This document discusses opportunities and challenges in the banking sector. It proposes the development of a financial transactional/trading platform (FTTP) as a cloud-based marketplace that would connect financial service providers and consumers. The FTTP would provide services like retail banking, payments, lending, and serve as a front office for banks. It would aim to increase access to financial services for individuals and small businesses. The company behind the FTTP has experience developing banking software and wants to build on an existing prototype platform.

1. Financial meta-environment
FS-Book for banks
Transactional/Trading Platform
BI Studio LLC

2. BANKING SECTOR CHALLENGES OVERVIEW
Problems:
 Traditional banking sector is still at the low
marginality level since the crisis of 2007.
 Rapidly changing technologies. Innovation cycles
are shortened.
 Many banks are still using outdated software
holding them back from entering the era of digital
banking.
 Multi-factorial nature, informational overload and
difficulties in product selection. Thus, it’s
impossible to build hypercomplex behavioral
models.
 Modern transactional, trading and payment sites
are pulling away the clients acting as an
intermediary for the bank.
 Some banks have to create or acquire “smart”
portal and sites by considerably expanding the list
of the products and services with the ones that are
not traditionally banking ones.
Opportunities:
 Return marginality to pre-crisis level by performing the following:
 Entering the digital banking market using one of the four suggested
IBM strategies
 Reducing OPEX through cloud solutions
 Focus on retail banking
 No bank branches – only representative centers to directly
communicate with clients.
 Remote contract conclusion through certificates /tokens
 Classification of clients and identifying focus groups: generation
“Next”, “conservatives”, “SME”, “pensioners” and set-up of banks for
them (probably under a single brand)
 Change of the paradigm – a bank is only a provider of the
financial resources + GL + Risk Management + ERP + reports tо
the regulating authorities.
 Delegation of all the remaining functions to the platforms of
brokersmediators, including all the functions of the front office.
 Analyze users’ demand and hold targeted advertising campaigns
within mediators’ platform.
 Cognitive banking – smart banking (by IBM).
 Fully digital bank

3. DIGITAL BANKING MODELS (BY IBM)

4. WHO WE ARE
We are a group of mathematicians and IT specialists, graduates of M.V. Lomonosov Moscow State
University, Kyiv Taras Shevchenko National University.
• we have 20 years history of successful banking automation system development including
creation of Ukraine’s biggest Corebanking system which supported about a third of country’s
banking sector
• we have got extensive experience of stock exchange and financial market IT support including
independent development of functional specifications for National Depository of Ukraine
• we created and implemented several generations of retail banking systems
• we created and implemented a number of card processing systems for banks and fuel retail
traders
• we created lots of BDW/BI solutions for the biggest universal banks in Ukraine
• we have got very extensive experience in creating the Dodd-Frank reporting system for one of the
biggest investment bank in the world
• we have successfully implemented high-load/high-performance billing systems for regional energy
supplying companies across Ukraine

5. OUR STRATEGIC OBJECTIVES
• Creation of the biggest cloud based smart financial service network as a new
sort of e-marketplace which is providing full range of financial services and
payments.
• The top-class international transaction processing system.
• International retail banking platform with the flexible set of products to predict
and satisfy the most demanding and urgent requests of the customers.
• Mixing financial services with a social networking into the one financial and fully
automated meta-environment.
• Digital Environment ready for a Digital Marketing, Cognitive assistant, Big Data
Analysis

6. WHAT HAVE WE DONE ALREADY?
• Those projects we have completed made us understand that all the financial
systems have a lot of common features. We have managed to classify typical
processes, reporting system elements, user roles, products, services and
operations. As a result we were able to create a prototype of innovative
Financial Transactional/Trading Platform (FTTP) intended to facilitate
implementation of corebanking systems, retail banking solutions, billing
systems, payment, clearing and settlement platforms.
• Financial Transactional/Trading Platform – is a high-scalable cloud solution that
make it possible to serve independent businesses according to the multi tenant
mode.
• Based on this prototype platform we have already created the first product - a
retail banking system. This system was highly praised by one of “Big 4” Audit
Companies and named “one of the most promising projects” in 2008.

