18th March 2019

Pascal Foehn – COO of Avaloq

Overview of Avaloq

Who we are

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Avaloq is a global services company with a strong focus in banking and wealth management technology

global logos

70million revenue in 2017

CHF 565billion client assets on platform

USD 4,000employees

2000+

fintech apps on the Avaloq Software Exchange

90+

service centres

22

of our employeesare financial services experts

>50%

developers in ourco-innovation community

1,300+Offices worldwide

3

Confidential | 3

Overview of our 30 years in business

2012 2014

2015

Avaloq sets up service

centre in Germany

Set up of service centre

in Singapore

Launch of ARIZON

Raiffeisen becomes first external

shareholder

Transforming into a technology-

driven banking services company

Establishing the core

banking software

2003

2001

2011

BZ Informatik

becomes Avaloq

Avaloq expands across

Europe & Asia Avaloq enters the services

market (takes 51% stake in

B-Source) and launches

digital strategy

Avaloq enters

retail banking

2005

2010

19851991

1994

1996Foundation of

BZ Informatik

Partial management

buy-out

Development of banking system

AdvAntAge

Launch of Avaloq

Banking Suite

Laying the groundwork

Affirming leadership in the

market

2016

2017

Avaloq fully owns 3

service centres

Ramping up ARIZON, the

4th service centre dedicated

to retail banking

Warburg Pincus takes 35%

stake in Avaloq

Warburg Pincus buys

Raiffeisen stake and owns

increases participation in

Avaloq to 45%

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Opening of the

UK office

Bahamas

Panama

British Virgin Isles

United States

Switzerland

Luxembourg

United Kingdom

Germany

Monaco

Liechtenstein

France

Belgium

Spain

Jersey

Guernsey

Portugal

Netherlands

Andorra

Isle of Man

Austria

Australia

Singapore

Hong Kong

Thailand

ChinaMorocco

UAE

Saudi Arabia

North America

Europe

Middle-East

North Africa

APACListed countries show where we have

customer deployments – committed

deployments shown in italics

Avaloq offices

Service centres

Partner near and offshore centres

Today, we have clients or ongoing client projects in 28 countries

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We have robust, stable and growing client base

0

10

20

30

40

50

60

70

80

2013 2014 2015 2016 2017 2018

Cumulated go-lives for new clients since 2013

CHF 4,000 Billion

assets managed on

the Avaloq platform

97% client retention

since we have been

in business28 markets

70 clients with

133 sites in

production

39%

35%

18%

8%

133 sites in production

Europe excl. Switzerland

Switzerland

APAC

Other locations

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Avaloq differentiated proposition

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Why clients buy Avaloq

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Cost/complexity

reduction

Need to reduce cost due to market pressure, overcome internal

inefficiencies or reduce complexity (e.g. architectural simplification)

Need to support segment-specific compliance and regulatory reporting

and reduce the risk of not being compliant, e.g. superannuation in

Australia

Risk reduction/

compliance

Need to rapidly launch or integrate new business (e.g. startup,

acquisition of new organizations, expansion of existing business into

new markets, M&A

Launch or

integration of a

new business

Expand client base e.g. expanding from private banking into mass

affluent

Expansion into

new client

segments

Need to protect and extend existing client base with service excellence

and outperforming client expectations through e.g. new channels,

products

Enhanced

client servicing

Typical business challenges

«Avaloq can be trusted on their words – they mean what they say»

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3 monthstime required to merge

a new business

3 weeks Instead of 6 months to

launch new offshore

product

1 monthfor the bank to

start activities

4-6 monthsto expand into a new

geography

Carson Wen - founder and chairman at Bank of Asia (BVI) Limited (Hong Kong)

-20% in IT expenses

+7% in front-end staff

efficiency

+20pp improvement in STP

rates

-8pp reduction in cost-to-

income ratio

-20% savings in trade

execution

• Bank was looking to establish a global standardized operating blueprint across their wealth management entities in Europe and Asia

• Issues with cost, revenue growth and regulatory compliance

What was their challenge?

• Avaloq rolled out in 6 markets and used in a full SaaS model with outsourced back office services

• Reorganization of the wealth management business with the set up of two regional hubs for Europe and Asia, implementation of standardized processes and creation of centres of excellence

How did we help them?

• Business case showed a cost reduction and a RoI in < 3 years for the Swiss entity

• Enablement for future growth and possibility roll-out to other locations

• Proven expertise in private banking

• Agreement to co-create a service centre in APAC

Why did they choose Avaloq?

• Efficiency gains with higher straight-through-processing (STP) rates, with up to 20pp increase in STP

• Avaloq's expertise in running and operating banking software for more than 30 banks and continuous improvement methodology

• Access to Avaloq's local expertise in relation to market-specific requirements, regulations and banking products

What value did we deliver?

Deutsche Bank – establishing a global blueprint with Avaloq to manage over USD120 Billion client assets

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• Growing client base

• Need for a more flexible platform with higher product capability

• Were running a different system in Hong-Kong (acquired business)

• No real-time system

What was their challenge?

• Implementation of front to back Avaloq capabilities based on the Avaloq model bank for Asia

• Initially rolled out Avaloq in the two Asian locations to serve private banking clients

• Integration of the upper end of the retail business (DBS Treasures) onto the Avaloq platform

How did we help them?

• Versus Odyssey, Avaloq had a better understanding of the wealth management business and showed a higher commitment to the Asian market

• Real-time information for activities like monitoring for collateral management meant lower risk

• 100% success rate

Why did they choose Avaloq?

• Costs down 10%

• Handling of more volume for same headcount thanks to more efficient processes

• 27% more revenue per client from wider range of supported products

• Improved time to market for new offshore products reduced from 6 months to 3 weeks

What value did we deliver?

