2. Analytic Applications in Financial Services Jennifer Toomey Senior Director

3. The following is intended to outline our general product direction
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.

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

5. <Insert Picture Here>
Oracle in Financial Services

6. Financial Services Customers Using Oracle Analytic Applications
Banking
Capital Markets
Insurance

7. Investment in Market Leading Analytic Applications for Financial Services
Treasury
Services
Multidimensional Profitability,
Funds Transfer Pricing,
Asset Liability Management,
Balance Sheet Planning
Transactional Analytics,
Anti-Money Laundering,
Broker/Dealer Compliance
Basel II, Economic Capital,
Credit Risk, Operational Risk
1998
2005
2006
2007
Activity-Based Management, Funds Transfer Pricing, Financial Services Data Warehouse
Customer Analytics,
Business Intelligence
Financial Consolidations,
Budgeting & Planning

8. Oracle Analytic Applications for Financial Services
Enterprise Performance Management
Customer
Insight
Governance
Risk & Compliance
Enterprise Risk
Management
Governance & Compliance
Credit Risk
Performance Management
Marketing
Governance
Retail Credit Risk
Multidimensional Profitability
Portfolio Analytics
Compliance Risk
Corporate Credit Risk
Customer Profitability
Marketing Analytics
Regulatory Compliance
Treasury Risk
Funds Transfer Pricing
Service Analytics
Anti-Money Laundering
Market Risk
Finance
Channel
Trading Compliance
Asset Liability Management
Balance Sheet Planning
Channel Usage
Broker Compliance
Regulatory Capital
Budgeting & Forecasting
Channel Performance
Sales Analytics
Fraud Detection
Basel II : Credit Risk
Consolidation
Operational Risk
Basel II : Market Risk
Accounting Hub
Basel II : Operational Risk
Economic Capital
EC : Credit Risk
EC : Market Risk
EC : Operational Risk
Specialized Analytics
Insurance
Credit Cards
Mortgages

9. Oracle Positioned in Leaders Quadrants
Magic Quadrant for Business Intelligence Platforms, 2008
Magic Quadrant for CPM Suites, 2007
Magic Quadrant for Data Warehouse Database Management Systems, 2007
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

10. Reveleus in Risk & Compliance Reveleus Basel II Solution emerges as the market leader
January ‘06
June ‘06
December ‘05
August ‘05
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

11. 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 1 2 3 4 11
© 2008 Oracle Corporation – Proprietary and Confidential 11

12. <Insert Picture Here>
Industry Challenges in the Spotlight

14. <Insert Picture Here>
“Confessions of a Risk Manager”
The Economist, August 7, 2008
“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.”

15. Analytical Challenges
Performance Challenges
Compliance 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
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
Performance
Compliance
Risk
Cust. Insight Challenges
Risk Management 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
Customer
Insight
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

16. Problems with Getting Actionable Intelligence
Getting the wrong, too detailed, or insufficiently detailed report
“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
Getting data or facts, not information
Definitions mismatched across reports
“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
Getting information that does not make any sense
“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

17. <Insert Picture Here>
Roadmap to Management Excellence

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

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

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

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

22. Integrated Analytic Applications for Financial Services
Governance
Risk & Compliance
Enterprise Risk
Management
Enterprise Performance Management
Customer
Insight
Financial Services Business Intelligence
Embedded
Dashboards
Alerts
Reports
Unified Analytical Metadata
Financial Services Analytics Framework
Integrated Solution Structure
Stochastic Modeling
Business Rules
Purpose Built Engines
Common Tools
Financial Services Data Model
Common Objects
Common Dimensions
Pre-Integrated and Extensible
High Volume 22

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

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

25. 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

26. Platform Value Propositions
Comprehensive
Covers absolutely all areas of interest to FSIs
Customer & Employee Centric
360 degree customer information with full employee connections
Best of Breed for FSI
Each 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 Enterprise
Dimensional and other definitions are commonly shared
Pervasive and Actionable across the Business
Easily slides into the business processes thru standard interfaces
Immediate and Timely
Manages near real-time data updates
Closed Loop
Includes user actions and results in the analysis
Industrial Strength
Built on Fusion Architecture