The document provided an overview of a Misys BankFusion analyst and investor event. Key points included:
1. BankFusion was presented as a new core banking solution from Misys that allows flexibility and cost reduction for banks.
2. Industry analysts views on BankFusion highlighted its potential as a modern banking system and highest integration score.
3. The event outlined BankFusion's strategic focus on internal renovation of existing Misys customers and providing an external renovation platform for other legacy systems.
4. Customer examples demonstrated BankFusion upgrades from Bankmaster and Equation as well as a new implementation at TIME Bank.
1. Misys BankFusion
Analyst & Investor Event
Wednesday 3rd March 2010
Deutsche Bank
Winchester House
1 Great Winchester Street
London, EC2N 2DB
experience, solutions, results 1
2. Forward looking statements
This communication contains forward looking statements. Those forward looking statements include
all statements other than those made, solely with respect to historical facts. Forward looking
statements may be identified by words such as believes, expects, anticipates, estimates, projects,
intends, should, seeks, future, continue, or the negative of such terms, or other comparable
terminology.
In addition, statements made in this communication about anticipated financial results, future
operational improvement, and the results of the regulatory approvals, are also forward looking
statements. Such forward looking statements are subject to numerous risks, uncertainties,
assumptions and other factors that are difficult to predict, and could cause actual results to vary,
materially, from those expressed in or indicated by them. Factors that could cause actual results to
differ materially include but are not limited to legislative, regulatory, political and economic
developments, changes in competitive and market forces, further exchange and interest rates,
changes in tax rates, and future business combinations, or disposals.
Some of the central risks faced by Misys are set out in the company’s most recent annual report.
Misys undertakes no obligation to revise or update any forward looking statement or to make any
other forward looking statement, whether as a result of new information, future events or otherwise.
Misys is not responsible for updating the information contained in this communication beyond the
published date, or changes made to this communication by wire services or internet service
providers today.
experience, solutions, results 2
3. Agenda
1 Exploiting our Unique Position in the Financial Services Market
Mike Lawrie, Misys CEO
2 Banking Market Assessment: The challenges of legacy banking systems and routes to modernisation
Don Free, Gartner
3 BankFusionTM: A Radically New Way to Solve Operational Challenges
Peter Scott, Misys BankFusion Solutions Management
4 BankFusionTM Customer Update
Guy Warren, EVP, Misys Solutions for Banking
Including:
Why Actinver chose Misys
Alejandro Ramos, Actinver CTO
Refreshment Break
5 BankFusionTM Go to Market strategy
Peter Scott, Misys BankFusion Solutions Management
6 Partnering with Misys
Rashik Parmar, IBM and Stuart Drew, HCL
7 How BankFusionTM will Change Misys’ Financial and Business Model
Stephen Wilson, Misys VP Group Finance
8 Summary and Question & Answer Session
Mike Lawrie, Misys CEO
Drinks and Canapés
experience, solutions, results 3
4. Key messages
We have a strong installed base - our business
challenge is to leverage this base
The first new core banking solution for Misys in over 7 years.
BankFusion allows Misys to compete in the Unix space
opening up 70% of the new business market
Allows us to upgrade our installed base over time whilst
minimising risk to our customers
Building an eco-system of partners to help take
our proposition and capability to market
Over time, BankFusion will fundamentally change
the financial characteristics of Misys’ Banking
business
experience, solutions, results 4
5. Leveraging the installed base
Installed base of Significant cross-sell
1,200 customers opportunity
Application Customers
Core Banking 510
Treasury and Capital Markets 370
Trade Services 120
Transaction Confirmation Matching 380
Other 150
1,200 customers Multiple products (300)
120 countries ALL 1,230
Tier 4 banks right up to tier 1
BankFusion creates new initial licence, professional services and
maintenance events
experience, solutions, results 5
6. Responding to changing customer needs
New World BankFusion enables banks to:
