Transforming wealth management customer onboarding with the power of process automation, rules based straight thru processing and data driven real time intelligence.

1. Wealth Management On-boarding:
How to be More Responsive
in the First 90 Days
A Bank Systems & Technology Webcast
Sponsored by

2. Webcast Logistics

3. Featured Speakers
Doug Dannemiller
Senior Analyst
Aite Group
Luis Sierra
Industry Vice President, Banking
Progress Software
Vinaykumar S Mummigatti
VP and Global Head of BPM Practice
Virtusa

4. Ranks of the Wealthy Are Growing
• The number of millionaires
in the world grew 17% in
2009, to 10 million
• The number of ultra-high-
net-worth people (with
more than $30 million to
invest) also grew, by 22% in
2009
• In North America, there
were around 36,300 ultra-
high-net-worth people at
the end of 2009, up from
30,600 in 2008, yet down
from 41,200 in 2007YOUR
PHOTO HERE

5. What Wealthy People Want
30% of wealthy investors don’t have
a financial adviser:
•49% percent say the fees charged by
financial advisers are too high
•40% percent say they can get better
results on their own; 37% percent say
they don’t think financial advisers
have their clients’ best interests at
heart
Talk to me,
Harry Winston!

6. Wealthy Investors Want Convenient
Technology
Among under-50 wealthy investors:
• 59% said they’d like to interact with
their financial adviser using screen
sharing
• 54% would like to use webcam
conferencing
• 53% would like mobile texting
• 55% would like to use a tablet PC
• 56% would like to use HD video from
their home or office
• 52% would like video messages from
their adviser

7. © 2010 Aite Group, LLC www.aitegroup.com Page 7
Actionable, strategic advice on IT, business, and regulatory issues in the financial services industry
Evolution of New Customer Processes in
Wealth Management
Webinar
January, 2011
Doug Dannemiller

8. © 2010 Aite Group, LLC www.aitegroup.com
Wealth Management
There is a competitive battle under way
for assets and advisers.
Assets are moving at double their
historical pace.
Firms with efficient processes, backed by
technology are winning the battle.
Page 8

9. © 2010 Aite Group, LLC www.aitegroup.com 9
Wealth Management Market Sizing
• Wirehouse firms
lead the US wealth
management space
managing 38% of
assets with 12% of
advisors.
• Independent RIAs
have very similar
characteristics to
wirehouse brokers.
Source: “New Realities in Wealth Management: Has the Dust Settled?”, Aite Group, April 2010
53,600
51,240
290,700
55,186
$2,140
$1,535
$1,822
$2,271
$4,745
Online Brokerage
Independent Registered
Investment Advisors
Self-Clearing
Retail Brokerage
(Outside Wirehouses)
Fully Disclosed
Retail Brokerage
Wirehouse
Client Assets and Number of Financial Advisors Across Wealth
Management Industry Segments
(Total Client Assets =US$12.4 Trillion, as of End of 2009)
Number of Financial Advisors Client Assets (US$ Billions)
Self-Directed and Supported by CallCenters

10. © 2010 Aite Group, LLC www.aitegroup.com 10
New Realities in Wealth Management
Eo2009
• Wire house firms are still well
behind old asset levels (minus
US$900B)
• 3% of the overall market has
shifted to other segments, with
RIAs being a major winner
• The online brokerage space is
gaining market share over
traditional brokerage firms in
response to investors’ needs
for more control and
transparency over their
investment portfolios
Source: “New Realities in Wealth Management: Ready for the Sea Change?”, Aite Group, April 2010
38%
19%
15%
12%
17%
Wirehouse
Fully Disclosed
Retail Brokerage
Self-Clearing
Retail Brokerage
(Outside Wirehouses)
Independent Registered
Investment Advisors
Online Brokerage
Client Assets Across Wealth Management Industry Segments
(Total Client Assets =US$12.4 Trillion, as of End of 2009)
Change Since
End of 2008
(0.9%)
(1.8%)
0.5%
1.5%
0.8%

11. © 2010 Aite Group, LLC www.aitegroup.com 11
Breakaway Broker Trend
Update 2010
• While the break-away
broker trend seems to
have slowed down at
the end of 2009, the
average wirehouse
broker still estimates a
29% chance for
breaking away within
the next two years.
• This phenomenon is
not isolated to
wirehouses, other
captive brokers also
give a 23% chance of
changing employer or
to go independent.
36%
28%
20%
10%
4%
2%
15%
39%
25%
13%
4%
3%
Zero (Will not change employer)
1% - 24%
25% - 49%
50% - 74%
75% - 99%
100% (Will certainly change employer
in next 18-24 months)
Q. What is the percentage chance for you to leave your current
employer within the next 18 to 24 months?
All Other Captive
Brokers (n=92)
Wirehouse Broker
(n=67)
Source: Aite Group survey of 402 financial advisors, Q4 2009. Preliminary results – Publication scheduled for Q1 2010.

