FINNOVA IN FIGURES

Swiss banks trusts in the Finnova Banking Software

locations

partners

customer banks

employees

users at banks and operating partners

e-banking clients

CHF balance sheet total of the Finnova banks

application possibilities of our software through an individual parameterisation and thanks to the choice of different operating models

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400

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400 000

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SMARTER BANKING – SWISS MADE

SOFTWARE FOR SUCCESSFUL

BANKING

3

FOREWORD

DEAR READER

Many thanks for your interest in Finnova. With around 100 customer banks in Switzerland relying on the Finnova Banking Software, we are the largest provider of banking software in the Swiss financial centre. We support our banks and operating partners in realising growth in the banking sector in challenging times thanks to efficient and innovative IT solutions that are compliant with regulatory requirements: «Smarter banking» with Finnova - that is what we stand for.

Our Finnova Banking Software covers the needs of various bank types, ranging from universal and retail banks to private banks through to trans-action banks. Customer banks operate the software directly or via one of our operating partners. It is particularly suitable for BPO providers that handle outsourced processes for several banks in parallel. All of our customers bene-fit from the software’s extensive functional breadth and depth with the com-paratively lowest total cost of ownership (TCO) in the industry. With our ser-vices offer, we provide our customers with access to our expertise and thus enable the optimal use of our software.

In the future, we wish to offer an even broader spectrum of innovative functionalities for end-to-end banking with our platform. Our customers and partners should be able to choose the combination of Finnova solutions, part-ner solutions or also individual developments that is optimal for them in each case. With this strategic approach, we wish to position our platform on the market attractively in the long term by supporting openness and flexibility in the connection and integration of third-party systems with interface prod-ucts and services.

Finnova has invested heavily into the further development of the product and will continue to do so. We are 100% self-financed and have a solid own-ership structure with shareholdings of strategic partners, customer banks and the management. These framework conditions make us a reliable and stable partner.

Our business is a knowledge business. The know-how and experience of our employees are our most important capital. In order to meet the challenges of digitalization and industrialisation in the banking sector, we are continu-ally on the lookout for new and smart recruits. With our focus on agile soft-ware development, we offer an exciting work environment with a modern infrastructure.

With this brochure, we provide you with an initial overview of our Finnova world. You can find more information about us, our products and our services and how to contact us on our website www.finnova.com. We look forward to hearing from you!

Best regards

Hans Zehetmaier Charlie MatterChairman of the Board of Directors CEO

As a manufacturer of banking software, we are working at the in-terface of two of the most dynamic economic sectors: IT and bank-ing. We offer banks and operating partners in this environment effi-cient and at the same time innovative IT solutions , thus enabling «smarter banking».

7 8

ABOUT FINNOVA Finnova is a leading provider of banking software in the Swiss financial centre. In co-operation with selected partners, we offer innovative and efficient end-to-end solutions that allow our customers to be successful in banking.

Our Vision We enable banks, operating partners as well as selective in-termediaries, together with third-party providers, to cope with the dynamics and challenges of industrialisation and digital-ization.

We wish to establish Finnova software solutions as a lead-ing reference for end-to-end banking.

Our Roots Our success story began in 1974 with the development of the software FIS. At the beginning of the eighties, various banks joined forces in the FIS user bank pool.

From this organisation, finis AG for banking software emerged in 1999. It developed an integrated modular solution for universal and private banks. In autumn 2003, this assign-ment was fulfilled and finis became Finnova AG, which con-centrated on the further development and marketing of its standard solution, the Finnova Banking Software. Only a few months later, the first banks opted for the new Finnova solution.

In summer 2005, the parallel operation of several banks on one single installation in a so-called multi-tenant tower was realised, which enabled further efficiency gains. Today more than 100 universal and private banks from Switzerland, as well as from neighbouring countries, are among our customers. We have evolved to become one of the leading banking software manufacturers in the Swiss financial centre.

Our Organisation Finnova is a limited company under Swiss law. Various stake-holder groups are represented in our shareholder base, in which all owners have a long-term commitment and share the company vision. This makes us a reliable partner. Our so-lidity can be seen in our 100 % self-financing level.

The main shareholder of Finnova AG is the German IT con-sulting and system integration company msg systems ag that forms the central core of the independent group of companies msg. As part of the msg group, we have access to this glob-ally designed network that includes over 5,000 experts and offers strategic consulting as well as value-adding IT solutions.