7. SUBSTANCE OF PROPOSAL
We offer to:
• Build financial/banking business in a new cognitive paradigm such as
development of mobile, digital, smart banking
• Update and use our FTTP platform as a basic framework
• Build a meta environment with one or several operational banks
specialized in retail banking products and a wide range of popular
services for SME
• Establish a professional network of financial services capable of
organizing situational or permanent groups for doing business
together and/or communication. All financial, e-commerce, banking
needs arisen as a result of cooperation will be fulfilled through
operational bank/group of banks

8. WHAT IS FTTP FS-BOOK
(Financial Transactional/Trading Platform)
FTTP is a Smart Cloud Marketplace
Cloud providers Cloud consumers
Smart Cloud
Marketplace
FTTP is Financial Transactional/Trading Platform that belongs to a cognitive middleware
class of software systems. It is an intermediate service layer between the providers and
consumers of financial services. FTTP FS-Book provides users with financial services,
instruments and interfaces enabling them to launch and run business activities

9. WHAT IS FTTP (continuation)
Being a marketplace FTTP connects providers and consumers, suppliers and acquirers, vendors
and buyers, banks and customers, Investors/private investors and borrowers.
FTTP is intended to make their interactions faster, friendlier, more secure and less
expensive.
• E-market where financial service providers and their consumers meet each other (cognitive/AI
intermediator) and make deals (brokerage)
• Financial service provider itself (invoicing, billing, e-commerce (B2B, B2C), peer to peer lending, bond e-
trading, OTC trading)
• Front-office for banks, credit unions, insurance companies, crowdfunding entities and other service
providers
• All-in-one-box ERP services (GL, AR/AP, Inventory management, e-commerce,… ) like ODOO for SME
and individuals (almost “free of charge” in order to attract and hold as many consumers as possible)
• Professional network for building business and professional relationships and interactions.

10. FTTP FS-BOOK MAIN PARTICIPANTS
• Traditional financial market players – investment and commercial banks, credit
unions, insurance companies
• Stock traders operating outside the Stock Exchange (Over the Counter - OTC)
• Brokerage firms
• Service providers who need third-party invoicing/billing solutions
• Payment systems and payment gateway operators
• Goods and non-financial services sellers
• Credit bureaus
• Debt collection agencies
• Accredited key certification centers
• Individuals and SME entities
Main FS-Book participants are the individuals and SME entities

11. FTTP ADVANTAGES
• Participation in FTTP allows service providers to increase the number of potential
customers since it will serve as front-office and virtual marketplace closing the
distance between the service provider and consumer.
• For a consumer FTTP is a single access point for a wide selection of services provided
by different enterprises. We will assist consumer to make choice among the great
number of offered services without exposing them to annoying advertisement and
make it possible to evaluate any provider’s performance in measurable parameters –
reliability of the provider, price, maintenance cost, fine amounts, etc.
• For all the participants the FTTP offers an opportunity to maintain direct connections
and perform business operations with everyone registered in the platform.
Fully developed FTTP environment will be a practical realization of financial cluster
concept – a self sufficient environment fully capable of performing financial operation
of any complexity without reliance on external services or agencies. This is particularly
demanded in case of large-scale international financial companies which can use our
meta-environment as an integration platform.

