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>>> WE'LL BUILD ON MORE THAN 30
YEARS OF INDUSTRY EXPERIENCE,
BAKER HILL SAYS IT IS DELIVERING
CUTTING ENG DGE BANKING SOLUTIO.

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IT ORIGINATES SMALL BUSINESS AND
CONSUMER LOANS SERVING SOME 500
FINANCIAL INSTITUTIONS WITHIN
20% OF THE TOP 150 U.S. BANKS.

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JOHN IS HERE NOW WITH MORE ON
WHAT'S NEXT AT BAKER HILL.
WELCOME TO THE PROGRAM.
>> THANK YOU.

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>> BAKER HILL IS ONE OF THOSE
GREAT INDIANA ENTREPRENEURIAL
SUCCESS STORIES.
BUILT A NUMBER OF YEARS AGO.

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TALK ABOUT THE PROGRESSION.
MARK HILL CO-FOUNDER.
BAKER HILL.
TALK ABOUT THE PROGRESSION THAT

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LEADS US TO BAKER HILL TODAY.
>> SURE.
ABOUT 1984, MARK HILL, KAREN
BAKER FOUNDED BAKER HILL.

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REALLY A GREAT INDIANAPOLIS
STORY AND REALLY STARTED OUT IN
TERMS OF LOOKING TO JUST
AUTOMATE BASIC FUNCTIONALITY IN

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TERMS OF LENDING IN BANKS.
FAST FORWARD 20 YEARS.
CONTINUE TO DEVELOP AND EVOLVE
AND BILLED OUT LARGER PLATFORMS

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THAT WOULD MANAGE BASICALLY RISK
AND DECISIONS FOR BANKS AS IT
RELATES TO COMMERCIAL BUSINESS.
AND DECISION WAS MADE IN 2005 TO

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SELL TO EXPERIAN.
BAKER HILL SAT IN ABOUT 2013,
2014, DECISION WAS MADE TO
EFFECTIVELY CORE TO THE EXPERIAN

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BUSINESS AND ESSENTIAL LY EITHE
A LARGE STRATEGIC COMPANY AND/OR
PRIVATE EQUITY WAS LOOKING TO
TAKE THAT COMPANY BACK OUT AND

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STAND IT ON ITS OWN.
FOURTH QUARTER 2015, COMPANY OUT
OF CLEVELAND AND NEW YORK
PURCHASED BAKER HILL.

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WE'VE BEEN AT THE HARD WORK
SINCE EARLY 2016 TO STAND IT
BACK UP AND ESSENTIALLY DEVELOP
THE LATEST GENERATION OF OUR

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SOFTWARE.
>> AND WE'LL TALK ABOUT THAT.
AS YOU DO THAT AND TRY TO REMAIN
ON THAT CUTTING EDGE, LEADING

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EDGE, THIS IS AN INDUSTRY THAT'S
CHANGED IN A BIG WAY.
>> VERY MUCH SO.
OBVIOUSLY UNDERSTANDS THE GREAT

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RECESSION AND THE CHALLENGE THAT
THE FINANCIAL INSTITUTIONS HAD
GOING INTO 2008-2010 PERIOD.
REALLY FROM 2010, YOU KNOW --

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WELL, FIRST OFF, THERE'S BEEN
SIGNIFICANT CONSOLIDATION.
WHEN I STARTED IN THE EARLY
'90s, THERE WAS ABOUT 12,000

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BANKS IN THE MARKET.
TODAY, THERE'S ABOUT 5,500.
SO YOU HAVE A SMALLER MARKET,
BUT OBVIOUSLY LARGER -- LARGER

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BANKS IN THE MARKET.
BUT I THINK THE BIGGEST
CHALLENGE FOR BANKS, CERTAINLY
IN THE LAST FIVE TO SIX YEARS,

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IS ESSENTIALLY IT'S ABOUT
DISTRIBUTION AND IT'S ABOUT
CLIENT-FACING OR BACK OFFICE
TYPE ACTIVITY TO KEEP UP WITH

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CLIENTS AND CONSUMERS IN TERMS
OF WHAT THEY'RE LOOKING AND HOW
THEY WANT TO INTERACT.
>> WE'LL TALK ABOUT THIS NEXTGEN

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PLATFORM.
THAT REALLY IS THE FOCUS NOW.
>> ESSENTIALLY WITHIN THE YEARS
OF EXPERIAN, BAKER HILL HAD TWO

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SIGNIFICANT PLATFORMS.
WHAT WE COMMITTED TO IN '16,
SPENT ABOUT $25 MILLION IN
DEVELOPMENT OF THIS PLATFORM, IS

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TO TAKE THIS FUNCTIONALITY IN
COMMERCIAL AND SMALL BUSINESS,
BECAUSE THOSE ARE REALLY TWO
DIFFERENT DISTINCT SEGMENTS THAT

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WE MAKE DECISIONS DIFFERENTLY
FOR OR THE CLIENTS MAKE
DECISIONS DIFFERENTLY FOR AND
BRING IT INTO ONE LENDING

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PLATFORM.
WE ESSENTIALLY BUILT WHAT WE
CALL LEGACY PLATFORMS, ABOUT
10-YEAR-OLD PLATFORMS AND BRING

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THEM INTO A PLATFORM FOR A
MODERN-DAY USER WITH A
MODERN-DAY USER INTERFACE THAT
ESSENTIALLY OUR CLIENTS CAN USE

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THE WAY THAT THEY BANK OR THE
WAY THAT THEY LEND.
THAT'S ESSENTIALLY WHAT WE DID
IN '16-'18 WITH A SIGNIFICANT

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RELEASE INTO THE MARKET IN THE
LAST 12 MONTHS.
>> ABOUT OUT OF TIME HERE, BUT
WHAT DOES THAT MEAN FOR FUTURE

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AND CONTINUED GROWTH AT BAKER
HILL?
>> LISTEN, WE'RE EXTREMELY
BULLISH IN TERMS OF BAKER HILL

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AND OUR POSITION IN THE MARKET.
WE BELIEVE WE'VE GOT THE BEST
OFFERING.
YOU CAN'T WAKE UP ON A MONDAY

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AND JUST MAKE A DECISION TO
INVEST LIKE THIS AND DELIVER IT
ON A FRIDAY.
SO WE FEEL VERY GOOD ABOUT OUR

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POSITION, AND THE BANKING
IDUSTRY IS VERY HEALTHY.
THEY'RE LOOKING TO INVEST
HEAVILY IN THEIR -- IN

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DIGITIZING THEIR CHANNELS AND
THEIR BACK ROOM OPERATIONS AND
THAT'S THE BUSINESS THAT WE'RE
IN.

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>> ALL RIGHT.
BAKER HILL BANKING COMPANY WITH
ROOTS -- INDIANA ROOTS DATING