In addition, a total of seven customer banks, the strategic partner Swisscom and the management have a share in Fin-nova AG. This balanced structure, which is also reflected in the Board of Directors, incorporates the interests of the most important stakeholder groups.

The Executive Board comprises the CEO and the heads of the five business units. Our Executive Board members look back on many years of experience in the IT and financial sec-tor. Some of them have held leading positions at internation-ally active companies (see also www.finnova.com).

9.0

51.4

msg systems ag

Management of customer banks

Management

Swisscom (Schweiz) AG22.8

16.8

Board of Directors of Finnova AG

Executive Board

DevelopmentProduct Management

BusinessDevelopment & Sales Services

Corporate Development &

Finance

Shareholder base of Finnova AG

109

«Smarter banking» with Finnova, this is our claim. We work hard to be able to honour this promise made to our customers and

partners, also in the future.

FINNOVA BANKING SOFTWARESuccessful business models in banking will be determined more than ever by the in- telligent use of technology in the future. The industrialisation of banking, digitaliza-tion and growing compliance requirements are the driving forces behind this evolu-tion. With our product, Finnova Banking Software, we offer banks efficient and at the same time innovative IT solutions in this interplay.

Product suites The Finnova Banking Software is divided in a user-oriented way into four suites. They are actual product groups and cover the three strategic fields of action of end-to-end banking. Our Channel Suite and Front Suite offer banks the Systems of En-gagement.

With the Channel Suite, we directly focus on the chan-nels to the end clients of the banks. The Channel Suite primar-ily deals with the self-service of banking services. For this, a consistent user experience across the various channels is paramount.

The Front Suite comprehensively covers the requirements of the client advisors. With the modular, role-based and pro-cess-controlled Client Advisor Workplace, the client advisor maintains an overview of all important information at all times, can launch client dialogues and refers to IT-supported pro-cesses for advisory discussions in order to act efficiently and in conformity with the rules.

The Management Suite offers banks the Systems of In-sight, i.e. instruments for bank and risk management. It bun-dles analyses, reports and the control channels for the bank. Furthermore, its functionality addresses the ever-increasing compliance requirements in the banking sector.

The comprehensive end-to-end software platform for retail, universal and private banks Successful business models in banking will be determined more than ever by the intelligent use of technology in the fu-ture. The industrialisation of banking, digitalization and grow-ing compliance requirements are the driving forces behind this evolution. With our product, Finnova Banking Software, we offer banks efficient and at the same time innovative IT solutions in this interplay.

We support banks across three strategic fields of action:

>> The Systems of Engagement address customer experi- ence, mobility and context-oriented services and infor- mation, with the aim of reinforcing the ties of clients to the bank and its services >> The Systems of Insight provide analyses concerning clients, products and markets as well as in-house procedures, with the aim of continually introducing im- provements and innovations. >> The Systems of Records stand for structured and in- creasingly unstructured data storage, and this with sharply rising volumes, great speed and increasing process orientation, with the aim of providing this data in turn to the Systems of Engagement and the Systems of Insight.

With the Finnova Banking Software, we offer a comprehensive software platform across all three fields of action. In doing so, we seamlessly combine Finnova solutions with products and solutions of our partners and customer banks. The openness and flexibility with regard to third-party systems and individ-ual developments play an important role here.

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Finnova Banking Software

The Expert Suite is the workplace for the middle and back office as well as for our BPO part-ners. It is and remains the backbone of the Finnova Banking Software and ensures a consistent data storage with its Systems of Records. The modular structure of the Expert Suite covers all domains such as payment transactions, financing, investments, portfolio management, client and advisory modules. The parameterisable process management guarantees the banks an ef-ficient and individual integration. The focal point of the Expert Suite lies in the quick and com-prehensive processing of all business cases and the unrestricted, role-based access to all data.

Scalability und multi-tenant capabilityThe uniqueness of the Finnova Banking Software is also demonstrated in terms of scalability with the BPO providers. The multi-tenant capability devised from the ground up is the foun-dation stone for the exceptionally favourable total cost of ownership (TCO) in the Finnova multi-tenant setup. The multi-tenant capability enables the shortest onboarding times and migration efforts for new tenants in an existing group.

Compliance ensuredThe comprehensive regulatory requirements to be implemented within a tight deadline are analysed with the participation of the corresponding know-how carriers and implemented into the Finnova Banking Software. This way, our customers are safe in the knowledge that they are supported by an absolutely rule-compliant banking software. Compliance is consistently ensured across all suites and their respective products.

