Fintech On the brink offurther disruptionDecember 2020 Deloitte Financial Advisory NetherlandsValuation & Modelling Corporate Finance

Table of contents1. Introduction22. Fintech disruption73. Investment activity – global scene124. European ecosystem165. Deloitte services22Why does this reportmatterBoardIt is important to establish a clear strategy to deal with Fintechs for companiesactive within the financial sector. This report provides key factors andconsiderations to consider when engaging in strategic partnerships oracquisitions.FintechsFintechs have changed how financial services are structured, delivered andconsumed, but many have not successfully established themselves as dominantplayers yet. The next challenges in their growth path are investigated in thisreport.Structure of the reportThis is a five-part report. After providing an introduction on the totalFintech market, the second part provides perspective on the changes thatFintechs have brought to the financial services industry, including identifiedopportunities, interaction with incumbents and what is the promise ahead.The third part gives an overview of Fintech global investment activity,including breakdowns per deal type and regions, and an analysis ofpotential COVID-19 effects on the industry.The fourth part zooms in on the European Fintech ecosystem andcontinues with an overview of the evolution of the Fintech landscape, mostimportant deals and deal activity of incumbents.We conclude with an overview of specific M&A and valuation relatedchallenges in executing Fintech deals.Financial institutionsCooperation between financial institutions and Fintechs encounters severalhurdles. This report provides ideas for enabling better, more efficient cooperationbetween incumbent Financial institutions and Fintech startups.Strategy & M&ADeal activity within the Fintech space is constantly evolving. By tracing investmentactivity from a global level to the European ecosystem, this report assesses thegeographies and segments that received the highest investments and potentiallyoffer the highest growth potential.

01Introduction01 Introduction 2020 Deloitte The NetherlandsFintech On the brink of further disruption2

FINTECH INTRODUCTIONFintech continues to transform the financial services industryFrom crisis to crisisThe term Fintech (Financial Technology) refers to computer programs and othermodern technologies used by businesses that provide automated and improvedfinancial services.Since the last global financial crisis, investments in Fintech have been growing.The expansion of the sector was largely a technological response to theshortcomings of the traditional financial services industry, which came underextreme pressure during and after the crisis.Currently, the COVID-19 pandemic has initiated another recession. We have seenthat since the COVID-19 outbreak the financial sector, together with the energyand real estate sectors, has experienced the largest market capitalization loss,primarily due to concerns about increased credit losses.On the other hand, accommodative measures by governments around the world(labor costs compensation, income support, financing facilities etc.) are likely tohelp borrowers meeting loan obligations amid an environment of rising defaults. 2020 Deloitte The Netherlands2nd wave of FintechDespite the COVID-19 pandemic, we appear to have entered a new phase in theevolution of the financial technology sector. The thinking of many financial institutions has evolved, they're now seeking toteam more with emerging technology companies to gain access to newmarkets and products, greater efficiencies, or just the "secret sauce" thatmakes innovation go. At the same time, many Fintechs themselves have sought to join with largefinancial institutions to expand into new markets, extend their client network,gain industry and regulatory knowledge, and even simply cash out.The rise of Fintech, changing consumer behavior, and advanced technologies aredisrupting the insurance industry. Insurtechs and technology startups continue to redefine customer experiencethrough innovations such as risk-free underwriting, on-the-spot purchasing,activation, and claims processing.Fintech On the brink of further disruption3

