This document provides an overview of a presentation focused on meeting the SWIFT and corporate connectivity needs of increasingly sophisticated regional bank clients. The presentation covers topics like industry trends driving greater SWIFT adoption, SWIFT connectivity options, regional bank case studies, and how service providers like GXS can help regional banks meet corporate clients' needs through solutions like file translation and SWIFT connectivity services. The overall message is that regional banks must understand complex corporate connectivity requirements to serve middle-market and large corporate clients.

1. Patricia Hines, CTP
Director, Financial Services
Industry Marketing, GXS
Joe Barbieri
Global Account Executive
GXS
Focus on Regional Banking:
Meeting the SWIFT and Corporate Connectivity
Needs of Increasingly Sophisticated Clients

2. May 21, 2013 | Slide 2 © 2013 GXS, Inc.
About GXS
Industry Trends
SWIFT Corporate Access
Connectivity Options
Regional Bank Trends
Q&A
Session Agenda

3. May 21, 2013 | Slide 3 © 2013 GXS, Inc.
About GXS

4. May 21, 2013 | Slide 4 © 2013 GXS, Inc.
Leading Global B2B Service Provider
A Long-Term, Trusted Partner
Serving Customers in
61 Countries
45 Years
Experience
Exclusively in B2B
Integration
550,000
Businesses on
Trading Grid
14 Billion
Transactions per
Year
Serving 56% of
Global 1000
22 of Top 25
Global Supply
Chains
Leader in Most
Recent Gartner
Magic Quadrant
40% of Revenues
Derived Outside
the US

5. May 21, 2013 | Slide 5 © 2013 GXS, Inc.
Industry Leadership
Value-Added Solutions for the Financial Services Sector
GXS Specializes in
Corporate-to-Bank
Integration Solutions
Market Presence
• Over 250 FS clients in the Americas,
Europe, and Asia-Pacific
• 90% of commercial banks in the Fortune®
500 are GXS customers
• FIs serve tens of thousands of corporate
clients via GXS solutions
Solutions for the Financial Sector
• Managed Integration Services
• Client Enablement Services
• Integrated Treasury Management
• SWIFT Service Bureau
• MFT and Integration Software
• Cloud Applications for Commercial Finance
and Securities

6. May 21, 2013 | Slide 6 © 2013 GXS, Inc.
Treasury & Cash
Management
Card Issuing &
Merchant Services
Trade & Commercial
Finance
• Integrated Payables
• Consolidated
Receivables
• SWIFT Connectivity
• Multi-Bank
Payments
• Merchant
Enablement &
File Integration
• PCI Compliance
• ERP Integration
• Factoring
• Supply Chain
Finance
• Inventory Finance
• Dealer Floor
Planning
GXS in the Financial Services Sector
Enabling Connectivity and STP Across Industry Segments
Securities
• Connectivity for
Counterparties
• Order to Settlement
Lifecycle
Management
• Post-Trade
Exceptions
Group Benefits &
Employer Services
• Client Integration
for Group Insurance
• Payroll File
Transmission
• Claims Payment
Remittances

7. May 21, 2013 | Slide 7 © 2013 GXS, Inc.
Industry Trends

8. May 21, 2013 | Slide 8 © 2013 GXS, Inc.
Automation
Standardization
Centralization
Banking
Relationships
Economic
Climate
Costs
Labor
Manual Processes
Financial Management Today
Treasury and Finance Facing Multiple Challenges
Technology
Cloud
Mobile
Working Capital
Liquidity
Foreign Exchange
Supply Chain Finance
Corporate Social
Responsibility
Regulatory
Compliance
Integration
Standards
Protocols
Trading Partner
Relationships
Visibility
Financial
Suppliers
Supply Chain
Risk
Community
Management
Communication
Process
Data Quality
Matching/Approval
Compliance
Tax
Payments
Trade

9. May 21, 2013 | Slide 9 © 2013 GXS, Inc.
Challenges with Bank Interfaces
Treasury Organizations Want Real Time Information & Payment Execution
Traditional Bank Interfaces
Unique
connection and
file format for
each banking
relationships
Connectivity,
testing and
certification
required for each
bank
Leased
Line
Web
Portal
Internet
FTP
Fax
Standards Complexity
• Inflexible file format options and lack of ERP
integration (SAP, Oracle)
• Limited internet protocol support for AS2,
MQ, HTTPS, SFTP
• Rigid security policies (encryption, firewalls,
audits)
Operational Constraints
• Performance and capacity constraints
• Lengthy implementation times
• Limited knowledge of corporate ERP
• Varying capabilities and support processes
across differing regions (Asia-Pacific, Latin
America)
Lack of Integrated Interfaces
• Reconciliation challenges
• Limited visibility to cash and payment status
• Distinct interfaces per product line (Cash, FX,
Trade Finance, Securities Services )

