<Client>

Digital transformation Program

June 2017

Page 1
 Agenda
1. Our Understanding of your requirements
2. Market outlook
3. Leading market practices
4. Current State Customer Journey
5. Approach & Methodology
6. Functional Architecture: Current State and Future State
7. Proposed Project Timelines
8. Our Credentials
9. Our Capabilities and Experience
10. Risks and Dependencies
11. Sample CVs with Securities Expertise
12. Appendix

Confidential — All Rights Reserved — EY 2017

Page 2
Our Understanding of your requirements

Confidential — All Rights Reserved — EY 2017

Our understanding of your requirements

• No Real time reports for RMs or customers

• No Charting capabilities for traders; no real time analytics capabilities for reading multi year charts
• Multiple handshakes between systems
• Improvement in customer experience
Key Challenges • No Capital gains report or Real time P&L; No capability to track old Corporate Actions (dividends, bonus, stock split
etc.)
• No RM / Digital only model; no automated chat-bot + voice assistance features
• No automated resolution of service requests via Call center IVR

In this regard, <Client> has sought EY advisory , implementation and program management support in:
• Market study covering Equity, derivative, mutual fund and commodity products
• Identify market best practices and make recommendation for building research and analytics capabilities
• Add new features PIB platform – Commodity options & Algo based trading
• Oversee implementation of reporting capabilities – regulatory reports (to SEBI), internal MIS (sales, ops, profitability etc.),
Key expectations customer reports (real time portfolio valuation, profit & loss statements, capital gains statements etc.)
• Understand current application stack and suggest application rationalization to reduce multiple systems
• Ensure design of customer journey, UX / UI for existing mobile application (MPIB), high volume trading platform (PIB) and
web portal (OTS)
• End to end program management of application architecture including ESB & Salesforce

Confidential — All Rights Reserved — EY 2017

Capital Market Outlook

Confidential — All Rights Reserved — EY 2017

India Market Landscape – Capital Market Overview
Profitability impacted due to declining volumes, intense competitive pressure and increased
regulatory scrutiny
Increasing Competitive Pressure Higher Regulatory Burden
Regulation Impact
Hike in minimum contract size in Curtailed retail participation and
equity derivatives to INR0.5m restrict liquidity in derivatives
Low cost operating
model and focus on mass Imposition of transaction charges on Impacted arbitrage volumes and
market commodity brokers resulted in reduced liquidity
Capital adequacy stipulated with Pressure on brokers to focus on
Domestic regard to trading exposure; tighter frequent capital raising to support
norms in future future business growth
Broking
Str cros rtunit

io n
es sti h
sin in hig

Firms
ong s-s

tut
bu eign n in
opp

par ellin s

fo tio

s
ent g
o

in eti
rg mp

► Regulatory pressures are impacting profitability. High compliance costs

age

r
ma Co

forced 85% of brokers having capital between INR 10-100m to close

ie

and

down operations
► Increasing number of small and mid-sized brokers are surrendering their
licenses as intense competition has resulted in rise in costs and decline in
commissions
Pressure on Revenue Growth
► Broking revenues declined by 8% y-o-y in FY16, vis-à-vis 14% growth in
FY15, mainly on account of pricing pressures across segments and decline
in trading volumes

Graph showing “Avg. daily turnover of cash segment* (INR X)” Graph showing “Decline in the number of Brokers”

Sources: Rating Reports; SEBI, News Articles

Confidential — All Rights Reserved — EY 2017
*NSE and BSE combined
India Market Landscape – Capital Market Overview
Overview of Equity Broking – Market Overview

Equity Markets - Overview Market Capitalisation (INR Bn)

► Equity capital markets in India are regulated by SEBI and provide a
significant source of long-term capital for companies
► The top 25 brokerage account for ~51% of cash turnover; smaller broker are
exiting the market
► Internet trading accounts for 11% & 5.3% on the NSE & BSE respectively
► Share of mobile app on NSE – 1.27 of total volume
► Algo trades account for 31% of the BSE turnover
► Key players include domestic brokers (Kotak, Motilal Oswal, Anand Rathi.
etc) & foreign brokers (Citi, Credit Suisse, HSBC, Merrill, etc.)

Primary Market - IPOs Total number of IPOs

Source: NSE
X

► The primary is seeing buoyancy with the market recovering from the lows of
2014
► In 2015-16 the market grew 10 times the previous year as companies raised X
Rs. 14,500 crores
X X X
► Market prospects look positive as investor confidence improves
X
► Regulations around IPOs have eased with SEBI allowed companies to launch
e-IPO gateways leading to reduced listing time and costs

2011 2012 2013 2014 2015 42522

Confidential — All Rights Reserved — EY 2017

India Market Landscape – Capital Market Overview
Overview of Equity Broking – Competitive Landscape

Market Share* of 9 major brokers (Based on ADTV)

5% X
X
4% X X
X X X
3% X
2%
1%
0%
Kotak Securities India Infoline ICICI Sec Motilal Oswal Religare Geojit Reliance Edelweiss

1 Bank/financial groups owned broking outfits 2 New broking private players

► ICICI, HDFC and Kotak – traditionally online players, now expanding
through offline channel; offering wealth management & other fee based
products
► PSU banks tying up with brokerage houses to introduce trading
► Foreign Banks taking up stakes in Indian broking houses
► New players such as AV Birla group & Tata Capital, HSBC, etc
3 International broker – dealers
► Foreign financial groups that have tie ups with Indian partners or have a
fully owned entity
► New private players who started off as pure brokerage houses and now offer
a wide array of financial products, e.g: India infoline, <Client>, Sharekhan,
Religare, etc
► Some focus only on institutional segment and provide services such as
investment banking, M&A advisory e.g: Enam, Edelweiss
4 Pure play traditional Indian brokerage houses
► Small broker and sub broker categories offering broking services only to
their customers - usually strong regional players

► Ex: BoA Merrill Lynch, CLSA, FIMAT (Soc Gen), Morgan Stanley,
► Typically have a lineage of broking and/or are family owned now emerging
Goldman Sachs. StanChart, Barclays, Singapore’s DBS, Taiwan’s Yuanta, as professionally managed
Bank of China Investment Management , etc ► Ex: Geojit, K.R.Choksey, Motilal Oswal, Karvy, Prabhudas Lilladher

