Changing the DNA of BFSI

Investor Day | September 2016

Safe Harbor Statement

Certain statements in this release concerning our future prospects are forward-looking statements. Forwardlooking statements by their nature involve a number of risks and uncertainties that could cause actual results
to differ materially from market expectations. These risks and uncertainties include, but are not limited to our
ability to manage growth, intense competition among Indian and overseas IT Products companies, various
factors which may affect our cost advantage, such as wage increases or an appreciating Rupee, our ability to
attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame
contracts, client concentration, restrictions on immigration, our ability to manage our international operations,
reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability
to successfully complete and integrate potential acquisitions, liability for damages on our service contracts,
the success of the companies in which Intellect Design Arena has made strategic investments, withdrawal of
governmental fiscal incentives, political instability, legal restrictions on raising capital or acquiring companies
outside India, unauthorized use of our intellectual property and general economic conditions affecting our
industry.
Intellect Design Arena may, from time to time, make additional written and oral forward-looking statements,
including our reports to shareholders. These forward-looking statements represent only the Companys
current intentions, beliefs or expectations, and any forward-looking statement speaks only as of the date on
which it was made. The Company assumes no obligation to revise or update any forward-looking statements.
1

WHO ARE WE?

GLOBAL FINTECH
LEADER FOR BFSI

UNIQUELY FOCUSED
PRODUCTS BUSINESS

DESIGN PHILOSOPHY
PROVIDING
DIFFERENTIATION

Key Differentiators

DIGITAL

CONTEXTUAL

REAL TIME

192

Marquee Banks
Partnering with Intellect

CUSTOMERS

14

Comprehensive Product suite

covering entire gamut of
financial services

PRODUCT PORTFOLIO

92%

Ahead of schedule;
testimony of strong
execution

IMPLEMENTATION

Rs 811 Crores

On course to double the

revenue from listing (2015)
by 2018

REVENUE

10

50%+

Consistent margins

GROSS MARGIN

11

4,000+

Global workforce driving

innovation

EMPLOYEES

12

Business lines in various maturity stages

Monetization

Adoption

Growth

Catalyst
Incubation

80% efforts to achieve 20% return

Time Horizon

20% efforts offers

80% returns

Significant investment in R&D has provided a head start

Others
Incubation
Catalyst
Adoption
Monetization

One Markets

Xponent
(Risk Analyst)

iPay
(Card/Wallet)

Central Banks
Trade SCF

Payments

Wealth

Lending
Digital Core

One LRM

One Treasury

Distribution

Liquidity
DTB
14

Global human capital driving growth

4,000+

Associates Base

Talented and Engaged

Team - our pride and
differentiator

89

Strong
Leadership
Team
Comprises Sector
Specialists,
Competitors Pride &
Home grown leaders

911
Experienced
Middle Level
Management
Constitutes Bankers,
Capital Market
Specialists, Treasurers,
Technologists

~3,000

Passionate
Associates

Comprises Young,
Passionate, Agilers

15

Led by a world class management team

Arun Jain

S Swaminathan

Jaideep Billa

Manish Maakan

Venkatesh Srinivasan

Pranav Pasricha

Chairman & Managing

Director

Chief Financial Officer

Chief Executive Officer,

iGCB

Chief Executive Officer,

iGTB

Chief Executive Officer,

iRTM

Chief Executive Officer,

iSEEC

Rajesh Saxena

Michel Jacobs

Herber De Ruijter

Govind Singhal

Sudha Gopalakrishnan

Balaji Ganesh

Chief Executive Officer,

Intellect Payments

Head - New Market

Strategy

Head Product Council,

Digital

Chief Administrative
Officer

Head Product Quality,

Governance and Compliance

Chief Technology Officer

16
16

Led by a world class management team

K Srinivasan (KS)

Alfred J. Carpetto

Mark S.Wilson

Reid Warren

Business Head IMEA

Business Head Americas

Business Head Europe

Business Head Asia Pacific

17
17

On way to achieve highly profitable business

5th year of Listing

FY 14-15

FY 15-16

FY 19-20

Actual

Actual

Forecast

Licence & AMC

32%

33%

43%

Implementation Revenue

68%

67%

57%

GM (%)

50%

52%

60%

S&M (%)

32%

31%

23%

G&A (%)

10%

10%

6%

R&E (%)

20%

13%

5%

Others (%)

1%

1%

1%

Operating Margin (%)

(13%)

(3%)

26%

DETAILS
Revenue Mix

18
18

 2016, Intellect Design Arena Limited.

All rights reserved. These materials are confidential and proprietary to Intellect and no part of these materials should be reproduced, published in any form by any means, electronic or mechanical including photocopy or any information storage or retrieval
system nor should the materials be disclosed to third parties without the express written authorization of Intellect Design Arena Limited.

Da t e: Se pt ember 2 2 0 1 6

Enabling Business Aware

Banking & Payments
1
1

Three Forces of Change for FI s

Three forces of change

22 N

CONSUMER)

33N

TECHNOLOGY)

INDUSTRY)STRUCTURE)

The world of Banking & Insurance is changing

Banking &
Insurance
Companies

Source: Majesto Research

Software is eating the world

Mar k Andr eesen

4
4

#disruption (still) a myth?

Market is growing | Example: US

6
6

This change has a significant impact on the industry ...

