FIS Business Strategy

Systematics Business Strategy OverviewRichard Fraser, General Manager – Systematics, EMEA

©2011 Fidelity National Information Services, Inc. and its subsidiaries

Session Agenda

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• Welcome

– Introductions to team

• Business Strategy Overview

• Application Currency – how can we help?

• Key Technology Initiatives

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Core Product Development Market segmentation – Systematics core product suite

• Primarily Tier 1 large financial institutions (LFIs)

– 7 of the top 10 global banks

– 19 of the top 45 U.S. banks

• Support for traditional branches

– Ranging from a few to 5,800+ branches

• Financial institution asset size ranging from $1 million to $2.3 trillion (USD)

• Large financial institutions requiring full service, in-depth products and services

• 128 financial institutions worldwide

Financial institutions choose and remain with the Systematics product suite.

• Full service, in-depth products and services LFIs expect– Robust functionality required by large institutions

– Highly-parameterized functionality, product builds and process automation

– Significantly more processing options than other software packages

• ~3,200 DDA parameters and options (IM)

• ~3,000 savings parameters and options (ST)

• ~3,000 loans parameters and options (in ALS-SM alone)

• True multi-bank, multi-tenancy, multi-time zone capability

• High level of regulatory compliance

• Single source supporting ASP, hosted/managed, utilities, domestic and international

• Ease of customization

– Parameters, source code is included with license

• Superior processing environment

– Designed, developed and tested daily on IBM’s zSystem – highly reliable, scalable platform

– Optimised – not developed elsewhere and ported

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Core Product DevelopmentProduct depth

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Market Challenges

• Economic recovery − Slow

• Regulatory mandates

– Existing regulations and timelinesto implement

– Anticipation of future regulatory climate

• Technology adoption

• Integration of acquired banks

• Management of credit quality

• Management of credit risk

• Margin management

• Increased competition

– New non-bank entrants

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Loans, Deposits, CustomerAEAS Select Auto Reason (AE0296)AMF2 Stop Date (AE0322)Auto Acct Level Overage Process (AE0297)Backdate Analysis (AE0313)Backdate over Draw Transfer/sub insertions (AM0306)Bankruptcy - Phase IIDealer Floor Plan Support: CIP 30EMEA Regulatory - CCD and CCAEscrow Status (AE0304/AM0323)Factory Upgrade - LendingLending RegulatoryLetter for Title/Dealer (AM8263)Processing Efficiencies - LendingRetain Deleted Bill History (AM0296)RoboHelp - Lending Product UpdatesSend statements to multiple parties w/out ID as guarantorsServicing Letters (AM8257)

Shell integration for disbursing to tax and InsuranceShort PayoffShortage PIF, Chg Mo Escrow Pmt (AE0295)Sync ALS-AE and ALS-SM for backup withholdingTracking of deferred financialsMortgage - AE to SM real-time updatesMortgage - Conversion/Acquisition engineMortgage - Investor ReportingMortgage Phase II (AM0094)Mortgage: Not previously escrowing for Tax EA - Yearly processMortgage: Rate change escrow analysisMortgage: Refund escrow overages to savings accountMortgage: SECU AE GAPS

Add source of funds field/accum to transaction - CIP 3600Card Account Management and Cardholder ManagementCardholder Synchronization - MKE CMS Integration Phase IICIP 2524 - IM - Txn Reversal capability from IMI2 screen CIP3305 - ST - Combined Plan XREF File Descendant Processing Deposits Corrections and TX DistributionDeposits RegulatoryDistributions - RMD Waivers Expand GL Code Field (CIP 3196)Factory Upgrade - Deposits Float/Holds on IM LOC w/o Advancing Line -CIP3601Online help to Tax SystemProcessing Efficiencies - Deposits Provide Select Workflow for Back-office ProcessesRoboHelp - Deposit Product Updates Servicing - Plan Status

Core Product DevelopmentFrom collaborative discussion to development in action

Current application processing –Getting you there, keeping you currentAlison Wilkes, Service Delivery Director, Systematics

Adrian Sturley, Senior Consultant, Systematics


We have been listening…..

