Intelligently Automating Business Decisions

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Intelligently Automating Business Decisions

• Illation Pte. Ltd. (Singapore)

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Illation Pte. Ltd.

• Steve Nunez
• President
• 65 9679 8360

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Market Conditions

• Financial services are changing
• Mergers and globalization increasing
• Neighborhood advantage decreasing
• Customer loyalty decreasing
• Loan products are more complex
• Margins are smaller
• Competition is stronger

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The Goal

• Better service
• Satisfied customers
• Increased market share

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Improving Margins

• Cross-selling and up-selling
• Automating and improving
• Loan quality
• Loan quantity
• Faster, better loan origination
• More consistent
• More accurate

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Beating Competitors

• Consistent, accurate decisions
• Delivered quickly
• Through multiple channels

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Who is Illation?

• Strong Intelligent Systems heritage
• Five years product development
• Established May, 2002
• Focused on Asian markets
• Able to deliver in native language

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What do we provide?

• Decision Technology Solutions
• Products
• Intelligent development platform
• Rules
• Case-based reasoning
• Consulting
• AI Solutions expertise
• Financial services domain knowledge

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Prior Engagements

• Mortgage Lenders
• Homeside
• Countrywide
• Upland Mortgage
• Fannie Mae
• Huntington
• Freddie Mac
• Mortgage.com

• Financial Services
• Citibank
• Chase
• American Express
• Downey Savings
• GMAC
• GE Capital
• Swiss Bank
• DBS Bank Singapore
• Standard Chartered
• HSBC

Other American Airlines Motorola GTE Bell
South Travelers Insurance American President Line
(Shipping)
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Solution Overview
Consulting Service
Automated Underwriting
Feature Based Pricing
Deal Structuring
...
Component Code Libraries
Intelligent Product Suite
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Product Overview
Underwriting
Marketing
Securitization
Origination

• Credit Check
• Document Management
• Conformance Check

• Underwriting Tools
• Correspondent Workbench

• Broker Workbench
• Deal Structuring
• Quoting
• Personalization

• Secondary Market I/F
• Securities I/F

Domain Applications
Domain Content / Components
Object Libraries Case Libraries Knowledge
Bases Currency Types 3rd Party I/Fs
Messaging Online documentation XML
I/F Configuration Workflow Load
Balancing
Reusable Services
Native DB Connectivity Presentation Layer
Connectivity Web Services COM/DCOM/CORBA/EJB
Integration Services
Core Technology
Platform Support (NT, UNIX, Solaris, Mainframe)
CBR
Rules Engine
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Process Architecture
Component-based
Bulk Sales
Whole- sale
Retail
Corres- pondents
Internet
Database
LOS/POS Interface Agent
2nd Mktng Pool Optimization Servicing Portfolio Pr
otection
Intelligent Workflow
Closing Doc Prep
Grading Auto Grading Smart 1003 Credit Screeners
Product Selection Investor Eligib. Loan Qualif.
Pricing Feature-based
Deal Structuring Counter offers
Processing Verification Appraisals
UW Auto UW DU Screener Compliance Checkers
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Success Stories
Industry leading provider of non-convential
mortgages Goal To keep customers at their web
site to complete the loan application over a
single or multiple visits. Solution the EasyLoan
Advisor
Uplands goal was to build an auto-mated loan
struc-

• turing system which allows customers to learn
  about their options, select the best loan for
  their needs, complete the application and get the
  loan all over the Internet.
• Proposes a truly custom-tailored loan package
  (not off-the-shelf loan alternatives)
• Reduces negotiation time from weeks to days and
  cross-sells other loan products

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Success Stories
HomeSide was a subsidiary of National Australia
Bank, and one of the top 10 residential mortgage
lenders in the nation. Over 250 professionals
use a Rules solution for real-time
recommendations Faster processing reduced by
41 Fewer errors reduced to near zero Lower
costs origination costs tumbled from 1,400 to
900 85-90 of business logic handled by a rule
engine.
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Success Stories
The Authorizers Assistant A sophisticated,
highly reliable automated credit authorizing
system that replaced stacks of manuals.
Increased number of approved charges Decreased
losses by 50 Increased customer satisfaction
Provided customers with the sophisticated level
of discretion and flexibility they have come to
expect from AMEX regarding spending limits and
authorizations
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Success Stories
Largest independent US mortgage lender wanted an
efficient system for accurately underwriting a
high volume of loans. Used rules to build CLUES
(Countrywide Loan Underwriting Expert System)
Automatically processes over 65,000
loans/month Saves over 5 million each
year Reduced review time from 50 minutes to
15 Improved customer service more quality time
with each customer
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Pricing

• Product
• Annual license
• Consulting services
• 40-50 of revenues
• differentiator

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Target Markets

• Financial Services
• 151 billion dollars spent annually on IT
• Illation has already worked with major regional
  customers
• Mortgage
• 3.0 trillion-dollar market
• Small Business Loans
• 789 billion-dollar market in 99
• Automated, end-to-end decisioning solution for
  lending for actual business funding, not just
  point of sale loan decisions.

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Outback Mortgage Co.
Internet Direct Brokers Correspondents ...

Product Selection Negotiation Application
Price Qualify Underwrite
Funded, Closed Sold/Portfolio Loans
Sell Pool Optimization Securitize Retain
Best Practices
Document Identification Document
Preparation Track Workflow
Close Fund
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Competition
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Future

• Expand into Asian financial services and
  Insurance markets
• Develop transactional rule based engines for FX,
  equities and commodities trading, including
  derivatives management.
• In Short Develop a real-time, active enterprise
  business rules server.