Conference notes for the presentation made @ BankIT, 26th November, 2008.

1. How I.T. Can Make A Difference In The “New Hard Times”
BankIT Conference (Dubai), 26th November, 2008
Kalpesh Desai
CEO, Agile Financial Technologies
kalpesh.desai@agile-ft.com | www.agile-ft.com

2. Agenda
R.I.P. Good Times
Impact of the “new hard times”
Shift in I.T.‟s strategic context
Metamorphosis of an I.T. Company – Everything As A
Service
About Agile Financial Technologies
Confidential Page  2

3. Agenda
R.I.P. Good Times
Impact of the “new hard times”
Shift in I.T.‟s strategic context
Metamorphosis of an I.T. Company – Everything As A
Service
About Agile Financial Technologies
Confidential Page  3

4. The New Hard Times
Financial
Markets
Institutions
Inter-bank Lending
Mortgage Backed Securitization F.I.s restrict Rates Increase
Securities/ lending Credit Markets
Collaterized Debt Fall
Credit Derivatives/ Investors exit
Obligations
Credit Default Swaps Stock Markets Capital Markets
Fall/M2M Losses
Sold Downstream To
Institutional Investors Corporates Face
Liquidity Crunch R.I.P.
Good Times
Financial
Sub-Prime
Institutions
Loans
Faulty Lending Collapse
Lenders Stricter regulation/
Practices Tighter Credit
Collapse Liquidity
Increase in Infusion
Low Interest defaults/ NPAs
Decline in Bailout Plans/
Rates Property Prices Federal Conservatorship
Banks Economy Governments
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5. The domino effect
Huge foreign surplus
funds US private and
government deficits. Much
of it ($1+ trillion)
channeled into subprime
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6. The crisis comes closer to shore
Mark to
Exposure to
market
structured
losses and
investments Investor fears of
have their confidence
Capital downturn Local
toll on falls to an all
leaves the create a risk institutions
investors time low
emerging averse feel the
who had
markets / banking liquidity
leveraged Real estate
Stock system crunch panic,
markets fall
consumer
panic and
slow-down
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7. Those who fail to learn from past failures are bound
to replicate it
Confidential Page  7

8. The New Hard Times
 Recession is here and it’s a “U” Shaped recovery
 Cash is KING!!
- Liabilities typically have shorter maturity period than assets
- Liquidity management paramount
- Belts are going to get tightened
 Customers demand greater transparency
- Less forgiving; Fragile loyalty
- Information availability and transparency
 Enhanced regulation and governance
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9. The System Under Pressure
Increased Regulation & Oversight
Clients
• Demand new
products & services
• Client Acquisition & “In”Side
Retention • Deteriorating
• Risk-averse/ Asset Quality
unforgiving • Liquidity Crunch
• Dated, disparate,
inflexible systems
• Infrastructure
Environment • Margin & Cost
• Liquidity crunch pressures
• Regulatory &
compliance
uncertainties
• Slowing economy
• Industry consolidation
& convergence
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10. Agenda
R.I.P. Good Times
Impact of the “new hard times”
Shift in I.T.‟s strategic context
Metamorphosis of an I.T. Company – Everything As A
Service
About Agile Financial Technologies
Confidential Page  10

11. Where will your priorities lie?
Growth
•Client relationships
•New product launches
Survival •Grow market share
• Comply with new regulations •Improve operational efficiency
• Improve risk profile •Achieve customer profitability
• Reputation management •Achieve margins
• Reduce losses •Achieve investor expectations
• Protect customers„ assets
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12. Can we strike a balance?
Survival Growth
• Comply with new regulations •Client relationships
• Improve risk profile •New product launches
• Reputation management •Grow market share
• Reduce losses •Improve operational efficiency
• Protect customers„ assets •Achieve customer profitability
•Achieve margins
•Achieve investor expectations
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13. The barrier
• Inflexible Applications
• Islands of information
• Tedious Product Development
• Multiple interface points
• Succession planning
imperatives
• Lack of research
• Manage new regulatory &
compliance norms
• Manage business essential
activities
• Increase competitiveness I.T.
Business
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14. Agenda
R.I.P. Good Times
Impact of the “new hard times”
Shift in strategic context for I.T.
Metamorphosis of an I.T. Company – Everything As A
Service
About Agile Financial Technologies
Confidential Page  14

