FusionBanking Lending Solution overview. All-in-one lending. Connect and grow: the path to lending nirvana

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1 FusionBanking Lending Solution overview All-in-one lending Connect and grow: the path to lending nirvana

2 Smarter, faster and agile Achieve ultimate efficiency with a solution for all lending lines that unifies and consolidates throughout the loan lifecycle.

3 Grow lending and improve your return on equity 1 The lending market is fundamentally changing. Market surveys show an uptick in lending and established lenders are seeing disruptive forces entering the market along with increased competition for corporate customers. 2 Growth and agility are hampered by multiple systems supporting loan products and the end-to-end process. Manual processes are creating duplication of data, preventing transparency and bringing together the required datapoints to manage risk, grow the lending business and better understand customers. This impacts operational risk, raises costs and creates problems in the workflow of a loan. 3 Banks need greater risk controls throughout the entire lending process in order to ensure fewer losses but also to maximise their capital and lending ability in response to Basel III and other regulatory requirements. The elimination of silos in commercial lending is certainly something on the mind of every leading provider of lending services. Getting rid of all the lending silos within the bank and having a 360 degree view of what the customer s exposure is, of what their business is. It always surprises me when I hear how banks are handling each type of loan product differently in a different system with all these data silos. Susan Feinberg Senior Analyst, Celent, Connected credit and compliance for lending growth Finextra/Misys research, 2016 Misys FusionBanking Lending Solution overview 3

4 Misys is redefining th Only Misys is able to cover all aspects of lending with a single solution that unifies and consolidates, putting outdated and disparate systems in the shade software world so yo focus on growing yo while taking control over the full loan lifec 4 Misys FusionBanking Lending Solution overview

5 Misys is the only company that provides the full coverage we need in a single lending system. The integrated end-toend system gives us an efficient workflow process minimising the need for re-keying of data, giving us maximum efficiency in our lending operations to keep costs low. The system will also allow us to take more control of the loan origination process, giving us a single customer view and credit management functionality to enable us to grow our business. FusionBanking Lending helps you focus on the customer. It delivers the right data to the right people at the right time, with a 360 degree customer view and best practice lending workflow from origination through to loan maturity. Michael Elliott CIO of Farm Credit Bank of Texas e lending u can ur lending business of risk ycle. Misys FusionBanking Lending Solution overview 5

6 6 Misys FusionBanking Lending Solution overview

7 Connect and grow with all-in-one lending We are redefining lending software with expert market foresight and know-how to connect origination, loan servicing and risk management in a single, componentised system. Misys has 30+ years of expertise in all aspects of commercial and corporate banking, including lending and risk management. FusionBanking Lending puts outdated and disparate systems in the shade, bringing unsurpassed coverage to meet the needs of today s highly competitive lending market. Our all-in-one approach enables you to win on service, manage risk and reduce your costs. It brings you a common view of lending across your business so you can tailor products for the full range of corporate clients. Furthermore, FusionBanking Lending enables you to grow and evolve with a vision and roadmap that differentiates you from your competitors. With FusionBanking Lending banks can start their journey to simplify the complexities of the lending business, but also chart their path to lending nirvana. With pre-integrated solutions, not just for lending, but for the full spectrum of corporate banking, the Misys FusionBanking Corporate suite of solutions enables banks to break down the silos. By driving integration with unified corporate channels, trade, cash, payments, risk and enterprise analytics, you can transform lending, alongside other aspects of the commercial banking business at a pace that meets your own strategy and the needs of your clients. Misys FusionBanking Lending Solution overview 7

8 Introducing Misys FusionBanking Lending To improve efficiency and reduce costs, you need a solution that is functionally rich and flexible enough to cover all aspects of lending, end-to-end. Provide the right data, in the right place, at the right time For all banks, customer service and experience is king. Client attrition, poor cross-sell performance, and the rise of alternative payments and finance providers mean customer experience is at the heart of transformation. With FusionBanking Lending your corporate clients are able to use joined up, digital services for lending and working capital optimisation. Give your clients a single point of access in a self-service portal across their global lending activities. By rationalising e-banking and sales channels banks can seize new opportunities for growth and revenue generation. It maximises end-to-end and enterprise-wide efficiencies, enables the insight and cross-sell capabilities to deepen relationships and provides the agility to connect, innovate and gain a competitive edge in the digital age. 8 Misys FusionBanking Lending Solution overview