Finnova banks are at the top : The favourable total cost of ownership (TCO) of our software is ultimately reflected in an attractive cost-income ratio of the bank. In Switzerland, this effect is reflected year after year in the Retail Banking Study of the Lucerne University of Applied Sciences and Arts IFZ. Here, the Finnova banks dominate the top ranks. Among the top 15, approx. 80% of the positions were most recently held by Finnova banks.

Channel Suite

E-Banking Financing

Mobile Banking

IndependentInvestment Advisory

Branch & ATM

Front Suite

Client RelationshipManagement

Client Advisor Workplace

Payments & Cash Management

Products & Services

Management Suite

ComplianceControl

Investment Mgmt.Orders & Execution

Risk Control

Distribution Control

Financial Accounting

Finnova Control ®

Expert Suite

Trading & Settlement

Taxes, Reporting, Reconciliation Ex

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Finnova Core

Integration & Business Services

Payments

Financing

Investments

Pension Provision

Bank Management

Compliance

Processes

Client Advisors

Bank Clients Bank Managers

Middle & Back Office, BPO Experts

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Various operating models thanks to an open partner networkIn practice, different operating models and integrations of third-party solutions have become established. We support everything, from individual installations to multi-tenant towers with a parallel operation of more than 40 banks, from cost-ef-fective standard solutions to the implementation of complex

special requirements with third-party solutions, for example in the private banking segment. Furthermore, the Finnova Bank-ing Software is increasingly used by BPO providers as a basic system for the efficient provision of business services. As a re-sult, it is also becoming an operating system for BPO platforms.

Multi-tenant towers based on the Finnova Banking Software The currently largest multi-tenant tower based on our software is operated by Swisscom with over 40 banks. Swisscom provides banks with a fully integrated banking solution for core busi-ness that is linked to the outside world. The banks can process their entire banking business via this business platform.

The Säntis group, consisting of the five cantonal banks of Appenzell, Glarus, Nidwalden, Obwalden and Uri, has implemented a common tower that enables the banks to operate in parallel and have shared use of BPO services. Here, we ensure application management and act as software provider.

Graubündner Kantonalbank has implemented a multi-tenant tower on which it also offers BPO services to a smaller private bank subsidiary in parallel.

In 2014, as a next step, we also successfully implemented a multi-tenant tower between two data centres. The result here also: higher efficiency and lower costs.

The Finnova Banking Software as the backbone of industrialisation in banking The industrialisation of banking is in full swing. Many banks are optimising their cost base by outsourcing parts of their value-added chain to BPO providers, thus reducing their processing costs and making them fully variable. The architectural strength of the Finnova Banking Soft-ware enables its use in the industrialisation of complex banking processes today.

Therefore, for example, our software forms the backbone of the processing centre of Swisscom for business service provision (BSP), for example in the areas of payment transac-tions and securities transactions. From a technical point of view, this means that Swisscom can, by means of an adapter, also connect a bank on another core banking solution to the pro-cessing platform based on the Finnova Banking Software. Thanks to the adapter that Swiss-com developed in close cooperation with us as a strategic partner, this is possible without migration. A current example for this is Zürcher Kantonalbank, which will process its payment transactions via this BSP solution from 2016 onwards.

OPERATING MODELSIn times of eroding margins and increased cost pressure, a low total cost of ownership (TCO) is important for the competitiveness of banks. For this, the selection of the right and suitable operating model of its IT solution plays a central role for the bank.

GKB SÄNTIS SWISSCOM

FULL -SERVICEBANK

43 x

SOFTWARE PROVIDER

FINNOVALICENSE

ENTRISBANKING RESELL

5 xSOFTWARE PROVIDER

FINNOVALICENSE

2 xSOFTWARE PROVIDER

FINNOVALICENSE

AMINVENTX

BPOGKB

ITOINVENTX

5 x

ITOECONIS

BPOFOR EACH OTHER

AMFINNOVA

AMSWISSCOM

BPOSWISSCOM

ITOSWISSCOM

Reference models

1615

SERVICESKnow-how and experience are key factors for successful IT projects: Offering a wide range of services, Finnova enables banks, BPO providers and implementation partners to tap into the internal know-how and decades of experience in project planning, pro-ject realisation, implementation and operation of the Finnova Banking Software. This saves time and minimises project risks. Our service offer is divided into five areas.

