The document discusses the evolving landscape of banking application development, emphasizing the importance of collaboration and agility due to significant changes in market dynamics. It outlines the role of cloud platforms, integration of services, and new technologies like SharePoint and Microsoft Dynamics in transforming financial services. Additionally, it provides insights into the current challenges faced by banks, such as increased fraud and disconnection between processes, while proposing solutions through advanced software and improved service delivery.

1. Changing the Face of Banking Application Development Mike Walker Financial Services Architecture Strategist Microsoft Corporation

2. Agenda Banking Today Trends and Strategies Office Business Applications and S+S NEW Banking Reference Architectures Conclusion

3. Business is Changing Business is much more collaborative Innovation happens with people Breaking the Silo mold “ Today, more than 85% of a the typical S&P 500 company’s market value is the result of intangible assets. For many companies, the bulk of these intangible assets is the result of it’s people, it’s human capital… It’s no longer what you own that counts but what you know …” Craig Symons, Forrester Research Matrix Style

4. Technology is Changing Legacy Legacy Web 1.0 Web 2.0

5. Channels and Front Office Core Banking Back Office and B2B Call Center ATM Branch Kiosk Internet Treasury Mgmt Commercial Loan Image Archives Check Clearing Payment Networks Correspondent Banking Investors Brokers EFT E-Lending Consumer Mortgage Mobile Payments CRM Check Clearing Deposit Systems Risk Mgmt Lockbox Servicing Corp. Check Capture IVR

6. What Does this Mean? The Enterprise is NOT connected People are disconnected from process Agility Severely Hindered Costs of Products and Services go up Can not adjust to the market trends US Market Forecast - JupiterResearch 2005 Natural Disasters Millions in Loses Customer Confidence has been Impacted FSI Consolidation has Fragmented Systems Mortgage Fraud has more than doubled f rom 436 (‘02) to 1,036 (‘07) FBI Financial Crimes and MBA Fraudulent Loans cost Lenders 1 Billion a year FBI Financial Crimes

7. Where are we going? Cloud Platform CRM and SharePoint Improved LOB integration Extending the Client Pipe

8. Services Software

9. Enhancing the Platform

10. Development Platform & Tooling Data Integration, Storage & Analysis User Portal & Web Parts Data Visualization and ISV Partner Mapping Service Internet Weather Service

11. The 2007 Microsoft Office System The OBA platform LOB Systems Office Business Applications The Microsoft Office System Surround Platform Tools Visual Studio SharePoint Designer, Admin Too ls … Microsoft Dynamics SAP Siebel Custom LOB Systems Microsoft Dynamics SAP Duet ISV OBAs Custom OBAs Office SharePoint Server 2007 2007 Office system clients Exchange Server 2007 Office Communications Server 2007 Collaboration and Portals Search Workflow Business Process Management BI with Excel Services Electronic Forms Website and Security Framework Open XML File Formats & Extensible Fluent Interface Office Performance Point Server 2007

12. Financial Services Component Library http://msdn.microsoft.com/FinServArch

13. What are OBA Components Application Services Layer Productivity Layer Presentation Layer ERP/LOB Systems BDC Application Definitions & Web Services Business Intelligence (BI Models, Office Data Connections, BI Data Views/Reports, Business Formulas) BPM (WF Activities, WF Workflows, BizTalk Orchestrations) Unstructured Content Type Definitions & IM Policies VSTO Add-ins (App level, Document Templates, Outlook) SharePoint Web Parts Doc Lib/List Templates (field types and site columns) SharePoint Site/Page Templates InfoPath Form Templates Business Alerts and Notifications Search (Content Sources, Search Scopes, Managed Properties) Content Targeting (SP User Groups, Profiles, Audiences) ERP/LOB System Integration Services Microsoft Dynamics ERP SAP Siebel Custom LOB

14. Financial Services Scenarios Banking Consumer Mortgage Lending Broker Commissions Online Banking Insurance Insurance Claims Processing Insurance Rating and Quoting Life and Annuity Capital Markets Structured Derivatives Management (Coming Soon) Risk Management (Coming Soon) 90 Standards Based OBA Components www.fixprotocol.org www.ifx.org www.acord.org www.mismo.org www.lixi.org.au www.rets.org OFX www.OFX.org

15. Online Banking & Reports Mike Walker Architecture Strategist Architecture Strategy Group http://www.codeplex.com/OLB

16. Home Page Accounts Acct Type Avail. Bal Balance C123456 Checking $12,000 $13,500 S587964 Savings $50,000 $50,000 Promotions Products and Services New Checking New Savings Mortgages Home equity Investment Services Insurance

