Page 60 - Consolidated Non Financial Statement

Banca Ifis

| 2020 Consolidated Non-Financial Statement
4.2 Digital innovation

Policies and other reference documentation
• Group ICT strategic planning policy

The development of digital innovation is amongst the key, priority actions for the implementation of the Group's strategy,
which aims to expand the offering of the Bank's products to entirely digital sales channels, improve the user experience
for all types of users, and streamline and digitise internal processes.

During the rebranding project, the opportunity was taken to develop the Bank's new website (bancaifis.it), which is
the sole point of access to the Bank’s digital ecosystem. The main site was then completed by another 6 “sub-sites”
specialised in vertical topics. The new solution replaced the 22 websites previously on-line. The project made it possible
to improve the Banca Ifis Group’s on-line presence generally.

During the year, Banca Ifis introduced innovative digital functions and embarked on the gradual digitisation of
processes, so as to boost efficiency, curb operational risk, and make the sales process more effective.

2020 also saw the launch of an extensive work programme, called Ifis4business, structured over multiple interim
phases, which shall make it possible for all customer businesses to operate on the whole of the product portfolio, easily
and in real time.

Ifis4business will become the sole digital platform on which the business can consult its position and perform its
transactions. The design and launch of this process stems from the desire to rationalise and simplify the current
portals, providing businesses with a single point of access to an enhanced range of operations, which may be carried
out digitally and accompanied by more extensive information, updated in real time and in 24x7 mode.

Ifis4business has currently been applied to two specific sectors: factoring and digital lending. This is because whilst the
digitisation of relations with retail consumers has been going on for some time now, digitisation of interactions with
businesses, and, in particular, in the world of B2B and supply chain, significant progress has yet to be made. As regards
the first aspect, the Bank has decided to start out from the “transferred debtor”, namely the party that must physically
pay the invoice for the purchase/sale made by and between the bank and creditor, the subject that typically plays a key
role in the supply chain. Improving process efficiency means freeing up liquidity to be allocated to suppliers more quickly,
almost instantly, above all at such complex times as though currently experienced.

In addition to a significant improvement in the user experience, the company has managed to implement significant
operative efficiencies given that all its processes have been completely digitised.

Through the introduction of Ifis4business during the first half of 2020, 3.712 “digital” recognitions have been performed.

Again in 2020, the FarmaPos project was launched, the new initiative by Credifarma and Nexi dedicated to the pharmacy
to facilitate payments with electronic money: it is the Banca Ifis POS payment service, which allows pharmacies to
facilitate purchases, limit the use of cash and correctly channel cash flows. This initiative extends the range of solutions
available to Italian pharmacists, offering digital services that can satisfy increasing needs and ever more sophisticated
demands, whilst at the same time guaranteeing security and supporting the evolution of digital health.

For retail customers, in the Npl area, the PagoChiaro Portal, namely the on-line payment platform created to help
debtors return to “performing” status, has been further evolved in a sustainable manner, using the speed of the digital
approach that has always marked Banca Ifis.

To date, the Npl business uses an Artificial Intelligence (AI) engine to analyse large quantities of data. Artificial
intelligence serves to understand how to direct the collection chain. The next objective is to implement use of robotics
to analyse the data of the digital documentation when onboarding portfolios.

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