Next Generation Banking Platform Retail & Commercial Banking Table of Contents

WAVE LEADER 2020

Digital Banking Processing Platforms (Retail Banking) Digital to the Core Next Generation Banking Platform Retail & Commercial Banking Table of contents

Viewpoint...... 3 Cloud-based, customer-driven and open to innovation...... 5 Open Banking amplifies the importance of APIs...... 6 Cloud first...... 7 Build the next-generation bank...... 8 Fusion Essence key components...... 9 a. Advanced Core Capabilities b. Digital Engagement c. Data & Analytics d. Cloud e. Platform & APIs Finastra Services...... 11 Find out more...... 13

2 Finastra Digital to the Core Next Generation Banking Platform

“Banks that invest in AI could boost their revenue by 34% and employment Viewpoint by 14% by 2022.”

Realizing the full value of AI Accenture 5 Key components Banking is experiencing a once-in-a-lifetime shift

Disruption is happening across the value chain, from customer engagement to onboarding, lending, payments, and alternative financing.

There has been a seismic shift in financial services over the last decade, driven by significant changes in the use of next-generation technologies such as cloud computing, artificial intelligence (AI), machine learning (ML) and predictive analytics. The impact of COVID-19 has accelerated demand with banks now pushing forward on projects that were, until recently “in the slow lane”.

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3 Finastra Digital to the Core Next Generation Banking Platform

Viewpoint Customer Driven Open Banking & APIs Cloud first Fusion Essence Finastra Services

“My mission is to build the best digital banking system for this decade, leapfrogging both traditional and new vendors with technology and functionality.” Anand Subbaraman Higher customer expectations Customers have become accustomed General Manager – Retail Banking to immediate, highly personalized Dramatic Finastra 5 Key components Fusion Essence and accessible services from other industries, and expect banking to deliver a similarly slick and seamless experience. changes are The pandemic has highlighted the need for change; exposing banks’ shortcomings and driving improvements across their redefining operational landscape.

New players are focused on differentiation the operating Challenger banks and fintechs are disrupting traditional business models by offering agile, alternative banking channels model for and customized products, with superior digital customer engagement compared to most established banks. banks.

4 Finastra Digital to the Core Next Generation Banking Platform

Viewpoint Customer Driven Open Banking & APIs Cloud first Fusion Essence Finastra Services Open for innovation

Digital end to end capabilities, Analytics, Open Banking, fully API enabled and harnessing the power of AI and ML are the essential elements that enable banks to deliver a next-generation banking experience.

Key factors to deliver a next-generation banking experience 5 Key components Fusion Essence

Accelerating digitalization - Positivity towards Open Banking less physical, more digital Open Banking is now the de-facto standard 1 Open 2 3 Digital Now, more than ever, banks recognize for banks globally. Combined with banking Cloud customer the importance of increasing their digital innovation, it is unlocking opportunities engagement capabilities and accelerating their digital for banks to develop new services, transformation end to end. improve customer experience, drive new revenue streams and deliver a sustainable The recent pandemic has exposed service model for underserved markets. shortcomings: poor digital experience, fragmented operations and struggles Open Banking continues 4 5 End-to- 6 with security and the challenges of home APIs end digital Analytics working. Banks are re-assessing their to grow rapidly and has capability services and operating models to deliver a surpassed one million more streamlined digital experience from the inside out and vice versa. customers who are already connecting their bank accounts with trusted third parties.1

5 Finastra Digital to the Core Next Generation Banking Platform

Viewpoint Open to innovation Open Banking & APIs Cloud first Fusion Essence Finastra Services

“In the UK alone, open Open Banking amplifies the importance of APIs banking saw 409 million API calls made to banks

from third-party providers in Open Banking has drawn renewed attention 2 Ultimately, open banking March 2020.” to APIs as a way of delivering substantial benefits to consumers, for example, enables consumers to making it possible to aggregate financial make better financial products in one place, provide insights into spending patterns, make savings decisions, understand recommendations and automate parts of their financial position and the decision-making process. explore alternatives. 5 Key components Fusion Essence

Open Banking providers in 2019 70 134 account providers third party providers

204 regulated entities regulated with atleast one proposition providers 61 live with customers

API calls within the ecosystem demonstrating the vibrancy and frequency of customers using 1.25bn Open banking

6 Finastra Digital to the Core Next Generation Banking Platform

Viewpoint Customer Driven Open Banking & APIs Cloud first Fusion Essence Finastra Services Cloud 1st! Cloud is an increasingly attractive option for banks.