Application Management Application Management is the central point of contact for the supported banks for all questions surrounding the Fin-nova Banking Software and all connected non-core systems. It guarantees efficient use with the latest functionalities and, together with the hosting partners, the highest possible per-formance of the Finnova platform. We regard Application Man-agement as a central knowledge and experience base which we consistently integrate into our software development.

Data IntegrationOur core competence is our specialist knowledge and experi-ence in dealing with client and parameterisation data. Consist- ent data collections are of the utmost importance for banks and external application managers. Furthermore, expertly cleansed data collections contribute to a consistently high performance of the Finnova Banking Software.

ConsultingOur Consulting team combines know-how and practical ex-perience concerning the Finnova Banking Software. If effec-tiveness and efficiency are important to you, no doubt you will draw on our resources. We support our customers and partners in the areas of future payment transactions and com-pliance, we advise them on the development of intelligent digitalisation strategies and accompany them in the setup of high-quality BI and DWH solutions.

Operations and Support Our strategy is to continually optimise the existing Finnova Banking Software with regard to quality and functionalities. Various measures, such as automated testing, redefinition and improvement of processes and intensification of end-to-end quality controls, are continually being pushed forward. Further-more, we offer technical support for questions surrounding the system architecture, the sizing of new systems and per-formance analyses, and we accompany our operating partners in the case of technical conversions and the setup of new en-vironments. And if things heat up, our customers can rely on our multi-level support process.

Academy The objective of hands-on training and further training is for you to feel good and secure when using the Finnova Bank-ing Software thanks to our know-how and experience as a manufacturer. We help to obtain and increase competences and market values. By means of the proven «blended learn-ing» method, we combine the advantages of e-learning with classic classroom-based training. In self-study, our course participants become familiar with important parts of our Fin-nova Banking Software on our electronic learning platform. In exciting, stimulating and target group-oriented presenta-tions, training sessions and workshops, our specialists impart general and in-depth knowledge in the various disciplines of the Finnova Banking Software.

Successful IT projects are achieved on the basis of know-how and experience. Offering a wide range of services, Finnova enables banks, BPO and implementation partners to tap into the internal know-how

and decades of experience from the Finnova projects and the operation of the Finnova Banking Software.

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OUR CUSTOMERSWe support banks in realising growth in banking. Since 2003, we have continuously evolved to become a leading provider of banking software in the Swiss financial centre. With around 100 customer banks, the Finnova Banking Software is the most widely used banking software in Switzerland. Our customers come from different segments.

Universal banks The focus of universal and retail banks is on increased effi-ciency and broad functionality. We support them with our highly automated software, highest STP rates and efficient processes. The Finnova Banking Software standard solution already offers a very broad functionality for universal and re-tail banks that can be individually extended, notably through our open partner ecosystem.

Private banks The change in private banking with growing compliance re-quirements, margin pressure and changed client needs results in new business models. We support the private banks with our efficient and future-oriented solutions.

Transaction banks The most efficient processing possible of payments, securi-ties, foreign exchange and loans for other banks is the core competence of transaction banks. The Finnova Banking Soft-ware helps them achieve this with maximum scalability, high-est STP rates and maximum automation.

BPO/BSP providers Efficiency in banking is achieved today by breaking up the value chain and outsourcing standard processes to BPO/BSP providers. The Finnova Banking Software is ideally suited as the backbone for the industrialisation of banking processes. In addition, it offers a user platform especially designed for BPO providers, with which processes for several banks can be handled simultaneously.

>> Valiant Bank AG

>> Clientis Banks

>> Migros Bank AG

>> Graubündner Kantonalbank

>> Freiburger Kantonalbank

>> Lienhard & Partner

Privatbank Zürich AG

>> Mercantil Bank (Schweiz) AG

>> Privatbank Bellerive AG

>> REYL & CIE S.A.

>> Finanz-Logistik AG

>> Swisscom IT Services AG

>> InCore Bank AG

>> InCore Bank AG

>> VZ Depotbank AG

[Extract from reference list]

19 20

OUR PARTNERS Smarter banking becomes possible if different and complementary specialists from various areas join forces. Therefore, we count on our open partner network. Regardless of whether service, product or technology partners, they all contribute significantly to the success of the Finnova Banking Software.