Capital preservation & cost Increase flexibility, adding new
reduction functions and components while
lowering operating costs
Co-ordinated online, mobile, call
centre, branch Remove the risk of moving to new
systems through our renovation
approach
Increased regulation
Rapidly reconfigure business
processes
Ability to change Business
Processes quickly
Quickly respond to changing
Fast automation of new Banking market conditions and
products lowering risk opportunities
Dependable Affordable Scalable
experience, solutions, results 6
7. BankFusion - Transforming the Misys Banking business
• Leveraging and deepening our relationships with customers to
increase the value we deliver
• Catapulting Misys into a technology leadership position
• Dramatically expanding our reach in new markets through our
partnership network
Over time, BankFusion will transform Misys Banking into an
organic growth business
experience, solutions, results 7
8. 2 The Industry Analyst View
The challenges of legacy
banking systems and routes
to modernisation
Don Free, Research Director
experience, solutions, results 8
16. 3 BankFusion: a new way to run a bank
BankFusion brings speed,
simplicity and flexibility to
banking processes
Peter Scott
BankFusion Solutions Management
experience, solutions, results 16
17. What makes BankFusion unique?
Applications Universal Banking
Shared Modules
• Fully process-driven core
banking solution gives high
flexibility
• BankFusion Workbench
graphical design time
Components Such as: accelerates development at a
• Interest Accruals lower cost
• Charges
• Amortisation Rules
• Use of Components
makes adapting business
process to desired workflow
BankFusion BankFusion BankFusion simple
Workbench Platform Server
• BankFusion Server
automated code
Design Run
Time Time
generation saves time and
expensive IT resources
experience, solutions, results 17
18. BankFusion builds banking business processes
• Over 30 years of banking
domain knowledge
• Product Composer
assembles banking products
from a library of building
components
• Takes process models and
creates business
applications from them
Using building block components accelerates development
experience, solutions, results 18
19. Visual design environment - Product Composer
• Financial components and
activity steps assembled
into business workflow
• Can be used by Business
Analysts as well as
developers
• Freedom to focus on
business content
Cash Deposit
Transaction
Capture
New business requirements rapidly deployed
experience, solutions, results 19
20. BankFusion solves banks’ challenges
COO CIO CEO
Optimise customer Raise flexibility Increase sales and
relationships grow profitably
Challenges
Reduce expenses, Future proof the Differentiated
streamline processes system services based on
single customer view
Manage risk Easier localisation Fast response to
market opportunities
BankFusion has unique attributes to address these issues
Process Driven Automated Code Product
Application Generator Composer
experience, solutions, results 20
21. Industry Analysts rate BankFusion technology
“Business process-enabled core systems unlock banks’
potential to drive more aggressive and sustainable growth.”
“BankFusion provides updates that are error free… a true
cost of ownership advantage.”
“Institutions are no longer constrained by arcane, restrictive,
time-consuming and horribly complex practices… far
greater degree of business control and ownership.”
“… has significant potential as a truly modern banking
system… more effective than existing monolithic banking
systems.”
“… highest score on depth of integration.”