12. © 2010 Aite Group, LLC www.aitegroup.com 12
Importance of Technology For
Financial Advisors
3%
11%
22%
42%
22%
Not important at all
Little importance
Neutral
Important
Very important
Q. When deciding on working for a firm, how important is the
technology offered to you in your decision-making process?
(n=402) • 64% of advisors see
technology as a
major part when
deciding on working
for a firm.
• Only 14% put little
or no importance on
the technology of a
firm.
Source: Aite Group survey of 402 financial advisors, Q4 2009. Preliminary results – Publication scheduled for Q2 2010.

13. © 2010 Aite Group, LLC www.aitegroup.com 13
Technology Spending Priorities
• Financial Advisors would spend 13% of their technology budget on
better integrating the applications they have currently available.
• The top 5 items would receive over 50% of total technology budget.
15.8%
13.0%
9.0%
6.9%
6.8%
5.3%
4.4%
4.1%
3.9%
2.8%
2.6%
2.3%
2.3%
2.1%
Financial Planning
Increasing the Levelof Integration
Customer Relationship Management
Broker Workstation
ProposalGeneration
Portfolio Construction and Analytics
Portfolio Rebalancing
Portfolio Management System
Compliance Systems
Form Pre-filling
Research System ForMarket Data and News
Aggregated Performance and Client Reporting
Account Setup/Maintenance- Brokerage Platform
Document Management, Imaging, Workflow
Q: Please allocate your budget in percentage terms across the
applications/capabilities you wouldlike to add or improve.
(n=402)

14. © 2010 Aite Group, LLC www.aitegroup.com
Account Opening - Key Process
New account processing is a critical and
transparent tool for demonstrating to advisers
and customers that a firm’s technology
infrastructure is up to date.
Consequently, it is an area under rapid
development at many firms.
Page 14

15. © 2010 Aite Group, LLC www.aitegroup.com
Stage One – Efficiency in a Process Silo
Source: Aite Group analysis
Account
Opportunity
Identified
Investor
Profile
Captured
Product
Level
Advice
Forms
Booklet
Generation
With
Product
Feature
Selection
E-Signature
Compliance
Review of
Proposed
Investment
Transmission
to Product
Underwriter
Transaction
Settlement
Integration of
Transaction
Details Into
Books and
Records
• The potential scope of an account
opening process is broad
• There is usually a balance between
solving the process comprehensively
and getting approval and completing the
project
• Selecting the right scope and staging
process is critical for success

16. © 2010 Aite Group, LLC www.aitegroup.com
Page 16
Stage 2 – Realizing Opportunities and
Mitigating Risks in the Silo
Attrition & Cross-Selling Rates among New
Clients – Retail Bank
Source: 2008 Harland Clarke client case study.

17. © 2010 Aite Group, LLC www.aitegroup.com
Stage 2 - Execution: Many Firms Have Rolled-
out Detailed Processes
Page 17
Stage 2 is business unit centric – cross-selling is narrowly defined as another
product offered by the initiating business unit

18. © 2010 Aite Group, LLC www.aitegroup.com
The Next Stage
Stage 3 is an environment where the Stage 2
processes are in place – from account opening
through customer on-boarding
And…
The information created or gathered in the
process is captured, stored, and utilized
throughout the organization
Page 18

19. © 2010 Aite Group, LLC www.aitegroup.com
Enabling Stage 3
Stage 3 is about creating an optimal enterprise customer relationship.
Viewing customer interactions and data as events in a complex system
can enable stage 3.
In plain terms, this approach means systematically saving data that may
be temporal in nature, and not necessarily viewed as “of further value” to
personnel operating in a process silo.
In order to fully enable Stage 3, patterns as well as data elements need
to be recognized for example:
– Multiple addresses for a single client (pattern)
– Large cash flow – passed AML screening (data)
– Very strong credit score (data)
– Direct deposit level has changed significantly (pattern)
– Source of direct deposit change (pattern)
– Beneficiaries reach age thresholds (18, 21)
Page 19

