CFO University – May 17, 2019

Next Gen in Banking

Christopher King and Christopher McFarland

____________________

Note: All statements speak as of, and only at March 31, 2019 unless noted. Bank of America is under no obligation to update this information.

Merrill Lynch makes available products and services offered by Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S”) and other subsidiaries of BofA Corp. MLPF&S is a registered

broker-dealer,

Member SIPC and a wholly owned subsidiary of BofA Corp. Trust and fiduciary services are provided by U.S. Trust, a division of Bank of America, N.A., Member FDIC, a wholly owned subsidiary

of BofA Corp.

Investment products:

1

66MM consumer and small business relationships

27.1MM active mobile banking users

$211BN in Consumer Investment Assets

$2.8TN in Wealth Management client balances

4,353 financial centers

16,378 automated teller machines

Leading wealth management firm and trust company led by Merrill and Bank of America Private Bank

People

One of the largest U.S. Commercial Banks

Top 4 global player within Corporate and Investment Banking

Relationships with 79% of the 2018 Global Fortune 500 and 94% of the 2018 U.S. Fortune 1,000

Companies

Leading dealer in FX cash, derivatives, electronic trading and payment services in 148 currencies

No. 2 Global Research firm –(Institutional Investor magazine*)

650+ analysts covering 3,000+ companies, 1,100+ corporate bond issuers across 54 economies and 25 industries

Institutional Investors

*Institutional Investor magazine announced BofA Merrill Lynch Global Research as one of the top global research firms from 2011-2018 based on surveys held throughout the year. The magazine creates rankings of the top research analysts in a wide variety of specializations, drawn from the choices of portfolio managers and other investment professionals at more than 1,000 firms. BofA Merrill Lynch Global Research is research produced by BofA Securities, Inc ("BofAS") and/or one or more of its affiliates. BofAS is a registered broker-dealer, Member SIPC, and wholly owned subsidiary of Bank of America Corporation. For more information about this award, go to https://www.institutionalinvestor.com/research/8959/Overview. Rankings and recognition from Institutional Investor are no guarantee of future investment success and do not ensure that a current or prospective client will experience a higher level of performance results and such rankings should not be construed as an endorsement.

Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value

Bank of America Overview

For more than 200 years, Bank of America has focused on serving the financial needs of its customers and clients. Today, Bank of America provides a full range of banking, investment management and other financial and risk management products and services to three groups of customers – people, companies and institutional clients. Bank of America has made significant progress in strengthening and transforming the Company in support of Bank of America’s purpose – to help make financial lives better through the power of every connection.

Serve 1 in 4 companies

operating in the U.S.(1)

Mid-size clients with $50MM

to $2BN in revenue

+ +Proactively helping

companies to strategically position for

global growth

+Closely aligned with

other bank teams to deliver integrated global solutions

$50MMto $2BN

Market view:Best Bank for Small and Medium-sized Enterprises (SMEs) In North America2018 Euromoney Awards of Excellence

Best Brand in Middle Market Banking – Cash Management & International Products/Services 2017 Greenwich Associates Best Brand Awards

Leadership in Global Commercial Banking

____________________

(1) Greenwich Associates, 2017.

1

13

Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value

Complete Solutions & Services

Equity Capital Markets Mergers and Acquisitions Debt Capital Markets Private Sales Referral Network

Employee Banking and Payroll Solutions Bank of America Benefit Solutions™ Employee Home Loan Services

CashPro® Online / CashPro® Connect Card Solutions Cash Flow Management Global Custody, Escrow, Issuing and

Paying Agent Services Customized Payments & ePayables Disbursement Management & Merchant

Services Liquidity and Investment Management Trade & Supply Chain Finance Foreign Exchange

Working Capital Financing Property, Plant & Equipment Financing Acquisition Financing Recapitalization Leasing Asset Based Lending Real Estate Development Financing Dealer Financing Syndicated Finance Supply Chain Finance Trade Financing

Retirement and Benefit Plan Services

Global Wealth & Investment Management

Global Liquidity Management Integrated Global Payment and

Collections Management Working Capital Management International Trade Services Global Market Research

Interest Rate Management Foreign Exchange Capabilities Commodities

Enhance Cash Flows and Efficiency

Fund Growth and Operations

Conduct Business

Internationally

Raise Capital and Get Strategic

Guidance

ManageRisks

SupportEmployees

Grow and Preserve

Personal Wealth

We help our clients with...