10. May 21, 2013 | Slide 10 © 2013 GXS, Inc.
A World of Risk
• Banks Hit Downtime Milestone In DDoS
Attacks – April 2013
• Bank Cyber Attacks Pose Warning to
Corporate Clients – October 2012
• South Carolina reveals massive data
breach – October 2012
• Global Payments still tallying data
breach costs – March 2012
• Data Breach at RSA lined to Attack on Lockheed – May 2011
• Citibank Reveals Massive Data Breach – May 2011
• Fidelity National Information Services Database Hacked: $13 million
Stolen In One Day – May 2011
Source: Identity Theft Resource Center

11. May 21, 2013 | Slide 11 © 2013 GXS, Inc.
SWIFT Corporate Access
Business Drivers

12. May 21, 2013 | Slide 12 © 2013 GXS, Inc.
SWIFT Corporate Access
A Single Global Standard
Post
Web
Portal
Internet
FTP
Fax
FX
Confirmations
Investment Trade
Confirmations
ACH Payments
Wire Payments
Prior / Current
Day Statements
Prior Day
Balances
Company Financial Systems
Treasury A/P
A/ROther
Multiple Connections & Formats
Bank Mandates
Signature
Cards
FX
Confirmations
Investment Trade
Confirmations
Bank Mandates
Signature
Cards
Company Financial Systems
Treasury A/P
A/ROther
Standard Connections & Formats
ACH Payments
Wire Payments
Prior / Current
Day Statements
Prior Day
Balances

13. May 21, 2013 | Slide 13 © 2013 GXS, Inc.
What is SWIFT?
Society for Worldwide Interbank
Financial Telecommunications
• Consortium of member financial
institutions
• Started in 1973 to automate the telex
• Premier financial messaging standards
body
• Powers real-time gross settlement
systems globally called “market
infrastructures”
• >2.5B messages exchanged between
10,000+ financial institutions and
corporates in over 210 countries – largest
financial messaging network and
community in the world
• SWIFT develops and defines messaging
and standards for the financial services
industry
Source: SWIFT Standards Overview
Market Infrastructures
• Central Banks
• Settlement Systems
Customer Solutions
• TRCO
• MA-CUG
• SCORE
SWIFTNet
• 10,279
Correspondents
• 212 Countries
SWIFT Solutions
• FileAct
• Accord
• Trade Services Utility
• … and more
Secure
Financial Messaging
Global Financial
Standards
“The global provider of secure financial
messaging services”

14. May 21, 2013 | Slide 14 © 2013 GXS, Inc.
4.0
4.4
4.6
Q4 '10 Q4 '11 Q4 '12
SWIFTNet FIN Traffic
Billions of messages
Growth in SWIFT Messaging
Driving Adoption by Corporates of All Sizes
+ 17.4%
+ 19.1%
SWIFTNet FileAct Traffic
Billions of messages
Source: SWIFT
10.1
14.1
33.8
Q4 '10 Q4 '11 Q4 '12
+ 39.9%
+ 139.9%

15. May 21, 2013 | Slide 15 © 2013 GXS, Inc.
187
282
402
579
726
902
1,035
2006 2007 2008 2009 2010 2011 2012
Growth Driven by Corporate Adoption of
SWIFT
Number of Registered
Corporate Entities on SWIFT
Source: SWIFT

16. May 21, 2013 | Slide 16 © 2013 GXS, Inc.
Trends Driving SWIFT Adoption
Interest in SWIFT
Emerging Standards Better Risk
Management
Improved Cash
Management
Infrastructure
Changes

17. May 21, 2013 | Slide 17 © 2013 GXS, Inc.
• Corporate Drivers
– Increased SWIFT marketing
– Growing adoption among
corporates
– Single network to streamline
messaging and formats
– Centralizing treasury operations
– New products: AllianceLite2,
3SKey, eBAM, SWIFTRef,
Watch Analytics
Interest in SWIFT

18. May 21, 2013 | Slide 18 © 2013 GXS, Inc.
• Corporate Drivers
– Better visibility and more efficient
deployment of cash
– More frequent reconciliation of
balances
– Grow balances through interest rate,
currency hedging, derivatives, etc.
management
Improved Cash Management

