overview of operations cft group of...

OVERVIEW OF OPERATIONS CFT Group of Companies 2015

www.cft.ru www.group.cft.ru

ТОР-5 CFT is among the

software developers in Russia

500 Over

banks of Russia and the CIS use CFT software products and services

1991 FT has been in the market

since 1991

ABOUT THE COMPANY

CFT PRODUCT LINE

CFT BRANCH OFFICES

Products for:

• core banking

• carrying out all types of banking activities

• bank participation in the payment market

• Novosibirsk —Chief Development Centre

• Moscow—Marketing and Sales Centre

• 17 development centres in the leading economic regions of the RF

• Representative offices abroad: Almaty, Kishinev

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FINANCIAL PERFORMANCE

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Growth in Revenue from the Sale of Products and Services of the CFT Group over the Last 5 Years

TOTAL REVENUE CFT Group:

* certified by the KPMG audit firm **including VAT

REVENUE CFT Group, RUB billion

*

**

5,3

2010 2011 2012 2013 2014

8,7

12,2

14,3

16,0

2014 г. – 16 058 432 644

2013 г. – 14 335 244 430

2012 г. – 12 220 498 659

2011 г. – 8 636 757 822

2010 г. – 5 294 458 387

Banks

MAJOR CUSTOMERS OF THE CFT GROUP

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Retail chains Corporations, holdings, and public companies

http://www2.newsanons.ru/media/ni/4/d/84c4842ddf9256880c8ddb622a3189c9b32a6297.jpg

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*

Sberbank 1

Gazprombank 3

FK Otkrytie 5

Alfa-Bank 6

Rosselkhozbank 7

Bank of Moscow 8

Unicredit Bank 10

Rosbank 12

Khanty-Mansiysk bank Otkritie 14

Credit Bank of Moscow 15

Russia 16

Bank Saint-Petersburg 17

Binbank 19

Russian Standard 20

Nordea-Bank 21

MDM Bank 22

Uralsib 24

Petrokommerz 32

Sovcombank 34

Novikombank 35

National Settlement Depository 37

Vostochnyi Express bank 39

Vozrozhdeniye 40

OTP Bank 44

MTS Bank 45

Rank

CFT's TOP 50 CLIENT BANKS IN TERMS OF ASSET SIZE

Banks using CFT products for: core banking

operations in the payment markets

Rank

CFT PRODUCT LINE

CORE BANKING PRODUCTS

PLATFORMS

CFT–PLATFORM 1

CFT–PLATFORM 2 MCA

CFT PRODUCT CATALOGUE

Over 330 finished financial Products

Products for issuance and acquiring of IPS cards

Products for remote banking services

NEW CFT-Bank

Integrated front office, sales channels management, business analysis, customer communications management

Pay cards, credit, corporate, co-badged, co-branded, and other cards

Instant money transfers

without account opening

Electronic travel tickets, transportation & banking cards

Products for acceptance of payments in favour of service providers

Replenishment of accounts, repayment of loans of any Russian bank

PRODUCTS FOR BANK OPERATIONS IN PAYMENT MARKETS

PAYMENT SERVICES

PREPAID CARDS

Payment card for MFIs

Applications for the bank’s business process automation

PROCESSING SERVICES

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• Customer loyalty programs: • For banks and retailers • Based on prepaid cards

• Gift cards (gift certificates, prepaid gift cards)

CUSTOMER LOYALTY PROGRAMS


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PLATFORM 2 MCA

The new generation technology platform for development and

use of MISSION CRITICAL bank applications

THROUGH THE USE OF THREE-TIERED ARCHITECTURE, PLATFORM 2 MCA PROVIDES THE BANK WITH:

• Unlimited scalability

• High performance

RECORD-BREAKING GROWTH OF SOLUTION PERFORMANCE (UP TO 30%) BASED ON ORACLE EXADATA X2-8 AND ORACLE EXALOGIC X2-2 PLATFORMS

MULTITHREADED APPLICATIONS

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NEW PERSPECTIVES OF ABS PERFORMANCE

