Delivering Lasting Value in Digital Banking For AllJuly 2014

BANKINGUP

Banking Up at a GlanceWe deliver full checking account capability via mobile and web on top of prepaid foundation

ToBusinesses and Financial Institutions with large audiences of cash-based customers

All consumers regardless of income & bankability

WithHighly scalable & quickly configurable platform in an SSAE-16 / PCI-DSS redundant environment

Team headquartered in New York, and software development in Europe

Achieving1MM accounts since inception, 24-month account longevity, >80% in direct-deposited funds

Scale and innovation trusted by leading issuers like H&R Block

$4.6MM in 2013 revenues

Banking Up Platform

Prepaid (Visa / MC)

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Successful Team

Patrice Peyret, CEOSerial entrepreneur with 30 years experience in technology; co-founder and CEO of Mobileway (Sybase); CEO of Integrity Arts (Sun Microsystems); software engineering at Schlumberger, Thomson/RCA and Gemplus

Billions of consumers, devices, messages & value creationCarles Guillot - Chief Service Architect

Justin Surman - CTO

Daniel Clark - Financial Controller

Jon Hennen - Director of Operations

Board with Financial Technology expertiseInvestments in over 50 companies

>$7B in multiple exits to large strategic acquirers

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The Challenge of Good Banking For All100MM+ consumers at stake in the US alone

Strivers(under-banked)

54MM• "choose to use“• "financial resetters“• "men at work"

“On The Rise”(mass-banked)

30MM

College Students

11MM• Financially aware now• Reluctant transitionners

“Angry banked”

More MM

Source for all numbers: VISA Feb 2013

Offered the wrongproducts by non-bank market players

Median Survival of cash loaded prepaid cards

1.6mo

Acquisition cost for checking accounts:

$350in branch

$140online

Under-served &over-chargedby banks

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$1T Opportunity in the US

$0

$250

$500

$750

$1,000

$1,250

2012 2018

Potential Prepaid-based Accounts 2012 2018Underserved Consumers $649 $778

Mass Banked Consumers $215 $274

College Students $82 $100

Teens $40 $51

$ in Billions

Volume comes largely from cash, checks and money orders

Segment needs differ

All segments strongly prefer to acquire from a financial institution

Sources: Visa Inc., U.S. Prepaid Industry Segment Opportunity Sizing Study, August, 2011; Visa Inc., Segmentation Study of Banked Non-Owners of Reloadable Prepaid Cards, December, 2011

Less than 5% of $1.2T prepaid-based market potential have been penetrated so far

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Deposit

PayCardChecksDirect Debit

Solution

SaveRainy Day ReserveCash-back earnedHealth Discounts

CashSalary

ChecksTransfers

Branchless, paperless (but not yet checkless) consumer banking24x7 access via mobile, PC or tablets

Debit card for purchases & ATM access

Direct Deposit via ACH

Deposit checks at Wal-Mart or at home1

Pay anyone with on-demand paper checks

Cash loads at 50,000 retail locations

Based on FDIC-insured, Reg. E protected, no-overdraft prepaid accountsNo check-eligibility verification2

Lower back-end operating costs(“pooled” accounts)Can be Durbin exempt(higher interchange revenues)

1: Requires smartphone with camera2: CHEX system in the US

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Address Key Pain-Points

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1. Avoid trips to the check casher

2. Receive direct deposits

3. Write checks to your landlord

4. Build a safety net automatically

5. Avoid trips to the phone store

6. Save on everything

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Private-Labeled Services for Businesses

Transaction Processor

Co-branded Prepaid 2.0 in-a-box

Payment Network

Issuing Bank

Turnkey• Deposits• Payments • Savings for Customers of the Business

Extended Processing and Risk Services

Bank and Network Management

BINs and Programs Set-up

Compliance, Risk and Settlement

Fee Scheduling& Extended Payments

Portfolio Optimization

Configurable Loyalty Engine

Real-time Reports & Analytics

Consumer Interactions

Web & Mobile Interfaces

Editorial & Marketing Tools

$

Black Lists & Fraud Mgmt.

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Extended Processing and Risk Services

Platform Services for Financial Institutions

F.I’sProcessor

Extend prepaid platform to deliver full checking capability with real-time CRM

Network

F.I’sBack-EndSystems

F.I.’sStaff

Bank and Network Management

BINs and Programs Set-up

Compliance, Risk and Settlement

Fee Scheduling& Extended Payments

Portfolio Optimization

Configurable Loyalty Engine

Real-time Reports & Analytics

Consumer Interactions

Web & Mobile Interfaces

Editorial & Marketing Tools

A la carte extensions of F.I.’s processor and integration

with F.I.’s back-end

Most advanced portfolio

management tools

$

Black Lists & Fraud Mgmt.