15. Shift In Strategic Context For Information Technology
Survival Growth
ALM +
Risk & Liquidity Business
Compliance Management Intelligence
Systems
V@R with Borrowings
Outsource?
Scenario Management Low Cost of
Analysis Ownership
Operational Credit Risk Transaction
Risk Management Processing
Research
Management
Enable an AGILE
business
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16. BUSINESS AGILITY
The ability of a business to
adapt rapidly and cost
efficiently in response to changes
in the business environment.
Confidential Page  16

17. Actions from lessons learnt
Implement sophisticated
liquidity management
systems to ensure Improve Review non-core
identification and communication & processes and identify
measurement of the full workflow non-core areas that
range of liquidity risks, infrastructure to can be outsourced,
including contingent / off- ensure management freeing up internal
balance sheet liquidity risks of risk resources
Liquidity Risk &
Infra Systems Processes
Prediction Compliance
Stress testing; Review internal and
deployment of external facing
compliance and risk systems and
management systems – interfaces. Deploy
market/credit/operations/ business continuity
disclosure & market and disaster recovery
discipline plans.
.
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18. Drivers for outsourcing
• Commercial lending operations impacted
• Financial belts need tightening
Economic • Internal cost, especially IT costs, need to be managed
Slowdown • Economies of scale enable reduce processing cost
• Lower operational costs without compromising on infrastructure, processes and risk
management
Competitive • Research and new product development key to customer retention
Positioning • Accelerated delivery and turn around times
• Frequent changes in regulation is the vendor’s responsibility
• Competency build up is the vendor’s responsibility
• Operational management and back-office personnel are managed by the vendor
Resources • Capacity overflow support in the event of excess transaction volume
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19. Customer Facing What can be outsourced?
Call Loan Processing
Centre
Claims
Policy/Account Processing
Servicing
Fulfillment
CPA/Verification/
Loan Servicing
Check Imaging
& Processing
Back Office
Payment
Processing
Research
High Low
Risk
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20. Right-shoring your operations
Joint
Off-shore
Venture Offshore
Customer-
Shared Services Facing BPO
Near Shore
Near Shore Offshore
BPO BPO
Captive Offshore
Center
Domestic IT Ops
On-shore
Domestic BPO
Low High
Risk
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21. Define Goals
Prepare the organization
Define projects; align to for the changes being
goal. introduced
Build and/or deploy
Deliver service levels at flexible and scalable
optimum cost processes, systems and
infrastructure
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22. Select A Responsible Partner
Business
Changing accountability
Process
Outsourcing Value Chain
Task
Quality Simple rules Complex rules Judgement
Standards
Centers of Excellence
Source: NASSCOM-Everest India BPO Study (2008)
Confidential Page  22

23. What You Should Look For In Your
Outsourcing Partner?
Industry Expertise
Proven Processes & Methodologies
Innovation
Infrastructure & Execution Skills
Financial Stability
Confidential Page  23

24. Create A Rigorous Review Mechanism
Budget, Risk & Audit
Business
Transformation &
Engineering
Infrastructure &
Capacity Review
Benchmark , TAT
& SLA’s
Volume &
Quality
Analytics
Outsource
Programme
Mgmt
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25. Align Internal Processes; Decide What To Outsource
IT infrastructure:
Outsource to IT Vendors with proven
capabilities in ITIL/ITES processes
IT
Infrastructure Application support and
Application development: enhancements:
Shortlist vendors who have Leverage vendor‟s core
proven capabilities and strengths to ensure availability
domain skills to develop of bench and support.
applications. Application Application
Development Support
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26. Caveat Emptor
 Strategic
- Ensure activities of the vendor are consistent with the overall goals of the
REGULATED entity
 Reputation
- It’s all about people!
- Poor service levels can impact customer interaction
- Reputation of the regulated entity is at risk
 Compliance
- Privacy, consumer and prudential laws have to be adhered to by your outsourcer
- Ensure that your vendor has adequate systems, processes and controls
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27. Caveat Emptor
 Operational Risk
- Verify the financial capability and disaster recovery capabilities of the outsourcer
- Audits, reviews & inspection expenses are money well spent
 Exit Strategy
- Ensure an exit strategy is in place
- Clearly define a strategy and process to return services “back home” or to
another “vendor”
 Counterparty Risk
- “Mystery shopping” to assess underwriting and credit assessment processes to
protect quality of receivables
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28. Caveat Emptor
 Country Risk
- Political, social and legal climate can affect business continuity
 Contractual Risk
- Law of the land should enable you to enforce the contract
 Accessibility
- Transparency to your regulator to understand the activities of the outsourcing
partner
 Concentration and Systemic Risk
- Exposure of industry to one vendor. Leads to lack of control over the vendor and
systemic risk to the industry
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29. Agenda
R.I.P. Good Times
Impact of the “new hard times”
Shift in strategic context for I.T.
Metamorphosis of an I.T. Company – Everything As A
Service
About Agile Financial Technologies
Confidential Page  29