FINTECH INTRODUCTIONOverview of Fintech servicesPERSONAL FINANCEPAYMENTS & BILLINGLENDINGINSURTECHMONEY TRANSFER &Tools to manage bills and trackpersonal and/or credit accountsPayments processing, carddeveloper & subscription billingMarketplace lending,microlending & alternativeCompanies selling insurancedigitally providing data analyticsREMITTANCESsoftware toolsunderwriting platformsand software for (re)insurersInternational money transfer andtracking softwareBLOCKCHAINCAPITAL MARKETSWEALTH MANAGEMENTMORTGAGE ®TECHCompanies leveraging blockchaintechnologies for financialSales & trading, analysis, andinfrastructure tools for financialInvestment and wealthmanagement platforms andREAL ESTATEAudit, risk, and regulatorycompliance softwareservices, crypto-exchanges andcrypto-currenciesinstitutionsanalytics tools 2020 Deloitte The NetherlandsMortgage lending, digitization,and financing platformsFintech On the brink of further disruption4

FINTECH INTRODUCTIONThe APAC and Americas command the highest market share of the global Fintech market,with APAC being projected to be the fastest growing regionGlobal Fintech marketGlobal Fintech revenue to grow by 11.7% (‘19 – ’24) Global Fintech revenues in 2018 were about 92 billion in 2018 and areexpected to grow to more than 188 billion in 2024 (pre-COVID-19 forecast).Americas The Fintech markets in the APAC and Americas regions are currently the largest,with both having around 40% of the global market share. The EMEA region issignificantly smaller, with around 20% of the total market share. The Fintechmarket in the APAC region is projected to be the fastest growing.APAC188EMEA174CAGR*11.7%15963143 The digital payments market is the largest segment within the Fintech spectrumand accounts for more than 80% of global Fintech revenues.126 Although COVID-19 causes uncertainty in the Fintech market, it createsopportunities for the Fintech market as well. The adaptability and innovation ofFintechs makes the sector well positioned to realize their growth : Mordor Intelligence, Deloitte analysis 2020 Deloitte The 0232024Global Fintech revenue ( bn). Note: actual figures up until 2018. These numbers are originally denominated inUSD, and were converted to EUR by the Sept. 2020 EUR/USD FX rate of 1.18*Compounded annual growth rateFintech On the brink of further disruption5

FINTECH INTRODUCTIONFintech share prices have relatively outperformed the traditional financial servicesindustry in the past two years, especially since COVID-19The share prices between global Fintechs and traditional financial institutions have diverged since September 2018 In the graph on the right, therelative share pricedevelopment of Fintechs andthe traditional financial servicesindustry is shown.160 The STOXX Global Fintech Indexincludes Fintech companies likeAdyen, Visa and PayPal, whereasthe MSCI WRLD Financials Indexmainly consists of traditionalfinancial institutions.130 Since September 2018, theSTOXX Global Fintech Index hasrisen by c. 50%, while the MSCIWRLD Financial Index fell by c.4%.90 Fintech share prices recoveredwithin four months after COVID19 impacted capital markets,while traditional financialservices industry prices have notyet fully recovered. 2020 Deloitte The Netherlands150Index 153STOXX Global Fintech IndexMCSI WRLD Financials Index140120110100Index 9680706050Sep 2018Nov 2018Jan 2019Mar 2019May 2019Jul 2019Sep 2019Nov 2019Jan 2020Mar 2020May 2020Jul 2020Sep 2020Nov 2020Share price development in Global Fintech vs. traditional financials (September 2018 index of 100). Data is displayed for the period 3 September 2018 - 14 December 2020Source: Capital IQFintech On the brink of further disruption6

01Introduction02 Fintech disruption 2020 Deloitte The NetherlandsFintech On the brink of further disruption7

