Collateral Management Meeting emerging management needs

CGI TRADE360 BENEFITS When a customer says, “I need the bank to provide Commodity trade finance is an important growth market for • Collateral functionality—the rules and parameters that structured/commodity financing based on complex banks globally. Emerging market economies in Latin America, drive the manipulation of the underlying collateral details Asia and Africa, combined with a revitalization of infrastructure Customer and market-driven events that define how the system will collateral structures.”... needs in developed countries and the ever-increasing • Totally seamless process manage the underlying assets in accordance with the With CGI Trade360, the bank is able to provide end-to-end worldwide need for agricultural commodities, continue to bank’s collateral management business model • More responsive turnaround on structured/commodity finance deals to support trade and fuel the need for bank financing on a global basis. The ability collateral and related transactions finance products using complex collateral structures. of energy and commodity companies to monetize their • Documentation—ability to create and historically store commodity assets by pledging them to banks will continue to Deal types: required documentation and correspondence related to • Added compliance protection provided make this market segment a vital growth opportunity for banks. collateral positions, calls and collateral agreements; by the bank • Repurchase agreements As global trade in commodities reaches new peaks, banks ability to receive and store customer and third-party • Custom global reporting • Borrowing base have greater opportunities to offer structured commodity trade documentation related to the management of customer finance. However, tougher regulations governing collateralized collateral positions • Integrated with trade finance solutions • Warehouse financing exchange lending mean they also face new challenges. Regulatory and internal pressures place particularly unique Collateral Management High Level Overview • Portal access to traditional and When a bank says, “How can I more effectively requirements on bank commodity and trade finance lending, structured trade finance, open account manage the regulatory compliance and market CGI Trade360’s collateral management capabilities span or supply chain financing the middle office, and operations transaction processing areas. risks of my structured/ commodity finance the entire commodity trade finance and related transaction As a result, they need to manage the complex commodity process—from the preparation of deals and their capture, to Bank business?”... finance credit structures that are put in place to provide their the monitoring and control of the underlying collateral, to the customers with these important and profitable facilities. • Manage collateral and commodity With CGI Trade360’s collateral management features, the bank execution of the related financing and contingent instruments. finance on an integrated platform with has real-time visibility of its entire collateral portfolio, including: CGI provides collateral management functionality that is fully traditional trade, payables, receivables, • Deal and portfolio market integrated with CGI Trade360’s global transaction services financing and management platform. This functionality leverages a global workflow • Portfolio concentration exposure infrastructure, reference data structure and transaction KEY FEATURES • Move collateral management from processing functionality. The collateral management • to collateral value ratios CGI Trade360 collateral management features include fragmented manual deal data to an component of CGI Trade360 is comprised of the following: the following: integrated global database • Reconciliation to physical stock • Deal (collateral)—the total collateral types assigned • Capture and tracking of all collateral management • Enhance and • Denied party screening to a particular facility, e.g., borrowing base, repurchase documentation regulatory compliance capabilities agreement, warehouse exchange finance, etc. • Know your customer and anti-money laundering support • Capture of deal data and details of collateral being financed • Obtain a high degree of straight- • Collateral types—the bank-defined definitions that • Activities to manage the collateral through processing When the bank needs to take its collateral describe the underlying assets pledged as collateral processing to a new level… • Automatic revaluation using market feeds • Gain flexibility in operations and • Collateral details—the bank-defined attributes that define customer service CGI Trade360 provides a global collateral platform with robust individual collateral types and provide the basis for defining • Automatic reconciliation to collateral manager feeds capabilities and streamlined processing, including: how the bank recognizes an asset as eligible collateral • Provide a truly global service • Powerful reporting capabilities, including the ability to • Full deal life cycle support • Reporting—reports that enable the bank to create deal and assemble profiles and ratios in relation to the aggregated • Realize significant operational • Traditional trade and open account support portfolio reports in real time collateral financed efficiencies • Global database for all collateral • Facilitate stronger customer relationships • Customer onboarding Comm’l/ • Gain flexibility to easily deploy • Management of required documents and related events Collateral Market Hedging Finance Documents Standby Guarantee commodity finance processes globally Details Data Positions Request • Flexible definition of collateral data and types LOC • Create capacity to scale the business • Real-time reporting • Gain global visibility of the business Collateral/Transaction Inputs Collateral • Rule-driven market-to-market Trade Loan and its customers Value • Rule-driven commodity pricing CGI Trade360 SaaS by the numbers • Allocation of collateral to members of syndicated/participated • 19 years in operation LOC CGI Trade360 Collateral facilities Positions • 103+ countries Issuance • Local and global workflow and imaging support • 58,900 Corporate Portal Users Guarantee • Denied party screening and exception processing Loan to • 230+ bank locations globally Issuance Transactions Image Collateral Value Ratio Repository Management

• 2.4+ million transaction annual run rate Collateral Output Transaction Output Reporting Reporting Interfaces

2 3 End-to-End Collateral Management

Deal Preparation and Capture Monitoring and Control CGI Trade360 Collateral Deal Processing CGI Trade360 Portal and TPS Processing Portfolio Management Operations and Middle Office

Administration Collateral Management Transaction Processing Risk Control

• Customer on-boarding • Collateral deal creation • Letters of credit • Collateral control • Facility documentation • Collateral management • Loan processing • Collateral revaluation imaging rules • Other transactions • Warehouse management • Facility limit management • Collateral pricing rules • Transaction maintenance • Portfolio reporting • Collateral revaluation • Compliance • Collateral limits rules • Interest and fee • Warehouse limits • Event tracking management • Stock reconciliation • Collateral agreements • Customer service • Management reporting • Control and pricing • Documentation control

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Founded in 1976, CGI is among the largest IT and business consulting services firms in the world. Operating in hundreds of locations across the globe, CGI delivers an end-to-end portfolio of capabilities, from strategic IT and business consulting to systems integration, managed IT and business process services and intellectual property solutions. CGI works with clients through a local relationship model complemented by a global delivery network to help clients achieve their goals, including becoming customer-centric digital enterprises.

For more information about CGI, visit cgi.com/trade or email us at [email protected].

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