Technology Blueprint Discussion Paper Published

slide1. Technology Blueprint
Discussion Paper

Published 03-Apr-2017
Version 1.0 (baseline) © QUANTrho 2017. All rights reserved. Strictly Confidential. For intended audience only. 1/11<br>
slide2. Safe Harbor & Confidentiality 2/11 © QUANTrho & Adani-FS 2017. All rights reserved. Strictly Confidential. For intended audience only. SAFE HARBOR
Our discussion may include predictions, estimates or other information that might be considered forward-looking. While these forward-looking statements represent our current judgment on what the future holds, they are subject to risks and uncertainties that could cause actual results to differ materially. You are cautioned not to place undue reliance on these forward-looking statements, which reflect our opinions only as of the date of this presentation. Please keep in mind that we are not obligating ourselves to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. Throughout related discussions, we will attempt to present some important factors relating to your (and our) business that may affect our predictions.

CONFIDENTIALITY
This document and any attachments / referneces enclosed are strictly confidential and intended solely for the intended audience and may also be privileged or exempt from disclosure under relevant applicable law. If you have received it in error, please notify the sender immediately and delete the original. Any other use of information in this paper by you, in part or whole, is prohibited.<br>
slide3. Digital franchise as a differentiator:
Superlative customer & user experience
Online real-time decisions aided by market-interfaces
Paperless & Straight-through-Processing
High end technology leverage for customer delight, efficiency, controls
Asset light & Lean Management for efficiency:
Pay-as-use, as-a-service
Technology costs distilled as a % cost of acquiring / servicing a customer
Analytics intense for management-by-fact:
On demand & on field decision support
Adaptable to evolving business reality 01. Guiding tenets of the technology blueprint Automation & technology imperatives like Straight Through Processing, Online – Real time and Rich Mobility Channels were key differentiators for Digital Franchises 10 years ago. These are considered basic today. Digital Franchises of today evolve on basic capabilities to augment business aspirations, operations efficiencies and strategic decision management. 3/11 Adani-FS Play
Core – Infrastructure Funding, Project Financing …
Cluster – SME, Supply-Chain Financing,, Export & Trade Finance …
Branch – Agri, MSME, Affordable Housing … © QUANTrho & Adani-FS 2017. All rights reserved. Strictly Confidential. For intended audience only.<br>
slide4. 02. Technology strategy in-a-page Technology Strategy for any business can be measured along 4 standardized pillars that cover Risk – Reward spectrum. For Adani-FS, success criteria for such a strategy would rely on robust & sustainable foundations being established. 4/11 © QUANTrho & Adani-FS 2017. All rights reserved. Strictly Confidential. For intended audience only.<br>
slide5. 03. Digital Franchise: Benchmarked with global-best C B A D In order to ensure an ROI linked approach to “Digital”, it is important to assess the collective technology initiatives against key business aspirations – (1) aid profitability; (2) automate as much as possible; (3) anchor on customer; (4) scalability, cost & time 5/11 Evolution Stages for Adani-FS © QUANTrho & Adani-FS 2017. All rights reserved. Strictly Confidential. For intended audience only.<br>
slide6. © QUANTrho & Adani-FS 2017. All rights reserved. Strictly Confidential. For intended audience only. 04. Digital Customer experience: Representative Reference Application Login Online real-time Credit Recommendation basis pre-defined rules Eligibility Check In-Principle
Sanction Document Image Capture Geo-Tagging
Stage-1 Collateral Valuation Biometric Authentication Detailed case entry & Digital Document Capture Real Time Synchronization Verification / Deduplication Field Visit/ Valuation Credit Sanction Disbursal Approved Geo-Tagging
Stage-2 Collateral Valuation Bureau Check
Bank statements scrub
IT returns scrub (TBD)
Aadhaar based e-KYC
Self-employed:
Financial statements scrub
Shadow Financials Assessment
Psychometric Evaluation Document Image Capture Adani-FS 6/11 Animations in slide – Please see in “slide-show” mode within MS PowerPoint.<br>
slide7. 05. Analytics: Performance management-by-fact Key Capability
On-field & just-in-time analytics –
Scenario analysis
Predictive analytics
Performance dashboards
Central (back-office) analytics, through data-warehouse & business intelligence tool leveraged by analytics team -
Cross-functional KPI driven pre-designed data-warehouse
Statistical analysis on sales, credit, risk, delinquency, profitability, Impairment & collections
Multi-dimension analytics capability (e.g., segment, geography, customer, channel) Business Decision Tenets,
that drive the Analytics Program Product feature selection;
Product pricing;
Acquisition scorecard;
Cross sell response models;
Segmentation & targeting;
Contact strategies optimization Customer lifetime value;
Offer optimization;
Customer loyalty;
Churn/attrition analytics;
Customer experience value;
Reactivation / silent attrition Market profiling & sizing;
Market mix optimization;
Market spend optimization;
Promotion effectiveness;
Customer / brand equity;