17. Transaction History Checking Account - C123456 Export Balance: $12, 500 Date Num Payee Amount 1/9/2008 Sample Retailer $50.00 1/9/2008 Sample Retailer $69.99 1/8/2008 Sample Retailer $9.99 1/8/2008 Sample Retailer $50.00 1/7/2008 Sample Retailer $99.99 1/7/2008 Sample Retailer $5.99 1/7/2008 103 Sample Retailer $9.99 1/7/2008 105 Sample Retailer $50.00 1/7/2008 Sample Retailer $9.99 1/6/2008 Sample Retailer $5.99 1/6/2008 104 Sample Retailer $50.00

18. Exporting a Report Report Templates for Checking Account - C123456 Type Report Name Where is my money going Incoming vs. Outgoing …

19. What is included BDC Entities Customer Account Inquiry (IFX) Customer Account Inquiry (OFX) Account Summary (IFX) Site Template Online Banking Home Page with Statement summary Word Documents - WordML (OFX Custom XML) Incoming vs. Outgoing

20. OLB Summary Reference application for how to build extensible OLB web parts SharePoint as a platform to surface industry standard IFX messages How to leverage existing web services in a new way Find new ways of exposing data in a rich and meaningful way

21. Broker Commissions Mike Walker Architecture Strategist Architecture Strategy Group http://www.codeplex.com/BrokerCommissions

22. Home Page My Commissions Generate Commissions

23. What is included BDC Entities Underwriter Pipeline Site Template Broker Site Template Windows Workflow Foundation (WF) Components Drive Document Generation for Brokers Excel Document (OpenXML) Broker Commissions Worksheet BizTalk LIXI Accelerator (TBD)

24. Separation from Presentation LIXI XML Excel File – Presentation The Excel file provides a presentation layer to the XML data sets. The presentation aspects are represented in ExcelML the new OpenXML standard for spreadsheets. LIXI XML – Data The LIXI XML data is embedded into the Excel Spreadsheet (from an Excel perspective this is viewed as CustomXML) and exposed through the ExcelML. Third party applications can access the data within the Excel file just like any other XML file but through the OpenXML specification.

25. New Development Opportunities Lender Portal Third Party Application Subscribe to Feed Pulls new Excel File Commissions RSS Message Bus LIXI XML Parser Broker Database Broker Workflow Components LIXI XML Broker Document Library Excel File (.xlsx)

26. Lending Reference Architecture v.2.0 Mike Walker Architecture Strategist Architecture Strategy Group http://www.codeplex.com/LOS

27. Summary of Additions New Instant Messaging OCS Integration Broker and Loan Processor collaboration A new set of five Excel based Mortgage Calculators More Content Management Real-World Patterns for ECM 2 New Business Intelligence Reports New 1003 FannieMae v.3.2 based InfoPath form InfoPath Quick Registration Enhancements including: Enhance Look and Feel Surfacing Workflow Steps MLS Integration using the RETS standard for an S+S example. Add Data Elements to conform to the industry standard 1003 Form New OpenXML Document Generation of Loan Documents Includes an example of generation of the Good Faith Estimate

28. Extending Loan Applications MLS Look-up MLS Lookup Web Service WS Call RETS Standard Lookup Table with ID to Property Pairs ADO.Net

29. Document Generation Master Loan Flow (MLF) Activate Loan Active Loan Save Lock Services Underwriting DocGen DocGen Service Call Web Service - Pass Document Name (Ex: Truth in Lending) and the InfoPath XML Retrieve Mappings and Word Document Template from SQL New Document Library for Borrower DocLib should be named what ever the <LoanID> is. Close Fire Event Custom Controls in document

30. CONCLUSION

31. SharePoint Customers #1 Microsoft Development Platform

32. New Developer Resources OBA Platform Scenarios: Sales Proposals and Customer Service Request Management OBA Sample Application Kits For SAP v2 and PeopleSoft

33. Call to Action Download the Financial Services Component Library Go to the Financial Services Architecture Center Read the New Architecture Guidance Download the New Adapter Packs for BizTalk and MOSS Learn SilverLight 2.0 and leverage the new Blueprint Start evaluating 2008 Products 2 3 4 5 6

35. Additional Information Mike Walkers Blog http://blogs.msdn.com/MikeWalker Financial Services Architecture Center http://msdn.microsoft.com/FinServArch Financial Services Component Library http://www.codeplex.com/BrokerCommissions http://www.codeplex.com/LifeInsurance http://www.codeplex.com/los http://www.codeplex.com/olb http://www.codeplex.com/imf Loan Origination Online Hands on Labs http://go.microsoft.com/?linkid=8026975 Get the Architecture Journal and the New Reader http://architecturejournal.net/ http://www.microsoft.com/downloads/details.aspx?FamilyID=dd466bbb-1b7d-438e-9f9a-954ce2058f15&displaylang=en

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