Cloud addresses the challenges of Cloud benefits to banks decreasing margins, increased cyber threats, higher cost of ownership and tougher regulations. The need to innovate and keep pace with new entrants is also driving banks to adopt cloud technology. 5 Key components Fusion Essence

By providing “on demand” access to Cloud services market to hardware and software resources, cloud Operational Speed of grow by +17% in 2020 computing drives down expenditure, Scalability Efficiency/ Innovation Market Agility accelerates innovation and provides a Lower TCO far more flexible environment to deliver $266bn business or compliance requirements. 3 Total value worldwide Cloud banking is a highly scalable model that enables business agility and greater Increase Access to Predictability Greater Business Evergreening access to innovation, without Ecosystem of Costs Security Focus compromising on security; all in a leaner reduced cost operating model.

7 Finastra Digital to the Core Next Generation Banking Platform

Viewpoint Customer Driven Open Banking & APIs Cloud Fusion Essence Finastra Services Build the next-generation bank

Established players and challengers have a once-in-a-generation chance to transform the industry, leveraging the convergence of cloud, open banking and advanced technologies that increase their digital capabilities.

Together, these trends will evolve a new type Finastra is changing the way modern of retail experience. Banking that anticipates banking software is built and distributed, customer needs, offers a personalized, by opening up our systems across Retail, seamless user experience and is optimized Commercial Banking, Payments, Lending, 5 Key components Fusion Essence for the challenges of remote working. Corporate Banking and Treasury and Capital Markets. Banks need a scalable platform to address their evolving needs

8 Finastra Digital to the Core Next Generation Banking Platform

Viewpoint Customer Driven Open Banking & APIs Cloud first Fusion Essence 2020 Finastra Services Fusion Essence 2020 Next-generation banking is at the heart of our digital world

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Advance core Fusion Platform Capabilities Essence and APIs

Hyper personalized customer and Cloud branch experience

Data and analytics

9 Finastra Digital to the Core Next Generation Banking Platform

Viewpoint Customer Driven Open Banking & APIs Cloud first Fusion Essence 2020 Finastra Services Fusion Essence is is designed around 5 key elements:

Hyper-personalized Advanced core customer and Analytics banking capabilities branch experience capabilities

Digital to the core, Fusion Essence is a next Fusion Essence enables Banks deliver a Fusion Retail Analytics delivers a 360° generation advanced core banking solution highly personalized customer experience to customer view in a single dynamic that is Customer Centric, Cloud enabled attract and retain business. With its Digital dashboard, with performance metrics and and comprehensively covers Retail and Customer Onboarding app it delivers a data insights always at the bank’s fingertips. Commercial banking whether conventional seamless omnichannel experience, by way Available in Azure Cloud and On Premise or Islamic. of its persona-driven applications, such as: Fusion Retail Analytics offers a common 5 Key components Fusion Essence data model and a set of pre-packaged • Customer onboarding dashboards, leveraging Microsoft Power BI • Online and mobile banking for visualizations. • Digital branch

Cloud first Platform and API

Fusion Essence Cloud covers Retail and Through the use of an extensive suite Commercial banking whether conventional of Open APIs, Finastra is opening up its Islamic, Personal or SME; and is deployed on core systems to its innovation platform - Microsoft Azure Cloud with all its inherent FusionFabric.cloud, and other third parties. security and certification. The use of Cloud Combined with Finastra’s Digital Banking enables a level of efficiency and security capabilities it enables the quick extension of previously unachievable with traditional On a bank’s ecosystem that translates to new Premise infrastructure operations. It means opportunities for revenue growth. Banks can optimize resources, minimize effort and scale up and down as required. Watch the video

