Analytic Applications in Financial Services Jennifer Toomey Senior Director

The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

Agenda Oracle in Financial Services Industry Challenges in the Spotlight Roadmap to Management Excellence Q&A

Oracle in Financial Services

Financial Services Customers Using Oracle Analytic Applications Capital MarketsBankingInsurance

Financial Consolidations, Budgeting & Planning Basel II, Economic Capital, Credit Risk, Operational Risk Transactional Analytics, Anti-Money Laundering, Broker/Dealer Compliance Multidimensional Profitability, Funds Transfer Pricing, Asset Liability Management, Balance Sheet Planning 2006 Customer Analytics, Business Intelligence Activity-Based Management, Funds Transfer Pricing, Financial Services Data Warehouse Treasury Services Investment in Market Leading Analytic Applications for Financial Services

Oracle Analytic Applications for Financial Services Governance & Compliance Credit Risk Performance Management Marketing GovernanceRetail Credit RiskMultidimensional ProfitabilityPortfolio Analytics Compliance RiskCorporate Credit RiskCustomer ProfitabilityMarketing Analytics Regulatory ComplianceTreasury Risk Funds Transfer PricingService Analytics Anti-Money LaunderingMarket Risk FinanceChannel Trading ComplianceAsset Liability ManagementBalance Sheet PlanningChannel Usage Broker Compliance Regulatory Capital Budgeting & Forecasting Channel Performance Sales Analytics Fraud DetectionBasel II : Credit RiskConsolidation Operational Risk Basel II : Market RiskAccounting Hub Operational Risk Basel II : Operational Risk Economic Capital EC : Credit Risk EC : Market Risk EC : Operational Risk Specialized Analytics Insurance Credit Cards Mortgages Enterprise Performance Management Customer Insight Customer Insight Governance Risk & Compliance Governance Risk & Compliance Enterprise Risk Management Enterprise Risk Management

Oracle Positioned in Leaders Quadrants The Magic Quadrant is copyrighted 2008 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. These Magic Quadrant graphics were published by Gartner, Inc. as part of larger research notes and should be evaluated in the context of the entire reports. The Gartner reports are available upon request from Oracle. Sources: Gartner, Inc., “Magic Quadrant for Business Intelligence Platforms, 2008” by James Richardson, Kurt Schlegel, Bill Hostmann, Neil McMurchy, 1 February 2008 Gartner, Inc., “Magic Quadrant for CPM Suites, 2006 “ by Nigel Rayner, Neil Chandler, John E. Van Decker, 19 December 2007 Gartner, Inc., “Magic Quadrant for Data Warehouse Database Management Systems, 2007” by Donald Feinberg and Mark A. Beyer, 10 October 2007 Magic Quadrant for Business Intelligence Platforms, 2008 Magic Quadrant for CPM Suites, 2007 Magic Quadrant for Data Warehouse Database Management Systems, 2007

Reveleus in Risk & Compliance Reveleus Basel II Solution emerges as the market leader Reveleus was named as a leader in Gartner’s Magic Quadrant Tower Group named Reveleus the “crown jewel” of i-flex and ranked Reveleus Basel II highest Celent group considers Reveleus as the North American Market Leader in Basel space August ‘05 December ‘05 January ‘06 June ‘06

Oracle’s Financial Services Strategy Oracle’s Strategy and Vision is based on the view that the only way to bring a wide range of domain specific software capabilities to market is through: Developing and acquiring the most complete set of “best of breed” functional capabilities available from any one single vendor Pre-integrating these “best of breed” solutions through process based integration to reduce complexity and cost for the customer Standardizing and converging over time the “integrated best of breed” solutions onto a common, open technology architecture Building an ecosystem of system integrators to complement our own capabilities for platform lead implementations © 2008 Oracle Corporation – Proprietary and Confidential

Industry Challenges in the Spotlight

“In banks there is always a bias towards one side of the argument. The business line was more focused on getting a transaction approved than on identifying the risks in what it was proposing. The risk thinking therefore leaned towards giving the benefit of the doubt to the risk- takers.” “Confessions of a Risk Manager” The Economist, August 7, 2008

Analytical Challenges Compliance Challenges  Overspending on redundant, manual processes  Lack of vision around performance management connected to compliance  One-off regulatory compliance projects  The burden of compliance will only continue to increase Risk Customer Insight Risk Management Challenges  No framework for consistent management and mitigation of risks across enterprise  Interrelated risks treated in silos of information  Weak business, physical and IT standards to support enterprise risk management  Inaccurate and delayed monitoring of key performance and risk indicators Cust. Insight Challenges  No single source of truth for customer data  Incomplete view of customer  Inability to cross-sell intelligently to customer base  No way of tracking or refining campaigns Compliance Performance Performance Challenges  Information not timely enough to evaluate organizational performance  Multiple Versions of the truth  Inconsistent, measures, targets and accountability  Managing returns require risk adjusted insight