FINTECH FINTECH DISRUPTIONFintechs have changed how financial services are structured, delivered and consumed,but many have not successfully established themselves as dominant players yetWhere Fintechs have succeededWhere Fintechs didn’t meet expectationsROADMAPFintechs have seized the initiative – defining thedirection, shape and pace of innovation acrossalmost every subsector of financial services – and havesucceeded as both stand-alone businesses and crucialparts of financial value chains.CUSTOMER INERTIACustomer willingness to switch away fromincumbents has been overestimated. Customerswitching costs are high, and new innovations are oftennot sufficiently material to warrant the shift to a newprovider, especially as incumbents adapt.USER EXPERIENCEFintechs have reshaped customer expectations,setting new and higher bars for user experience.Through innovations like rapid loan adjudicationFintechs have shown that the customer experience barset by large technology firms, such as Apple andGoogle, can be met in financial services.INFRASTRUCTUREFintechs have struggled to create new infrastructureand establish new financial services ecosystems,such as alternative payment rails or alternative capitalmarkets. They have been much more successful inmaking improvements within traditional ecosystemsand infrastructure.CONCLUSIONFintechs have materially changed the basis of competition in financial services but have not (yet) materially disrupted the competitivelandscape.Source: Deloitte, Beyond Fintech - A pragmatic assessment of disruptive potential in financial services 2020 Deloitte The NetherlandsFintech On the brink of further disruption8

FINTECH FINTECH DISRUPTIONAlthough Fintechs have not yet disrupted the competitive landscape, they have laid thefoundation for further future disruptionSome financial institutions have turned the threat of Fintechs into an opportunity The rapid growth of the Fintech ecosystemallows firms to externalize parts of theirinnovation function, as they wait and see whichnew offerings gain traction before deploying theirown solutions.The rise of Fintechs provides financialinstitutions with a “supermarket” forcapabilities, allowing them to use acquisitionsand partnerships to rapidly deploy new offerings.Where Fintechs have laid the foundation for further future disruptionThe accelerating pace of the innovation cycle infinancial services means that an incumbentfinancial institution's success is predicated onbusiness model agility and the ability torapidly deploy partnerships, neither of whichare traditional core competencies of theseinstitutions.Source: Deloitte, Beyond Fintech - A pragmatic assessment of disruptive potential in financial services 2020 Deloitte The NetherlandsThe ability to shop the Fintech landscape forcapabilities is not limited to incumbents; newentrants face significantly lower technologicalbarriers to entering financial services, withpotential long-term implications for thecompetitive landscape. Fintechs that offer uniqueconsumer convenience and marketplace entryhave paved the way for further future disruption.SantanderSantander is one of the market leadingretail banks that leapt onto thedisruptive fintech wagon. Apart fromtheir 100% online bank, SantanderOpenbank, based in Madrid, thebanking giant has also made significantsteps into cryptocurrency, throughOnePay FX, a blockchain-basedinternational system available for theircustomers, used to send and receivetransfers between individuals indifferent countries.AdyenCurrently with a market cap of c. 50bn,Adyen is a global payment companyand one of the top European Fintechs.Adyen’s all-in-one platform acceptspayments everywhere and offers aseamless experience for business andcustomers. Previously, the paymentsindustry had multiple incumbents andintermediaries, which Adyen hasalready disrupted, due to itstransparency, ease of adaption andmarketplace agility to transform to newand upcoming business models.Fintech On the brink of further disruption9

FINTECH FINTECH DISRUPTIONCooperation between financial institutions and Fintechs encounters several hurdlesOrganizational speed bumps canundercut Fintech propensity for rapidexperimentation Financial institutions (“FIs”) internaldecision-making processes and riskmanagement requirements can hinderthe collaboration with Fintechs, thatgenerally use a fast-fail approach. External factors as regulatory andcompliance considerations can alsodelay the process, with a potentialcyber breach as a common dealbreaker.Don’t mistake a clear view for a short distance Fintechs have the freedom and innovative culture but lack the money andthe industry knowledge. FIs have the money and knowledge but are boggeddown by the organizational structure and its legacy systems. The strengths and weaknesses of Fintechs and incumbents are clear andshould be complementary, but the chasm is not as easily to bridge as itseems.Process barriers are often a majorhurdle Each department within a financialinstitution often makes its owndecisions on whether to invest in, buy,or partner with a Fintech, or to developits own solution in-house. This lack of coordination, internalawareness and communication withinfinancial institutions is one of the mostcommon obstacles in the collaborationbetween Fintechts and FIs.CollaborationobstaclesGeneric pitches and a lack of industryexperience undermine startupcredibility FIs have become more demandingabout their Fintech expectations. The focus has shifted from “cool”generic ideas to practical solutionsaddressing specific problems in aparticular financial services sector. FIs and investors prefer more certaintyon their investment, leading toinvestments in later funding rounds andless new Fintech launches. COVID-19may reinforce this tendency.Financial institutions struggle toestablish expectations and to measuresuccess There is debate on whether to usequantitative or qualitative metrics whenmeasuring the success of investmentsin Fintechs, potentially complicating orparalyzing the collaboration. An example of a quantitative metric isthe ROI, while qualitative metrics are“squishier”, with neither being right orwrong.Source: Deloitte, Closing the gap in fintech collaboration – Overcoming obstacles to a symbiotic relationship 2020 Deloitte The NetherlandsFintech On the brink of further disruption10