Product positioning Behavioral scorecard;
Risk based pricing;
Credit/market risk evaluation;
Portfolio health tracker;
Portfolio stress testing;
Capital allocation Staffing analysis;
Channel process effectiveness;
Financial reporting & analysis;
Investment planning;
Asset liability management Consumer fraud framework;
Money laundering;
Payoff / foreclosure analysis;
Self-cure propensity analysis;
Recovery maximization;
Delinquency & roll rate analysis;
Collection scorecard After initial setup, calibration and improvements to business performance & technology alignment largely depends on the quality of management decisions & related assumptions. These assumptions & decisions are in-turn dependent on high-quality analytics capabilities (including predictive assessments & what-if scenarios). 7/11<br>
slide8. Ubiquitous digital experience (self-service or assisted mode), benchmarked with global-best.
Supported by digital document capture & workflow management, along with market interfaces for online real-time processing & credit underwriting.
Multi-channel credit rating (bureau + psychometric + shadow financials) for self-employed. 06. Technology Solutions: Landscape & Options Core automation areas for Adani-FS are anchored around Lending Management, Mobility Platform, Workflow & Document Management, Analytics, Enterprise Solutions and Market Interfaces. A number of off-the-shelf product options exist for each, which can be selected on a bespoke basis. The mobility platform must be designed basis target customer behavior and is key to resident IP (in addition to any differentiated products proposition). The direct central TCO of technology (reflected as P/L impact) is advised to be between 15-20% of Non-Interest-Expense during “setup” years. Post that, the ratio is expected to be in 7%-12% range. 8/11 © QUANTrho & Adani-FS 2017. All rights reserved. Strictly Confidential. For intended audience only.<br>
slide9. IT IT Change & Turnkey Delivery
Define / Refine Multi-year technology Roadmap for businesses
Deliver Turnkey Solutions END2END
Converge Products – Sales – Ops – Risk for solution intent & execution
Service Introduction & Handover to RUN
Benefits assessment
IT Risk - 1st Line of Defense (Change functions) Digital Content & Experience Management: Pool of cross-functional IT analysts / developers 07. Resident IT capability: Key Coverage Required A robust resident IT capability (CTO function) is required to ensue scalability, sustainability and compliance of technology solutions. Coverage needs to extend to Change, Run, Operations & Governance. It is advised to keep the team sizing lean, backed by “Agile” delivery processes and structured planning. 9/11 © QUANTrho & Adani-FS 2017. All rights reserved. Strictly Confidential. For intended audience only.<br>
slide10. 08. Snapshot on Hosting Considerations A trusted private cloud option (like Microsoft Azure offering) – with added coverage to compliance, security & data protection - poses optimal solution for Adani-FS’s business needs. Business benefits to expect are -
Cost Savings — Reduce CAPEX and use OPEX for increasing computing capabilities. Lower barrier to entry and requires fewer in-house IT resources to provide system support.
Scalability/Flexibility — Start small and grow to larger as needed, and then scale back if necessary.
Reliability — Services using multiple redundant sites can support business continuity and disaster recovery.
Maintenance — Cloud service providers do the system maintenance, thus further reducing maintenance requirements.
Mobile Accessible — Mobile workers have increased productivity due to systems accessible in an infrastructure available from anywhere. For executive attention, infrastructure hosting (and related options)must be assessed along factors of Reliability, Availability, Security, Scalability & Recoverability. Credible options range from an owned data-center to open-public cloud. In the interests of aligning infrastructure hosting for Adani-FS with target business aspirations, it is recommended to pursue a “Trusted Privaate Cloud”. Specifics of the option may be concluded during implementation stages considering cost / time / risk / value. 10/11 © QUANTrho & Adani-FS 2017. All rights reserved. Strictly Confidential. For intended audience only.<br>
slide11. About the Author: Sridhar Guru 11/11 © QUANTrho & Adani-FS 2017. All rights reserved. Strictly Confidential. For intended audience only. Mobile: +91.981.992.9999
VoIP: +1.646.480.0808
Skype: SridharGuru
Email: Sridhar.Guru@Outlook.com
URL: LinkedIn.com/in/SridharGuru Over 25 years of global experience specialized in Financial Services Technology & Operations, Sri’s career has centred on contributing to company success through definition of technology & operations strategies, alignment of investments with business objectives, and execution of the strategies to achieve targeted ROI. He has held successful IT leadership roles (including 8 years in regional / group CIO positions) with banking, insurance, financial services, e-Commerce and commercial technology industries, ranging from Fortune 50 and high growth companies to start-ups. He has led & executed over 10 large-scale global transformations spanning launch of Consulting Practice, Business Transformation, Business Process Reengineering, Technology and M/A transactions. His global work exposure spanned US, UK, UAE, Mauritius, India and Australia & New Zealand.

