HP BSM for Wholesale Payments An integrated Payments Monitoring solution

1. HP BSM for Wholesale PaymentsAn integrated Payments Monitoring solution Optimizing your Payments Processes to drive increased revenues, lower cost of operations and decrease operational risk Ken Blackwell Director, Product Marketing

2. Commoditization of wholesale products and services Inorganic growth through mergers and acquisitions Operational risk elevated to an enterprise concern Merged operations result in increased complexity and cost Integration and transparency a key to successful organic growth initiatives Siloed operations drives high cost and impedes customer experience Challenges facing Wholesale Banks EXTERNAL FORCES OperationalHurdles Customer Expectations INTERNAL PRESSURES

3. Wholesale Banking imperatives

4. Most large corporations have successfully implemented many supply chain initiatives and have similar expectations for the banks they work with. Before banks can deliver these integrated services they need their own integrated and holistic view of their payments business. Forrester Research defines BSM as “Software that dynamically links business-focused IT services to underlying IT infrastructure. A business-focused IT service may be specific or part of a business process, but it must support a significant, visible metric for a business owner”. The Forrester Wave ™: Business Service Management, Q1 2007, March 28, 2007 Business Service Management (BSM)The Critical First Step

5. HP’s BSM PortfolioDriving a top-down business focused agenda for IT Event UCMDB Service dependency mapping Service level management Incident Problem Change Configuration Discovery services Release Integration with key IT Service Management processes Top-down business view • Business availability • Business transaction management • Business service level management • End-user experience • Diagnostics and guided problem isolation • Consolidated infrastructure operations • Service impact analysis • Cross-domain correlation and root cause • Consolidated event and performance • Infrastructure lifecycle management Bottom-up infrastructure view

6. HP BSM for Wholesale Payments

7. Business Service Management Benefits HP - Experience Innovation

8. Payments Monitoring Requirements Business Managers • Payment instance lifecycle monitoring, including business attributes • Know there is a problem before your customer • Identify critical high-value payments • Measure service levels for key customers • Alerts based on aggregate intraday payment activity outside of historic norms • Project your end-of-day position early in the day • Enabling white label services • Provide direct visibility into the payments process through web views

9. Payments Monitoring RequirementsIT Managers • Payment process visibility to support the business • Relate IT failures to their business impact • Multidimensional monitoring of transactions from the perspective of customers, payment services, and transaction value • Reasonable implementation effort and on-going support for vertical integrations with business requirements • Non-intrusive to existing applications & middleware • Support problem resolution through drill-downs to culprit application middleware components • Integrated BSM solution from a minimal set of vendors

10. Key Performance Indicators Intraday monetary value of cleared and in-flight payments STP rate MTTR - mean time to repair (automated & manual) % repair by customer # valid payments not processed by cutoff time # failures over time MTTP - mean time to process Ave daily volume Peak volume (last 2 hours) Book transfer rate % Future dated payments processed Daily volume in/out (by settlement network) Key Risk Indicators Payment queues bigger than normal (repair, compliance, etc) Projected in-flight volume at cut-off time based on historic performance and today’s volume Performance (actual and projected) of key customers’ payments Loss of connectivity to clients, settlement channels at key times Slowdown in external service providers threatening service levels Ability to switch to disaster recovery site Ability to recover from point of failure Example Business Metrics Monitored by HP BSM for Wholesale Payments

11. Optimize Wholesale Payments processing with Business Service Management from HP Why HP’s BSM solutionCritical to Business Service Management Initiatives • Complete monitoring coverage, all the way from network path to business transactions • Business impact analysis based on actual payments • Auto-discovery of transaction processing routes • End to end management of business transaction performance and availability • Look-ahead prediction of business impact based on trends • Fully integrated solution from a single vendor

12. Business Impact of Intraday Payments Processing In-process volume In-process value Incoming/Outgoing value Incoming/Outgoing volume In-process volume trend In-process value trend Understand business impact by customer, clearing service, or any other business or IT dimension Track payments in native currencies… Search for payment instance by keys meaningful to business users … and normalized to a common currency Click to drill down to detailed tracking of end-to-end payment processing

13. MQ Web Services End users MQ JDBC, PL SQL MQ Source: IBM Integrated Payments Monitoring Architecture Business KPI’s and Alerting Business KPI’s and Alerting Payments Monitoring Dashboard Payment Events Flow Up Payment Process Monitoring Drill-down to Identify the Culprit Payment Transaction Tracking Infrastructure &Application Monitoring Existing payment infrastructure

14. End-to-end Monitoring of Payments Business Process Visualize complex payment processes in an intuitive model Understand the payment volume and value at each step of the business process Bird’s eye view of exception impact on backlogs and STP Quickly identify failures in the process and backlogs