19. May 21, 2013 | Slide 19 © 2013 GXS, Inc.
• Corporate Drivers
– FIN MT to MX message
standard evolution
– ISO 15002 to ISO 20022 for
Corporate Actions
– European Union’s migration
to SEPA compliant
payments
Emerging ISO 20022 XML Standards

20. May 21, 2013 | Slide 20 © 2013 GXS, Inc.
• Corporate Drivers
– Simplifying, optimizing, and/or
diversifying banking relationships
– Being more nimble to make
changes
– Sensitivity due to Global Financial
Crisis of 2008
Better Risk Management

21. May 21, 2013 | Slide 21 © 2013 GXS, Inc.
• Corporate Drivers
– Upgrading or consolidating
treasury technology infrastructure
– Replacing Treasury Management
System
– Marketing influences from SWIFT
(Alliance Lite2) and other Service
Bureaus
Infrastructure Changes

22. May 21, 2013 | Slide 22 © 2013 GXS, Inc.
Corporate-to-Bank Connectivity Options

23. May 21, 2013 | Slide 23 © 2013 GXS, Inc.
Multiple C2B Integration Options
Direct Integration (DIY) Concentration Bank Integration
SWIFT Integration Hybrid: SWIFT & Direct Integration
SWIFT
Service
Bureau
C2Bank
Integration
Service
Higher TCO, multiple standards
Constrained by bank’s capabilities
SWIFT bank data through concentration bank
Bank neutral, limit is bank SWIFT readiness
May use SWIFT Service Bureau
Lower TCO, global reach
Bank neutral, maximum flexibility

24. May 21, 2013 | Slide 24 © 2013 GXS, Inc.
Alliance Access
Alliance Access
SWIFT Alliance Solution SetInstitutionSize/MessageVolumes
Automation, Integration, Customization
Alliance Lite2 Alliance Gateway
SWIFTNet Link
HSMs
Alliance Messaging Hub (AMH)
Alliance Access Integration Platform
Source: SWIFT

25. May 21, 2013 | Slide 25 © 2013 GXS, Inc.
SWIFT Connectivity Options
• Customer-Owned
– Specific security requirements
– Full control over IT environment
including data storage
– Supports high traffic volumes
• Outsourced “Off-the-Shelf”
– Clear ramp-up path
– "Peace-of-mind" solution
– Scalable to your needs
• Outsourced Tailored
– IT environment managed by third party
– Using a shared infrastructure is not
critical
– Traffic requires medium to high volume
infrastructure
Source: SWIFT

26. May 21, 2013 | Slide 26 © 2013 GXS, Inc.
Alliance Lite2 – How it Works
Source: SWIFT

27. May 21, 2013 | Slide 27 © 2013 GXS, Inc.
Leased
Line
Alliance Web Platform
SWIFT Interface
VPN Box
SAA
ALLIANCE ACCESS
SAG
SWIFT
ALLIANCE GATEWAY
HSM Box
SNL
SWIFT Net Link
Visibility & Message
Management /
Monitoring
SWIFT Alliance Access
Solution Components
Client Systems
Licensed from SWIFT
• Primary Dual leg HA
• DR Infrastructure
• Both have 2 leased lines
to SWIFTNet
SOAP

28. May 21, 2013 | Slide 28 © 2013 GXS, Inc.
Choosing a SWIFT Service Bureau
• Can be daunting -- more than 130 organizations worldwide have
service bureau offerings
• SWIFT recently rolled out a new Shared Infrastructure Programme
(SIP), to certify service bureaus that offer third-party connectivity to the
SWIFT network
• A list of SWIFT Service Bureau meeting the various operational levels
defined by SIP can be found using SWIFT’s Partner Locator

29. May 21, 2013 | Slide 29 © 2013 GXS, Inc.
Regional Bank Trends and Case Studies

30. May 21, 2013 | Slide 30 © 2013 GXS, Inc.
Middle-Market and Small Business Clients
Drive Revenue for Tier 2 Banks
Large
Corporate
Middle
Market
Small
Business
Top 5 29% 27% 13%
Next 15 26% 32% 18%
Peers 2 & 3 13% 40% 35%
2011 Total 26% 30% 17%
Share of fee-equivalent
revenue by customer segment
Source: Ernst & Young 29th Annual
Cash Management Services Survey
Source: GE Reports