Criterion

Accounts

Cards

Deposits

Loans

Transaction day

System update

Scaling

Indicator

Up to 100 mln

20 mln

30 mln

30 mln

Close to 24x7

Close to 24x7

N-tuple increase of retail business volumes without complete update

of Hardware equipment

CFT-Bank (Platform 2 МСА) with multithread Applications as an alternative for a new retail system of large banks


NEW CFT-Bank

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FRONT-OFFICE FUNCTIONS OPTIMIZATION

SWIFT SALES MANAGEMENT

FAST MANAGEMENT ANALYTICS

New CFT-Bank Clients. Products. Analytics


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BRAND NEW ELEMENTS OF THE SYSTEM for the Bank to increase its profit and raise customer loyalty: 7 Products and Sales Management Center

Single-window to offer all bank’s financial products

300 indicators of the bank’s performance

Financial statements

Communication management

Target marketing

Gamification

1 2 3 4 5 6 7

NEW CFT-Bank


CFT Financial Product CATALOGUE

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Private persons Corporate customers

Financial institutions Bank transactions

THE CATALOGUE INCLUDES OVER 330 FINISHED PRODUCTS FOR THE MAIN AREAS OF THE BANK ACTIVITIES

CFT FINISHED PRODUCTS ALLOW THE BANK:

To reduce the time of launching classic financial

Products market

To focus on the STRATEGIC and

UNIQUE Products

To minimise the Product cost

To reduce the cost of system launch and

ownership

EVERY FINANCIAL PRODUCT SOLVES A SPECIFIC

BUSINESS TASK OF THE BANK


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WWW.CATALOG.CFT.RU — ELECTRONIC CATALOGUE

Over 1,400 applications Convenient explanations structure Ease of choice

Detailed Application Catalogue for fine tuning of Financial Products for the bank's business processes

CFT Financial Product CATALOGUE


CFT Bank Outsourcing

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CFT IS THE FIRST RUSSIAN SOFTWARE COMPANY DEMONSTRATING A SERIES OF SUCCESSFUL CASES ON TRANSFER OF BANKS’ IT INFRASTRUCTURE TO THE COMPLEX OUTSOURCING

• Expobank

• STARBANK • Investtorgbank • Adamon Bank

• CFB Bank • IFC Bank • IpoTech Bank • SKS Bank

• Miraf-Bank • Idea Bank • Korea Exchange Bank Rus

2,500 2,8 mln 1 mln users accounts customers

Availability of outsourced systems according to SLA: 99,8%

Implemented Projects:


For provision of processing services and CFT-Bank system outsourcing, CFT uses:

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• Two DPCs: • DPC 1—the main center, • DPC 2—the backup center

• In-house independent control and security services

CFT develops personal DPC infrastructure according to Tier 3 risk level of TIA-942 standard

In 2013 PWC performed an audit of CFT and confirmed high level of outsourcing processes

CORE BANKING PRODUCTS CFT Bank Outsourcing

CFT is a partner of ASTRA, a nonprofit partnership of assistance in development of strategic outsourcing

Faktura.ru, Remote Banking Provider

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Organisation of remote banking for corporate and individual customers of the bank based on technology outsourcing

The product is used by more than 300 banks and branches

> 1,2 million financial and information transactions DAILY

14 years on the market

STATISTICS:

The processing capabilities used for the Product operations are several times higher than those of similar in-house solutions of major federal banks

In 2013, the number of corporate Internet-banking users increased by 32%, that of private users—2.5 times (as compared to the results of 2012)

27%* of private customers use mobile applications and each 18th payment is made via that apps.