9 FusionBanking Lending All-in-one lending Business Channels Origination Trading Servicing intelligence Commercial lending Syndicated lending Retail/SME lending FusionBanking Loan IQ FusionBanking Credit Management Enterprise Commercial loans Term loans Revolvers Bilateral loans Commercial real estate loans Participations Assignments Collateral management FusionBanking Loan IQ Agency servicing Syndication deal management Secondary trading and settlement FusionBanking Credit Management Enterprise FusionBanking Essence Consumer finance Credit cards Mortgages FusionFabric Connect FusionBanking FusionRisk FusionCapital Non-Misys banking systems Workflow and loan lifecycle management Improve the loan decision process to corporate customers and grow your business Corporates need faster and cheaper loans and there is greater competition for their business. To stand out from the crowd, banks need to create more efficient and customer-centric sales processes. This necessitates the ability to interrogate client data effectively and the agility to create and price tailor-made solutions quickly and easily. Misys helps banks deal with this challenge by improving customer service for fast informed loan decision making and risk mitigation by taking control of the loan origination process. Improve efficiency, control risk and reduce costs As the lending market evolves, all banks need to support growth by streamlining operations and reducing costs. This sounds simple enough, but banks have accumulated disparate lending systems over time as they have expanded into new geographies and new areas of commercial lending. To improve efficiency and reduce costs, you need a solution that is functionally rich and flexible enough to cover all aspects of lending, end-to-end. Misys centralises back office processes and reduces the number of systems needed, so you can enjoy a permanent reduction in total cost of ownership. Misys FusionBanking Lending Solution overview 9

10 Former reliance on nonintegrated legacy systems, with disparate origination, servicing and monitoring capabilities, is giving way to modern, workflow enabled commercial loan origination platforms. CEB TowerGroup Commercial Banking Report 2014 Take control of lending risk such as capital and resource consumption CEB TowerGroup Higher liquidity and capital requirements reduce banks ability to lend by forcing them to hold on to more assets in cash or cash equivalents, reducing overall returns. With Misys you can maximise your working capital and have more to lend out by effectively taking control of the latest Basel III requirements with more complete and accurate real-time data to leverage regulatory investment. With smarter limits management you gain full visibility of exposure, limit utilisation and breaches, as well as capital and funding consumption. Analyse your business today and identify tomorrow s opportunities Loan data reporting initiatives such as Anacredit are driving banks to gain a single version of the truth to calculate and report on risk, liquidity and capital. Data fragmentation is impacting the ability to analyse and optimise the business, client relationships, and the product portfolio. With FusionBanking Lending banks can extract relevant data and use analytic tools for real time operational reporting, financial analysis, exposure analysis and event metrics that examines the operational efficiency of the bank. Transform operational data into business intelligence, providing relevant information to management, in a user-friendly format, to facilitate critical decision making. 10 Misys FusionBanking Lending Solution overview

11 Faster and more informed lending decisions To make faster and more informed lending decisions you need to improve intelligence on your customers to fully understand their credit profile and business style. FusionBanking Lending enables you to gather this information, and improve transparency by bringing together the data points and customer information so you can truly know your customer and optimise opportunities, performance and profitability. Seamless loan trading Traders benefit from real-time information throughout the lifecycle of a loan, enabling better decision making in the front office and a comprehensive view of risk and performance across trading desks. You can view up-to-the-minute P&L and position information that includes back-office transactions that affect a trader s portfolio. If you have multiple locations globally, you can benefit from the multi-currency and multi-branch capabilities that give an immediate picture of company-wide performance. FusionBanking Lending is the preferred solution globally for loan syndication deal management. It manages the relationships, processes and all the documentation required to service complex syndicated deals for up to hundreds of lenders. Misys FusionBanking Lending Solution overview 11

12 Misys FusionBanking Lending Misys is unique in its full coverage of end-to-end lending. We are a proven solution provider with over 30 years experience, and over 100 lending customers covering 75% of the global syndicated lending business. Simplify the loan lifecycle and offer the widest range of lending products Vintage systems make it hard to keep pace with regulation, client expectations and to leverage analytics. FusionBanking Lending unifies commercial and corporate lending and provides end-to- end integration with the rest of the bank, from unified digital channels to risk and accounting. On a single platform banks can consolidate loan lifecycle management for all loan types, covering deals from the simplest to the most complex: from simple bilateral deals to asset-based lending and commercial real-estate and for loan syndications and trading. With an all-in- one approach banks can consolidate fragmented lending and risk systems and data, and reduce manual processes to simplify system complexity, lower processing costs, manage risk and innovate on service. Many financial institutions can but dream of a global platform based on single database with common, scalable operational processes. Complete automation and no rekeying of data between systems is the ultimate target of a single system, thereby reducing operational risk and improving workflow of the complete lending process. 12 Misys FusionBanking Lending Solution overview

