1. MEMBER OF PKF NORTH AMERICA, AN ASSOCIATION OF LEGALLY INDEPENDENT FIRMS © 2011 Wolf & Company, P.C. The Future of Technology in Financial Services Matt Putvinski, CPA, CISA, CISSP

2. About Wolf & Company, P.C. Established in 1911 Offers Audit, Tax and Risk Management Services Offices located in: –Boston, MA –Springfield, MA –Albany, NY Over 180 professionals Committed to industry excellence As a leading regional firm founded in 1911, we provide our clients with specialized industry expertise and outstanding service. 2

3. Wolf’s Risk Management Services Risk Management Services IT Assurance Services Internal Audit Services Compliance Services WolfPAC Solutions Provide services to over 200 financial institutions Diverse experience WAN & LAN Network Engineering Regulatory and Legal Services Various Industry Operations IT Operations and Management Software Development Financial Accounting Information Security Commitment to industry excellence with certifications as CPA, CISA, CIA, CISSP, CRCM, and JD.

4. What IT Worries About Integrity of Data – How accurate are the financial transactions being generated? Confidentiality of Data – Customers trust you with their information. Are you protecting it? Availability of Data – Will you be able to access data in the event of a disaster? Strategic Planning – Is technology effective and being used efficiently?

5. The Ultimate Disruptor

7. Why are Banks so slow to adopt?

8. What do consumers want? Vs.

9. What do consumers want?

11. Creating Revenue Opportunities

12. So many payment options…

14. Virtual Services Offered Today Virtual Currency Mobile Payments Personal Financial Management Mobile Banking Online Banking

15. Do we need Branches?

16. Server Room of the Future 16

17. Behavioral Analysis 17 thefinancialbrand.com/41043/bank-real-time-marketing-study

18. Behavioral Analysis 18

19. 19 “ As we know, There are known knowns. There are things we know we know. We also know There are known unknowns. That is to say We know there are some things We do not know. But there are also unknown unknowns, The ones we don't know We don't know.” — Donald Rumsfeld, Feb. 12, 2002, Department of Defense news briefing Security Initiatives

20. Centralized Risk Management Systems Provide ability to accept risk and illustrate effective due diligence Develop a Risk Management Culture Enhanced Board Reporting Improve Risk Management…

21. 2015 Technology Predictions http://thefinancialbrand.com/46189/2015-top-banking-trends-predictions-forecast-digital-disruption/

22. 1.Using Customer Analytics to Drive Contextual Experiences 2.Expedited Deployment of Digital Delivery 3.Mobile-First Design 4.Increasing Digital and Social Selling 5.Mass Market Acceptance of Mobile Payments 2015 Technology Predictions

23. 6.Focus on Security and Authentication 7.Industry Consolidation 8.Enhanced Customer Incentivization 9.Investment in Innovation, Incubation and Uncommon Alliances 10.Increased Impact of Digital Disruptors 2015 Technology Predictions

24. Understand how FinTech impacts the future Create enhanced channels for customers Increase usage of Behavioral based systems Develop more efficient compliance systems Summary – Community Banks need to….

25. QUESTIONS? Matthew J. Putvinski, CPA, CISA, CISSP Director – IT Assurance Services Wolf & Company, PC 617-428-5479 mputvinski@wolfandco.com twitter.com\mattputvinski linkedin.com\in\mattputvinski www.wolfpacsolutions.com Thank You!