Confidential — All Rights Reserved — EY 2017

India Market Landscape – Capital Market Overview
Overview of Equity Broking – Market insights & Implications

Market Insights Implications for business

► While market margins have thinned, however,

the long-term business outlook is positive
► Margins on broking fees are coming down progressively. Market has
seen an erosion of fees of upto 75-80% ► Players will need to focus on fee based
income rather than broking income by
► The space is crowded with a mix of niche broking firms, discount
leveraging activities such as margin IPO
brokerage firms such as Zerodha, Upstocks and banks (private / foreign funding, security lending, etc.
as well as public) existing in the space
► Players can leverage franchisee model to
► Industry is going through a turbulent phase where companies are
increase volumes
looking out for options (complete buyout / strategic partnership)
► Trading mindset of the customer is changing from investment to
trading which is reflected by progressive reduction is cash trades over
the years. Algorithm based trading is becoming increasingly popular
► SEBI has allowed direct trading (DMA facility) for FIIs and select DIs
to eradicate market intermediaries
► Broking firms (especially small and medium sized) have their focus on
prop trading desk
► The broking space has become highly fund based business as retail/
HNI investors look for margin funding activities making it difficult for
small & mid-sized broking firms to survive on broking fees only

Confidential — All Rights Reserved — EY 2017

India Market Landscape – Capital Market Overview
Overview of Mutual Funds – Market Overview

Mutual fund assets under management

1964–87: UTI
(INR b)
X
was the sole 1996: Formulation of 2003: UTI bifurcated into two entities
player SEBI (Mutual Fund) Regu- with specified undertaking of UTI
lations 1996 which cur- (SUUTI) in charge of assured return
1987: Several public sec- rently governs the industry schemes
tor banks entered the in-
dustry X
1993: Private sector X
players entered; the first X X X 2014: The MF market
mutual fund regulations X surpassed INR X for the
came into existence X first time
2006-2008: Several
large foreign firms
entered the market
X
X
X X

1 2 3 4 5 6 7 8 9 10 11 12

Key Growth Drivers Future Enablers

► Low mutual fund penetration in India provides for strong potential for
growth of AUM business. AUM to GDP ratio in 2014 for India was 7%
as opposed to UK (40%), US (91%) and Australia (111%)
► The country’s population pyramid concentrated in the 15-64 age group
which has benefited the industry as a larger portion of savings has flown
into capital markets
► During 2004-14, wealth for HNI and ultra-HNI segments rose from
USD588 billion to USD1.457 trillion. The contribution of this educated
and non-traditional segment drove higher AUMs starting 2003
► India’s macroeconomic environment is promising. Indian mutual funds
have outpaced global peers in AUM growth. Increasing investor awareness
is expected to augment this growth moving forward.
► Conducive environment for product development such as REITs and PMS
► Favorable demographics with Tier 2 and Tier 3 cities favoring future
growth
► Regulatory environment as an enabler such as tax incentives for NPS,
higher FDI limits, and govt. focus on AUM growth for financial inclusion

Source: AMFI, SEBI, Company websites

Confidential — All Rights Reserved — EY 2017
India Market Landscape – Capital Market Overview
Overview of Mutual Funds – Competitive Landscape

2003 Rankings ( as at 31st March) 2015 Rankings ( as at 31st December)

Rank AMCs Market share AUM Rank AMCs Market share AUM
1 UTI 17% 1 HDFC Mutual Fund 13%
2 Prudential ICICI Asset Mgt. 12% 2 ICICI Prudential Mutual Fund 13%
3 Templeton Asset Management 12% 3 Reliance Mutual Fund 12%
4 HDFC Asset Management Co. Ltd. 11% 4 Birla Sun Life Mutual Fund 10%
5 Birla Sun Life Asset Management 10% 5 UTI Mutual Fund 8%
6 Standard Chartered Asset Mgmt. 8% 6 SBI Mutual Fund 7%
7 SBI Funds Management Pvt. Ltd. 7% 7 Franklin Templeton Mutual Fund 5%
8 Kotak Mahindra Asset Mgt. 5% 8 Kotak Mahindra Mutual Fund 4%
9 Jeevan Bima Sahayog Asset Mgt. 5% 9 IDFC Mutual Fund 4%
10 Zurich Asset Management Co. 4% 10 DSP BlackRock Mutual Fund 3%

Domestic player Foreign player Note: JVs have been classified as domestic or foreign depending upon the origin of the majority shareholder

► The dominance of the domestic players has increased over the last decade and currently, just two foreign player figures in the list of top 10
► This trend is driven by the following factors:
• Foreign players such as Standard Chartered and Zurich Asset Management have exited by selling their stakes to domestic players.
• Domestic players such as HDFC Mutual Fund and Reliance Mutual Fund have benefitted immensely from their strong performance records. In
addition to that, strong distribution infrastructure of their parent/sister concerns has further helped them register strong growth

Confidential — All Rights Reserved — EY 2017

India Market Landscape – Capital Market Overview
Overview of Mutual Funds – Market insights & Implications

Market Insights Implications for business

► Market scope for the business is high based on current and expected
future volumes
► Commissions have progressively reduced from TP products resulting
in squeezing of margins
► Business is mainly concentrated in Tier-2 and Tier-3 cities
► Non-differentiated service as it does not require any advice research or
insights
► Large players have dominated the distribution model by leveraging on
strong network of TP products manufacturers
► Focus on Corporates only for high value
transactions
► Identify fast selling products and focus on
selling
► Create niche market for a particular type of
insurance scheme
► Higher technology and manpower spends
► Invest in differentiated product offering

► Large scale disruption in product distribution, especially mutual funds ► Become a disruptor if position is not
established
► Robo-advisors are offering distribution for as low as Rs. 30 per month

Confidential — All Rights Reserved — EY 2017

Leading market practices

Confidential — All Rights Reserved — EY 2017

Managing digital disruption
Emerging digital platforms are forcing incumbents to re-visit their business models

