NayaOne Insights

2. Executive Summary Collaboration: Alliances, Acquisitions, Investments Digital Finance: Digital Payments and SMB Finance Embedded Finance: Buy Now Pay Later Web3: Metaverse & Digital Assets ● Megabanks in the US and UK are forging alliances with tech providers and digital platforms to launch digital banking, embedded finance, and BaaS offerings ● HSBC made two strategic investments in the UK - a consumer credit infrastructure firm and a niche-focused neobank ● SMB-focused initiatives formed the majority among initiatives from challenger banks in the UK and SMB- focused in the US ● Retailers, BigTechs, accounting platforms, and digital travel agencies made a beeline to launch embedded finance propositions ● Launch of metaverse ETFs, crypto exchanges, crypto staking services and crypto custody solutions targeted at institutional investors made the headlines ● Multiple mid-tier banks launched metaverse propositions and joined the web3 buzz created by megabanks with the launch of metaverse branches earlier in 2022 ● Enabling merchants to accept and make digital payments has emerged as a key focus area for FinTechs in their quest to leverage the pandemic-led shift in the digital behavior of consumers and businesses ● Technology and distribution partnerships among customer platforms and capabilities providers are enabling embedded finance propositions Regulatory: Responsible Innovation and License Approvals ● Multiple regulatory agencies in the US drummed up the need to balance innovation and consumer protection leading to the coinage of: Responsible Innovation ● Crypto payments, crypto trading, and national banking charter were among the key licenses issued in the US, the UK, Europe and Middle East regions NayaOne

3. Emerging FinTech Themes #OpenBanking #OpenAPIs #EmbeddedFinance #Web3 #Blockchain #Tokenization #RegTech #Neobanks #ChallengerBanks #BankingTechnology #BankingAsAService #SustainableFinance #NetZero #GreenBanking #Partnerships NayaOne

4. Mega Banks and Asset Managers bet on Strategic Alliances,M&As, and Strategic Investments Digital Finance Incumbents’ Initiatives ● Mega banks doubled down on their partnerships with fintechs, neobanks, technology firms, and BaaS platforms to gain access to modern tech capabilities to launch new digital subsidiaries and innovative offerings for customers across the globe. Asset management firms and insurance distributors also collaborated to gain access to complementary capabilities and distribution platforms with a renewed focus on climate-centric offerings and insurance. ● Notable mentions Standard Chartered partnered with Fairprice Group to launch digital bank in Singapore - Trust Bank. JPMorgan Chase acquired Renovite to speed up its ability to roll out new offerings to merchants. Modern Treasury and Goldman Sachs Transaction Banking (TxB) partner to offer integrated software and payments to corporate clients. HSBC Ventures invests $35m in Monese to support the continued growth of Monese’s industry- leading, cloud-based Platform- as-a Service business. Climate Tech Investment Vehicle Indonesia e-commerce firm Bukalapak and Standard Chartered have launched BukaTabungan, a digital banking service leveraging nexus, a banking-as-a-service (BaaS) solution powered by Standard Chartered. Payload partnered with JP Morgan to deliver ACH, card network, real-time payments through a unified API platform and tackle complex payment workflows of industries like real estate, insurance, legal payments, etc. Price Discovery & Idea generation tool Product teams from both companies have committed to a mutual product roadmap to address new client needs, tighten the integration, and offer mutual clients a unified product experience. HSBC invests $10m in Nova Credit to get a global access to startup's cross-border credit data product. Borderless International Credit Checking Integrated life insurance with financial plans. NayaOne