FINTECH FINTECH DISRUPTIONFive opportunities are identified in the Fintech industry that give an overview of what ishappening now with COVID-19, and what is the promise aheadOpportunity 1: Continued acceleration of partnershipsAn important outcome of COVID-19 for Fintechs may well be the continued acceleration of partnerships. The ability to adapt and innovate quicklyleads to many Fintechs creating new products and offering digital solutions. This creates the opportunity to develop new partnerships, as financialinstitutions often lack such skills. There will be partnership opportunities with other Fintechs, big tech and nonfinancial services firms.Opportunity 2: Advancing financial inclusion programsThe economic disruption of the COVID-19 pandemic is highlighting the importance of serving people who are currently outside the financial system,both in developing and developed economies. It is possible that COVID-19 may lead to greater financial inclusion as a result of recent governmentprograms around the world to help low-income households. Fintechs can play an important role, perhaps through strategic partnerships across abroad ecosystem of players.Opportunity 3: Accelerating economic relief effortsNumerous payments companies may be well positioned to aid in the more rapid disbursement of government relief funds, especially to thosewithout bank accounts.Opportunity 4: Empowering gig workersGig economy workers are another attractive segment for Fintechs. Given their inconsistent or unpredictable income patterns, gig workers typicallyhave unique financial, insurance, and tax requirements. For this reason, they are generally underserved by banks, making them a growingopportunity for Fintech firms. While it is unclear how COVID-19 might impact the growth of the gig economy, Fintechs may end up targeting theseindividuals more directly.Opportunity 5: Harnessing the Internet of ThingsAnother area is Internet of Things (IoT) enabled contactless payments, such as connected cars that allow consumers to pay for gas or food withouthandling cash or other potentially infected surfaces. In fact, it is possible that COVID-19 will accelerate the adoption of IoT-enabled payments.Source: Deloitte, Beyond COVID-19: New opportunities for fintech companies 2020 Deloitte The NetherlandsFintech On the brink of further disruption11

01Introduction03 Investment activity – global scene 2020 Deloitte The NetherlandsFintech On the brink of further disruption12

FINTECH INVESTMENT ACTIVITYCapital invested increased in 2018 and 2019, fueled by market confidence in Fintechs. In2020, the market anticipates the effects of COVID-19 which might have triggered a(temporary) decrease in deal numbersGlobal deal activity in Fintech: Capital invested ( bn)VCPEM&AIPOOtherMedian Capital Invested and Median Post-Valuation ( m)Capital Invested MedianDeal #Deal sizes and valuations increase as per 2018,confirming the increasing maturity of Fintechdeals5,091As per 2018, a shift towards M&Adeals is observed, indicating thatFintech is 101023%27%2.41015%2020 highlights thepotential effects ofCOVID-19, with a lowerdeal oney Valuation 01720183%8%20195%6%2020 Q3 12014201520162017201820192020 Q31Source: Pitchbook, Financial Times. Deloitte analysis. Data per 30/9/2020. Note (1) Q3 data is per 30/9/2020. The derived data may include a time lag; hence some deals may be missing 2020 Deloitte The NetherlandsFintech On the brink of further disruption13

