Leaders: - Henry Marquiss - SVP, Specialty Loan Accounting at PNC - Umar Syyid - CTO at Primatics Financial Key Discussion Points: • Building a smart data sourcing architecture in the context of existing data solutions • Consolidating applications and ensuring they operate in an integrated fashion with each other and with upstream and downstream data sources • Leveraging the results for your users in order to realize efficiencies at your business Increasing regulatory pressures on financial institutions today, along with greater demands for integration across risk and finance, now require solutions that can interoperate with each other, respond to change quickly and can be operated efficiently. Whether the business requires more substantial reporting or a more systemic way to assimilate and optimize everyday data, to-date many financial institutions have built point solutions piecemeal for every regulatory or business issue as they occur and as a result, struggle with operating and leveraging these portfolios of applications to create a single source of truth. Learn how one $300 billion dollar bank realized significant operational efficiencies through a platform-based approach towards consolidation of risk and finance along with a ‘smart data’ architecture by teaming with Primatics Financial, a recognized technology company in the financial services industry.

1. Realizing Operating Efficiencies
Through a Platform-Based
Approach: A Case Study
Henry Marquiss
SVP, Specialty Loan Accounting, PNC
Umar Syyid
CTO, Primatics Financial

2. Agenda
• Background
• Future Targets
• Achieving Operating Efficiencies through Consolidation
• Leveraging a “Domain Aware” Platform
• Challenges & Risk
• Fit with Existing Architecture
• Results
2

3. Background: PNC’s Rapid Growth
PNC has grown rapidly in the past 7 years through a series of acquisitions and
organic growth during a tumultuous credit, regulatory and business cycle. This
led to:
• Tactical investment in parallel on both automated and human based processes to solve
for business changes across the back office in both the finance and risk areas
• Multiple complex systems and businesses processes rapidly setup that now require
careful thought to scale and manage
3
Announced
National City
Bank
Acquisition
Announces
RBC US
Acquisition
Loss
Mitigation
Efforts
Peaked
Credit Cycle
Bottoms2008 2011 2012
Regulatory Changes
for Non Performing
Assets
Initial Dodd Frank
Reforms Enacted
Accounting Guidance
for Restructured Assets
Bank hits $300Bn
in assets

4. Establishing Targets and Strategy
4
Simplify operating architecture, remove
redundancies and reconciliations
Save money, primarily focus on reducing
current operating expense
Improve future ability to handle business
and regulatory change
Fit within enterprise data and systems architecture
(finance architecture, data architecture and IT roadmap)
Strategy
formulation
Joint discovery effort (Primatics/PNC) to first fully
understand current landscape and then
recommend a solution to meet PNC’s goals.
Started project in Q3 2013. Formulated
recommendation mid Q4.

5. Solution: Consolidate with a Single Platform
Analysis of Legacy Paradigm The Platform Paradigm
SILOED
PROCESSES
COMPLEX
RECONCILIATION
DIFFICULT
REPORTING
DISTRIBUTED SUPPORT &
MAINTENANCE
RE
Credit
Models
Non-
accru
al
SOP
03-3
NPL
FAS 91
Specific
ALLL
What
if?
FAS
114
TDR
Scena
rios
INCREASED
EFFICIENCIES
ONE SUBLEDGER
WITH MULTIPLE
PERSPECTIVES
GREATER CONTROLS,
LESS RISK
SINGLE
PROCESSING
SPACE
6/30/15
RISK
PROCESSES
Siloed Processes, Complex to Support and
Adapt to Change
• Confluence of change; credit, risk and finance coming
together to build solutions
• Complex data integration processes between siloes
particularly as they cross natural domain boundaries
• Large and continuing human capital investment with focus
on running the process in a controlled way
• Multiple hand-offs between processes, data copying and
point-to-point reconciliations
Single Platform Solution
• One platform for loan finance functions, reducing operating
costs and providing consistency across the institution
• Ability to extract and enrich data from internal and other
third-party systems
• Greatly reduced reconciliations and automated, flexible
workflows
• Expected operating efficiencies of ~ 30% annually
RISK
PROCESSES
5

