Financial IT Systems in Emerging Markets

1. Financial IT Systems in Emerging Markets How you address the requirements of Vietnam

2. Outline 1. Economy & Financial Industry 2. Requirements for IT Systems 3. Bavaria Banken Software – Solutions

3. Financial System Products / Services Market Player Processes IT 1. Economy & Financial Industry Fundamental economic changes

4. 1. Economy & Financial Industry Size of state-owned enterprises in Vietnam Source: Vietnam Development Report 2007, No. 38064-VN, World Bank

5. 1. Economy & Financial Industry Economic performance Source: Asian Development Bank 2007

6. Deregulation efforts for the economy Privatization efforts in terms of encouraging private entrepreneurship and privatization of state-owned enterprises Diversification of the economy from usually natural resources Opening of the market successively Increasing investment level Enhancing international trading Increasing income level and consumer spending Financial system has to build an adequate framework 1. Economy & Financial Industry Common economic developments and reforms

7. 1. Economy & Financial Industry Financial penetration of the economy Source: Vietnam Development Report 2007, No. 38064-VN, World Bank

8. Loosening restrictions for foreign banks Wholly owned subsidiaries possible in 2007 Permitted holdings on Vietnamese banks rise up to 20% (from 10%) Privatization of state-owned banks Strategy for the capital market development Modernizing regulatory framework and information systems Improvement of private-owned banks activities New requirements for processes, know how and stronger competition 1. Economy & Financial Industry Government strategy for the financial sector

9. Securities business / investment banking / asset management / private equity Credit / loan business Foreign trade financing / business Payment transaction (national/international) Varieties of new services / products and business models 1. Economy & Financial Industry Main issues for products / services

10. Getting competitive with new market players Capabilities of processing a variety of new financial services Increasing know-how of human resources needed Meeting the requirements for the regulatory framework Enhancing the degree of automation Catching up with well developed technology very fast Technology has to cope with rapid changes Minimizing investment risks Demand for highly flexible IT applications and processes 1. Economy & Financial Industry Business processes and IT applications

11. IT Systems 2. Requirements for IT Systems Fundamental economic changes Financial System Products / Services Market Player Processes IT

12. Commonly optimizing knowledge needed for the new products/services needed about business processes and application requirements Description of business processes and application requirements commonly necessary Starting business as soon as possible Fast software implementation is necessary ROI / amortization of the project to be reached very quickly First costs reasonable and corresponding to business volume Potential lack of trust in case of a foreign software provider Challenge to cover these topics simultaneously 2. Requirements for IT Systems Common project conditions

13. Operation and further functions Conception via Test Installation Project Definition Configuration and Testing Defining business to be conducted and goals Minimum set of functions Future set of functions Configuration / realization of enhancements absolutely necessary Strong employee involvement in testing Accompanied first operation phase Ongoing support by a local partner Enhancing application in compliance with business development Strong employee involvement in system testing Documentation of processes / requirements Proof of minimum feature set System proof 2. Requirements for IT Systems Overview project approach

14. 2. Requirements for IT Systems Necessary properties of the application / supplier • Application already proved in international business • Very fast application set up capabilities with basic configurations and standard functions • Very high degree of application configuration possibilities • Easy integration in existing IT environment • Easy and fast integration of new functions • Realization of enhancements not bound on fixed release dates • Building a trustful business environment • Supplier is locally present or cooperating with a local partner

15. International Banking Package (IBP) as solution for the back office in the financial business Over 20 years experience in banking sector Experienced in the international business environment Strong complementary partnerships with local partners for consulting for implementation and support with complementary software suppliers Cultivating long lasting customer relationships Bavaria Banken Software proved as competent, trustful and reliable partner 3. Bavaria Banken Software – Solutions Bavaria Banken Software

16. 3. Bavaria Banken Software – Solutions International experience

17. Covering all business areas in investment banking 3. Bavaria Banken Software – Solutions Overview IBP

18. 3. Bavaria Banken Software – Solutions Main properties of IBP • Fulfilling tight time to market requirements • Building up operational system with standard functions very quickly • Starting project within a very short time period • Realization of individual development irrespective of release dates • High flexibility • Applicable as core system or as subsystem with single modules • Consistent parameter control for products/processes • Easy integration with standard interfaces • Easy enhancing of new functions/features • Cost-benefit effectiveness • Strict compliance with Straight Through Processing • Flexible pricing models according to business volume/functions • Designed for international application from the beginning

19. 3. Bavaria Banken Software – Solutions Success stories • Deutsche Bank Luxembourg • Business relationship for over 20 years • Continuously extention of new modules and functions according to further business development of the bank • VTB Bank Austria • Solution for securities system set in operation within 30 days • Credit Suisse • Operated 30 foreign subsidiaries worldwide • Development of the securities system worldwide

20. 3. Bavaria Banken Software – Solutions Highlights investment banking – securities business • Processing of a wide variety of international securities • Variable currency constellations • Wide variety of tax calculation • Covering all needed administrative processes • Customers‘ order/transaction management • Inventory management • Corporate Actions • Portfolio Management

21. IBP is aimed for the needs of investment banking in emerging markets 3. Bavaria Banken Software – Solutions Highlights investment banking – credit business • Extremely flexible handling of special agreements • Any number of accounts and involved parties possible • Handling loans ranging from micro loans up to syndicated loans in any currency • Adaption/Changes of credit conditions at any time • Integrated collateral management

22. 3. Bavaria Banken Software – Solutions Contact information Richard J. Lee Senior Adviser Pacific Pro Services Corp. 21 Ngõ 259 Phố Huế, Hai Bà Trưng, Hà nội Phone +84 /4/ 9764634/35 Fax +84 /4/ 9764636 E-mail: richard@pps.com.vn Internet: www.pps.com.vn Hartwig Stoeckl Vice President Bavaria Banken Software GmbH Gruenwalder Weg 28 a D-82041 Oberhaching / Munich Phone +49 / 89 / 665 187 - 45 Fax +49 / 89 / 665 187 - 99 E-mail: stoeckl@BavariaBanken.com Internet: http://www.bavariabanken.com