Impact of digital platforms on the market Challenges faced

Significantly lower to zero fees has broadened market to include

1 previously untapped segments
High cost of servicing smaller ticket investors through RMs
Geared to serve by new generation wealth needs – control, digital savvy,
2 Need to catch potential HNI & affluent consumers early in the
round the clock availability
lifecycle
3 Influencing purchase habits of new generation & old generation
Legacy thinking and operating models can act as a barrier to
evolution / innovation
4 Big data & analytics has the potential for personalize advice beyond
human based models Moving to fully automated model could alienate existing
customer base
5 Increased competition – non financial firms can enter the market through
digital based advisory
Key Attributes
Bridging the gap between digital & traditional
► Virtual based advisory, financial planning, risk profile, target
Complex

asset allocation, automated rebalancing, easy access and

periodic reviews are offered by WMs operating in this
Customer needs

channel
Personal advisor
► Offer
hybrid services that pair computer automation with
Robo-advisory Hybrid model
human financial advisors
► Use digital channels to improve cost efficiency for simple
Simple

transactions, but complex transactions still require personal

contact
Low Client wealth High

Confidential — All Rights Reserved — EY 2017

Regulations, client expectations, and technology are driving change…

The changing face of Securities Industry

Seamless Onboarding Money Market

Discount Brokerage Liquid Funds Social Trading

• Data / algorithms based
alternate credit assessment
methodologies built on
banking / transactions at the
core
• Pioneered the discount brokerage
model in india to empower the
retail community by sharing
knowledge, providing superior
tools and great support, all at a
minimal to zero cost.
• Allow seamless movement
of from bank account to its
MMF scheme.
• Ensures liquidity through
easy & quick redemption.
• Allows customers to link trading
platform with their various social
media accounts
• Customers can freely and easily
share your trading strategies, and
can even follow other traders’
strategies.

Key Takeaways

• Investing is still a very complicated process – there is evidence of several initial efforts to simplify investment management and bring new consumers
into the fold

Confidential — All Rights Reserved — EY 2017

…throughout the online brokerage industry both globally and in Indian market

Clients expect transparency (including performance reporting), competitive pricing, quality and client-centric service

Integrated Intelligent Scale & Automation Customer Communities Gamification and Financial
Platforms Literacy

 Development of hybrid
(self-directed/partially
advisor-led) services
Ability to curate
 
information and drive
intelligent insights.
 Scale-up the offerings from number  Engaging customers through social  Building interactive digitally
of products available online to and other digital channels to build enabled consumers for
value added services such as trusted communities consumers
automated advisory, financial
Open up APIs to enable developers to  Gamification, interactive
planning etc.
create apps to innovate new use tools etc.
 Rationalize cost structure, automate cases, reach more customers, drive
back office, contact center through transactions
RPA & AI, advisory through
analytics and distribution through
mobility solutions.

 Offers learning platform for each

 Curates information, news
recommendations from multiple
 Charles schwab has build its
sources, assigns social sentiment
scores.
 Has in-app chat, social communities,
learning & training module and
virtual accounts.
 eToro allows its users to watch the risk profiles, includes online
games, videos and webinar
own supermarket sized financial trading activity of other
users, copy them, and to make their session.
platform, offers a hybrid
solution for self-directed, own trades.  Runs a daily morning huddle for
partially and fully advisor led 15 mins on relevant news,
investors. announcement, events & earnings.

Confidential — All Rights Reserved — EY 2017

Leading market practices (1/2)
Capability
Ecosystem Integration
Digital Value Chain
Technology
Data and Analytics
Confidential — All Rights Reserved — EY 2017
Leading Practices
• Channel integration: Single view actionable picture to clients of financial position. Example: visualization tools
• End to end integration with 3rd party product providers to provide seamless buying and servicing experience
• Process Digitization: Seamless real-time onboarding for DIY customers – 3 rd party database integration for customer information
• Integrated front to back workflow based engine – process automation to improve COA and reduce TAT
• Using Blockchain Network to build new business network for conducting transactions
• Payments: Real-time immediate payment option from preferred account
• Servicing: Automated and single window for servicing in-house and third party products
• Channels: Omni channel platforms & Responsive web designs for device agnostic experience
• BPM: BPM & RPA solutions to automate and centralize back office functions.
• Information & Technical Architecture: Dedicated API management layer for agile development
• Multi-layered service oriented architecture enabling seamless flow of information using ESB
• Dedicated central BI and Analytics teams - Descriptive and Predictive analytics through CoEs & specialist partners
• Descriptive & Predictive analytics based decisioning integrated across business processes for proactive interventions
• Integrated EDW with datamarts having data from across multiple organizational functions
• Targeted research dissemination and response tracking to ensure relevance
• CRM data, text mining and advanced machine learning techniques being used for customer classification & targeting
• Advanced analytics for pro-active franchise / distributor management
Leading market practices (2/2)

Capability Leading Practices

• Organic Search: Optimized websites and usage of SEO & SEM to drive traffic to the website
• Content Marketing: Customized context driven content for each channels
• Audiences: clearly defined and accepted segments based on customer attributes and behaviours
Digital Marketing
• Social media marketing: Robust online client communities where traders can discuss relevant topics
and Social Media
• Social trading and social investing sites, such as eToro and Motif Investing
• Nurturing website visitors: Perform retargeting for anonymous profiles based on cookies, device used and browser
• Campaign Management: Well targeted and optimized campaigns using SEM

Digital Advisory Process

• Integrated Intelligent investment platforms – Offer a hybrid investing service combining tech & people advisory
Remote Advisory
• Provide AI based remote advisory through chatbot /VPAs /screen sharing with Investment Counsellors
• Usage of Voice Biometrics to further simplify call and trade module is being explored by many brokerage firms
• Agent advisory through hand held device
Customer
Continuous Engagement
Engagement
• Extensive use of Analytics-driven decision engines to enable matching of “product to profile” & portfolio analysis
Investor Education
• Virtual/demo trading accounts – simulated buying, selling & performance monitoring before committing real money
• Provide Customized educational content targeting specific customer group. Example: Tradeking in US
Research and Insights
• In built customised stock recommendations and scenario analysis

