Webinar hosted by Bank Systems and Technology. Speakers include AITE Group, Progress Software and Virtusa

1. Wealth Management On-boarding:
How to be More Responsive
in the First 90 Days
A Bank Systems & Technology Webcast
Sponsored by

2. Webcast Logistics

3. Featured Speakers
Doug Dannemiller
Senior Analyst
Aite Group
Luis Sierra
Industry Vice President, Banking
Progress Software
Vinaykumar S Mummigatti
VP and Global Head of BPM Practice
Virtusa

4. Ranks of the Wealthy Are Growing
• The number of millionaires
in the world grew 17% in
2009, to 10 million
• The number of ultra-high-
net-worth people (with
more than $30 million to
invest) also grew, by 22% in
2009
• In North America, there
were around 36,300 ultra-
high-net-worth people at
the end of 2009, up from
30,600 in 2008, yet down
YOUR from 41,200 in 2007
PHOTO HERE

5. What Wealthy People Want
30% of wealthy investors don’t have
a financial adviser:
•49% percent say the fees charged by Talk to me,
financial advisers are too high Harry Winston!
•40% percent say they can get better
results on their own; 37% percent say
they don’t think financial advisers
have their clients’ best interests at
heart

6. Wealthy Investors Want Convenient
Technology
Among under-50 wealthy investors:
• 59% said they’d like to interact with
their financial adviser using screen
sharing
• 54% would like to use webcam
conferencing
• 53% would like mobile texting
• 55% would like to use a tablet PC
• 56% would like to use HD video from
their home or office
• 52% would like video messages from
their adviser

7. Actionable, strategic advice on IT, business, and regulatory issues in the financial services industry
Evolution of New Customer Processes in
Wealth Management
Webinar
January, 2011
© 2010 Aite Group, LLC www.aitegroup.com Page 7
Doug Dannemiller

8. Wealth Management
There is a competitive battle under way
for assets and advisers.
Assets are moving at double their
historical pace.
Firms with efficient processes, backed by
technology are winning the battle.
© 2010 Aite Group, LLC www.aitegroup.com Page 8

9. Wealth Management Market Sizing
Client Assets and Number of Financial Advisors Across Wealth
Management Industry Segments • Wirehouse firms
(Total Client Assets = US$12.4 Trillion, as of End of 2009)
lead the US wealth
$4,745 management space
Wirehouse
55,186 managing 38% of
Fully Disclosed $2,271 assets with 12% of
Retail Brokerage 290,700 advisors.
Self-Clearing $1,822 • Independent RIAs
Retail Brokerage
(Outside Wirehouses) 51,240 have very similar
Independent Registered $1,535 characteristics to
Investment Advisors 53,600 wirehouse brokers.
$2,140
Online Brokerage
Self-Directed and Supported by Call Centers
Number of Financial Advisors Client Assets (US$ Billions)
Source: “New Realities in Wealth Management: Has the Dust Settled?”, Aite Group, April 2010
© 2010 Aite Group, LLC www.aitegroup.com 9

10. New Realities in Wealth Management
Eo2009
Client Assets Across Wealth Management Industry Segments
(Total Client Assets = US$12.4 Trillion, as of End of 2009)
Change Since
End of 2008
• Wire house firms are still well
Wirehouse 38% (0.9%)
behind old asset levels (minus
US$900B)
Fully Disclosed
19% (1.8%)
Retail Brokerage • 3% of the overall market has
Self-Clearing shifted to other segments, with
Retail Brokerage 15% 0.5% RIAs being a major winner
(Outside Wirehouses)
Independent Registered • The online brokerage space is
12% 1.5% gaining market share over
Investment Advisors
traditional brokerage firms in
Online Brokerage 17%
response to investors’ needs
0.8%
for more control and
transparency over their
investment portfolios
Source: “New Realities in Wealth Management: Ready for the Sea Change?”, Aite Group, April 2010
© 2010 Aite Group, LLC www.aitegroup.com 10

11. Breakaway Broker Trend
Update 2010
• While the break-away
Q. What is the percentage chance for you to leave your current broker trend seems to
employer within the next 18 to 24 months?
have slowed down at
36% the end of 2009, the
Zero (Will not change employer)
15% average wirehouse
1% - 24% 28% broker still estimates a
39% 29% chance for
25% - 49% 20% breaking away within
25%
the next two years.
10%
50% - 74%
13% • This phenomenon is
4% All Other Captive not isolated to
75% - 99%
4% Brokers (n=92) wirehouses, other
100% (Will certainly change employer 2%
Wirehouse Broker captive brokers also
(n=67)
in next 18-24 months) 3% give a 23% chance of
changing employer or
to go independent.
Source: Aite Group survey of 402 financial advisors, Q4 2009. Preliminary results – Publication scheduled for Q1 2010.
© 2010 Aite Group, LLC www.aitegroup.com 11

