Microsoft in Financial Services

Erick WatsonLead Partner Marketing ManagerFinancial ServicesMicrosoft Corporation

Growing absolute revenue size Qualitative shift in our business – into more and more “mission critical” transactional rolesFocus on Industry Solution to solve real Business Problems People are noticing

Analysts, customers, partners

Increasingly influential in Microsoft’s core technology, marketing and product directionIncreasing importance of FS Industry partners

Global Business in FSI

Microsoft business

Massive amount of innovationOPERATING

SYSTEMS SECURITY IT OPERATIONS

COLLABORATION ENTERTAINMENT & DEVICES

BUSINESS PLATFORM

APPLICATION PLATFORM

ONLINE

V2

Santander – common payment backbone 62m message p/day, 1156 tps London Stock Exchange – TradElect 3000 trades per second; 10ms down from 140ms UniCredit (HVB) – 996 node cluster - reduced time to market for structured derivatives cross asset SWIFT - Gold Certified Central Bank of Spain - High Value Payments CheckFree – 1000 tps and 24% less TCO Nasdaq – Market Data Service handles 5,000 tps at market openGaranti Bank - Turkey’s Garanti Bank Reduces Mainframe Loads Using SQL Server 2005 SolutionBanco Azteca - 64-bit Platform for Bank’s Core Transactions DenizBank – Migrates Core Banking System to SQLServer 2005 (64 Bit) and .NETSAP Core Banking Benchmark 8,279,000 postings to bank accounts per hourNationwide (UK) - Basel II Compliance Solution with SQL 2005 consolidating 80 different systems data & storing for 7 yearsFiserv CBS - Banking Software Scales to 10,000+ Concurrent Users with SQL 2005

Citi - Market Montage Solution Supports 200,000 msg per sec (70tb on SQL and growing)Citi – CitiVision Integrates 270 Different Sources of Information for 12,000+ Global Investment Bankers Citi - Corporate and Investment Banking Develops New Digital Identity SolutionEquifax - Equifax Sees 14 Percent Lower TCO Deploying Supercomputers on Windows Instead of Linux Bank of Montreal: 18,000 users on .NET Smart Client for Branch (.NET Framework) Merrill Lynch: - High-Performance Database Helps Brokerage House Position for Future GrowthBank of America automates customer call center – 18,000 agents using Microsoft Customer Care Framework (CCF) Equens - 25 TB Payment System JPMorganChase – equities trading platform Allstate – Producer Connectivity network leverages .NET while helping enable Policy Management solution in record time.Barclays Capital Trade and Positioning System processing 200 trades/sec up to 1000 trades/secReuters - Reuters Equities Research High Availability for 10 Tb on 64bit

Mission Critical Deployment in FSIMission Critical Deployment in FSI

Mega trends in Banking:

Industrialization collaboration & partnering across supply chain infrastructure & applicationEverything is a platformOperational LeverageCost reductionStandardsCommodity Hardware

Mega trends in Banking:

Sales and ServiceInfluence of the consumer Social and community networksSustainable Differentiation?Unexpected mediaBanking Mash-upSales management & performance trackingOptimized user experience

Mega trends in Banking:

PricingValue at a personalized levelSustainable Competitive Advantage?Free is the new price?Address new entrantsDriven by BI and Customer Knowledge analytics bundling

Mega trends in Banking:

Mergers and AcquisitionsScaleProduct diversityBifurcation: small number of large banks, large number of small banksCustomer needs: cross border loans and investmentsBest of breed platformsSOA and Interoperability

So what is a solution?In MSFT speak

Horizont

al

Vertical

MSFT productSQL, BTS, Office, Server etc

PartnersLOB Apps, AML app, portfolio pricing, OMS, Core Policy etc

Frameworks, Accelerators, Adapters, Guidance, Bundles“Assets that reduce project

cycle times”

Industry Solutions FocusChannel Renewal

Risk Management

and Compliance

Insurance Value Chain Payments Advisor

Platforms Core Banking Investment Management

Branch(Teller and

Seller)

