Florian Moser Fidor

1 | ©2016 | confidential information

No-Stack Banking with the Model Bank of the Year

2015*

*awarded by Celent, an Oliver Wyman Company

No-Stack Banking with the Model Bank of the Year 2015*

Fidor Bank AG

Florian Moser – Business & Product Development

@moseflo

2 | ©2016 | confidential information2

No Stack Banking by Fidor BankThe Bank and its tec stackProject set-upCommercial Model and going forward


We see more and more “stackless” business models

The world’s biggest…

…taxi company owns (almost) no cars.

…accommodation provider owns no

real estate.

…popular media owner creates no

own content.

…most valuable retailer has no inventory.


Payment and Banking are constant companions

Get up, breakfast, check your account

Buy a ticket for the metro

Grab a breakfast

Pay your colleague for lunch

Pay a bill

Book concert tickets

Buy some beers

• Regular active requests by the customer

• Regular touch points with the customers

• More and more is done mobile

• Part of the day-to-day needs and activities

• Customer rewards useful notifications


Banking services can enrich various business models that lack this day-to-day contact

Retailers Cash-Back services

Telcos

Utility provider Media/TV companies Insurances

…or Gaming communities, lifestyle, car manufacturer – or any kind of greenfield start-ups


No-Stack Banking?Partner 100% customer orientation, product definition, brand, customer base, added-values!

Our contributionBanking license +

API

Your contributionBrand + customer

base

Fidor Bank 100% tec-driven digital banking processes, API supported, regulated, proven!


No-Stack Banking is a branded software-as-a-service solution for 100% digital banking services

New services and add-on features

New data endpoints

Digital reputation

Enhanced loyalty and stickiness

Monetization of existing processes and new revenue sources


No-Stack Banking offer

• We provide or you design the native and responsive apps, using our APIs

• We provide the technology• We provide license shelter,

and banking services• We manage the regulations

and compliance• Our (customer) services are

a feature of your solution• We offer additional services

like design, UX, customer service, analytics

• You pay as you grow


Fidor Bank – a tec-driven and regulated entity• Full European Banking license since

2009 with ongoing internal + external audits (KPMG, Deloitte)

• Own balance sheet >300 m EUR

• MasterCard Principal Membership

• Regulated by German Financial Supervisory Authority “Bundesanstalt für Finanzdienstleistungsaufsicht” (BaFin) under No. 120505

• Assets protected under the German deposit protection fund

• Strong (internationally) experienced Management Team

• Based in Munich (HQ) with customer service in Berlin and offices in London and New York

• Bank Giro Account• Credit Card Issuing

(Co-Branded Debit MasterCard)

• SEPA network transfers

• Global money transfer

• Overdraft loan• Consumer loan*• Emergency loan• Saving deposits• Capital bonds

Banking Products

• Regulatory reporting

• Treasury and settlement services

• Risk management• Scoring• AML/PEP/sanction

systems and checks• Customer

identification (KYC) processes

• Customer service• 3rd party

management• Debt collection

services

Banking Processes

Set-up of full white label banking and payment services at a minimum

cost base - pay as you grow!

*in development


The Tec-Stack

Fidor Bank + fidor Operating System

core banking system (by G&H)

+ add on modules(AML, SEPA etc.)

APIs

Partner UX• Fidor’s infrastructure is

modern and modular

• State of the art two-speed architecture that combines regulatory core banking system with a highly flexible middle layer (fidor Operating System) and your front-end

• No legacy systems

• Developed in agile oriented Ruby/Rails

• Highly open infrastructure through best in class REST APIs with OAuth 2.0

IndividualPresentation Layer


fidorOS Modules and technical set-up for No Stack BankingfidorOS is a suite of white-label ready, API enabled application modules for digital banking

fidorOS is designed to work seamlessly with our core banking system. It not only provides all the basic banking functionalities but it also is expandable, thanks to its modular design

- All hosting stays within Fidor’s premises

- Regulatory-wise, all customers are Fidor customers

- Own core banking instance allows 1:1 customer relation without Fidor approaching the customer

- Fidor IBAN

fidor

OS

API

Community

App Manager

Banking CMS Backoffice

Analytics Scoring Module

Identity Service

fidorX

Loyalty Module

MasterCard Gateway

Message Bus

Core Banking System BANCOS by G&H

Entity Fidor Bank Germany

White Label Banking 1

White Label Banking 2

White Label Banking …

White Label Banking n

Regulatory customer ownership: Fidor Bank AG

Economic Customer relation 1

Economic Customer relation 2

Economic Customer relation …

Economic Customer relation n

Mobile banking offer 1…n

Mobile Apps Fidor Bank Germany

Web banking offer 1…n

Web Banking Fidor Bank Germany

13 | ©2016 | confidential informationp. 13

Selection of APIs Available TodayWe use these for customer projects and native apps

Account The Account API allows listing accounts of a customer, viewing an account, creating an account, and updating an account.

