Help Us Help You Evolve Via R&D

May 12, 2015

John Lankenau

VP, Head of Product Management

Why do businesses invest in computers and software?

a. To allow bored employees to keep up with their friends via Facebook

b. To increase job creation by allowing online shopping during work

hours

c. To do business processes better, faster and cheaper

Business software exists in order to:

• Automate repeated tasks

• Smooth information flow

• Enhance capabilities

Quiz

Simply put, software’s raison d’etre is to allow an institution

to do business processes better, faster and cheaper. This

drives everything we do.

Product Management

Listen, Talk, Think, Build…

What we’re hearing…

Reserving

• FAS 5 (with CECL glide path)

• IFRS 9 (and CECL)

• CECL

Stress Testing

• Growing banks with $10 billion in plans

o DFAST preparation

• Midsize banks (larger than $10 billion)

o Low hanging fruit phase

o More project than process

• Largest institutions (more than $50 billion)

o Looking to do things better

o Taking CECL into account

Workflow and Controls

• Generating model-based estimates as part of

a process

o Controls

o Aggregation

• Capture of human generated inputs

o Controls

o Efficiency

o Turning information into data

Reporting and Analytics

• What happened?

• Why?

• Forecasting

Data! Survey Says…

• Last year: 27 of 28 surveyed not satisfied with data and data

management

• This Year: 23 of 24 surveyed not satisfied with data and data

management

• February 2015 RMA Journal survey

o Majority of U.S. institutions surveyed disagree with statement that

risk data is “clean, comprehensive, accessible and timely”

o Highest level of concern about “difficult integration among systems”

o High level of concern about “lack of integrated risk and finance

reporting”

Despite heavy investment, data remain a challenge

nearly everywhere !

Common data challenges heard in the market

• Inability to do desired analysis because data

architecture does not support it

• Many sources for reports – inconsistent answers

depending on whom you ask

• Emailing, phone calls or other manual movement

of data

• Multiple sources for the same data elements

• Making data “application-ready” happens in many

places

• Etc…

Environment Makes List of Challenges Long

• Rapid changes

• Tighter regulation

• More complexity

• Increased demands for information

What is Evolv?

• Extensible platform

• Common components

• Purpose built for financial institutions

• Integrated risk and accounting

What is Evolv?

• All loans (securities)

• All the way from end to end

• All in one place – integrates finance and risk

All accounting standards

Stress testing

Forecasting

• Always – future proof delivery

Why an integrated platform makes sense

• Component-based architecture means

adaptability

o Example: CECL and FAS 5

o Example: Forecasting and stress testing

o Example: Manual review processes

• True integration of risk and finance

• True integration of processes and data store

Allows us to say “yes” without

starting from scratch!

Some recent things to which we’ve said yes

• New (proposed) liquidity coverage ratio reporting

requirements from Federal Reserve

o Life of loan cash flows for all loans and securities

o Run daily

• Participations accounting

• Enhanced forecasting of complex accounting

• Enhanced daily processing

• Performance reporting for LOB (including

spread)

What we’re working on…

• CECL

o Outreach

o Product is basically ready…but we know you’ll

challenge us!

• Integrated risk and finance workflow

• Tighter integration with operations

• Usability enhancements

• Enhanced forecasting

How You Can Help Evolv Help You

• Talk to us

• Let us know if there’s an initiative to change how

things work

Especially data projects

• Tell us if you agree or disagree with the way we

think about addressing challenges

• Ask us questions

• Participate in pilots