1. BT for Financial Services Connecting the financial services community to a better future

2. Whereas other companies bombarded us with a load of marketing jargon, BT Global Services brought real people and proven processes to the table. They were able to convince us with actual solid examples of their work, especially in mission-critical environments. Hermawan Thendean General Manager, Strategic Information Technology Group, PT. Bank Central Asia Tbk 2

3. Transforming your business Financial services providers are up against some of the most demanding and difficult challenges facing any business sector. In a global marketplace, you need to juggle local threats with international opportunities; you need to be able to react instantly to changing customer demands; you need to make sense of the mountains of data generated every second; you need to find new, more efficient ways of working; and you need to do all of this within one of the most regulated environments out there. The key to meeting these challenges is technology. That doesnt mean jumping on the latest consumer bandwagon. It means assessing your business needs and creating a platform that will support, enable and enhance the services you provide. Its about connecting for a better future. For financial services providers, thats all about connecting every link in your trade cycle, supporting effective internal and external collaboration, enabling a seamless customer experience across all channels and doing all of this securely. At BT Global Services, connections are our business. We bring people together. To work. To buy and sell. To connect. And these connections create value. For your people, your partners and your customers. We support the largest secure networked financial community in the world. One in three traders worldwide now uses a BT turret thats more than 68,000 traders in over 800 trading firms across over 60 countries and the networks of many leading retail financial institutions are outsourced to us. Of course, the world wont stand still and what we offer is constantly evolving to meet the demands of the market. Thats why were still at the forefront of innovation in the financial services sector and have been for more than 30 years. Tom Regent President Global Banking and Financial Markets BT Global Services 3

4. Meeting the challenges of an unbalanced global economy... The financial services world is constantly evolving. Regulatory changes, new technologies and mergers and acquisitions mean that the landscape of the industry is always shifting and reshaping. Right now, organisations are wrestling with a number of apparently conflicting forces: 1 Operational effectiveness and improved efficiency In the most developed and sophisticated consumer markets, getting the right balance between innovation and cost-cutting is crucial. With the increase in capital adequacy requirements to meet new regulations, many providers are looking to save money by driving operational efficiencies, such as streamlining infrastructures, as well as adopting flexible sourcing strategies. IT has historically been the area where savings are identified by the business but these savings cant impact the improvements in service that customers expect. Five of the worlds largest banks are publically targeting a total of over $10bn of sustainable cost savings 2 Risk, compliance and security Maybe the greatest challenge is that of operational risk and the need to comply with a raft of new regulations. The 2,000-page US Dodd Frank act, for example, is driving requirements for technologies such as voice recording while IDC research showed that 60% of banks state Op Risk as the most important tech area for IT investment. Then there are ongoing security questions: Are your systems secure? Do you have the right degree of resilience? Can you fend off the latest Dynamic Denial of Service (DDoS) attack? UK Payment Protection Insurance (PPI) refunds and fines have now surpassed 14bn Mobility By 2015, over 80% of handsets in mature markets will be smartphones (Forbes 2013) and mobile devices are set to overtake PCs as the most common web access tools. This is influencing everything from customer interaction to payments. Big Data BNY Mellon anticipates that Big Data will have a transformational impact on the 21st Century Global Financial System. This is a paradigm shift in data management performance, offering new insights and all-inclusive data processing. E-commerce Changing channels for client and customer always on interactions are influencing financial markets STP aspirations, pushing the unification of voice and data and the adoption of social technologies and media. ...and new technology trends 4

5. Security With enterprises, business platforms and interaction increasingly electronic, distributed and fragmented and threats becoming both more sophisticated and frequent dealing with cyber security is a more complex and critical imperative. Cloud Gartner predicts that the worldwide market for cloud computing has reached a tipping point. Virtualisation now extends to technology and business functions and software and service oriented cloud-based solutions are becoming familiar, industry compliant and accepted. 3 The rising power of individuals Customers have never had such a choice in the way that they can interact with financial services providers. But striking a balance between ever-increasing consumer expectations and the operational capabilities needed to meet them is tricky. New channels continue to emerge while others gain in prominence, making customer acquisition and retention strategies more complex. Its calculated that, in 2015 90% of worldwide customers will be using online banking. But despite branch numbers declining, 63% of customers still go to branches for complicated issues. Its clear, however, that customers expect a fast response and expertise at the point of interaction. And it has never been easier to switch provider! Just 50% of customers are confident that they will remain with their primary bank over the next six months 4 Instant globalisation The world is changing, right in front of our eyes. And that change is reshaping where, when and how we create value. Financial services providers face different challenges in different parts of the world: in Western Europe the name of the game is cost saving while competing for share of wallet; in fast-growing economies its about access to expanding financial markets. At the same time you need to ensure youre not neglecting home markets in the face of new competitors, potentially outside of the traditional landscape. More than 25% of transactions handled by PayPal involve cross-border purchases (source: modern spice routes July 2013) So how do you meet these challenges and keep on top of an ever-changing landscape? 5