DBS – one single platform for high net worth and mass affluent

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• Having built a global business based on acquisitions in key markets, HSBC were looking for an opportunity to simplify their private banking landscape and realize the synergies and efficiencies of a single global private banking platform

• Make a step change in private banking platform technology while providing reliable options for market and regulatory driven change

What was their challenge?

• Immediately providing the operating leverage achievable with a global platform, HSBC is using Geneva as its regional European processing hub for Luxembourg, Channel Islands, Switzerland and from 02/19, the UK

• Where possible, certain processes have been offshored to a processing hub in Manila

• Client data sensitive processes protected by Avaloq’s proprietary SDS (Sensitive Data Segregation) layer

• A second regional hub for APAC, in Hong Kong will go live in Q3 2019

How did we help them?

• Standardized processes globally

• Ability to create cross business operations utilities for shared processes

• Accelerated time-to-market for new products

• Flexible open architecture, system configurability with sizeable Avaloq certified workforce in key European and Asian markets

• Coordinated market driven approach to accommodate regulatory change

Why did they choose Avaloq?

• Uniquely capable private banking and wealth management platform allowing rapid deployment across markets with minimal change

• Continuous cost reduction model through process harmonization and standardization as the platform is deployed globally

• Flexible technology deployment options for multi channel and product delivery, by market

What value did we deliver?

HSBC Private Bank – global private banking leader with USD 300 billion AuMbuilds its platform for the 21st century

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We are able to best serve our clients because we develop our own software, implement it and operate it

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CHF 700 Billion assets managed in our service centres

Optimizing thesoftware forhigher STP

Standardizedmethod

General operating model

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Mostcomprehensivesoftware

• Full front to back digital core banking

• Built on one single data model

Industrialized operations with SaaS and BPaaS

• Automated platform

• Best-in-class banking services

Leadingecosystem

• 90+ proven fintech solutions

• 150+ API endpoints

Together, our comprehensive offering of leading software, operations and open ecosystem enable highest levels of efficiency and profitable growth

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We offer our software on premises or in a SaaS model with optional back office services

Software as a Service

SaaS

Standard

apps

Optional appsAPIs

Your apps

Back office servicesFront office

support services

Back office

operations

Street side

services

Consulting and implementation services

Software installation

On premises

Standard

apps

Optional appsAPIs

Your apps

BPaaS

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Avaloq Banking Suite

Avaloq Banking Suite provides full front to back functionality

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Design-centric solutions for 39 personas

Retail

Client

Relationship

Manager

Wealth

Client

Investment

Specialist

Digital Wealth

Client

Classic Wealth

Client

Digital RM Classic RM

Family Office

Investment Advisor

Front Office

Support

Legal, Risk, and

Compliance

Back Office

Group

Retail

Branch

Financial

Advisor

Lending

Specialist

Portfolio Manager CIO Analyst

Client Advisor

Assistant

Trading & Trade

Support

Treasury Manager

Prospect Family Retiree Student

Client Advisor

Commercial Lending

Officer

Contact Centre Welcome / Teller Branch Manager

Private Lending

Officer

CIO AnalystPortfolio Manager

SME: CEO SME: Accountant

SME Client Advisor

PRIVATE BANKING RETAIL BANKING

Product

Management

BACK OFFICE

Accounting & Finance

Lending

Officer

Risk Manager

Reference Data

Specialist

Corporate Actions

AnalystReconciliations OfficerSettlements Analyst Tax Specialist Payments Specialist

Legal and Comp. Spec.

Back Office Support

Group Accounting

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Avaloq DIGITAL Technology – for professionals and clients

Digital Channels for Customers

e-Workplace for client-facing employees

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Front Workplace Workbook

«What do I needto do?»

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Front Workplace RM Workplace

«What’s going on with my clients?»

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Front Workplace CRM Desk

«Who is thisclient?»

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Client Onboarding & Client Lifecycle Management

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Selection of financial instruments processed by the Avaloq Banking Suite

Money Market & FX

•Deposits

•Fiduciaries

•Forward Rate Agreements (FRA)

•FX Spot

•FX Forward

•FX Swap

•Non-Deliverable Forward (NDF)

•Repo

Securities

•ABS / CDO

•ADR / GDR

•Bonds

•Collateral Management

•Double Currency Investments (DCI)

•Funds

•Hybrids

•Notes (Loan)

•Physical Securities

•Private Equity

•Shares

•Securities Lending & Borrowing

•Structured Products

•Warrants

OTC & Exchange Traded Derivatives

•Accumulators/Decumulators

•Asset Swaps

•Caps, Floors, Collars

•Cross-Currency Swaps (CCS)

•Credit Default Swaps (CDS)

•Futures

•Interest Swaps

•OTC Options

•Traded Options

•Swaptions

Lending & Credit

•Bank Guarantees

•Business Loans

•Lombard Loans

•Mortgages

•Overdraft Facilities

•Personal Loans

•Term Loans

•Syndicated Loans

Accounts & Payment

•Account Sweeping

•Bank Notes

•Cards

•Cheques

•Current Accounts

•Metal Accounts

•Saving Accounts

•Standing Orders

•Safe Boxes

Coins, Commodities &

Others

•Arts (painting), racing horses

•Bullions

•Coins

•Commodities (Seeds, Pork, Cattle, …)

•Inventories

•Insurance Policy

•Physical Metal (precious or industry)

•Real Estate

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Avaloq.one – a unique B2B2C platform for collaboration and innovation

Avaloq.one

Avaloq Software

Exchange

Sandboxes

Developer kit

Avaloq.one portal

Open APIs

HackathonsFinTech

selection /

onboarding

FinTech

scouting

Consulting and

implementation

specialists

Global

marketing

Commercial

model

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Thank you for your attention.