IBIS Management Associates, a Dutch-Caribbean based company, and Ripple are working together to provide Caribbean banks with cross-border payment solution. IBIS Management has always strived to bring operational excellence to the Financial sector, so leading the path in cross-border payment innovation is at the top of the company's list.

1. IBIS Management Associates © 2016IBIS Management Associates © 2016
IBIS Management Associates Inc.
Clark Russel, CEO
Miami 16 April, 2016
THE NEW THINKING IN CROSS BORDER
PAYMENTS FOR CARIBBEAN BANKS

2. IBIS Management Associates © 2016
Topics
• Quick refresh on IBIS Management Associates Inc.
• Alchemy and Operational Excellence
• The Ripple network and unique opportunity for cross border
payments
• A Caribbean roadmap to a Ripple connect pilot
• Q & A

3. IBIS Management Associates © 2016
A trusted advisor to Central and Commercial Banks, Credit Unions & other FI's and
developers of best in class banking technology solutions for Operational
Excellence.
• Every month, billions of dollars flow securely through our proprietary systems
• Proven solutions. Clients in more than 40 countries
• Offices in Curacao, Miami and Singapore
• We help financial institutions to become Profitably Efficient
• Experts in Operational Excellence, Payment Processing, SWIFT and Regulatory
Compliance
• In-house Development team
• State-of-the-art Online Banking: Internet Banking & Mobile Banking
• Back office efficiency gains improve by 600%
• More than double the profitability of your operations in under three months
A QUICK REFRESH ABOUT IBIS MANAGEMENT

4. IBIS Management Associates © 2016
Award-winning solutions for:
Cross Border Payment Processing
SWIFT Connectivity
Mobile & Internet Banking
Regulatory Compliance and Reporting

5. IBIS Management Associates © 2016
SERVING CARIBBEAN BANKS

6. IBIS Management Associates © 2016
Client Footprint

7. IBIS Management Associates © 2016
Customer
payment Order
CSR
Online Banking
Mobile Banking
INPUT OUTPUT
RTGS
Alchemy
Enter Verify Authorize
CORE Banking
Realtime Sanction List Screening
ACH
TRADITIONAL SETUP

8. IBIS Management Associates © 2016
STP for all Channels
Automates all Payment
processes
• Improved Efficiency & Compliance
• More Control & Audit ability
• Reduced operational costs & risk
• Increased Profitability
• Standardization across channels
• Channel and procurement flexibility

9. IBIS Management Associates © 2016
CONTINUOUS DRIVERS OF CHANGE
Profitability
Costs & Complexities need to be reduced for
more profitable banking business (Manual
processes, multiple systems)
Payment Services
Are facing the highest level of disruption
Customer
Expectations are creating a need for speed and
innovation
De-risking
Cross-border $$ payment in jeopardy as US
Correspondent banks are placing increased
pressure on Caribbean banks

10. PROPRIETARY AND CONFIDENTIAL; Contents are proprietary to Ripple Labs and provided on the condition of confidentiality.
Provided information may be disclosed, reproduced and used only in accordance with a written agreement with Ripple Labs. No
implied licenses are intended and all rights are reserved.
CONFIDEN
TIAL
Global Leader
in Distributed Financial Technology

11. PROPRIETARY AND CONFIDENTIAL; Contents are proprietary to Ripple and provided on the condition of confidentiality. Provided
information may be disclosed, reproduced and used only in accordance with a written agreement with Ripple. No implied licenses
are intended and all rights are reserved.
CONFIDEN
TIAL
Experience
Capital Markets
• J.P. Morgan
• Citi
• Merrill Lynch
• BlackRock
• Visa
• Fiserv
• Paypal
• Prosper
Technology
• Google
• Apple
• NSA
• Yahoo
• Bloomberg
• NASA
Team
120Team Members
• 65% Engineering Talent
• San Francisco
• New York
• Sydney
• London
Financial Technology Company
With expertise in global financial settlement
Regulation
• Federal Reserve
• SEC
• DTCC

