Fintech the

Strategic Space

Cass 9th October 2012

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IC Dowson William Garrity Associates Ltd

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Fintech – Old Value Chain

Consumer

Bank

Build Soc

Insurance

Co

Stockbroker

Asset

Manager

Pension

Fund

Insurance

Co

Asset

Manager

Hu

man

Inte

rmed

iata

tio

n

Employer

Enter the walled garden

© copyright IC Dowson William Garrity Associates Ltd

Fintech New Strategic Value Chain Entry at any node

Exchanges

Currency

Stock, p2p,

Spread

Asset Management

Self

Contracted

Robot

Trading

Identity &

Security

Transactions

Transaction

Generation

Mobile, Web,

Pad, ATM,

Branch, retailer,

In or out of Loop

OOL

Transactions

Account

Processing

Risk

Assurance

Insurance

Pension

Compliance

SaaS

Regulation

Price and

Product

Discovery

Financial

Education

Literacy

Account

Consolidation

of all value

Account

Holding

Branded &

Segmented

Funding

Platforms

Products

Out of Loop

Value Points

Game Crs Gifts

Facebook Crs

Loans

Cards Accounts

Peer to Peer

Money &

Value

Tranfers

Process SaaS,

PaaS

Expenses

Invoices

Personal

Financial

Management

mmentt

Soc Med Points Games News

© copyright IC Dowson William Garrity Associates Ltd

World Scale of Investment

Acquisition $3.6bn

37 Trans

Total Spend $10.7bn, 347 Transactions

USA, $6.6bn

61% 198 Trans

UK, $3.2bn 30%, 92 Trans

ROW $472m

14 Trans

EUR $327m

13 Trans

Canada $71m

6 Trans

Germany $59m

6 Trans

Investments 310 Trans $7.1bn

Type No Value $000

Payments 78 3,328,644

Process 80 1,983,215

Comply Identity Security

43 1,748,320

Retail Challenger Banks 7 985,434

Lending 53 839,005

Data & Information 31 768,160

Banking 8 355,012

Exchanges 34 304,959

Points Games Rewards 12 267,400

Weather Insurance 1 109,000

Total 347 10,689,149

© copyright IC Dowson William Garrity Associates Ltd

London

Founded $65,092

2% 16 Trans

Angel Seed

Funding $28,779

1% 31 Trans VC/PE

Funding, $940,181

29% 33 Trans

Corpor $202,000

6% 2 Trans

Acqs $1,114,7

00 35%

8 Trans

IPO $846,920

27% 2 Trans

Total $3,197m 92 Transactions

Name Sub Sector Total Monestise E & Mobile Cash 683,120 Wonga Lending 145,000 Zopa p2p 33,900 Euclid Opportunities Funding Platform 25,000 Tradeshift Process 24,000 Open Gamma Big Data 23,200 Funding Circle Funding Platform 20,000 Datasift Infor 14,700 Borro Lending 12,100 digitalvega Exchange 10,000 Currency Cloud FX Money transf 8,600 Tier-3 Compl 8,500 AI Hit Infor 5,500 Nutmeg Exchange 5,320 Acunu Big Data 5,000 Fixnetix Exchange 5,000 Gekko Global Markets Exchange 5,000 Smarttrade Exchange 5,000 Ratesetter p2p 4,800 Dcisions/ Investor Bee Infor 4,500 Ixaris E & Mobile Cash 4,500 EZBOB Funding Platform 3,920 MoBank Aggregator 3,600 miiCard Compl 3,370 IWOCA Funding Platform 2,400 Flattr Payments 2,080 Erply E & Mobile Cash 2,007 Handpoint E & Mobile Cash 2,000 i-Allow Compl 2,000 © sicopyright IC Dowson William Garrity Associates Ltd

Fintech Strategic Wheel

Compl, Identity Security

SaaS $16.3m

Payments $4.6m

Process & Processing

$28m

P2P $40.2

m

Big Data Open

Source $29.7m

Funding Platforms

$55.8m

Exchange $30.4m

Info $27.5

m

Lending $158m

Challenger Banks $821m

FX Money Trans $10m

Emoney Mobile

$692.7m

Aggregator $3.6m

PFM $0.6m

LONDON $1.92bn Investment

Notes: London Fintech Funding Table $1,236bn plus Monestise Plc

© Copyright IC Dowson William Garrity Associates Ltd

Londons Strategic

Gaps

Full E-Bank inside of Facebook & Twitter Fidor Bank AG

Aggregated Bank “SimpleBank”

Insurance –Empty Only one new model In USA Climate Corp Crop Insurance by Robot

Personal Financial Mangers

Put brains into them AI & Semantics complete FS product chain management

Lending & Process Money Supermarket ? SME’s Kabbage & Klarna. Ezbob & IWOCA

Markets & Exchanges

Plumbing – Digitalvega New Kinds of Markets Tesco Points into Gift Aid into Facebook crs into Textbooks

Peer to Peer Just started Funding Platforms We seem to be good At this

Strategic Space

© copyright IC Dowson William Garrity Associates Ltd

Crowdsourcing, e. g. with a user-community, that allows peer-to-peer

support, sharing of experiences and cooperation in order to solve financial

questions;

Crowdfunding, e. g. by getting paid by the bank for specific social

interactions within Fidor Bank Community;

User co-designed Products and user driven Prices, e. g.

Product suggestions within the community, „Zins-Consenus-Group“ within

Fidor Bank Community, „Like-Zins“, an interest rate that is directly connected

to the amount of Likes on Fidor Bank s Facebook profile.