5. Digital payment acceptance, Efficient corporate spending, and Investment portfolios for Businesses Digital Finance Challengers’ Initiatives ● Financial SuperApp aspirants such as Cash App and Revolut have stepped up on enabling digital payment access for small businesses and merchants to ensure they take advantage of the behavioral shift towards digital payments that happened during the pandemic. Automation of financial operations for businesses emerged as another key focus area among fintechs. Brex, a merchant focused fintech in the US, automated financial operations activities by partnering with Rippling while Starling Bank made bulk payments to suppliers and employees and easier for their business clients. ● Adyen partnered with Cash App to offer Cash App outside of the Block ecosystem. Starling Bank introduces a new Bulk Payments feature to help UK small businesses pay suppliers and support payroll. Revolut launches Revolut Pay, an online checkout feature with one-click payments for UK and EEA merchants. Rippling, the leading unified workforce platform, and Brex, the company reimagining finance for growing businesses, expanded their partnership with a new set of features allowing customers to automate and customize their financial operations, leading to tighter financial controls and more efficient corporate spending. ETFmatic, a whitelabel WealthTech platform, and Aion Bank, a European digital bank, are offering an end-to- end investment solution to companies across Europe. Businesses working with Adyen will access Cash App Pay as an integrated payment method for their U.S. customers. This will enable SMBs to pay multiple recipients account in one go, thus saving time and efforts. Revolut Pay offers fast, secure, one-click checkout and options for consumers to earn cashback, providing a best-in-class payment experience. Investment plans include portfolios with exposure to global equities, local government bonds from asset management firms, and thematic portfolios focusing on ESG, energy, technology, or a blend. NayaOne

6. Embedded Banking, SMB Payment Acceptance, and BNPL Embedded Finance Non-Banks in Finance ● Embedded finance witnessed a massive participation from retailers, mobile platforms, accounting platforms, and digital travel agencies. A wide range of financial services such as bank accounts, digital payments, pay later services are actively being embedded in customer journeys. Technology and distribution partnerships are driving the embedded finance propositions with a diverse range of players from non-banking industries launching financial services on their platforms to reduce transaction costs & purchase friction while improving customer experience. ● Walmart, the retail commerce firm, has announced plans to offer bank accounts and related services to its 1.6 million employees through its FinTech Platform - One Finance. Sage, the leader in accounting, financial, payroll for SMBs, partnered with Square, the payments technology provider, to enable businesses to take payments anywhere – in- person, online or over the phone. Apple Pay Later, the BNPL service, was not included in the first release of iOS 16. Amadeus, in partnership with Uplift, will bring BNPL services to its Amadeus Xchange Payment Platform used by airlines and travel companies for everything from fraud prevention to payment acceptance. Alternative Airlines, an UK- based online travel agency(OTA) which offers more than 600 airlines globally, is offering more flexibility and choice to UK users by launching BNPL services in partnership with ClearPay. Apple announced that the Pay Later service would be coming in a future update for qualifying applicants in the United States for purchases online and in apps on iPhone and iPad. The OTA had partnered with Afterpay to launch flexible spending to travellers in the USA in 2021. NayaOne

7. Core banking, Open Banking, ESG Platforms, and Cloud Adoption FinTech Infrastructure Digital Transformation ● New-age core providers accelerated partnerships with tech providers with a focus on Open Banking and Buy Now Pay Later offerings. There was a renewed focus on adoption of cloud services among incumbent core banking players such as Jack Henry. Megabanks such as JPMorgan Chase and Standard Chartered Bank focused on launching a digital platform for ESG discovery and risk mitigation platforms for trade finance respectively. ● Carbon, a credit-led digital bank in Africa, has extended its partnership with Mambu to continue growing its financial services offering and to accelerate expansion. Tuum, an API-first and modular core banking platform, has partnered with Salt Edge to help financial services providers to leverage the full spectrum of open banking features. Standard Chartered completed a pilot of the Trade Financing validation service provided by MonetaGo over SWIFT, designed to mitigate the risks of duplicate trade finance fraud. J.P. Morgan has launched ESG Discovery, a new digital platform aimed at providing investors with a central source for ESG views from the firm’s sector and ESG analysts, and enabling assessments of current and forward-looking company and sector material ESG risks, opportunities and impacts. Jack Henry, a leading provider of technology solutions for the financial services industry, announced its collaboration with Google Cloud to accelerate its multi-year modernization strategy. Jack Henry aims to build cloud- first technologies to modernize existing data, reporting, and integration systems while creating a new set of services that form a modern digital core for banks and credit unions. The agreement also enables Carbon to launch Carbon Zero, its new BNPL service. Fiinu, a UK fintech group, has selected Tuum as the core banking platform to power its overdraft solution. NayaOne

