Leading New ICT, Transforming Banks and the Financial Services Industry

The Financial Services Industry Is Fully Engaged in the Digital Era Customers Products Channels Competitors 80% of high net worth individuals are part of the digital generation Physical channels ￫ eChannels 85% replacement rate 25,000 players Funding Circle: Third largest loan organization in the UK Scan QR code to pay, Bitcoin/Online financing

Banks Are Now Accelerating Their Digital Strategies Most banks want to become digital banking leaders and are deeply engaged in the transformation to get there Digitalization is a good opportunity for us to reshape business operation modes and enhance the customer relationship. We need to make changes. — CEO of Societe Generale “ Commitment to digital strategy ” Boosted (32%) Digital is a core value High Advanced (42%) Digital is a business Our digital strategy has three core pillars. First, everything we do is customer-centric. Second, our efforts must be globally common. Third, we're creating digital partnerships. — CEO of Citibank “ ” Followers (26%) Digital is a project Low 2012: Deutsche Bank started the “Project Nucleus” for digital transformation. 2014: Societe Generale started the “Digital for All” project. More financial institutions are in action... Low Medium High Data source: investigation on 22 leading banks in Europe Go Digital: The Banking Transformation Road Map (by ATKearney and Efma)

Capacity and scalability IT Review After Business Adjustment: Traditional IT Architectures Could Not Cope with Digital Business Development Capacity and scalability “Sec-Killing” services IT response speed Slow service deployment Online banking Telephone banking Mobile marketing Mobile banking Branch POS Core business Intermediation Operation mgmt. O&M Difficult O&M for siloed systems Costs High IT cost per transaction Credit loan Core accounting Credit card Wealth mgmt Precious metal Payment agency Risk control Marketing Mgmt. Finance Mgmt. … … … Host platform Open platform

Smart Big Data platform Leading New ICT, Accelerating Internet-Oriented Business Transformation Ubiquitous, convenient service channels Branch Online banking Telephone banking Remote banking Mobile marketing Mobile banking Open standards Reshaping services Controllable cost Smart Big Data platform Reshaping data High security and reliability Core business Intermediation Operation mgmt. Large capacity Credit loan Core accounting Credit card … Wealth mgmt. Precious metal Payment agency … Risk control Marketing mgmt. Finance mgmt. … Easy expansion High-Performance, open, IT platform Distributed architecture & cloud platform Convenient R&D Open, efficient IT infrastructure Reshaping the platform

Huawei Helps Banks Migrate Credit Card Systems to Open Platforms KPI Result Requirement Average TPS 1,925 TPS 100 to 200 TPS Peak TPS 2,200 TPS 1000 TPS Mix TPS 1,500 TPS Average response time for AUTH 25 ms 51 ms Critical path time Daily (30 million cards) 84 mins 120 to 180 mins Payment due day (30 million cards) 110 mins Daily (60 million cards) 95 mins Payment due day (60 million cards) 111 mins Meeting large and medium-sized banks’ business requirements and significantly lowering OPEX 24 million 5 million Host platform Open platform Total OPEX in 5 years (5 million cards): USD Source: A POC test report on an open platform credit card system for a bank with 30M to 60M credit cards.

Huawei Helps Banks Develop Next-Generation Cloud IT Platforms Credit card Small loan eBanking Mobile banking ESB IaaS helps banks develop private clouds Cloud management services ICBC: Development and testing cloud New service deployment: 6 months -> 15 days Devices managed per technician: 200 -> 500 2. Auto O&M Service orchestration: supports service-based auto O&M Monitoring IaaS Service Orchestration (GUI/API) Deployment Maintenance Partners offer SaaS-based cloud Apps Yusys Apps (eBanking, mobile banking, social media banking), serving 30+ banks Minute-level service rollout, reducing TCO by 30% First Data credit card 11+ customer, 15+ million consumers OPEX per card reduced by 50% Infrastructure cloud (FusionSphere OpenStack) Process orchestration, scheduling, and execution engine Traditional infrastructure New infrastructure Virtualization Server SAN/NAS x86 server ServerSAN SDN

Huawei’s Financial Big Data Solution Offers CMB Precision Marketing Financial relationship analysis 2.2 million 52.9% Small loan prediction Contingent asset prediction Real-Time credit query Past Now 300,000 1.3% Second data plane: Big Data platform Now Past Marketing messages sent per month Turnover rate of Top 1,000 small loan customers Farmer data services 60% 2 weeks Miner data insight Spark memory iteration Streaming processing Past Past 30% First data plane: Data warehouse 10 minutes Credit Card 888888888888 Now Credit card transaction Now Debit Card 888888888888 Error rate in contingent asset prediction Credit query time Debit card transaction eBanking, mobile phone banking

Mobile and Visual Remote Banking Brings Financial Services to Your Fingertips eSDK open interfaces: Enables more efficient industry App integration 30 Remote teller Banking system Multimedia collaboration platform 5 Counter VTM Debit card issuance time: Minutes Home banking Financial services at your home Community branch 90% counter services Self-Service branch 24/7 services Mobile marketing Home services

New ICT Building an Open, Cooperative Ecosystem for Omni-Channel Finance

(e.g. eBanking, CRM, Marketing…) Huawei BDII (Business-Driven ICT Infrastructure): A Solid Foundation for Financial Services Transformation Business Needs Industry Apps ICT Infrastructures ICT convergence capabilities Product innovations Drive Drive Enterprise wireless Server Storage Network Cloud OS Big Data Security UC Drive (e.g. eBanking, CRM, Marketing…) Open API (eSDK) Cloud Big Data Enable Enable Enable Social IoT Mobility CPS Finance industry App developers Huawei

Agile Innovation in Cloud, Pipe, and Device: Complete Openness Facilitates a Financial Industry Transformation Technology Ecosystem Data processing eSDK FusionSphere User Alliance Data transmission Agile Network Development Alliance Data generation LiteOS Android IoT Gateway BYOD Alliance

New Ecosystem: Working with Global Partners to Build an Industry Alliance 100+ Industry ISVs 14+ Ecosystem Members 7 Joint Innovation Centers Huawei-Accenture Strategic Alliance European Solution R&D Center Huawei-Yusys Joint Solution R&D … Huawei-Atos Joint Solution R&D Suzhou Industry Solution Open Lab Huawei-First Data Joint Solution R&D Latin America Solution Open Lab

Serving Industry Customers with Better Platform, Data, and Service Capabilities 300+ global financial institutions 6 of the world’s top 10 banks 10+ customers in strategic cooperation Typical cases Reshaping platform ICBC development and testing cloud ABC open platform Shanghai-Hong Kong stock connection (10,000 TPS) Reshaping data CMB: Real-time credit query system PBOC: Suspicious transaction analysis platform China Citic Bank (International): Unified data warehouse Reshaping service HSBC: Remote video banking system CMBC: Mobile financial services platform Bank of Shanghai: 24-hour remote teller services 作为金融机构数字化转型的最佳合作伙伴，华为ICT基础设施解决方案广泛应用于全球300多家金融机构，包括了TOP10银行中的6家，同时华为与全球10多个银行建立了全面的战略合作，在重塑平台、重塑数据、重塑服务三个方面累计了大量的成功经验。 在这个展台我们将重点向你讲解华为在重塑平台方面的解决方案及成功实践。 …