30. Software As A Service
• Increase • Minimize
protection, compliance and
transparency security challenges
• Increase entry • Risk & compliance
barriers for systems include
competition corporate actions,
• Increase approval
customer workflows,
retention, & Costs compliance and
Opportunities
personalization anti-money
laundering checks
• Enhance service
• Predictable
levels
Clients • Sustainable Risks • Focus on core
• Matched to cash competency
flows
• Launch new
• Reduced products and
Implementation services
timeframes
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31. The New-Age Business Enablement Company
Technology Innovation
 Cloud Computing
 Virtualization
 Service Oriented Architecture
Delivery Model Innovation
 Packaged/ License
 Software as a Service
 Software Appliance
 Software Enabled Services/Everything As A Service
Revenue Model Innovation
 License
 Subscription/ On Demand
 Transaction Based
 Build-Operate-Transfer/Joint-Ventures
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32. Everything As A Service – Business Enablement
Subsidiaries Fund Admin/ Investment Credit
Served Banks NBFCs Insurance
Registrars Banks/Funds Agencies
Equity & Policy Credit Risk
Processes Enabled
Fund R & T/ Back Office
Forex & Claims Evaluation/
Accounting IPO Processing Accounting
Research Admin Processing
Receipts/ Data Mining/ Customer
Research Accounts Reporting
Payments MIS interaction
Activities
Outsourced
Txn
Fulfilment Verification Dispatch Reconciliation
Processing
Services Business Process Application Managed Strategic
Provisioning
Consulting Development Services Staffing
Application
Provisioning
Banking Insurance F.I.s
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33. Agenda
R.I.P. Good Times
Impact of the “new hard times”
Shift in strategic context for I.T.
Metamorphosis of an I.T. Company – Everything As A
Service
About Agile Financial Technologies
Confidential Page  33