• Leadership and vision for in country management of Clients

– Learning pain points, frustrations and past experiences

• Building a Management team to trust

• Building the team

– Capability, strength, expertise

• Investment in people, training and process

• Leveraging our global capability to establish core EMEA team

– Building local capability and infrastructure

– Our customers know who to “go to”

– Assured by local presence, harnessed by global experience

• We are making a difference

– Assisting customers with business and technical issues

– Fast, reliable response

– UK/EU regulation is now “owned” and a key part of base consideration

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Application currency

Application currency – an FIS Systematics software delivery model that allows customers to remain application current by receiving and installing incremental base application changes from FIS Core Systematics Development.

• What is ‘application currency?’– Extends the FIS Core Systematics development process by providing ongoing incremental application

changes as they occur within the FIS base application

– Includes all future FIS Systematics corrections, regulatory changes and functional enhancements

– Requires one final application upgrade, after which application currency is maintained by applying only the incremental changes, through repeatable processes at a frequency to suit each Client (usually one per annum)

• Why engage in ‘application currency?’– Shortens time to market for access to the FIS Systematics road map

– Provides opportunity to reduce custom code carrying costs

– Reduces the year-over-year retrofit of regulatory changes

– Leverages existing customer Enterprise Release planning and processes

– Supports ‘back-to-base’ strategic objectives

– Provides the ability to flatten annual budget for ‘upgrades’

– Promotes best practices and cost reductions through repeatable processes

– Enhances communication and promotes strategic alignment between customer and FIS

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Right Time to Upgrade? The debate

• Value Versus Costs Comparison – what's in it for the business?

– New Features and Technologies

– Pain Resolution

– Compliance and Regulatory

• Tools And Processes To Do It Right

– Factory Upgrade

– Supporting Services

There will be a point where the total cost of ownership of running older products will out-weigh the cost of upgrading to a newer version.

Why the FIS Factory Upgrade?

• A FIS sanctioned service

– Performed by the manufacturer

– Performed by product developers, blending skill, experience available in country

– Performed in either your own data centre as a service or in our FIS Utility, a specialty environment used only for upgrades

• Base functionality carries FIS traditional assurance

– Custom code has opportunity to become base product

– Base code is fully supported by FIS

– All functionality aligns with FIS’ strict guidelines and standards

Takes advantage of FIS and customer strengths to expedite, reduce the cost, and minimize the risk of the traditional upgrade process.

The Challenge…..

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• How can FIS help you win the business case?

– What would you like to see us do?

• People

– Access to professionals

– Strategy planning

• Product

– New Functionality specific

– Ease of use, training

• Cost

– Smoothing financial impact

• Future Proofing

– DB2, Real time etc

• Something else – help us understand your challenges, increase business satisfaction and reduce technology constraints

• We will continue to listen

Systematics 2011 Strategic InitiativesAdrian Sturley, Senior Business Consultant

Alison Wilkes, Delivery Director


Systematics, Default Manager andConstruction Loan Tracking

Product Road Map

Platform Automation

Call Center Branch/Teller

Channel Applications

Non-FIS Systems

MobileOriginationNew Account Open

Internet ATM

Default Manager(real-time, customer-centric default)

Tax

Certification Tracking

Exchange Rate

Intersystem Transfer

Savings/Time(pseudo real-time CD, IRA, etc.)

Applications Data Store and Operational Reporting

Advanced Loan System Servicing Manager (ALS-SM)(pseudo real-time retail, mid-market commercial, mortgage, escrow)

Construction Loan Tracking Manager(real-time construction budgeting)

IMPACS(pseudo real-time DDA, current accounts)

Relationship Manager (real-time customer )

Xamine Data Warehouse and Business Intelligence

NativeWeb Services

Non-FIS Systems

Framework and Common Components

SOA Engine

Core Product Development (LFI)Product integration

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Core Product DevelopmentProduct road map

• Key facts

– Strategy realignment occurred in Q4 2008

– Strategic road map based on market and customer needs

• Technology road map based on business drivers (not technology-driven)

– Aligns with market trend – core upgrades are the norm

– Two years of strategic product development delivered on time (2009 through 2010)

System consolidation strategy

Real-time integration

Workflow-driven workstations

Architectural advances

Commitment to U.S. federal regulatory and UK/EU compliance – never compromise

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Core Product DevelopmentProduct road map – strategic focus