Currently as Executive Coach & Management Advisor, Sri helps organizations improve operations & technology leverage, benchmarked to global-best, in aiding business performance acceleration. Within 21 months in this role, his advisory-portfolio includes –
ESAF Micro Finance / Small Finance Bank – Setup of Operations; Shared Services; Technology; HR & Risk capabilities for a top-10 MFI (with 1.2M customers and book-size of INR 2,000 CR) that has recently been accorded Small Finance Banking license by RBI;
IDFC Bank - Stabilize critical post-launch operations & technology imperatives for a universal bank launched late-2015 (with a book-size of INR 53,000 CR);
Vastu Housing Finance – Define & design the Digital Blueprint for a housing finance start-up venture (backed by a USD 1B private equity fund and eminent bankers of the country);
Delta Airlines – Strategic advice on Technology Transformation & Global Ops & Tech Delivery for a leading US-based global airline (operating 5,400 daily flights carrying 130 million passengers annually across 334 destinations in 64 countries & 6 continents with a fleet of 822 aircraft)
Mecklai Financial / Digital – Setup of a Digital Subsidiary for a leading B2B FX treasury risk management company (operational for 25+ years with 750+ active corporate relationships);

CAREER ACCOMPLISHMENT HIGHLIGHTS
As Group CIO for State Bank of Mauritius: Defined and steered multi-year group-wide strategies including Business – Process – Technology transformation spanning banking, non-banking, group re-structure, shared services centralization, risk management & channel enrichment - linked directly to the group’s medium-to-long term regional & domestic growth aspirations.
As Regional CIO (India & Indian Ocean) - Global Retail and Commercial Banking for Barclays Group: Setup, integrated and managed technology capability from ground-up catering to all business-lines, to support the fastest growing business franchise in the region, while also leading key technology mandates across the Emerging Markets franchise. Was nominated among the top-6 global technology leaders across Barclays globally, and consequently led the Global Innovation Council for the bank.
As SVP & Head of IT Global Delivery Centre of Expertise (India) for Bank of America: Managed offshore IT application delivery - maintenance & testing capabilities for all US lines of business. Championed the business case and program mandate to setup captive IT initiative, delivering niche – proprietary – competitive advantage related solutions to all global lines of business. Recognized with the Chairman’s award for innovations and efficiencies championed.
As Director for Financial Services & Insurance Practice for a US$7BB American Financial Group Subsidiary (Great American Financial Resources Inc.): Developed and executed IT strategic plans to expand external business, including enrichments to their Global Technology & Operations Delivery program and a merger between American and Canadian credit union companies.
As Delivery Leader for Technology Projects at ANZ: Defined and executed offshore delivery adoption strategy for ANZ Institutional and Business Banking (IBB) technology, eventually managing the IBB IT-back-bone.

With specialization in Financial Services Technology & Operations, Sri brings in best-in-class expertise to improving execution DNA for organizational performance, process improvement & proactive risk management, steer & quality assurance for complex cross-functional & mission-critical programs, research & analytics and developing human capital for sustainability. His core competencies include strategy definition & implementation, business aligned technology models, global sourcing & delivery governance and large scale program management, backed by sound technical foundation.

He possesses a Bachelor's degree in Computer Science Engineering from Karnataka University, India and an Executive Masters in International Business from Indian Institute of Foreign Trade. He is a member of Computer Society India and Association of Professional Engineers, Scientists & Managers of Australia. He is actively involved with the community – through guest lectures at leading business & technology schools and participation in community activities related to education. He has been featured in the media on numerous occasions, where he has commented on varied subjects like Channel Integration Strategy, Mobile & Digital Banking Channels, Technology ROI realization for financial services, Cloud Computing for Banking and Intelligent Information Infrastructure.<br>