34. The Evolution
Backed by Private Equity, Agile Financial Technology is a mid-sized Indian IT company focused on providing products
and services to the Investment Banking, Asset Management, Insurance and Capital Market sectors
M&A Strategy led by a strong management team
100% buy-out of IT/ITES companies focused Management teams of underlying
Agile emerges as a vertically integrated
on the Financial Services & Insurance companies are inculcated into Agile’s core
mid-market player
Sector team
Create economies of scale, efficiency and a powerful sales, support, and marketing process to leverage a vertically
integrated product & services offering
Consolidated revenues of US$ 30mn in FY08
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35. The Constituents
Investment Banking Insurance Management Technology Solutions BPO
•Treasury & Dealing •General, Life, Medical, •Managed Services •Application processing
Activity
•Fund Management Broking, Banc Assurance •Security Consulting •Document Verification
•Portfolio Management software •App maintenance/ •KYC
•Liabilities Management •Takaful compliant development •Banks, AMCs, Insurance
•V@R Management •EAI •Strategic Resourcing
•ALM
•Over 14 years in •Over 20 years in •Over 6 years in business •Over 20 years in
business business •140+ employees business
•130+ employees •120+ employees •Provide consulting, •2100+ employees
•Ranked by IBS •Initial deployments in the development and •40 locations in India
Intelligence (UK) as 6th M.E. at Emirates managed services to •India‟s largest domestic
Overview
largest Treasury solutions Insurance, Al Ain Al Ahlia banks, insurance BPO
provider globally •Oldest Oracle partner in companies and asset •Provides transaction
•Largest Indian wholesale India (1985) management companies processing services to
banking software provider EVERY bank, mutual
•Ranked as “Highly fund, and life insurance
recommended Company” company in India
by THE BANKER, India
•Chola-Mitsui •Bombay Stock Exchange
•Union National Bank •Mashreq, First Gulf
•State Bank of India
Key Clients
•Bahrain National Holdings •Apollo DKV Bank. ADCB
•Deutsche Bank •Barclays
•Deutsche Bank •Amex, StanChart
`
•Edelweiss •BNP Paribas
•AIG Mutual Fund •Barclays
•ONIC (Oman) •Edelweiss
•StanChart Mutual Fund •AIG`
•Astra (Singapore) •Kotak Life & Kotak AMC
•Reliance Mutual Fund
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36. Delivering Value
• Insurance • Managed Services
• General, Life, Broking, • Security (BCP/DRP)
• Bank Assurance Consulting
• Investment Bank/Fund • Strategic Resourcing
Houses • Enterprise Application
• Asset Management • Integration
• Investment & PMS •
• NBFC‟s/Banks Technology
Products Services
BPO KPO
• Banking
• Loan, Payments,
Liabilities origination
processing • Fund Accounting Services
• Mutual Funds • IPO processing & Support
• Origination, KYC • Equity & Forex Research
• Insurance
• Claims processing, KYC
Confidential Page  36

37. Milestones
Our BPO, Pamac processes over 7% of all retail applications & 27% of all new credit
card applications processed in India
Pamac is ranked amongst the largest Indian domestic BPO vendors by D&B
Over 10mn transactions processed per annum. Over 70mn US$ of loans disbursed
per annum
The largest Mutual Fund in India (over 22 Bn$ AUM) uses iDEAL Funds
iDEAL Funds processes 30% of India’s Mutual Fund’s AUM
Around 45% of the money exchange transactions in India are managed by
MercuryFX
iDEAL is ranked as the 6th largest Treasury solution globally by IBS, UK; and the
largest Indian wholesale banking software in terms of footprint
Confidential Page  37

38. Our Engagement Process
Horizontal Services
Vertical Sales Organization
Confidential Page  38

39. Our Presence
Central & Eastern Europe Middle East
 Russia
 UAE (Direct Presence)
 Poland
 Oman
 Kazakhstan
 Bahrain
 Kingdom of Saudi Arabia
 Kuwait
 Qatar
Africa Asia Pacific
 Mauritius (Direct Presence)  India (Direct Presence)
 Kenya  Sri Lanka
 Tanzania  Indonesia
 Malawi  Malaysia
 Ethiopia  Phillipines
 Nigeria  Singapore (Direct Presence)
 Ghana
Confidential Page  39

40. iDEAL Investment Management Suite
Investment/Fund
Banks Finance Companies
Houses/Insurance
•iDeal Integrated •iDeal Funds – Front,, Mid & •iDEAL Finance –
Treasury Management Back office for fund, Liabilities (Borrowings)
•Mercury FX –Merchant investments and portfolio Management
& Retail FX management •Quadryx – OTC
•Quadryx - OTC •Fund Managers / Investment Derivatives
Derivatives Managers in AMCs, •CALMS – ALM
•RiskMark – Value @ Insurance Companies and •Clients
Risk Portfolio Management
•L&T Finance, Shriram
companies
•iDeal Wealth Transport, Canfin Homes,
Management •FundMetrics –Risk & Sundaram Home Finance,
Compliance reporting Fullerton India Credit,
•Clients
•iDeal Funds Performance HDFC, Kotak Prime
•State Bank of India
Reporting Limited, Fullerton India,
Karnataka Bank,, Indian
Bank, Axis Bank, OBC, •Clients Cholamandalam DBS
Central Bank of Sri •AVIVA Life Insurance*,
Lanka,, PNB Gilts, HDFC Bharti AXA Life*, TATA AIG
Bank, ING Vysya Bank, life*, LIC (Debt portfolio),
SocGen, Union National Shriram Life, Reliance Life,
Bank (UAE) Reliance general, Sahara
Life, BNH (Bahrain),
Reliance MF, AIG MF,
StanChart MF, HDFC MF, SBI
MF, , Pru ICICI
Confidential Page  40

