems of Record, which ensures storage of structured and increasingly unstructured data, and this with sharply rising volumes, high speed and increasing process orientation. The data is provided to the Systems of Engagement (Finnova Channel Suite and Front Suite) and the Systems of Insight (Finnova Management Suite). The Sys- tems of Engagement address customer experience, mobility and context-oriented services and information – with the aim of reinforcing client loyalty to the bank and its services. Last but not least, the Systems of Insight provide analyses concerning clients, products and markets as well as in-house procedures – with the aim of continually introducing improvements and innovations and having risks under control at all times. The Finnova Solution Suite enables the opening up of the Finnova Banking Soft- ware not only externally for third-party system, development and service partners, but also internally to ensure the integration of its own applications and suites. This helps create an open ecosystem in which Finnova plays the role of business driver for the Systems of Record while, for the Systems of Engagement and the Systems of Insight, it plays the role of business enabler.

SYSTEMS OF SYSTEMS OF SYSTEMS OF FINNOVA ECOSYSTEM ENGAGEMENT INSIGHT RECORD & DELIVERY

Channel Suite Front Suite Management Suite Expert Suite Solution Suite

FINNOVA AS A FINNOVA AS A BUSINESS ENABLER BUSINESS DRIVER 8 9

Efficiency FINNOVA BANKING SOFTWARE’S Thanks to the broad cost distribution in the largest banking community in Switzerland, the automation and industrialisation made possible by WINNING FORMULA the software, and the flexible operating model, our customer banks obtain a very attractive TCO. This is demonstrated every year with the top positions of our banks in the ranking of Swiss retail banks with the low- With the Finnova Banking Software, around 80 universal and 20 private banks benefit est cost-to-income ratio. Once again, in 2016, nine of the top ten were from the attractive total cost of ownership (TCO) of this very high-performance, reliable Finnova banks.* standard solution, which can be used front-to-back for various business models thanks to its wide range of functions.

Community With 100 banks and over 70 partner companies, the Finnova community is Switzerland’s largest, most diverse banking IT ecosystem. It unites Stability banks with different business models and a wide range of sizes. We ac- Parts of our software have been operating for years in varied tively manage our community via our topic-specific Expert Panels, the constellations of use. It is characterised by the stability that our Advisory Panel at strategic level and the CEO Panel at the top level. The customers highly value, whether for peak loads such as the year- Finnova community offers the banks and partners the opportunity to ac- end processing or for rolling out new functionalities as a result of tively help shape the Finnova Banking Software. It means that we are continuous releasing. always up to date with our customers and partners, and can therefore set the right priorities.

Performance The Finnova Banking Software is a particularly efficient processing plat- Expertise form with high scalability and high STP rates. This makes it possible, for Finnova has broad, in-depth experience of the Finnova Banking Software. example, to run the software on a multi-tenant tower with over 40 banks With us, customers can obtain everything from one source, from busi- or as the backbone of the Swisscom processing centre, via which Zürcher ness analysis and consulting to solution architectures and technology, Kantonalbank processes all of its payment transactions. as well as operation, training and support.

Breadth of functions Flexible operation The Finnova Banking Software covers all essential functions of universal, Whether the software is installed individually, on a multi-tenant tower, retail, private and transaction banks, from core functions such as client or as a BPO service, our customers can choose the operating model master, fees or account balancing, to business processes such as pay- that suits them best, with an operating partner of their choice. In all ment transactions, financing and investments, as well as the Portfolio operating models, they benefit from our continuous releasing process. Management System, the digital workplace for client advisors, and the New software is rolled out incrementally – on a quarterly, or if desired, e-banking, mobile banking and branch client channels. We have devel- monthly basis. Finnova does not have major releases and the associ- oped this breadth of functions over the years for and with our 100 cus- ated project costs. tomer banks. Each bank can configure the software for its own needs using the near-endless parameterisation options. All functions put current regulatory requirements into practice.

*Ranking of Swiss retail banks 2016 2015 Bank CIR Innovations Together with our customers and partners, we drive forward the further 1 1 Banque Cantonale de Fribourg 34.05 % development of the standard solution in the Finnova Community panels. 2 2 AEK Bank 1826 cooperative 40.59 % With the systematic opening up of the Finnova platform to customised 4 10 Schaffhauser Kantonalbank 44.66 % developments and third-party solutions, Finnova supports new business 5 5 Schwyzer Kantonalbank 45.29 % ideas that individual banks want to use to differentiate themselves on 6 11 Appenzeller Kantonalbank 45.54 % the market. This means each bank can decide how it wants to approach 7 3 Banque Cantonale du Valais 45.96 % the digital transformation. Finnova is making significant investments in 8 6 Graubündner Kantonalbank 46.74 % innovation topics such as digitalisation and the opening up of the soft- 9 39 Zuger Kantonalbank 46.77 % ware via the Solution Suite. 10 7 Bank EEK AG 46.80 %

Source: IFZ Retail Banking Study 2016 10 VALUE PROPOSITION FOR OUR CUSTOMERS

A wide spectrum of customer segments can benefit from our Finnova Banking Soft- ware. These are notably universal, retail, private and transaction banks, BPO/BSP providers, but also fintech and development companies.

>> Universal and retail banks >> Transaction banks The focus of universal and retail banks is on increased ef- The most efficient processing possible of payments, se- ficiency and comprehensive functionalities. We support curities, foreign exchange and loans for other banks is the them with our highly automated software, high STP rates core competence of transaction banks. The Finnova Bank- and efficient processes. The Finnova Banking Software ing Software helps them achieve this with maximum scal- standard solution already contains a very broad function- ability, high STP rates and maximum automation. ality for universal and retail banks that can be individually extended, notably through our open partner ecosystem. InCore Bank VZ Depository Bank Clientis banks ESPRIT network Freiburger Kantonalbank >> BPO providers Graubündner Kantonalbank Efficiency in banking is achieved today by breaking down Migros Bank the value chain and outsourcing standard processes to Valiant BPO providers. The Finnova Banking Software is ideally suited as a backbone for the industrialisation of banking processes. In addition, it offers a user platform especially >> Private banks designed for BPO providers, with which processes for sev- The change in private banking with growing compliance eral banks can be handled simultaneously. requirements, margin pressure and changed client needs results in new business models. We offer private banks Finanz-Logistik specific functionalities such as our Portfolio Management Sobaco/InCore Bank System and the digital advisor workplace, as well as the Swisscom possibility of simple connection of best-of-breed third- party solutions, which are already being used in many forms in private banking via FIL Integration Services. Pri- >> Fintech companies and developers vate banks are on the safe side with the rule-compliant The integration solutions of the Solution Suite enable a implementation of regulatory and tax requirements, which systematic connection of various systems to the Finnova is integrated in the software, and the overall TCO is attrac- Banking Software. This means the Finnova platform is an tive. open ecosystem that supports the interaction of various actors such as banks’ own development teams, operat- Lienhardt & Partner Privatbank ing partners, development companies, fintech businesses Mercantil Bank (Switzerland) and BPO partners. It helps Finnova to increase agility in Neue Bank (Liechtenstein) the provision of functionalities and to meet the challenges Privatbank Bellerive resulting from the breakdown of the value chain and the REYL & CIE technological change in banking more quickly.

RSN AG Swisscom WIR Bank

The listed segments are an extract from the customer reference list. 12 13

Management processes FINNOVA BANKING SOFTWARE The effective control of a bank and fulfilment of compliance requirements front to back require clearly defined processes along the value added chain of a bank, as well as consistent AT A GLANCE data storage and aggregation.

>> Bank management The Finnova Banking Software is a comprehensive front-to-back software platform Value creation processes Controlling a bank in a dynamic environment with an ev- for retail, universal and private banks. A consistent process orientation and a modular In times of increasing competitive pressure, banks are required er-increasing number of competitors and in an increas- architecture enable a flexible adaptation and integration of the business functionali- to focus on the market services that create added value for ingly regulated market challenges many banks and their ties required by banks, their clients and BPO providers today. their clients, and for which the clients are therefore willing managers. Management decisions need to be taken on to pay an appropriate price. This means banks can optimise the basis of verifiable facts and in-depth analyses, which their profitability via the added value generated. Banks’ turn- requires a comprehensive, coherent and consistent data over is composed primarily of the following three value cre- and information base. ation processes. >> Compliance >> Payments Increasing compliance requirements on the part of regu- Digitalisation has significantly simplified the basic function lators and authorities also present new challenges for the ‘Payment Transactions’. Nowadays, payments are increas- client–bank relationship. These challenges can be met by ingly made via mobile devices, around the clock. Thanks consistently focusing our software development on the cli- to a consistent optimisation of front-to-back banking pro- ent and thus on the banking needs. Therefore, compliance cesses, it is possible to design simple touchpoints for the is becoming an integral part of the interaction between the client as a way to create a unique client experience. In or- client and the bank. der for this to happen, straight through processing and a high-performance processing engine are also necessary. >> Business process management By consistently aligning bank transactions to the clients’ >> Financing needs, banks are able to create genuine added value for While financing needs were previously addressed mainly their clients. User-centred, effective and flexible process at a regional level, digitalisation has eliminated geograph- management is growing in importance – and with it techni- ical restrictions to a large extent. Banks across Switzer- cal software support in the form of integrated front-to-back land now compete against each other, and as a result of core banking solutions like the Finnova Banking Software. digitalisation, the competition may soon spread to Europe. The importance of fast, cost-efficient and effective front- to-back processing in the lending business is growing, while taking into account regulatory requirements – from client acquisition to an overall view from a management perspective.

>> Investments The complexity of processes in the investment business is also continually increasing. This places higher demands Value Creation Processes on all those involved, from the client to the client advi- Payments sor, through to compliance and back office employees – Financing especially as not only national regulatory authorities and domestic and foreign tax authorities, but also special bi- Investments SUITE

SUITE lateral solutions play their part in this. New and innova- SUITE SUITE SUITE tive technology-based business models challenge conven- Management Processes tional advisory methods. In this context, it is important to Bank Management create added value for the bank clients that can be offset. FRONT EXPERT CHANNEL Compliance SOLUTION Simple implementation and costs play an important role MANAGEMENT for the bank. This places considerable demands on the Business Process Management flexibility of multiple systems such as tracking, valuation, alert, exception handling and reporting, to name but a few. 14 15

The Finnova Banking Software is divided into five user-oriented product suites, which themselves are divided into product groups. Many product groups are already available, notably in the Expert Suite and the Channel Suite, while the other suites are still being developed. The options available today in addition to the standard product and the integration services are presented in this brochure in the associated suite and in the appendix. We inform our customers and partners about the further development of the Finnova Banking Software in the quarterly Finnova Product Update.