6. Technology: creating an agile enterprise... For too long, technology has been a limiting factor rather than the business enabler that it should be. Weve entered an age where applications, systems, mobile or office-based devices and the networks on which they operate are converging. Interconnecting your organisation Most financial institutions rely on many different IT systems and networks operating in individual silos. Structures like this create divisions and impede your ability to share data and functionality and to benefit from the overall economies of scale that your organisation can generate. For example, data may have to be backed up at a local level, requiring costly investment in multiple business continuity plans at each geographical location. Users who increasingly work remotely may not be able to access the applications or data they need to do their job. However, in an agile organisation, IT processes, applications and hardware interconnect seamlessly, allowing your business operations to be more effective and secure no matter where they are located. A single, unified IP infrastructure will help your organisation become agile in order to run data, applications and devices seamlessly across many different geographical locations, from contact centres and trading turrets in the front office and wireless devices for personnel outside the office, through to PCs in the back office and branch. Connecting with the market But the need for agility doesnt stop there. Financial institutions need to have access to a broad range of information and services (such as financial market data, order management, execution, payment processing, clearing and settlement), and BT provides a cost-effective and time-sensitive alternative to building point-to-point private networks. Connecting to the BT Radianz Cloud community enables you and your trading partners and clients to send and receive order flow, payments, post-trade messages and information, helping you to benefit quickly from easier access to new pools of liquidity, to new geographies and customers and to new information sources. It also enables you to gain greater transactional efficiencies to support your STP requirements. As a platform for implementing industry standards, such as ISO 20022 and the FIX Protocol, BT Radianz Cloud provides you with the means to collaborate quickly and cost-efficiently with your trading counterparts and your clients. With one secure connection to the BT Radianz Cloud you can have rapid access to thousands of our customer locations around the world, including banks, brokers, investment managers, exchanges and MTFs, market data vendors, clearing houses, payment processors and securities depositories. Branching out to customers Analysts agree that retail banking will change dramatically over the next five to ten years with many predicting the closure of branches in the face of mobile banking. Traditional retail banks now face the challenge of changing their retail model and demonstrating the value of a physical branch where customers can meet informed advisors. Of course, the branch is just one part of what should be seen as a multichannel customer offering blending seamlessly with mobile, online, social media and contact centres. The key here is innovation. The right technology (such as in- branch wi-fi, networked experts and personalised video) can help retail branches become more customer-focused and agile while reducing operational costs and integrating the various channels to create a seamless experience for customers. Tackling the challenge of changing expectations 62% of retail banking customers go to their branch to solve a complicated issue 50% say they wait too long in the branch to see an advisor 33% say the staff either do not have the power or knowledge to resolve problems immediately 43% say negative feedback on social media would make them move bank or avoid a bank 69% agree that a good experience with branch or contact centre staff improves loyalty 34% want more knowledgeable staff and 36% want a friendly welcome when they walk into a branch (when comparing banks to retailers). Firms that have a complete view of their business and their IT organisation combined can get ahead by improving operational efficiency, customer service and competitiveness. 6

7. ...to make your people more productive, your customers happier and your organisation more efficient Once the right IT and networking infrastructure is in place, we can help focus on some of your key business challenges and address your technology questions: Transparency and compliance How confident are you that your business has a complete picture of the operational risks it faces? As regulators impose more stringent requirements, you now need to have greater transparency of markets and institutions and a complete enterprise-wide view of your risks. Business continuity and security Do your business continuity plans across your domestic and international operations truly prevent significant downtime in an emergency? If workers were denied access to one of your main operational centres what impact would it have on your business? At a time when security threats have never been greater, you need to be able to comply with regulatory requirements and react quickly to problems. Trading effectiveness Are your trading floors around the world seamlessly linked to share critical multimedia information at the right place and time? You need to have low-latency access to all execution venues and be able to access calls and market information on the move from any device. Customer loyalty and acquisition Are you serving and managing your institutional, corporate and retail clients to a consistent level across all channels? Can you rapidly deploy your operations as your business expands? Generating sufficient sales to justify the cost base of your branch estate means making things easier for customers. So you need to seamlessly integrate things like video into your channel mix and ensure you can reach new clients fast. Operational efficiency and excellence Are you maximising cost-efficiency across your IT organisation? Make sure youre not investing in approaches that duplicate your development work and costs across your business. Your firms capital should be being used to bring in leading-edge solutions that create business advantage rather than support old-technology systems. The hubs beginning in London and Chicago plus the connectivity alliances we are building with other exchanges and partners will deliver unparalleled access into Asia for international investors. We are delighted that BT will play an integral part in our connectivity initiative. Muthukrishnan Ramaswami President, Singapore Exchange 7

