Sberbank Venture Funds Strategy

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Sberbank Venture Funds Strategy Bled, September 0 Dr. Mircea Mihaescu Director, IT Strategy and Venture Capital, Sberbank Group @MirceaMihaescu

Sberbank Strategic VC Investments Objectives Build a Corporate Venture Model that is as close as possible to a real venture capital model independent fund and fund management, direct investment from managed funds, aligned and supportive of bank business and IT strategy. Create a Window on Technology : monitor new technologies, markets and business model trends (intelligence function); learn from new ventures about potential revolutionary or disruptive innovations and future business opportunities. Develop Options: develop real strategic options for future corporate growth; develop new businesses for diversification purposes, ideally to create a new business unit or a future new core business. Foster Corporate Entrepreneurship: encourage bank employees to be more entrepreneurial, encourage fresh, market-oriented thinking; enhance network relationships and an internal open innovation culture. Leverage Corporate Assets: exploit under-utilized corporate assets; stimulate demand for corporate products and technologies; promote industry standards that support the bank business.

Sberbank Venture Capital Investment Framework

Technology is moving fast on business enablement and requires to quickly align with major trends Mobile banking/remote apps & services New generation payments Geolocation Social channels & digital marketing Extension of internet banking functionality to mobile devices; Web-based banking and nonbanking financial services; Banking and non-banking mobile payments & new currencies Using geolocation and in-door positioning (e.g. locating of ATMs or branches) Social media tools administer campaigns and interactions across social networks, New natural interfaces Big data Enhanced decision making support Digital identity Siri-like services, camera in userdevice for application control, interactive chat accessible from any channel, Useful insights from analysis of large bulks of internal and external unstructured data Top and middle management dynamic dashboard updated real time Online contract signing / secure authorization and identification via digital signature

Technical innovations also boost performances and efficiency of Infrastructure and enablement overall Cloud computing Parallel & distributed computing In-memory computing Virtual desktop infrastructure Dynamically scalable and multitenant resources are provided as a service, with dynamic cost allocation and automated orchestration Technology architecture for the heavy-loaded information systems Dramatic improvements in the speed of data processing and analytics applications, allowing complex decisions to be made in real time Infrastructure that provides virtual, managed by enterprise IT, desktops to users through network Software-defined networks Enhanced metadata management Enterprise collaboration tools Preventing & reacting to cyber attacks Using open-source switching and routing software on commodity hardware Implementation of data quality control and management tools, applying innovative architecture for metadata management Adopting internal social collaboration tools to improve communications and productivity Tools to prevent and react to cyberattacks (e.g. DDoS)

Technology is moving fast both on business enablement and pure technical innovation and Sberbank is exploring most of the trends Not under consideration Business case validation Pilot / prototype / platform Rollout planned Rollout in progress Technology-enabled business trends affecting business models or customer experience/interaction with the bank Mobility Social channels Data & analytics Customer experience Key trends Mobile banking/remote apps & services New generation payments Geolocation Social channels and digital marketing Innovative credit scoring 0 Big data Enhanced decision making support Real multichannel integration Web / call center / video convergence New generation natural interfaces Digital identity Personal digitalizing devices Status Technological trends affecting reliability and cost of service delivery Infrastructure Architecture Capabilities Key trends 0 Cloud computing Parallel & distributed computing In-memory computing Bring your own device Virtual desktop infrastructure Software-defined networks Horizontal clustering architecture (e.g. Amazon, Google) Enhanced metadata management Open source software Agile application development Enterprise collaboration tools Status Advanced automation STP & fully digital bank Advanced self-service Cyber security Preventing & reacting to cyber attacks

Technology Trends Business Applications Trends Prioritization matrix Plan deployment 0-0 Mobile banking/remote apps & services Explore: investigate & potentially deploy Mobility New generation payments (e.g. NFC, mobile, PP) Geolocation Not a priority 0 Social channels Data & analytics Customer experience Social channels and digital marketing Big data Innovative credit scoring Enhanced decision making support Real multichannel integration Web / call center / video convergence 0 New generation natural interfaces Digital identity Personal digitalizing devices Potential business impact Low Medium High Advanced automation STP & fully digital bank Advanced self-service Low Medium High Technological risk

Technological Trends -- Infrastructure Trends Prioritization matrix Plan deployment 0-0 Cloud computing Parallel & distributed computing Explore: investigate & potentially deploy Not a priority Capabilities Infrastructure Architecture In-memory computing Bring your own device Virtual desktop infrastructure Software-defined networks Horizontal clustering architecture (e.g. Amazon, Google) Enhanced metadata management Open source software 0 Agile application development Enterprise collaboration tools Potential business impact Low Medium High 0 Cyber security Preventing & reacting to cyber attacks Low Medium High Technological risk