Confidential — All Rights Reserved — EY 2017

Customer Journey: Current State

Confidential — All Rights Reserved — EY 2017

Current State Customer Journey
E-Account

Lead Generation Lead Lead Customer

Management Allocation login

 MPIB  LMS (SalesTrack)  Manual  MPIB/OTS/PIB

 PIB
 OTS

Aadhaar/ PAN E-sign

verification Documents IPV* via Video
upload application
Chat form

 UIDAI integration  Focus  Skype  MPIB/OTS

 NSDL integration

Account Document Welcome

Opening Mgmt. E-mail

 Focus  DMS

* In-person verification

Confidential — All Rights Reserved — EY 2017

Current State Customer Journey
Branch

Lead Data Entry Data mgmt,

Lead Generation Management

 Customer Walk-in  LMS (SalesTrack)  I-Boos  Focus

Account Document Welcome

Opening Mgmt. E-mail

 Focus  DMS

* In-person verification

Confidential — All Rights Reserved — EY 2017

Approach & Methodology

Confidential — All Rights Reserved — EY 2017

Phase Wise Approach

We recommend a phase wise approach i.e.

Phase 1 –Revamp of securities business process and technology transformation
Phase 2 – Robo advisory and automation

► Market study covering Equity, mutual fund and commodity products highlighting leading
practices on mobile channels and web for competition
► Identify market best practices and make recommendation for building research and
analytics capabilities
► Add new features to PIB platform – Commodity options & Algo based trading
Phase 1: Revamp of
► Identify and oversee implementation of reporting capabilities – regulatory reports (to
securities business
SEBI), internal MIS (sales, ops, profitability etc.), customer reports (real time portfolio
process and
valuation, profit & loss statements, capital gains statements etc.)
technology
► Understand current application stack and suggest application rationalization to reduce
transformation
multiple systems
► Ensure design of customer journey, UX & UI for existing mobile application (MPIB), high
volume trading platform (PIB) & OTS
► End to end project management of application architecture including ESB & Salesforce
► Oversee Analytics vendor selection and evaluation for new BI Tool

► Build & implement Robo advisory capabilities which can be leveraged by both Customer
Phase 2 and RM
Robo advisory and ► Service request resolution automation through IVR
automation ► Chat-bot, Live Chat (ability to directly connect the customer to relevant RM) and voice
based customer acquisition and servicing
Confidential — All Rights Reserved — EY 2017
Scope of Work for EY
1 2
Market study
Conduct market study across
Action
steps
customers, products, channels
and competition
► Market overview and trends:
Growth drivers, emerging trends
(eg: digitization, Robo advisory
etc.)
► Customer Preferences and customer
needs
► Products Equities + F&O,
Scope Elements
commodities + F&O, currency
derivatives and mutual funds
► Channels: RM, Digital / Robo,
Branch
► Competition: Study and benchmark
competition business and operating
models
► Study and recommend
implementation of Research &
Analytics capabilities
Confidential — All Rights Reserved — EY 2017
Business Process
Design
Design Front to Back Business
Process Workflow
► Create front to back business
process workflow covering lead
generation, lead management,
customer onboarding and
customer servicing & retention
3 4
UX and UI Designs
Re-Define Customer Journey
and design Omni channel
experience
► Product in scope: Equity + F&O,
Commodity + F&O, Mutual
funds and currency derivatives
► Channels in scope: existing
MBIP and PIB
► Ensure design of UX Wireframes
for mobile app and trading portal
► Ensure Visual designs provide
superior customer experience &
repeat transactions
Business Requirements
Define the Business
requirements for the To-State
► Define the to-be state
requirements for customer mobile
app, trading terminal
► Define the Business requirements
for reporting capabilities
► Define requirements for research
and analytics capabilities –
integration with stock exchanges
etc.
► Define requirements for ESB &
Salesforce implementation
► Identify vendor for old corporate
actions data
Scope of Work for EY
5 6
Application Architecture and
Vendor Scoping
Action
Design of Application
steps
Architecture and Assistance in
vendor scoping
► Assess the Current state
architecture
► Design the To-be state
Application architecture
► Prepare Service Level
Agreement & performance
Scope Elements
parameter
► Review of vendor scope from
overall program point of view
► Identify dependencies and
implementation risks
Confidential — All Rights Reserved — EY 2017
7
End-to-end Program Management Go-Live
System Build + Integration Testing Handover and Transitioning
► Prepare test cases for system ► Prepare handover / transition
► Identify the customization testing plan
requirement
► Prepare test cases for UAT ► Conduct Handover and
► Define the project plan with the Knowledge transfer to <Client>
vendors ► Oversee User Acceptance
personnel
Testing
► Work with product vendors to
create parameterization document► Conduct training for internal
user
► Design Integrated Project Plan
► Oversee integration of various IT
applications to be done
by IT vendors
► Review System
Requirements
Documents prepared by vendors
► Conduct System Integration
Testing
We envisage 8 workstreams in the end to end Implementation of the program

1  Study in scope customers, products, channels and competition

Market study  Study and recommend Research & Analytics capabilities to be implemented

2  Create front to back business process workflow covering lead generation, lead management, customer onboarding and
Business Process Design
customer servicing & retention
Program Management and Integrations

3  Gather business requirements for system build out as per re-designed processes
Business Requirements  Define technical design document for implementation

Front End Platform  Ensure design the UI / UX Wireframes for Mobile app and trading portal
4
(UX/UI, Customer Mobile app, trading Portal,  Ensure Visual designs provide superior customer experience
Robo advisory platform)  Robo advisory UI / UX wireframes

 Identify software vendors for regulatory, customer and internal reporting

5
Reporting capabilities  Define business requirements and identify where data will be generated and stored
 Design dashboards for customer and internal management

6  Identify the appropriate BI tool and vendor for old corporate actions data
Research & Analytics  Oversee Integration and implementation with core and peripheral systems

7
 Integration of ESB & Salesforce with front end platforms (MPIB, PIB & OTS)
ESB & SFDC implementation  Integration with external parties such as Aadhaar, NSDL, Payment gateway, stock exchanges etc.
 Integration with Focus, e-stock, E-com, DMS etc.