Processing facilities used for service functioning are much more powerful than equivalent in-house solutions of large federal banks

In 2014 number of partner banks’ corporate clients using Internet-bank increased by 22%, private customers – by 62% (as compared with 2013 results)

Number of payments made by individuals using mobile applications has tripled (as compared 2013 results)

Faktura.ru: range of online services

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For corporate clients

FOR PRIVATE CUSTOMERS

• Internet bank (electronic payments solution)

• Internet bank for1С:Enterprise (35

configurations are supported)

• Mobile Bank

• Mobile Application

• Internet bank (one-time password solution)

• Internet bank (Digital signature solution)

• Mobile Bank

• Mobile Application


Faktura.ru: Key Benefits

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The first RBS provider

FOR INDIVIDUALS FOR LEGAL ENTITIES

• Faktura.ru Internet Bank for 1C: Enterprise 8

• Budget implementation control

• Electronic document flow

• Account management in a "single window"

• Hardware safeguards

• Payroll projects

• Risk Control Systems


• Card security mode management

• Automatic payments

• Mobile applications for Android and iPhone

• Online deposit opening

• Web 2.0 interface

• Instant money transfers

• Online card topping-up

• SMS-based payment for templates

CardStandard Processing Centre

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NEW GENERATION PROCESSING

Processing services for information and technology support of issuing and servicing bank cards of Visa and MasterCard international payment systems

Being a certified service provider of VISA and MasterCard, the CardStandard Processing Centre enjoys the status of a VisaNet Processor and Member Service Provider

STATISTICS: CardStandard Processing Centre services the card business of over 100 banks

The total number of cards under servicing exceeds 23 million


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STRATEGIC PARTNERSHIP WITH THE PROCESSING CENTRE ALLOWS THE BANK TO:

Provide the card business with full technology support (back-office outsourcing, online interaction with the bank’s automated banking system, smart fraud prevention system)

Provide customers with call centre services and possibility of setting/changing a payment card PIN code by phone

Offer the customer a range of additional financial services (utilities payment, mobile communication, money transfers), card account remote control tools (Internet bank and mobile bank, cash-in ATMs), various loyalty programmes

CardStandard Processing Centre


Golden Crown Payment System

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PARTNER CREDIT

INSTITUTIONS

RESIDENTS NON-RESIDENTS

513 409 104

PAYMENT CENTRE NON-BANKING CREDIT ORGANISATION, PAYMENT SYSTEM

OPERATOR AND PROCESSING CENTRE

CJSC ZOLOTAYA KORONA, TRANSACTION AND PAYMENT CLEARING CENTRE

Pay cards, credit, corporate, co-badged, co-branded, and other cards

Instant money transfers without account opening

www.koronacard.ru www.perevod-korona.com

PRODUCTS FOR BANK OPERATIONS IN THE PAYMENT MARKETS

Bank Card

INFRASTRUCTURE READY FOR PROCESSING MAJORITY OF RUSSIAN DOMESTIC INTERBANK SETTLEMENTS

CARD ISSUANCE ATM NETWORK POS AND CD NETWORK

37 mln 62 ths 128 ths

Golden Crown cards – 8 mln. Co-brand cards: MasterCard – Golden Crown, Golden Crown– Union Pay– 11 mln. Other banks’ cards (H2H integration)– 18 mln.

Acquirers of the Golden Crown

Payment System – 12 ths. Participants of the Golden Crown Payment System (direct H2H

connection) - 50 ths.

Acquirers of the Golden Crown

Payment System– 6 ths. Additional ATMs of the systems (H2H connection): UCS (40 ths), Russian Standard Bank (60 ths), Gazprombank (15 ths), MInB

(7 ths) – 122 ths.

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WIDE RANGE FOR PARTICIPATING BANKS

• All card standards

• EMV (own EMV-compliant application, opportunity to issue cards at banks’ in-house processings)

• Magnetic Stripe • MPCOS

• Unique infrastructure

• Golden Crown • MasterCard – Golden Crown • Golden Crown – Union Pay

Bank Card

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90% of system software are Russian solutions

Bank Card

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• MasterCard – Golden Crown co-branded/co-badged card programs

• Issued since 2009 • Largest issuers – Credit Union “Payment Center”,

Sovkombank

UNIQUE EXPERIENCE OF COOPERATION WITH THE INTERNATIONAL PAYMENT SYSTEMS

• Golden Crown -Union Pay co-branded card program • Issued since 2012 • The only provider of co-branding solution with Union Pay

in Russia • Largest issuers – MTS-bank • Union Pay acquiring • POS and Cash acquiring since 2011


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Socially important payment system Since September 30, 2013

