18th March 2019
Pascal Foehn – COO of Avaloq
Overview of Avaloq
Who we are
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Avaloq is a global services company with a strong focus in banking and wealth management technology
global logos
70million revenue in 2017
CHF 565billion client assets on platform
USD 4,000employees
2000+
fintech apps on the Avaloq Software Exchange
90+
service centres
22
of our employeesare financial services experts
>50%
developers in ourco-innovation community
1,300+Offices worldwide
3
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Overview of our 30 years in business
2012 2014
2015
Avaloq sets up service
centre in Germany
Set up of service centre
in Singapore
Launch of ARIZON
Raiffeisen becomes first external
shareholder
Transforming into a technology-
driven banking services company
Establishing the core
banking software
2003
2001
2011
BZ Informatik
becomes Avaloq
Avaloq expands across
Europe & Asia Avaloq enters the services
market (takes 51% stake in
B-Source) and launches
digital strategy
Avaloq enters
retail banking
2005
2010
19851991
1994
1996Foundation of
BZ Informatik
Partial management
buy-out
Development of banking system
AdvAntAge
Launch of Avaloq
Banking Suite
Laying the groundwork
Affirming leadership in the
market
2016
2017
Avaloq fully owns 3
service centres
Ramping up ARIZON, the
4th service centre dedicated
to retail banking
Warburg Pincus takes 35%
stake in Avaloq
Warburg Pincus buys
Raiffeisen stake and owns
increases participation in
Avaloq to 45%
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Opening of the
UK office
Bahamas
Panama
British Virgin Isles
United States
Switzerland
Luxembourg
United Kingdom
Germany
Monaco
Liechtenstein
France
Belgium
Spain
Jersey
Guernsey
Portugal
Netherlands
Andorra
Isle of Man
Austria
Australia
Singapore
Hong Kong
Thailand
ChinaMorocco
UAE
Saudi Arabia
North America
Europe
Middle-East
North Africa
APACListed countries show where we have
customer deployments – committed
deployments shown in italics
Avaloq offices
Service centres
Partner near and offshore centres
Today, we have clients or ongoing client projects in 28 countries
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We have robust, stable and growing client base
0
10
20
30
40
50
60
70
80
2013 2014 2015 2016 2017 2018
Cumulated go-lives for new clients since 2013
CHF 4,000 Billion
assets managed on
the Avaloq platform
97% client retention
since we have been
in business28 markets
70 clients with
133 sites in
production
39%
35%
18%
8%
133 sites in production
Europe excl. Switzerland
Switzerland
APAC
Other locations
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Avaloq differentiated proposition
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Why clients buy Avaloq
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Cost/complexity
reduction
Need to reduce cost due to market pressure, overcome internal
inefficiencies or reduce complexity (e.g. architectural simplification)
Need to support segment-specific compliance and regulatory reporting
and reduce the risk of not being compliant, e.g. superannuation in
Australia
Risk reduction/
compliance
Need to rapidly launch or integrate new business (e.g. startup,
acquisition of new organizations, expansion of existing business into
new markets, M&A
Launch or
integration of a
new business
Expand client base e.g. expanding from private banking into mass
affluent
Expansion into
new client
segments
Need to protect and extend existing client base with service excellence
and outperforming client expectations through e.g. new channels,
products
Enhanced
client servicing
Typical business challenges
«Avaloq can be trusted on their words – they mean what they say»
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3 monthstime required to merge
a new business
3 weeks Instead of 6 months to
launch new offshore
product
1 monthfor the bank to
start activities
4-6 monthsto expand into a new
geography
Carson Wen - founder and chairman at Bank of Asia (BVI) Limited (Hong Kong)
-20% in IT expenses
+7% in front-end staff
efficiency
+20pp improvement in STP
rates
-8pp reduction in cost-to-
income ratio
-20% savings in trade
execution
• Bank was looking to establish a global standardized operating blueprint across their wealth management entities in Europe and Asia
• Issues with cost, revenue growth and regulatory compliance
What was their challenge?
• Avaloq rolled out in 6 markets and used in a full SaaS model with outsourced back office services
• Reorganization of the wealth management business with the set up of two regional hubs for Europe and Asia, implementation of standardized processes and creation of centres of excellence
How did we help them?
• Business case showed a cost reduction and a RoI in < 3 years for the Swiss entity
• Enablement for future growth and possibility roll-out to other locations
• Proven expertise in private banking
• Agreement to co-create a service centre in APAC
Why did they choose Avaloq?
• Efficiency gains with higher straight-through-processing (STP) rates, with up to 20pp increase in STP
• Avaloq's expertise in running and operating banking software for more than 30 banks and continuous improvement methodology
• Access to Avaloq's local expertise in relation to market-specific requirements, regulations and banking products
What value did we deliver?
Deutsche Bank – establishing a global blueprint with Avaloq to manage over USD120 Billion client assets
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• Growing client base
• Need for a more flexible platform with higher product capability
• Were running a different system in Hong-Kong (acquired business)
• No real-time system
What was their challenge?
• Implementation of front to back Avaloq capabilities based on the Avaloq model bank for Asia
• Initially rolled out Avaloq in the two Asian locations to serve private banking clients
• Integration of the upper end of the retail business (DBS Treasures) onto the Avaloq platform
How did we help them?
• Versus Odyssey, Avaloq had a better understanding of the wealth management business and showed a higher commitment to the Asian market
• Real-time information for activities like monitoring for collateral management meant lower risk
• 100% success rate
Why did they choose Avaloq?
• Costs down 10%
• Handling of more volume for same headcount thanks to more efficient processes
• 27% more revenue per client from wider range of supported products
• Improved time to market for new offshore products reduced from 6 months to 3 weeks
What value did we deliver?