FinnovaFINNOVA BANKINGBanking SOFTWSoftwareARE

STRATEGIC FOCUS

Digitalisation Data, Analytics & Compliance Industrialisation, Standardisation Ecosystem

Bank Clients Client Advisors Bank Managers Middle Office, Back Office Selected Third Parties & BPO Experts

CHANNEL SUITE FRONT SUITE MANAGEMENT SUITE EXPERT SUITE SOLUTION SUITE Payments Solution E-Banking Advisor Workbench Financial Accounting Payments Integration Financing Technology Investments Mobile Banking Advisory Apps Finnova Control Financing Integration

Branch & ATM CRM Risk & Compliance Investment Management Bank Management Compliance Independent Regulatory Reporting Investment Investment Advisory Operations Business Process Mgmt. Business Banking Tax

Clients & Products

SERVICES Consulting & Academy Data & Analytics Application Management Support & Quality Assurance

Five suites for ‘smarter banking’ The Finnova Banking Software is divided into five suites addressing the five different stakeholder groups. The Expert Suite is the real backbone of the Finnova Banking Software for achieving high-performance industrialisation and digitalisation and ensuring 24/7 operation of straight through processing (STP) in real time. All other suites tie in with the Expert Suite, for example the client-focused Channel Suite and Front Suite. While the Channel Suite provides a self-service area for bank clients, from mobile banking and e-banking through to ATM self-service features, the Front Suite actively supports the client advisor’s work processes. As its name suggests, the Management Suite constitutes the information and management centre for the bank management. The Solution Suite represents the link between the Finnova Banking Software and customised and third-party solutions. 16 17

>> Finnova Expert Suite The Finnova Expert Suite is the main workplace for the middle and back office as well as for our BPO partners. It is and remains the backbone of the Finnova Banking Soft- ware and comprises the known expert modules. The modular structure of the Finnova Expert Suite covers all modules, from payment transactions, financing, investment and portfolio management to client and advisory modules. Accordingly, the master data storage is located in this central suite of the Finnova Banking Software. >> Finnova Channel Suite Here, for example, the client master, card administration, With the Finnova Channel Suite, we directly focus on the interest rates, fees and charges are integrated. The param- channels to the end clients of the banks. The Channel Suite eterisable process management guarantees the banks an primarily deals with the self-service of banking services. efficient and individual integration. The focal point of the A consistent user experience across the various channels Finnova Expert Suite lies in the quick and comprehensive is paramount for this. processing of all business cases and the unrestricted, role- The Finnova Channel Suite is being expanded on an based access to all data. ongoing basis. We take into account the continuously increasing demands of end clients in mobile banking and >> Finnova Solution Suite e-banking, and support innovations in the area of ATMs. In The Finnova Solution Suite makes the Finnova ecosystem the areas of external asset management and in the repo- more accessible to customers, partners and third-party sitioning of our customer banks in the branch business, providers. It embodies the openness of the Finnova Bank- we also offer attractive solutions which enable banks to ing Software and its solutions. differentiate themselves on the market with modern infor- In times of ever-faster change, innovation and agility mation and communication technologies. are sought-after qualities. In order to be able to better satisfy these needs, the Solution Suite is being designed and >> Finnova Front Suite further developed on an ongoing basis in close cooperation The Finnova Front Suite is the modern workplace for client with key players in the Finnova ecosystem. Operating models advisors and supports them in their daily sales activities. Digitalised and industrialised banking will be possible In times of eroding margins and increased cost pressure, a low total cost of ownership is im- Furthermore, it is the springboard to various advisory tools in the future if solutions can be built and operated to be portant for the competitiveness of banks. For this, the selection of the right and appropriate op- in the areas of loans, investments and pension provision. compatible with XaaS. The Solution Suite product groups erating model of its IT solution plays a central role for the bank. The Finnova model is based on Our vision is to develop the Front Suite into a cornerstone target the different stakeholders in the Finnova ecosystem, an open partner approach. Our customers can choose between different partners and operat- for a consistent omni-channel experience. who all have specific needs and requirements – from cus- ing models. In practice, different operating models and integration of third-party solutions have tomised developments via Solution Integration to quality become established – from individual installations to multi-tenant towers with a parallel oper- >> Finnova Management Suite assurance and high-performance, cost-effective operation. ation of up to 50 banks, from cost-effective standard solutions to the implementation of com- The Finnova Management Suite addresses needs in the plex special requirements with third-party solutions, for example in the private banking sector. areas of integrated bank management, financial and company accounting, risk management, compliance and legal reporting. The Management Suite is thus the comprehensive tool for bank and risk management. It pools analyses and reports and in addition, its functionalities cover the ever-increasing compliance requirements in the banking sector.

Existing multi-tenant towers

SOFTWARE PROVIDER SOFTWARE PROVIDER SOFTWARE PROVIDER SOFTWARE PROVIDER SOFTWARE PROVIDER SOFTWARE PROVIDER FINNOVA FINNOVA FINNOVA FINNOVA FINNOVA FINNOVA LICENCE LICENCE LICENCE LICENCE LICENCE LICENCE

SWISSCOM INCORE RESELLER RESELLER

2 x GKB 5 x SÄNTIS 42 x SWISSCOM 5 x SOBACO 9 x INCORE BANK 16 x ESPRIT FULL - SERVICE BANK

5 x 5 x 5 x

BPO AM ITO BPO AM ITO BPO AM ITO BPO AM ITO BPO AM ITO BPO AM ITO GKB INVENTX INVENTX FOR EACH OTHER FINNOVA ECONIS SWISSCOM SWISSCOM SWISSCOM FINANZ-LOGISTIK SOBACO SOBACO INCORE BANK INVENTX INVENTX FINANZ-LOGISTIK SWISSCOM SWISSCOM 18 19

Technology The technology and architecture stacks on which the Finnova Banking Software is Central features of the new Omega technology, such as based determine the performance, flexibility and operating costs of the software to failover, scaling, isolation of data storage and software distri- a large extent. With the changing requirements of the banking business regarding bution, reduce the complexity of operating, developing and IT solutions, and the latest technological possibilities, the technologies and archi- even integrating customised products, which leads to lower tecture concepts used also need to be continually adapted. Technology is never an operating and project costs. Thanks to the open and independ- end in itself. We strictly follow the principle ‘technology follows business’. Established Gamma technology ent development platform, topics like excellent user experi- The Finnova Expert suite is currently based on the so-called ence or data analytics can be addressed more easily. Technological development of the Finnova Banking Software Gamma technology and architecture stack, which is ideal for Since the beginning of the Finnova Banking Software, the requirements facing meeting the requirements of the backbone of a banking sys- Additional operating models banks have continually developed, as have technological possibilities. In the over tem. We therefore rely on established components, optimised Additional operating models are needed in order to imple- 40-year-long history of Finnova, the technology and architecture stacks underlying for transaction-oriented systems. The most important part is ment customised solutions that differ considerably from a our software have been successfully renewed three times (see figure). We are cur- an Oracle database that covers the complete data storage and single-source approach, especially in the area of front office rently working on the fourth renewal. The new technology is being implemented the business logic. The presentation layer – the UI – is writ- applications. Through the use of modern cluster solutions in parallel with the established technology, in accordance with the two-speed IT ten in Java. As a result of many years of experience and the (OpenShift), a model for the operation of new applications is concept. The established technology is the reliable backbone, and the new tech- very high degree of maturity of the technologies used, we implemented which allows Finnova and the operators to run an nology makes innovation possible. can sustainably reach a high level of stability and throughput, individual solution for each customer – a dedicated infrastruc- which is essential to a core banking system. The application ture is not necessary. These new operating models are also of the technologies has been continually optimised over the based on open-source components like Linux or OpenShift – years so that now even very high volumes of transactions can no proprietary hardware and software needs to be acquired. be processed with high efficiency and stability in the Finnova They are an integral part of the Omega architecture and tech- Expert Suite. Thanks to sophisticated caching and load-bal- nology stacks. Despite a high degree of individualisation, the ancing mechanisms, it is possible for several thousand users TCO remains low thanks to the use of mainstream hardware to use one installation simultaneously without any problems. and licence-free operating systems. With the resulting relief Finnova technology renewals of the transaction-related systems in the Finnova Core, the op- New architectural and technological concepts erating costs can potentially be further reduced in the future. 2015 – … «Omega»: HTML5, cloud technologies, PL/SQL We support banks in implementing digital business models in >> UI – HTML5 >> BL – PL/SQL >> MW – Java, Perl, REST >> DB – Oracle the front office by expanding the Finnova Banking Software, 2008 – … «Gamma»: BOAL, Jure & PL/SQL especially in the suites close to the front end, and by opening up the software with the Solution Suite. Modern, digital >> UI – Java >> BL – PL/SQL >> MW – Java, Perl >> DB – Oracle client experiences present new requirements for design, mo- 2001 – 2017 JAB GUI & PL/SQL bility and intuitive operation. At the same time, the integra- >> UI – Java >> BL – PL/SQL >> MW – Java, Perl >> DB – Oracle tion with the Finnova Expert Suite and a secure and consistent data flow need to be guaranteed. Finnova is addressing >> UI – User Interface 1991 – 2010 Oracle, Uniface these challenges by using a new technology and architecture >> BL – Business Logic >> UI – Uniface Forms >> BL – Uniface, PL/SQL >> MW – Uniface >> DB – Oracle stack, which we call Omega. Omega uses new technological >> MW – Middleware possibilities and concepts, meaning it allows for the imple- 1969 – 2004 FIS-VRX: NEAT/3, high level assembler >> DB – Database mentation of innovative and efficient operating models. With >> UI – VRX >> BL – VRX >> MW – none >> DB – Files the Finnova Integration Layer, new architectural and technological concepts are also used for modular integration in the 1990 2000 2010 2020 Finnova Expert Suite. 20 21 FURTHER DEVELOPMENT OF THE

FINNOVA BANKING SOFTWARE Digitalisation Digitalisation affects all areas of banking, first and foremost the interaction between bank clients and service providers in the provision and improvement of the It is our ambition for the future to establish Finnova software solutions as the lead- digital experience. In B2B too, digital provision of services is spreading, extending ing reference for end-to-end banking in our target markets. We want to enable banks, product ranges and processing. Established business models are under pressure, operating partners and selective intermediaries, together with third-party provid- and banks need to develop strategies to determine which added value they want ers, to look upon digitalisation, industrialisation and regulation as an opportunity and to and can offer their clients in the digitalised world of tomorrow. Every bank has to successfully position themselves in the new era of banking. In 2018–2021, we will a slightly different starting point and needs to define the best way for itself. In the continue to make major investments in our product and service portfolio. The details of coming years, Finnova will focus on supporting customer banks as they implement our development plans are available in the detailed 2018–2021 Roadmap (available in their digitalisation strategies. On the one hand, this will be done through efficient, German and French only). innovative standard products integrated in the core system on theFINNOV bank’sA BANKING client in -SOFTWARE terface (Finnova Channel Suite and Front Suite). On the other hand, it will be based on the simple and fast integration of third-party products or customised developments (Finnova Solution Suite). STRATEGIC FOCUS