Customer The Customer API creating customers, updating customers, viewing customer data, viewing the FIN, and updating the FIN.

CardThe Card API supports listing all cards of an account, ordering a card, viewing card data, viewing the PIN, changing the limit, canceling, locking, unlocking, blocking and activating a card. We also support wish pin, where a customer can set their pin when ordering.

Short Term Loan API to request a short term loan for an account, create a short term loan, and show the current short term loan

Overdraft API to list overdrafts for an account, create overdrafts, or update overdrafts.

Global Money Transfer

API for customers to make Global Money Transfers, backed by The Currency Cloud service.

Blocked Amounts API supports services blocking an amount in an account for a specific period of time. Example use case is with card authorization.

Transactions API to access transactional data

Transfer APIs APIs for internal transfers, SEPA, Batch, etc…


Technical set-up

fidorOSAPIs

Apps Native Apps iOS

Android

Multi Language

Easy ReBranding

modular

Technology,Core Banking,

AML, transfers,etc…

by Fidor


• Mobile only solution• Fidor’s experienced Project

Management team takes care of Project Implementation & Delivery

• Minimum Viable Product• Cooperation: Virtual Joint Venture

Native App Development with Partner Android iOS

Exemplarily MVP based on current project• Mobile only Bank

Account inkl. mobile onboarding

• Contactless Debit Card• SEPA Transfer• Instant P2P

closed-loop transfer to friends

• Personal Finance Manager

• Objective: Primary banking account for customer

• Add-on features based on partner API

DEMO

http://prototype.fidor.de/prototype/login/fy08gi/


Illustrative MVP Concept: multi-phase/agile rollout for a fast market entry with regular product updates

2016 2017 2018 2019

# of customers

5K 50K 150K 250K

Phase 1

• Mobile App• 60 sec KYC• Basis

transactions• Card• Integration of

partner loan/payout functionality

Phase 2

• Payments• Push

Notifications• In-App Data

Changes

Phase 3

• Emergency Credit

• Overdraft• Savings Bonds

Phase 4

• Installment Loans

• Saving Plans• International

accounts


White Label Native App provided by Fidor to be extended and branded

• 3 Step Onboarding• Customer provides all

relevant data• Country Specific• Identity verification• Account opening



• Immediate Account opening and IBAN provisioning

• Legitimation via Video-Ident or Post-Office process



• Login via e-Mail or Mobile Phone Number



• Account overview• Info about pending

notifications• …



• Card display (PAN, CVC, expiry date)

• Block card• Set card limits• Deactivate ATM • Order new card



• Send money to friends



• Send money to other banks


No-stack banking enables you utilize economies of scale and potentially to participate in revenue share

Fidor Provides full stack banking services, including technology, regulatory processes, transaction desk etc. with a “pay as you grow” concept

Revenue Share in virtual joint venture optional

Variable 3rd party and transactional costs

SEPA transfers (in/out)Internal transfers (P2P)Credit Card productionCredit Card processing costsKYC (video or classic)Customer service inquiriesCustomer Ident and core banking registration...

Technical Set-Up (API, Mobile

App integration/development etc.)

Yearly Banking Operations fee per

customer

Indicative high-level offer


3 reasons for teaming up with Fidor!

Fast Go to Market: Speed matters! – Fidor is expert in developing 100% digital banking1

From Bankers to Bankers: We know how to bridge the gap between regulation and new technological developments2

Low Risk and cost through digital processes, success related pricing and co-entrepreneurial spirit3


Thank you!

Dr. Florian Moser Business & Product

DevelopmentFidor Bank AGSandstraße 33, 80335

MunichGermany [email protected]

@moseflo

Florian Moser Fidor

Economy & Finance

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