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Customer, DDA, Savings, Loans, Escrow and Architecture

Sync ALS-SM and ALS-AE for payment posting (AE0196)Expanded Mortgage – Phase I –Schedule Balance (AM0056)Changes to support Construction Loan Tracking Manager Integration (AM0123)HAMP – Home Owner Affordability Plan (AM0145)Sync ALS-SM and ALS-AE for payment Posting (AM0150)Subvention Processing (AM8262)Overpayment Sequence High to Low interest (AM9742)TCP/IP interface point for ATM/Debit (GN5857)TSLOG file size greater than 4 GB (GN5850)Automated Log Grouping (GN5861)Additional User Fields/screens (AM9741)Credit Bureau Reporting Information (AM0021)Tier Transfers (AM0017)

TS User Exits (AM0012)McDash Phase II (AM0046)Schedule Balance (AM0105)Support for Systematics Native Interface for Web Services (GN5835)Identifying Red Flag Tracking on Accounts (RM1151)FDIC Extract IRS Country Code (RM1161)Reg Z Interim Final Rule (IM0074)HSA Cont ’Limit changes (IM7800)Increase Data Center Trailer length (ST0146)Add Year Beginning Balance to ST2B Screen (ST0359)Reprint Single Statement of Condition (ST0361)Escrow Analysis for Maturing Loans (AE0199)Escrow Overages Refunded (AE0244)Bankruptcy Pre and Post Petition enhancements (AM0013)Separate Insurance Balance for Shadow Account (AM0197)HAMP Phase II (AM0226)FDIC Loss Sharing Agreement (AM0278)

Escrow Disbursements on Statements (AM0285)Support for Extended Relative Byte Address (XRBA) (GN5872)RC Table Limit Expansion (FM0150)Sustained OD Charge for not Opted In Accounts (IM0156)POS and Debit Card Transaction Authorisation Hold (IM0067)Accrue Before Posting (IM0067)

Core Product DevelopmentSystematics 2010 released functionality



Workflow-enabled workstations



Items completed and available

Core Product DevelopmentProduct road map 2009 – 2012

20* GA second quarter 2011





Commitment to U.S. federal regulatory andUK/EU compliance – never compromise



* GA of new product 2010








* GA second quarter 2011








23*








Systematics, Default Manager andConstruction Loan Tracking

2011 Projects

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Loans, Deposits, CustomerAEAS Select Auto Reason (AE0296)AMF2 Stop Date (AE0322)Auto Acct Level Overage Process (AE0297)Backdate Analysis (AE0313)Backdate over Draw Transfer/sub insertions (AM0306)Bankruptcy - Phase IIDealer Floor Plan Support: CIP 30EMEA Regulatory - CCD and CCAEscrow Status (AE0304 / AM0323)Factory Upgrade - LendingLending RegulatoryLetter for Title/Dealer (AM8263)Processing Efficiencies - LendingRetain Deleted Bill History (AM0296)RoboHelp - Lending Product UpdatesSend statements to multiple parties w/out ID as guarantorsServicing Letters (AM8257)

Shell integration for disbursing to tax and InsuranceShort PayoffShortage PIF, Chg Mo Escrow Pmt (AE0295)Sync ALS-AE and ALS-SM for backup withholdingTracking of deferred financialsMortgage - AE to SM real-time updatesMortgage - Conversion/Acquisition engineMortgage - Investor ReportingMortgage Phase II (AM0094)Mortgage: Not previously escrowing for Tax EA - Yearly processMortgage: Rate change escrow analysisMortgage: Refund escrow overages to savings accountMortgage: SECU AE GAPS

Add source of funds field/accum to transaction - CIP 3600Card Account Management and Cardholder ManagementCardholder Synchronisation - MKE CMS Integration Phase IICIP 2524 - IM - Txn Reversal capability from IMI2 screen CIP3305 - ST - Combined Plan XREF File Descendant Processing Deposits Corrections and TX DistributionDeposits RegulatoryDistributions - RMD Waivers Expand GL Code Field (CIP 3196)Factory Upgrade - Deposits Float/Holds on IM LOC w/o Advancing Line -CIP3601Online help to Tax SystemProcessing Efficiencies - Deposits Provide Select Workflow for Back Office ProcessesRoboHelp - Deposit Product Updates Servicing - Plan Status

