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Slide 1: James Wallis – Vice President, Global Payments Industry August 2010 Payments © 2010 IBM Corporation
Slide 2: Building a smarter planet Key Payments Industry Drivers  Payments Processing Efficiency  Corporate Services  Retail Payments  Digital Payments  Payments Risk and Compliance 2 © 2010 IBM Corporation
Slide 3: Building a smarter planet Reasons to be optimistic… > 2.5 billion Half the world population is still unbanked.1 5.8% CAGR Growth in world GDP2 from 2010 thru 2025 will continue to put legacy systems under stress. $1,264 trillion The value of global assets3 will quadruple by 2025. 1 - http://financialaccess.org/sites/default/files/110109%20HalfUnbanked_0.pdf 2 - Nominal 3 - Assets = deposits, equity and fixed income 3 © 2010 IBM Corporation
Slide 4: Building a smarter planet It Is Time To Consider Smarter Payments Rethink the Business Model Simplify & reduce the number of payments processing silos. Develop New Intelligence Differentiate product delivery via analytics & innovation. Integrate Risk Management Enable an enterprise view of risk across payments fraud, financial crimes and regulatory oversight. 4 © 2010 IBM Corporation
Slide 5: Building a smarter planet Smarter Payments Is About Enabling The Most Secure, Efficient And Transparent Processing Environment Possible + Instrumented + Intelligent = Smarter Payments Interconnected 5 © 2010 IBM Corporation
Slide 6: Building a smarter planet Smarter Payments Delivered 90% Reduction in manual process Bank of New York Mellon 77% Increase in processing capacity Depository Trust & Clearing Corporation $3.5 trillion In FX trades per day CLS Bank 6 © 2010 IBM Corporation
Slide 7: Building a smarter planet Smarter Payments Delivered 10x The number of credit cards processed Large Chinese Bank 35% Increase in access speed Rabobank International $400 million Annual Savings Bank of Russia 7 © 2010 IBM Corporation
Slide 8: Building a smarter planet IBM Banking Industry Framework Core Banking Transformation Customer Care and Insight IBM Banking Industry Framework Payments and Securities The payments and securities domain helps you progressively transform your payments operations to become more flexible and efficient Integrated Risk Management 8 © 2010 IBM Corporation
Slide 9: Building a smarter planet IBM Banking Industry Framework 9 © 2010 IBM Corporation
Slide 10: Building a smarter planet IBM Banking Industry Framework IBM Payments Solutions:  ISV Applications  IBM Software  IBM Services  IBM Technology 10 © 2010 IBM Corporation
Slide 11: Building a smarter planet The IBM Banking Framework Delivers Value  Simplifies infrastructure, reduces costs, and enables growth through innovation  Enables integration of information and processes  Technology adapts to changing business needs  Drives a greater return on project investment  Speeds deployment of valueadded solutions 11 © 2010 IBM Corporation
Slide 12: Building a smarter planet IBM Centers of Excellence for Payments Poughkeepsie Silicon Valley Dallas Dublin Labs La Gaude Montpellier Barcelona Beijing Seoul Sao Paolo 12 © 2010 IBM Corporation
Slide 13: Building a smarter planet IBM Services According to an independent marketing intelligence study conducted by National Analysts Worldwide, IBM Global Business and Technology Services leads in overall client satisfaction, surpassing all top competitors on eleven core service attributes including:  Overall satisfaction  Value  Reputation  Competitive advantage  Innovation  Leadership  Meeting expectations  Client retention 13 © 2010 IBM Corporation
Slide 14: Building a smarter planet IBM Services When comparing IBM to other providers, survey participants expressed greater likelihood to:  Choose IBM if they need consulting services from a provider in the future  Choose IBM if they need additional IT services in the future  Make the same decision to purchase services from IBM knowing what they know now. 14 © 2010 IBM Corporation
Slide 15: Building a smarter planet Long Term Vision for Payments “ Regardless of the economic environment, continued investment in a long-term IT payment strategy focused on agility and transparency is imperative if banks are to maintain a healthy and vibrant payment franchise in the face of increased competition and regulatory changes. Banks that succumb to short-term IT cost-cutting measures will struggle to maintain profitable payment operations and will lose competitive advantage.” Gartner: Banks Must Maintain Their Long-Term IT Strategy in Payments 15 15 © 2010 IBM Corporation