13 With streamlined lending operations, our customers have experienced immediate increases in loan processing efficiency (30-45%), providing a scalable foundation for current and future growth. Misys simplifies the full end-to-end loan lifecycle from initial contact with the customer from loan origination and portfolio management, legal documentation, collateral management, risk management, and loan boarding through to loan servicing, compliance, reporting and settlement. Innovate to gain service agility and grow your business To stand out from the crowd, banks need to create more efficient and customer-centric sales processes that are driven by customer service rather than just price. By offering self-service to clients banks are able to boost their lending volumes and client acquisition. FusionBanking Lending gives your sales team a 360 degree view of the customer as well as a 360 degree of the business, including relationship mapping, portfolio health and exposures, so they have all the information they need for effective client relationship management and ultimately sales success. FusionBanking Lending offers advanced credit analytics with a single view of business to define market strategy and optimise loan decisionmaking. It helps banks to expand business with increased product support, new segments and client cross-sell. Control data to optimise compliance and liquidity Failure to de-risk will make lending too costly and unviable. IFRS9 and Anacredit demand consistent reporting and analysis of the lending book to understand exposures today and predict risk and cashflows tomorrow. With FusionBanking Misys banks are able to respond to external compliance needs with internal, easy-to-use, day-to- day process management and controls. Leverage advanced operational and credit risk management. No other solution provides the level of integrated risk management for credit, capital and liquidity risk or the operational workflow management and consistency across the entire lending business fully integrated with the Misys enterprise risk solution. Misys FusionBanking Lending Solution overview 13

14 Success stories Farm Credit Bank of Texas doubles loan portfolio Farm Credit Bank of Texas is unifying its entire lending portfolio with an integrated approach that boosts operational insight and efficiency, and gives its business room to grow About Farm Credit Bank of Texas Farm Credit Bank of Texas is a cooperatively owned wholesale bank with assets of approximately USD 18.3 billion. Part of the nationwide Farm Credit System, Farm Credit Bank of Texas provides loan funds and services to 14 retail lending cooperatives and two Other Financing Institutions (OFIs). The bank is also active in the capital markets arena, participating in large loan opportunities in the food, agribusiness, rural utility and rural communications sectors. The challenge With ambitions for growth in commercial and small business lending, the bank looked to replace a number of systems to simplify the loan origination and credit management process, giving it greater agility to win new business. The bank looked for a more efficient way to process and manage loans for its affiliates, which would enable them to deliver a faster response to end customers. The solution The bank found that Misys was the only company to provide full coverage across a wide variety of loan products in a single end-to-end loan lifecycle management system. The integrated end-to-end system delivers full workflow management, removing manual processes and any possible re-keying of data, and giving maximum efficiency in its loan operations to save costs. The system also allows for greater control of the loan origination process, with a common view of lending across its business. With more agility in origination, the bank is now able to tailor products for its corporate clients, differentiate itself from its competitors and support growth in a single system. The result Consolidating to a single platform will reduce system maintenance and integration costs boosting profit margins and increasing dividends for affiliates. Improved efficiency will enable the bank to effectively double its loan portfolio while keeping staff levels relatively flat. Employees can use timely, accurate information to drive betterinformed decision-making, improving services. 14 Misys FusionBanking Lending Solution overview

15 We have been able to effectively double our loan portfolio while keeping staff levels relatively flat. With deeper insight into customers and portfolios, teams will be able to make better-informed decisions, and engage more effectively with customers. Michael Elliott Chief Information Officer, Farm Credit Bank of Texas Misys FusionBanking Lending Solution overview 15

16 Success stories Banco Popular boosts efficiency & enhances customer service By consolidating our lending applications to unified Misys solutions, we expect to see cost savings of at least 25%. Francisco Moldenado Senior Vice President, Commercial Lending, Banco Popular de Puerto Rico 16 Misys FusionBanking Lending Solution overview