Digitalisation Data, Analytics & Compliance Industrialisation, Standardisation Ecosystem

Principles of further product development Data, Analytics & Compliance In the further development of the Finnova Banking Software, we are guided by the With ever-new technological possibilities, banks can obtain a competitive advan- following objectives: tage through the systematic analysis of large quantities of structured and unstruc- >> Our product is the leading stable, flexible and easy-to-model banking software tured data, and the intelligent use of the results. This may take the form of efficient Bank Clients Client Advisors Bank Managers Middle Office, Back Office Selected Third Parties with the best total cost of ownership compared with competitors. implementation of regulatory requirements, full transparency of the bank’s own & BPO Experts >> It is an integrated standard product which is open for the integration of third- transactions, or the aggregation and provisionFINNOV of informationA BANKING SOFTWfor clients.ARE Alongside CHANNEL SUITE FRONT SUITE MANAGEMENT SUITE EXPERT SUITE SOLUTION SUITE party systems and the development of customised solutions (custom develop- the implementation of the various regulatory requirements, FinnovaPayments will continue Solution E-Banking Advisor Workbench Financial Accounting Payments Integration ment) via defined Integration Services. We thereby ensure end-to-end banking to invest in its system of insight, the Finnova Management Suite. WeFinancing are currently Technology and remain flexible so that we can play an active role in the dynamic develop- revising our strategic plans regarding big dataSTRA andTEGIC analytics. FOCUS Investments Mobile Banking Advisory Apps Finnova Control Financing Integration

ments of digitalisation and industrialisation. Digitalisation Data, AnalyticsBranch & ATComplianceM CRMIndustrialisation, StandardisatioRisk & Compliancen EcosystemInvestment Management >> Our product offers customers and BPO providers quantitative and qualitative Bank Management Compliance Independent Regulatory Reporting Investment added value. This is maximised through a carefully selected and actively main- Industrialisation, Standardisation Investment Advisory Operations Business Process Mgmt. tained partner ecosystem. With banks focusing on investment in client-oriented digitalisation projects and Business Banking Tax >> The Finnova Banking Software uses state-of-the-art technology. It supports new, the general cost pressure, the industrialisation of the banking business, along with Clients & Products evolving operating models of the banks and BPO providers and optimally covers the standardisationFINNOV and automationA BANKING ofSOFTW processesARE and outsourcing of sub-processes, is Bank Clients Client Advisors Bank Managers Middle Office, Back Office Selected Third Parties requirements for mobility and a contemporary user experience. becoming increasingly important. In this area, Finnova will continue to invest in the & BPO Experts Expert Suite, to promptly support standardisation initiatives on theSERVICES market, and to Consulting & Academy Data & Analytics Application Management Support & Quality Assurance CHANNEL SUITE FRONT SUITE MANAGEMENT SUITE EXPERT SUITE SOLUTION SUITE enable further automationSTRATEGIC FOCU ofS the banking business. Strategic fields of action Payments Solution E-Banking Advisor Workbench Financial Accounting Payments Integration The strategic hot topics are still the improvement of the digital experience, the use DigitalisationFinancing Data, Analytics & Compliance Industrialisation, Standardisation Ecosystem Technology of information from data analytics and the reduction of operative and compliance Investments Mobile Banking Advisory Apps Finnova Control Financing Integration

costs. With our strategic fields of action, we have defined clear focuses for develop- Ecosystem Branch & ATM CRM Risk & Compliance Investment Management ment in order to support our customers and partners in the new era of banking with The optimal solution architecture in the bankingBank ManagementIT is a symbiosis of an efficient, Compliance Independent Regulatory Reporting Investment an open ecosystem. The efficiency advantages of a standard solution are thereby fully-integrated core system and various tailor-made non-core systemsInvestment Advisory for special Operations Business Process Mgmt. combined with the market differentiation of customised solutions. applications. The core system ensures consistent data storage, offersBusiness a Banking uniform cli- Tax Bank Clients Client Advisors Bank Managers Middle Office, Back Office Selected Third Parties ent experience and enables a low TCO. With the connection of selected non-core & BPO Experts Clients & Products systems, high-quality cutting-edge solutionsCHANNEL SUITE that enableFRONT market SUITE differentiationMANAGEMENT can SUITE EXPERT SUITE SOLUTION SUITE be integrated. In Paymentsthe coming years, Finnova will invest significantly in the expan- Solution E-Banking Advisor Workbench Financial Accounting Payments Integration FINNOVAsion BANKING of the SOFTW SolutionAREFinancing Suite, which will really simplify the opening up of the Finnova SERVICES Consulting & Academy Data & Analytics ApplicationTechnology Management Support & Quality Assurance Banking SoftwareInvestments to third-party systemsMobile Bankingand customisedAdvisory developments. Apps Finnova Finnova Control Financing Integration

Branch & ATM CRM Risk & Compliance Investment will thereby offer its customers an efficient, agile ecosystem with which they can Management Bank Management STRATEGICimplement FOCUS their own needs. Compliance Independent Regulatory Reporting Investment Digitalisation Data, InvestmentAnalytics & AdvisoryCompliance Industrialisation, Standardisation EcosystemOperations Business Process Mgmt. Business Banking Tax

Clients & Products

SERVICES Consulting & Academy Data & Analytics Application Management Support & Quality Assurance Bank Clients Client Advisors Bank Managers Middle Office, Back Office Selected Third Parties & BPO Experts

Clients & Products

SERVICES Consulting & Academy Data & Analytics Application Management Support & Quality Assurance 22

Objectives of the Finnova Banking Software

ECOSYSTEM

E IT U TE S UI N T S O N I O T R U /F M L L O E A S N N N A A G AGEM E H NG E E N M C T

N U O

C S

G R

H E T

E XP ERT SUITE

This image of an open ecosystem for comprehensive end-to-end banking re- Systems of Engagement: Omni-Channel Vision quires consistent data storage and stringent process orchestration. SYSTEMS OF ENGAGEMENT FINNOVA CHANNEL, FRONT & SOLUTION SUITE

3rd Party Expert Suite 3rd Party Mobile Advisor App Market owned App Portal E-Banking Branch ATM Banking Workbench Places Processes Strategic objectives Product Bank- (Execution) With the Finnova Banking Software we want to offer banks Integration specific and operating partners an efficient, stable and flexible platform for modern end-to-end banking. At the heart of the stra- OMNI-CHANNEL PROCESS ORCHESTRATION & INTEGRATION tegic objectives lies the ‘Systems of...’ differentiation. Out Expert Suite has the function of a system of record with fo- On the client front, we will transform the Systems of Engage- SYSTEMS OF RECORD SYSTEMS OF INSIGHT cus on reliable and efficient processing of transactions and ment from a multi-channel approach to an omni-channel ap- FINNOVA EXPERT SUITE FINNOVA MANAGEMENT SUITE With Master Record and Data Sync Analytics consistent primary data storage. If the Finnova Expert Suite proach, where client interaction can take place seamlessly can be understood as the heart, figuratively speaking, then across the channels. This demands a strong convergence of our system of insight, the Management Suite, fulfil the brain the front-end applications of the Channel Suite and Front Suite. function with control. The focus is on static control informa- Integration capability is of central importance in the Systems of tion – the longer, the more algorithmic and dynamic. We will Engagement and is assured by the Solution Suite. The changes expand the Management Suite with corresponding analysis in banking show us the importance of integrating banking ser- These strategic objectives for comprehensive end-to-end The possibilities of a seamless end-to-end process orchestra- functions with which banks can generate added value from vices into a wider ecosystem. The Solution Suite enables this banking require consistent data storage and stringent pro- tion across various channels opens up new perspectives in the their data, above all in client interaction, but also for control. integration into the ecosystem with regard to all three named cess orchestration. cooperation between banks and their clients. The implementa- Using the Finnova Analytical Framework (FAF), our customers ‘Systems of...’ and furthermore offers everything that is nec- With the shift of banking business towards electronic tion of omni-channel banking in the Systems of Engagement are in a position to respond to individual issues such as fraud essary for the quality of integration, with security, stability and channels, a seamless, cross-channel user experience needs of the Finnova Banking Software should enable a new expe- detection and prevention, client profiling or simulation. How- consistency as the most important characteristics. to be achieved. At the same time, the digital support of client rience in the processes and client interaction. This requires ever, our claim goes much further: Finnova offers the banks advisors in personal interaction with clients requires a new an overall view of the clients and their processes. The figure the possibility of expanding the analytical framework step by quality. In future, it should no longer matter via which chan- above illustrates both the required process synchronisation step in the direction of a comprehensive solution, in accord- nel clients communicate with the bank. The self-service chan- across the client channels and the process orchestration be- ance with their individual needs, the available know-how, as nel will play a more prominent role in this. Clients should be tween the individual systems. In order to be able to guarantee well as their resources and possibilities in terms of staff, in- able to receive advice, open products and manage their data consistent data storage, primary data storage is ensured in the frastructure and finances. independently. Systems of Record and the Finnova Expert Suite at all times. 24 25 SERVICES Application Management Finnova Services also ensures application management for our customers. Our basic service Product-specific know-how and experience are key factors for success. Offering a wide package covers all maintenance efforts across the board. With this, the ongoing operation of range of services, Finnova enables banks, BPO providers and implementation partners the Finnova platform and second level support are ensured. It also includes the testing and to tap into the internal know-how and years of experience in the parameterisation, installation of software updates in the productive environment, as well as a specific quota of integration and operation of the Finnova Banking Software. This saves time and mini- advisory and support services for ad hoc orders. We regard Application Management as a cen- mises project risks. tral knowledge and experience base that we consistently integrate into our software development. We also make this know-how available to our partners that operate the Finnova Banking Software for other banks. The services provided by Application Management enable efficient use and the highest possible performance of the Finnova platform, whether it is operated by Finnova or by one of its experienced partners. Moreover, we provide advice and assistance to Consulting & Academy our customers when it comes to creating implementation concepts for the efficient introduc- The Finnova Consulting, Account System Engineering (ASE) tion of options, or when they purchase additional software components. and Academy teams combine know-how and practical experience concerning the Finnova Banking Software. If effectiveness and efficiency are important to you, no doubt you will draw on our network of pooled resources. Support & Quality Assurance Optimum use of software to the advantage of the customers Our commitment towards our customers continues after they Thanks to their close cooperation with the Development de- have purchased our software. We aim to support our cus- partment, frequent contact with financial institutions and pro- tomers throughout the entire life cycle of the software. Var- found knowledge of the Finnova Banking Software and the ious measures, such as automated testing, redefinition of operation of the required hardware and middleware, our spe- processes and intensification of quality checks, are contin- cialists are able to ensure an optimum use of software for the ually being driven forward. Practical training courses enable customers, meeting their requirements without compromise. a tailored operation of the software geared towards the vari- The professionals in our teams have expert knowledge of the ous requirements of front office and application management banking environment and the technical basics. They quickly staff. Our comprehensive multilingual documentation offers grasp the problems, work out the best solutions possible and FINNOVA SERVICES answers should any questions arise. If Finnova users require offer support in the following five areas, either as part of an further support, a three-level support process is put into ac- individual mandate or as a general contractor: analyses, stud- tion. In case the first two support levels cannot solve the ies, consulting, implementations and training. problem or provide the necessary assistance, our customers can count on the third-level support provided by Finnova Cus- tomer Support. Furthermore, we offer attractive QA service packages. These focus in particular on automated testing, with which repeatable test cases can be defined and performed, Data & Analytics including a system evaluation of the results achieved. Thanks Consistent databases through effective data management guarantee the smooth operation to the test case scenarios that have been verified by us, our of the systems - that’s where our core competence lies. We make a measurable contribution customers can reduce their quality assurance costs. to cost and project efficiency. On top of that, we support our customers in guaranteeing and optimising the operation of the software throughout its entire life cycle, for example in acqui- sitions or sales, mergers, reorganisations or platform changes.