41. Insurance Management Suite
Insurance
Brokers Banks
Companies
• Agilis - • BrokerWorld – • BancAims –
Integrated Insurance Comprehensive
Insurance Brokerage BancAssurance
Enterprise Management Management
Management • Rate comparison-
• Non-life, Life, Policy
Composite Administration-
• Takaful Claims follow up-
• Health & TPA’s Accounting
• All life and non-
life businesses
covered
• Powerful
commission
tracking
Confidential Page  41

42. Technology Solutions
Solution Framework Infrastructure Services
• IntiCraft – A customer self service application for • Data Centers – Design, Security Paradigm,
Mutual Funds Implementation, Movement and Support.
• Life Insurance Portal – Customer, Agent and • Infrastructure Software Support – Database,
Employee Portal – A virtual office for Life Middleware, OS, Security and Messaging
Insurance Companies • Disaster Recovery Design and Implementation
• HRMS add-ons – Expense Management, • ISO 270001 Consulting
Appraisal System, Emp Intranet, Emp Helpdesk • Database and schema migration
• Secondary Sales – Tracks movement of goods
sold beyond the first point of sale
Enterprise Application Integration System Integration
• Application Integration • Hardware sizing and selection
• Customer Application development and • Building a solution for solving a problem – may
maintenance require a mix and match of third-party products
•Middleware expertise on Oracle, IBM and Sybase
Confidential Page  42

43. Business Enablement Services
Verticals Serviced Fund Admin/ Investment
Banks NBFCs Insurance Telco's
Registrars Banks/Funds
Equity & Policy Credit Risk
Processes Enabled
Fund R & T/ Back Office
Forex & Claims Evaluation/
Accounting IPO Processing Accounting
Research Admin Processing
Receipts/ Data Mining/ Customer
Research Accounts Reporting
Payments MIS interaction
Activities
Outsourced
Txn
Fulfilment Verification Dispatch Reconciliation
Processing
Services Business Process Application Managed Strategic
Provisioning Consulting Development Services Staffing
Application
Provisioning
iDEAL 3rd Party/Client Apps
Confidential Page  43

44. The Company We Keep
Banks
Investment
Management
Confidential Page  44

45. The Company We Keep
Insurance
Financial
Services
Confidential Page  45

46. Client Testimonials
quot; AGILis is a highly flexible software which provides for an enterprise
wide solution for insurance companies. The integration between
the underwriting, claims, agency management, reinsurance
and accounts cuts operating headaches down dramatically.
The interface is simple and intuitive.
Further, being a web-enabled product scalability of operations
across geography is immediate. quot;
Sanjeev Jha, Head (Retail)
Cholamandalam-Mitsui General Insurance
Confidential Page  46

47. Infrastructure
 India
- 40 cities across India, 80+ locations
SPOKE
SPOKE B(3)
A(3)
SPOKE
SPOKE SPOKE
A(2)
C(1) C(3)
- Hub & Spoke model SPOKE
B(1)
SPOKE
B(2)
 ISO 9001:2000 certified BPO
SPOKE
A(1)
H
U SPOKE
H H C(2)
B
- 300+ employees in product development and U
B
B
H.
O.
U
B
deployment A
H.
H
U
C
SPOKE
O. B F(2)
- 150+ employees in technology support services SPOKE
D(1)
H
U
H F
SPOKE
F(1)
U
B
- 2,100 employees in business enablement services D
SPOKE
E(1)
B SPOKE
E
E(2)
(BPO)
SPOKE SPOKE
D(2) F(3)
SPOKE SPOKE
E(3)
- 7,600 resources deployed onsite in banks
D(3)
 UAE
- Dubai Internet City
- Dubai Outsourcing Zone
- Sharjah Airport International Free Zone
Confidential Page  47

48. Confidential Page  48