As the sell side faces a myriad of challenges, technology will be a deciding factor in future success. In our latest slideshow, we look at three steps to help banks and broker-dealers prepare for what lies ahead: • Protect your business – take charge of risk and compliance • Operate with scale – manage escalating costs and protect margins for sustainable growth • Simplify complexity – get ahead of change with efficient processes and informed decision-making To learn more, view our slideshow.

1. WHY TECHNOLOGY
WILL SHAPE THE
FUTURE OF BANKING
Preparing for what lies ahead for banks and broker-dealers

2. The Sell Side Faces a Myriad of Challenges
2
REGULATORY
CHANGE, COSTS
AND RESTRICTIONS
RISK
REQUIREMENTS
DIGITAL
DISRUPTION
TECHNOLOGICAL
INNOVATION
MACROECONOMIC
UNCERTAINTY

3. Technology Will Be a Deciding Factor in Future Success
3
TAKE
ADVANTAGE
OF DIGITAL
INNOVATION
ACHIEVE
COMPLIANCE
AND GROWTH
NAVIGATE
AN EVER
CHANGING,
COMPLEX
MARKET
EXPLORE
NEW
OPPORTUNITIES

4. THREE STEPS
4

5. PROTECT
YOUR BUSINESS
Take charge of risk and compliance

6. Or are you making the best of regulation?
Is Regulation Getting the Better of You?
6
Through a more
connected agile
and transparent
enterprise, you
can manage
your business
more effectively
within regulatory
constraints.expect regulations to
significantly change their
revenue model
79%
The Five-year Outlook for Sell-side Banking, July 2016, FIS and Lantern Insights

7. Liquidity, Solvency, Profitability:
Are You Striking the Right Balance?
FIVE KEY STRATEGIES DRIVE OUTPERFORMANCE
Global
at-scale universal
Balance
sheet-light
investment
specialist
Distinctive
customer
franchise
Back-to-
basics
Growth-market
leader
McKinsey, Breakaway: How Leading Banks Outperform Through Differentiation
Regulatory requirements and low interest rates are challenging banks
to balance liquidity and funding costs with capital and solvency
– and at the same time remain profitable.
7

8. Can You Price Risk
With Precision?
8
New capital constraints make it
more important than ever to not only
measure risk correctly but also
price it accordingly.
The mispricing of risk was one
of the major causes of the global
financial crisis… Driven by several
forces: Competition, abundance
of liquidity, lack of innovation ...
and low interest rates.
CSFI and PwC, Banking Banana Skins 2015
– The CSFI Survey of Bank Risk

9. Is Your Reputation Safe and Sound?
9
Banks’ conduct
is increasingly
critical to reputation,
as is the security
of data.
rank cybersecurity as the
trend that will be most
important to their business
over the next five years
41%
The Five-year Outlook for Sell-side Banking, July 2016, FIS and Lantern Insights

10. FIS Can Help
BUILD A ROBUST FRAMEWORK
FOR MANAGING RISK
AND REGULATION
Enterprise-wide risk management
and pricing
Future-proof infrastructure to
support regulatory change
SIMPLIFY COMPLIANCE
Packaged solutions and advisory
services for individual regulations
Single platform for compliance
risk management
LAY STRONG FOUNDATIONS
FOR ACCURATE DATA
Centralized data management
strategy and storage
Advanced enterprise platform
for reconciliation
GAIN CONSISTENCY
AND VISIBILITY
Highly automated modules for all
types of risk calculation and pricing
Front-office trading risk management
and centralized collateral
management platforms
10
BRING YOUR
BANK TOGETHER
Comprehensive risk and
performance and treasury
management solutions

11. OPERATE
WITH SCALE
Manage escalating costs and protect
margins for sustainable growth

12. Are You Taking Charge of Your Costs?
With cost-income ratios
unsustainably high in
certain territories and
sectors, banks and
broker-dealers are
looking to drive
down their total
cost of ownership
for technology
12
The cost-income ratio for
many investment banks
70%
Accenture, Value Based Cost Reduction: Finding the Optimal Strategy for Revenue Growth

13. Is Regulation Reducing Your Margins?
As banks look
to drive more
value through their
operations, business
process outsourcing
can reduce the pain
and costs of
regulatory reporting
and supporting
reconciliations.
13
of large financial institutions
are happy to delegate all
of their reconciliations
to a fully managed service
52%
Aite Group, Reconciliation Centers of Excellence: An Assessment of Quality

14. Do You Need Scale on Your Side?
14
on external technology services,
compared to 17.7 billion in 2013.
By 2017, North American banks will spend
Without significant capital
expenditure in-house, banks
can take advantage of external
infrastructure and cloud-based
capacity that scales on demand.
Those active in derivatives are
especially keen to minimize
the impact of regulation on
post-trade processing,
through outsourcing.
Celent, IT Spending in Banking – A Global Perspective

15. FIS Can Help
15
FOCUS ON
YOUR STRENGTHS
Full spectrum of services from
hosting to managed utilities
Technology and expertise for
managing data and generating
standardized reports
In-depth knowledge of solutions
and supporting processes
TRANSFORM DERIVATIVES
CLEARING PROCESSING
Fully managed industry utility for
post-trade futures and cleared OTC
derivatives operations
Greater efficiency, less risk and lower
total cost of ownership
Significant economies of scale in
middle and back-office processing
and technology

16. SIMPLIFY
COMPLEXITY
Get ahead of change
with efficient processes
and informed decision-making

17. Are You on Top
Of Market Change?
17
From new central clearing mandates for
OTC derivatives to T+2 settlement cycles
for securities processing, technology will
be key to managing the operational
impact of market evolution.
Compliance with regulatory
reforms has largely depended
on the introduction of new trade
and risk reporting systems.
Accenture, Investment Banking Technology: Jettisoning
Legacy Architectures

18. Could you Simplify
Your Systems?
18
As banks reduce silos,
they are looking to bring systems
and functions together, consolidate
operations – and introduce more multi-
asset platforms from fewer vendors.
Chartis, Key Trends, Drivers and Expenditure for Risk Management
Software in Tier 1 and Upper Tier 2 Sell-side Banks
One large bank went from
more than 40 market risk
management systems
to two or three.

19. Is Your Treasury in Control?
19
IN FAST MOVING,
VOLATILE MARKETS,
TODAY’S TREASURY
MUST
Ensure
access to
liquidity while
maximizing return
View and manage
overall cash
positions and
risk exposures
A fragmented, complex IT landscape
can stand in the way of the accurate,
up-to-the-minute data that
treasuries require.

20. Are Your Calculations
In Sync?
PwC, Will FRTB Sort out Front Office, Risk
and Finance Data and Technology Alignment?
In most banks, across risk,
treasury and finance there is little
integration to the front office.
20
With the emergence of XVA valuations,
there is already growing awareness of
how different risk classes interact.
But under FRTB in particular, risk
and the front office will need to take
a more joined-up approach
to risk calculations.

21. FIS Can Help
CONNECT AND
CONSOLIDATE
Integration of previously
siloed functions
Global, multi-asset solutions
INTEGRATE AND ALIGN
Entire ecosystem of front-,
middle- and back-office solutions,
supporting consistent calculations and
connectivity to external infrastructure
21
STREAMLINE BY DESIGN
Advisory services, provided in
partnership with Capco, to create
a more agile technology environment
and improve efficiency, transparency
and control
SIMPLIFY AND
SYNCHRONIZE
Powerful risk analytics engine
for derivatives pricing
Enterprise-wide risk
management infrastructure

22. ARE YOU
READY?
getinfo@fisglobal.com
CONTACT US TO
LEARN MORE

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