8  Perform SIT Testing

Testing
 Facilitate UAT testing & performance testing

Confidential — All Rights Reserved — EY 2017

Functional Architecture

Confidential — All Rights Reserved — EY 2017

Current State Functional Architecture
ILLUSTRATIVE

External
HDFC, ICICI,
Axis, Yes, ICICI
Front end

OTS (web
Aadhaar MPIB (mobile) PIB (trading)
portal)

NSDL

Payment LMS (Galaxy sales trek)

Gateway

Stock
exchange iBos

Email / SMS
Focus (Core system) E-stock E-Comm
service provider

Talisma (CRM) BI Tool DMS

Confidential — All Rights Reserved — EY 2017

Future State Functional Architecture
ILLUSTRATIVE

Banks Front end

OTS (web OTS to be

Aadhaar MPIB (mobile) PIB (trading) replaced with Email / SMS
portal)
IBM WAS? service provider

NSDL

Payment ESB
Gateway

Stock
exchange / Focus (Core CRM - E-
I-Boss E-stock DMS BI Tool
Old data system) SFDC Comm
vendor

Databases – MIS /
Analytics
Bloomberg, Reporting
Morningstar
etc.

Regulatory Customer Internal

Automated Real time Portfolio Sales

reg. reports value
Productivity
P&L statement
Profitability
Capital Gains
SLAs etc.
statement etc.
Confidential — All Rights Reserved — EY 2017
Proposed Project Timelines

Confidential — All Rights Reserved — EY 2017

Delivery Plan

1st July After Go-Live

Ongoing User
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 adoption for 1
year

Market study

Business Process Design

Business Requirements
Front End Platform
(UX/UI, Customer
Mobile app, trading
Portal, Robo advisory
platform)
Reporting capabilities Reporting Requirements and
Development Testing
templates design
Research & Analytics Reporting Requirements and
templates design Development Testing
ESB & SFDC
implementation Development
Core system Update
(Focus, Ibos) for API
services Development
SIT Testing

UAT

Business Readiness After Go Live-

Handholding and
Ongoing User
Deploy adoption for 1 year

Drop 2- Go Drop 3- Go
Live- SFDC, Live- Reporting
Drop 1- Go Live- Capabilities
Research and Front end
Confidential — All Rights Reserved — EY 2017 Analytics platform, ESB
Go Live
Credentials

Confidential — All Rights Reserved — EY 2017

Business Strategy and operational excellence

CASE STUDY

• Client is one of the leading brokerage and wealth management firm in India 1.2
CLIENT
PROFILE • As a part of its growth and digital strategy, it was seeking to undertake front end transformation for its sales
and operations staff through build out of a CRM system

• Define Business Requirements for client profiling

• Conduct a diagnostic study across branches , central operations and corporate office to identify pain
points and of required use cases to be implemented
EY ROLE • Define required functionalities and especially functionalities shared among different UI.
• Build detailed user screens and system requirements document which should be the basis of an RFP
• Define Business Requirements for marketing and customer engagement campaigns

• Documentation of key processes across branch , operations , research contact centre

VALUE • Documentation of business requirement s for design and implementation of CRM tool
DELIVERED • Design of key customer journeys for sales process, cross-sell/up-sell and customer engagement
• Design of prototypes of user screens ( UI/UX) for various user groups for CRM

Confidential — All Rights Reserved — EY 2017

Business Strategy and operational excellence

CASE STUDY

1.2
CLIENT • Client is a large industrial house who wanted to enter the wealth management and equity broking industry
PROFILE • EY assisted in the market study and assessment (including a Go-No go decision) and strategy formulation

• Market study of customer preferences & buying behaviour, products (equity, mutual funds, insurance,
PMS, family office etc.), competitor business and operating models and channels
EY ROLE • Study of various existing and emerging operating models including Robo advisory
• Design customer acquisition strategy, operating model, organization structure and financial plan
• Developed location assessment model to identify geographies to launch services

• Prepared feasibility report to enable client to take a decision on whether to enter the market
VALUE • Documentation of key processes across customer acquisition, cross sell and customer servicing etc.
DELIVERED
• Documentation of business strategy and business plan

Confidential — All Rights Reserved — EY 2017

Relevant India AMC & Securities Market Credentials (1/3)

BNP Paribas Securities Doha Brokerage & Leading Depository BSE Limited
Services, India Financial Services Ltd Participant and Custodian

Solution: Solution: Solution: Solution:

Assistance in conducting a market Assistance in feasibility study and Assistance in drawing up the strategy
intelligence scan of Custody, Assistance in feasibility study and
business planning for the proposed NBFC foray and operating model for setup of a SME
Derivatives clearing, Fund accounting preparing the RBI application for
and Transfer Agency Business in India exchange
NBFC setup
and identifying opportunities for the
client

This announcement appears as a matter of record only. This announcement appears as a matter of record only. This announcement appears as a matter of record only. This announcement appears as a matter of record only.

Leading broking house Arthveda AMC Oldest Mutual Fund Canara Robeco AMC
Solution:
Solution: Recommend strategy for entry into Solution:
Assistance in assessment and Indian Mutual Fund Assistance in designing target
identification of non-banking financial Solution: operating model, cost benefit analysis
services opportunities Data Migration initiatives to provide for outsourcing of Custody and Fund
assurance to the management that the accounting activities, Vendor
data migrated to the RTA is complete evaluation selection of outsourced
and accurate
service providers and project
management of implementation

This announcement appears as a matter of record only. This announcement appears as a matter of record only. This announcement appears as a matter of record only.
This announcement appears as a matter of record only.