IN ACCORDANCE WITH THE FEDERAL LAW No.161-FZ Golden Crown has been registered with the CBR Payment Center, operator of the Payment System, has been entered into CBR Register

Money Transfers


Golden Crown – Money Transfer Service

MORE THAN 48 THS. OF SERVICE LOCATIONS IN THE TERRITORY OF RF, COUNTRIES OF NEAR AND FAR ABROAD

COOPERATION WITH THE LARGEST TRADE NETWORKS

MORE THAN 550 PARTICIPATING BANKS

… и другие

PRODUCTS FOR BANK’S OPERATION IN THE PAYMENT MARKETS

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http://www.google.ru/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.rgs.ru/pr/presskit/logo/index.wbp&ei=ji_PVOvAFsPmywOVroKQBQ&bvm=bv.85076809,d.bGQ&psig=AFQjCNHHyhS2aM0CrVgOT1PfvQlu4tuc-g&ust=1422950659052983

http://www.google.ru/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://forum.ykt.ru/viewmsg.jsp?id%3D28009330&ei=wC_PVNmeE4KGzAPXroHgDw&bvm=bv.85076809,d.bGQ&psig=AFQjCNH2nI3sWKM5mcAfNi4YQ3tu8NBUUQ&ust=1422950706362010

Source: CBR, Annual reports of companies, estimation of the Golden Crown – Money Transfer Service

LEADING SYSTEM IN RUSSIA AND CIS AND 3RD LARGEST SYSTEM IN THE WORLD

9%

10%

10%

57%

12

16

31

88

Remittance systems’ shares in RF and CIS in 2014. (%)

Turnover of the world’s largest money transfer systems 2014. ($ bln)

Money Transfers


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27

2012

420 570

607

2013 2014

6% Turnover growth

+119 New partners

31 MLN Performed transactions

• WORLD’S FASTEST GROWING REMITTANCE SYSTEM • LISTED ON THE CBR’S REGISTER OF SOCIALLY IMPORTANT

PAYMENT SYSTEMS

SYSTEM TURNOVER (RUB BLN)

19 Countries of the world

Source: data provided by the Golden Crown – Money Transfer service

Money Transfers


Transport Card

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• Use on any type of public

• (municipal and private) transportation

• Integration with navigation and dispatch systems

• Flexible billing of fares, calculation of discounts and bonuses

• Targeted provision of social security measures

• for passenger transportation services and fare calculation

• for concession categories of citizens

• Transformation of transportation cash flows into a cashless

• transaction, money supply to the banking sphere

• Unmanned fare payment scheme

• Integration with the existing payment acceptance networks

ELECTRONIC TRAVEL TICKET FOR CASHLESS FARE PAYMENT:

STATISTICS • The system is present in 35 cities and 12 regions of Russia

• Over 2.7 million transport and social cards have been issued

• Over 37 million transactions are made every month


Payment of fare in public transport from a mobile phone by means of NFC technology*

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MTS subscribers with the connected MobileTicket service may pay the fare in public transportation simply by bringing their mobile phone to the metro turnstile reader or conductor terminal

THE CARRIER'S FARE IS CHARGED OFF THE MOBILE PHONE ACCOUNT


*Near Field Communication is a short-range high-frequency wireless communication technology for data exchange between devices at a distance of about 10 cm

Loan Repayment

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A wide service network throughout Russia

Payments up to the amount of more than RUB 15,000

On-line fund credit technologies

Outsourcing of claims operations and call centre functions

Marketing support

The Golden Crown —Loan Repayment product allows the bank to promptly create a well-developed infrastructure of terminals for loan payment acceptance as well as account and deposit replenishment within a walking distance from the client throughout Russia

Loan payments in TWO TICKS!

› › › › ›

Commercial networks Internet banking systems Payments collection terminals INFRASTRUCTURE I I



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BENEFITS • Long-term customer relations • Greater quality of service usage • Modelling consumer behavior, promotion of most

profitable products • Raise income from current client base through cross

sales • Attraction of new client base and distribution channels • Optimization of budget for retention of existing

customers • Enhancement of positive image

STATISTICS More than 350 implemented projects include Sberbank, Sovkombank, Euroset, Svyaznoy, Detskiy Mir, ION, Beeline, 1C and other.