15. Easily define and monitor on significant Payment KPI’s Simple visualization or notification of issues Easily define and monitor IT and Business KPI’s Historical analysis for identifying/improving problem areas

16. Payment Transaction Tracking Report Find the status of any payment based on time, or business content such as customer ID Drill down to view infrastructure details See a list of all payments in the system, regardless of where it is in the business process

17. BSM For Wholesale PaymentsSolution Value Proposition Summary • Increase operational efficiency • Know the status of every payment transaction all the time • Monitoring the overall health of key payments processes • Identify and resolve payment processing problems in time to reduce risk • Increase customer satisfaction and mitigate Reputation Risk • Proactive notification when a payment is at risk • Greater customer visibility into their payments status • Mitigate Operational Risk • Measure, monitor, and react to situations that create exceptional exposures

18. The HP difference Rich heritage in the Financial Services Industry • HP understands the needs of the financial services industry with significant presence in the world’s top 200 banks, top 50 brokerages, and the top 50 global insurance carriers Number 1 in Business Technology Optimization (BTO) software • HP is the #6 largest provider of software on the globe • HP BTO Software brings together trusted brands such as Mercury Interactive and HP OpenView to deliver the richest set of capabilities for optimizing the business outcome of IT Global reach • HP is among the world’s largest IT companies, with revenue totaling $91.7 billion for the four fiscal quarters ended Oct. 31, 2006. • More than one billion customers in more than 178 countries on five continents • 150,000 employees worldwide • 2006 Fortune 500 ranking: No. 11

19. Product Specific BACKUP

20. HP BSM for Payments – Business Availability Center HP Business Availability Center™ Business Service Dashboard End UserManagement (BPM and RUM) ProblemIsolation Service LevelManagement Business Process Management (BPI) System Availability Management (SiteScope and Ops Center) Application Mapping Diagnostics (J2EE, .NET, ERP/CRM) Business Transaction Management (RUM, TV) Foundation Universal CMDB (Discovery, Federation, Reconciliation, Visualization, Change Tracking) Alerts and Notifications Service Impact Analysis Enterprise Reporting Third-Party Integration

21. HP BSM for Payments – Business Availability Center • HP BSM for Payments emphasizes key products in the BTO portfolio: • Business Availability Center Dashboard for single-pane-of-glass presentation of service levels, alerts, and KPIs critical to payments • HP TransactionVision for instance level monitoring and tracking of automated payment transactions across heterogeneous environments, including payload interrogation of common payment data formats (SWIFT) • HP Business Process Insight for monitoring the payments business process, including non-automated steps, and reporting IT’s impact back to the business • Other BAC portfolio products are applicable to most payments environments

22. HP BSM for Payments -Business Availability Center Dashboard • BAC Dashboard provides a single pain of glass • Shows from business and IT contexts the status of the Payments Business Service • Enables ‘role based’ views • Why does this matter? • It allows IT to make decisions based on business context information • It gives transparency of Payments Processing into the business to enable better risk actions / plans

23. HP BSM for Payments -Business Availability Center Dashboard

24. HP BSM for Payments – TransactionVision • “TransactionVision provides real time, end-to-end visibility into the business services by tracking real transactions” • Key Attributes: • Non-intrusive; no changes to applications, middleware, network, … • Auto-discovery of transaction flows • Built-in understanding of common transaction data formats, including SWIFT • Out-of-box support for common infrastructure technologies, as well as not-so-common technologies often used in payments (Tandem, Tuxedo, …) • Built-in integration with HP Business Process Insight • Built-in integration with HP BAC Dashboard and the rest of the BAC family of products

25. HP BSM for Payments – TransactionVision Transaction Topology view linked from BAC Real Business impact report/analysis BAC Integration enables context sensitive drilldown into specific TV transaction reports

26. HP BSM for Payments – HP Business Process Insight • “HP Business Process insight provide visibility in the performance, availability and effectiveness of key operational business processes” • Key Attributes: • Up-to-the-minute view into the health & performance of a business process or process segment • Automatically track and escalate against business level KPIs & service objectives • Alarm & direct actions from business flow rates,timings & backlogs • Translate IT service impacts into business impact information • Non-intrusive; no changes to applications, middleware, network, … • Optimize business process execution

27. HP BSM for Payments – HP Business Process Insight Business Process Views View business flow rate, track each transaction, highlight bottlenecks and demand changes Payment instance viewDrill-down (or find) a specific payment. See payment details, it’s particular route or bottleneck. Overall and per process step performance See duration of each step along with volumes and values of payments flowing through each step