Crowdfunding, via third party platforms such as startnext and others;

Peer to peer lending within FidorPay Account;

A global payment offer, that will allow „account to account“

payments or „account to cash pick up“.

Fidor Bank thinks different!

Fidor Bank = GLOBAL PEER TO PEER BANKING.

USA

Founded, $1.3m 4

Trans

Angel/Seed

Funding, $86m 1% 49 Trans

VC/PE Funding, $2.9bn,

44% 114 Trans

Corporate,$25m 1

Trans

IPO $1.1bn

17% 3 Trans

Acq, $2.5bn

38% 27 Trans

Total $6.6bn 198 transactions

Name Sub Sector Total

Life Lock Compl 876,000

Square E & Mobile Cash 341,000

Mint Aggregator 170,000

Virtual Piggy E & Mobile Cash 130,010

Yodlee Aggregator 116,000

The Climate Corporation Insurance 109,000

inComm E & Mobile Cash 100,000

OANDA FX Money transf 100,000

Lending Club p2p 95,200

Mitek Systems Process 79,580

Prosper p2p 74,700

Boku E & Mobile Cash 73,000

stripe E & Mobile Cash 56,000

On deck capital Lending 54,000

Kabbage Funding Platform 53,700

Cardlytics Points Games Rewards 51,000

Strandsfinance/ Strands L PFM 51,000

Edo Interactive Points Games Rewards 50,500

Learn Vest PFM 48,500

FreeMonee Points Games Rewards 44,000

mFoundry E & Mobile Cash 40,300

Threat Metrix Compl 36,200

Threatmetrix Compl 36,200

Secondmarket Exchange 34,200

Clairmail E & Mobile Cash 34,100

Kony E & Mobile Cash 34,100

Braintree E & Mobile Cash 34,000

Ping identity Compl 34,000

Finsphere Corp Compl 30,200

Capital access Network Lending 30,000

The Receivables Exchange Funding Platform 29,800

© copyright IC Dowson William Garrity Associates Ltd

USA Web 2.0 again

•Determined to globalise new value chain

•Some models now entering UK – following Mastercard, Visa & Amex

•Paypal-Ebay, Google, Facebook, Twitter

•UK Supermarket and Challenger Banks wrong model? •Could be a rerun of Web 2.0 – US Domination

Europe ROW

Canada $71m 15%

Trans 6

Europe ex

Germany

$327m 70%

31 Trans

Germany $44m

9% 5 Trans

Rest of World $28m 6%

12 Trans

54Transactions value $469m

Name Sub Sector Total Xero Process 434,000 klarna Lending 155,000

izettle E & Mobile Cash 46,700

TOM The order machine Exchange 40,000 eToro Exchange 33,900 Wave Accounting/ Vuru Process 30,500 Securekey Compl 30,000 Fidor Ebank 23,742

Sumup E & Mobile Cash 20,000

Service2Media Process 10,000 8 securities Exchange 10,000 Community Lend Lending 8,400 lenddo Lending 8,000 leetchi Payments 7,850 seculert Compl 5,350 2iQ Research Exchange 5,000 Ayondo Exchange 5,000 Stockpluse Exchange 5,000 Yavalu Exchange 5,000 Meniga PFM 4,000 BehavioSec Compl 2,020

© copyright IC Dowson William Garrity Associates Ltd

Success what does it look like Reg Name Sector Amount Buyer

EUR Virus Total Compl 15,000 Google

ROW Sky Technologies Process 10,000 kony

UK DataCash Process 520,000 Mastercard

Dataexplorers Big Data 350,000 Markit buyer Money Saving Expert Infor 139,200

Moneysupermarket.com

Goindustry DoveBid Process 31,000

Liquidity Services Inc USA

Corporate Pay E & Mobile Cash 27,500 Wright Express USA

Global Expense Process 23,000 Concur Technologies

Serverside Process 20,000 Gelmatto

Timetric Infor 4,000 Progressive Digital Media

USA Cash Edge - Popmoney E & Mobile Cash 465,000 Finserv

AuthenTec Compl 356,000 Apple

TxVia Payments 300,000 Google

Zong Payments 240,000 Ebay

Mortgagebot Process 231,800 D+H Davis & Henderson

Clairmail E & Mobile Cash 173,000 Monetise UK

Mint PFM 170,000 Intuit

PowerReviews Infor 151,000 Bazaarvoice

ID Analytics Compl 100,000 LifeLock

AisleBuyer E & Mobile Cash 90,000 Intuit

Truaxis (Bill Shrink) Points Games Rewards 50,000 Mastercard

Outright Process 30,000 Go Daddy

Venmo Payments 26,200 Braintree

UNX Exchange 25,000 Mantara

Chargesmart Payments 19,000 Veriphone

Feefighters Process 15,000 Groupon USA

Bankerstuff Compl 10,000 cBanc

Card.io E & Mobile Cash 10,000 Pay Pal

Easy2Comply/ Dynasec Compl 10,000 Checkpoint

Oflows Process 6,000 Andrea

Bankons Points Games Rewards 5,000 Capital One

Goalmine PFM 4,000 Rev Worldwide

PayLeap Payments 4,000 Acculynk

ORCA Inc Payments 2,000 Payz/ Ingk Labs

Social Picks Infor 2,000 SocialInSight

Skill-life PFM 500 Banc Vue

CashEdge/ Popmoney E & Mobile Cash 465 Fiserv

3,635,665

Please note some estimates have been used - illustrative values only

© copyright IC Dowson William Garrity Associates Ltd

Britain's Mobile E Bank its in Kenya 14.91 users £123m Rev