Making Blockchain Real for Business Thanks, pleasure etc. There is much hype around Blockchain. Most of this relates to the use of Blockchain to underpin the Bitcoin crypto currency. Whilst IBM are not interested in Crypto currency, we are very interested in exploring the broader business application of Blockchain technology. This is a transformational opportunity for many of our clients This touches most all industries – we are making Blockchain REAL for business.

Blockchain - Potential Use Cases Securities Post-trade settlement Derivative contracts Trade Finance Bill of Lading Cross-currency payment Syndicated Loans Supply Chain Retail Banking Cross border remittances Mortgage verification & contracts Know Your Customer Public Records Real estate records Vehicle registrations Citizen Identity Digital Property Management

Overview of International Trade Inefficiencies 12 parties 27 documents Low automation Risks Currency fluctuation Non-completion Result Financing is expensive SMEs locked out

Blockchain-Enabled Future State (Blockchain node) Document Access Participant access based on permissions Address Compliance and Fraud Document state and origin known at all times Enhanced Trust through Smart Contracts E2E Real-time Visibility (Blockchain content) No Reconciliation or Manual Validation Required Ledger nodes replicated with identical content via distributed consensus $14T+ in global trade is financed Upto 3 weeks for documents to be verified $37.6B potential cost saving by eliminating paper

Blockchain for Supply Chain Management Operations Supply Chain Optimize Supply and Distribution Networks Reinvent Processes and Accelerate Organizational Agility Traceability / Product Safety Product recall Fraud / Provenance Global trade Order tracking Flow of: Goods Money Information Internet of things integration Paper-intensive operational processes (e.g. real estate contracts) Marketing Channel Deliver a Differentiated Brand Experience Collaborate More Effectively with Channel Partners Loyalty Consumer warranties Trade deductions / disputes management Data sharing platforms

Blockchain-based Shared KYC Repository Value proposition Avoid replication of KYC effort History of changes in identity or address can be tracked in a secure tamper proof system KYC information across multiple participating institutions can be shared in a secure manner Blockchain platform capabilities can be used to securely adhere to individual organizational policies, regulations, and associated access control requirements Certified processes (implemented as smart contracts) provide an approved and auditable approach to updating KYC information Transition from periodic KYC monitoring to continuous real-time monitoring Bank A Bank B Bank C Existing Apps Existing Apps Existing Apps Certified KYC Update Processes KYC Retrieval & Verification Blockchain Platform Update processes implemented as smart contracts/chaincodes Chaincodes for query & verification Bank B Bank A Secure tamper proof auditable ledger with KYC data & associated documents Ledger Ledger Blockchain Network Ledger Bank C

Thank You!