12. The Problem With Today's Payments
Infrastructure
12

13. ¥
Central
counterparty
¥
$ ¥
Lifting fees
Receiving
correspondent
Sending
bank
(USA)
Receiving
bank
(Japan)
Central
counterparty
$
FX cost: $$$
Sending correspondent /
Liquidity provider
Lifting fees
Duration: 2–5 days
$
Problems: Access, Certainty, Speed, Cost
Decades Old Infrastructure

14. IBIS Management Associates © 2016
Direct global reach is costly
Costs associated with nostro accounts: liquidity, regulations, operations, risk
and compliance

15. PROPRIETARY AND CONFIDENTIAL; Contents are proprietary to Ripple and provided on the condition of confidentiality. Provided
information may be disclosed, reproduced and used only in accordance with a written agreement with Ripple. No implied licenses
are intended and all rights are reserved.
CONFIDEN
TIAL
Corridors without a direct reach are inefficient
Sending
Bank
Receiving
Bank
Sending
Correspondent
Receiving
Correspondent
Lower payment volume do not justify a direct nostro relationship
KEY PROBLEMS:
! Delays: Relay process induces delays in payment settlement
! Risk: Multiple intermediaries increase settlement risk, with little traceability
! Unknown Liquidity Route: The receiving correspondent is usually unknown
? Payment failure
Unknown Party

16. ~4%
of wires fail
2+
days to settle
$1.6 T
in costs
The Real Impact of the Problem

17. Make money move like
information moves on the web
today.
Ripple Vision...

18. IBIS Management Associates © 2016
Make Institutions Interoperable

19. IBIS Management Associates © 2016
Efficient global reach without nostro relationships in every corridor
Consolidation of nostro relationships

20. IBIS Management Associates © 2016
What is Ripple?
Distributed transaction and ledger technology that
allows banks to directly transact with other banks to
settle transactions in real time.

21. IBIS Management Associates © 2016
Ripple Consists of 3 Main Components
Ripple Connect: Connects banks to the Ripple network to exchange
KYC risk information, fees, payment details and expected time of funds
delivery.

22. IBIS Management Associates © 2016
Ripple Consists of 3 Main Components
Ripple Stream: Is an interface for liquidity providers (I.e. the bank’s
FX desk) to submit bid/ask offers to the Ripple network.

23. IBIS Management Associates © 2016
Ripple Consists of 3 Main Components
.
The Ripple Network: Contains the Ripple Consensus Ledger (RCL), the
secure distributed ledger that uses the consensus process to settle
transactions.

24. PROPRIETARY AND CONFIDENTIAL; Contents are proprietary to Ripple and provided on the condition of confidentiality. Provided
information may be disclosed, reproduced and used only in accordance with a written agreement with Ripple. No implied licenses
are intended and all rights are reserved.
CONFIDEN
TIAL
Capability 1: Real-time, Atomic Settlement
Sending
bank
Receiving bankSending
Correspondent
Receiving
Correspondent
Single-step atomic
transaction
Step 1: Payment Information Exchange and Processing
Step 2: Cryptographic Escrow of Funds
Step 3: Atomic Settlement
Step 4: Payment Confirmation

25. PROPRIETARY AND CONFIDENTIAL; Contents are proprietary to Ripple Labs and provided on the condition of confidentiality.
Provided information may be disclosed, reproduced and used only in accordance with a written agreement with Ripple Labs. No
implied licenses are intended and all rights are reserved.
CONFIDEN
TIAL
Real-time, atomic multi-hop transactions
25
Ability to chain transactions together without impacting service levels
KEY BENEFITS:
! Reduced Delays: Payment processing across all intermediaries happens in parallel
! No Settlement Risk: Either the entire payment goes through or it fails (atomic payment)
! Higher Balance Sheet Efficiency: Ability to consolidate nostro relationships while
maintaining service levels
Sending
Bank
Receiving
Bank
Sending
Correspondent
Receiving
Correspondent