17 Banco Popular is consolidating its 17 lending application to a unified platform in order to strengthen compliance, improve efficiency and better serve clients. About Banco Popular de Puerto Rico A subsidiary of Popular, Inc., Banco Popular de Puerto Rico is the leading financial institution in Puerto Rico with USD 28,500 million in assets. Banco Popular provides financial services to more than 1.5 million retail and corporate clients. The challenge The bank had more than 100 employees handling different commercial lending back-office processes across a disparate collection of lending systems. This disjointed process was resulting in a lack of insight and control that is necessary to run cost-effective operations and to keep pace with ever evolving regulatory demands. To maintain its position as Puerto Rico s leading bank, even in the face of continued economic instability, Banco Popular had to run its operations as efficiently as possible, maintain outstanding customer service and meet the challenges of a rapidly evolving regulatory environment. To meet these ambitions, the bank realised that it needed a new approach to commercial lending. The solution Banco Popular embarked on an unprecedented initiative to consolidate 17 lending applications to a unified platform, built on Misys FusionBanking LoanIQ. With integrated data and common, end-to-end processes, the bank expects to bring a new level of transparency and efficiency to commercial lending operations. The bank can now take advantage of more accurate data and streamlined workflows across the lending lifecycle. The result Consolidating to a unified platform and driving greater process efficiency is expected to deliver cost savings of at least 25%. Enhanced operational agility and insight into customers will help Banco Popular deliver more responsive, personalised service keeping customers satisfied and loyal. Improved information traceability and moreflexible reporting will allow the bank to strengthen regulatory compliance. Misys FusionBanking Lending Solution overview 17

18 Professional services and customer support An industry proven best practice approach that s the guiding principle of our professional services and support model. Misys clients benefit from our long track record of successful implementations This is a huge transformation, and the benefits go far beyond cost savings it is more about transforming the way we interact with our customers and our regulators. Francisco Maldonado Morales Senior Vice President, Commercial Loans Operations, Banco Popular Professional services Best-practice delivery The Misys delivery model is incorporated into our entire product lifecycle. We leverage best practice business processes in the design, development and quality assurance of all of our products. While we acknowledge that one size doesn t fit all in financial software, we know that a delivery approach that focuses on industry proven best practice process models helps our clients to save costs and benefit from the institutional knowledge Misys has developed across thousands of successful implementations. It means: Faster implementation: Repeatable delivery means projects are shorter and more predictable. Reduced TCO: Clear focus avoids unnecessary expenditure. Less risk: A standard, proven approach means many risks have already been mitigated. Centre of excellence Co-located with our development teams, the 200-strong Misys Service Delivery Centre ensures that we share best practice both internally and with partners. It enables us to refine implementations offsite before taking them back to the client. Customer support Misys clients benefit from the expert knowledge of resources worldwide whose primary function is to provide professional, scalable software support and maintenance. Deep domain expertise Our technical and application support people have strong industry and product knowledge with continuous technical and industry training programs to ensure that Misys support teams can meet your evolving business needs. Scalable support model As a Misys client, you can choose from a standard, professionalised support model or a specialised, premium support package depending on your needs. Because Misys support has a broad, global footprint that operates in all time zones and regions, Misys teams can scale to your requirements. Valuable advisory services Our Systems Advisory Group (SAG) provides system reviews to help clients understand how to use their Misys systems more effectively and derive maximum value from their applications. SAG reviews have helped more than 80% of participating customers to identify ways to utilise their Misys software more effectively and use more system functionality. 18 Misys FusionBanking Lending Solution overview

19 Proven, award-winning solutions Global finance innovators 2015 & 2016 Winner for Transaction Services for innovation in cash and trade with HBL Winner for Transaction Services for innovation in corporate banking with Barclays Global Trade Review 2015 & 2016 Leaders in trade, Best Trade Finance Software Provider Trade Finance Awards for Excellence Best trade finance tech solutions company 2014, 2015 and 2016 Trade and Forfaiting Review Misys FusionBanking trade services solutions voted best technology for trade finance 2014 & 2015 CEB TowerGroup Best-in-class for corporate client service and transaction processing Celent Model Bank for Cash and Trade (Misys and HBL) Banking Technology Awards 2013 Misys Reader s Choice Best Payments Product or Service Chartis Research FinTech Quadrant 2016 Category leader for IFRS 9 Technology Solutions

20 About Misys Misys is at the forefront of the financial software industry, providing the broadest portfolio of banking, capital markets, investment management and risk solutions available on the market. With more than 2,000 customers in 130 countries our team of domain experts, combined with our partner eco-system, have an unparalleled ability to address industry requirements at both a global and local level. We connect systems, collect data and create intelligent information to drive smarter business decisions. To learn more about how our Fusion software portfolio can deliver a holistic view of your operations, and help you to solve your most complex challenges, please visit and on Twitter. For the latest news, interviews, videos and features from the financial technology industry visit Corporate headquarters One Kingdom Street Paddington London W2 6B United Kingdom T Misys and the Misys globe mark are trade marks of the Misys group companies Misys. All rights reserved. 506a / 0616