FOBISS Cash Management Enterprise for ATM network s and Branches

1. FOBISS Cash Management Enterprise for ATM networks and Branches

2. Executive Summary • FOBISS (www.fobiss.com) supplies advanced automation and intelligent control systems, as well as technologies and software to the continually evolving banking industry • FOBISSsolutions are highly specialized to help solve service delivery and management problems, improve retail banking cash supply. • FOBISS Cash Supply Chain Management is built to provide banks, CIT’s, ISO’s with the most advanced toolsto manage, improve and optimize cash supply chain, cash logistics, ATM and Branch cash management (forecasting, planning and optimization). • With FOBISS products Banks or Cash Management stakeholders can save up to 40 – 50 % of cash logistic related costs. We can help to optimize business by increasing profit and overcoming losses of resources and customers.

3. Main Benefits of FOBISS CM Enterprise • Reduction of cash related operating costs by up to 40 – 50%; • Automation of the existing procedure; • Improves quality of service; • Prevents and minimizes out of cash incidences up to zero; • Helps planning management time; • Simplifies training programs for new managers; • Individual real time self-learning of historic and momentous demand factors and constrains based on patterns at each particular cash point; • Cash demand forecast of each particular cash point; • Enables speedy data comprehension and decision making by operational management; • Controls and monitors management performance. • Cash Cycle Management of ATMs and Branches using single personalized artificial business intelligence system

4. Managing the Cash Cycle The challenges of managing the cash cycle involve two key distribution and delivery channels to customers: in the branches and via ATMs.

5. Average annual ATM operation costs • According to ATMIA, annual average operational costs per ATM are USD 15000*. • Statistically, approximately 40% of ATM costs are related to cash • FOBISS CM product helps saving up to 40-50% of ATM cash related costs. Actual numbers of specific ATMs may differ 5

6. Big headachefor a banks planning department • Heads of department responsible for planning have no transparency into the processes of cash logistics and have difficulties to forecast the optimal amount of cashrequired in each ATM and bank branch. • How to ensure ATMs and Branches are suppliedwith the optimum level of cash? It is a costly task. • It takes up much of the managementtime to supervise stocks and make decisions in relation to future supply consignments, etc. • It is difficult to forecast cash demand in different areas, at different time, in different denominations and etc. • Cash level in ATMs & Branches is usually too high... But what is the “optimal” level when the circumstances change too fast? • Dormant Cashmustbe “employed’’. It would be great to have “Tomorrow’s newspaper” today…

7. Dormant cash or why does cash sleep... • Banks are not aware of their cost of holding currency There is no clear visibility of supply network Sometimes, control of cash replenishment is outsourced to third parties • Banks frequently treat currency as a commodity Excess amount of cash is held to satisfy unknown customers demand With no reasonable forecast of currency demand, banks simply follow their risk departments’ upper limits • There are still many banks globally which have not yet centralized the process of currency management • Current surveys estimate dormant cash levels: in ATMsat 30 to 60% In Branches at 15 to 30 %

8. Why banks frequently have weak negotiating position against external service providers? • Simple fact: 20 - 40 % of cost in cash logistics is related to cash handling. • Third party Supplier Negotiation Banks frequently have no clear visibility of their cash logistics needs This puts them into a weak negotiating position vis-à-vis service providers • Order execution and management Cash logistics is not optimized “the way you need” by third party providers Banks still face the lack of automation and integration of the cash management services (i.e. manual service matching with invoices etc.) 20 - 40 % of cash logistics costs is related to cash handling

9. Current market responses There are cash supply chain management solution providers globally which offertheir soft ware to solve the problems of a centralized ATM network and/or Branches cash management, but: • Some of the systems are developed just for one hard ware manufacturer or heavily depends on it; • Some of the systems are developed just for the ATMs or just for the branches; • Fewcash management systems forecasting cash demand use more than one method/technique • NONE of them uses intelligent methods. • Why is it so crucial to use them?