FINTECH INVESTMENT ACTIVITYThere was a steady increase in the invested capital for Americas and EMEA throughoutthe 2016-2019 period. In 2020, we observe a particular decline in Fintech deal activity inthe EMEA regionAmericasEMEAAPACTotal Capital Invested ( bn)Nearly 50% of the 3.9tn in globalM&A recorded this year involved UStargets, enough to power 4th highestglobal M&A activity2,229Despite COVID-19 Asia saw ahigh # of megadeals in Q12020, such as Hengfeng Bankand Gojek, amounting to 12.8bn and 2.7bnrespectivelyStrong decline in Europepotentially caused by 61,2232019 2020 Q3 68191020172019 2020 Q31201420.818.713.813.21.220141.82015Strong spike in valuationsdue to a larger numberof highly valued deals27.41.520161.920178.52.220182.65.33.62019 2020 81.712.82.212019 2020 Q3201834.220142.8201520192512020 st-Valuation Median ( m)26.523.713.51,166 89643384Median deal size ( m)22.1Deal #20184.820195.7302010012020 Q3Source: Pitchbook, Deloitte analysis. Data per 30/9/2020. Note (1) Q3 data is per 30/9/2020. The derived data may include a time lag; hence some deals may be missing 2020 Deloitte The NetherlandsFintech On the brink of further disruption14

FINTECH INVESTMENT ACTIVITYAlthough 2020 YTD experienced a decline in early-stage VC deals, this was more thanoffset by late-stage VC deals which have kept the momentumVenture Capital Invested by Deal Type2 ( bn)AngelSeedEarly stageLate ure Capital Invested by Global Region (%)6.55%8.85%4%9.43%EMEAAmericasEuropean venture capital deals sawa steep decline in deals in Q1 2020,potentially due to 4%60%39%39%8%79%68%56%2019 Q12019 Q278%69%54%2019 Q378%60%51%55%2019 Q474%64%47%37%2020 Q12020 Q22020 Q3 12019 Q12019 Q22019 Q32019 Q42020 Q12020 Q2Source: Pitchbook, Deloitte analysis. Note (1) Q3 Data is per 30/9/2020. Note: (2) Deal types also include CVC (corporate venture capital) deals which are accounted for in the early-Stage and Late stage deals 2020 Deloitte The Netherlands2020 Q3 1Fintech On the brink of further disruption15

01Introduction04 European ecosystem 2020 Deloitte The NetherlandsFintech On the brink of further disruption16

FINTECH EUROPEAN ECOSYSTEMThe Fintech ecosystem consists of 3,482 European venturesEcosystem Outline explainedTo have a betterunderstanding of the currentstate of the European Fintechmarket, we have visualized theFintech ecosystem with thehelp of Deepview. In this partof the report we will zoom inon the European ecosystemand give an overview of itsevolution and key insights.This ‘ecosystem’ is createdusing text processingalgorithms that employNatural Language Processing(“NLP”) and artificialintelligence to map out theoverview of Fintechs inEurope, based on companydescription of the incumbentplayers in the market.Companies whoseoperations are similarenough, are given the samecolor, thus forming a‘cluster’. The closer theclusters are to each other, themore intertwined theirbusiness operations are.Sometimes these companiesindicate similarities with othercompanies in a differentcluster, represented by a line,connecting the two.The size of each cluster isexpressed as a % of thecompanies in that clusterrelative to the wholeecosystem.This section will furtherexplore additional qualities ofthe Fintech Ecosystem such asVisualized on the right is the the development of thepresent Fintech ecosystemecosystem, maturity of thein Europe. Each nodeclusters, etc.represents a company.European Fintech ecosystem (sum 3,482)Country of origin5.1% Distributed ledger technology5.9%4.4% RegTechCryptocurrencies6.4% Trading27%4.7% Investment management5.5% AI & analytics44%2.4% Financial Advisory3.1%8.9%Financial planningFinancial services software solutions5%5%2.5% Insurance brokerage6%6%4.2% CrowdfundingUK8.9% InsuranceGermany6.1% General bankingSpain3.7% Prop Tech9.3% Payments8%France3.6% Personal finance6.3% Alternative lendingSwitzerlandNetherlandsOther9.1%Accounting & InvoicingSources: Deepview, Capital IQ, Crunchbase, Deloitte analysis. Data per 08-04-2020 2020 Deloitte The NetherlandsFintech On the brink of further disruption17