8. Metaverses, Crypto Custody, and Ethereum Staking Web3 Digital Assets, Virtual World ● Web3 initiatives are gaining traction among financial institutions as the FOMO intensifies. From metaverse ETF for investors, to building services in the virtual worlds, FIs are not just dipping their toes anymore but getting into the deep end of the web3 pool. Crypto custody and staking for institutional clients is also emerging an area of significant interest. Financial institutions are leveraging their client trusts to position themselves as a safekeeper of digital assets by partnering with custody-tech enablers to launch digital asset custody solutions. ● Carbon, a credit-led digital bank in Africa, has extended its partnership with Mambu to continue growing its financial services offering and to accelerate expansion. Sygnum Bank launched a metaverse lounge on Decentraland as a virtual equivalent of New York's Time Square. Investment firm giants Charles Schwab, Citadel and Fidelity Digital Assets has launched a new cryptocurrency exchange named EDX Markets. DBS Bank has partnered with The Sandbox, a blockchain- based metaverse gaming platform, to build new services for clients in the 3D virtual world that uses digital avatars and has planned buy land in the metaverse to create the ‘DBS BetterWorld’ and build a virtual community. Stock market operator Nasdaq made a significant push into crypto by launching a digital asset custody service to offer bitcoin and ether custody services to financial institutions and other institutional investors. SEBA Bank launched Ethereum staking services for institutional clients to earn staking rewards on Ethereum. The agreement also enables Carbon to launch Carbon Zero, its new BNPL service. NayaOne

9. Regulatory Trends #Regulations #Licenses #RegulatoryInitiatives #Sanctions #RegulatoryEnforcements #Consultations #WorkingPapers NayaOne

10. Responsible innovation, Metaverse Data Privacy, Buy Now Pay Later Guidance, and Digital Assets Regulations Policy Making Reports & Papers ● Responsible Innovation has emerged as a key priority theme driving the development of digital assets in the United States. Several agencies across the U.S. government have been working together to develop frameworks and policy recommendations with a key focus on consumer protection and financial inclusion. The Treasury and financial regulators are also focusing on providing innovative U.S. firms developing new financial technologies with regulatory guidance, best- practices sharing, and technical assistance through initiatives like tech sprints and Innovation Hours. ● The White House Office of Science and Technology Policy released a report on the environmental and energy impact of crypto assets and recommended monitoring and regulation in response. The Congressional Research Service ('CRS') has released a report entitled 'The Metaverse: Concepts and Issues for Congress' raising issues surrounding data privacy and the metaverse. The Financial Services Regulatory Authority (FSRA), the financial regulator of Abu Dhabi Global Market free economic zone (ADGM), has published its “Guiding Principles” on its approach to digital asset regulation and supervision. The Consumer Financial Protection Bureau (CFPB) has published a report on the Buy Now, Pay Later industry. The CFPB plans to issue guidance to oversee BNPL vendors and have them complete supervisory exams in line with credit card company reporting requirements. The White House also released a comprehensive framework for the responsible development of Digital Assets in the US. NayaOne

11. National Bank, Crypto trading, Digital Asset Services, and Crypto Payments Licenses Regulatory Initiatives Approvals & Supervision ● Western world countries such as the UK, France and Middle Eastern countries such as Abu Dhabi and Bahrain witnessed a slew of license approvals for crypto related services such as crypto trading, digital asset management, and crypto payments. In the United States, The Bancorp Bank, which provides banking and card issuing services to a number of fintechs, became a national bank and is now regulated by the Office of the Comptroller of the Currency (OCC). ● The Bancorp Bank completed the charter conversion process with the Office of the Comptroller of the Currency (OCC). The Bank will now operate as a national bank under as The Bancorp Bank, N.A. Crypto trading and digital banking app Revolut won registration from the United Kingdom's Financial Conduct Authority to offer crypto services in the U.K. Crypto.com received regulatory approval in France from from the Autorité de Contrôle Prudentiel et de Résolution (ACPR) and is now registered as a Digital Asset Service Provider (DASP). eToro received an In-Principle Approval from ADGM to operate as a securities, derivatives and crypto broker in Abu Dhabi. The Central Bank of Bahrain gives the nod to EazyPay, an online payment platform, launching crypto payments for more than 5,000 payment gateways in the country. National Banking Charter Crypto Trading Registration Digital Asset Service Crypto Brokerage Crypto Payments NayaOne