Customer Knowledge

Doc Manage and Records

Retention

Channel Sales and Service

Claims Processing

Payments Services Factory

Advisor Desktop/Portal

Priority focus areas for FY’08 programmatic build our and execution as per WWSMM

Loan Origination

Mobile

Audit and Controls

Treasury and Cash

Management

Lending Systems

Investment Analytics

Trade Compliance

Priority focus areas for FY’08 programmatic build out

Call Center

Internet

ATMs

Risk Analytics

Business Continuity

Management

Security and Privacy

Management

Underwriting

Core Policy Systems

Product Development

Payments Delivery Channels

Clearing and Settlement

Company/Industry

Provided Serv.

Advisory Management

Client Data File

Deposit Systems

Corporate and Wholesale Banking

Statement of Production

Credit Decisioning

Trade Compliance

Investment Services

Trade Floor in-a-box

Reinsurance

The Face of SOAFinancial Services OBA Component Library

90+ OBA componentsbased on both common financial schemas and standard web service protocolsaccelerate both custom development and partner purchased solutionsIn line with FS business process payloadsThe components are built in a composite way. This enables customers to assemble OBA components into existing or new business processeshttp://msdn.microsoft.com/FinServArch

Included in the MSDN site• Architecture Guidance – a set of whitepapers that are real world scenarios driven by the financial industry.• Application Building Blocks -  An installable code base, message schemas and install guides will jump start your

development effort• Hands on Lab –Virtual PC image that allows customers to jump right in!• Rich Media – WebCasts and PodCasts

What does the future look like?EFMA banking advisory council:

Significantly lower cost baseMuch greater customer-centricityProcess excellenceEasier cross border operationsTruly integrated customer and channel experienceAny sales or service request in any channelSimpler product and service value propositions

Our vision of the Bank of the Future

Our Vision of future state

Business Value of IT

Dynamic

IT is astrategic

asset

Rationalized

IT is abusiness enabler

Optimizing Your Environment

Standardized

IT is an efficient cost

center

IT is a cost center

Basic

People, Process, Technology

Dynamic Applications

Core Infrastructure Application Platform

Business Productivity

Identity & Access

Security

Networking

Management

Virtualization

User Experience

Business Intelligence

SOA & BPM

Data Management

Development

Search

Business Intelligence

Unified Comms

Collaboration

Ent. Content Mgmt.

Dynamic Infrastructur

e

Dynamic Business

Realized through Capabilities and Optimization Models

Rationalized

IT Is A Business Center

BPI Optimization Model

DynamicIT Is A Strategic Asset

Standardized

IT Is An Efficient Cost Center

BasicIT Is A Cost Center

Integrated, software powered business communications

Federated collaboration outside firewall

Basic e-mail & traditional phone

Content on files shares and poor discoverability

File share based collab and ad-hoc teaming

Federated documents and records mgmt withintegrated search

ECM

Real-time, strategy-driven closed loop analysis

Data silos & manual analysis

Collaboration

Unified information access infrastructure

Simple keyword search of web and documents

Search

UCBI

identify where

you are

identify where you

want to be

Business Productivity

CRM @ Raymond James

4600 advisors, 80% of which are independentThe company estimates that, at one time, more than 2,500 different third-party databases were in use. Benefits

Improves efficiency across branch offices Offers easy user adoption Enhances customer service Ensures compliance

CRM @ EDS Solcorp

Scalable, web-based enterprise solutionwill enable agents to have 360º view of their customers’ portfolioBenefits

improve communication with customerstrack applications through their lifecyclesanalyze business data access real-time reports – all from their familiar desktops

User experience - Silverlight

http://silverlight.net/community/gallerydetail.aspx?cat=4&sort=2#vid91

Microsoft Silverlightcross-browser, cross-platformimplementation of .NET for building and delivering the next generation of media experiencesrich interactive applications

Online Banking – the next wave of UI

Surface

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The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after

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