FINTECH EUROPEAN ECOSYSTEMThe Fintech venture ecosystem grew fast in the last decade, but showed slower growth inthe last years201320162020 YTD1,080 companies2,446 companies2013-2016 CAGR 31.3%The Fintech ecosystem experiences substantialgrowth across existing clusters as well as inrelatively new clusters such as the PropTech andDistributed Ledger Technology cluster3,482 companies2016 – 2020 YTD CAGR 9.2%The Payments cluster has already been welldeveloped since a decade ago and 12% of venturesfounded until 2013 are of this clusterThe RegTech and Cryptocurrencies clusters gainground in the ecosystemNote: In the mapped ecosystem, 1,080 companies are founded before year-end 2013, 2,446 companies are founded before year-end 2016, and 3,482 companies are founded before 2020YTDSource: Deepview, Pitchbook, Deloitte analysis. Data per 08-04-2020 2020 Deloitte The NetherlandsFintech On the brink of further disruption18

FINTECH EUROPEAN ECOSYSTEMA deep-dive into the European Fintech ecosystem allows us to trace investment activityEcosystem HeatmapCompany #growth (20162020)# of Companies Founding Year2020 ting & Invoicing315201537%Financial services 437%(Alternative) lending219201428%General banking210Cryptocurrencies206AI & analytics189Distributed ledger technology176Investment 46201423%PropTech129201652%Personal finance126201550%Financial planning106201543%Insurance brokerage85201660%Financial Advisory82201317%2222015201720142017331. Payments, Accounting & Invoicing are the most dense and populatedclusters2. Financial Advisory is amongst the most mature clusters with a medianfounding year of 2013, whereas Cryptocurrencies and Distributed ledgertechnology are amongst the youngest, with a median founding year of 20173. Cryptocurrencies is the fastest growing cluster with a company # growth rateof 148% over the last 5 years, followed by Distributed ledger technologycompanies, with a growth of 126%41%148%28%Country126%Top Clusters per countryTrading, Insurance, Financial services softwareInsurance, Accounting & Invoicing, Financial services softwareAccounting & Invoicing, Payments, CrowdfundingAccounting & Invoicing, Insurance, PaymentsCryptocurrencies, Distributed ledger technology, Financial services softwarePayments, Accounting & Invoicing, CryptocurrenciesOtherPayments, Financial services software. Accounting & InvoicingSources: Deepview, Deloitte analysis. Data per 08-04-2020 2020 Deloitte The NetherlandsFintech On the brink of further disruption19

