BUSINESS FINANCIAL MANAGEMENT

Taking the complexity out of business finance

BFM

© Strands Inc. 2016

Ω

1 VALUE PROPOSITION

BFM: THE NEW WAY OF BANKING FOR SMEsThe comprehensive digital banking solution for managing business financials in a more simple, efficient and engaging way.

1. BFM VALUE PROPOSITION

No way to track or forecast cash flow, AR/AP

Too many different tools to manage day-to-day tasks

Dispersed, unintelligible financial data

Prohibitive costs to professional financial management services

40% need advice to run business more effectively

and plan growth

70% have no relationship with a bank manager

Manual invoicing

1 2 3

5

4

6 7 8

42% would switch to a bank or Fintech that

shows an understanding of their business

Source: IFC, World Bank

PAIN POINTS OF THE “MISSING MIDDLE”

Corporate Banking Retail BankingSMEs

“There is an alarming disconnect between what small businesses want and what banks deliver.”

1 . RECONCILIATION

Business owners can balance the books

easily and painlessly so they are never in

the red

Automatic and accurate forecasting helps SMEs

gain peace of mind while taking full control over their business direction

2. FORECASTING

Generates relevant and actionable insights

enabling business owners to take their business to

new heights

3. INSIGHTS

Provides helpful advice specific to the user’s

actual business activities

4. RECOMMENDATIONS

BFM USER JOURNEY

WITH BFM SMEs GET:

Smarter business decision making based on relevant, personalized insights powered by Big Data analytics

Flexibility for businesses at all stages, from startups to established companies to better understand and manage their finances

Real-time access to all financial accounts powered by Strands Meta-Aggregation engine

Simple, intuitive and stunning data visualizations for an unparalleled user experience

1. BFM VALUE PROPOSITION

DESIGNED FOR 3 SEGMENTS1. BFM VALUE PROPOSITION

Business Name: Pale Design Name: Jonah Pale Age: 33 Years in business: 1 Sector/Industry: Prof.Services Turnover p.a. : $78k Employees: self-employed

Business Name: Chicdress SL Name: Chloé Pierrot Age: 42 Years in business: 8 Sector/Industry: Retail Turnover p.a. : $2.5M Employees: 20

Business Name: Games Corp Name: Sanjay Singh Age: 37 Years in business: 15 Sector/Industry: Software Turnover p.a. : $25M Employees: 110

FREELANCER SMALL COMPANY MEDIUM COMPANY

3 PRODUCT FEATURES

3. BFM PRODUCT FEATURES

FUNCTIONALITY OVERVIEW

Track Analyze Plan

Income & Expenses Budgets

Financial Calendar Smart Notifications

Cash FlowTransactions

Business Benchmark

Invoicing Provisioning

Customer Insights

Data Aggregation

Dashboard

Dashboard Get a 360º view of business finances

Frictionless UI with colourful data visualizations deliver an instant snapshot of how your SME customer’s business is doing

TransactionsManage and customize transactions

Instead of a static list, transactions become actionable through search, filter, edit and split functions

Track

E-InvoicingTake full control over your payment cycle

Makes AR/AP management effortless and enables banks to handle end-to-end payment cycles for SME customers

Track

Financial CalendarVisually monitor your financial commitments

An interactive heat map shows daily, monthly and yearly spending patterns

Track

Periodic Payments Track recurring payments

Payment performance is trackable and enables proactive anticipation of any repayment issues

Track

Smart Notifications Always stay informed

Track

Personalized, behavior-based triggers deliver relevant, actionable messages in real time

Income & ExpensesBring transparency and clarity to your financial data

Enables users to visualize expense categories and income sources over a defined date range through a frictionless, intuitive UI

Analyze

Cash FlowReview & forecast incoming and outgoing cash flow

Your SME customers can analyze and understand cashflow by tracking historic, actual and forecasted inflows & outflows

Analyze

SMEs can better understand who their customers, how often do they buy, create segments and more