12. Importance of Technology For
Financial Advisors
Q. When deciding on working for a firm, how important is the
technology offered to you in your decision-making process?
(n=402) • 64% of advisors see
technology as a
major part when
Very important 22%
deciding on working
for a firm.
Important 42% • Only 14% put little
or no importance on
Neutral 22% the technology of a
firm.
Little importance 11%
Not important at all 3%
Source: Aite Group survey of 402 financial advisors, Q4 2009. Preliminary results – Publication scheduled for Q2 2010.
© 2010 Aite Group, LLC www.aitegroup.com 12

13. Technology Spending Priorities
• Financial Advisors would spend 13% of their technology budget on
better integrating the applications they have currently available.
• The top 5 items would receive over 50% of total technology budget.
Q: Please allocate your budget in percentage terms across the
applications/capabilities you would like to add or improve.
(n=402)
Financial Planning 15.8%
Increasing the Level of Integration 13.0%
Customer Relationship Management 9.0%
Broker Workstation 6.9%
Proposal Generation 6.8%
Portfolio Construction and Analytics 5.3%
Portfolio Rebalancing 4.4%
Portfolio Management System 4.1%
Compliance Systems 3.9%
Form Pre-filling 2.8%
Research System For Market Data and News 2.6%
Aggregated Performance and Client Reporting 2.3%
Account Setup/Maintenance - Brokerage Platform 2.3%
Document Management, Imaging, Workflow 2.1%
© 2010 Aite Group, LLC www.aitegroup.com 13

14. Account Opening - Key Process
New account processing is a critical and
transparent tool for demonstrating to advisers
and customers that a firm’s technology
infrastructure is up to date.
Consequently, it is an area under rapid
development at many firms.
© 2010 Aite Group, LLC www.aitegroup.com Page 14

15. Stage One – Efficiency in a Process Silo
Forms
Booklet
Account Investor Product Generation
Opportunity Profile Level With E-Signature
Identified Captured Advice Product
Feature
Selection
• The potential scope of an account
opening process is broad
• There is usually a balance between
Integration of
solving the process comprehensively Compliance
Review of
Transmission
Transaction
Transaction
and getting approval and completing the
to Product Details Into
Proposed Settlement
Underwriter Books and
Investment
project Records
• Selecting the right scope and staging
process is critical for success
Source: Aite Group analysis
© 2010 Aite Group, LLC www.aitegroup.com

16. Stage 2 – Realizing Opportunities and
Mitigating Risks in the Silo
Attrition & Cross-Selling Rates among New
Clients – Retail Bank
Source: 2008 Harland Clarke client case study.
Page 16
© 2010 Aite Group, LLC www.aitegroup.com

17. Stage 2 - Execution: Many Firms Have Rolled-
out Detailed Processes
Stage 2 is business unit centric – cross-selling is narrowly defined as another
product offered by the initiating business unit
© 2010 Aite Group, LLC www.aitegroup.com Page 17

18. The Next Stage
Stage 3 is an environment where the Stage 2
processes are in place – from account opening
through customer on-boarding
And…
The information created or gathered in the
process is captured, stored, and utilized
throughout the organization
© 2010 Aite Group, LLC www.aitegroup.com Page 18

19. Enabling Stage 3
Stage 3 is about creating an optimal enterprise customer relationship.
Viewing customer interactions and data as events in a complex system
can enable stage 3.
In plain terms, this approach means systematically saving data that may
be temporal in nature, and not necessarily viewed as “of further value” to
personnel operating in a process silo.
In order to fully enable Stage 3, patterns as well as data elements need
to be recognized for example:
– Multiple addresses for a single client (pattern)
– Large cash flow – passed AML screening (data)
– Very strong credit score (data)
– Direct deposit level has changed significantly (pattern)
– Source of direct deposit change (pattern)
– Beneficiaries reach age thresholds (18, 21)
© 2010 Aite Group, LLC www.aitegroup.com Page 19