Confidential — All Rights Reserved — EY 2017

Relevant India AMC & Securities Market Credentials (2/3)

Largest private sector Private sector Asset Largest public sector Large size private bank
bank supported Asset Management Company bank supported AMC supported Asset
Management
Management
Solution:
Development of Standard Operating
Solution: Procedures Manuals for all the Solution:
Assurance on application controls for Functions, including Investment, Assistance in developing a cost
investment management and Solution: Operations, Marketing and Sales, allocation model with the objective of
accounting system, PMS system, Business continuity plan for the Investor Services and other functions providing clarity on cost allocation and
payroll and AMC accounting system company and also established a testing identifying the branch profitability
and assistance in redesigning investor and update framework
servicing processes

This announcement appears as a matter of record only. This announcement appears as a matter of record only. This announcement appears as a matter of record only.
This announcement appears as a matter of record only.

Leading Asset Foreign Investor Large size private Large size private bank
Management Company evaluating Indian AMC conglomerate mutual sponsored AMC
for acquisition fund and Asset
Management Company Solution:
Solution: Solution: Documentation of IT process as per
Assistance in Post merger integration SOX requirements by performing
including evaluation of fund Assessment of the operations and process walkthrough. As part of the
technology with the objective of Solution:
accounting set up, vendor selections Risk Management Assessment walkthrough, we benchmarked
identifying the key strengths and implemented IT general controls to
and program assurance for IT weaknesses internal control practices
implementation

This announcement appears as a matter of record only. This announcement appears as a matter of record only.
This announcement appears as a matter of record only. This announcement appears as a matter of record only.

Confidential — All Rights Reserved — EY 2017

Relevant India AMC & Securities Market Credentials (3/3)

Association of Mutual Medium size private Foreign bank supported Foreign bank supported
Funds in India conglomerate mutual Asset Management Asset Management
fund and Asset
Management Company
Solution: Solution: Solution:
Assisting the regulator in refreshing Involved risk assessment for all Involved risk assessment for all
the risk management guidelines for processes with respect to expected processes with respect to expected
Mutual funds in India Solution: growth of operations both in terms of growth of operations both in terms of
Risk Management Assessment scalability and capability scalability and capability

This announcement appears as a matter of record only. This announcement appears as a matter of record only. This announcement appears as a matter of record only. This announcement appears as a matter of record only.

JV based Asset Global Investment bank Large size private

Management Company backed AMC conglomerate mutual
Solution:
Documentation of operating fund and AMC
procedures covering Solution:
Operations ( viz., Fund Accounting, Process Due diligence and assistance
Cash Management, Custody and R&T in post acquisition integration Solution:
agents), Information Technology, procedures for their acquisition of
Compliance, Sales & marketing and Indian Mutual Fund. The engagement Development of Standard Operating
Investment involved process reviews and project Procedures Manuals for all the
management for Compliance and Functions, including Investment
share holders services group Front and Back Offices, Marketing
and Sales

This announcement appears as a matter of record only. This announcement appears as a matter of record only. This announcement appears as a matter of record only.

Confidential — All Rights Reserved — EY 2017

Our Capabilities & Experience

Confidential — All Rights Reserved — EY 2017

About EY
# 1 full service professional services firm globally

EY Globally

1,90,000+ people
► Market Leader for service offerings across Business Advisory, Assurance, Tax & Transactions

► > 150 years in professional services

150 countries
► Combined global revenues of ~ 27 billion USD

► Advisor to ~ 70% of global fortune 500 companies globally

728 offices

EY in India

11,000+ people ► #1 Professional services brand in India – TNS 2013, 2011

► Winner, Best overall consultancy , for 4 consecutive years – Operational Risk & Regulation

13 cities ► Largest M&A investment bank in India by number of deals for the past 8 years consecutively

► Among India’s tier-one tax firms (top 5 players) for the 11th consecutive year – Euromoney ITR, World Tax Guide 2014
250+ partners ► # 1 CRM Watchlist Elite Distinction, 2015

EY has assisted many organizations across the business value chain ranging from capital raising, new business setup, market
expansion, organizational revamp and business transformation

Confidential — All Rights Reserved — EY 2017

Financial Services Advisory: Overview
Financial Services is a focussed vertical within our India advisory practice

We serve 75% of the Indian Financial Services Industry (by total assets), 50% of private sector insurance companies (life and non-
life) and 50% of the top 10 mutual funds

650 FS Global Talent FS Advisory India –

23 partners 500+ people $ 25m Revenue Revenue growing at ~30 % Y-o-Y
Hub specialists Key Statistics

Practice Key highlights of the practice Partners Team

► Largest banking strategy advisory practice among Big 4 professional services firms
Performance ► Dedicated payments team with strong sector expertise
Improvement and • Mahesh Makhija 60+
► Experience of working with ~ 70 % of banking & capital markets firms on BSE 200
Digital Practice • Fali Hodiwalla
► Experience of bank build out, operationalization & major business transformation exercises

FSRM ► Largest risk advisory practice (> 50 % market share) among Big 4 professional services firms • Pratik Shah 65+

• Farrokh T
Compliance ► Experience of working with the largest and most complex financial services organizations 130+
• Rajeev Arora
► India among the 8 global advanced security centers for EY • Basant S
IT Risk 85+
► Largest SOX advisory team among Big 4 professional services firms • Kartik S

IT Advisory and ► Market leader in IT advisory for financial services • Sachin Seth
Digital ► Experience of 20 + core banking implementation projects • Nilesh N 50+
transformation ► Extensive vendor connects & ready depository of over 3700 CBS test cases • Yadhunath S

People and ► One of the largest HR advisory practice area, with FS sector focused specialist team • Ryan Lowe 100+
Organization
► Leading tax advisory firm in India • Anish T
Tax and Regulatory Provide clients full spectrum of tax advisory with specialization in niche areas
► • Subramaniam K 140+
Support Wide experience in assisting several Indian and foreign banks on regulatory aspects
► • Hasina Chhil

Confidential — All Rights Reserved — EY 2017

We have provided performance improvement advisory services to clients across
multiple sectors

Solutions

Customer Customer Collections & Risk

Business Strategy Operations
Acquisition Engagement Management

Housing

Real Estate
financing
Business Lines

SME lending /
Agri finance

Auto Finance

Microfinance

Confidential — All Rights Reserved — EY 2017

Risks and Dependencies

Confidential — All Rights Reserved — EY 2017

Risks and Dependencies

 Product Configurations:-All the product configurations from the external vendors will be out of box solutions. Any increased level of customization can lead to
more development time thereby leading to impact on overall project timelines
 Set up of Infrastructure:- <Client> is going to manage all aspects of IT infrastructure such as Hardware/software procurement, Firewalls, installation and
maintenance, including Development, System Testing, UAT and Production environment setup and deployment for all applications.
 Timely sign offs:- Timely sign offs from client stakeholders from weekly sprint sign offs to each milestone signoff as mentioned in the project plan will be
required. Any delay in signoffs from client side will impact the project timelines
 Set up of Infrastructure:- <Client> is going to manage all aspects of IT infrastructure such as Hardware/software procurement, Firewalls, installation and
maintenance, including Development, System Testing, UAT and Production environment setup and deployment for all applications.