6. Leveraging a “Domain Aware” Platform
• Still just a platform…but pre-packaged services are specific to the problems
associated with the operating domain (bank finance concerns in this case)
• Domain Aware Services: Finance & risk relevant services on top of which a set of
solutions are provided
6
EnterpriseServiceBus(ESB)
SupportedProtocols(REST,SOAP,JCA,JMS)
Loan
Accounting &
Forecasting
Credit and
Reserving
Model
Execution
Smart Data
(Sourcing and
Analytics)
Security Cloud (Utility) Computing Software-Defined Storage
PersistenceIntegration
Services
Distributed
Computing
Identity
ManagementMulti-Tenancy
Business Workflow Layer
Solutions
“Domain
Aware”
Business
Services
Platform
Services
Infrastructure
Services
SDKExtensibilityFeatures
Lifecycle Event
Processing
Calculations
Accounting Rules
Calculations Risk
Rules Journalization Reporting
Common
Technology
Services

7. Building Functions on Top
6/30/15 7
Loan
Accounting
Credit
Disclosures
PNC Risk
Analytics
Production Data
Flows
PNC Business Process Integration
Data &
Orchestration
Extension
..category
leaders
combine
deep
domain
knowledge
in
various
risk
topics
with
deep
technology
assets
and
capabili8es.
They
can
demonstrate
this
by
addressing
the
needs
of
very
large
clients
with
complex
risk
management
and
technology
requirements,
as
well
as
addressing
the
needs
of
smaller
clients
with
standardized
requirements…
Extension
Less is
More
Build bank specific solutions
by focused development of
orchestration and extensions
that augment and leverage
existing business services
available on the solution.

8. A Closer Look: Complex Problems Solved with Business Services
6/30/15 8
ID
ENGINE
EVENT
SVCS
LOAN
MASTER
TDR SUB
LEDGER
JOURNAL
ENG
114
ACTG
PCI
ACTG
AMORT
MODEL
EXEC
EXPECTED
CFLW
FAIR
VALUE
CFLW
SVCS
NON PERFORMING EVENT OP & ACTG TRANSACTION FLOW RISK ANALYTICS
RISK
OPACTG
CREDIT Credit Accounting Solution
EVOLV
Deeper Look: Solution Architecture
Information flows required to perform credit accounting functions include flow from operational, risk and credit systems.
1. Leverage loan credit identification services (non-accrual, credit restructurings, TDR etc.), convert to accounting
events and record for disclosures
2. Capture operational accounting transactions and then leverage various credit accounting services to calculate
accounting adjustments and accretion within sub-ledger
3. Connect with risk analytics functions to convert risk outputs to expected cash flows, fair values and other modeled
outputs to compute allowance adjustments

9. Challenges with Platform Approach
9
Data normalization is complicated. The same data elements mean different things to different
stakeholders, requiring a “multi-verse” perspective to be effective
Integration with source systems with “closed” architectures generally requires a focus on
simplification to ensure interfaces don’t break
Determining what are truly reusable building blocks across a domain without over-
complicating architecture by adding services that are never reused
Building a team, knowledge base and support structure internally to support agile
delivery
Establishing a production paradigm that includes multiple parties, including
multiple business and technology groups on the same platform

10. Fit with Bank Architecture - Intermediate State
10
Other Finance
Systems
Pluggable Adapter
Architecture
Commercial
Retail
Mortgage
Other Data
Enterprise ODS Enterprise WarehouseEnterprise Information
Architecture
Other Applications
Feeds to
Enterprise
Bank Operating Platforms
Finance
User

11. Fit with Bank Architecture - Future State
11
Other Finance
Systems
Feeds to
Enterprise
Enterprise Data
Pluggable Adapter
Architecture
Commercial
Retail
Mortgage
Other Data
Enterprise ODS Enterprise WarehouseEnterprise Information
Architecture
Bank Operating Platforms
Other Applications
Finance
User

12. Result of Improvements
12
Summarized
Results
Primatics’ EVOLV® Solution
• Creates substantial ROI, cutting annual operating costs by 30%
• Positions PNC to quickly adapt to changing strategies and to scale operations expediently and
efficiently
• Enables better decision-making through more advanced analytics and elimination of time-
consuming “processing” steps
• Enables more automated and defensible compliance of critical current and potential future
regulations
• Through the integration of data, applications, and analytics, greatly consolidates and/or eliminates
needs for point solutions, hand-offs, reconciliations, manual steps, etc.
TDR
2013
FUNCTIONALITY
BEFORE AFTER
Acquired
Loans
(PCI &
Non-
Impaired)
NaCo
(Core Only)
NaCo
(Core and
RTA)
Acquired
Loans (PCI
& Non-
Impaired)
Enhanced
Reporting
Automated
Disclosures
FAS 91
2015
FUNCTIONALITY
70%
94 % of PNC
loans
on the platform
Loans
in
Evolv