12. Collaborative Innovation Imperatives #OpenInnovation #APIs #Hackathons #Incubators #Accelerators #DigitalEcosystems #Talent #Sandboxes #VentureBuilders #Co-creation NayaOne

13. Collaborative Innovation and Co-creation In Action Collaborative Innovation Co-creation in Action ING and CCV, specialist in payment solutions, have developed SoftPOS, a business app that turns any Android smartphone or tablet into a mobile cash register and payment terminal for contactless payments. Santander joined SAP Multi-Bank Connectivity to help companies reduce the complexity of embedding financial services into ERP applications. TSB Bank recently launched TSB Marketplace to connect customers and businesses with fintechs for savings, investments, payments, carbon footprint tracking, insurance, and financial management. Ajman Bank has announced the launch of Mastercard Touch Card, an accessible payment card that will allow blind and partially sighted people to easily facilitate payments and distinguish between their cards. NayaOne

14. Collaborative Innovation is Hard! Collaborative Innovation Concepts & Themes For more details, refer to the full report: Open Innovation Report ● ● ● ● ● Effectively engaging innovators with the platform, both inside and outside the organisation Gathering and managing the data required to successfully deliver Proof of Concepts (PoC) Swiftly navigating from PoC stage to production environments for commercialization Cultivating an innovation culture that supports both disruptive and incremental innovation Breaking organizational silos to share best practices and optimize processes and workflows Key Challenges of Collaborative Innovation 10-24 Month Process 1. Discover 2. Evaluate 3. Scale to Production PROVISION INFRA DATA ACCESS EVALUATE SOLUTIONS DEPLOYMENT CHECKLIST PRODUCTION READINESS GO LIVE SOURCE SHORTLIST ONBOARD 1-6 Weeks 8-12 Weeks 4-8 Weeks 6-10 Weeks 10-12 Weeks 4-20 Weeks 1-4 Weeks 4-8 Weeks 8-16 Weeks NayaOne

15. FinTech Infrastructure Case Studies #BuyNowPayLater #Innovation #NewProduct #DigitalCredit NayaOne

16. FinTech Infrastructure Use-case : BNPL 1 Objectives and Challenges New product proposition Buy Now Pay Later Integrate multiple fintechs together in order to be able to launch a BNPL product quickly Approach & Capabilities NayaOne Marketplace 2 A BNPL solution to allow banks to compete against existing competitors but with existing risk models. Solutions one may consider are: ● ID verification solution – such as Jumio, Shufti or AplyID ● a credit/risk identification solution such as Algoan, Actico or Bankish ● determine the risk of a payment and chances of fraud via Kount ● distribute the payments such as Stripe or Checkout.com These solutions can all be delivered by NayaOne Sandbox API and built into a solution rapidly 3 Business Benefits Recapture millennials that traditionally would have used credit and increase the customer acquisition NayaOne

17. FinTech Infrastructure Use-case: Customer Acquisition Objectives and Challenges To offer their solutions such as credit offerings, investment options, and insurance products to the millennial users at relevant life moments while also building a more engaging application to acquire customers 1 Being able to quickly access all of the tech to build this type of solution whilst also testing alongside banking tech and data is hard Process Improvement Customer Acquisition 2 Approach & Capabilities NayaOne Marketplace Envizage - an API first company that helps to build financial products quickly and allows banks to connect existing parts of their solutions or other 3 Business Benefits Increase the customer acquisition and also increase the number of products a single customer buys. NayaOne

18. NayaOne provides banks with a single point of access to hundreds of fintechs and datasets through Digital Sandbox and FinTech-as-a-Service offerings. Follow us on @NayaOne @Naya_One www.nayaone.com NayaOne