FIS Wealth Solutions

April 11, 2017

Luke McCabe, EVP, FIS

Simon Algar, Principal, wealth-reports

Today’s Discussion

2

• Overview: FIS Wealth Solutions

• Industry view: Optimizing your operating model

• Looking ahead: The FIS Wealth Platform

• Customer perspectives: Audience engagement

FIS Wealth Solutions

Empowering clients by turning experience into insights

Across the wealth and retirement sector we bring greater efficiency, flexibility and scalability

4

1,000Clients

75,000Advisors

1.5MTrust

Accounts

50MRetirement

Plan Investors

$7TAssets

FIS empowers banks with one of the broadest and

richest wealth management solutions sets in the industry.

• Digital client engagement online solutions

• Advisor desktop and services

• Portfolio management and managed investments

• Workflow, compliance and reporting

• Trust accounting technology and outsourcing

FIS Wealth and Retirement

VISIONHelp our customers grow

revenue by providing superior

software, service and industry

expertise to help acquire,

manage and grow investment

assets in a cost-effective manner.

Expanding outsourcing services

Growing institutional asset management services

Innovating our software platforms

Extending to new geographic markets

6

Our growth strategy

Optimizing your operating model

Increasingly pressurized

The wealth management market

8

• Banks prioritizing wealth LOB

• Intensive focus on client experiences

• More consistent service segmentation/product bundles

• Link financial plans to outcomes• LOBs must do more with less…

Investor needs change• Experience hungry

• Tech-and finance savvy

• Price conscious

• Risk averse

• Diverse…

Financial constraints• Low interest rates

• Wealth % as of bank revenues

• Organic vs. M&A ROIs

• Price pressure

Wealth transfer• $30T in play

Regulatory change• AML, DOL

• Cyber security

• Regulatory –

fragmentation/convergence?

CompetitionMaturity and intensity•

Rise of Fintech•

At scale consolidation•

Workforce change • Aging, shrinking

• Not diverse

wealth-reports

Strategic realignment, tactical reorganizations

Vertical and functional integration

9

Growth and productivity requires

Two major changes

Organizational realignment, breaking down silos to better serve customers

Redefinition of the operating and technology model

Technology and data management becoming the #1 enabler of change

A more client-focused (vs. channel focused)

sales orientation

Consistent but competitively

differentiated client experiences

More operating capacity in the front,

middle and back offices

Prospecting, planning and client service Investment and portfolio management

Operations

Wealth CEOs now redefining operating models to build unified organizations –

leveraging platform chasses to facilitate change

wealth-reports

Wealth operating model strategies

10

2004

Alternates

2017

Composites

wealth-reports

Principal enablers –talent, organizations,

technology

Superior product, cross-selling and

enterprise integration

Risk management and superior

service

Productivity –core focus + non-core outsourcing

Client experience and innovation

Scalability through M&A

Efficiency –shared services

and prudent financial

management

Transformation of client and user experiences

Wealth platform needs

11

Current CX and UX

• Transactional

• Product-oriented

• Benchmark-oriented

• Reactive

• Silo-ed

Target CX and UX

• Process / lifecycle

• Solution-oriented

• Goals-based

• Proactive

• Holistic and integrated

Target StateCurrent State

wealth-reports

Client experience benefits

12

Client Servicing Investment, Portfolio Mgmt Operations

Scalability through functional and data integration

Client experience

wealth-reports

Vertical and data integration + one stop procurement, service

Wealth platform needs

13

Client

fintech

Planning and Advice• Gradations of bank, third party and

client advice, decision-ing .• Financial planning and PFM • Goals-based reporting

Product manufacturing• Asset, portfolio mgmt and private

banking product fulfillment• Asset and product mgmt• Proprietary and third party solutions

Product distribution• End to end enablement,

administrative and support• Mass affluent, HNW, UHNW and

institutional client

Advisory,

fintech

HNW, institutional support Client, HH data aggregationAccounting book of record

Investment book of recordMulti-trade venue Wealth book of business

Unified book of recordImplementation and execution of advice, product manufacturing and product distribution through an end-to-end systemic workflow,

with data integration and exception-based processing

Multi-venuetrade tools

Trading and transacting Custody, Product, Portfolio, Trust Accounting

CIF, CTF, banking, cards etc, accounts

Advisory-driven Client-initiated

Trust and agency locations, registrations

Data integration

wealth-reports

Key elements

Wealth platform value creation

14

• +5% technology allocation savings

• Target firm currently spends 2.9% - 6.8% of revenue on tech.

• +62% time for client mgmt

• +21% faster growth in AuM

• +114% growth in revenues (bank PMs>$100M)

• 49% less time on operational processes

• Biggest gains in auto-account opening +80% faster time to revenue

Bank wealth value creation can be sub-divided into different classes

Rationalization of duplicative technologies, workflows, data sets and

vendors

Efficiency and productivity gains due to process, workflow and data

standardization

Reduced reputational, operational, regulatory and compliance risks and

cost

Value estimates

• +3% operational risk reduction (ignores potential resource re-allocation)

CTO gains Front office gains Middle-, Back office gains

Data integrity

Exception based

processes

Productivity

greater efficiency ($)

Capacity enhanced client experiences

*Sources: FIS, Envestnet, Wise Gateway, Aite, SEI, Deloitte, IBM Pega

wealth-reports

Agile planning

The importance of target model planning

15

StrategyDemand for change

Choices

Implementation and execution

Target operating model

Differentiation +33%

Innovation +34%

Transformation / agility +29%

Implementation certainty / operational

efficiency +31%

“Executives who focus on planning realize

2.5 times greater impact for the same

project speed”CEB Building a Digital Foundation for Wealth Management, November 2016

wealth-reports

Capabilities inform target state

16

Capabilities fulfillment informs target operating models– and therefore competitive positioning, differentiation

Front to

back client

experiences

Workflow

automation,

outsourcing

End-to-end

surveillance

Straight

through

processing

Singular UI

with roles-

based

dashboards

Client,

household

centricity –

360 ̊ views

Data

integrity,

consistency

wealth-reports

FIS Wealth Platform

Unifying core business capabilities in a single user experience

18

Wealth

Accounting &

Custody

Trading & Cash

Management

Portfolio

Management

Financial

Planning

Customer

Relationship

Management

Increased user efficiency

through unified best-in-class

product offerings

Common Integration Layer for Supporting 3rd Party Features

One Vendor | One Contract | One Relationship Manager | One Service Team

WEALTH

WEALTH

Extending platform with key features and revenue-enhancing solutions

19

INDUSTRYSupport regulatory and industry changes

FDIC Insured sweep options

Department of Labor (DOL)

EFFICIENCYFront office report writer

Data warehouse capabilities

Real-time integration

STRATEGICSalesfroce.com integration

Deeper banking integrations

Digital transformation through desktop widgets

Aggregated financial data

Unified Application

Components and

Dashboard

HTML5 Technology

with Mobile

Enablement

Data, Analytics and

Reporting

Seamless

Integration with

3rd party

partner

Empowering users with dynamic web and mobile experiences

WEALTH

Open Discussion

Thank You