Customer Insights Retailers can analyze their customer behavior

Analyze

Optional for retailers

Users can obtain a holistic, data-driven picture of the competitive landscape with the anonymous comparison tool

Business BenchmarkBenchmark your business against similar ones

Analyze

Plan

Users can create monthly budgets to monitor and track all their business expenses. They can also drill down into each budget to view the purchase history

BudgetsKeep your business expenses under control

Plan

Custom thresholds allow business financial goals to be met faster and more intelligently

Provisioning Realize your business growth goals

External Data AggregationHolistic overview of all relevant financial information

Strands enables external data aggregation by pulling together accounts from different banks and retrieving invoicing and accounting data from ERPs.

Different accounts can be aggregated - business accounts, corporate credit cards, investment accounts, etc. - into a single place providing holistic overview of business finances.

PSD 2Banks Cards APIs

3 BUSINESS CASE

THE PAYOFF FOR THE BANK

Higher customer satisfaction, higher rates of customer retention, and higher revenues per customer

Empower your most lucrative segment: SME deposits are 4x greater and balances are 15x higher than retail banking customers

Understand your customers’ specific needs to offer relevant products & services at exactly the right time

Reduced operating costs: Process automation means more resources to add higher-value advisory

3. BFM BUSINESS CASE

THE WAY TO GENERATE NEW REVENUE FOR BANKS Offer SMEs value-added services

3. BFM BUSINESS CASE

Did you know?

More than half of SMEs are willing to pay an additional $10 every month for personalized business financial management services

Banks (in the UK) could open up to £8.5 billion in new revenue streams by 2020 by delivering value-add products and services to SMEs

If banks are unable to address SME pain points, 1/3 will turn to non-banks to make payments, access loans, and manage transactions.

£8.5 BILLION

+10$

1/3

Source: Accenture “SME Banking 2020”, Aite Group

BANKS ARE PREFERRED FOR EASE & SECURITY Compared to non-bank technology providers, SMEs value solutions provided by their bank

Cat

egor

y Ax

is

Ease: I enjoy the convenience of accessing all of my banking products at a single location

Security: I trust that my bank has done the necessary due diligence on the vendor/technology

Relationship-based pricing: the more products I use at the bank, the deeper the discounts I receive

Other

Value Axis0 0,15 0,3 0,45 0,6

3 %

37 %

58 %

59 %Ease:

Security:

Relationship-based pricing:

Source: Aite Group

3. BFM BUSINESS CASE

WIN-WIN FOR ALL STAKEHOLDERS Relieves pain points & generates value for SMEs and banks:

BUSINESS OBJECTIVES

Relieve 7 major SME pain points: (1) cost-efficient, affordable solution offered by the bank

(2) intuitive visualizations of all financial data in one place

(3) data-driven cash flow tracking & forecasting

(4) smart invoicing and AR/AP tracking

(5) direct engagement with SME banking professionals

(6) dashboard for 360° overview of finances

(7) one-stop-shop for personalized financial advice

Reliable, safe and secure solution

SME BANKS

BUSINESS OBJECTIVES

Meet digital banking expectations: bank manager becomes the ideal business partner

Increase SME retention & acquisition: by understanding their specific needs better

Generate direct revenue stream: business customers are ready to pay for such services because it’s a “need” rather a “want”

3. BFM BUSINESS CASE

BECOME THE GO-TO BUSINESS PARTNER FOR SMES Enable your customers to centralize all their business finances

3. BFM BUSINESS CASE

BFM

Bank 1 Bank 2 Bank 3

3rd party accounting software

Lending platforms

ERP

Any external data source…

Bank accounts

Credit/Debit Cards

Invoices

3. BFM BUSINESS CASE

BFM

Bank 1 Bank 2 Bank 3

3rd party accounting software

Lending platforms

ERP

Any external data source…

Bank accounts

Credit/Debit Cards

InvoicesUS

BECOME THE GO-TO BUSINESS PARTNER FOR SMES Enable your customers to centralize all their business finances

THANK YOU

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