26. PROPRIETARY AND CONFIDENTIAL; Contents are proprietary to Ripple and provided on the condition of confidentiality. Provided
information may be disclosed, reproduced and used only in accordance with a written agreement with Ripple. No implied licenses
are intended and all rights are reserved.
CONFIDEN
TIAL
Ripple
Connect
Ripple
Connect
Ripple Network
(Interledger Protocol - ILP)
Bank Bank
Payment Instructions (with structured data)
Customer Information (AML/KYC)
Fee Exchange
Automated Payment Confirmation
Settlement Settlement
Capability 2: Bidirectional Messaging

27. PROPRIETARY AND CONFIDENTIAL; Contents are proprietary to Ripple Labs and provided on the condition of confidentiality.
Provided information may be disclosed, reproduced and used only in accordance with a written agreement with Ripple Labs. No
implied licenses are intended and all rights are reserved.
CONFIDEN
TIAL
27
Sending
Bank
Receiving
Bank
Bidirectional messaging increases operational efficiency and lower costs
KEY BENEFITS:
! Higher STP: Data validation prior to transaction
! Transparency: Capability to pre-disclose end-to-end delivery fees (Basel III and Dodd-Frank)
! Intraday liquidity monitoring and automated reconciliation: Real-time payment confirmation
More efficient bank-to-bank settlement

28. PROPRIETARY AND CONFIDENTIAL; Contents are proprietary to Ripple and provided on the condition of confidentiality. Provided
information may be disclosed, reproduced and used only in accordance with a written agreement with Ripple. No implied licenses
are intended and all rights are reserved.
CONFIDEN
TIAL
Capability 3: Liquidity Management
Model 1 (Same as today):
SVB
(USD)
Correspondent
(USD)
Correspondent
(EUR)
DB
(EUR)
SVB
Nostro
DB
Nostro
SVB
(USD)
DB
(EUR)
Liquidity Provider 1
Liquidity Provider 2
Liquidity Provider 3
USD EUR
EUR
EUR
EUR
USD
USD
USD
Model 2 (Competitive liquidity marketplace):

29. PROPRIETARY AND CONFIDENTIAL; Contents are proprietary to Ripple Labs and provided on the condition of confidentiality.
Provided information may be disclosed, reproduced and used only in accordance with a written agreement with Ripple Labs. No
implied licenses are intended and all rights are reserved.
CONFIDEN
TIAL
Flexible Liquidity Provisioning
29
Multiple models for liquidity provisioning for banks
KEY BENEFITS:
! Balance Sheet Efficiency: Ability to leverage third party liquidity for non-core corridors
! Agility: Expansion into new corridors without incurring capital risk or cost
Sending
Bank
Receiving
Bank

30. IBIS Management Associates © 2016
KYC & Compliance
Using Ripple does not impact an institution’s Compliance,
AML, Sanctions list screening, and transaction monitoring
requirements and responsibilities.
Ripple is designed to complement existing compliance
programs

31. IBIS Management Associates © 2016
&
Partnership Solution

32. IBIS Management Associates © 2016
Online
Banking
Wire
Transfer
Alchemy
Entry Verify Auth.
CORE Banking
STP
Sanction List Screening
Ripple Connect example through Alchemy...
Ripple
Connect

33. IBIS Management Associates © 2016
Access: Provides direct access to a growing, global network of financial institutions
and liquidity providers instead of relying on scarce correspondent banking
relationships for cross-currency settlement.
Certainty: Ripple’s technology tightly integrates payments messaging with funds
settlement, allowing for unprecedented visibility into a transaction’s lifecycle.
Speed: Ripple’s distributed technology enables banks to settle cross-border
payments in real time allowing them to serve their customers in new ways with
differentiated services.
Cost: Through Ripple, banks can lower their cost of cross-currency settlement by
minimizing settlement risk and operational costs.
Key Benefits of using Alchemy - Ripple

34. IBIS Management Associates © 2016
Next to ALL existing Alchemy benefits:
Key Benefits of using Alchemy - Ripple
• Improved Efficiency & Compliance
• More Control & Audit ability
• Reduced operational costs & risk
• Increased Profitability
• Standardization across channels
• Channel and procurement flexibility
&

35. IBIS Management Associates © 2016IBIS Management Associates © 2016
Thank You!
For more information please contact:
clark.russel@ibis-management.com
germaine.gibbs@ibis-management.com