Integrated Compliance Solutions

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Integrated Compliance Solutions

• John Bryant Vice President of National Markets

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Agenda

• Introduction Bankers Systems, Inc.
• Market Overview
• Competitive Overview
• Integrated Compliance Solutions
• Product Demo
• Summary
• QA

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IntroductionBankers Systems is the market leader
for compliance solutions and has served the
financial services industry for over 50 years.

• Minnesota based company established in 1952
• Leader of compliance solutions for account
  opening processes lending (e.g. consumer,
  commercial, SBA, mortgage and home equity),
  deposit and IRA for all 51 jurisdictions
• Core competency The development and delivery of
  compliance solutions to support financial
  services account opening processes (lending,
  deposit and retirement plan services)
• Market share leader
• 83 of U.S. banks
• 70 of top mortgage originators
• 90 of preferred SBA lenders
• 19 of top 25 U.S. banks use BSIs anti-money
  laundering software

Regional Banks
National Banks
Community Banks
Bankers Systems Markets
Credit Unions
Mortgage Originators
Finance Companies
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Agenda

• Introduction Bankers Systems, Inc.
• Market Overview
• Competitive Overview
• Integrated Compliance Solutions
• Product Demo
• Summary
• QA

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Market OverviewBankers Systems markets are
comprised of 22,950 financial institutions, of
which approximately 40 are considered banks.
450
Regional Banks
100
8,600
National Banks
Community Banks
Bankers Systems Markets
Credit Unions
Mortgage Companies
Finance Companies
1,300
9,500
3,000
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Market OverviewDeposit account opening and loan
origination are the primary banking processes.
Compliance plays within the documentation of
these processes.
Deposit Workflow
Lending Workflow
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Market OverviewOn a macro level, market is
segmented by level of systems integration
non-integrated banks require different solutions
than integrated banks.
Non-Integrated (Point or Standalone
Applications) Market Segment
Integrated Market Segment
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Market OverviewBSI offers solutions for both
markets. Focus of this discussion is on the
integrated market.
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Market OverviewICS is initially targeted on
large banks, since 1) top 1 control 70 of
assets, 2) complexity is greatest and 3)
integration is key issue.
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Market OverviewThere are many contributing
factors to the challenges banks face.

• Bank consolidation
• Multiple, disparate legacy systems
• Increasing compliance requirements
• Profit pressures
• No adequate solutions

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Market OverviewThe resulting issues banks face
are significant high costs, increased compliance
and business risks, inconsistencies and delays to
market.

• Costly creating compliant documentation and
  policy disclosure is costly
• Initial development
• Maintenance (due to constant changes)
• Risky the risk of non-compliance is significant
  - examples include financial penalties, poor exam
  ratings (which can effect available capital) and
  class action suits
• Inconsistent regulations are often interpreted
  inconsistently across banking units and processes
• Slow the lost revenue opportunities because of
  delays in time-to-market can be great

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Market OverviewBanks require a comprehensive
compliance documentation solution to address
their needs.

• Comprehensive base of compliance content
• All lines of business (e.g. home equity,
  mortgage, consumer, commercial, deposit)
• 51 jurisdictional coverage (50 states plus
  District of Columbia)
• Documents (content and business rules), data
  elements and formatting
• Component (integrate-able) technology to deliver
  compliance
• Scalable, manageable, extensible and accessible
• Open architecture
• Supported with commercially available
  technologies
• Tailoring/customization capabilities
• Compliance documents
• Associated business rules

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Agenda

• Introduction Bankers Systems, Inc.
• Market Overview
• Competitive Overview
• Integrated Compliance Solutions
• Product Demo
• Summary
• QA

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Competitive AnalysisTodays solutions are
inadequate at meeting the current and future
integrated needs of banks.
3. Tailoring Capabilities
In-House Legal
High
Stand-Alone Compl. Systems
1. Compliance B D
Three Dimensions

• Compliance breadth depth
• Integrated compliance technology
• Tailoring/customization capabilities

LOS Providers
Low
Content Enabler
Document Tech Providers
Low
High
2. Integrated Compliance Technology
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Competitive AnalysisBankers Systems is uniquely
positioned to obtain and maintain a significant
competitive position.
3. Tailoring Capabilities
Bankers Systems ICS
In-House Legal
High
Stand-Alone Compl. Systems
1. Compliance B D
Three Dimensions

• Compliance breadth depth
• Integrated compliance technology
• Tailoring/customization capabilities

LOS Providers
Low
Content Enabler
Document Tech Providers
Low
High
2. Integrated Compliance Technology
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Agenda

• Introduction Bankers Systems, Inc.
• Market Overview
• Competitive Overview
• Integrated Compliance Solutions
• Product Demo
• Summary
• QA

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Integrated Compliance SolutionsThe solution
combines industry leading compliance content,
scalable and integrated technology and
comprehensive content customization capabilities .
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Integrated Compliance SolutionsThe value
proposition translates into a strong return on
investment for customers.
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Integrated Compliance SolutionsThe long-term
vision is to deliver compliance content, across
industry segments, on a single technology
platform.
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Agenda

• Introduction Bankers Systems, Inc.
• Market Overview
• Competitive Overview
• Integrated Compliance Solutions
• Product Demo
• Summary
• QA

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Agenda

• Introduction Bankers Systems, Inc.
• Market Overview
• Competitive Overview
• Integrated Compliance Solutions
• Product Demo
• Summary
• QA

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Summary

• Compliance is complex, costly and problematic for
  banks
• Current solutions for the large banks are
  inadequate
• Bankers Systems Integrated Compliance Solutions
  address the complexity and enable financial
  institutions to
• Increase speed-to-market
• Reduce compliance and business risks
• Decrease cost of operations
• Increase customer retention
• Market opportunities are significant

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Agenda

• Introduction Bankers Systems, Inc.
• Market Overview
• Competitive Overview
• Integrated Compliance Solutions
• Product Demo
• Summary
• QA