1. Technological Challenges in Banking Operation

2. 2 © 2005 i-flex solutions ltd. All rights reserved.

3. 3 Percentage of respondents (one of top 2) What will be the two primary drivers of your IT strategy in 2005*? Efficiency: using IT to improve operational efficiency Cost control: driven by immediate need to cut cost Business growth: using IT to support revenue growth Business and IT strategy alignment 0% 10% 20% 30% 40% 50% 60% 70% Q3 2004Q2 2005 Stud y *Select top two / Q2 2005 study question was in respect to 2005 IT investment priorities and budget trends Cost control is again dominating IT strategy in 2005 as institutions need to control expenses to expand margins, however IT business alignment also increases with strong focus on IT governance. Source: Dataquest 2005

4. 4 © 2005 i-flex solutions ltd. All rights reserved. Challenges Facing The Financial Services Industry Globalization Consolidation The “Perfect Information Market” Increased Competition Regulatory Complexity Non-Traditional Players Rising Customer Expectations

5. 5 © 2005 i-flex solutions ltd. All rights reserved. Changing Business Environment Complex & highly inter-dependent products & services Information consistency Superior customer experience Differentiated banking products Multi-dimensional MIS & reporting

6. 6 © 2005 i-flex solutions ltd. All rights reserved. Key Business Priorities for Financial Institutions Grow top line Customer acquisition and retention Rapid development & deployment of new products Growth Efficiency Reduce operational costs Reduce IT maintenance costs Simplify business structures Resilience Responsiveness to rapidly changing market requirements Reduce overall risk exposure Compliance with all regulations

7. 7 © 2005 i-flex solutions ltd. All rights reserved. Drivers For Change – Leveraging Technologies SOA – Service Oriented Architecture BPM – Business Process Management Centralized Distribution Channels Data Integration & Management

8. 8 © 2005 i-flex solutions ltd. All rights reserved. Siloed approach & its consequence

9. 9 © 2005 i-flex solutions ltd. All rights reserved. SOA will boost Bank’s competitiveness Business Component Identity Purpose Interfaces Business Component Identity Purpose Interfaces SERVICE ORIENTED ARCHITECTURE Reduced time to market Lower cost for new product & service offerings Modularity of the underlying business Ability to deliver customer focused experience (consistency) Flexibility & Interoperability Simple and less expensive application maintenance Reduced operational risk Leveraged channel capabilities Incremental deployment

10. 10 © 2005 i-flex solutions ltd. All rights reserved. Model, simulate, automate, execute, monitor, and optimize end-to-end business processes Business Activity Monitoring Business Rules Engine Modeling & Simulation Workflow & Automation BUSINESS PROCESSES MANAGEMENT SERVICE ORIENTED ARCHITECTURE ACCOUNT OPENING LOAN ORIGINATION RISK MANAGEMENT CUSTOMER ACQUISITION Core Banking Transaction Processing BUSINESS PROCESS MANAGEMENT

11. 11 © 2005 i-flex solutions ltd. All rights reserved. Channel neutrality

12. 12 © 2005 i-flex solutions ltd. All rights reserved. Data Integration & Management

13. 13 © 2005 i-flex solutions ltd. All rights reserved. Data Integration & Management Data integration strategy.. FIN CRM Legacy System External System C/S Core System HR DATA INTEGRATOR OPERATIONAL DATA META DATA ANALYTICAL DATA MART BUILDER DWH creation DWH management Data Marts DM CUSTOMER ANALYTICSCUSTOMER INSIGHTSCRMRISK MANAGEMENTPROFITABILITY BI BI Solutions

14. 14 © 2005 i-flex solutions ltd. All rights reserved. IT OPTIMIZATION FLEXIBLE BUSINESS Proposed Architecture for the Transformation SERVICE ORIENTED ARCHITECTURE BUSINESS PROCESS BUSINESS RULES WORKFLOW MODELLING MODELLING CENTRALIZED DISTRIBUTION DATA MANAGEMENT BUSINESS COMPONENT MODULARSCALABLEINTEROPERABLE

15. 15 © 2005 i-flex solutions ltd. All rights reserved. The new financial services organization

16. Thank You