Core Product DevelopmentSystematics 2011 planned projects

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Architecture, Framework, Integration

Alerts - Rules Engine IntegrationALS-SM DB2Application Alerts from Batch and Online, Mobile and OLBBBI UI - BBI Replacement (2011)Carry Over Regression Testing of SI applications for TSLOG expansion enhancement (XRBA)Distribution of GN based ApplicationsExpose Product Defn - New (and existing) ProductServices/SyncExpose Rate Tables - New (and existing) Product Services/SyncFactory UpgradeAccount to Account - Carry Over (ATM)Intraday Updates to the Systematics Data Store (ADS) Product Bundling - Account and Transactional Valuing, Rewards Tracking, CD Ladder Regulatory - GNTransaction Manager - Templates, additional base interfaces, support Alert processing

Web Services Aggregation and Size Limitation - Aggregate Services, Remove DAG constraint (containers)Web Services CarryoverWeb Services ExtensibilityWeb Services Misc. - Guide book for customizationWeb Services PerformanceWeb Services Security - SSL/x.509/Authentication/SSOWeb Services VersioningWeb Services - AdditionalADS Data - Deposits Exceptions OD/NSF, Near-time Update (migration)Certify Thread SafePayment Switch (MA) 2003 ISO formatSystematics - DB2 (advancement)ADS Performance TestingEnhance Data Store for Data Access - Entity Relationships & Data GapsImproved Fraud Detection Integration - Light reporting in ADSBenchmark Systematics Applications

Core Product DevelopmentSystematics 2011 planned projects

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Default Manager Construction Loan Tracking Manager

Default Manager − Collections 2.0 − Released 3.31.11• Initiate a work flow to request an account to be forwarded to an agency • Support multiple occurrences of a Repossession• Support multiple occurrences of a Bankruptcy• Support Notice of Intent Letter processing• Support collateral liquidation via auction or third party• Create Deficiency Balance post liquidation and generate letter• Ability to calculate a payoff for Charged off/Recovery account• Ability to maintain a recovery fee or expense amount• Ability to maintain interest accrual plans for Charged off/Recovery Accts.• Initiate a work flow for single payment settlement of Recovery Accounts• Initiate a work flow for flexible payment arrangements of Recovery Accts.Default Manager − 3.0 − Target 4Q11• Vendor Management• Account Placement• Account Recall• Payment Settlement Processing for Vendors/Third Parties• Performance Monitoring• Agency AccessOther InitiativesSupport MS SQL ServerSupport Windows Platform (Windows OS, SQL Sever)Recovery SORScreen Pop functionality (shell) in DMAutomate Build Process

Construction Loan Tracking 1.1 – Release 06.31.11• Force Reversal• Account Closed/Paid Off• Retention• Interest Reserve• Equity Tracking• Auto Credit Disbursements• Phased InspectionsConstruction Loan Tracking 1.2 − Release Target 12.31.11• Automated Lot Release• Revolving Loans• GWT for Workflows• Disbursement Enhancements• Multi-level Budget StructureConstruction Loan Tracking 1.3 − Release Target 03.31.12• Portal• Convert Budget to GWT• E-mail Integration• Portal Other InitiativesSupport MS SQL ServerCLT – RegulatoryCLT Integration to ACBS

Core Product Development2011 Planned Projects


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Systematics Technical Road MapAdrian Sturley, Senior Business Consultant

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Core Product Development (LFI)Systematics technical road map topics

• Systematics Web services

• Real-time alert generation

• Application Data Store and Application Reporting Data Store (ADS and ARDS)

• Other topics

– Workstation technology

– DB2 strategy

– Payments – debit processing

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Workflow-driven workstations


Commitment to U.S. federal regulatory and UK/EU Compliance – never compromise

Core Product DevelopmentProduct road map – strategic focus

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Web Services


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Systematics Technical Road MapWeb services

• Why Web services?