8. BT for Financial Services Ovum sees BT Radianz as the market leader in financial extranets and, despite the entry of newer players such as Verizon, Orange, and IPC in recent years, it continues to maintain its position. Rik Turner, Senior Analyst, Ovum, May 2012 HQ Trading Branches floor Financial services enterprise Financial markets Banking & insurance Call centres Back office Clearing houses Card processors Brokers Application & service providers Exchanges Regulator Asset managers Retail clients Hedge funds Central banks Corporate clients Application & service providers Insurers 68,000+ trader turrets Sub-millisecond low-latency trading Many thousands of BT Radianz Cloud community members 400+ providers of application services in the BT Radianz Cloud community 198 countries and territories 20 million+ card payments daily 350bn of securities transactions settled every day 65,000 contact centre agents 8

9. A proven service model Everything we do is geared towards achieving the right results for our clients, in terms of reducing cost, mitigating risk and being more agile. We have a team of talented people and a wide range of products to help us do this, but its our service model that really makes the difference. Our standard ITIL v3 based service model for clients in the banking sector is continually evolving and has been deployed on our largest contracts over a period of years. We understand that one size does not fit all and that requirements differ. For example, online banking platforms and trade floors will require the very highest level of service availability. The model is therefore configured to meet specific customer requirements in a controlled manner so they benefit from our investment, governance and knowledge sharing across multiple contracts. Continuous improvement and innovation Todays great is tomorrows OK. Thats why were committed to improving service levels and reducing costs over the life of a contract. For example, on one of our major retail banking outsourcing contracts we reduced business working hours lost due to network incidents by 65% over a period of three years. On another global investment banking outsourcing contract we reduced the number of high severity incidents by 70% over four years measured from the point of transition to BT. Our senior architecture and engineering experts follow service strategy, demand management and innovation processes to drive forward the capability, capacity and performance of the network aligned to your business needs. BT delivers service quality and commercial competitiveness through transformation 24/7 single global service model with one point of contact 5.2% reduction in customer faults through right first time initiative 6,000 service people, with 1,400 ITIL accredited 99.998% guaranteed network availability 9

10. The BT portfolio: designed to meet the challenges you face Our portfolio includes smart networks, contact management solutions, unified communications, robust security products, powerful data centres and cloud services, all supported by consulting expertise. And we bring all of this together, creating and managing the communications ecosystems that unite people, partners and customers. We make sure you have the right connections. Wherever you are... From basic voice connectivity and cloud voice solutions to unified communications and complex global data networks, we can help. Our networked IT services are founded on the largest private IP network in the world and our BT IP Connect Global service is available in over 198 countries across five continents. Enabling you to cut IT complexity, reduce costs and take advantage of new technology IT and communication networks often evolve independently. All too frequently they grow through piecemeal application deployments, mergers and acquisitions and planned upgrades. For many organisations, this is a recipe for complexity and inefficiency. BT Compute offers you a range of data centre and expert services that will help your organisation succeed in a changing world. We focus on service based solutions rather than simply providing technology thats looking for a problem to solve and our hybrid cloud services blend intelligent network and compute resources giving you the IT infrastructure you need to adapt, quickly and cost effectively. For example, BT Cloud Compute provides virtualised components that can be accessed over a pre-provisioned infrastructure. Virtual server, storage, security and networking capabilities are all available, automated and orchestrated through an online portal and supported by a single service desk. Providing a platform for genuine collaboration empowering people to work more effectively To grow your business, please customers and satisfy shareholders, your employees need to find information quicker and reach decision-makers faster by understanding where they are at any given time and how best to contact them. BT One can unify voice, video and messaging to help boost productivity gains and help dispersed team members collaborate more effectively as a group, using shared resources that include information and core business tools. And provide the service that customers armed with new technology now demand Contact centres remain a key element of the multi-channel service mix. No longer constrained to standalone locations, they are now staffed by agents that can now be in multiple locations with the contact centre virtualised. BT Contact brings a number of benefits: new agents can be drafted in at a moments notice to manage call flows into various venues, for example into the branch, and bank tellers can answer calls during quiet periods. And as customers increasingly select self-service options for simple tasks like balance enquiries, we have a range of self-service solutions like BT Auto Contact. 10