FINTECH EUROPEAN ECOSYSTEMThe largest European Fintech deals are generally in markets related to paymentstechnology and banking platformsCompany DescriptionDateDeal Size( m)Deal Type1Developer of an online payment platform designed to facilitatecashless payments through installmentsSep 20549Later-Stage VC2Operator of a mobile banking platformMay 20524Later-Stage VC3Provider of a mobile foreign exchange and money transferringapplication designed to help in global money transferJul 20512Later-Stage VC4Operator of a digital and algorithmically-driven insurancesyndicate platformSep 20422PE Growth/Expansion5Provider of online payment processing servicesJul 20253M&A6Developer of end-to-end billing service softwareSep 20252IPO7Provider of online marketplace for peer-to-peer lending createdto offer a mean of exchange between peopleSep 20150Buyout/LBO8Developer of a payment card designed to offer secure paymentservices in a managed service propositionApr 20147M&A9Provider of an online payments platform intended to track andsecure digital payments across the Internet by integrating endto-end payment technology that eliminates intermediariesJun 20134Later-Stage VC10Developer of a cloud-based FX trading platform designed toprovide foreign exchange e-trading servicesJul 20114M&ALeadInvestor(s)109816527431Source: Pitchbook, Deloitte analysis. Data per 30/9/2020. Notes: (1) SmartFin capital is the main institutional shareholder, second to Hans A. Leybaert, current CEO of UnifiedPost 2020 Deloitte The NetherlandsFintech On the brink of further disruption20

FINTECH EUROPEAN ECOSYSTEMA deeper view into Corporate Venture Capitals of European financial institutions indicateinvestment activity to be oriented towards FintechCompany DescriptionLatestInvestmentTotal # Investments1FintechNon-FintechCVC of Commerzbank. The firm provides early-stage and later-stage venture investments in thefinancial technology and financial service sectors215CVC of ING Group. The firm seeks to make minority investments in seed-stage, early-stage, and laterstage companies256CVC of Santander Group. The firm seeks to make minority investments in seed-stage, early-stage, andlater-stage companies359CVC of the Allianz Group. The firm seeks to invest in digital growth companies that are part of theecosystems related to insurance231317ABN AMRO Ventures (former ABN AMRO Digital Impact Fund) is the CVC of ABN AMRO Bank1115UBS is an investment bank and an asset management firm11Barclays provides general banking and investment banking services2231Barclays provides general banking and investment banking services2841Credit Suisse is an investment bank and an asset management firm2030BNP Paribas provides banking and financial services. The company continually seeks opportunities forgrowth and to expand through organic growth opportunities and strategic acquisitions2050Source: Pitchbook, Deloitte analysis. Data per 30/9/2020. Note: (1) These include investments since 2010 2020 Deloitte The NetherlandsFintech On the brink of further disruption21

01Introduction05 Deloitte services 2020 Deloitte The NetherlandsFintech On the brink of further disruption22

FINTECH DELOITTE SERVICESOur services cover the complete venturing lifecycle and support corporates in creatingand capturing value in innovative ecosystems1. Venturing strategy &positioning Develop venturing& M&A growth strategy Position for venturing2. Ecosystem scan &opportunities Explore innovative growthdomains Identify, validate & connect3. Partnership & dealexecution Design venturing options Deal executionCorporatesCorporates Develop funding roadmap Determine optimal fundingmixScale-ups1. Funding and M&A strategy 2020 Deloitte The Netherlands Identify relevant investors inthe ecosystem Market sounding2. Partnership identification Preparation, incl. marketingmaterials Funding process3. Deal executionFintech On the brink of further disruption23

FINTECH DELOITTE SERVICESWe can support ventures in obtaining the right source of funding to match their fundingneedFUNDRAISINGYour funding strategy should take intoaccount several key considerations:#1#2#3Where in the venture lifecycle areyou?What is your funding need?What added value do you expectfrom investors?The context is imperative to attract investment fromthe right investor(s) 2020 Deloitte The NetherlandsFUNDING OPTIONSFUNDING AGNOSTIC A. Equity raise (Minority) Equity investmentsJoint VenturesPartnershipsDisruptiveM&A Venture debt raising Debt &CapitaladvisoryEIB funding Asset basedlendingB. Equity raise (and founderliquidity) V

Santander is one of the market leading retail banks that leapt onto the disruptive fintech wagon. Apart from their 100% online bank, Santander Openbank, based in Madrid, the banking giant has also made significant steps into cryptocurrency, through OnePay FX, a