20. © 2010 Aite Group, LLC www.aitegroup.com
Benefits of Stage 3
Operators within a silo focus on the result they are seeking – in this case
a successfully opened account.
• Landing beneficiary accounts
• Finding neighborhoods (other segments) to target market – based on
successful customer relationships
• Enterprise cross-selling
• Enterprise risk mitigation
• Resource allocation at process, business unit, and enterprise level through
tracking of KPI at individual, unit, and region levels.
Stage 3 allows for enterprise opportunities to be realized - across
business unit, and even cross-customer.
Page 20

21. © 2011 Progress Software Corporation. All rights reserved.21
Poll Question
 Of what stage of automation are your onboarding
processes?
• Stage 1 – Some processes automated
• Stage 2 – Most onboarding processes are automated
• Stage 3 - Intelligent onboarding operations

22. Wealth Management
On-boarding Transformation
Luis Sierra
Industry Vice President
Progress Software
Vinaykumar Mummigatti
VP and Global Head of BPM Practice
Virtusa
January 26, 2011

23. © 2011 Progress Software Corporation. All rights reserved.23
About Virtusa and Progress Software
• Established in 1996
• Headquartered in Westborough, MA
• Locations in US, Asia, Europe and
Middle East
• Technology Centers in U.S., U.K.,
India & Sri Lanka, Budapest
• 80+ active clients
• Over 5,000 world-class professionals
• Listed on NASDAQ (VRTU)
• FY 2010 Revenue Guideline: $225
million
• 32% 5-year compound annual growth
rate
 Founded in 1981
 Publicly traded on NASDAQ since
1991
 Worldwide revenue: over
$500 million
 Customers in over 140 countries
 More than 2,500 partners
 Used in over 140,000 organizations

24. © 2011 Progress Software Corporation. All rights reserved.24
Account-related
data is captured
through interview
and regulatory
forms
Information
captured on the
application is
verified
The account goes
through the
organizational
workflow for setup
and approval,
having multiple
institutional and
regulatory rules
applied
Customer can
now fund the
account to
begin the
transactions
The account is
operational
Client application
process begins
Capture
Customer Data
Identify
Verification
Account Setup
& Approval
Account
Funding
Application /
Initiation
Fulfillment
Core Phases of the On-boarding Process
Mail
Direct: Broker /
Branch / Advisor Mobile Call Center Online

25. © 2011 Progress Software Corporation. All rights reserved.25
Business Challenges for Wealth Management
Client On-boarding
On-boarding
 The process of taking a customer from “application” to “active,”
i.e., providing a customer (retail or corporate) with access to the
product and services of a firm
 Requirements vary greatly by type of financial services product
within a firm
 Complex decision-making around the application process, or
 Complexity around gaining access to the firm’s systems
 For Financial Services firms, products typically are offered either
direct to a client (i.e. web channel) or require an intermediary
(i.e. financial advisor)

26. © 2011 Progress Software Corporation. All rights reserved.26
Business Challenges for Wealth Management
Client On-boarding (cont.)
On-boarding
 For more complex retail products and for majority of corporate
products, there are multi step processes and approvals
frequently before you can finalize onboarding:
 These typically can be very manually intensive and paper based
and lack automation and workflow control
 Duplication of effort and systems across multiple product lines and
multiple channels due to lack of an enterprise-wide account
opening platform/workflow
 Errors and delays in the process have high negative customer
impact
 Time delays can also frustrate the Bank’s financial advisors as well
as lead to loss of fees for the bank

27. © 2011 Progress Software Corporation. All rights reserved.27
Client On-boarding Key Performance Indicators
Wealth Management
KPI What Is Important
Account setup to funds
available (# of days)
Show historical trends like average for all accounts, by country or
region, by agent, by customer segmentation (net worth >$30M, net
worth > $1M)
On-boarding funnel analysis Highlights on-boarding steps and possible bottlenecks firm-wide, e.g.,
Account Initiation, Verification, Compliance, Funds Transfer /
Fulfillment with $$ of Assets and # of days in each stage. Correlate
fallout rates to identify root cause.
Which brokers are driving
what business
•Assets in each step of funnel pipeline
•Conversion percentage
•Analyze by region
Cross-sell / up-sell percentage The first 90 days are the most important. Measure number of
products signed up for by client, by region, by organization.