Valuable analyses for managers and experts We support decision makers in the company with meaningful analyses from a consistent database. Together with customers, we implement an efficient, multitenant-capable solution that provides added value for a wide range of banking business models. Thanks to jointly developed analytical solutions, we ensure that the bank’s needs are the focus of our services and our actions. Our top priority is to use existing data and generate faster results, with the most attractive conditions possible and with a standardised solution. Individual requests can be implemented thanks to the use of standard technology and thanks to the chosen software architecture. The autonomy of the solution is ensured at all times. We provide support for individual analyses of customer-specific needs and the conversion to effective and performant DWH or big data solutions. We map reports and data views from different perspectives, depending on where the focus lies: sales opportunities, further product developments, potential cost optimisation or management/department reporting.

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FINNOVA CHANNEL SUITE

With the Finnova Channel Suite, we directly focus on the channels to the end clients New Finnova E-Banking application success- it should be possible for users to manage credit of the banks. The Channel Suite primarily deals with the self-service of banking ser- fully started cards online and for powers of attorney to be dis- vices. A consistent user experience across the various channels is paramount for this. With over 50,000 active clients, Graubündner played and withdrawn independently. With the Kantonalbank is the first bank to have success- graphical redesign and connection to the loans fully put into operation the new Finnova inter- module, the mortgage extension will enable a us- net banking solution. The pilot showed that the er-friendly end-to-end processing in future. Here, solution aimed at end users could keep its prom- Finnova will offer its banks a deeply integrated ise: intuitive operation of the interface, quicker product in future. navigation, and simplified entry and control of The Finnova Channel Suite is being expanded on an ongoing E-Banking all payment types thanks to the cutting-edge, basis. We take into account the continuously increasing de- With the Finnova E-Banking application, private, business and self-explanatory payment transactions solution. In mands of end clients in mobile banking and e-banking, and investment clients – as well as external asset managers – are In the meantime, further banks have started ts ve en s li tm c support innovations in the area of ATMs. In the areas of cor- provided with a modern and high-performance solution. using the new solution in a ‘friends and family’ il e a n t t e c porate business and external asset management, and in the The excellent user experience of the new Finnova E-Bank- phase and the majority of Finnova banks have l R ie n t repositioning of our customer banks in the branch business, ing application is optimised for modern tablets and desktop already opted for the upgrade of the previous s we also offer attractive solutions which enable banks to dif- devices. The native Finnova Mobile Banking app for smart- solution. FINNOVA ferentiate themselves on the market with modern information phones is also available in iOS and Android for small screens. Due to the growing importance of the online 100% and communication technologies. In the Finnova E-Banking application, account, balance and channels, the Finnova E-Banking application will E-BANKING

posting queries are made, and payments are entered and pro- be consistently further developed. With the ob- E CLIENTS x t e cessed. Thanks to options for analysing expenditure, house- r jective of a ‘digital branch’ in mind, we are plan- n a s l t hold budgets or future account transactions, clients have an ning the extension of the E-Banking homepage, a n s ie se l (E t c up-to-date and clear presentation of their financial situation which will become the individual entry point of A m ss M an e ) ag sin at all times. The financial circumstances can be broken down the bank. In future, it will be possible to welcome ers Bu according to currencies, countries or securities types. The as- clients and non-clients alike in a topic-oriented set overviews here correspond to those of the client advisor manner and with bank-specific content in the in the Portfolio Management System. bank’s most important online channel. A pro- Furthermore, stock exchange orders can be entered, totype and the corresponding solution design The open architecture of the E-Banking home- executed, queried and processed by means of STP in the are being developed until the end of the year so page is a central element. This allows solutions E-Banking application. E-Bill, Electronic Archive and Secure that implementation can be started promptly in of third-party providers (e.g. stock exchange in- Mail are further modules for secure communication with 2018. Further self-service elements are being de- formation services or advisory solutions) to be the bank. Whether from the Payment Transactions or Stock veloped in parallel to this. For example, in future, integrated easily. CHANNEL SUITE Exchange application, Finnova accepts the orders and further processes them in real time. Numerous partnerships E-Banking enable a flexible choice of authentication and transaction signature procedures such as text message/mTAN, Cronto- Mobile Banking sign, Smartcard or Kobil AST. Branch & ATM All queries and processing jobs in the E-Banking application occur in real time, and all data is directly stored in the Independent central database. This results in advantages in terms of data Investment Advisory consistency and low operation costs. Business Banking

Implementation of E-Banking The new Finnova E-Banking application provides a unique, integrated view of all relevant information. The offer of Finnova Services for the implementation of the new E-Banking application means a ready-to-use implementation from one source. Whether the E-Banking application with mobile banking with or without the integrated Contovista personal financial assistant, we take care of the project planning, the detailed conceptual work including documentation, the installation support, as well as tests and training, according to the requirements and wishes of the customer. 30 31

Option S10 & S11: Personal Finance Management (PFM Mobile & PFM Web)

Mobile Banking Finnova Mobile Banking enables secure, simple access for completing Implementation of bank transactions. It is very user-friendly, providing strong security and Contovista’s Personal Finance optimal performance for end clients. The mobile banking app has been Management (PFM) designed for all bank clients who wish to access their bank and asset Contovista’s fully-integrated information (account, custody account, portfolio) securely and conven- personal financial assistant anal- iently. Complete payment transaction and stock exchange functionalities yses expenditure and credit card are available. The app enables the ordering of documents and ensures transactions across all accounts the direct and confidential connection to a client advisor via Secure Mail. and enables an overview of the Of course, a comfortable document scanner for inpayment slips is avail- current household budget in real able. Additionally, functionalities of the personal financial assistant are time. It can also be used to con- integrated for analysing the income and expenditure of mobile banking veniently manage other budgets, end users. The Mobile Banking app is available as a native app on An- for example for paying taxes or droid and iOS. achieving savings goals. Stock exchange and market information from third-party providers can be seamlessly integrated. News, market information, virtual portfolios and lists are thereby available to clients. Alongside the implementation of our new latest-generation E-Banking application, Finnova Services offers an integrated solution with Personal Finance Management and Mobile Banking. We guarantee a streamlined integration project with fixed milestones and deadlines – a double digital competitive advantage.

Implementation of Mobile Banking Provided that the customer already has our E-Banking application or is considering acquiring it, it is also possible to acquire the Mobile Banking functionality ready to use. We guarantee an integration project from one source at a fixed price and with binding deadlines – simply ‘smarter banking’. 32 33

Branch & ATM Teller The Finnova Teller application enables banks to efficiently serve their clients in the branch. Various client needs are covered here: deposits and disbursements in Swiss francs or foreign currencies, money exchange, precious metals, coins, collection of cheques, coupons and securities, and cash deposit for subscribed medium-term notes. Finnova enables the physical and digital creation of client and bank documents including barcodes, for the fully-automated archiving of documents via document scanning. Via a standard interface, different types of automated teller safes can be controlled. The Teller application also contains auxiliary functions which enable control activities in the operation. In order to guarantee a maximum level of security, the most important business cases are also available in critical situations thanks to the integrated offline operating mode.

ATM The ATM application enables the operation of ATMs with the Finnova Option 143: Connection of application. Processes carried out at the ATM by the bank’s own clients SignPad and Digitalisation of run completely in the Finnova Banking Software – with the exception of Teller Vouchers the PIN check. The application processes services for cards issued by the bank, such as withdrawals, deposits and account transfers. The application supports the withdrawal of foreign currencies and the management of so-called multi-accounts. A multitude of accounts can be assigned to a card and individual authorisations can be defined per account. In the context of the standardisation of the ATM business by SIX, the module will be completely revised and updated. From 2018 onwards, all ATM business cases involving the bank’s own clients will be processed via this module.

Independent Investment Advisory External asset managers work with Finnova directly or via the E-Banking application. With the EAM profile, a specific EAM dashboard is available, which provides a clear overview of the most-used functionalities and the most important information. The focus is on efficient searches for clients, accounts, securities holdings and orders, as well as the list orders that are key for EAMs.