DBS – one single platform for high net worth and mass affluent
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• Having built a global business based on acquisitions in key markets, HSBC were looking for an opportunity to simplify their private banking landscape and realize the synergies and efficiencies of a single global private banking platform
• Make a step change in private banking platform technology while providing reliable options for market and regulatory driven change
What was their challenge?
• Immediately providing the operating leverage achievable with a global platform, HSBC is using Geneva as its regional European processing hub for Luxembourg, Channel Islands, Switzerland and from 02/19, the UK
• Where possible, certain processes have been offshored to a processing hub in Manila
• Client data sensitive processes protected by Avaloq’s proprietary SDS (Sensitive Data Segregation) layer
• A second regional hub for APAC, in Hong Kong will go live in Q3 2019
How did we help them?
• Standardized processes globally
• Ability to create cross business operations utilities for shared processes
• Accelerated time-to-market for new products
• Flexible open architecture, system configurability with sizeable Avaloq certified workforce in key European and Asian markets
• Coordinated market driven approach to accommodate regulatory change
Why did they choose Avaloq?
• Uniquely capable private banking and wealth management platform allowing rapid deployment across markets with minimal change
• Continuous cost reduction model through process harmonization and standardization as the platform is deployed globally
• Flexible technology deployment options for multi channel and product delivery, by market
What value did we deliver?
HSBC Private Bank – global private banking leader with USD 300 billion AuMbuilds its platform for the 21st century
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We are able to best serve our clients because we develop our own software, implement it and operate it
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CHF 700 Billion assets managed in our service centres
Optimizing thesoftware forhigher STP
Standardizedmethod
General operating model
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Mostcomprehensivesoftware
• Full front to back digital core banking
• Built on one single data model
Industrialized operations with SaaS and BPaaS
• Automated platform
• Best-in-class banking services
Leadingecosystem
• 90+ proven fintech solutions
• 150+ API endpoints
Together, our comprehensive offering of leading software, operations and open ecosystem enable highest levels of efficiency and profitable growth
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We offer our software on premises or in a SaaS model with optional back office services
Software as a Service
SaaS
Standard
apps
Optional appsAPIs
Your apps
Back office servicesFront office
support services
Back office
operations
Street side
services
Consulting and implementation services
Software installation
On premises
Standard
apps
Optional appsAPIs
Your apps
BPaaS
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Avaloq Banking Suite
Avaloq Banking Suite provides full front to back functionality
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Design-centric solutions for 39 personas
Retail
Client
Relationship
Manager
Wealth
Client
Investment
Specialist
Digital Wealth
Client
Classic Wealth
Client
Digital RM Classic RM
Family Office
Investment Advisor
Front Office
Support
Legal, Risk, and
Compliance
Back Office
Group
Retail
Branch
Financial
Advisor
Lending
Specialist
Portfolio Manager CIO Analyst
Client Advisor
Assistant
Trading & Trade
Support
Treasury Manager
Prospect Family Retiree Student
Client Advisor
Commercial Lending
Officer
Contact Centre Welcome / Teller Branch Manager
Private Lending
Officer
CIO AnalystPortfolio Manager
SME: CEO SME: Accountant
SME Client Advisor
PRIVATE BANKING RETAIL BANKING
Product
Management
BACK OFFICE
Accounting & Finance
Lending
Officer
Risk Manager
Reference Data
Specialist
Corporate Actions
AnalystReconciliations OfficerSettlements Analyst Tax Specialist Payments Specialist
Legal and Comp. Spec.
Back Office Support
Group Accounting
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Avaloq DIGITAL Technology – for professionals and clients
Digital Channels for Customers
e-Workplace for client-facing employees
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Front Workplace Workbook
«What do I needto do?»
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Front Workplace RM Workplace
«What’s going on with my clients?»
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Front Workplace CRM Desk
«Who is thisclient?»
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Client Onboarding & Client Lifecycle Management
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Selection of financial instruments processed by the Avaloq Banking Suite
Money Market & FX
•Deposits
•Fiduciaries
•Forward Rate Agreements (FRA)
•FX Spot
•FX Forward
•FX Swap
•Non-Deliverable Forward (NDF)
•Repo
Securities
•ABS / CDO
•ADR / GDR
•Bonds
•Collateral Management
•Double Currency Investments (DCI)
•Funds
•Hybrids
•Notes (Loan)
•Physical Securities
•Private Equity
•Shares
•Securities Lending & Borrowing
•Structured Products
•Warrants
OTC & Exchange Traded Derivatives
•Accumulators/Decumulators
•Asset Swaps
•Caps, Floors, Collars
•Cross-Currency Swaps (CCS)
•Credit Default Swaps (CDS)
•Futures
•Interest Swaps
•OTC Options
•Traded Options
•Swaptions
Lending & Credit
•Bank Guarantees
•Business Loans
•Lombard Loans
•Mortgages
•Overdraft Facilities
•Personal Loans
•Term Loans
•Syndicated Loans
Accounts & Payment
•Account Sweeping
•Bank Notes
•Cards
•Cheques
•Current Accounts
•Metal Accounts
•Saving Accounts
•Standing Orders
•Safe Boxes
Coins, Commodities &
Others
•Arts (painting), racing horses
•Bullions
•Coins
•Commodities (Seeds, Pork, Cattle, …)
•Inventories
•Insurance Policy
•Physical Metal (precious or industry)
•Real Estate
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Avaloq.one – a unique B2B2C platform for collaboration and innovation
Avaloq.one
Avaloq Software
Exchange
Sandboxes
Developer kit
Avaloq.one portal
Open APIs
HackathonsFinTech
selection /
onboarding
FinTech
scouting
Consulting and
implementation
specialists
Global
marketing
Commercial
model
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Thank you for your attention.