Tomorrow’s alternative banking and payments, today

presented by

Peter J Cox FCIM Executive Chairman and Founder

• Presenting high level overview of the Contis expanded the UK credit union/community banking services offer • Explain how we are helping the credit union sector progress and serve their communities better • How our service offering will help:

• Put them in the public eye and drive credit union growth • Increase their revenues/profitability • Cut their administration duties and costs • Deliver customer satisfaction • Develop the national profile of the credit unions and position them as a real alternative, to UK high street

banks • Assist in removing financial exclusion in the UK

Why?

FACT The 2008 crisis created an overwhelming demand for real change within the UK banking sector… a demand that could be fulfilled by alternative Fintech providers like Contis

Contis aims are similar to Credit Unions

• To deliver genuine value to users, regardless of their social or financial history

• Develop and drive the concept of ethical and responsible banking

• Provide the most comprehensive financial services offering possible, in a way that is mutually beneficial to all

• To challenge and break the monopoly of the big UK banks

NB: There were 342* Credit Unions within England, Scotland and Wales with 1.2m users with no full banking capability to offer

* Abcul.org

We decided to partner to end financial exclusion in the UK, which is the 5th largest economy in the world

Some facts in 2014

FACT More than 7 million people in the UK were unable to access affordable credit (2014 statistics)

FACT Over 11 per cent of low income households could not get access to a traditional bank account

The Scotsman 2014

FACT: Most people have heard of credit unions, but only a small percentage, understand exactly what they are and the

benefits they can deliver to their members

Existing CU members: loyalty is not guaranteed

Empire Research figures on credit union loyalty

What Contis do and for whom

• Provide the bridge between brands, financial technology, the world of payments and banking, digital payments and cards

• Act as enabler and backbone for future financial service providers

180,000 open accounts to date, processing 8.7m transactions worth over £580m per annum

Brand owner, membership or financial services / tech innovator

Contis

End user customer proposition

Visa Global Network International Banking Network

The Challenge Real issues and some big opportunities

Credit Union success = Our success

So we looked at how and where we could

differentiate

• A new basic account that will help credit unions achieve 100% financial inclusion in their community

• Range of more ‘mainstream type’ member accounts, services and products to increase credit union revenue

without increasing administration

• An holistic credit union, banking, card payments and administration platform was required

• All backed by a supported marketing initiative designed to provide added member value and build stronger community links…

• With an exclusive brand

The Contis Proposition

• Engage was offered to all credit unions whatever their size or requirements.

• There was an entry level to suit all.

• All technology was tried, tested and ready to go! As was used in our core business offering.

• The product would run on our FCA licenses and Visa Principle Membership.

• All products and services would be exclusive to credit union movement. So driving clients their way

Offered a Credit Union member account to suit everyone in the community

The Engage “Classic” account range

The Engage Classic Account Pay-as-you-go basic account for 100% financial inclusion

The Engage ‘Current’ account range

The Engage Classic Account Pay-as-you-go basic account for 100% financial inclusion

The Engage Current Account Full current account functionality including Direct Debit facility and Faster payments, International transactions, Real-time e-account and mobile apps

The Engage ‘Business’ account

The Engage Classic Account Pay-as-you-go basic account for 100% financial inclusion

The Engage Current Account Full current account functionality including Direct Debit facility, international transactions – Real time e-account and mobile apps

The Engage Business Account Small to medium-sized companies, sole traders and partnerships etc. Access to unlimited assigned Visa debit cards with tiered spending limits.

The Engage ‘Youth account’ The Engage Classic Account Pay-as-you-go basic account for 100% financial inclusion

The Engage Current Account Full current account functionality including Direct Debit facility, international transactions – Real time e-account and mobile apps

The Engage Business Account Small to medium size companies, sole traders and partnerships etc, unlimited assigned Visa debit cards with tiered spending limits

The Engage ‘Smartcash’ Account Junior members ‘current’ account with parental controls and safe limits, linked directly to credit union savings account.

The Engage ‘Classic’ account A personal account to achieve 100% financial inclusion

This account fulfils a growing and important need…

but we wanted to help Credit Unions compete

even more effectively - beat the banks, eliminate the payday lenders and attract new members of all demographics

The Engage ‘Current’ account A full current account service with Direct Debit capability

• UK sort code & account number • Real Time Contactless Visa debit card • Cashback rewards and incentives • Envelope™ Money Management tool • Direct Debit facility • Real-time payments • International usage with competitive FX • ATM and cashback facilities • Debit card and virtual card capability • Plus all the other benefits of a current account! • £4.95 issue fee and £4.95 per month to cover all functionality (plus

minimal usage fees for Chaps, FX etc.)