experience, solutions, results 21
22. How BankFusion solves operational problems
Scenario demonstration
Using the Product Composer, we show how
BankFusion can be used to rapidly respond to
changing business requirements
experience, solutions, results 22
27. 4 strategic markets for BankFusion
Internal
Universal Renovation
Banking
BankFusion
Platform
External
Industry
Renovation
Platform
experience, solutions, results 27
28. BankFusion as External Renovation technology
Shared Modules such as
Loan Origination, Customer
Acquisition, Branch Solution
Common Components such as
Interest Accrual, FX calculation
rules, working days calculator
BankFusion Platform
Design-time and Run-time
Legacy Core Banking Systems
In-house developed
Moribund 3rd party solutions
Products acquired but not evolving
experience, solutions, results 28
29. 4 strategic markets for BankFusion
Internal
Universal Renovation
Banking
BankFusion
Platform
External
Industry
Renovation
Platform
experience, solutions, results 29
30. BankFusion - Disruptive industry platform
• BankFusion adoption as an industry
standard for financial industry
developers
• Leveraging Misys’ leading market
share in the banking applications
market
• Misys opens up its community to 3rd
party developers and showcases their
solutions
• Option to ‘white-label’ core banking
for regional developers to add and
support compelling local features
experience, solutions, results 30
31. 4 BankFusion customer update
BankFusion
customer update
Guy Warren
EVP, Misys Solutions for Banking
experience, solutions, results 31
32. Customer proof points
Upgrades New system Renovation
TIME Bank
Internal
Universal Renovation
Banking
BankFusion
Platform
External
Industry
Renovation
Platform
experience, solutions, results 32
33. Bankmaster customers upgrading to BankFusion
Universal Banking
Internal
Universal Renovation
Banking
BankFusion
Platform
Profile
• Fastest-growing Bank in Tanzania
Industry
External
• 700,000+ accounts
Renovation
Platform
Requirements
• Bankmaster replacement
• Ease of migration
• Latest technology to underpin business
• Improve customer service
Status
• User Acceptance Testing completed with positive
performance
• Go-live scheduled March
experience, solutions, results 33
34. Equation customers selecting BankFusion Equation
Internal
Renovation
Universal
Banking
Profile
BankFusion
Platform
• Long-standing Equation customer
• Almost 900 branches
External
Industry
Platform
Renovation Requirements
• Expansion across domestic and international network
• Best technology to support growth ambitions
• Agility and innovation to maintain competitive edge
Status
• Currently implementing in Head Office
• Scheduled roll-out to international branch network
throughout 2010
experience, solutions, results 34
36. Who is Actinver?
• One of the fastest growing financial services
groups in Mexico
• Expanding from Brokerage and Fund
Management to Banking
• 1,500 employees
• 72 Branches
• 200,000 Customers
• Daily transactions: 25,000
• Total assets: MXN $150 billion
experience, solutions, results 36
37. What were we looking for?
• Deposits, Loans, Channels - Branch through to
Back Office
• A customer-centric solution to improve the customer
experience
• Customisation, not just changing parameter settings
• Most technically advanced Universal Banking
solution on the market
• A platform on which to base our future growth
• A long-term partnership with the vendor
experience, solutions, results 37
38. Why Actinver chose Misys
• Revolutionary process-oriented approach
• Capability to meet complex regulatory reporting
requirements
• Flexibility of the Workbench
• Integration approach
• Delivery capability, professional services and a
proven track record
experience, solutions, results 38
39. 5 BankFusion: a new way to run a bank
We will bring to market a
range of BankFusion
applications & tools to
modernise banking systems
Peter Scott
BankFusion Solutions Management
experience, solutions, results 39
40. 4 strategic markets for BankFusion
Internal
Universal Renovation
Banking
BankFusion
Platform
External
Industry
Renovation
Platform
experience, solutions, results 40
41. BankFusion Universal Banking
2009 onwards Who will we sell it to?
EXISTING CUSTOMERS NEW CUSTOMERS
Internal
• Bankmaster customers • Domestic & Regional retail
Universal
Banking
Renovation • With growing business banks replacing core systems
aspirations • Tiers 3 & 4
• With functional and account • Legacy systems, stretched by
BankFusion volume limitations. competitive pressure and
Platform
regulatory burdens
External
• New ‘start up’ banks
Industry
Renovation
Platform
Why will we win?
• Low risk ‘upgrade’ for existing Bankmaster customers
• Next Generation build and design
• Lower Total Cost of Ownership
• Excellent business agility
experience, solutions, results 41
42. Internal and External Renovation
2010 onwards Who will we sell it to?
EXISTING CUSTOMERS NEW CUSTOMERS
Internal • Equation and Midas users • Monolithic legacy
Universal
Renovation • Want to introduce more • Tiers 2 & 3
Banking flexible business processes • Require functional evolution
• Receptive to Misys new • Need better process efficiency
module Roadmap
BankFusion
Platform
• ‘Rip and Replace’ too risky
Industry
Platform External
Renovation
Why will we win?
2011 onwards
• Low risk alternative to ‘Rip and Replace’
• Raises the return on existing investments
• Unique technology and business proposition
• Business Roadmap from Shared Modules
experience, solutions, results 42
43. Extending the BankFusion platform
Internal
NEW CUSTOMERS
Universal Renovation
Banking
• Application partners build software
BankFusion
using BankFusion technology
Platform
• Misys vets and showcases 3rd party
External
applications
Industry
Renovation
• Local features from 3rd parties in ‘white
Platform
labelled’ core banking offer
• Based on success in other segments
and unique proposition
2013 onwards
BankFusion will have a disruptive market impact when used
by 3rd parties
experience, solutions, results 43
44. BankFusion Services - enhancing value to our customers
Business
Process
design Consultative
engagement
Deeper
• Focus on business customer
workflow relationships
• Best Practice in • Greater role in business
transformation
Banking processes
• Misys Global Centre • Design as well as • Continuing business
implementation
of Excellence partnership
• Misys / Partner led • Early stage contribution • Increased cross-sell
to solution definition
and up-sell over time
• Greater share of wallet
experience, solutions, results 44
46. 6 Partnering with Misys
Partnering with Misys
Rashik Parmar Stuart Drew
CTO, IBM Distinguished Engineer SVP Financial Services
Member, IBM Academy of Technology Europe
experience, solutions, results 46
47. 7 Strategic and financial impact
What is the value of this
opportunity to Misys?