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Clients Portfolio of Accounts

AccountsOpening Costs

Banking UPShare of

interchange Private Label Deployments

Accounts Revenues

Businesses

PlatformServices

Accounts Operating Costs

Financial Institutions

Private LabelDeployments

Platform Services

revenues: ≈1% of POS payments (interchange) + monthly, ATM and support service feescosts: processing, Bank BIN & network, support, optional share of interchange to Client

revenues: set-up fee + recurring operating fee + per-account monthly success feecosts: platform hosting & monitoring, program management service bureau staff

Business Model

Interchange & Fees

Processor & Bank BIN

Outreach to Consumers

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Exemplary deployment (UPside Visa® Card)

Virtuous Market Player

Industry Validation

• Low price ($0 -$4.99/month) / rich features

• Best Life Time: 24 months• Best direct deposit

performance: >80% in $• 4-time winner of Paybefore

magazine awards

• First to implement CFSI’s prepaid fee box

• First “Compass Principles” Champion

• “Project Catalyst” partnership with CFPB

• VISA’s top innovating partner• Powering H&R Block’s 3MM

Emerald MasterCard®• Wal-Mart’s first deployment

for Rapid Reload®

The Metrics Of Success

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H&R Block uses Banking Up to:• Communicate and let their franchisees

communicate with customers via the card account online dashboard (whenever people check their balance and statements)

• Increase the longevity of accounts through key services: pay rent and bills with paper checks and top-up prepaid cell phones

• Measure & analyze the behavior of customers via our real-time CRM service

Case Study:

1in7Americans file taxes with H&R Block at 11,000retail tax offices

3MMEmerald Prepaid cards issued / year to receive tax refunds

+100% year over year users

+ 40% direct depositors

+ 80% re-loadersMeasured in May 2013

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Competition

Basic or partial service

Full DDA service

Proprietary Processing

Adapts to LegacyBack-Ends

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1 Now part of FIS 2 Acquired by Google3 Acquired by BBVA

1 3

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Who’s Interested?

5th US TV NetworkReaches 93.8MM households. 1.8MM daily average viewers

US Largest Prepaid Network25MM subscribers; most are under-banked

#434 of Fortune 500Serves 14,000 Financial Institutions in 110 countries

4000

GOOD

THRU 03/16DEBIT

CARDHOLDER NAME

4000 1234 5678 9010

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PooledPeer-Lending

Platform

First-to-Market with “Financial Services Ladder”Give Access to Credit and Help (re)build FICO Scores

Secured Credit Card where security deposit = prepaid savings purse

Unsecured Credit Card = 2nd-step upgrade from secured card

Prepaid Card = “everyday payments”. Always safe. (Secured) Credit Card = “credit building payments”. Use with caution.

Prepaid and Credit cards remain entirely separate for compliance with CFPB & Treasury rules

Help (re)build a Safety NetIncentivize savings with higher-than-market interest rates

Partner with Peer Lending platform with insurance protection to generate the required interest rate

Deposit

Pay

Save

Prepaid Card

Borrow

SecuredCredit Card

Security Deposit

Deposit

Pay

Save

Prepaid Card

Un-securedCredit Card

Decisioning

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Addressing Industry-wide Problems with PartnersKeep un-banked employees away from check cashers

Make both Direct Deposit & Checks easy to accept by un-banked employees

Employer Portal inviting Employees to self-enroll in GPR Card + install a Mobile Deposit Capture App

Better for Employees: use with multiple jobs or when changing job

Better for Employers: no change to payroll system, no regulatory worries

Potential partners: IDology, Ingo Money, prepaid card providers (H&R Block, TracFone, Univision…)

Don’t leave the un-banked out of the Affordable Care ActFast payment-enablement of ACA applicants with online & mobile prepaid card sign up combined with in-store pick up at nearest participating retailer

Potential partners with retail card distribution capabilities: H&R Block, Blackhawk, Incomm…

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Funding

$4.3MMSeries A

$6MMSeries B led by CoreVC

Next: extension of Series BFund expansion of platform for new vertical markets

EBITDA positive by end 2014

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Unique Opportunity$1T Opportunity to serve everyone online + mobileSolution delivers great value regardless of asset and income level

Multi-channel distribution: banks, employers, insurances, other F.I.’s

Product validated by direct-to-consumer model; scales with private label partners

Proven platformLeverages online & mobile Internet, Visa and EFT networks

Expandable with fast iterations and open published APIs

Chosen by large US issuer for its consumer financial services

Proven consumer-facing business modelSpend <$25 to generate >$120 life-time revenue on >$4,500 gross deposits

Increase lifetime value with single-minded focus on expanding customer relationships

Proven teamSuccessful repeat entrepreneurs

Experts in consumer & financial services technologies

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info@bankingup.com1-212-671-1015

Banking Up55 Broad Street, Floor 7New York, NY 10004

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