CGI's Steve Starace, SVP & BU Leader, U.S. Northeast explains how CGI’s solutions and services are addressing clients’ top priorities in the banking industry.

1. © CGI Group Inc. CONFIDENTIAL
Digital Payments
Digital Banking
Digital Government
Digital Energy
April 12, 2016
2016 CGI Global Analyst Forum
Digital Banking

2. 2
Steve Starace
SVP & BU Leader, U.S. Northeast
Protecting the Bank

3. Protecting the bank is a top priority
3
Retail Banking
1. Digital impact on marketplace
2. Changing customer expectations
3. Disruptive technology & competition
4. Importance of business intelligence
5. Regulation & control burden
Modernizing Run the Bank
Digitizing the Bank
Protecting the Bank
Wholesale Banking
1. Regulation & control
2. Data driven
3. Scalable platforms
4. Trade lifecycle digitalization
5. Focus on profitable business
Modernizing Payments
IT Priorities
EMBEDDED CYBERSECURITY
Reduce the Run Invest in Change Grow Revenue

4. CGI’s solutions and services are addressing clients’ top priorities
in the banking industry
4
High-end
consulting
IP30
Transformational
outsourcing
Change
Grow
Run
CGI’s Services & Solutions aligned to Banking Industry Priorities
Digitalizing
the bank
Payments
modernization
Protecting
the bank
Modernizing
“run the bank”
Future business model
per sub-industry
Strategy consulting
Agile development factories
Customer journey
digitalization
Digital omni-channel
Value-add services
Digital insight
Banking platforms
Standards consulting
Consulting at national and
bank levels
Payment SaaS
SaaS and BPaaS
SI / testing around
payment hubs
Systems integrator for
identified leading partners
Risk and regulatory data
governance and architecture
Real-time process monitoring
/ risk / reporting resolution
Regulatory reporting SaaS
Cyber protection (IP)
AML / fraud / KYC solutions
and platforms
Rules engines
Consulting assessment
and roadmap /
business case
Outsource and
sunset to generate funds
for change
Re-platforming and
application management
Enterprise re-architecting
and application portfolio
management
Disruptive technologies,
e.g., blockchain
IT intensive BPO
around IP
Real-time payments
Value-add services

5. Our IP helps clients accelerate the transformation from discrete to
globally connected digital
5
Global industry platform and
end-to-end solution
Global Digital
Transformation Solutions
Business platform for
large enterprises
Enterprise Digital
Transformation Solutions
Solves a mission-critical
business problem
Discrete Digital
Solutions
BESPOKE REPEATABLE

6. Protecting the bank against financial crime is costly and complex
Key challenges for banks
The financial crime landscape
• Ever more complex and sophisticated
• Regulators are not synchronized
• Transaction volumes are growing
The traditional approach is flawed
• Fraudsters continue to bypass and evade the
banks’ controls
• Silos of applications don’t drive the efficiencies
required
The costs are also growing
• Fines are increasing
• Complex to implement on legacy
• Reputation damage impacts share price, profits
and RoE
6
0%
16%
12%
8%
4%
ROE
15%
8%
- 7%
Pre-crisis
+ 3%
11%
2014 avg
6%
- 3% to -7%
15%
2017-2019
Increasing regulation is driving change
OFAC Fines in 2015
Further
regulation to
reduce ROE
next 3-5 years
Further restructuring and
transformation required
for banks to address
increasing regulation
Basel 2.5 & 3
reduced bank
ROE by 7% Banks
responded with
operational
efficiencies
$619M
$787M
$1.9BN
$1.45BN

7. CGI’s “protect the bank” capability through digital insights
is a differentiated market offering…
7
…delivered through the combination and investment of CGI IP
Command and Control Centre | CGI IP: Case Management
Intelligent self learning | CGI IP: ISL
BIG DATA
Sanctions Screening
CGI IP: Centaur
Know your customer (KYC) Suspicious activity Fraud
CGI IP: Hotscan
EMBEDDED CYBERSECURITY

