www.earnix.com

Integrated Pricing and Business Analytics Solutions Designed for Banking, Lending, and FinanceData driven decisions to achieve better performance

Using Data to Make Better Business Decisions

To compete in today’s sophisticated economy, it’s critical that your business decisions about pricing and other offer components take into consideration the abundance of data available and be made using the most advanced analytical techniques. Today’s consumers have come to expect highly personalized, relevant interactions with their service providers. It’s the new norm.

Is your decision-making based on this type of customer insight?With Earnix, banks can incorporate the same advanced analytics that make better business decisions possible for the tech giants, and enable them to present a highly customized user experience.

Banks and other financial service providers can orchestrate offers across their customer base giving them the ability to:

• Compete in the new personalized economy

• Deliver improved revenues and profitability

• Optimize offer components such as price and product features

• Integrate real-time data and analytics directly into operational business processes

• Use the most advanced technologies, such as machine learning, to make the entire process fast and efficient

Earnix has a long and successful track record of working with many of the world’s leading banks. As a re-sult, we offer the industry’s most comprehensive pricing & analytics software - as well as expertise gained

from working with these sophisticated institutions.

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The Banking Industry

Earnix’s solution suite for Banking provides the most comprehensive set of pricing and analytics tools designed specifically for the banking analyt-ics professional. The Banking Suite’s integrated modules work together and are flexible — in order to adapt to the needs of your evolving business. You’ll benefit from the increased efficiency and integration that comes from a single user interface, as well as the reliability that comes with not having to duplicate data - which can often be error prone.

As the user moves from one module to the next, results are delivered quickly — and in a consistent fashion — without IT support that is often needed from custom integration processes. Earnix offers the freedom and flexibility needed for analytics

professionals and teams to make quick business decisions.

After the initial set up, managers and analytics professionals can use the single interface without technical guidance. Minimal customization of the environment is needed, so you can be up and run-ning in a matter of days.

While Earnix offers the choice of either cloud or on-premise deployment, most select the cloud en-vironment because of the many benefits: fast and easy setup, improved security, minimal IT involve-ment, and minimal initial hardware expense.

In the banking industry today, pricing and business analytics directly affects customer decisioning and in turn the customer experience. Banks must take multiple data factors and inputs, organizational constraints, and regulatory imperatives into consideration when determining how to integrate pricing decisions into the operational process. Whether it’s managing discretionary pricing, determining market offers, setting rates and fees across the product portfolio, or better predicting and understanding customer lifetime value – Earnix provides the analytical decision support needed to move the organization forward.

The Earnix Banking Solution Suites

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Earnix Solution Modules

Data Management

This module helps banks integrate data from mul-tiple sources into a single repository for modelling. It imports, cleans, modifies, and prepares data for model building. It is designed to avoid the inef-ficiency of having to query external data manage-ment tools to perform simple actions.

Decision Optimization helps you understand busi-ness tradeoffs to maximize results. Combining predictive models across various dimensions ena-bles a holistic view of your banking portfolio. You can also easily add or change internal and external constraints to understand the implications on your optimized scenarios, dimensions, policies, and business goals. Management can be confident that the best possible product and price combinations to meet customer needs while optimizing company goals for price, volume, retention, and profitability are deployed.

What is the result of your price change? What are the conversion rates and how are customers responding?

Key performance indicators can be monitored to quickly understand if you are achieving your desired goals, or if

you need to modify your pricing or business decisions. Insights can be incorporated into the closed loop feed-back process to improve analytical projects and pricing

scenarios over time.

Monitor Customer or Competition Movement

with Ease

Decision Optimization

Decision Optimization provides both a granular and graphical view into proposed business tradeoffs.

Reporting provides detailed insights on the KPIs and metrics that matter most to your organization.

Reports and visual insights are only as good as the data and analytics that lie underneath. With Earnix,

you can easily share insights across the organiza-tion or lines of business quickly. Not only do you have access to both 2D and 3D reports, you can

create reports in a variety of formats, including bar and graph reports, scatter plots, box plots and heat maps, efficient frontier and sensitivity analyses, and geo- spatial reports. Business analytics profession-

als and managers can generate reports on their own and distribute them in multiple formats as required.

Insights can be gleaned by analytics professionals and executives quickly, and that information can be

used to make business critical decisions.