12. FUTURE PROJECTS
COGNITIVE BANKING/
DIGITAL BANKING
COMMUNITY,
PROMOTIONAL AND
SOCIAL PROGRAMS
E-COMMERCE FOR
BANKS
INSTANT MONEY TRANSFER
DIGITAL MARKETING:
LOYALTY AND REFERRAL
PROGRAMS
CRYPTO-CURRENCY
EXCHANGE FINANCIAL
COMMUNITY
CRYPTO-CURRENCY
DEPOSITORY
COGNITIVE ASSISTANT PEER-TO-PEER LENDING
CROWDFUNDING

13. THE TEAM
Team Q-ty* Experience in
Banking Industry
Full Stack Developers (JEE, .NET, JS,..) 25 7+ years
Mobile Developers 8 3+ years
Web Developers 7 3+ years
Innovation R&D (System Architects) 4 10+ years
Business Intelligence 7 10+ years
Quality Assurance 10 5+ years
Information Security 3 10+ years
Mathematicians 2 20+ years
DevOps and Support L2, L3 8 4+ years
Management 7 10+ years
* - available . Scaling to 120 in one month, if required.

14. APPENDIXES

15. APPENDIX1:
TRENDS IN TRANSACTION BANKING
77%
45%
43%
35%
34%
33%
26%
25%
14%
13%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Consolidating at least trade finance and cash management businesses to
achieve this goal
Multiple core processing systems infrastructure problem
Online channel development as the top transaction banking priority for
next year
Simplified process for making changes to payment standard and rules
across all systems
Increasing IT and system complexity as the major challenge facing their
bank's transaction banking group
Increasing regulation as the major challenge
Adding new products and services the top strategic focus for banks over
the next three years
Real-time payment tracking is the top priority in payments.
Trade services functionality
Cash flow forecasting tools
Trends in Transaction Banking survey. ©Euromoney Institutional Investor PLC, 2016

16. APPENDIX 2:
TRENDS IN BANKING INDUSTRY
KPMG Banking CEO Survey, 2016

17. THE MOST SIGNIFICANT GROWTH BARRIERS & TRENDS IN BANKING INDUSTRY
InternalExternal ITNon-IT
0% 80+%40% 60%20%
Consolidating trade
finance and cash
management businesses,
77%
Real time Payment
Tracking, 25%
Online Channel
Development,
43%
New Products and
Services for the Strategic
Focus, 26%
Increasing IT Complexity
is the main challenge,
34%
Simplified and common
process of making
changes and rules
through all systems, 35%Multiply core
processing systems
infrastructure problem,
43%
Performance of
residential real
estate market , 14%
Lack of qualified
taskforce, 14%
Employee-related
costs, 18%
Staying on top of
technologies, 19%
Performance of
commercial and industrial
market, 20%
Risk management
issues, 26%
Interest rate pressures,
27%
Regulatory and legislative
pressures, 32%

18. TECHNOLOGIES & STANDARDS.
EXISTING PROTOTYPE
• Java Platform Enterprise Edition.
• 100% SOA. 3+ tiers cloud ready architecture.
• Mass serving system. Asynchronous queuing
• system with multichannel processing.
• Multitenant mode. Data segregation.
• Built-in BPM engine.
• PKI, session keys.
• Multi factor authentication (2+).
• Payment Card Industry Data Security Standard
(PCI DSS) Compliance.
• ISO 27001 Compliance.
• Built-in script language.
• API to core functions.
• Availability to create a new product without
redeployment using our integrated script
engine only.
• JMS is supported.
• Dynamic load balancing.
• Availability to work within distributed
heterogenic environment
• Disaster recovery installations.
• Availability 99,999%.
Existing prototype is based on the following technologies and standards:

19. TECHNICAL PROFILE #1
We are experts in the following technologies, standards and tools/platforms
Enterprise Platforms Java EE, .NET
SD Methodologies RUP, Prince2, Waterfall, Iterative SDLC, Agile, Scrum, TDD
Enterprise Application
Platforms/Servers
Oracle WebLogic, IBM WebSphere, Redhat Jboss
Servlet Containers Apache Tomcat, Jetty
BPM Engines IBM BPM, Lombardi TeamWorks BPM, JBoss jBPM
Analysis/Design/
Architecture/Tools
UML, OOP, Design Patterns; IBM Rational Software Architect, ArchiMate,
Entreprise Architect
Server side techs. Java EE full stack (JPA, EJB, JMS, JTA, RMI, JNDI, JAAS, JDBC, JMX, JavaMail, JSF,
Servlets/JSP/JSTL, JAXB etc.); CORBA; ASP.NET, Node.JS
Client side techs. HTML5, CSS3, JavaScript, AJAX
Web Services techs. RESTful (JAX-RS), SOAP (JAX-WS, JAX-RPC)