Confidential — All Rights Reserved — EY 2017

Sample CVs with Securities Expertise

Confidential — All Rights Reserved — EY 2017

 Badal Jalan
Senior Manager
Background
► Senior Manager – Financial Services,
Mumbai
► 10 years of extensive financial services
Professional Certifications:
► Associate of the Institute of Chartered
Accountants of India in 2006.
► Bachelor of Commerce, University of
Mumbai, 2004
Skills
► Securities Expertise
► Process & controls design/improvement
► Standard operating procedures/ manual
Confidential — All Rights Reserved — EY 2017
Professional experience
► Badal has worked on several engagements for leading brokerage companies. This involved
• Understanding the various processes of the organization and developing the process flowcharts
• Developing Risk & Control Matrices (RCM)
• Perform walkthroughs and test of controls
► Review of Equity & derivatives Transactions of largest institutional broking desk in India. The scope included processes
around account opening, Dealing room operations, staff trading, statutory reporting, brokerage, credit utilization etc.
► Documentation of ‘As is’ processes and high level diagnostic of broking business for the leading brokerage house in India
► Review of the account opening process for a leading Brokerage house. The scope also consisted of testing whether the
in focus accounts have complied with account opening regulatory requirements/ have the necessary documents as
required by regulatory KYC guidelines
► Regulatory review of equity operations of a leading security company in India. The project entailed review of the controls
relating to the regulatory reports and providing recommendations for improvement
► Team leader for engagements for leading brokerage companies in India
► Team leader for developing SOP for one of the leading wealth management company. The products covered included
► Fixed income products, Third party products, Real estate, equity research support and others. The SOP also contained
the process for granting limits / exposures from group NBFC company for margin and IPO funding
► Process due diligence of leading commodity exchange in India.
► He assisted leading brokerage house in documenting manuals for its investment banking business
 Bhawik Kamani
Manager
Background
► Manager – Financial Services, Mumbai
► 10 years of extensive financial services
Professional Certifications:
► Executive MBA, Mumbai – 2014
► Masters in Commerce , University of
Mumbai ,2008
► Bachelor of Commerce, University of
Mumbai, 2006
Skills
► KYC/AML
► Securities Expertise
► Process Reviews
► Process & Controls design /
improvement
► Compliance Review
► Sarbanes Oxley Compliance (SOX)
► Risk and Compliance frameworks
► Standard Operating Procedures
Confidential — All Rights Reserved — EY 2017
Professional experience
► Bhawik has worked in the area of Credit, Operations and Collection covering both Retail and Corporate segments.
► Led teams in performing engagements for leading brokerage houses.
► Led teams in conducting a review for leading brokerage firms to comply with SEBI mandated Research Analyst Regulations, 2014.
► Led team in a SOX assignment which involved testing for all brokerage processes such as Account opening, Order execution,
► Clearing & Settlement, Account Management and HR.
► Led a team which involved documenting and testing processes of six subsidiaries (NBFC, Broking, Asset Management,
► Investment Banking) from a SOX compliance perspective of a leading private sector bank.
► He has managed a team for a large private sector Mutual Fund in the areas of Customer Onboarding, Fund Accounting,
Investments Management, Portfolio Management, Custody, Sales, Marketing & Investor Services, Compliance and Valuation
of Investments.
► Led a team which was working for a listed NBFC wherein the assignment involved to the assist in investigating fraud
cases and suggesting necessary disciplinary action and business process recommendations.
► He has led a team in a KYC/AML remediation and recertification engagement which involved assisting the Bank in
performing CDD procedures for its customers in the Corporate Banking business across three countries (India, Hong Kong &
Singapore).
► Worked for large banks and financial companies in India which involved reviewing KYC procedures and performing
sample tests to validate compliance with KYC and CDD procedures.
► Detailed process review and gap analysis of investment banking and advisory business of a leading Firm including IPOs,
Private equity, Venture capital, Open offer and Advisory.
 Sishira Nair
Senior Consultant
Background
► Senior – Financial Services, Mumbai
► 7 years of extensive financial services
Professional Certifications:
► Masters in Business Administration in
Finance, IBMS Mumbai (2010)
► Bachelor of Commerce, Model College,
Mumbai, 2006
Skills
► KYC/AML
► Securities Expertise
► Process Reviews
► Process & Controls design /
improvement
► Risk and Compliance frameworks
► Standard Operating Procedures
Confidential — All Rights Reserved — EY 2017
Professional experience
► Sishira has worked on engagements for leading brokerage houses.
► She has conducted a review for leading brokerage firms to comply with SEBI mandated Research Analyst
Regulations, 2014.
► Handled Process Risk Reviews & Improvements, Cost cutting and Risk Management, PMLA Review, SEBI
Insider Trading Regulations etc. for some of the TOP Broking Firms
► She has performed integration support for retail broking house
► She has performed process reviews for several leading global and Indian broking entities. It also included
developing the manuals, checklists and templates.
► She was a part of developing a compliance repository and framework for the business for a leading broking
houses.
► She has been on various teams for brokers in India which involved reviewing KYC procedures and
performing sample tests to validate compliance with KYC and CDD procedures.
► She has performed several broking and operational reviews for leading broking houses which involved
reviewing the processes and control environment and identifying improvement opportunities
► She has worked with several broking houses in India which included assisting the documented processes,
risks and controls across all the departments . It involved mapping the process landscape, prepare process
flows and identifying opportunities to strengthen the control environment.
► She has also performed several compliance reviews for broking companies as part of a larger program
across several years. Conducted several branch visits and sub-broker across multiple locations in India for
leading broking houses
Appendix