____________________

Banking products and services are available from Bank of America, N.A. Investment products and services are available from Merrill Lynch, Pierce, Fenner & Smith Incorporated, Member SIPC.

Investment products:

55

History of innovation in financial services

1960s 1970s 1980s 1990s 2000s 2010s

Allowed the replacement of

physical recording by digital data

Enabled batch overnight processing

Automated banks and branches and facilitated offline remote banking

Enabled data centers, intranets

and corporate systems

Facilitated the global exchange

of data and enabled a series of international

businesses

Created a new medium to

interact with clients and collect

data

Spearheaded frictionless payments

Internet MobileSemiconductor

microprocessorsMainframes

Terminals and PCs

Local networks Smart Devices

Credit cards Messaging (e.g. SWIFT)

ATMs e-trading Digital banking

futureEmerging

technologies

Biometrics

Cloud computing

Cognitive computing

Distributed ledger technology

Machine learning / predictive analytics

Quantum computing

Robotics

Technology innovation has been fundamental to financial services industry transformation

World Economic Forum 2016 – The future of financial services infrastructure

Bank of America is leveraging many of these technologies as we test and learn to create next

generation financial services infrastructure

and solutions.

66

Recent Digital Transformation RSM Survey of CFOs

Source: RSM Consulting 2019

77

More Insights from the Survey

Source: RSM Consulting 2019

A new reality is forming…

Bank of America Merrill Lynch adds

The evolution of treasury management

More banks see value in faster payments and APIs6

Bank of America CEO Moynihan is banking on a Digital Transformation8

For banking customers, the

promise of a

platform bankingstrategy is

straightforward: easier, flexible,

tailored, contextual banking4

FBI says business email scam losses now top $12 Billion.2

biometrics and integrated token to CashPro® Mobile¹

A new world order: how regulations have transformed

banking tech strategy3

1. https://www.treasury-management.com/news/1099/bofa-merrill-adds-biometrics-and-integrated-token-to-cashpro%AE-mobile.html (July 2018)2. https://www.pymnts.com/news/b2b-payments/2018/fbi-business-email-scam-fraud-phishing/ (July 2018)3. http://www.bobsguide.com/guide/news/2018/Jul/10/a-new-world-order-how-regulations-have-transformed-banking-tech-strategy/ (July 2018)4. Unleashing the Power of a Platform Banking Strategy, Celent (May 2018)

5. https://www.americanbanker.com/news/mad-about-erica-why-a-million-people-use-bank-of-americas-chatbot (June 2018)6. https://www.pymnts.com/news/b2b-payments/2018/aci-worldwide-real-time-payments-api/ (May 2018)7. http://www.bobsguide.com/guide/news/2018/Jul/6/the-evolution-of-treasury-management-in-the-fintech-era/ (July 2018)8. https://realmoney.thestreet.com/articles/07/16/2018/ceo-moynihan-banking-digital-transformation (July 2018)

Mad about Erica: Why a million people use

Bank of America’s chatbot5

in the fintech era7

99

Innovation Program

Identify & test new technologies… through a consistent process… to solve client challenges

Our innovation program is designed to rigorously identify, test and mature new technologies and capabilities that can enhance our global treasury solutions.

Articulation

Commercialize

Incubation

Design prototype

Test prototype

Development

Agile framework that can adapt based on each opportunity

Collaboration with internal partners, market experts and clients

Inform business cases and design solutions that address client needs

Best-in-class resources and a highly-customizable approach tailored to GTS-specific capabilitiesDifferentiated approach

1010

Innovation Program’s Current Focus

Innovation

Key insights gained from this exploration enable the development of solutions that are globally consistent, locally relevant and digitally enabled.

Digital transactionsClient data analytics Connectivity Dynamic account management

Real-time information that enables clients to make

strategic decisions

One global servicing model; standardized reporting, file

formats and account opening

Transact anywhere, anytime, using a variety of methods to help clients retain and grow

Integrated financial ecosystem that delivers a simplified user

experience and real-time access

Cash forecastingCash pooling • Dashboards

Simplified accounts & documentation • Cash visibility

Cross-border capability • Open banking/API • Integration

Cross-channel • Authentication Safety & regional compliance

A P I + B L O C K C H A I N + M O B I L EA R T I F I C I A L I N T E L L I G E N C E +

Testing emerging technologies that enable us to deliver innovative solutions for our clients.