Reporting

Real-time integration translates into being able to develop, analyze, deploy, and present customer offers

almost instantaneously. Quick delivery means being more competitive, and being able to react quickly

to changing market dynamics. Once pricing projects and scenarios are executed in Earnix, they can be

transported via web services and API technologies to customer-facing channels and systems. These offers

can also be tracked for optimal governance and man-agement. The Earnix solution accesses a full library of tested offers that can be delivered in sub-second

times across various time periods and to downstream deployment software systems.

Release to Production to Execute Proposed Changes

in Real-Time

Visual ModelingAnalytics professionals have the ability to model risk, demand, conversion, and retention propensi-ties at the level of sophistication your organization needs. This can be done in a visual manner all while advancing the analytical maturity of your modeling efforts with machine learning and hybrid modeling techniques. All relevant diagnostics for model con-struction are available, providing a faster and more intuitive interface than other vendors provide.

What-if Simulation

Many pricing scenarios must be considered and compared in order to understand potential volume and profit trade-offs and then select the best op-tion. Develop refined estimates of the outcomes before you put the decision into the market using what-if simulation.

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Reduce the effort of regulatory compliance. Earnix increases accountability and retrieves the logic behind every strategy, giving organizations the information they require.

Adjust strategies and tactics based on market dynamics and receive immediate feedback. Earnix modules share critical data so you can develop and test accurate, robust customer models quickly and easily.

Discover the impact of offer, volume, and other variables on business performance. Earnix gives you the ability to predict and test the outcomes of decisions prior to deployment.

Increase competitiveness by enabling users to quickly analyze, determine, and deploy informed and actionable decisions. The Earnix solution enables you to make product adjustments in real time.

Accelerate the time-to-market of new product offer and price decisions.

A Complete Solution for the Predictive Analytics Era

Predictive analytics is no longer a nice-to-have. It’s a requirement for organizations that need accurate insights from their data — in order to make better decisions and achieve their financial goals.

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The Earnix Products can be used offline or integrated with existing operational systems — and are available as software-as-a-service in the cloud or through an on-premise installation. The solution is enterprise-architected, cloud ready, and works seamlessly with existing administration systems. It interfaces with other systems in a simple fashion using best-in-class IT protocols and advanced programming interfaces.

After the initial implementation is complete, the actuary or pricing analytics professional is empowered to operate the solution without any need for IT or Earnix involvement.

Analytical Technology that Serves Business and IT Agendas

The Earnix Team

Our analytics and data science experts are specialists in financial services. With hundreds of projects completed, they have become experts in advising on the best strategic uses of predictive and prescriptive analytics to improve business processes. Earnix team-members work side-by-side with you

during the initial project phase to build and test models - in order to ensure results are being delivered that are in line with initial project goals. Your professional services team will advise you on best practices to ensure a smooth and efficient implementation.

Earnix support teams operate 24 x 7 — they are always available to address issues that arise as required to support mission critical systems. Our support teams delight in providing exceptional service to our customer base. Our experienced engineers will work with you to resolve any problem quickly.

World Class Support at Your Fingertips

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Earnix Produces Significant Results for its ClientsEarnix clients see concrete results and improvements from the implementation of the Earnix Banking Suite. Success metrics often include increases in net interest margin, profit, volume and customer retention. Similarly, operational benefits like decreases in time to market are realized. Clients often cite ability to educate, improve internal processes, and advance analytical maturity as auxiliary results to detailed success metrics.

Banking “The implementation of Earnix’s customer centric pricing strategy resulted in NIM increase of € 2M month-over-month and provided a value of € 57M over a three-year time period.” Leading European Bank

“Using Earnix led to a 30bps lift in profit or a 7-8% increase.” European Bank

“Using Earnix Increased initial gross margin 6-8 bps, allowing us to reconstruct our rating structure which led to a 2X margin improvement, and reduced total pricing analytics cycle time by >80%.” Leading US Bank

“Earnix is a way to show results immediately, and in turn, get products to market faster.” European Banking Customer

Modern Enterprise Architecture: Creating Better Performance and Collaboration

Enterprise architecture provides a simple, scalable, and secure environment where users across departments can collaborate to make better and faster business decisions.

Simple: With quick deployment and easy access to the environment, users quickly create and or modify analytical projects without the need of IT assistance.Scalable: With cloud deployments hosted on Amazon Web Services (AWS), the solution can seamlessly scale as needed while providing a high level of resource elasticity and system flexibility. AWS technology allows for redundancy and resilience as needed.Secure: The Earnix solution, in combination with the AWS platform, adheres to all major international cloud security standards and protocols. These enterprise grade security protocols include ISO 27001 (Information Security

Management) and ISO 27018 (Protection of Personally Identifiable Information (PII) in public clouds acting as PII processors). The system is backed up daily, and recovery protocols are met for Business Continuity (ISO 22301 certified). Recovery plans from both a Recovery Point Objective (RPO) and Recovery Time Objective (RTO) have been established and are met. Earnix’s Network Operations Center (NOC) provides 24/7/365 system support and oversight. The environments are constantly checked from a trending and system health perspective.

