TechnoSolve Limited The Time is Now Shifting Banking I.T. Mindset from Reactive to Proactive 1

TechnoSolve Limited The Time is Now: Shifting Banking I.T. Mindset from Reactive to Proactive Robert Kor, November 2005 KOR Kee Yee, Robert ( ) Managing Director TechnoSolve Limited 2

The Time is Now: Shifting Banking I.T. Mindset from Reactive to Proactive Robert Kor, November 2005 EDP Department 3

TechnoSolve Limited The Time is Now: Shifting Banking I.T. Mindset from Reactive to Proactive Robert Kor, November 2005 I.T. tells Operations what they can or cannot do. Operations dictates exact specs on what applications I.T. should be building. I.T. supports whatever Operations want it to do – its just a SERVICE I.T. does not play significant role in business strategies. I.T. is PASSIVE 4

TechnoSolve Limited The Time is Now: Shifting Banking I.T. Mindset from Reactive to Proactive Robert Kor, November 2005 Technology Hardware Bandwidth $$: Power : $$: Power : I.T. Development Frozen requirements Passive Play catch up 5

TechnoSolve Limited The Time is Now: Shifting Banking I.T. Mindset from Reactive to Proactive Robert Kor, November 2005 I.T. should be more business oriented 6

TechnoSolve Limited The Time is Now: Shifting Banking I.T. Mindset from Reactive to Proactive Robert Kor, November 2005 We need a change. We cannot afford to be passive and reactive anymore. 7

TechnoSolve Limited The Time is Now: Shifting Banking I.T. Mindset from Reactive to Proactive Robert Kor, November 2005 How do we build applications that are proactive and anticipate changes ? 8

TechnoSolve Limited The Time is Now: Shifting Banking I.T. Mindset from Reactive to Proactive Robert Kor, November 2005 Although details changes, theres always some level of consistency Dont implement for a specific instance Turn volatile parts into parameters of generalize process 9

TechnoSolve Limited The Time is Now: Shifting Banking I.T. Mindset from Reactive to Proactive Robert Kor, November 2005 Mortgage Loan First 12 installments – interest rate P-2.7% Afterwards interest rate P Mortgage Loan First 12 installments Fixed Interest Rate 1% 13 – 36 installment P-3.75% Afterwards P-2.7% Personal Loan 0.25%$20,000 - $29, %$10,000 - $19, %<=$9,999 Monthly Flat RateFinance Amount 10

TechnoSolve Limited The Time is Now: Shifting Banking I.T. Mindset from Reactive to Proactive Robert Kor, November 2005 I Where I = interest, P = principle amount, r= rate, and t= time =P*rt* 11

TechnoSolve Limited The Time is Now: Shifting Banking I.T. Mindset from Reactive to Proactive Robert Kor, November 2005 Just like that, we have…. Shielded the code from constant change Reuse this piece of code over and over again for different parts of the application Technical concerns like rounding inconsistencies are standardized throughout Initial sacrifice means subsequent need for the same function will enjoy the benefits… Minimize manpower used to modify and test changes 12

TechnoSolve Limited The Time is Now: Shifting Banking I.T. Mindset from Reactive to Proactive Robert Kor, November 2005 Submitter Trans- action Approver 1 Approver 2 13

TechnoSolve Limited The Time is Now: Shifting Banking I.T. Mindset from Reactive to Proactive Robert Kor, November 2005 DB/2 InformixSybase MS SQL Oracle DB/2 Oracle DB Engine Business Logic UI & Authorization Engine 14

TechnoSolve Limited The Time is Now: Shifting Banking I.T. Mindset from Reactive to Proactive Robert Kor, November 2005 DB/2 InformixSybase MS SQL Oracle DB/2 Oracle DB Engine Business Logic UI & Authorization Engine DB Engine 14

TechnoSolve Limited The Time is Now: Shifting Banking I.T. Mindset from Reactive to Proactive Robert Kor, November 2005 DB/2 InformixSybase MS SQL Oracle DB/2 Oracle Business Logic UI & Authorization Engine DB Engine Business Logic 14

TechnoSolve Limited The Time is Now: Shifting Banking I.T. Mindset from Reactive to Proactive Robert Kor, November 2005 DB/2 InformixSybase MS SQL Oracle DB/2 Oracle UI & Authorization Engine DB Engine Business Logic UI & Authorization Engine 14

TechnoSolve Limited The Time is Now: Shifting Banking I.T. Mindset from Reactive to Proactive Robert Kor, November 2005 DB Engine Business Logic UI & Authorization Engine 15

TechnoSolve Limited The Time is Now: Shifting Banking I.T. Mindset from Reactive to Proactive Robert Kor, November 2005 Tying them all together is the… Workflow 16

TechnoSolve Limited The Time is Now: Shifting Banking I.T. Mindset from Reactive to Proactive Robert Kor, November 2005 Not an absolute fix to the current state of the banking IT industry Just another option to think about Generalizations you do today will not work forever – we are bound to miss some factors somewhere Instead of changing N number of places, change only ONE engine. Change instantaneously enjoyed by all Making software development management easier 17

TechnoSolve Limited The Time is Now: Shifting Banking I.T. Mindset from Reactive to Proactive Robert Kor, November 2005 Increase customer sophistication Faster turnaround time Fiercer competition Technical advancement Globalization Must focus on RISK 18

TechnoSolve Limited The Time is Now: Shifting Banking I.T. Mindset from Reactive to Proactive Robert Kor, November 2005 Basel II Shifting from management of operations to management of risk 19

TechnoSolve Limited The Time is Now: Shifting Banking I.T. Mindset from Reactive to Proactive Robert Kor, November 2005 How to be proactively building applications with RISK management in mind? How do you add on to your application to cater to RISK management requirements without affecting the business logic previously written? How can you seamlessly integrate into one working application? The challenge: Questions to ponder 20

TechnoSolve Limited The Time is Now: Shifting Banking I.T. Mindset from Reactive to Proactive Robert Kor, November 2005 Shifting from reactive to proactive IT is nothing groundbreaking Current practices in Banking IT will quickly be unsustainable BUZZWORDS: Philosophy similar to CMM Level 5, Six Sigma and TQM Learn from the past Proactively anticipating what the business will need. Conclusion – Recap 21

TechnoSolve Limited The Time is Now: Shifting Banking I.T. Mindset from Reactive to Proactive Robert Kor, November 2005 TechnoSolve International Banking System (TIBS) Product Suite Core BankingRisk ManagementComing Soon…. Customer Profile (CIF) Central Liability Collateral Retail Banking Teller Platform Loans General Ledger UI Engine Security Manager Override Module Market Risk Engine Credit Risk Engine Operational Risk Engine Treasury Trade Finance Shares and Stocks Trading Electronic Document Management Internet Banking Portfolio Management Customer Relationship Management Wealth Management TechnoSolve International Banking System (TIBS) 22

TechnoSolve Limited The Time is Now: Shifting Banking I.T. Mindset from Reactive to Proactive Robert Kor, November 2005 Contact us: TechnoSolve Limited Tel Fax Thank you 23