– Standards-based interface supported by FIS

– High degree of interoperability across platforms

– Ease of access to robust Systematics functionality

• Highly-parameterized functionality, product builds, process automation

• Access to significant processing options

– ~3,200 DDA parameters and options (IM)

– ~3,000 Savings parameters and options (ST)

– ~3,000 Loans parameters and options (in ALS-SM alone)

– Shorter time-to-market when integrating FIS and non-FIS applications and SOA layers

– No additional infrastructure required, supports legacy versions

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• 60 Web services available today

– Customer

– DDA/current accounts

– Savings/time

– Lending

• Supported applications

– Relationship Manager (RM)

– IMPACS (IM)

– Savings/time (ST)

– Lending (ALS-SM)

– Monetary Access (MA)

• Security

– SSL – bilateral authentication (HTTPS/x.509)

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60 Currently AvailableLoan Account Inquiry Deposit Account Inquiry Account List InquiryCustomer InquiryCustomer Address InquiryCustomer Address UpdateCustomer Communication AddCustomer Communication InquiryCustomer Communication UpdateDeposit Account History InquiryRecurring Transfer Add Recurring Transfer DeleteRecurring Transfer InquiryRecurring Transfer UpdateTransfer FundsDistribution UpdateLoan Account History InquiryLoan Payoff InquiryOD Protection Add OD Protection InquiryOD Protection Delete

Stop Payment AddStop Payment DeleteStop Payment InquiryAccount Address UpdateAccount Alternate Address InquiryAccount Alternate Address UpdateATM Authorization InquiryCustomer Bill Payment UpdateCustomer Account Relationship AddCustomer Account Relationship DeleteCustomer Account Relationship UpdateLoan Auto Pay AddLoan Collateral AddLoan Collateral DeleteLoan Collateral InquiryLoan Collateral UpdateLoan Billing Statement RequestCombined Statement AddCombined Statement DeleteCombined Statement InquiryCombined Statement Update

Customer AddCustomer UpdateCustomer Address AddCustomer Employment AddCustomer Employment InquiryCustomer Employment UpdateCustomer Financial AddCustomer Financial InquiryCustomer Financial UpdateCustomer Identification AddCustomer Identification InquiryCustomer Identification UpdateDeposit Account AddDeposit Account Update Hold AddHold DeleteHold InquiryRetirement Plan Inquiry

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Core Product DevelopmentWeb services

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Core Product DevelopmentWeb services

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Systematics Technical Road MapWeb services version 2.0

• Enable additional Web services

– Access to products, plans and rates

– 25 − 30 additional services to:

• RM

• IM

• ST

• ALS-SM

• Framework version 2.0

– Easier extensibility and aggregation

– Easier customisation

– Legacy version friendly

– Reduced reliance on 64K proprietary message format (DAG)

– Elimination of ICR quantity limitation

– Supports large messages

– Supports current Web services

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• Security

– XML signature and XML encryption to provide end-to-end security

– SOAP message security (WSS handler)

• Authentication

• Digital signature

• Encryption

• Rules engine integration

• Business process improvement

– GUI

– Process management

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Systematics Technical Road MapWeb services future

Real-time alert generation

Systematics Technical Road Map

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Real-time Alerts


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Systematics Technical Road MapReal-time alerts

• Why alerts?

– Real-time integration to channel or enterprise alert engines (e.g., mobile)

– Pushed from core applications

– Enables application-to-application synchronisation and coordination

• Design principles

– Optimized to minimise impact on transaction processing

• Events versus alerts

– High-level selection at transaction level

• Transaction definition parameter for ALS-SM and RM

• Transaction code cache table for IM and ST

– Minimal impact to core application code

– Flexible layer for adding future alerts

– Leverage existing event generation functionality

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Core Product DevelopmentReal-time alerts – release 1

ADS and ARDS



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ADS & ARDS

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Systematics Technical Road MapADS and ARDS

• Why now?

– Point-to-point integration makes upgrading a greater effort

– Data mart and warehouse solutions are supported by brittle interfaces

– Data access and reporting often require IT involvement


– Flexible integration uses Systematics meta data (data dictionary)

– Leverage existing components within FIS

– Provide low-cost architectural layer

– Support for legacy versions

– Provide multiple platform options

• Certified on Oracle and DB2 LUW

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• AEACC AEACT AEBIL AECTL• AELKP AEPBLALS-AE

AMIXT*

IMOMH

• IMEPA IMEPI

STANA

SAIXT*

Events/Alerts – Real-timeSystematics

*

* IXT datasets to be supported in 2011. AMACC is complete except for three new formats to be added in 2011.