31. May 21, 2013 | Slide 31 © 2013 GXS, Inc.
Revenue from Electronic Products driving
Cash Management Growth
11.0%
6.0%
3.5%
1.5%
0.5%
-0.5%
-1.0%
-2.5%
-3.0%
-6.0%
-7.0%
-9.0%
-6.0%
-3.0%
0.0%
3.0%
6.0%
9.0%
12.0%
P Card Wire ACH/EDI Info Rpt ARP WLBX C&C RLBX DDA CDA Check
Source: Ernst & Young 29th Annual Cash Management Services Survey
Revenue growth rates for cash management products

32. May 21, 2013 | Slide 32 © 2013 GXS, Inc.
Single-Sign On / Multi-Factor
Authentication Portlet
Large Regional Bank
Extending Capabilities to Small/Medium Enterprises
Messaging Service
DataPool
(Unisys)
CIPG
(EG)
Customer Communication Facility
(CCF)
Bank
Online Banking for
Business Portal
Business Issue
• The bank wanted to extend the ability to upload payment files
and download information reporting files to small to medium
enterprises (SMEs)
• Legacy solution called File Transfer Facility (FTF) no longer
supported by vendor
• Need for low-cost Internet solution for small to medium business
customers not able to exchange files using machine-to-machine
solutions
• Multi-factor authentication required to comply with FFIEC
standards for online security
• Requirement for single sign-on to FTF solution through bank’s
online business banking portal
Solution Deployed
• Deployed Intelligent Web Forms (IWF) and Trading Grid for Excel
(TG4E) in the bank’s messaging service to provide SME client
access for file transfer
• Implemented multi-factor authentication and single-sign to allow
the bank’s clients to access the new file transfer client access
tools through the bank’s online cash management portal
Bank Clients

33. May 21, 2013 | Slide 33 © 2013 GXS, Inc.
Top Tier Global Bank
Overcoming Legacy System Limitations
Business Challenge
• This global bank’s core deposit system can
only generate information reporting (current/
prior day) in BAI2 format.
• Multi-national corporate clients require SWIFT
formatted files for integration with their back-
office financial systems
GXS Solution
• Translation from BAI2 to MT940 / MT942
• Delivery to clients via SWIFT Service Bureau
using SWIFTNet File Act
Business Benefits
• Outsourcing corporate on-boarding = faster
time to revenue
• Translation into global formats improves ability
to win multi-national corporate business
• External SWIFT solution eliminates need for in-
house hardware, software and technical staff
Corporate Clients
Managed Services
SWIFT
Service Bureau
BAI2
MT940
MT942
SWIFTNet File Act

34. May 21, 2013 | Slide 34 © 2013 GXS, Inc.
US Regional Bank
Winning Large Corporate Clients
Business Challenge
• Meeting SWIFTNet delivery and SWIFT
format requirements of multi-national
corporate clients for wire payments and
balance reporting
• Bank applications unable to consume
SWIFT formats
• Imminent go-live deadline
GXS Solution
• File translation
 MT101 – EDI 820
 BAI2 – MT940 / MT942
• Connectivity via SWIFT Service Bureau
• Corporate on-boarding
• Enables additional large corporate
business
Corporate Clients
SWIFT
Service Bureau
MT101
Managed Services
MT940
MT942
820 BAI2

35. May 21, 2013 | Slide 35 © 2013 GXS, Inc.
Take-Aways
• Business Banking and Middle Market clientele have more
sophisticated bank connectivity requirements
• To meet these requirements,
regional banks must be
well-versed in the complexity
of corporate-to-bank
connectivity
• Ever-evolving financial
messaging standards
increase the complexity on an
ongoing basis

36. May 21, 2013 | Slide 36 © 2013 GXS, Inc.
To Learn More
General Information:
• Corporate-to-Bank Connectivity: http://www.corporatetobank.com
• SWIFT Connectivity Options: http://www.swift.com/corporates
• gtnews SWIFT Service Bureau Buyer’s Guide:
http://www.gtnews.com/Buyer's Guide
Formats:
• ISO 20022 for Dummies: http://www.iso20022.ch/iso_dummies.pdf
• SEPA Overview: http://www.europeanpaymentscouncil.eu
• SWIFT Common Global Implementation (CGI):
http://www.swift.com/corporates/cgi/index
• Balance and Transaction Reporting Standard (BTRS):
https://www.x9.org/btrs

37. May 21, 2013 | Slide 37 © 2013 GXS, Inc.
Thank You and Q&A
Patty Hines, CTP
Director, Financial Services Industry
Marketing
E-mail: patty.hines@gxs.com
Joe Barbieri
Global Account Executive
E-mail: joe.barbieri@gxs.com