8. CGI IP: HotScan
BENEFITS:
 Trusted solution working in 30
countries
 Filters 64% of the total value of
currencies traded globally
 Compliance with international
sanction laws
 Achieves high levels of STP
 Low levels of false positive
 Extensive client base - cross
industry
 Fuzzy matching with 24x7
operability
 Very high performance
 Future proof – to manage volumes
from new instruments
8
BIG DATA
EMBEDDED CYBERSECURITY
CGI IP: Hotscan
HotScan
Regulator Lists
e.g. OFAC, EU, UN, UK
HMT, MOF Japan, etc.
Internal Lists
e.g. Fraud, Credit
XML Lists
Flexible watch
list mapping
module
CSV & Excel
Lists
Flexible watch
list mapping
module
Good Guy
Lists
HotScan
Online
HotScan
Lookup
HotScan
Batch
HotScan
Case Manager
Transaction Screening KYC – Due Diligence Case Management

9. CGI IP: CENTAuR
9
LAYER 1FDS
CLIENT
L1S
L2S
Internet
WAF
L1S
L1S
FRONTEND
OTHER BACKEND
AND DWH
FRAUD ANALYTICAL AND
COMPETENCE CENTER
LAYER 3-5 FDS
CENTAuR Overview:
 Monitors account behavior across
single and multiple channels using
internal and external data
 Pre-defined rules to detect suspicious
(client or employee) activities and
transactions
 Ability to recommend modifications to
the model
 High-performance scalable
real-time risk engine
 Predictive Analysis Module
BENEFITS:
 High speed and real time
 Enables use on new instruments
– eg. Immediate Payments
 Flexible design enables rapid
implementation and integration
of Cyber, Case Management
etc.
 Can be utilized as a stand
alone solution
BIG DATA
EMBEDDED CYBERSECURITY
CGI IP: CENTAuR

10. CGI IP: Intelligent Self Learning (ISL)
10
ISL is the only solution to reduce false positives from the false-positive history
Business
Systems
Gateways
Business
Systems
Extract
ISL
Hits
Passes
Prioritised
False
Positives
Client
Screening
Manual
Review
?
0
2
4
6
8
10
12
14
Month
1
Month
2
Month
3
Month
4
Month
5
False Positives
Effectiveness
BENEFITS:
 Fully integrated with Hotscan
 Can work with other AML components
 Unique solution dramatically improves efficiency
 Enables compliance to focus on effectiveness
Prioritised
False Positive Reduction
PercentageHits
BIG DATA
EMBEDDED CYBERSECURITY
Intelligent self learning | CGI IP: ISL

11. CGI Services: Cybersecurity and Big Data
Cybersecurity: Baked in, not bolted on
 CGI has qualified Insider Threat assessors
 We run three accredited security certification facilities
 We have deep domain expertise
 CGI helps ensure that $170 billion+ dollars a day are
cleared through to the Canadian Payments Association
systems safely and securely
 Our local proximity model enables us to be onsite quickly to
manage an incident
Big Data Layer:
 Data2Diamonds is CGI’s methodology for design and
implementation of big data analytics solutions
 5,000 members globally serving clients in Big Data Analytics
 Lafayette Digital Center of Excellence as CGI continues to
invest in data services
11
BIG DATA
EMBEDDED CYBERSECURITY
CGI
Cyber
Security

12. Anti Money Laundering – Global Bank Customer
12
Client background
• Protecting the Bank from Sanctions violations
globally
• Volumes growing – 5m txns/day 100,000+
hits a day
• HotScan client for 15 years
• Intelligent Self Learning (ISL)
• Managing false positive volumes
• HotScan for AML & KYC
• Centralised case management
• ISL driven down false positives to circa 3%
• ISL increases efficiency without impact on
effectiveness
• Future - Protect the bank from insider threat
& cyber crime
CGI solution
CGI’s sanctions screening drives control and
global efficiency gains for the Bank in fighting
money laundering crime Regulatory
Compliance
Digital Data
Insights
CybersecurityDigital
Transformation

13. 13
Legacy silo transformation CGI is bring a holistic solution to the market for our clients
The market is growing
IP specifically designed to handle growth as new real time services
come to market
Integrated Cybersecurity
CGI is baking in protection for CGI AML clients against cyber hacks
and internal threats
Digital end to end solution
Protecting the institution, managing growth and driving new levels of
efficiency and effectiveness end-to-end
1
3
2
4
5 IP30 Combining IP with global industry expertise to deliver extended value
to clients
Key takeaways
DIGITAL BANKING IP

14. Open Q&A