Infosys Finance Transformation Solution for Financial Services Industry

1. Infosys Finance Transformation Solution for Financial Services Industry Oracle Open World 2013

2. Introduction Table of Contents Introduction Performance vs. Risk Viewpoint Global Scenario Infosys Finance Transformation Approach Infosys Finance Transformation Solution

3. Introduction Introduction • The FSI industry is under severe stress to • Achieve risk-weighted profitable growth • Address changing regulatory compliance and accounting requirements • Continue business growth by providing products at the right price and value to customers • Enhance employee productivity through higher automation and simplified reconciliation • Currently finance, risk management and performance management systems are not integrated causing reporting inaccuracies, reconciliation issues and limited visibility to react to market trends • To meet these challenges, Infosys has developed a Finance Transformation solution consisting of products, accelerators and services provides a • Single source of truth for finance, risk management and enterprise performance management • Common reference data model for enterprise applications • Single point of reconciliation • Simplified IT architecture supporting an end-to-end process from sub-ledger to external reporting

4. Global Scenario Finance functions are evolving towards the goal of a Value Integrator • Efficiency Challenges • Finance continues to spend nearly 50% of its time on transactional activities • Over 25% lack the necessary common data definitions and processes • Nearly 40% of enterprises produce metrics manually • Over 35% of the companies lack a common reporting platform • Insight Challenges • Nearly 50% lack a common planning platform • 55% aren’t satisfied with their operational planning and analytical capabilities • Over 50% manually produce operational metrics • 44% are poor to average at anticipating external forces High • Operators • Operation focused • Information provision • Performance driven • Value • Integrator • Overall performanceoptimization • Predictive insights • Efficient decision making Finance Efficiency • Scorekeepers • Data recording • Book keeping • Controlling • Advisors • Focus on analytics • Low process focus • Fragmented processes Low Low High Business Insight Infosys Confidential

5. Global Scenario Linking Risk and Performance Management Processes Business Driver: The fallout of the financial crisis exposed one clear shortcoming: inadequate risk assessment practices. Too many companies took on excessive risk with little regard for realistic, long-term performance expectations. One result of this crisis is an increased focus on Enterprise Performance Management and its links to Enterprise Risk Management. Market Trend Business Issue Point of View Outcome Large scale regulatory changes are forcing banks to look hard at the way they operate. The regulatory environment around capital and liquidity reporting, and the reporting of P&L and risk exposures are changing Integrate Finance, Risk and Business Intelligence for informed view of risk adjusted performance Transactional data is generally separated, due to the belief that Finance, Risk and Operations communities need to process and adjust the same set of data so differently that each must have its own dataset, which is inefficient & leads to errors Create long term sustainable Economic Value

6. Global Scenario Achieving Business Goals Performance Viewpoint Risk Viewpoint Effective Capital Management • Information overload – varied financial product offering of the bank • Insensitivity to economic indicators which have considerable impact on the business growth • Seeks consistent & relevant data across all products for comparative analysis • Strategicview of performance management for effective decision making • Capital requirements – understanding capital adequacy on individual risk basis • Agility in reacting to changes in changing risk factors and identifying emerging risks. • Flexibility to incorporate additional products into risk modeling • A simple, swift and scalable solution with measurable outcomes for enterprise wide risk reporting Maximize Shareholder Wealth Meet Stakeholder Expectations Predictive Financial Reporting

7. Infosys Finance Transformation Solution

8. Finance Transformation Solution Finance Transformation – What it offers The solution covers the full breadth of data flows from various source systems till management reporting through seamlessly integrated business processes across all industry segments. It helps address the need of financial enterprises to shift from being a finance steward to a strategic business partner. The solution has three pillars, Product Components, FSI Scenarios and Accelerators and Transformation Services

9. Finance Transformation Solution Finance Transformation – Indicative Architecture Note: The solution is NOT a “one size fits all”. The components can be customized to address your specific business imperatives

10. Finance Transformation Solution Solution Highlights Integrated Scalable Solution • Integrated solution for multiple financial requirements • Flexibility to source data from various system as per the requirement, adaptable to changing regulatory and accounting requirement Single Source of Truth • OFSAA staging as single storage for various accounting and regulatory requirement enabling consistency and Traceability • OFSAA staging is extended to handle data from and for multiple source system providing high quality data End to End Processing • Source data stored and processed in OFSAA • Transaction data transformed in Accounting data in FAH • Summarized data in Oracle GL Unified Data Model • Common Data Model for OFSAA and FAH Better Reporting • With Hyperion and OBIEE integration

11. Finance Transformation Solution Infosys Differentiator Pre-Defined Repositories for Rapid Implementation FinRECON for ease of reconciliation Infosys Tools and Accelerators Dash Board • Pre-defined Accounting rules library for multiple representations across products and an enhanced OFSAA data model for accounting requirements • Pre-defined reference model to enable easy integration with existing applications and create a common operating environment that minimizes operational risk • Pre-defined use cases, design documents, business processes and workflows • Pre Built integration with the OFSAA and EBS to pull in necessary data for reconciliation • Enabled with multi-way matching capability to reconcile data from multiple source systems simultaneously and present the discrepancies in a unified view to the end users • Facilitates better data management with integrated approach towards adjustments, enabled by faster and easier identification of affected transactions in reconciliation process • Has a pre-built CRO dash boards with insight into key data points, heat map for risk mitigation • Integrated view dashboard with risk return metrics, key performance indicators to help in decision making • Predictive Financial reporting based on integrated profitability tools • Add-on on top of Oracle offerings to fill product gap for e.g. ALM-LRM Integration, • Pre-built integration between different Oracle product stack for e.g. OFSAA and FAH

12. Finance Transformation Solution Perceived Benefits post Solution Implementation Integrated Risk and Performance Management Frame-work Risk adjusted performance in a seamless and granular fashion Unique Management Ledger paving way for GL reconciled performance measurement Common application infrastructure for optimizing data management Pre-integrated business analytics providing perspective and insight into business Improve straight through processing Comply with multiple accounting requirements

13. Infosys Finance Transformation Approach

14. Finance Transformation Approach The Infosys Finance Transformation approach places emphasis on process & data integration Enterprise Risk and Performance Management Strategy Formulation & Planning Processes Build missing links between strategy development, ongoing management and organization alignment Strategy Alignment Risk and Performance Management Integrated Business Intelligence Integrated Business Intelligence Metrics Based Framework & integrated analytics to facilitate decision-making Integrated Risk and Performance Management A framework to align the entire organization towards execution

15. Finance Transformation Approach The transformation can be effected in a series of well planned steps Finance Excellence can be achieved in several steps Determine services needed, and delivery/management model to support strategic objectives Reduce complexity & implement Best Practices across enterprise Reduce manual effort and errors IT enablement for lowest service delivery cost Deliver standard services through best provider Leverage Delivery Automate Standardize Simplify Eliminate Strategic Alignment Organization & Operational Strategy Harmonize Processes & Reporting Simplify Application Architecture Infosys Confidential

16. Finance Transformation Approach Target is to derive benefits from key initiatives

17. Thank You