Business Banking The Finnova ZV application puts banks in a position to offer their de- manding business clients competitive payment transactions and cash management. The support of this important client segment is gaining in significance, in particular in international competition. This includes the processing of electronically submitted payment files, client cash reporting in line with market requirements, as well as the support of clients with several bank accounts (multi-banking). The offer is completed by requirements-based business connectivity solutions for providing the electronic channels and interfaces to the bank. This comprises the connection of third-party ERP and business software solutions, as well as the support of current formats and standards, e.g. EBICS. 34 35

FRONT FINNOVA FRONT SUITE SUITE Advisor Workbench

Advisory Apps The Finnova Front Suite is the modern workplace for client advisors and supports them Advisor Workbench in their daily sales activities. Furthermore, it is the springboard to various advisory Advisors start their daily activity here. Depending on their CRM tools in the areas of loans, investments and pension provision. In addition, our vision is role, all necessary information about clients, products and to develop the Front Suite into a cornerstone for a consistent omni-channel experience. pending tasks of all types are available to them on one dashboard. Calendar and email functions as well as collaboration tools can also be called up via the Advisor Workbench. The respective advisory processes can be started from the Advi- sor Workbench. The Finnova Front Suite supports advisors with efficiently managed processes. They can use these during client onboarding, when opening and modifying bank products, as well as when entering and changing payments and stock exchange orders. Implementation of the Advisor Workbench module in the general contractor mandate The Workplace module of the Finnova Front Suite can be implemented in the general contractor mandate from one source with Fin- nova Services. Advisory solutions can then additionally be integrated to adapt them to the individual needs. On request, Finnova Servic- es takes over the project planning, conception, installation and configuration, as well as testing and putting into operation.

Basic modules of the Finnova Front Suite in pilot operation With the role-based and process-controlled Advisor Work- Furthermore, the Front Suite is designed as a cornerstone for The basic modules of the Finnova Front Suite have been in operation at the pilot bank since sum - bench, advisors maintain an overview of their portfolio and real omni-channel banking. Having the same consistent data mer 2017. They comprise the central Advisor Workbench with 360° client perspective and a pend - all information about their clients, can initiate advisory pro- available in all channels at the same time is a prerequisite for ing task dashboard, as well as the first functions of the client opening processes for natural persons cesses and perform these efficiently while being supported a seamless transition from one channel to another. with nationality and domicile ‘Switzerland’ (according to CDB 16). by the system. Thanks to the modular structure of the Front Suite, the The scope of the Front Suite is gradually being expanded further with additional functions and The Finnova Front Suite can be extended as both the highly variable requirements of the banks for an advisory solu- processes such as order processing (Payment Transactions and Stock Exchange applications). In sum- starting point and the focus of all important sales and advi- tion can be met efficiently. Via the Solution Suite, and with a mer/autumn 2018, the Front Suite Advanced should go into operation at the pilot bank. General sory processes – from client and product opening processes corresponding service offer, Finnova additionally offers cus- availability is planned by the end of 2018 at the latest. to the full advisory processes for investments, financing, tax, tomised solutions for banks that would like to connect advisory As part of the pilot project, the Finnova Front Suite is being extended with Swisscom’s eVoja retirement, inheritance, and so on. and investment solutions popular on the market or supple- advisory modules together with swissQuant’s ImpaQt plus for professional investment advisory. We use the same modern UI technologies as for the new ment or replace managed processes of third-party providers. Complete connection via Business Services is planned in the medium term to bring about a well E-Banking application in the development of the Front Suite in integrated, comprehensive advisory solution. order to create an homogenous user experience. 36 37

Advisory apps Through the connection of partner solutions, such as Swiss- com’s eVoja advisory modules together with swissQuant’s ImpaQt plus for professional investment advisory or compara- ble third-party products, the Front Suite innovatively supports direct client advisory discussions through process management and illustration on the tablet. This gives rise to a special client experience in investment, financing or pension provision advisory.

CRM With the Customer Relationship Management (CRM) module, the Finnova Banking Software offers detailed information and structured evaluations. In future, some of these and further functionalities will also be directly available in the Advisor Workbench.

Implementation of advisory solutions in the general contractor mandate Finnova Services offers the integration of advisory solutions such as Swisscom’s eVoja in the Front Suite in the general contractor mandate. This minimises the complexity and risk for the customer. Depending on the customer’s wishes, requirements analyses, the implementation of individual adjustments, conception, implementation, testing and project management can be individually combined as a service. 39 40 41

Financial Accounting The balance sheet and profit and loss account are available daily online. For the balance sheet and profit and loss account, various evaluations can be created periodically (daily, monthly). Thanks to a daily cut-off concept, various balance sheet month- ends can be kept open in parallel. Using recurring events, the MANAGEMENT FINNOVA MANAGEMENT SUITE evaluations for the balance sheet and profit and loss account SUITE can be ‘subscribed’ for the time of the definitive balance sheet Financial Accounting month-end. In addition to the balance sheet and profit and The Finnova Management Suite addresses needs in the area of integrated bank man- loss account, a turnover balance sheet and an average bal- Finnova Control agement such as financial and company accounting, risk management, compliance ance sheet are available. The balance sheet and profit and loss Risk & Compliance and legal reporting. account can be adjusted manually. These changes are docu- mented to make them auditable. Several balance sheet struc- Regulatory Reporting tures can be entered in parallel with accounts/items, some of which are contained only in one structure or in all balance sheet structures with the corresponding profit determination per balance sheet/profit and loss account structure.

Finnova Control Finnova Control consists of the modules Net Cash Flow, Over- head Costs and Profitability. The ‘Finnova Control – Net Cash Flow’ option calculates the liquidity-relevant inflows and outflows of business volume, Option 74: Finnova Control – client assets, client receivables and off-balance sheet items Net Cash Flow of a bank over a defined period. It provides information about whether the business volume has increased or decreased on both the assets and liabilities side of the balance sheet and where exactly the inflows and outflows occurred. It not only supports the bank in the fulfilment of regulatory requirements, but also delivers important key figures for strategic management to the bank management. The calculated figures can also be used for targeted personnel management. As part of a pilot project, Finnova Services is currently developing solutions for the consistent determination of overhead costs and profitability. On this basis, we offer interested banks customised services solutions for effective bank management. The Overhead Costs module maps the costs of a bank proportionally. The functionality provides information about where real costs have been incurred and who is responsible for the costs. By means of detailed postings from main and subsidiary ledgers, internal cost allocations and cost apportion- ment of overhead costs, the bank can distribute the incurred costs over the various organisational units and cost centres. The end result is cost transparency for the bank in the form of a cost distribution sheet and cost type/cost centre accounting. The Profitability module determines the key figures of the

The Management Suite is thus the complete instrument for bank and risk management. It pools analyses and reports and in addition, its functionalities cover the ever-increasing compliance requirements in the banking sector.

Implementation of net cash flow, profitability and overhead costs Finnova Services offers support in the implementation of Finnova Control. Our specialists assist customers during the implementation and arrange the large amounts of data available in our DWH framework according to their needs. ‘Big data’ key figures are not empty marketing shells for us, but rather specific tools to enable customers to make their business even more successful. 42 43

contribution margin accounting required for the statement of a bank’s profit or loss at client, product and organisational unit Finnova Analytics level. On the income side, both income from interest-bearing transactions (including interest margin calculation) and fees Strategic field of action and commissions are taken into account. On the expenditure Finnova has identified data analytics as one of the strategically important topics for the future of the side, the corresponding interest and commission expenditure Finnova Banking Software and relies on the systematic development of a uniform and cross-mod- as well as the incurred costs are taken into account. The Prof- ule analytical framework right across all specialist areas of a modern bank. itability module is the basis of a multi-level contribution margin The focus is on both efficient fulfilment of existing and future regulatory and compliance require- accounting. Thanks to a high variability in the organisation of ments and optimisation of economic key figures, profit maximisation and cost reduction. key figures while taking into account the individuality of the bank, it can be optimally served with a tailor-made solution. Advanced analytical approaches The result the bank obtains is a calculation of client and prod- Compliance control also covers the detection and prevention In this development, Finnova relies on the use of unique and highly precise new-generation algo - uct profitability and a profit centre accounting. of internal and external misuse and fraud by continuously ana- rithms, which go far beyond the popular open source programming environments and ensure op- lysing relevant indicia for their compliance conformity and pre- timised and high-quality data processing and modelling results. The complexity of the analytical Risk & Compliance senting them in compressed form. tasks and challenges is not reduced here, but rather the handling of the sophisticated methods and The extensive risk management and simulation include the The highest possible transparency, traceability and accuracy approaches by means of fully automated processes. elements of Asset & Liability Management (ALM), own secu- of the investigations and reports through optimised detection rities management and liquidity management, as well as the rates and minimised wrong detections are paramount here in or- Interdisciplinary banking topics loan portfolio for an entire bank. der to guarantee smooth compliance processes within the bank. Fraud detection and prevention, sales optimisation, client profiling and segmentation, dynamic Regarding risk control, Finnova currently draws on various Consolidated and detailed reporting enables the responsible stress tests and simulations, as well as processing of structured and unstructured data are only a third-party solutions via interfaces. managers to get comprehensive information and to make op- few examples of the analytical tasks that are the focus of these developments. The compliance managers are informed promptly, and in timised decisions in real time. consolidated and compressed form, about critical processes Finnova hot topics within the bank and have the possibility to observe progress in Regulatory Reporting Following several successful internal proofs of concept in the areas of sales optimisation as well the detection and dissolving of processes that do not conform The Capital Adequacy Ordinance obliges the banks to provide as processing and modelling of external data, Finnova is currently increasingly concentrating on with compliance, as well as the effectiveness of the elimina- regular reports on equity capital and risk diversification. Fin- the further development of the areas of fraud detection and prevention as well as analytical CRM. tion and prevention measures taken. nova offered the FINMA Reporting II application, also known The focus is on topics such as real-time analysis of internal and external data across clients and By comparing client relationships with entries in embargo, under the short designation ERIKA II (from German ‘Eigenmit- counterparties, their relationships, behaviour and transactions, as well as identification of new, as sanction and PEP lists, as well as by means of risk-based pro- tel-, Risiko- und Klumpen-Applikation’ = Equity, Risk and Con- yet unknown suspicious or promising behaviour patterns. filing, and peer group and link analyses, suspicious financial centrations Application), for the automatic creation of these As a result, the originally compliance-based term ‘Know your Customer’ gains a completely new transactions and client behaviour are analysed and detected, reports for the Swiss Financial Market Supervisory Authority meaning and develops in the direction of a comprehensive ‘Understand your Customer’ approach. and undesired and high-risk client relationships and money (FINMA), which is not being developed any further based on Both the protection of clients and the integrity of the bank, and the optimisation of sales campaigns, laundering activities are identified and prevented in time. economic considerations. The interface to the third-party pro- client satisfaction and maintaining the client base are at the heart of this. vider solution for capital adequacy and large exposure report- With the expansion of the Finnova Analytical Framework, the possibilities for data analytics ing is expected to be developed as of the beginning of 2018. based on structured and unstructured data, as well as the knowledge gained from these, will be ex- Selected SNB statistics continue to be offered via the calcu- tended in future, and will contribute to a uniform approach to analytical tasks and their solutions. lation of capital requirements (EB) module. Finnova draws on various solutions of third-party providers via interfaces for the creation of statistics for the SNB as well as supervisory, liquidity and interest risk reporting for FINMA.