Source: Majesto Research

And it is driven by digital adoption

Source: Andreessen Horowitz Research

The world in 2020 | 5bn people have a smartphone

Source: Andreessen Horowitz Research

Digital Age is transforming the industry as we know

Source: PWC Global Fintech Reoport 2016

10

Our customers take Digital strategically and are

accelerating their transformation programs

Source: AT Kearney Analysis

11

Why do our customers need Intellect Design?

Disintermediation is here and now

Why the rush? Re-bundling of the Bank is already happening

14

Challengers all around us | Insurance

15

Disrupters | SME Banking

16

Disruptors | Retail Banking

17

18

Disruption | Market Outlook across FI categories

Opportunity for Intellect Design

Source: PWC Global Fintech Reoport 2016

19

Opportunity or threat?

Relevant Trends in Banking

Source: PWC Global Fintech Reoport 2016

21

Relevant Trends in Payments and Fund Transfer

Source: PWC Global Fintech Reoport 2016

22

Relevant Trends in Insurance

Source: PWC Global Fintech Reoport 2016

23

Our Focus is on enabling FIs New #Digital Eco System

24

Ideal Customer Profile (ICF) in each Market

Segment

Our Sweetspot

25

Digital Strategy Technology Enablement

26

#co-exist
Build ecosystems,
and be part of others

#Disruption : Re-bundling of the Financial Institution

28

Opportunity (or Thread): API * based Eco System

through regulation (PSD2) or competition (rebundling)

* API = Application Programming Interface, see also: https://en.wikipedia.org/wiki/Application_programming_interface

29

Building Eco Systems through APIs

Uber in 2014

Uber in 2015

30

Banks have to choose a path to the future

Scenario 1
Digital CX
Scenario 2
Greenfield Digital

Scenario 3
Aggregator

Digital
Banking

Core Systems

Built-for-Digital Banking Platform

Banking
Services
Aggregator

Lean
Core

Fintech Providers

Fintech Providers
Fintech Providers

Core Systems

Scenario 4
Omni-Channel

Omni-Channel
Banking
Platform

Fintech Providers
Fintech Providers
Fintech Providers

31

API First and Platform Strategy to Aggregate and

Co-Exist with Fintechs
Extend the
Eco System

APIs | FIs Eco System and as Internal CoCreation Enabler

33

Product Offering | Alternative capitalization on

same Product IP
Part of Full Stack : Speed + Economics
No Restrictions : Flexibility + Control

34

#decomplex

Increase adoption
of digital channels

Disruption | Pressure on Cost Income ratio

Source: EFMA - Digital Transformation in 10 Building Blocks to boost

customer experience and return on Equity. McKinsey

36

Cost per user compared

37

Digital Adoption: No friction, easy to onboard.

38

Innovate on the Glass

Banking As
A Widget

40

Bespoke?

41

Asset: Knowledge Development

Industrialized UIs for Target Verticals

Netflix for Banking: Everywhere

15

44

Seamless Experiences despite the Technology

and Organizational Silos

45

Enabling Technology

46

Tailored Experiences through SDKs and Extension

Points

47

48

Harvest Data Insights: Contextual Banking

Best Next Offer

Best Next Advise

49

Machine Learning make interactions smarter

and very context aware.

Sour ce: Forrester Research, Mobi l e I s The New Face Of Engagement report.

50

Outside In: Intellects Contextual Digital Platform

OMNI-CHANNEL/API

DIGITAL SERVICES

PREDICTIVE ANALYTICS

SYSTEMS INTEGRATION

51

#aggregate
To remain relevant,
become a platform

A 2013 survey from Celent Research asked people what they want most in a
mobile financial app. The results showed that, more than anything, users want

Wishlist
customer
the ability
to view all their finances in one place.

Source: Celent Research on U.S. Mobile App Preferences, July 2013

53

Hierarchy of Needs applied to Financial

verticals customers
INSIGHT
How Am I Doing?
FORESIGHT
What Should I Do?

OVERSIGHT
What Do I Have and Where Is it Going?
54

Threat: Aggregated or be aggregated.

55

PFM and BFM: Financial Well Being

56

PFM and BFM: How am I doing compared to

others?

57

#bcommerce

Sell into Self Service

channels, and Improve
Conversion in Origination

Disruption | Margin Pressure

59

eCommerce for Banking

Operate Self Service Channels with Amazon-like
mindset

60

bCommerce and Digital Marketing

61

bCommerce: Campaign Management

62

Spending in Marketing Technology

63

#timetoconnect
#masscustomize
A-la-carte and
Full Outsource

This is why they buy: Time-to-Market

65

Why the Intellect Digital solutions: Mass Customized

Embrace and Extend: Expand our eco system.

Digital Product IP Superstore, or In-Store

Roadmap Acceleration and

Market Alignment: Co-Creation

69

Summary
Customer Centric approach: Context Awareness
will drive Interactions
Deep focus: We have Product IP and Knowledge
to get this right.
Solutions are attached to customers business
pains and ambitions.
Validated: Perfect Product-Market Fit.
Targeting segments with: best-of-breed and full
stack.

Our Ambition

Help Financial Institutions to Accelerate their

Digital Transformation through Productized Technology- and
Design Innovation, and make them True Customer Centric,
Business Aware and Emerge as a FinTech Leader.

71

Thank you