11. All in a secure, reliable and compliant environment In a world of complex systems and networks, security management has to be straightforward if it is to be cost- effective. It is this principle that underpins our approach to delivering security solutions to our customers. Weve developed a set of focused BT Assure propositions to help you address security in the critical areas of your business: secure networking, secure messaging, business continuity, risk and compliance management and identity and fraud management. An example of our wide-ranging capability is BT Assure Threat Monitoring which monitors 550 networks in 38 countries and sees data from over 150 countries. With specialist solutions to support the needs of the global finance community BT Radianz services: Through our award-winning BT Radianz Cloud we connect financial institutions together as one global community the largest secure networked financial community in the world providing a neutral platform that delivers access to hundreds of pre-trade, trade, post-trade and banking applications from leading service and content providers across your straight-through processing (STP) chain. The BT Radianz Cloud interlinks thousands of financial customer locations around the world, bringing together banks, brokers, investment managers, exchanges, ECNs and MTFs, clearing houses, securities depositories, payment processors, corporate treasurers and market data vendors each linked into the community through one single, secure and fully-managed connection. BT Radianz services include low-latency and ultra-low- latency managed network solutions as well as Radianz Messaging for secure, reliable, tamper-proof and non- repudiable message exchange. BT Unified Trading: More than 68,000 traders in over 1,400 trading rooms across 60 countries rely on BTs sophisticated voice applications and integration technologies. Our services range from a market-leading multimedia trading device BT Netrix to applications such as the BT Unified Trading collaboration server which can link trading floors across the world as one virtual trading organisation. Put simply, BT gives financial organisations the tools to communicate effectively under even the busiest market conditions. And a team of experts on hand to help create the most appropriate solution for your business Consult, design, build and run its what BT Advise is all about. Our professional services teams have proven themselves over many years, guiding major customers through extremely complex and delicate technology solutions worth billions of pounds. BT Advise brings together all these assets and skills into one team, uniting them around market-leading knowledge management tools and certified processes you already trust. Using our strong partnerships we create and manage comprehensive solutions, including applications, equipment and the very best offerings from other third-party suppliers to meet your needs. BT Radianz Cloud can reduce your organisations total cost of communications by 50% year on year. 11

12. Based on BT Connect our innovative portfolio of networking solutions were managing connectivity for Visa Europes card authorisation, clearing and settlement services. The enhanced network links more than 350 member sites in 37 different countries across Europe and provides remote working, mobile, messaging and video conferencing tools, to help staff collaborate more effectively. BTs network is a cornerstone of the payment giants debit and credit card platform, which handled more than 14.3 billion transactions totalling 1 trillion in the year up until June 2012. Helping Visa Europe process 2 million of payments every minute Delivering improved business outcomes and improving ROI for clients through excellence in innovation and service The real value we bring is that we take a much more active role in helping clients innovate for growth. Its never a question of installing a bit of kit and leaving you to it. Well work with you to understand your business needs, analyse your current set-up and map out a plan for the future that will ensure you get the most out of the existing technology investments youve made. Well blend new and legacy technology and ensure you get a fully integrated solution. Snapshot the technology supports services across 37 European markets in Europe there are over 470 million Visa debit, credit, pre-paid and commercial cards more than one in every three pounds of UK consumer spending and more than one in every seven Euros of European consumer spending is with a Visa card in the area almost 80% of that is on Visa debit cards. On top of the BT Connect network, well be providing Visa Europe with a range of corporate, consumer and Visa member services, including: IP telephony and unified communications tools a range of audio, video and web conferencing to help cut costs, improve communications and boost productivity managed mobile support and remote access to Visa Europes corporate network (via broadband and 3G) enabling flexible working for employees innovation scouting services whereby Visa Europe will benefit from BTs research investments into the future of payments. managed messaging services for customers of Visa Europe, providing alerts and notifications of transactions. 12