INTEGRATION WITH OTHER BANK SYSTEMS IS AVAILABLE (PROCESSING, RBS, etc.)

BONUS CARDS

ALL CARD LOYALTY PRODUCTS

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PAYMENT CARDS

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BENEFITS • Competitive advantage: financial services • Low costs for product implementation • Modelling consumer behavior, promotion of most profitable

products • Raise income from current client base through cross sales • Attraction of new client base and distribution channels • Optimization of budget for retention of existing customers • Enhancement of positive image

STATISTICS More than 12,000,000 participants of our customer loyalty programs


CARDS BASED ON TECHNOLOGIES OF INTERNATIONAL PAYMENT SYSTEMS WITH REWARD POINTS AND PAYMENT FUNCTIONS.

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STATISTICS More than 1,500,000 of prepaid gift cards were issued for Sberbank, Ozon.ru, Media Markt, MEGA shopping mall, AFIMOLL sales center, Sodexo and others.

OPPORTUNITIES • Individual design of cards with trade mark of a company or

MyGift ready-made solution MyGift • Flexible nominal value: from RUB 300 to RUB 15,000 • Instant cash enrollment to a card • Card reloading after delivery to a customer • Quick issue: cards are not personalized

WHERE IS THE PROFIT? Cards resale with additional fee Remuneration for card reloading and distribution

Visa or MasterCard-based card is a quick and technological way to attract customers, encourage staff or partners of a company.

GIFT CARDS


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PRODUCTS FOR MICROFINANCE INSTITUTIONS MFI automation complex services

MFI SERVICES

MFI

PAYMENT CARDS ISSUE AND SERVICING

MONEY TRANSFERS SENT BY LEGAL ENTITIES TO

INDIVIDUALS

MONEY TRANSFERS

THROUGH MFI RETAIL NETWORK

CUSTOMER LOYALTY PROGRAMS BASED ON

PREPAID CARDS

CASH COLLECTION AND PAYMENT FOR GOODS

AND SERVICES

MFI LOAN REPAYMENT THROUGH Golden Crown – Loan repayment SERVICE

INFRASTRUCTURE

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MFI CARDS ALLOW FOR instant entering of loans to a settlement card of the MasterCard international payment system

CARD USE ADVANTAGES FOR MFIs:

Reduction of cash flow share. Possibility of complete transfer to clearing settlements with natural persons. Thus, elimination of collection, teller networks, and guarding

Prompt issuance of a card at an MFI office

Unlimited crediting of repeated loans to the card. Possibility of crediting a new loan by means of SMS or via a contact centre

For the borrower, the service value is added through provision of additional services (mobile banking, Internet banking)

Technological connection without debugging: the whole functionality of card operation is implemented in a single window of a web work station

MFI payment cards

PRODUCTS FOR MICROFINANCE INSTITUTIONS

Gorod Federal System: Payment Processing

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INTERNET BANK I TERMINAL I CASH OFFICE I MOBILE BANK I ATM

UTILITY CHARGES I INTERNET I TELEPHONEI TV I LOANS

SYSTEM FOR CHARGING AND COLLECTING PUBLIC PAYMENTS:

The system operates

in 83 RF regions,

6 RF cities have

representative offices

20,000 service providers collect payments using the system‘s solution

47,000 locations

accept payments

900 banking and non-banking organizations


ANY DEVICES:

ANY PAYMENTS:

Professional payment collection management

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1

2

3

4

5

6

ADD NEW OPPORTUNITIES TO YOUR BUSINESS:

Fee income from transfer of funds received for services of regional and federal providers

Fast customer service

Transfer of funds via any RBS channels

Centralized receipt of data on online transfers

Uniform agreement signed at the federal level

Simple agreement procedure


www.cft.ru www.group.cft.ru

All services of the CFT Group are available to you in order to successfully solve your business tasks

Contacts and information on the company's products are available

at the following websites:

overview of operations cft group of...

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