20. TECHNICAL PROFILE #2
DBMS/Data Storages Oracle, DB/2, Informix, MS-SQL, MySQL, PostgreSQL, MongoDB; Oracle TimesTen; SAP
HANA, Redis, Apache Hive, Apache Hadoop; JBoss ModeShape, Apache Jackrabbit
DB/DWH modeling CA AllFusion ERwin Data Modeler, SAP Power Builder, IBM Rational Rose Data
Modeler, IBM InfoSphere Data Architect, SQL Developer Data Modeler, IBM Industry
Modeling for Banking (BDWM), SAS Credit Scoring for Banking, Enterprise Architect
ETL tools Informatica, IBM InfoSphere DataStage, IBM InfoSphere FastTrack, IBM InfoSphere
Metadata Workbench, Oracle Data Integrator Enterprise Edition
Business Intelligence
& Reporting tools
IBM Cognos, SAP BO, Hyperion, Qlikview
Testing Frameworks IBM Rational GreenHat, Selenium, HP LoadRunner, HP ALM
OS Linux: RedHat, SLES, Ubuntu, Debian; HP-UX; AIX; Microsoft Server 20x
Continuous
Integration
TeamCity, BuildForge, Jenkins
Version Control
Systems
Git, SVN, Mercurial, Team Foundation Server, CVS

21. TECHNICAL PROFILE #3
IDE NetBeans, Eclipse, IntelliJ IDEA
build tools Gradle, Maven, Ant
unit testing JUnit
IoC container Guice, Pico-container
ORM tools Oracle TopLink, Hibernate
MVC Spring, Struts
template engines Velocity, Freemarker
content repositories Apache Jackrabbit, JBoss ModeShape
BRMS JBoss Drools
JS JQuery, Bootstrap, KnockoutJS, AngularJS, ReactJS
Java2AJAX Web Frameworks: ZK, GWT
architect IBM Rational Rose Suite, Enterprise Architect, Archi Archimate

22. MAIN INSTALLATIONS
Client Project
“Ukraina” Bank Developing, implementing and supporting full – scale corebanking system for more than 500 outlets and local
offices;
“Tulskiy Promyshlennik” Bank Core banking, retail banking and in-house card processing system development implementation and support;
“MetaBank” “MetalCard” Retail banking and in-house card processing system development implementation and support;
“Bank Credit Dnepr” Development, implementation and support of “Metacard - multibank” retail banking system;
“PrivatBank” Development, implementation and support of “Metacard - multibank” retail banking system;
Implementation of payroll/salary processing in “Metacard” system;
Implementation of international payment processing systems’ equiring function in “Metacard” system for
“Yuzhmash” company;
National Bank of Ukraine Integration of “Metacard” retail banking system with “Topaz” card processing center;
UkrSibbank (BNP Paribas Group) Development, implementation and support of “Metacard - multibank” retail banking system;
“Bank Forum” Development, implementation and support of “Metacard” retail banking system;
Zhytomyr Regional Power
Distribution Company
Development and implementation of centralized billing system on IBM platform (IBM servers p-series, IBM
WEB Sphere, IBM DB/2) ;
“Pivdennyi” Bank Development, implementation and support of “Metacard - multibank” retail banking system;
“Kreditprombank” Re-engineering of client operational services business processes;
Development of retail banking system "MS-Retail" (J2EE);

23. CONTACTS
VASSILY BUZUYEV
CTO, HEAD R&D
BI Studio LLC
Skype ID: buzuyev
Tel. +380672321645, +380919596253
E-mail vassily.buzuyev@gmail.com
Linkedin ID https://ua.linkedin.com/in/vassily-buzuyev-
788b0916

24. QUESTIONS