13. Transforming Standard Life into a leaner, more responsive business with substantially lower costs With a creaking voice and data network based on disparate legacy technology some of which was approaching obsolescence and no longer fully supported Standard Life opted for an outsourcing agreement with BT Global Services. The agreement means we provide the fast and reliable infrastructure needed for a group-wide business transformation, while freeing the internal IT team to concentrate on customer service rather than dealing with mundane network matters. A total of 17 different network services were transitioned to BT in just seven months. Now a new infrastructure based on BT IP Connect global offers Standard Life a flexible wide area network (WAN) with virtually unlimited scope for future upgrades and developments. That single worldwide WAN carries both data and voice traffic to over 9,000 users, including 2,500 contact centre agents. The partnership makes Standard Life a leaner and more agile organisation, able to respond quickly and effectively to new market opportunities and competitive threats. Our solution has also reduced voice and data costs by over 25% compared with the previous network supplier. But the project is about far more than just cost savings and network performance. With BT as its global network services partner, Standard Life can focus on its core business, confident that its IT infrastructure is in safe hands and able to support current and future plans, whatever they might be. Already, the group has taken advantage of the new technology to improve customer satisfaction one of its key business priorities with innovations such as smartphone apps and social networking. In addition, Standard Life has migrated much of its inbound telephony to session initiation protocol (SIP) for lower cost and a more unified communications platform. Over a five-year period our agreement with BT will save us nearly 15 million, but more importantly we have a new modern and scalable network that is making us more secure and agile and changing the way that we work. From that we are able to provide an even better service for our customers. Paul Chong, Group IT Director, Standard Life 13

14. BT: firmly focused on the financial services sector BT Global Services is a world leader in managed networked IT, providing services to thousands of corporate and public sector customers with operations across the globe. We have 2,000 business, technology, service and support professionals around the world dedicated purely to financial services clients. And with different teams dedicated to serving specific sub-sectors, including retail banking, wholesale banking, financial markets and payments, we can offer even greater industry focus and specialisation. Combined with a global team of over 20,000, were confident that we can help you adapt your IT infrastructure so that you can focus more on the needs of your business. Over the last 30 years weve built a reputation for creating solutions that help financial firms to increase revenues, reduce costs and improve the service they offer customers. Thats because the products and services we provide are tailored specifically to the unique requirements of our customers. We have an existing user community of thousands of financial institutions around the world that already use our award-winning network services as well as our specialised services for the financial sector. These sector-specific services include low-latency access to financial markets; secure messaging for clearing, settlement and payments; a voice-trading systems portfolio used by tens of thousands of dealers internationally; and a broad range of network-based services that are designed to increase the efficiency of operations from the head office and the trading room down to the retail branch and cash machines. BTs expertise in the financial services market is helping us to create a next generation data centre for cash, derivatives and clearing which will increase liquidity and trading in Hong Kongs markets and generate new revenue streams for the exchange. This gives us access to a new and more diverse customer base with the likely addition of buy-side firms, banks and brokers, market data vendors and providers of post-trade services. Ryan Wuebbels Head of Relationship Management, HKEx 14

15. Why BT? Whatever our customers need, wherever they need it, theres a good chance were already there, with a unique breadth of scope, reach and capability: over 90 of the worlds top 100 banks are a customer of BT we maintain the worlds largest secure networked financial community our network covers 198 countries and territories 20 million+ card payments are processed by our systems daily 350bn of securities transactions are settled via our systems every day 68,000 users depend on our trading-floor turrets we have contact centre solutions supporting over 65,000 agents. We also underpin a community cloud environment delivering BT Radianz services to enable thousands of member locations in over 60 countries to access services from over 400 application and content providers. BT makes the connections that make people more productive, customers happier and organisations more efficient. Ultimately, we connect the world for a better future. The wi-fi project has been a huge success. We set a really tough challenge and BT Wi-fi, as our partner, stepped up and delivered against it. Peter Josse, Co-head of Infrastructure, Barclays 15

16. Offices worldwide The telecommunications services described in this publication are subject to availability and may be modified from time to time. Services and equipment are provided subject to British Telecommunications plcs respective standard conditions of contract. Nothing in this publication forms any part of any contract. British Telecommunications plc 2014 Registered office: 81 Newgate Street, London EC1A 7AJ Registered in England No: 1800000 Designed by Westhill.co.uk Printed in England PHME 69724 To find out more about how BT for Financial Services can transform your business visit www.bt.com/financialservices