20. Benefits of Stage 3
Operators within a silo focus on the result they are seeking – in this case
a successfully opened account.
• Landing beneficiary accounts
• Finding neighborhoods (other segments) to target market – based on
successful customer relationships
• Enterprise cross-selling
• Enterprise risk mitigation
• Resource allocation at process, business unit, and enterprise level through
tracking of KPI at individual, unit, and region levels.
Stage 3 allows for enterprise opportunities to be realized - across
business unit, and even cross-customer.
© 2010 Aite Group, LLC www.aitegroup.com Page 20

21. Poll Question
 Of what stage of automation are your onboarding
processes?
• Stage 1 – Some processes automated
• Stage 2 – Most onboarding processes are automated
• Stage 3 - Intelligent onboarding operations
21 © 2011 Progress Software Corporation. All rights reserved.

22. Wealth Management
On-boarding Transformation
Luis Sierra
Industry Vice President
Progress Software
Vinaykumar Mummigatti
VP and Global Head of BPM Practice
Virtusa
January 26, 2011

23. About Virtusa and Progress Software
• Established in 1996  Founded in 1981
• Headquartered in Westborough, MA  Publicly traded on NASDAQ since
• Locations in US, Asia, Europe and 1991
Middle East  Worldwide revenue: over
• Technology Centers in U.S., U.K., $500 million
India & Sri Lanka, Budapest  Customers in over 140 countries
• 80+ active clients  More than 2,500 partners
• Over 5,000 world-class professionals  Used in over 140,000 organizations
• Listed on NASDAQ (VRTU)
• FY 2010 Revenue Guideline: $225
million
• 32% 5-year compound annual growth
rate
23 © 2011 Progress Software Corporation. All rights reserved.

24. Core Phases of the On-boarding Process
Direct: Broker /
Mail Branch / Advisor Mobile Call Center Online
Application / Capture Identify Account Setup Account Fulfillment
Initiation Customer Data Verification & Approval Funding
Client application Account-related Information The account goes Customer can The account is
process begins data is captured captured on the through the now fund the operational
through interview application is organizational account to
and regulatory verified workflow for setup begin the
forms and approval, transactions
having multiple
institutional and
regulatory rules
applied
24 © 2011 Progress Software Corporation. All rights reserved.

25. Business Challenges for Wealth Management
Client On-boarding
On-boarding
 The process of taking a customer from “application” to “active,”
i.e., providing a customer (retail or corporate) with access to the
product and services of a firm
 Requirements vary greatly by type of financial services product
within a firm
 Complex decision-making around the application process, or
 Complexity around gaining access to the firm’s systems
 For Financial Services firms, products typically are offered either
direct to a client (i.e. web channel) or require an intermediary
(i.e. financial advisor)
25 © 2011 Progress Software Corporation. All rights reserved.

26. Business Challenges for Wealth Management
Client On-boarding (cont.)
On-boarding
 For more complex retail products and for majority of corporate
products, there are multi step processes and approvals
frequently before you can finalize onboarding:
 These typically can be very manually intensive and paper based
and lack automation and workflow control
 Duplication of effort and systems across multiple product lines and
multiple channels due to lack of an enterprise-wide account
opening platform/workflow
 Errors and delays in the process have high negative customer
impact
 Time delays can also frustrate the Bank’s financial advisors as well
as lead to loss of fees for the bank
26 © 2011 Progress Software Corporation. All rights reserved.

27. Client On-boarding Key Performance Indicators
Wealth Management
KPI What Is Important
Account setup to funds Show historical trends like average for all accounts, by country or
available (# of days) region, by agent, by customer segmentation (net worth >$30M, net
worth > $1M)
On-boarding funnel analysis Highlights on-boarding steps and possible bottlenecks firm-wide, e.g.,
Account Initiation, Verification, Compliance, Funds Transfer /
Fulfillment with $$ of Assets and # of days in each stage. Correlate
fallout rates to identify root cause.
Which brokers are driving •Assets in each step of funnel pipeline
what business •Conversion percentage
•Analyze by region
Cross-sell / up-sell percentage The first 90 days are the most important. Measure number of
products signed up for by client, by region, by organization.
27 © 2011 Progress Software Corporation. All rights reserved.

