ARTIFICIAL INTELLIGENCE FOR BUSINESS

ABOUT THE COMPANY

Centralized high-tech system, developed by the professionals of ART-BANK group of companies, is a flexible tool to efficiently manage all retail banking processes, rapidly develop and launch new banking products into the market as well as to enhance efficiency and competitiveness of any financial institution.

The ART-BANK company has developed a flexible system for retail banking business automation, including the complex of front and back office solutions for the organisation of banking products complex sale processes, retail crediting and comprehensive “unified window” operations support services.

“Unified window” is a modern and efficient way of bank customer service that provides bank teller with consolidated access to the information on customer data, cooperation history, financial activity and to the set of banking products that are already in use as well as to the new products customer may be interested in.

“ART-BANK” company is a developer of innovative retail banking system ART-BANK and is well-known in Russia, CIS and Middle East countries, since 2000.

Since its foundation, the company has successfully implemented more than 100 integration projects for the deployment of complex banking systems, front and back office systems, automation systems and support of key bank’s businesses.

The company efficiently cooperates with such international brands as IBM, Oracle, BSS and others.

Among the major projects implemented by the company are the following: retail banking system for UNIASTRUM Bank, card back-office for RosNeftBank (formerly IBRD), a project of retail banking system for TSB (Kazakhstan), various projects for the automation of banks’ business: The Royal Bank of Scotland plc, OJSC Rossiysky Capital, Russlav Bank, the First Czech-Russian Bank, Danske Bank, etc.

THE ARCHITECTURE OF ART-BANK SOLUTIONNew opportunities for effective business • deep customisation without

programming (system settings within business-area terms)

• the highest information processing speed (the system is comparable to the processing systems in terms of its speed index)

• creation of pre-configured business-logics for an automated sale of banking services (customer characteristics and tags analysis, customers base segmentation, system setup in accordance with new marketing banking product and its further sale “on demand”)

ART-BANK is a module system based on artificial intelligence technologies that can considerably alter the cooperation between bank and its customers. Within shortest possible period, the system can offer new products and services, developed with individual consumer characteristics in mind.

Understanding work specifics of largest credit organisations, the ART-BANK company has developed its own product, taking into account possibility of certification of installed in the bank solution on conformance with the international quality and information security standards.

ART-BANK system is efficient link in banking products management. Front office part of the system secures work of bank’s branches and sale points. The system

can be integrated into informational banking systems of other providers, into all processing systems to manage funds through payment systems. Furthermore, the system can be integrated with the systems of remote banking to manage the funds through online-banking and mobile applications.

Front office addresses retail product system concerning all business services: credits, deposits, cards, cashier services. Retail back office ensures stable and fast calculations of all retail products, while flexibly customised logics secures quick launch of new products into the market.

Flexible customisation capabilities are embedded on the level of all the system modules, banking products settings, terms of service, user interfaces, etc.

The system runs on all server platforms, providing high operational speed, fully ensures necessary level of services and the interaction of applications, and may become a powerful tool for sales and bank’s business development under conditions of tight competition.

Owing to this, the ART-BANK solutions allow: • to increase the quantity and quality of customer service; • to promptly offer new banking products and services to customers;• to organise subsequent sale of bank financial products; • to reduce the risk of possible errors or insufficient qualification of bank teller;• to maintain operation speed of bank retail system on the proper level even if

customer base is growing dramatically fast, and at minimum costs of IT support.

ART-BANK SYSTEM MEETS THE BANK’S KEY CHALLENGES BANK CARDS OF INDIVIDUAL PERSONS AND ORGANISATIONS

LOANS OF INDIVIDUAL PERSONS AND INSTITUTIONS

CASHIER’S OPERATIONS

- Cutting-edge card products of any payment systems.- Revolving credits, grace periods, combined products. - Extremely fast configuration of new products. - 24x7 mode, high performance reliability and stability. - 24x7 mode, high performance reliability and stability. - Equipment saving at the expense of the best operation speed on the market.- IT staff saving at the expense of perfect support.

- Consumer loans: sales, scoring, underrating, accounting, analytics. - Car loans, mortgages, other specialized credits. - Loans on individual terms (VIP credits, credits for institutions). - Factoring, work with portfolios, sales and credits redemption.

- Unified bank teller’s work place. - Operations with the accounts of individuals and legal entities. - Operations without account opening, remittances and payments. - Currency exchange operations, support of the operations with safe deposit boxes.