1111

1 2 3 4 5DATA

METHOD CONFIRMATION

PAYMENT INITIATION

PAYMENT NOTIFICATION

VALIDATION/REGISTRATION

FUNDING RECEIVED

Client Client Recipient Recipient Validation Recipient

Potential benefits

Rapid funds delivery to beneficiary digital wallet

Beneficiary email address all that is needed to send payment

Economical alternative to costly cross-border funds transfers

Leverages popular digital wallet provider encompassing >250 M users

Easily integrates to traditional payment processing flows

Alias-based B2C payments to recipients in seven countries using PayPal.

Innovation example: Global Digital Disbursements

Insurance

Use case

Sharing economy Higher education Non-profit

1212

Potential benefits

Local access with minimal local treasury footprint

Reconciliation and better straight-through processing

Simplified account management & banking structure

User control

Innovation example: Virtual in-country account

Provide ability for clients to generate local account numbers for domestic transaction activity in countries different from the linked physical account.

Access to local clearing for payments & receipts through a hub account

Proof of concept use case

User-controlled account management enabling efficient transaction tagging

Cross-border account #

Local nostro

Virtual account mgmt.

DDA

Orchestration

Trans systems (e.g. FX)

Ch

ann

els

1

BofAMLLocal geography

Issue cross-border account number to access local clearing

2Local nostro to capture/hold funds or pass through to aggregation account

3VAM to process transactions across virtual accounts

4Integration to enable mapping and reporting

Data & settlement

Proof of Concept

1313

Potential benefits

Increased rate of straight-through processing

Reduce days sales outstanding (DSO)

Accounts receivable team efficiencies

Enhanced customer experience

Innovation example: Intelligent Receivables®

AI-driven data capture, customizable matching rules and multi-source remittance processing.

Remittance data received from

multiple sources

Paymentinformation processed

2

Automated matching

3

Online exception management

4

Enhanced file returned

5

Use case

Payer identification Invoice reconciliation Deepens P2E efficiencies

Compared to less than 20% for majority of companies

80-90%A U T O - P O S T I N GT H E I N N O VAT O R S

TOP 19

Named in the Top 19 financial innovations of the year - Global Finance’s The Innovators 2018

1

141414

Banking Platform – Key Themes

Connectivity

MobileOnline

API

Promote Service Enablement

Expand Mobility

Simplify the Experience Rationalize Platforms

Drive API Adoption

Pay Faster & Digitally Flexible Security

Drive Commercialization

Comply with Mandates

1515

Platform Digitization

A suite of digital solutions designed to simplify the client experience

Streamlined information access

Benefits

Paper to electronic transformation

Fast and convenient assistance

Reduction in manual service calls and emails

Greater operational efficiency

Convenient transaction research and tracking

Document Management

Banking Platform

Push alerts through multiple channels

Targeted document delivery Embedded electronic signature Know Your Customer document collection Credit document upload

Support & Education Videos, guides, training and other resources Live chat or telephone assistance

Research Transaction investigation Research requests Tracking and resolution

Analytics & Forecasting Automated data entry for cash

positioning and forecasting Leverages the power of Microsoft® Excel

Notifications Proactive alerts Email, mobile, voice, or text message

Expansion of client mobility

Streamlined click to call via CashPro Mobile

1616

Mobile for Business

• Access account balances

• View, initiate and approve payments

• Approve host to host files

• Deposit multiple checks

• View important message & notifications with Inbox

• Access Credit Balances

• Enable security with biometrics

• Perform user administrative tasks

• Decision check exceptions

• Receive push notification alerts

• Access Mobile Token

• Compatible with Apple®, Google®, and Android®

• Local language user interface

Key Features

1717

Application Programming Interface

Using our APIs on a real-time basis, clients can:

API Developer Portal• Learn about BofAML APIs and

review usage or specifications before onboarding

• View available API services and potential integrations

https://developer.bankofamerica.com/

Download account activity to

workstations

using the Transaction Inquiries API

Update account balances on an

automated basis

using the Balance Inquiries API

Reduce risk ofoverdrafts

using the Funds Check API

View account data from multiple banks

in one place

using Account Information APIs

Initiate a payment from an ERP

system

using the Payment Initiation API