Lending and Leasing Trends for 2017

2Copyright © Capgemini 2016. All Rights Reserved

Presentation Title | Date | Financial Services

Firms are consolidating their lending channel platforms to streamline operations

Information in Real-Time

Cross-selling Products

Decrease operational costs

Seamless Connected Experience

Source: Capgemini Financial Services Analysis, 2016

Enhance Operational Efficiency

3Copyright © Capgemini 2016. All Rights Reserved

Presentation Title | Date | Financial Services

Firms are leveraging new technologies to optimize their credit risk analysis

Optimize Pricing

Personalized Products

Decrease Processing Time

Dynamic Credit Management

Source: Capgemini Financial Services Analysis, 2016

4Copyright © Capgemini 2016. All Rights Reserved

Presentation Title | Date | Financial Services

Lending firms are transforming their operations for better efficiency

Business Process Improvement

Effective Monitoring

Automation79%

Mortgage lenders Agree/Somewhat Agree that industry is innovating to drive operational efficiency

2%Businesses operational expenses for online lenders of outstanding loans compared to 5-7% for traditional lenders

Source: Capgemini Financial Services Analysis, 2016; Mortgage Lender Sentiment Survey, Fannie Mae, Published July 2016; The path to profitable growth in retail lending, Nucleus Software, Accessed on Nov 2016 at http://blog.nucleussoftware.com/uncategorized/the-path-to-profitable-growth-in-retail-lending/

5Copyright © Capgemini 2016. All Rights Reserved

Presentation Title | Date | Financial Services

Firms are developing direct lending models in order to deliver positive results

Source: Capgemini Financial Services Analysis, 2016; Preqin Global Private Debt Report, 2016; Asset managers pour billions into direct lending”, Financial Times, accessed on November 2016 at https://www.ft.com/content/23bc5496-a026-11e5-beba-5e33e2b79e46

Diversifying Money Supply

Increased Supply of Capital

Predictable Yield$18.8

bn

In 2015, Europe focused direct lending funds raised $18.8bn in aggregate capital, a 48% increase from $12.7bn in 2014

$41.0 bn

In Dec 2015, European-based fund managers had $41bn ready to deploy in direct lending deals, twice as much as in 2012

6Copyright © Capgemini 2016. All Rights Reserved

Presentation Title | Date | Financial Services

Banks are collaborating with FinTech firms to nurture innovation and meet customer expectations

Diversify Portfolio

Innovation

Reaching Unbanked and Under-Banked Segments

Higher Return on Equity

$19.0 bn

FinTech investments have increased from $1.8 bn in 2010 to $19 bn in 2015

Source: Capgemini Financial Services Analysis, 2016; Digital Disruption, How FinTech is Forcing Banking to a Tipping Point, CITI, Mar 2016

7Copyright © Capgemini 2016. All Rights Reserved

Presentation Title | Date | Financial Services

Regulations are picking up pace in the online marketplace lending

Higher Rates Charged by Online Lenders

Remoteness and Anonymity of Online Transactions

Unconventional Ways to Assess Creditworthiness of Borrowers

Variety of Assortment of Credit Products Adds on Complexity

Source: Capgemini Financial Services Analysis, 2016

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Presentation Title | Date | Financial Services

Expectations of millennials are pushing forward digital transformation agenda

Collaborative Projects

R3CEV Hyperledger Project Ripple (Payments)

91% of millennials use smart phones to access their

account

92% of millennials would make a banking choice based

on digital services

Source: Capgemini Financial Services Analysis, 2016; Millennials’ are driving the digital transformation of the banking sector, BBVA, July 2016; Here’s where mortgage companies should invest in tech to reach Millennials, Mortgage coach, June 2016, https://mortgagecoach.com/heres-where-mortgage-companies-should-invest-in-tech-to-reach-millennials/

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Presentation Title | Date | Financial Services

Increase in digitization enhances cyber security concerns

Source: Capgemini Financial Services Analysis, 2016; Cyber Security Market - Global Forecast to 2021, Markets and Markets, 2016; Data breach statistics H12016, Gemalto, 2016; Cyber security: making banking safer, The Banker, Jan 2016; Cybersecurity Information Sharing Act of 2015, https://www.congress.gov/bill/114th-congress/senate-bill/754

Preventive Regulations

New Authentication Methods

Partnership with Specialized Vendors

Specific Roles such as Chief Information Security

Officer

$202 bn

Estimated size of cyber security market in 2021

10Copyright © Capgemini 2016. All Rights Reserved

Presentation Title | Date | Financial Services

Streamlining of lending processes by leveraging smart contract, blockchain, and IOT

Source: Capgemini Financial Services Analysis, 2016

Faster Contract Execution

Lower Transaction Cost

Transparency

Better Compliance

Better Collateral Management

11Copyright © Capgemini 2016. All Rights Reserved

Presentation Title | Date | Financial Services

Open marketplaces are gaining prominence

Source: Capgemini Financial Services Analysis, 2016

Faster Access to Credit

Increased Access to Credit

Emergence of New Business Models

Reduction in Cost of Operations and Lending

About CapgeminiNow with 180,000 people in over 40 countries, Capgemini is one of the world's foremost providers of consulting, technology and outsourcing services. The Group reported 2014 global revenues of EUR 10.573 billion. Together with its clients, Capgemini creates and delivers business, technology and digital solutions that fit their needs, enabling them to achieve innovation and competitiveness. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business Experience™, and draws on Rightshore®, its worldwide delivery model.

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The information contained in this presentation is proprietary.© 2015 Capgemini. All rights reserved.

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