THE SYSTEMS ALLOWS TO:- Run all retail business products in one place (for instance, to operate collateral agreements, credit agreements, deposit agreements in the same place). - Make operations with current agreements from “unified window” (opening/closing/editing/remittance). - Provide unified terms and conditions for various products. - Conduct scoring with a possibility to simply set parameters (external scoring addition is possible). - Set up accounting models according to the customer or even various models for various products/branches/... (there are no restrictions, it is possible to set up any model on your own).- Run a product line for all products and indicate various dependences for products. For instance, the amount of credit interests may depend on the sum on the deposit. Composite products are possible: card + credit or deposit, etc. - Have a list of trade organisations, bank branches, salary projects and link them to pricing plans, products, etc.- Have a vast list of tarifficated operations with a possibility to introduce changes and

additions right in the directory.- Have different currency exchange rates for various sale points, products.- Work simultaneously with several processings.- Have lots of ready reports and create new reports on your own.- The functions of customer base administration (Customer profile creation; managing customers into groups, you can add any fields and tags for your customers yourself). - Configuration functions (It is possible to create and edit business processes, screen forms and reports templates on your own).

- Customers and agreements search functions, advanced filtration system.- Use various interests calculation schemes. There are considerable set of existing schemes and possibility to create new schemes in special constructors. - Rich functionality not only of file exchange but also of online exchange with various systems. There is a possibility to adjust to customer’s needs. - Possibility to have the directory of terrorists and suspects, and to monitor

DEPOSITS OF INDIVIDUAL PERSONS AND ORGANISATIONS- The most attractive deposit products for the customer. - Unlimited possibilities of complex products configuration. - Powerful system of restrictions on operations types (additional payments, partial withdrawals, etc.). - Deposits on individual conditions (VIP, institutions).- Floating rates, multi currency deposits, etc.

MARKETING PROGRAMMES

LOYALTY PROGRAMMES

- Customer base analysis and segmentation. - Marketing campaign creation. - Creation of customer offers.- Customer offers delivery (passive demonstration mode). - Customer offers delivery (context-event mode).

- Full set of tools and services to launch, manage and develop customer loyalty programmes.

abusive tax payers. - Unprecedented processing speed in the 24x7 mode for large scale projects. In terms of its speed, the system leaves its competitors far behind. From 5 to 10 times faster on similar volumes of business. - Best customisation ability: make quick

configuration and introduce the newest banking products into the market. The system allows to introduce new products to the markets within weeks or even days; - High usability and interfaces intellectuality help to provide services to customers quickly and without errors! All system’s interfaces can be customised for every user group.

DISTINCTIVE FEATURES OF ART-BANK

TECHNOLOGIES USED IN THE SYSTEM

CENTRALIZATION

FLEXIBILITY AND INTEGRATION

DEPLOYMENT

PERFORMANCE

The system provides a unified, high tech, centralized solution for bank customer service that runs on any server platform in 24x7 mode.

This technology allows to define banking

Deployment of model projects begins in 1-2 weeks, of more complex ones - in 2-4 weeks. After deployment, client is provided with a warranty period during which bank is supported by the deployment as well as support engineers.

The system was originally designed as a solution for the retail banking business, it has no technological problems that “accounting” banking systems abound in. Operating speed is determined only by the hardware used. Transaction processing speed exceeds 200 - 400 transactions per second. Constant speed is available in any installation and is guaranteed by the system’s kernel, which operates according to pre-optimized algorithms specified in the constructors. On average, according to various business processes, the operating speed of ART-BANK is from 3 to 10 times higher than competitors’ systems.

Logics of sophisticated banking products and accounting is configured with specialized constructors and does

not require programmers. Possibilities of constructors are almost unlimited: up to 90% of even the most complex products are created with their help. Work in constructors is performed by a deployment and maintenance specialist, who works in terms of subject area and without coding. The system supports a wide range of quick integration opportunities with various automated banking systems, payment systems, transfer systems, data warehouses.

ARTIFICIAL INTELLIGENCE TECHNOLOGY: DECISION-MAKING SYSTEM BASED ON FIRST-ORDER PREDICATES

transactions processing procedures in “Condition-Action” form. Depending on the Conditions the transaction corresponds to, various Actions may be applied. Any combination of parameters related to

ART-BANK SERVICE SUPPORT

The flexibility of technologies gives ultimate freedom and simplicity of set-up and customisation. Moreover, it provides high operating speed due to the algorithms synthesis technology used in the system. All the settings made in the “construction kits” are compiled into Oracle Pl/SQL stored procedures that guarantee fast and reliable transactions processing.

Back office data processing for large projects implies handling with millions of transactions per day. The ART-BANK system uses batch processing approach rather than “one-by-one”. Batch processing is based on vector principle which allows to process hundreds (three hundred, five hundred, one thousand - depending on the settings) transactions during one cycle. Due to this approach ART-BANK is at least by 3 - 5 times faster than any other system.