28. Behind the Scenes On-boarding Processes and
Systems Frequently Lack Business Agility
Mail Broker/Branch/Advisor Call Center Web/Mobile
Commercial Treasury &
Deposit Credit Card Mortgage Brokerage
Banking Securities
Challenges Impacts Results in
Inefficient and disjointed processes Onerous application process
• Longer time to on-board
Siloed customer, account and •Contradictory information creates confusion clients
product information •Challenges to support multiple products
• Loss of Revenue
Need to support multiple channels Poor and inconsistent client experience
• High internal cost to support
Multiple systems, manual & paper- Inability to track progress and manage the process • Longer time-to-market to
based workflows
add new products
Increasing regulatory environment Requires flexibility in systems and processes
• Diminished competitiveness
Line of business systems have Entitlements are difficult to setup and support easily
embedded entitlements and consistently across applications
28 © 2011 Progress Software Corporation. All rights reserved.

29. Best-in-class On-boarding Solutions
Require a Blend of Technologies
Service-oriented
Business Process Business Rules Architecture
Management Engine (SOA), Enterprise
(BPM) (BRE) Services Bus
(ESB)
Web 2.0 and Rich Document
Internet Management and Event-driven
Applications Imaging Architectures
(RIAs) Technologies
29 © 2011 Progress Software Corporation. All rights reserved.

30. Delivering Operational Responsiveness
Further automate to capture
Have real-time visibility of all Correlate events: e.g.,
opportunities (cross-sell)
wealth management on- compliance, regional
and minimize threats (non-
boarding operations operations
compliance, attrition)
Continuous
Real-time Immediate Sense-
Business Process
Business Visibility and-Respond
Improvement
30 © 2011 Progress Software Corporation. All rights reserved.

31. Responsive Process Management Architecture
Solution Accelerators Solution Accelerators Solution Accelerators
Existing Enterprise
Systems
31 © 2011 Progress Software Corporation. All rights reserved.

32. Responsive Process Management Architecture
Market Algorithmic Smart Smart
Market
Surveillance Algorithmic
Trading Smart
Airlines Smart
Airlines
Client
Surveillance Algorithmic
Trading Market Claims
Airlines Responsive
Airlines
On-Boarding Trading Surveillance Automation Logistics
Transaction Visibility Business Business
Business Process
Event
Transaction Flow Rules Management
Processing
Discovery
Event Capture Analytics
Enterprise Service Bus
Semantic Data Integration
Existing Enterprise
32 © 2011 Progress Software Corporation. All rights reserved.

33. Progress and Virtusa
Client On-boarding Value Proposition
Actionable
Faster
Insight –
On-boarding –
Improved
Higher Close-Rate
Customer Service
and Faster Time-
and Cross-sell /
to-revenue
Up-sell
Automated
Processing – for Ensure
Improved Compliance –
Efficiency and for Reduced Risk
Profitability
33 © 2011 Progress Software Corporation. All rights reserved.

34. On-boarding Demo
34 © 2011 Progress Software Corporation. All rights reserved.

35. On-Boarding Demo
35 © 2011 Progress Software Corporation. All rights reserved.

36. On-Boarding Demo
36 © 2011 Progress Software Corporation. All rights reserved.

37. RPM Test Drive for Client On-boarding
RPM Test Drive for on-boarding
can accelerate time to market and Assets Offered
eliminate risks  RPM training material
 Intensive 3-week engagement built on  On-boarding business
Virtusa’s Understand-Evaluate- case templates & ROI
Demonstrate (UED) framework calculations tool
 Product evaluation
 BPM education and RPM concepts
framework
overview
 Customizable On-
 Align Stakeholders around business
boarding demo
goals and KPI’s
 Reference architecture
 Evaluation of on-boarding business
for On-boarding
challenges and business case
mapped to Progress
preparation
RPM software
 Solution architecture/product
architecture approach for on-boarding
 Solution prototype for on-boarding
37 © 2011 Progress Software Corporation. All rights reserved.

38. RPM Test Drive for Client On-boarding (cont.)
 Target audience for RPM Test Drive
 Clients who have identified Customer on-
boarding as one of the key transformation areas
 Business and IT stakeholders have a different
view of process and transformation goals
 Largely manual processes today with little
transparency and control
 Evaluating Technology options
 Defining overall Program roadmap for on-
boarding
38 © 2011 Progress Software Corporation. All rights reserved.

39. Question and Answers
Please Submit Your Questions
For more information, go to
http://www.progress.com/bankinginfo
or contact us at
progressinfo@progress.com
or 781.280.4700
Luis Sierra
lsierra@progress.com
Vinaykumar Mummigatti
vmummigatti@virtusa.com
39 © 2011 Progress Software Corporation. All rights reserved.