The Engage ‘Business’ account Ideal for small business, sole traders, partnerships etc.

• UK sort code & account number • Real Time Contactless Visa debit card • Direct Debit facility • Functionality mirrors the current account • International usage with competitive FX rates • Facility for expenses or wage payments to staff or one off

payments • Virtual cards • Issue fee of £24.95 and monthly fee of £4.95 to cover all

functionality (plus minimal usage fees for some services including: Chaps, FX etc.)

The Engage ‘ Youth SmartCash’ account A personal account for junior members aged 8yrs -16yrs

• Perfect for pocket money, receiving wages from part time job etc. • UK sort code & account number • Real Time Contactless Visa debit card • Controlled spending online/high street • Controlled daily spend limit • Parental consent and access • Restricted loading capability • One off fee of £10.00 and a low cost restricted ATM fee • Special cashback rewards and offers from Game, Argos etc.

All accounts provided along with…

Mobile phone app

Envelope money management tool (Jam-Jars)

Plus… Engage ‘Instant issue’ cards

Beat the payday lenders by making the issuing of loans and other payments simple, quick, cost effective and secure

• Eliminate cash and cheques - issue loans and emergency payments to instantly

• Reduce costs (£3 per card or less) no need to pay to transport cash to and from the credit union premises, no security

costs etc.

• Members can use the instant issue card in retailers or withdraw cash from ATM

• Simplified due diligence – cards issued from the front desk

• Reduce security risks – no cash required on premises

• Reduce admin duties

In order to fully engage with members and others in the community, let’s make community banking the most rewarding experience possible

We can help Credit Unions out-behave the banking competition …

…by providing extra value and benefits at every available touch-point

Real cash rewards from national retailers…

…and now from community providers

Rewards and discounts of up to 10% off everyday local products and services available to credit union members who use their card at participating local retailers and service providers All cashbacks generated and distributed electronically to members via their Engage account – no admin required!

With extra benefits for the credit union

• Create a greater high street presence for the credit union

• Introduce retailers to the concept of banking with the credit union

• Engage support from the local authority, housing associations etc. • Will help the credit union to keep local money in the community

and away from the out-of-town retailers

Use your

card here

and earn

cash rewards

We are proud

to support…

Get your card today

www.solentcreditunion.co.uk

Exclusive Market Place utility offers and daily deals

Available only to credit union members via the Engage account portal and mobile phone apps with each product or service will earn a revenue for the credit union

60% off

How have we we done so far

• Some 156 Credit Unions have become Engage Partners • They have opened some 120,000 accounts • 57% of these were previously financially excluded persons • Participating unions have see a 12% membership growth • Engage has become their national brand!

Conclusions

• Engage has demonstrated the power of Fintech • In under 12 months we change an industry that was lacking direction, by showing them the way to sell Financial

services on a collective platform, so greatly reducing their costs • We have created a recognised brand, which is truly International • The parties have delivered financial inclusion at no cost to the customer • Contis proved it could use technology to open an account securely in under 5 mins, whilst being AML/ KYC

compliant

The Contis Payments Eco-system

Applicants can open an account in less than 5 minutes

Contis operates on

the issuing side of the eco

system

Providing an e-money

bank account with Visa debit card attached

Equaling services of any banks’ current

account… but better

Offers Full Agency Banking

BANKS

MERCHANT AQUIRERS

INDIVIDUALS & CORPORATES ISSUERS

CONTIS AGENT BANK

Contis routes to Market

We have 3 routes to market

B2B2C Own branded

products sold via referral partners

B2B Client branded

programs utilising our technology backbone

and distributed to their customer member base via established

channels

E2B Enabling financial service innovators

via our APIs to access Contis’ technology

and licences

Thank you for listening any questions?

Presented by Peter J Cox Executive Chairman and Founder Contis Group Limited Navigation House, Belmont Wharf, Skipton North Yorkshire, BD23 1RL peter.cox@contisgroup.com Mobile: +44 (0) 7870 131 888 Office: +44 (0) 1756 693 245