Service partners Our service partners support customers in the implementation and operation of the Finnova Banking Software. They take on different roles and have different core competences. These also include professional BPO/BSP and hosting services. Our customers can choose from several service providers. This is part of the embodied flexibility surrounding the Finnova Banking Software and its diverse Community.

Product partners The open software architecture enables us to integrate third-party systems into the Finnova Banking Software easily, quickly and cost-effectively. Our customers can thereby benefit from specific functionalities in the context of the software. In total, we have a contract and/or an interface agreement with over 50 product partners. All of them complement our Finnova Banking Software. Together, we thus create added value for our customers, for example with new functionalities, additional usability or quite simply also with a faster time-to-market.

Technology partners The technology partnerships enable us, as software providers, to develop innovative solu-tions. Thanks to a balanced architecture, we thereby offer our customers investment protec-tion at a high level.

AMSwisscom

Inventx

IBM Schweiz

SOBACO

Finnova

ProActive

ITOSwisscom

Inventx

IBM Schweiz

SOBACO

Econis

BPOSwisscom

InCore Bank

Finanz-Logistik

Our customers benefit from the extensive functional breadth and depth with the comparatively lowest total

cost of ownership (TCO) in the industry. Finnova’s service offer provides direct access to our expertise.

23

OUR FINNOVA COMMUNITYSystematic dialogue plays a central role in the Finnova Community. Through regular and structured exchanges with the market, our customers and our partners, we de-velop a comprehensive understanding of trends and perspectives in banking and can prioritise the requirements for the software and accompanying services on this basis. Our Community offers banks and partners the opportunity to actively help shape the Finnova Banking Software and the accompanying services.

The tradition behind itDialogue with our customers has a long-standing tradition. When determining which further developments should be implemented as a priority, our Community has proven to be an outstanding sparring partner.

Clear structures and responsibilitiesWith the structure of the Finnova Community panels, we guar-antee an effective and goal-oriented participation for all those involved. The Community is actively managed by the Commu-nity Master. Participation takes place by nomination. Custom-ers and partners have the following advantages:

>> High benefits that result from the focus of the panels on specialised banking processes and the lead by Product Management.>> Clarity with regard to the further strategic development of the Finnova Banking Software that is achieved through stringent functional and technological innovation.>> Broad-based discussion that assured through the various bank types and linguistic regions represented in the panels.>> End-to-end view that is made possible through the targeted involvement of BPO partners, application managers and data centre operators.

Practice Groups

Senior Manage-ment Level

Domain Expert Level

Top Level

Expert Panels

CEO Panel

Advisory Panel

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CAREERS AT FINNOVA At Finnova, you can make a difference. Many interesting tasks, exciting challenges, a modern infrastructure and modern development methods as well as a collegial atmosphere await you.

On the lookout for smart recruits As a leading manufacturer of banking software in the Swiss financial centre, we are among the high-tech companies pro-minently represented in the canton of Aargau.

Over the past 10 years, we have developed from a small to a medium-sized company. Today we employ around 400 specialists. Half of these work in software development, and the others are active in front-end-oriented positions such as Account and Partner Management, Consulting, Academy or in support-oriented service positions.

In order to face up to the challenges of the next 10 ye-ars, we are looking for smart recruits: well-trained employees who are used to working in a structured way, with experience in dealing with methods (development/analysis), who display an excellent team spirit and bring along the appropriate social skills. Together, we can thus achieve our ambitious objectives.

A modern infrastructure, interesting training and conti-nuing professional development possibilities, active support in management and specialist career planning and very good social security benefits are just a few of the advantages that we have to offer you as an employer.

With our focus on agile software development according to Scrum and SAFe, we offer an exciting work environment. For our product developments, we use state-of-the-art tech-nologies. Both experienced IT specialists and skilled banking experts as well as IT trainees have the opportunity to under-take interesting tasks with us. If you have a lot to offer both professionally and personally and would like to improve your skills, you are welcome to join us. We foster an informal, yet respectful, first-name basis culture. Therefore, we say to you already today: We are looking forward to having you!

We employ agile software development methods according to Scrum and SAFe and thus offer an

exciting working environment in the team.

Publication details

Publisher

Finnova

Visual implementation

BrandNew AG, Zürich

Text

Finnova

Photography

Kilian Kessler, Zürich

© finnova Bankware AG.

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SMARTER BANKING

finnova AG Bankware Merkurstrasse 65600 LenzburgSwitzerland

www.finnova.com info@finnova.com

T +41 62 886 47 47F +41 62 886 48 88