Finnova Compliance Framework The ‘Finnova Compliance Framework’ service package of Finnova Services shows where problems lie. Together with the customer, a tailor-made concept for the implementation of cleanup jobs within the customer’s own client master data is developed, and possible enrichment and migration scenarios are checked. Using a detailed plan of measures, the identified optimisation plans can be implemented transparently. 44 45

EXPERT Payments SUITE FINNOVA EXPERT SUITE The Finnova Payment Transactions (ZV) module is designed for efficiency Payments and automation. It supports standards and procedures established in Switzerland and internationally (incl. SEPA), and the structured and ef- Financing The Finnova Expert Suite is the workplace for the middle and back office as well as for ficient entry and processing of payment orders. As a matter of course, our BPO partners. It is and remains the backbone of the Finnova Banking Software and client and interbank payments are supported in the current XML format Investment Management comprises the known expert modules. according to ISO 20022. Investment As a result of the full integration of electronic channels into the Operations Finnova Payment Transactions module, optimal processing of client payment orders can take place and electronic account statement information Tax can be provided quickly and as needed. Clients & Products Innovative market developments such as peer-to-peer payments or person-to-merchant payments (e.g. Twint or WIR Pay) are seamlessly integrated into the Finnova ZV application via the Finnova Payment Solu- tion Adapter, and offer private or business clients a broad spectrum of payment options. The payment channels for outgoing payments in interbank payment ISO payments and cash transactions are predefined on the basis of previous transactions and are In addition to ISO 20022, with reusable – it is a “learning” system. Thus, the Finnova ZV application al- the project LEON (from German: lows banks to process their bulk business very efficiently. ‘Lastschrift und E-Rechnung On- If back office employees are required to intervene in the processing, line Neu’ – New online direct deb- they are supported by smart processes (automatic triggering or process- it and e-bill), further innovations ing of returns, inquiries or SWIFT cancellation requests). in payment transactions are lined The banks’ requirements of scalable and cost-effective processing up which will affect all market of payment transactions are paramount. Depending on the bank’s oper- players. As a leading provider of ating model, the Payment Transactions application can either be an in- software for financial institutions, tegral part of the Finnova Banking Software or it supports the modular we provide comprehensive sup- connection to a BPO provider. port to our customers with a set of service packages, be it in their role as financial institution when managing the complexity along the three dimensions of system, bank and client, or during the technical implementation in their position as application service provider for financial institutions.

The modular structure of the Finnova Expert Suite covers all The focal point of the Finnova Expert Suite lies in the quick modules, from payment transactions, financing, investment and comprehensive processing of all business cases and the ZV Quality Check Client and portfolio management to client and advisory modules. unrestricted, role-based access to all data. Client processing With the ZV Quality Check of Accordingly, the master data storage is located in this central Finnova Services, our consultants Client suite of the Finnova Banking Software. Here, for example, screen the parameterisation of the client master, card administration, interest rates, fees and Bank Stocktaking of the Finnova Banking Software market measures Business charges are integrated. The parameterisable process man- in the Payment Transactions Bank/Client agement guarantees the banks an efficient and individual in- module. We conduct interviews tegration. Basis with the users in order to gain an System insight into their work processes. We create a comprehensive report from these findings, which Technical development Application assesses the quality of the

ISO Payments Interbank parameterisation and contains ISO 20022 is changing the world of payment transactions. All market players are affected. As a optimisation proposals to facili- leading provider of software for financial institutions, Finnova provides comprehensive support Finnova service offer – ISO payments tate the day-to-day work. to its customers with a set of service packages, be it in the role of financial institution when managing the complexity along the three dimensions of system, bank and client, or during the technical implementation in the position of application service provider for financial institutions. 46 47

Processes can be adapted to bank-specific requirements. The With beneficiary matching, which can be extended to phonetic predefined workflows guarantee the highest level of security equality, both the greatest possible security during allocation and reproducibility. and a high degree of automation are achieved. Naturally, it is In addition to the manual entry of payment orders, various possible to perform a check with regard to politically exposed ZV scanning systems are supported. Orders from the E-Bank- persons and embargoed countries. ing application enter directly into the Payment Transactions Processed payment orders are immediately posted, the application without redundant storage. Standing orders are notifications are created for the clients, and the documents directly entered and managed in the Finnova ZV application. are stored in the electronic archive. Both the bank and the client can edit standing orders in the E-Banking application. In order to support banks in the fight against fraud, the originator profile can be checked by clients before the execution of payment orders. In the case of incoming payments, the bank can choose from a extensive set of criteria whether the credit entry should be made immediately or not.

The future of payment transactions The Finnova Payment Transactions (ZV) application supports banks in meeting the current requirements for efficiency and automation in the back office and the future challenges for the business model, which is constantly changing as a result of innovative market developments such as peer-to-peer payments. Payment transactions of the future have an impact on both the business and operating models of banks.

Option 144: SEPA Direct Debit Payment transactions – trends and innovations In particular, the new mobile payments are worth mentioning here. Bank cli- Option 146: ERP Gateway ents do not have a problem with paying in principle, but rather are looking Option 147: PayFile Gateway for added value. Clients will only change their payment habits and use their smartphones instead of cash at the checkout if a solution is simple, transpar- Option 149: Individual ent and secure. At the same time, competition is growing in this area as non- Payment Stop banks and non-payment transaction providers – including smartphone hardware manufacturers, mobile operators and online stores – are also part of the value-added chain.

Payment transactions – technology New technology means new solutions for which a bank infrastructure is no longer necessary, or only partially necessary. Emerging technologies such as blockchain have the potential to completely redefine operating models. This means that regulatory frameworks will first need to be defined and adapted.

Payment transactions – automation Ongoing standardisation of processes, harmonisation of formats, and digitalisation mean banks can focus on the parts of the value-added chain that set them apart from competitors. In future, it will be easier to outsource non-dif- ferentiating areas. This development is supported by emerging BPO providers. It can be observed that, rather than focusing only on traditional revenue criteria, banks are now also investing in payment transactions in order to set themselves apart from competitors and to retain clients. 48 49

Financing In addition to self-occupied property (single family house, mul- The loan system is characterised by a high degree of flexibil- ti-family residence, condominium ownership), the application Option 100: Credit Line ity when mapping various loan constellations that can be fully also enables the management of other properties such as in- Option 101: Libor Mortgage processed, from the loan advisory discussion and the opening dustrial and commercial properties, hotels, restaurants, sports of the loan order to the posting of capital and interest. facilities, etc. Thanks to the versatile connection possibilities, Option 115: Fixed Advance The Loans module enables the entry of all loan products even complex residential developments can be fully mapped, such as loans, overdraft facility, Libor mortgage, lombard loan, for example, multi-family residences with condominium own- cash loan, leasing or surety bond. In addition, it assigns col- ership and co-ownership of the underground car park. The FIL Integration Service 1: Loan Order (read access) lateral, determines amortisations and allocates execution ac- module enables individual levels of detailing: the more pre- counts as well as client-specific conditions (debit interest, cise the data, the more comprehensive the appraisal report. FIL Integration Service 2: credit commissions). Loan transactions are supported by pro- Mortgage notes entered in the system are used as collateral Real Estate Data (read access) cedural organisation stages and by the periodic processing of in the Loans application. interest, amortisations, fixed annuities (for loans, cash loans As an interface, the Mortgage Bond Bank module ena- and leasing) and collateral. bles the digital reporting of pledged properties such as real The loan system contains the master data management estate or real estate compounds to the mortgage bond bank. of individual loans and credit lines as well as collateral in Swiss A mortgage bond property is only transmitted if all required francs and foreign currencies. The application manages ac- fields are filled in completely. The corresponding information count balances, custody accounts, portfolio collateral, guar- able balance. Limits can be directly entered and automatically can be parameterised by the bank according to its needs. The Investment Management antees, insurances and all other collateral. Mortgage collateral updated via the Loans application. The Limits module enables individual data has to be entered in the master applications The Portfolio Management System (PMS) module integrated is generated and updated from the Real Estate application. the definition of simple and complex limits, for example if sev- Real Estate, Loans and Client Master and is transferred into into the Expert Suite optimally supports activities in discre- All loan-relevant data is displayed in an overview screen eral accounts show an amount as the initial value. All Finnova the Mortgage Bond Bank module using the ‘Update’ function. tionary asset management and advisory. In the PMS, alloca- with drilldown functionality. The module allows the portfolio applications that provide current balances, like for the account Data that cannot be maintained in the master applications is tion structures (trees) adapted to bank-specific client strate- status with all loan-relevant data to be printed. The screens for query, take into account the fixed limits in the calculation of updated in the Mortgage Bond Bank module. gies, which serve as a basis for the various strategies, tactics, the management of client information (income, assets, liabili- the available balance. benchmarks and model portfolios, can be determined in any ties, balance sheet ratios, taxes, debt enforcements, excerpts The regulation of competences within the bank is gov- desired depth. Customised investment proposals in advisory from the commercial register) as well as client contacts and erned via the Competences module. This module deter- and efficient bulk processing in asset management are also pending tasks can be directly called. The entire loan manage- mines for all other modules which employees are allowed to offered. ment process is supported by the workflow. deal with and/or authorise which business cases up to what The ‘Global Order’ functionality enables the periodic re- The Finnova Banking Software offers the possibility of amount. With the definition of the competences, it is con- structuring of mandates in a very efficient manner. Both dy- managing and administering different limits such as coun- trolled who receives, further processes or concludes which namic and static investment models can be implemented. terparty, nostro, credit or card limits. Changes are updated pending tasks in the workflow. A global restructuring can take place, dependently or inde- online and have a direct impact on the calculation of the avail- The Collateral module manages all securities as collateral pendently of model portfolios, for all investments in the port- in the Finnova application, from real estate liens to portfolio, folio, for individual segments or only for individual securities. account and custody account balances through to securities. Using the ‘Cash Management’ function, cash holdings for In addition, this module also comprises insurances, guaran- mandates can be managed separately from global restructur- tees and other collateral. ing processes. A seamless transition of the generated stock In addition to comprehensive and detailed master data for exchange and foreign exchange orders for execution into the real estate and mortgage notes, the Real Estate module al- downstream modules is guaranteed. Option 91: Technical Year of Construction lows the connection of digital images. With the Finnova Bank- Bank- and client-specific investment guidelines and pref- ing Software, even complex ownership structures can be re- erences can be easily maintained via the ‘Investment restric- Option 92: Processing of corded and all data for the detailed appraisal of a property tions’ function and monitored in the pre-trade restriction check Indirect Amortisations YEP is provided. Hedonic pricing models are also integrated. The for an individual investment proposal, or within a bulk restruc- Option 93: Display of Contract module creates a variety of documents, like appraisal reports turing in asset management. The periodic post-trade check of Clauses of Preceding Transaction for the land register office. These and other documents to be investment restrictions in investment controlling is efficiently created frequently, such as registration and deregistration in supported by checklists. Violations are directly reported to Option 94: Commitment Fee the register of mortgage holders, can be printed by means of the mailbox of the user responsible for further processing. Option 97: Security Deposit a simple mouse click. Management