Confidential — All Rights Reserved — EY 2017

Assumptions and Exclusions for the engagement (1/2)

<Client> will:-
 Provide the inputs for all the processes, SOPs, controls and policies (customer acquisition, KYC) per the project plan to define business
requirements and provide timely signoffs.
 Manage all aspects of IT infrastructure such as Hardware/software procurement and sizing, Firewalls, installation and maintenance, including
Development, System Testing, UAT and Production environment setup and deployment for all applications..
 Manage all regulatory and statutory requirements that might arise during the scope of the project.
 Onboarding of Implementation teams/partners for development/exposing services on SFDC, ESB that will be consumed by all peripheral
applications(including third party applications).
 Manage all approvals, registrations and licenses required for consuming third party IP and services.
 Provide business teams for UAT testing. Final UAT sign off will reside with <Client> and onboard the production support team before UAT signoff.
 Need to audit the application for data and application security from third party since EY is the Implementation/SI partner
 Provide sufficient project space and infrastructure in <Client> Premises (Mumbai and Gurgaon) for the integrated project team (EY, <Client> team,
Vendor teams) in Mumbai to operationalize the project across streams. EY and <Client> teams will be available in Mumbai and Gurgaon as and
when required for interactions during project phase.
 It is assumed that Core systems such as Focus, iBos update will be limited to API services to be developed by Internal I.B Team. Moreover,
other solution components such as Financial Accounting system (SAP), any Fraud management system, treasury operations/system,
Cybersecurity etc are not envisaged to be changed as part of this program and hence are not considered in scope
 Existing <Client> I.T resources will be leveraged for implementation while additional manpower requirements will be handled by external vendor

Confidential — All Rights Reserved — EY 2017

Assumptions and Exclusions for the engagement (2/2)

 <Client> team will release PO/Contracts to respective software solution providers or their authorized partners to provide necessary software
and set it up/ implement their solutions , including design blue print , coding, development, configurations, testing and migration. Any
software configurations, development/coding is out of EY scope.
 Business strategy, operating model, organization design , salesforce productivity, outsourcing activities, third party tie-ups and SOPs
design/redefinition are not considered in the scope.
 It is assumed that solution components/implementation partners such as SFDC, Techzert , Snapwork etc used in <Client> Finance
current project will be same in <Client> basis which there will be limited vendor onboarding activity assumed.
 Group wide Data warehouse/Data mart is out of scope of this project.
 EY will do overall program management, business requirement documentation, overall architecture and System/Pre-UAT testing using it’s
own or business partner resources for specific skills. In case EY team is required to implement any specific solution component which is not
mentioned in the scope then a separate commercial and resource plan will be submitted for that scope.
 In case of project timeline extension due to any reasons or change in scope or additional support is required by <Client> team after
system go live, EY charges based on time and material will be paid additionally.
 Payment terms: 20% of the EY services cost to be paid in advance for project team mobilisation, remaining charges to be billed on monthly
basis.
 All the product configurations from the external vendors will be out of box solutions
 Performance /Load Testing is out of scope of this project.

Confidential — All Rights Reserved — EY 2017

Proposed Team Structure & Governance for <Client>

Project Governing Council Subject matter experts

EY Project Leadership
Client Project Leadership
Program Leadership

Sachin Seth

Process Analytics
Anand Mihir Jasjeet Singh
Project Management Office Benefits Realisation

EY Lead Architect EY Program Manager EY – Vinay Narkar

Client Leadership EY PMO
Inderjit Matta Hari Iyer Business User Adoption and
Representatives Rahul Jain
Benefits Realization Abonty (20 years in ICICI
)
Financial Services

Work stream #2: Work stream #4 Work stream #5

Work stream #1 Work stream #3 Work stream #6
Research and Reporting Work stream #7 ESB SIT UAT testing
Market Study Business requirements UX,UI, Front end SFDC
Analytics Capabilities

Anjali Jeevanan
Badal Jalan Bhawik Kamani Jayesh Raj Krishna Mudra Saptarsi Bose <Client>
Deswandikar dham K

• Jay Thakkar • Sishira Nair • Clive • EY resource 1 Prateek Kureel • Ankit Kandoi • EY resource 1 • EY resource 1
Functional Team

• Zain Ahmed Fernandes • EY resource 2 <Client> Team Members

• Gautam
Malhotra

UX, UI, Front end BI Implementation BI Implementation SFDC Implementation ESB Implementation
Platform Vendor Partner Partner Partner Partner

Confidential — All Rights Reserved — EY 2017

EY | Assurance | Tax | Transactions | Advisory
About EY
EY is a global leader in assurance, tax, transaction and advisory services. The insights
and quality services we deliver help build trust and confidence in the capital markets
and in economies the world over. We develop outstanding leaders who team to deliver
on our promises to all of our stakeholders. In so doing, we play a critical role in
building a better working world for our people, for our clients and for our
communities.

EY refers to the global organization, and may refer to one or more, of the member
firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst
& Young Global Limited, a UK company limited by guarantee, does not provide
services to clients. For more information about our organization, please visit ey.com.

The MENA practice of EY has been operating in the region since 1923. For over 90
years, we have grown to over 5,000 people united across 20 offices and 15 countries,
sharing the same values and an unwavering commitment to quality. As an
organization, we continue to develop outstanding leaders who deliver exceptional
services to our clients and who contribute to our communities. We are proud of our
accomplishments over the years, reaffirming our position as the largest and most
established professional services organization in the region.

© 2016 EYGM Limited.

All Rights Reserved.

ED None

This material has been prepared for general informational purposes only and is not
intended to be relied upon as accounting, tax, or other professional advice. Please
refer to your advisors for specific advice.

ey.com/mena

Confidential — All Rights Reserved — EY 2017