Stephen Wilson,
VP Group Finance
experience, solutions, results 47
48. Value-based pricing model
• Pricing based on components and Applications Universal
Banking
functions selected by customer
• Prices scaled according to
volumes, e.g. accounts, user
seats
Modules
• Multiple ILF events per customer
over time
– Platform workbench
– Modules
– Applications
• Incremental Recurring Licence Platform
Fee (RLF)
experience, solutions, results 48
49. Revenue Model assumptions: 5-year horizon
Illustrative assumptions
1
Segment ILF event Market Total ILF Services : RLF: ILF
2
Tier Deals ILF ratio ratio
Universal Bankmaster replacements 3,4 100-110 £200-600K 1.0-1.5 1.8-2.4
Banking & Open Market
Internal Workbench Licences & 2,3 120-130 £200-500K 1.0-1.2 1.8-2.4
Renovation Application Modules for
Equation & Midas customers
External Application modules & 2 20-25 £500K-£1m 1.3-1.7 1.8-2.4
rd
Renovation Developer Licences for 3
party applications
1 ILF reflects typical ranges for 10-year term licenses sold to banks in the target tiers shown. In practice, pricing will vary
more widely towards the extremes of our target markets and also according to volume-based price grids
2 Reflects the RLF generated over the life of a typical 10-year licence contract arising from an ILF deal, under a range of
RLF rates, from basic service up to premium service
experience, solutions, results 49
50. Progressive adoption of BankFusion
Internal Renovation Cumulative BankFusion adoption
Customers
Migration of Equation customers from 160
2010/11 and Midas customers from 2011/12 Internal
140
Renovation
120
Universal
Banking
100
Universal Banking
Early impetus from migrating Bankmaster 80
customers and selective competitive wins
60
40
External
20 Renovation
External Renovation
0
Platform sales to 3rd party application 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15
customers materially from 2012/13
250 adopters over the next 5 years
experience, solutions, results 50
51. Potential incremental revenue from the BankFusion strategy
• Initial Licence Fee (ILF) growth as Incremental BankFusion revenue over 5 years
Based on illustrative assumptions
adoption progresses
£m £250m
• Growing Professional Services 250
29
Recurring
Licences
multiplier as more complex projects
are tackled over time 200
£183m
Professional
• Recurring Licence Fees (RLF) add 150
81
113 Services
progressively to existing base
100
• Normal margin framework but re-use 44
of software components offers Initial
50 109
upside potential over time Licences
58
0
Banking Division BankFusion
2008/9 2010/11 - 2014/15
Potential to add 6-8% per year
compound to the revenue
base over 5 years
experience, solutions, results 51
52. BankFusion brings operational benefits to Misys
Higher returns Removal of
on investment product silos
8 1
Re-use of business &
Fosters creativity in technical resources
product development 7 2
MISYS
BENEFIT
Technology refresh:
Simpler 6 3 business agility & new
cross-sell functionality
5 4
Process-based client Accelerating
consultation functional roadmap
experience, solutions, results 52
53. 7 Strategic and financial impact
How will BankFusion
change Misys?
Mike Lawrie, CEO
experience, solutions, results 53
54. Key messages
We have a strong installed base - our business
challenge is to leverage this base
The first new core banking solution for Misys in over 7 years.
BankFusion allows Misys to compete in the Unix space
opening up 70% of the new business market
Allows us to upgrade our installed base over time whilst
minimising risk to our customers
Building an eco-system of partners to help take
our proposition and capability to market
experience, solutions, results
Over time, BankFusion will fundamentally change
the financial characteristics of Misys’ Banking
business
54
55. BankFusion takes Misys into the Leadership phase
Get Fit Win More Lead
1 - 2 years 2 - 3 Years 3 - 5 Years
Complete BankFusion
TIME Bank
Technology Leadership
Sales Leadership
Services Leadership
experience, solutions, results 55