Option 98: Resubmission/ Extension and Presentation of the Balance Sheet

Option 99: Irrevocable Promise to Pay 50 51

Comprehensive configurable ad hoc analyses for asset allo- Investment Operations cation, asset development, performance calculation (TWR, The Stock Exchange module controls the order workflow, from MWR, before/after taxes/fees, etc.) and performance attri- the creation to trading through to processing and posting. The bution facilitate the day-to-day business of client advisors, orders can be entered as individual or list orders. Further order asset managers and portfolio controlling. A variety of key fig- sources are E-Banking, Global Order, Corporate Actions, CSV ures (Sharpe ratio, Treynor ratio, Jensen’s alpha, information import as well as an interface to third-party systems. ratio, VaR, volatility, PRC, etc.) are available for risk monitoring. Comprehensive check functions ensure compliance with The modular structure of the reporting enables the com- regulatory requirements. The presence and validity of any con- pilation and preparation of a targeted investment reporting, tracts can be checked bank-specifically. All warnings from the which allows not only the inclusion of ex-custody portfolios, checks are historized, as are the person and time of overrides. but also a consolidation across all clients. Orders from various sources (e.g. E-Banking) can be treated Furthermore, the PMS includes the configuration, man- differently in the process. agement and calculation of composites according to the spec- The flexible implementation of the FIX interface allows for ifications of the Global Investment Performance Standards a complete STP connection to any brokers, routing networks, (GIPS). The periodic certification check is supported with de- or external trading platforms. Execution messages can also tailed control reports. optionally be sent via SWIFT. Communication takes place in real time. Adjustments to the order data of the trade overview are updated and highlighted in the overview without a time delay with the aid of a messaging system.

Finnova PMS The Finnova PMS application is a portfolio management system for specialists. It has a wide range of functionalities for fully-integrated, optimal support of the investment process, from portfolio implementation to investment con- Option 141: Funds Breakdown trolling and reporting. in the PMS A completely revised status concept in the portfolio implementation pro- Option 163: Performance cess (Global Order) and the possibility of creating template parameter sets mean Breakdown that the level of automation can be increased as desired, up to and including complete system-controlled periodic rebalancing of standard tenants that only Option 164: Global Order Templates & STP require manual intervention in exceptional cases. Extensive ad hoc query possibilities (debit balance lists, restriction violations, valuation details, performance analysis and risk analysis) support port- FIL Integration Service 4: folio managers in the management of new tenants, changes of strategy and Asset Allocation Export (PMSplus) portfolio balancing. Experienced client advisors are supported as they individually advise the clients assigned to them. A large set of freely combinable reporting modules are available for creating reports for clients. In particular, they enable targeted reporting in the area of performance evaluation. The focus is not only on the requirements of private clients but also on the increased requirements of professional clients. In the Investment Cockpit, going forward, the focus will increasingly be on user-friendliness, operability and process orientation. Graphical analysis and dashboards should improve the acceptance of occasional users, and make day- to-day work easier for experienced users. 52

For specific trading exchanges, the orders can be processed semi-automatically or manually. For this purpose, the trader interface offers profile support, reservation mechanisms and tools to compensate for opposing client orders. Here, the pool- ing functionality takes into account the individual cut-off times The module automatically registers and takes into account for funds. The interfaces to the following modules ensure fully standing instructions of clients with regard to selection events automated processing within the Finnova application: Com- (optional dividend, capital increase, invitation to the general munication System, Workflow, Competences, Limits, Foreign assembly, etc.). Restrictions can be individually defined per Exchange, Settlement and Registered Shares. The scheduling event. Blocked custody account positions are identified and and blocking of securities positions as well as the printing of the required actions are automatically triggered. Client advi- the settlement and the posting take place in real time. sors are automatically informed about new settlements or se- Pending deliveries from stock exchange orders and orders lection events of their clients. from the Securities Accounting application such as incoming/ Various selection options regarding holdings, stock ex- outgoing deliveries and securities transfers are processed by change transactions, countries of residence at a certain point the Finnova system as a straight-through process in the set- in time, also retrospectively, and nationality are available for tlement. In doing so, the module determines the respective class actions. With this, an authorisation for participation in a custodians and creates pending deliveries for the correspond- class action can be displayed to the client in detail and with ing instructions according to SWIFT or SECOM. The instruc- indication of the relevant stock exchange transactions. tions are automatically sent and the current status of the set- Specific screens for the service centre allow for process- tlement process is clearly displayed on the pending delivery. ing of events across all tenants. The automatic posting by the system takes place after the The Securities Master application contains comprehen- confirmed settlement. sive securities data as well as listings, price data, international With Corporate Actions, it is possible to replicate cash and identification numbers and symbols, tax data, ratings and Mi- securities flows of complex financial instruments in a modular FID data. In addition, it offers the possibility of entering struc- system. The corresponding components from the areas of se- tures and relationships that are required, for example, for the curities, cash, taxes and commissions are available for this pur- securities composition of an index or basket. pose. Here, the calculation, fraction treatment and assignment For the opening of a security, it suffices to enter the SIX (drawing) comply with the standards of international financial number in order to start the automated process. Within a Tax centres. All calculations and postings take place in real time. few minutes, all data of the desired security can be obtained Tax statements under Swiss law are managed in a separate data warehouse. It is Rounding differences arising from these calculations are au- from the provider and supplemented on the basis of rules. possible to modify tax-relevant information and to enter rates and additional trans- tomatically identified by the module when an event has been SIX Group and WM Datenservice are data providers for mas- actions. The system creates the tax statements with the recapitulations and gen- completed, and are transferred up to a minimum limit from the ter data and securities prices. Specific data, e.g. funds break- erates key figures as input for the fees model of the core banking system. German transitory account to the profit and loss account. down, PRC code or blacklist, can be supplemented with data bank clients are provided with a functionality for creating the tax statement in ac- The Corporate Actions module is workflow-based and from other sources. cordance with German tax legislation in the Finnova system up to and including the has an integrated interface to the Foreign Exchange, Tax State- Multi-tenant capability enables an industrial data mainte- 2017 assessment period. As of the 2018 assessment period, this function should ment and PMS modules. The events can be imported via VDF nance by a BPO provider. This can include any tenants within be replaced with the connection of third-party providers. Statements for further or WM data feed or entered manually. a tower or even several multi-tenant towers. The authorisation countries can be generated as well. The printing options allow for a comprehensive control of matrix controls the distribution of fee-based data at instrument A fully integrated solution is provided for the fulfilment of regulatory tax re- dispatching, attachments and archiving. The text templates or data segment level. porting as part of the automatic exchange of information (AEOI) and FATCA. The pre-defined for the individual business cases can be freely Some fields can be overwritten at various levels. For ex- respective indicia search run, the classification of bank clients in terms of report- adjusted for each individual transaction, and also comprise ample, the risk securities type can be defined globally, per ing requirements, and the creation of the consolidated reporting file for the tax multi-page texts for pre-notifications, replies and settlements. multi-tenant tower, per tenant, and, within the bank, even per authorities are part of this in-house development. Process control takes place via Thanks to these properties, all events can be mapped, from management area. user-friendly input screens (GUIs). dividends to invitations and general assemblies through to This enables the highest degree of individuality with max- The ‘Tax profile overview’ input screen consolidates all tax-relevant topics of the splits and mergers. imum industrialisation. bank clients. Compliance managers or client advisors can thus see at a glance which Option 40: Extended Money The client position is automatically assigned when options reporting obligations exist for clients or which tax statements are generated for clients. Market Function: IRS and FRA are exercised by the counterparty. The underlying security is Option 123: FXLinX also automatically blocked when writing a call option. The system calculates and ensures the initial margin in the same way Option 139: EMIR/FMIA as it calculates and posts the variation margin. In the case of Option 140: Funds undercollateralisation, the workflow initiates and controls the Breakdown Data alerting and escalation. Option 167: CA Event – Custodian Matching (MT566) 54 55

>> Fees dividually, which enables the establishment of a product, Services which are not transaction-oriented are calculated advisory and sales process that is tailored to the client’s and charged in the ‘Fees’ module. The ‘Fees’ module cov- needs. By means of various structured evaluations of the Clients & Products ers a variety of fee types. client profile and portfolio, it can be ascertained which Finnova Data Management: All product-specific and client-specific data and functions for bank-internal products suit a client best. It is also possible Client master standardisation the Client Master, Card Administration, Limits, Fees and Ac- >> Account Balancing to evaluate the sales potential of a certain product and to In times of digitalisation and cost count Balancing modules, for example, are fully integrated The ‘Account Balancing’ module calculates and posts debit implement a sales campaign based on this. pressure, industrialisation of the into the Expert Suite. or credit interest accrued as well as any charges which are The CRM module regulates the management of pend- banking business is becoming The parameterisable process management guarantees the incurred on an ongoing basis but only debited periodically. ing tasks and notes; it contains the client history and co- increasingly important, along with banks an efficient and individual integration. Account balancing can be triggered periodically in a batch ordinates the client process with figures, data and facts. standardisation and automation operation or manually (online). Several balancing types are Thanks to a frequency of contact that can be individually of processes and outsourcing of >> Client Master available for this. Among other things, in addition to a real determined, each client is regularly supported according sub-processes. The standardisa- The Client Master stores a wide range of client data. This balancing, a balancing for information purposes can be cre- to his or her needs, allowing for an individual and sustain- tion of formats and data as part of includes information about persons, addresses, communi- ated. The documents ‘Account statement’, ‘Statement of able client relationship via the CRM module. the client master standardisation cation tools, details of the client relationship, the relation- interest and principal’ and ‘Record of fees’ can be gener- In future, functionalities for pending tasks and notes is a prerequisite for this. With the ship between client master records or the financial situa- ated with this module. are also to be directly available in the Advisor Workbench ‘Finnova Data Management’ ser- tion of the client. As a special feature, the functionality of of the Front Suite. vice package of Finnova Services, the module can be extended bank-specifically with addi- >> Customer Relationship Management we support banks in implementing tional fields. Advisors have the possibility of performing The CRM module in the Expert Suite provides advisors the multi-layered requirements of a filtered search for clients according to various criteria in with comprehensive tools that define which products are the client master standardisation. the system and thus of managing them along the lines of tailored to the specific prerequisites and needs of a cli- Together with the customer, a their current task. ent. These parameters can be determined in detail and in- tailor-made concept for data analysis within the customer’s own >> Portfolio Balance Overview client master data is developed as The portfolio balance overview module is able to create preparation, and possible enrich- and edit many of a client’s account products. A client may ment and migration scenarios are have a number of accounts or custody accounts combined checked. A detailed plan enables within one or more groups (portfolios). targeted implementation of the identified measures for improving >> Anti-Money Laundering data quality, thereby forming the Requirements concerning the anti-money laundering or- basis for a successful imple- dinance can be fulfilled with the ‘Anti-Money Laundering’ mentation of the client master module. standardisation. >> Card Administration Different card types of a client can be managed, i.e. generated and processed, with the ‘Card Administration’ module. A client can have several cards with different limits, either as holder or as an authorised person.