28. © 2011 Progress Software Corporation. All rights reserved.28
Mail Broker/Branch/Advisor Call Center Web/Mobile
Deposit Credit Card Mortgage Brokerage
Commercial
Banking
Treasury &
Securities
Behind the Scenes On-boarding Processes and
Systems Frequently Lack Business Agility
Challenges Impacts Results in
Inefficient and disjointed processes Onerous application process
• Longer time to on-board
clients
• Loss of Revenue
• High internal cost to support
• Longer time-to-market to
add new products
• Diminished competitiveness
Siloed customer, account and
product information
•Contradictory information creates confusion
•Challenges to support multiple products
Need to support multiple channels Poor and inconsistent client experience
Multiple systems, manual & paper-
based workflows
Inability to track progress and manage the process
Increasing regulatory environment Requires flexibility in systems and processes
Line of business systems have
embedded entitlements
Entitlements are difficult to setup and support easily
and consistently across applications

29. © 2011 Progress Software Corporation. All rights reserved.29
Business Process
Management
(BPM)
Business Rules
Engine
(BRE)
Service-oriented
Architecture
(SOA), Enterprise
Services Bus
(ESB)
Web 2.0 and Rich
Internet
Applications
(RIAs)
Document
Management and
Imaging
Technologies
Event-driven
Architectures
Best-in-class On-boarding Solutions
Require a Blend of Technologies

30. © 2011 Progress Software Corporation. All rights reserved.30
Delivering Operational Responsiveness
Continuous
Business Process
Improvement
Immediate Sense-
and-Respond
Real-time
Business Visibility
Further automate to capture
opportunities (cross-sell)
and minimize threats (non-
compliance, attrition)
Correlate events: e.g.,
compliance, regional
operations
Have real-time visibility of all
wealth management on-
boarding operations

31. © 2011 Progress Software Corporation. All rights reserved.31
Responsive Process Management Architecture
Solution Accelerators Solution Accelerators Solution Accelerators
Existing Enterprise
Systems

32. © 2011 Progress Software Corporation. All rights reserved.32
Responsive Process Management Architecture
Enterprise Service Bus
Semantic Data Integration
Event Capture
Transaction Flow
Discovery
Transaction Visibility Business
Event
Processing
Business
Process
Management
Business
Rules
Analytics
Existing Enterprise
Market
SurveillanceMarket
SurveillanceClient
On-Boarding
Algorithmic
TradingAlgorithmic
TradingAlgorithmic
Trading
Market
Surveillance
Smart
AirlinesSmart
AirlinesClaims
Automation
Smart
AirlinesSmart
AirlinesResponsive
Logistics

33. © 2011 Progress Software Corporation. All rights reserved.33
Progress and Virtusa
Client On-boarding Value Proposition
Faster
On-boarding –
Higher Close-Rate
and Faster Time-
to-revenue
Actionable
Insight –
Improved
Customer Service
and Cross-sell /
Up-sell
Automated
Processing – for
Improved
Efficiency and
Profitability
Ensure
Compliance –
for Reduced Risk

34. © 2011 Progress Software Corporation. All rights reserved.34
On-boarding Demo

35. © 2011 Progress Software Corporation. All rights reserved.35
On-Boarding Demo

36. © 2011 Progress Software Corporation. All rights reserved.36
On-Boarding Demo

37. © 2011 Progress Software Corporation. All rights reserved.37
RPM Test Drive for Client On-boarding
RPM Test Drive for on-boarding
can accelerate time to market and
eliminate risks
 Intensive 3-week engagement built on
Virtusa’s Understand-Evaluate-
Demonstrate (UED) framework
 BPM education and RPM concepts
overview
 Align Stakeholders around business
goals and KPI’s
 Evaluation of on-boarding business
challenges and business case
preparation
 Solution architecture/product
architecture approach for on-boarding
 Solution prototype for on-boarding
Assets Offered
 RPM training material
 On-boarding business
case templates & ROI
calculations tool
 Product evaluation
framework
 Customizable On-
boarding demo
 Reference architecture
for On-boarding
mapped to Progress
RPM software

38. © 2011 Progress Software Corporation. All rights reserved.38
RPM Test Drive for Client On-boarding (cont.)
 Target audience for RPM Test Drive
 Clients who have identified Customer on-
boarding as one of the key transformation areas
 Business and IT stakeholders have a different
view of process and transformation goals
 Largely manual processes today with little
transparency and control
 Evaluating Technology options
 Defining overall Program roadmap for on-
boarding

39. © 2011 Progress Software Corporation. All rights reserved.39
Question and Answers
Please Submit Your Questions
For more information, go to
http://www.progress.com/bankinginfo
or contact us at
progressinfo@progress.com
or 781.280.4700
Luis Sierra
lsierra@progress.com
Vinaykumar Mummigatti
vmummigatti@virtusa.com