1. Confidential. This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation's express consent. © 2010 Fair Isaac Corporation. 1 Designing an Infrastructure for Better Customer Experience A Case Study Keith Binley Head of Credit Risk and Fraud Metro Bank Fernando Donati Jorge Senior Consultant FICO 16 November, 2010

2. © 2010 Fair Isaac Corporation. Confidential. 2 2 2 Metro Bank is Britain's first new High Street bank in over 100 years - offering banking focused on the Customer. © 2010 Fair Isaac Corporation. Confidential.

3. 3 3 “The big-bank attitude sees a customer as a cost, not a revenue generator.” Vernon W. Hill II, Vice Chairman What’s the difference?

4. © 2010 Fair Isaac Corporation. Confidential. 4 Typical big-bank landscape Customer »Account and product level views only »Definitions, policies, treatment and services aren’t shared across functions or lines of business »Usually reacting to customer requests and actions »Not sure of best practice or optimal performance »Cross-sell and up-sell is limited or doesn’t exist »Difficult to respond to changes, market demands and customer behaviour Fraud Originations Customer Management Collections & Recoveries Marketing Distribution Service

5. © 2010 Fair Isaac Corporation. Confidential. 5 Customers should be at the heart of everything »Customer view »Customers behave and want to be treated as individuals »In each interaction with a customer, there are decisions that need to be managed »Customer perception of these interactions is key to customer satisfaction »Better decisions drive better actions, better business and higher customer satisfaction »Measuring performance enables systematic improvement Originations Customer Management Collections & Recoveries Marketing Fraud Service Distribution Customer

6. © 2010 Fair Isaac Corporation. Confidential. 6 This is a Revolution in Banking »Open 7 Days, Early & Late »Great Online Banking »Bank Cards "on the spot" »Speak to a Local Person 24/7 »Local Loans by Local Lenders »Cash Management Services

7. © 2010 Fair Isaac Corporation. Confidential. 7 Where to start? »Originations was natural first candidate, but: »It needs to be highly available, as stores (branches) are open in retail hours »It needs to be fast, as accounts must be opened while the customer waits »It needs to be safe, as bank cards are issued “on the spot” »It needs to be comprehensive, as the bank offers a full range of products »It needs to be compliant, as a model to how all banks should be »And no stupid bank rules allowed! Originations Customer Management Collections & Recoveries Marketing Fraud Service Distribution Customer

8. © 2010 Fair Isaac Corporation. Confidential. 8 8 “[Entering the FS market involves] significant IT investment, often in the form of sunk costs, which can account for up to two-thirds of start- up costs” Office of Fair Trading (OFT) The IT challenge…

9. © 2010 Fair Isaac Corporation. Confidential. 9 9 Decision Data Core Banking Decision Support Stack FICO Equifax Temenos Niu Solutions IT Infrastructure

10. © 2010 Fair Isaac Corporation. Confidential. 10 FICO is the leader in Decision Management — transforming business by making every decision count © 2010 Fair Isaac Corporation. Confidential.

11. 11 What is Decision Management? »Automate, Improve & Connect »Automate for speed and consistency »Improve targeting, relevance and results »Connect decisions across functions, channels, customer touchpoints »Enhance Business Performance »Increase customer profitability »Grow and strengthen customer relationships »Reduce fraud and credit risk »Lower costs of making decisions DECISION MANAGEMENT is an approach that automates, improves & connects decisions to enhance business performance

12. © 2010 Fair Isaac Corporation. Confidential. 12 “FICO’s approach to building a customer-centered enterprise has been extremely effective for Marriott’s Global Sales Organization.” Customer Centricity

13. © 2010 Fair Isaac Corporation. Confidential. 13 Agility and Scalability “The FICO business rules software gives Sun tremendous scalability and faster time to market.”

14. © 2010 Fair Isaac Corporation. Confidential. 14 “FICO technology has more than fit the bill in terms of managing the dynamic growth in our credit card business.” Growth

15. © 2010 Fair Isaac Corporation. Confidential. 15 »© 2009 Fair Isaac Corporation. Confidential. »15 #1 in Worldwide Business Rules Management Software — IDC, Worldwide Business Rules Management Systems 2007-2011 Forecast and 2006 Vendor Shares, Doc # 208989, October 2007 Best Business Rules Management System — InfoWorld — Intelligent Enterprise Readers’ Choice Award — Yphise Leadership: Business Rules Management

16. © 2010 Fair Isaac Corporation. Confidential. 16 Originations Decisions for Metro Bank 1.Whether to accept a new Customer to the bank 2.Determine what products a Customer is eligible for and any limits that should be applied to the specific products 3.Whether to accept a Customer’s Product application.

17. © 2010 Fair Isaac Corporation. Confidential. 17 Metro Bank Product Portfolio Personal »Bank Accounts »Current Accounts »Cash Accounts »Savings »Mortgages »Personal Loans »Credit Card »Overdraft Business »Bank Accounts »Deposit Accounts »Cash Management Services »Commercial Mortgages »Small Business Loans »Business Loans »Credit Card »Overdraft

18. © 2010 Fair Isaac Corporation. Confidential. 18 Precision, Consistency and Agility »Leverage AML, Fraud and Credit data from Equifax whenever necessary to increase precision of decisions taken »Consistently apply policy rules whenever a decision is taken »Ability for Business Users to amend rules when required in a simple manner »Ability for Underwriters to view and amend processed applications

19. © 2010 Fair Isaac Corporation. Confidential. 19 BLAZE ADVISOR DECISION SERVICE E V E N T & T R A N S A C T I O N P R O C E S S I N G Operational Data Store Analytic Development Configuration & Deployment Services IT Tools D E V E L O P M E N T & M A N A G E M E N T Rule & Model Repository Business User Tools Business Intelligence Analytic Services Rules Services Data Services Monitoring & Decision Analysis Reporting & Adaptive Analytics Services Decision Request Decision Temenos BancTec C O R E S Y S T E M S Equifax Data Warehouse Contact Centre C H A N N E L S Web ATM Field Store Strategy Development Optimisation Implementation & Rules Management Decision Infrastructure at Metro Bank

20. © 2010 Fair Isaac Corporation. Confidential. 20 Highlights »Fast time-to-market »Very tight deadlines constrained by client’s desired go-live date »The FICO Implementation was delivered on-time and to schedule »All agreed milestones delivered »“Located Locally” »Majority of work performed by on-site UK personnel »Flexible »Smooth UAT and System Testing phases with main FICO amendments being changes to rule logic as business requirements changed »On-site Support »Full-time on-site FICO support for go-live and post go-live

21. © 2010 Fair Isaac Corporation. Confidential. 21 © 2010 Fair Isaac Corporation. Confidential. 21 “We see banking as a retailing business, not a banking business.” Vernon W. Hill II, Vice Chairman What’s the difference?

22. © 2010 Fair Isaac Corporation. Confidential. 22 Does it work? One-year target for customer accounts hit just five weeks after opening first store »Consistent real-time decisioning for all Customers »Full visibility of the reasons of the decision made for each Customer »Flexibility to change business rules and promote them live very quickly »Next decision areas will leverage decisioning infrastructure in place Originations Customer Management Collections & Recoveries Marketing Fraud Service Distribution Customer

23. Confidential. This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation's express consent. © 2010 Fair Isaac Corporation. 23 THANK YOU 16 November, 2010 Keith Binley Head of Credit Risk and Fraud Metro Bank Fernando Donati Jorge Senior Consultant FICO