IBM can help you assess your current retail and wholesale payments platform, and implement new technologies and value-add processes to help decrease costs and enable the development of new capabilities, products and services. We can help your organization move toward an integrated system that improves process efficiency, maximizes cost effectiveness, facilitates enterprise-wide risk management and helps drive a positive customer experience. IBM also has a number of unique payment offerings that can address the wholesale and retail needs of payments from a real time transaction processing application to managed services for virtual wallets and P2P transactions.

1. James Wallis – Vice President, Global Payments Industry
August 2010
Payments
© 2010 IBM Corporation

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

3. Building a smarter planet
Reasons to be optimistic…
> 2.5 5.8% $1,264
billion CAGR trillion
Half the world Growth in world The value of
population is GDP2 from 2010 global assets3 will
still unbanked.1 thru 2025 will quadruple by
continue to put 2025.
legacy systems
under stress.
1 - http://financialaccess.org/sites/default/files/110109%20HalfUnbanked_0.pdf
2 - Nominal
3 - Assets = deposits, equity and fixed income
3 © 2010 IBM Corporation

4. Building a smarter planet
It Is Time To Consider Smarter Payments
Rethink the Develop New
Business Model Intelligence
Simplify & reduce Differentiate
the number product delivery
of payments via analytics &
processing silos. innovation.
Integrate Risk Management
Enable an enterprise view of risk across
payments fraud, financial crimes and
regulatory oversight.
4 © 2010 IBM Corporation

5. Building a smarter planet
Smarter Payments Is About Enabling The Most
Secure, Efficient And Transparent Processing
Environment Possible
+ + =
Smarter
Instrumented Interconnected Intelligent
Payments
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6. Building a smarter planet
Smarter Payments Delivered
90% 77% $3.5 trillion
Reduction in Increase in In FX trades
manual process processing per day
capacity
Bank of Depository Trust & CLS Bank
New York Mellon Clearing Corporation
6 © 2010 IBM Corporation

7. Building a smarter planet
Smarter Payments Delivered
10x 35% $400 million
The number Increase in Annual Savings
of credit cards access speed
processed
Large Chinese Rabobank Bank of Russia
Bank International
7 © 2010 IBM Corporation

8. Building a smarter planet
IBM Banking Industry Framework
Core Banking
Transformation
The payments and
securities domain helps you
Customer
IBM
Banking
Payments progressively transform your
Care and and
Insight
Industry
Framework
Securities payments operations to
become more flexible and
efficient
Integrated Risk
Management
8 © 2010 IBM Corporation

9. Building a smarter planet
IBM Banking Industry Framework
9 © 2010 IBM Corporation

10. Building a smarter planet
IBM Banking Industry Framework
IBM Payments
Solutions:
 ISV Applications
 IBM Software
 IBM Services
 IBM Technology
10 © 2010 IBM Corporation

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 value-
added solutions
11 © 2010 IBM Corporation

12. Building a smarter planet
IBM Centers of Excellence for Payments
Dublin Labs
Poughkeepsie La Gaude Montpellier
Barcelona Beijing Seoul
Silicon Valley Dallas
Sao Paolo
12 © 2010 IBM Corporation

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  Innovation
 Value  Leadership
 Reputation  Meeting expectations
 Competitive advantage  Client retention
13 © 2010 IBM Corporation

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

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 © 2010 IBM Corporation
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