With all of this in place, this architecture thoroughly supports the maintenance and audit requirements of the highly regulated financial industry.

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Accelerate with New Featuresto Stay One Step Ahead

For years, Earnix data scientists, financial experts, and software engineers have been continually improving the Earnix soft-ware with the newest industry advancements. The track record of innovation includes introducing advanced analytical and optimization techniques that are now used by the largest global financial services organizations. Our latest innovations include machine learning and open source integration, improved enterprise architecture, more sophisticated optimization algorithms, and business process automation. The result - even more advanced real-time analysis and decision-making ca-pabilities for financial services product management, marketing, and delivery professionals. Earnix has a long track record of helping organizations take tested and true analytical techniques and infuse them with the newest analytical methods – to scale their abilities and grow their business.

The Machine Learning Integrate Component: Better Accuracy and Decisions

Earnix enables the use of integrated machine learning, and in turn helps companies achieve more accurate, timely, and informative analytical results. Earnix is making industry- leading innovations in the area of machine learning, including partial to full integration with multiple best-in-class machine learning libraries, models, and algorithms. The degree of integration you choose is dependent only on your organizational analytic maturity. The result is more precise and accurate analytical models to produce deeper customer insights.Integration of H2O, a leading open-source data analysis, predictive analytics, and machine learning system, improves the accuracy and insight of models. Integration with XGBoost provides a framework to create more advanced gradient boosted models.

Earnix customers are already using machine learning models and techniques to inform their analytical projects and decisions, understand competitor movement at a more granular level, and pave the path towards the embracing of deep learning and neural networks in the future.Earnix Professional Services Consultants are well versed in machine learning algorithms, libraries, and integrations — as well as how to best use them. With their guidance, any skill, knowledge, or resource gap can quickly and easily be filled.

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The level of sophistication in analytical optimization projects continues to increase with the introduction and full productization of the discrete optimization solver. The discrete solver optimization algorithm allows organizations to optimize rating tables that include multiple variables where the relationship between the variables is critical (e.g. monotonic), while maintaining rates at the desired granularity. This algorithm facilitates solving optimization problems with discontinuities, or gaps in the demand function that might lead to local

maxima – which often can be a problem for standard optimization software.

The result of these new algorithms is that more complex discrete optimization scenarios are now possible, more dimensions with regard to monotonicity problems are accounted for, and better performance results against more complex data sets are being achieved.

New Rating Factors Optimization Algorithms

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Delivered as a software development kit (SDK), the process automation function enables you to build Javascript projects that automate common tasks, making the solution more efficient in your environment. Common, repetitive actions, such as data manipulation, model refitting, and project re-creation or versioning can be done with this Javascript enabled console. Using the Automate Module results in:

• Faster, error-free data imports and pricing project creation

• Reduced effort by automating complex and repetitive tasks

• Ability to share complex scripts and processes across lines of business

• Iteration of analytics, models, and business processes

• Quicker time to market with analytical insights from the Earnix solution.

The Automate Module: Speeding Time to Market

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www.earnix.com

Earnix HeadquartersHaShachar Tower in Givatayim, Israel is a 57 floor mixed use building. The tower now stands as the third tallest building in Israel and houses Earnix, among many other corporations and residents. Come visit us soon!

Corporate Headquarters4 Ariel Sharon St Giv’atayim 5320045 ILTel. +972 3 753 8292 Fax. +972 3 753 8293

US Headquarters191 Post Road West Westport, CT 06880Tel. +1-203-557-8077

UK Office23 Austin Friars London, EC2N 2QPTel. +44 20 3875 0940

About Earnix

Earnix provides advanced analytics solutions designed for the financial services industry, which deliver significant results by integrating data-driven decision-making into the business process. We enable financial institutions to better compete in a new environment of highly personalized services by using advanced analytics to determine pricing and other offer components. Our integrated technology platform provides users with the most comprehensive set of tools, including machine learning capabilities, and is often connected to real-time production systems. Earnix has extensive experience providing solutions to the most sophisticated banks around the globe, and has a track record of empowering executives to act quickly and confidently, making a direct and measurable impact on their key performance indicators.

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