“Get me the data that I need” Data sits in multiple places Data is difficult to get at for the business user Data is not formatted or presented in a way that’s relevant to me “Produce the data that I need to help me run my business better” Data from Operational systems only tell part of the story Financial services are about analyzing and risk “I don’t trust the data I see” ”My data does not match that of another departments” Definitions are not matched, clean or normalized Data is not reconciled between systems Problems with Getting Actionable Intelligence Getting the wrong, too detailed, or insufficiently detailed report Getting data or facts, not information Getting information that does not make any sense Definitions mismatched across reports

Roadmap to Management Excellence

The Next Wave: Extend Operational Excellence to Management Excellence Time Competitive Advantage OPERATIONAL EXCELLENCE MANAGEMENT EXCELLENCE

OLTP & ODS Systems Data Warehouse Data Mart SAP, Oracle, Siebel, PeopleSoft, JDE, Custom Excel XML Business Process OLAP Oracle EPM System Industry’s First Integrated EPM System Fusion Middleware Business Intelligence FoundationEPM Workspace BI Applications Performance Management Applications

Market Leading Applications BI Applications EPM Workspace OLTP & ODS Systems Data Warehouse Data Mart SAP, Oracle, Siebel, PeopleSoft, Custom Excel XML Business Process OLAP Fusion Middleware Business Intelligence Foundation Enterprise Performance Management Customer Insight Customer Insight Governance Risk & Compliance Governance Risk & Compliance Enterprise Risk Management Enterprise Risk Management

Oracle’s Analytic Applications Vision in Financial Services 1.Merge Best-of-Breed capability across products 2.Create a single integrated platform 21 Financial Services Business Intelligence Financial Services Analytics Framework Financial Services Data Model Treasury Services

Unified Analytical Metadata Analytic Applications Financial Services Business Intelligence Financial Services Analytics Framework Financial Services Data Model Integrated Solution Structure Reports Alerts Dashboards Embedded Purpose Built Engines Common Tools Business Rules Stochastic Modeling Common Objects Common Dimensions Pre-Integrated and Extensible High Volume Integrated Analytic Applications for Financial Services Enterprise Performance Management Customer Insight Customer Insight Governance Risk & Compliance Governance Risk & Compliance Enterprise Risk Management Enterprise Risk Management

Analytic Applications Enterprise Performance Management Customer Insight Customer Insight Governance Risk & Compliance Governance Risk & Compliance Enterprise Risk Management Enterprise Risk Management Profitability & Allocations Budgeting & Planning Funds Transfer Pricing Asset Liability Mgmt CRM Analytics Interconnected, Integrated Analytic Capabilities Credit Risk EC/BASEL Credit Risk Retail/Corp Market Risk Operational Risk & EC Compliance & Fraud Risk Governance Channel Behavior Risk Performance Customer Insight Business Intelligence Dashboards, Queries, Reporting Unified Analytical Metadata Common Assumptions, Calculation Engines

Profitability & Allocations Budgeting & Planning Funds Transfer Pricing Asset Liability Mgmt CRM Analytics Interconnected, Integrated Analytic Capabilities NII Analytic Applications Credit Risk EC/BASEL Credit Risk Retail/Corp Market Risk Operational Risk & EC Compliance & Fraud Risk Governance Analytic Applications Channel Behavior Transaction Drivers & Costing Cash Flow & Pillar 2 Credit & Behavior Scores RAPM Capital Adequacy Multi-Channel Fraud Regulations/Policies Processes Segmentation Risk Performance Customer Insight Variance Future Balance Sheet Treasury NII, Variance & Scenarios Second Order Analytic Capabilities SOX & Controls Customer Profitability Business Intelligence Dashboards, Queries, Reporting Unified Analytical Metadata Common Assumptions, Calculation Engines

Oracle Team & Development Method Single Division Focused on Analytic Applications for Financial Services Significant New Investment in Development Resources Framework Based Approach to Development Common Objects Leveraged Across Solutions Allows greater speed to market E.g. Common retail pooling engine stratifies instrument groups for use in Basel II, ALM, FTP, Economic Capital E.g. Prepayment assumptions defined in single place and leveraged across the suite Business Logic Embedded in Rules Interface Users able to modify calculations to fit their business

Platform Value Propositions ComprehensiveCovers absolutely all areas of interest to FSIs Customer & Employee Centric360 degree customer information with full employee connections Best of Breed for FSIEach area is deep and rich, market evidence of cutting edge capability Connected & Integrated across Functions e.g. Profitability and Risk are seamlessly available together for RAPM Consistent across the EnterpriseDimensional and other definitions are commonly shared Pervasive and Actionable across the Business Easily slides into the business processes thru standard interfaces Immediate and TimelyManages near real-time data updates Closed LoopIncludes user actions and results in the analysis Industrial Strength Built on Fusion Architecture