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• Additional data

– Detailed general ledger extracts for deposits (IMPACS, ST) and lending (ALS-SM)

– New history formats in lending (ALS-SM)

• Real-time updates with events

• Enhanced reporting and data marts

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Systematics Technical Road MapADS and ARDS future

Everything else

- Workstation technology

- DB2 strategy

- Signature debit



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Workstations

DB2 Strategy

PaymentsSignature Debits

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Systematics Technical Road MapWorkstation technology

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Systematics Technical Road MapDB2 strategy

• Why DB2? Why now?

– Market demand in South America

– Continuity of business requirements

for significant geographical separations


– VSAM application files moved to DB2 tables

– Some framework (GN) VSAM files moved

to DB2 to support recovery

– Leverage earlier project work that

migrated 38 VSAM files to DB2

– Target applications built upon SDMS data access

– Table granularity at logical segment (DAG) level

Exec API /* */Get AMMSRT00 End Exec.

Call ‘SAS0001C’ usingSAS-9GCADSAS9SRKK…

LA R1,WSCAPRM0ICM R15,15,=V(SASDMSC) BASR R14,R15

L R9,SDMSBUFA … EXEC CICS READ DATA…

INTO(0(,R9)) LENGTH(SDMSLREC+2) RIDFLD(0(,R2))

ALS-SM source code

requests data

Compiled ALS code invokes GN’s SASERVc

• Insulated from file access method

SASERVc invokes SDMS data

management system


SDMS data management

system invokes VSAM

SMSVSAM reads record

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Generated RBDMS I/O Module

RDBMS – DB2

EXEC SQL SELECT AMMSRT00_RT_KEY…INTO :AMMSRT00-RT-KEY,:THE-BL…FROM AMMSRT00WHERE AMMSRT00_RT_KEY = :AMMS…


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Exec API /* */Get AMMSRT00 End Exec.

Call ‘SAS0001C’ usingSAS-9GCADSAS9SRKK…

LA R1,WSCAPRM0ICM R15,15,=V(SASDMSC) BASR R14,R15

ALS-SM source code

requests data

Compiled ALS code invokes GN’s SASERVc


SASERVc invokes SDMS data

management system


MVC WKDB2MOD+2(6),…MVC WKDB2MOD(2),SD… MVC WKDB2MOD+4(3),S…MVC WKDB2FUN,=C'CRU…'SIPLIST DB2PARMS,(DFH…LA R1,DB2PARMS ICM R15,15,=V(SAS0001C) BASR R14,R15

SDMS data management

system invokes generated RDBMS

I/O module


Database Tables

Data groups

Element 1

Element 2

…

Element N

Entire table row loaded to memory

Systematics data management system (GN)

ALS-SM business process

(AMPxxxxx)

SQL

AMMS…. DAG

Element 1

Element 2

…

Element N

Element 1

Element 2

…

Element N

Virtual I/O(to Cache/Memory)

Physical I/O

AMMS…. DAG

AMMS…. DAG

Table Row

AMMSRT00AMMSRT00-RT-KEYAMMSRT00 Data

AMMSAC01AMMSRT00-RT-KEYAMMSAC01-AC-KeyAmMSAC01 Data

Account Master Row

LAMSRT00-RT-KEY…-RT-CTL1…-RT-CTL2…-RT-CTL3…-RT-CTL4…-RT-ACCT-NUM

… RT-…LAMSAC01 Virtual RecordLAMSAD01 Virtual RecordLAMSAF01 Virtual RecordLAMSBA01 Virtual Record…

Account Master View A1CONTROL1

CTRL2 CTRL3 CTRL4 RTACCTNUMBER PRIMOFFICER CUSTOMER1 CUSTOMER2 CUSTOMER3 CUSTOMER4 … CURRSCHEDTERMDATE

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RDBMS (DB2)


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Log File Expansion

Systematics Technical Road MapPayments – signature debits

Thank You

FIS Business Strategy

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