10 Finastra Digital to the Core Next Generation Banking Platform

Viewpoint Customer Driven Open Banking & APIs Cloud first Fusion Essence 2020 Finastra Services Finastra Services Finastra Services provide guidance for all phases of a bank’s lifecycle whether it’s a new bank coming to market or an established bank with complex legacy structures to transform. 5 Key components Fusion Essence Global services

Go digital with Fusion Essence and Finastra services

When it comes to going digital, Finastra Services offer guidance for all phases of the bank lifecycle, from new banks just launching into the digital banking sphere to established, legacy banks with more complex structures to transform.

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11 Finastra Digital to the Core Next Generation Banking Platform

Viewpoint Customer Driven Open Banking & APIs Cloud first Fusion Essence Finastra Services Finastra is unlocking the power of finance for everyone Meeting the demand for digital-first customer engagement by creating a platform for open innovation in the world of financial services. Find out more

Infographics Reports/White Papers

Cloud: the digital New-Normal of A digital transformation Challenger banks: Reshaping How banks can accelerate Cloud momentum is building Fusion Essence 2020 is 5 Key components Fusion Essence agenda post COVID-19? customer onboarding roadmap for banks customer experience and improve onboarding for a in Retail Banking. The digital recognized as a leader by Post Covid-19 post-pandemic world agenda post COVID-19? Forrester

Webinars and Podcasts On demand:

Build the bank of the Cloud Momentum is The future of future in 100 days building. Are you ready? Digital Banks A step guide on how to launch COVID-19 is accelerating the Anand Subbaraman from a bank, steps it takes to launch trend towards a new operating Finastra explains how a bank of the future within platformification is evolving Cloud: Enhancing the Challenger banks: Cloud banking - model that delivers highly 100 days with next generation from its original focus and entire bank’s value chain Reshaping customer Innovation without relevant customer experience, banking in the cloud. talks about the future of digital experience limits provides easy access to innovation and reduces cost and retail banking. of operations without the burden of managing security and infrastructure.

13 Finastra Digital to the Core Next Generation Banking Platform

Viewpoint Customer Driven Open Banking & APIs Cloud first Fusion Essence Finastra Services Index

1. https://www.openbanking.org.uk/about-us/latest-news/open-banking-adoption-surpasses-one-million-customer-mark/) 2. https://www.openbanking.org.uk/open-banking-2019-review/ 3. https://www.gartner.com/en/newsroom/press-releases/2019-11-13-gartner-forecasts-worldwide-public-cloud-revenue-to-grow-17-percent-in-2020 4. https://www.accenture.com/gb-en/insights/artificial-intelligence/roi-artificial-intelligence 5. https://www.accenture.com/gb-en/insights/strategy/ai-the-momentum-mindset 6. https://www.youtube.com/watch?v=c_wIBFaMCho&feature=youtu.be 7. https://www.pwc.com/us/en/industries/financial-services/research-institute/top-issues.html 8. https://www.pwc.com/us/en/industries/financial-services/research-institute/top-issues/digital-transformation.html 9. https://www.pwc.co.uk/industries/financial-services.html 10. https://www.pwc.co.uk/industries/financial-services/disruption-advantage-currency-collision/digital-banking-ecosystem.html 11. https://marutitech.com/ways-ai-transforming-finance/ 12. https://builtin.com/artificial-intelligence/ai-finance-banking-applications-companies

o nara ororae eaarer Finastra is building an open platform that accelerates collaboration and innovation in fi nancial services, creating better 4 Kingdom Street experiences for people, businesses and communities. Supported by the broadest and deepest portfolio of fi nancial services Paddington software, Finastra delivers this vitally important technology to fi nancial institutions of all sizes across the globe, including London W2 6BD 90 of the world’s top100 banks. Our open architecture approach brings together a number of partners and innovators. United Kingdom Together we are leading the way in which applications are written, deployed and consumed in fi nancial services to evolve T: +44 20 3320 5000 with the changing needs of customers. Learn more at fi nastra.com

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