>> Limits The ‘Limits’ module is provided for the real-time monitoring Option 31: Fee Functions of external limits (client’s limits) and internal limits (nostro limits) and monitors limits from the bank’s perspective. Option 89: Automation of Closure

Option 120: Budget Overview >> Tariffs The tariff scheme is a central module in the Finnova Banking Option 152: Credit Fee Software. It is used to model tariffs for a wide variety of price components. The tariff scheme is applied for transaction-dependent and non-transaction-dependent transactions, such as for stock exchange, account balancing, fees, etc. 56 58 59

Front Office Integration FINNOVA SOLUTION SUITE SOLUTION We are happy to assemble tai- SUITE lor-made implementation projects Solution Integration for third-party system connec- The Finnova Solution Suite makes the Finnova ecosystem more accessible to custom- Technology tions. We offer support in the ers, partners and third-party providers. It embodies the openness of the Finnova Integration analysis, solution design and spec- Banking Software and its solutions. ification of the required interfaces and accompany the implementation project. If requested, we also build so-called business service adapters that enable third-party systems to be connected to the Finnova Banking Software in a customer-specific and future- proof way. Finnova Services guarantees the release-readiness of the business service adapter for future releases of the Finnova Banking Software as well as the Solution Integration compatibility with the new Finnova Thanks to the high-performance architecture of the Finnova Integration Services. Integration Layer (FIL), the consolidation and further development of the existing interface solutions will make it possible to efficiently and securely connect new and innovative solu- Finnova QA Services tions and services (e.g. robo-advisory, peer-to-peer solutions, Finnova QA Services are revolu- self-service solutions) to the Finnova platform and to integrate tionising test automation thanks them into the Finnova Banking Software. With this specialist to innovative methods for the integration, banks can seamlessly use these new solutions creation and maintenance of test both in-house and externally. The first third-party solutions con- cases. Cost savings make room nected to the Finnova software are already successfully using for even better quality assurance. the FIL Integration Services. In future, certain functionalities Step-by-step, a flexible modular of the Finnova Banking Software will gradually be made avail- system is created so that various able via services which are being expanded step-by-step over testing frameworks and tools can the next few years. Until then, Finnova offers a project-specific be used and connected to each solution for customer-specific and third-party product-specific other. Part of the test automation connections: the FIL Business Service Adapter. effort is performed centrally by Finnova. This enables customers >> Finnova Integration Layer to create new test cases more quickly and to adjust existing >> Business Integration Platform/ cases to the latest release or Business Architecture parameterisation status in an effi- In times of rapidly evolving digitalisation, innovation and agility Digitalised and industrialised banking will be possible in the cient and cost-effective way. The are sought-after qualities. In order to be able to better satisfy future if solutions can be built and operated to be compatible >> Compliance for CH and EU coverage § Finnova Banking Software can these needs, the Finnova Solution Suite enables systematic with XaaS. The Solution Suite product groups target our differ- thus be tested earlier and more opening up to partner solutions, customised developments or ent stakeholders in the Finnova ecosystem, who all have spe- >> Stability and performance extensively, which results in fewer third-party products. The Solution Suite is the latest addition to cific needs and requirements – from individual developments incidents in production. The first the Finnova product family and is currently being developed. via Solution Integration to quality assurance and high-perfor- >> Onboarding & Consultancy Services service package provides services mance, cost-effective operation. for automated GUI testing on the >> Group marketing and sales basis of HP’s Unified Functional Testing (UFT) tool. 61

DWH Framework: Data Warehousing for Reporting and Analytical CRM Our DWH framework developed with customers is designed as a starting point for the analysis of existing Finnova data, and uses standardised interfaces. Depend- ing on the customer’s desired perspective, our analytical data services mainly focus on the identification of sales opportunities, the use of cost-saving potential and the integration of additional data resources for innovative big data analyses.

AM+ Our application management in Technology Integration Seewen is the leading competence For the IT integration of systems, Finnova provides tools and centre for the secure, high-per- frameworks developed in-house that help to configure the formance and stable operation of technical connection in a more efficient way. All partner com- the Finnova Banking Software and panies in the Finnova ecosystem, providers and users alike, >> Quality Assurance Framework knows the customer needs from can benefit from this. Among them are products from the fol- For testing and acceptance of systems and functions. Due Finnova Integration Layer – technological link for an open ecosystem many years of practical experi- lowing areas: to the complexity of banking systems and processes, the The Finnova Integration Layer (FIL) is not a product, but rather the technological ba- ence. It maintains an open dialogue development of software and the integration of software sis for the integration of different systems. The FIL comprises small, independent in- with its customers in order to >> Development Framework components require good and broad coverage of the test tegration services that cover specific use cases. These integration services are based identify new, innovative function- For the successful development of customised solutions functionality with stringent tests and high-quality test data on consistent technology with stringent architecture so that they can be reused alities and options according to for banks or for the components of new products on the of varying granularity (unit, end-to-end, performance tests, for different business cases. The FIL is an essential element of the Finnova Banking their needs, with the goal of giving Finnova platform. Both in-house and external software de- etc.). Effectiveness is thereby taken into account in further Software architecture – it will be used to integrate future developments internal to them the best possible competitive velopment departments and software companies can thus development. Finnova’s experience will be incorporated Finnova based on new technologies, like the Front Suite, as well as partner products advantage. We would be happy to create solutions more efficiently and with less risk. into integration or in-house development projects in the in the Expert Suite. The FIL has been conceived in such a way that requirements provide you with an offer for the form of the Quality Assurance Framework for testing in such as efficient interface management with corresponding versioning, integra- Finnova Banking Software and its the future, and customers and partners using the Finnova tion of various technologies, operability, performance and authentication are ful- operation, also as a complete plat- Solution Suite will reap the benefits. filled. Across the products of the Finnova Solution Suite and the associated services form service from a single source offer, Finnova enables the connection and integration of customised solutions on upon request. >> Certified Runtime the basis of the FIL. These may be customised developments via the Development For the operation of the Finnova platform. The operation Framework or connected third-party products or services via Solution Integration. should be simpler, more efficient and more cost-effective In order to provide product- or customer-specific connections with compara- in future – whether in the productive or test environment, ble features more quickly, Finnova Services also offers a Business Service Adapter. in the data centre or in a third-party cloud environment. It During a transitional period, the adapter is based on the traditional Finnova inter- will be possible to connect new solutions to the Finnova face technologies. It will then gradually be adapted to the emerging FIL Integration Banking Software more simply and cost-effectively, and to Services without affecting connected third-party systems. operate them with a high level of performance and stability.

Framework for bank migrations and mergers With the framework for bank migrations and mergers – including analysis and customising package – Finnova Services can help Finnova banks to merge on the same technical platform, risk-free. swissregiobank, Bank CA St. Gallen and Sparkasse Wiesendangen have done just that and are now operating under the name acrevis Bank: a single source for software expertise and specialists who can identify differences in parameterisation and data storage and interpret them technically. 62 63

LICENCE AND PRICE MODEL

Standard functions Finnova is concluding new contracts for the standard functionalities of the Finnova Banking Software (= Expert Suite) in the rental model. This also feeds our maintenance and enhancement budget, from which the maintenance of the software and some of the change requests can be implemented. Licencing in the case of these new contracts occurs on the basis of a combination of FTE (full-time equivalent) and the balance sheet total of the bank.

Additional functions FEE LICENCE EXTENSIONS FEE-BASED LICENCE EXTENSIONS The additional functions cover specific business requirements, which the banks request in accordance with their individual business model. They are divided into options and FIL Integration Services. Finnova decides which further developments Functions that, for example, need to be de- are being implemented in the standard soft- veloped by Finnova due to regulatory or le- ware. These do not impact the amount of rent gal provisions (tax, compliance and market to be paid. infrastructure requirements) and that exceed OPTIONS FIL INTEGRATION SERVICES the maintenance and enhancement budget are implemented as fee-based licence extensions. These functions are mandatory for Licencing of the options can also occur on an The Finnova Integration Layer (FIL) is the the banks so that the overwhelming major- FTE basis. However, transaction-based or vol- technological basis for the integration of third- ity of the Finnova Community can operate ume-based calculation bases can also be ap- party applications. It comprises small, inde- their banking business in Switzerland in com- plied. In addition to the licence fees, an annual pendent integration services that cover spe- pliance with regulations. In addition to the li- maintenance fee is charged on the options. cific use cases. The individual FIL Integration cence fees, a maintenance fee can also be In future, options will also be offered alterna- Services can be licenced as products. Various charged here. tively in the rental model. metrics and licencing models are used here as well. Depending on the metric, the costs may, for example, be based on FTE, volume or number of business cases. Different licencing models are also possible – business licence, licence or rent.

Customised solutions Across the products of the Solution Suite and the offer of Finnova Ser- vices, Finnova enables both the development and connection/integration of customised solutions. Custom requirements of individual banks can thus be effectively implemented. PB_1709e

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Publisher The information presented in this product overview is a snapshot of the Finnova Finnova Banking Software at the time of printing, with varying levels of detail and spec- Visual implementation ificity depending on the chapters. This information is expressly not an offer for BrandNew AG, Zurich acquisition of user rights for the Finnova Banking Software or any related ser- Text vices of finnova AG Bankware. This product brochure is intended exclusively Finnova for information purposes. Photography Kilian Kessler, Zurich Photo agencies Getty Images, Shutterstock, iStockphoto