Any batch process may be divided between any number of processing threads. The system is able to automatically parallelize the process, and it is also possible to define fixed number of threads for the certain process.

ARTIFICIAL INTELLIGENCE TECHNOLOGY: SYNTHESIS OF ALGORITHMS

VECTOR ALGEBRA APPLICATION: ARRAY PROCESSING

PARALLEL PROCESSING TECHNOLOGY: MULTITHREADED PROCESSING

the transaction may be used as a Condition (it may be any attribute of Transaction itself, Agreement, Customer). Considerable advantage is that the set of parameters may be easily expanded and are not limited. Certain set of derived transactions may be performed as an Action, for instance, generation of: the accounting entries, child (nested) transactions, new agreements, messages, etc. It is important that the set of parameters of such transactions are also not limited.

Basic level software support service package includes minimum possible set of services. At this level, only core software functions are supported, not business settings. The package may be suitable for the banks that have ART BANK certified specialists.

Business-level software support service package includes basic level software support service package as well as additional services that help to support both the core and business settings. Most clients of the company use this package. It allows Bank not to have ART-BANK certified specialists in its staff.

VIP level software support service package includes business level software support service package. In addition, Bank receives a guarantee of fast specialized services within the entire range of questions. This package is suitable for banks, which business is developing rapidly, but that do not want to expand the IT departments.

The peculiarities of service support:• There are two supervisors, knowledgeable in banking mechanism, allocated to the

support service, and a separate one - to the deployment service.• The average time to respond to the task is 7 minutes, the average time to solve the

problem is 1.5 hours.• Small custom work is agreed and done, on average, within 1-2 weeks, urgent work -

within 1-2 days.

UNIQUE TESTING OPPORTUNITY

AVERAGE DAY BUSINESS PROCESSES

Free system testing in the productive area BEFORE the deployment

• Database load testing in the form of user activity imitation. • Creation of external operations• Processing of operations downloaded from a file • Processing of operations from the waiting list • Formation of regulating operations with interest accrual. • Credit and TO settlement. • Creation of fixation due and payable amount operations• Verification of soft crediting conditions. • Labelling overdue liabilities. • Formation of regular payments.

ART-BANK SERVICE SUPPORT 1. The cost of functional depends on the configuration scope: from 15 000 to 200 000

Euro.2. The cost of licences depends on the quantity of agreements in the system: from 0,3

to 1 Euro for 1 customer agreement. 3. The cost of 1 module deployment: from 15 000 Euro for typical configuration to 100

000 Euro for top configuration. 4. The cost of system support depends on the chosen level of support: Basic level - 15-20% per year from the contract price. Business level - 20-30% per year from the contract price. VIP-level - over 30% from the contract price as agreed by the parties. For more accurate calculation of the system cost, its deployment and support, the company’s professionals will conduct rapid survey of Bank’s business and make preliminary project plan.

WHAT BANKS ARE EXPECTING FROM ART-BANK SYSTEM LAUNCH? • Income increase. • Customer base increase. • Banking products sale volume increase• Reduction of the time needed for introduction of new products and services to the

market. • The bank’s economic efficiency increase by reducing the cost of customer service and

reduction of total cost of the system.

WEB-SERVER HARDWARE

WORKBENCH (FAT CLIENT)

• CPU: 8xXeon (eight 8-core processors Intel® Xeon®), the usage of IBM p-series is also possible; RAM 128Gb; HDD system: 100Gb.

• OS Microsoft Windows 2000 (only for «ART-BANK» hardware versions under 4.3) /2003/XP/VISTA/7; Microsoft Office 2000 /2003 /XP /2007/2010 or Open Office.

• Working width of the channel from 128Kbit/s. For the administrator’s workbench, the channel from 1Mbit/s is recommended.

• Hardware for Windows network (smb, etc.) integration is obligatory on Unix/Linux servers.

WORKBENCH (THIN CLIENT): • Possibility to work in any internet browser: IE, Chrome, Firefox, Opera.

SYSTEM REQUIREMENTS SERVER-SIDE SOFTWARE • OS: Any Windows/Unix/Linux like systems having Oracle Database 10.2.0.Х and 11.2.0.3

distributives available (for “Art-bank” versions 4.3.3 and further). • DBMS: Oracle Database 10.2.0.4 and 11.2.0.3, Standard or Enterprise editions.

SERVER DATABASE HARDWARE• OS: Any Windows/Unix/Linux like systems having Oracle Database 10.2.0.Х and 11.2.0.3

distributives available (for “Art-bank” versions 4.3.3 and further). • DBMS: Oracle Database 10.2.0.4 and 11.2.0.3, Standard or Enterprise editions.