10. The advantages of Artificial Intelligence FOBISS uses state-of-the-art technologies employing Artificial Business Intelligence engines. This makes FOBISS CM system extremely accurate and brings its user the greatest savings compared to other similar solutions currently available on the market. Artificial business intelligence engines as developed by FOBISS performs like a giant human brain. It enables to set take into account a very high quantity of business constrains customized to Cash Point individually. This allows to upgrade the Cash Cycle management into new business level. It adopts It is self-learning It predicts It assumes It analyses and suggests Its user the most valuable decisions It finds typical and untypical behavior of each Cash Point

11. FOBISS CM functionalities (1) Monitoring • Filter all ATMs/Branches in the network based on the volume of cash demand/supply; • Real-time view of cash status at each ATM/Branch. • Automatic alerts (SMS; Mails) based on high, normal and low level of cash; • Statistics of cash demand/supply for each ATM/ Branch (day, week, month); • Real-time cash demand/supply plots together with statistical averages. Optimization by key parameters • Market interest rates; • Cost of cash versus CIT visit volumes • Cash supply and logistics costs; • Insurance costs; • Physical constraints (min, max cash amount); • Any other user defined constraints

12. FOBISS CM functionalities (2) Forecasting of Cash Demand/Supply • Flexible adaptive artificial neural networks (ANN). ANN agent is employed for each Cash Point and learns complex relationships between input variables(constrains) and cash demand/supply. • Adaptive fuzzy expert systems (expert clone). Experts' knowledge is involved to form the initial cash demand/supply forecasting rules using user-friendly fuzzy logic interface. • Adaptive support vector regression. Support vector regression is special modification of support vector machine’s techniques dedicated to solve nonlinear regression problems.

13. FOBISS CM functionalities (3) CIT services • Automatic Cash replenishment daily report orders for CIT • Cash replenishment delivery status monitoring reports. • Automatic scheduling based on user defined constrains, forecasting and current status Intelligent analysis of ATM networks • Automatic identification of procedures in order to continuously supervise the ATM and Branch networks. • Intelligent analysis and early detection of the unexpected behavior of ATMs/Branches (or any other Cash Point) arecrucial for efficient networkperformance.

14. FOBISS CM Enterprise FOBISS Business Model – Enterprise or SaaS FOBISS CM SaaS

15. Case study of bank “X” (Europe) • Cash flow monitoring; • Optimal cash load in predefined period; • Optimal cash remainder; • Optimal incasation time; • Fast reaction to changes of interest rate or insurance cost or local events.

16. Business Value of FOBISS CM Solution Cost improvements by 19% Cost improvements by 46% * Costs related to cash (evaluated): Cost of Cash; Interest on cash; CIT and insurance (savings in EURO)

17. CASE study of bank “Y” (ASIA) Bank service network size: ~5000 ATM's Cash daily value in Network ~$60 million $4.27 million cash related costs* savings per year** The cash replenishment costs are $208 per ATM each month. * Costs related to cash (evaluated): Cost of cash; interest on cash ; ** based on historical data evaluation;

18. Next steps for • FOBISS would like to schedule a meeting in the near future for a live demo and to get your feedback regarding our proposed solution • If you are interested to continue, we will propose a way to assess real benefits FOBISS CM can generate to the bank, by launching a pilot to test our solution

19. Next steps • FOBISS would be grateful for your feedback on the proposed solution, and would like to schedule a meeting in the coming weeks for a live demo • We also would like to assess real benefits FOBISS CM can generate to the bank, by launching a pilot to test our solution • Ahead of the meeting, we also could simulate your institution’s cash cycle processes at our test labs and prepare possible system saving reports of your ATM and/or branch network • For that we would just need: • Sign an NDA • Provide minimum one year of transaction data from your[client] ATMs/branch network (of course with masked identities) (~ 20 % network size is enough for the pilot) • Fill the Questionnaire (which we will send to you/your client once the NDA is signed)

20. Company vision To make reasonable and smart, environment intuitive and adoptable provision of all services and goods in retail and retail banking sectors. Company values Innovationis our company’s energy; The People are our company’s engine and most valuable resources; We bring science close to business and Practical realization; Constant Changes are our opportunities; Impossible Solutions don’t exist for us; We Know How tomorrow will look like; Company mission Help financial institutions, banks, retail companies to make more efficient use of their available resources and more efficiently provide services and sell goods by improving profit. Contacts: a.karampolas@sigmahellas.org