1. Automating the Processing of Verification of Income Verification of Employment Verification of Unemployment Compensation February 2012

2. Background and History Founder and President of an Equipment Leasing Brokerage Firm Vice President of Consulting for a Software Developer and VAR Developed web-based portals and applications that integrated with the software that we were supporting Developed and published Business Intelligence dashboards and reports Created self-service customer portals for reporting Highly-talented team of developers that were all former Microsoft employees (and Microsoft certified) to develop and implement this solution

3. Meeting Objectives Identify the Problem Processing Verifications of Employment, Income and Unemployment Compensation is a MANUAL process According to FinCen, Mortgage Fraud costs lenders between $4 and $10 BILLION each year, mainly due to application fraud Identify the Market Opportunities for Automation ESC Strategic Plan Proposal Value Proposition

4. Identify the Problem Ability to Pay Underwriting Criteria Willingness to Pay Willingness To Pay Traditional Credit Bureau Ability To Pay Manual Process, opens opportunity for fraud Fax request to employer, wait on response Some automated services Employees of only large companies in database Very fragmented EIVS

5. Identify the Market – Public Sector Demographics Social Service Agencies Temporary Assistance for Needy Families (TANF) Supplemental Nutrition Assistance Program (SNAP) Low-Income Housing Tenant Screening Child Support Payment Determination Medicaid Eligibility Unemployment Insurance Benefits

6. Identify the Market – Private Sector Demographics Established Market Employers – Pre-Employment Screening Mortgage Underwriters FNMA/FMCC Requirement Auto Lending Underwriters Credit Card Issuers and Underwriters Credit CARD Act Requirement Property Managers/Landlords – Tenant Screening Insurance Companies

7. Results Summary for Automating Verifications Reduce Fraud Better Underwriting/Faster processing Turn a Manual Process into an Automated Process Reduce or Re-Purpose Staff Strengthen relationships with customers by offering a self- service portal

8. Implementation of the Ability Insights Solution End Result is a PDF Report used to underwrite Ability to Pay Transfer data to Ability Insights secure servers (SAS 70 Type II Compliant data center) Quarterly Wage Data including Employer Information Weekly UI payments and claims Reports are created on AI servers using ESC data Secured-XML Data Connection Build database/web services at ESC facility Data stored on ESC servers but transferred to AI servers specific to that employee/verification Reports are created on AI servers ESC Hosted Solution Data never leaves ESC Reports are created on ESC servers and PDF Reports transmitted securely to AI server

9. How does this relate to the NC ESC Strategic Plan? The Ability Insights Solution will help you achieve your Goals and Strategies while adhering to your Operating Principles: Establish a common vision for ESC. Create a common philosophical vision of ESC that emphasizes working together. Instill the vision into daily practice by all. Strongly encourage communication and coordination across work sections. (Enabling the flow of information inside your organization) Maintain a foundation for high quality service into the next generation. Create an environment through talent management and development that encourages the next generation to stay and grow. (Establishing processes of automation that help ensure the transition to the next generation)

10. How does this relate to the NC ESC Strategic Plan? Raise stakeholder awareness and understanding of our diverse services and products. Increase awareness of all ESC services by the states workforce. (Add new services) Increase the number of customers (employer, employee, partner, stakeholder) using major product lines. (Add new customers and automated product lines). Develop a consistent up-to-date brand and identity for the agency. (AI Solution can be fully and consistently branded a DES product/service) Improve stakeholder access to workforce information and services. (i.e. Demand Driven Data Delivery System)

11. How does this relate to the NC ESC Strategic Plan? Use information technology to better meet and respond to stakeholder needs. ESC is committed to the use of technological solutions to increase convenience for our customers. Our goal is to keep pace with ever changing technical needs to better serve customers, achieve cost efficiencies, and improve resource capabilities. Develop and implement a new automated benefits system that is capable of being modified quickly to meet the emerging user needs and incorporate technological best practices. Increase the service offerings and usage of automated self- services. (Ability Insights Solution) Conduct information services operations in a project-oriented environment.

12. How does this relate to the NC ESC Strategic Plan? Improve performance through defined measures/data-driven decision-making and progress initiatives. ESC has a solid commitment to continuous improvement that provides both consistency of service and flexibility for customers. Our goal is to: Continuously improve resource capabilities in staff utilization, methods and practices, and financial management. Further define, integrate and align performance data and reporting to btter inform our decision-making, planning and development of new intiatives. Increase our relevance/value to customers for all our customer segments through periodic evaluation of services and products. Improve how we train staff, how they access information an dhow they provide services.

13. How does this relate to the NC ESC Strategic Plan? Provide high quality services that meet federal standards and exceed customer expectations. ESC recognizes that successful achievement of its mission is deeply connected to its interrelationships with partners… Develop a better understanding of what customers want and need by developing a variety of feedback tools. Provide technical assistance to the employer community with regard to the use of workforce related information and human resource processes. Disseminate high quality, understandable, timely, and relevant workforce and economic information through various delivery mechanisms including print, web-based applications and presentations.

14. How does this relate to the NC ESC Strategic Plan? Maintain a stable financial foundation to weather economic fluctuations. Replace manual processes with automated processes Deliver services that contribute to a vibrant economy… The rate of change in economic conditions, labor market environment and communication venues requires ESC to constantly evaluate and evolve in the nature and delivery of its products and services. In response to our changing environment, our goal is to serve our customers in the ways they wish to be served while also ensuring the most efficient and effective management of resources.

15. Value Proposition No cost to NC Employment Security Commission Ability Insights will fund the development of the portal and data connection infrastructure Revenue Sharing Agreement Underwriters will pay for the automated reports that help them underwrite Ability to Pay Ability Insights will share in the revenue on a % split. Better Serve your Customers with Better Services and Products

16. Questions Questions? Demonstration of the Solution

17. Contact Info Wes Adams Founder and CEO Ability Insights (919) 801-2434 www.abilityinsights.com