WeBank presentation by Henry Ma

1. WeBank：Digital Banking Decoded

2. WHY

3. Copyright © 2015 - 2019 WeBank. All Rights Reserved.
Financial Inclusion in China - Significant Progress, Room for Improvement
61%
Mobile Payments（%）Bank Accounts（%）
80.2%
0
0.2
0.4
0.6
0.8
1
45%
0.47
2014 2018
Numbers of credit card
per person
0.34
3
Adults with a basic
bank account
Adults who have used
mobile payments
Data from 2017 World Bank Findex,
Payment & Clearing Association of China
0
10
20
30
40
45%
9%
28%
37%
Financial
Institution
Friends &
Family
No means for
emergency
funds
Borrowed in Previous Year
(% adult population)

4. Copyright © 2015 - 2019 WeBank. All Rights Reserved.
WeBank : China’s 1st Digital Bank
4
Tencent Owns
30%
Digital bank
backed by Tencent
Driven by technology
and innovation
Operations
24*7
Banking solutions
Anytime, Anywhere
>50%
IT Staff

5. HOW

6. Copyright © 2015 - 2019 WeBank. All Rights Reserved.
Connecting FIs & Business Together to Serve the Underbanked
Un/Underbanked Individuals SMEs
6
Data
Industry / Scenarios
User
Penetration
Risk Management
Capital
Product
Financial Institutions
Product Design
Data Analysis
Technology
+ +

7. Key Attributes of Inclusive Finance：3A+S
7
Affordable
Accessible
Appropriate
Sustainable
A
A
A
Focused on SMEs & Unbanked/Underbanked segments
Lower transaction costs, acceptable service costs Diverse product offerings with industry-best UX
A business model driven by tech innovation to achieve sustainability

8. Copyright © 2015 - 2019 WeBank. All Rights Reserved.
Open Banking :
The Effective Way to Build Digital Banking and Expand Inclusive Finance
Traditional Banking Inclusive FinanceVS
HNWIs
High ARPU
Low Frequency
High Value
Branch-Based
Mass Market
Low ARPU
High Frequency
Low Value
Context-based
75% Blue-Collar Workers
72% Interest < 100 RMB
53% Transactions during Non-office hours
Avg. 8,100 RMB/loan
Target Segment
Revenue/User
Weilidai : Inclusive Finance in Action
Open banking enables more inclusive, contextual financial services
>>
User Behavior
8*Data as of Dec 2018

9. Copyright © 2015 - 2019 WeBank. All Rights Reserved.
Popular Definition of Open Banking : API Banking
APIs enable data sharing between banks and third parties to improve customer experience
APIs
Bank
Open API
Third party
(Customer touchpoint)
9

10. Copyright © 2015 - 2019 WeBank. All Rights Reserved.
WeBank’s Propositions for Open Banking : Three Opens
Open Innovation Open CollaborationOpen Platform
Build an ecosystem around
yourself
Enable your partners to build
similar ecosystems
Connect various ecosystems to form a
Collaborative Business Ecosystem
Open source software, IP licensing and
reference implementations used to
encourage and empower partnerships
Collaborative business alliances formed
on top of distributed technologies
API, SDK, H5 technologies used
to provide banking services with
3rd party
10

11. WHAT

12. Copyright © 2015 - 2019 WeBank. All Rights Reserved.
Developing Digital Banking with Cutting-Edge Technologies : ABCD
( ─────────────── )
Efficiency * UX * Scale
Cost * Risk
OptimizeValue of FinTech：
12
• Chatbot
98% of inquiries handled by chatbot
• Remote KYC
FAR<= one in a million
• A/C Mgmt & Reconciliation
financial-grade, 50M+ transactions w/o error
• Arbitration Chain
dispute resolution reduced from 6+ months to ~7 days
• ARM-Infrastructure
stable and secure
• Distributed Architecture
10k standardized servers
• Precision-Marketing
customer acquisition reduced by 93%
• Smart Risk Mgmt
100K+ variables; 300 models of 30 types
Artificial Intelligence Blockchain
Cloud Computing Big Data

13. Copyright © 2015 - 2019 WeBank. All Rights Reserved.
FinTech Drives Digital Banking Agile
13
+
Distributed Architecture
DCN
ADM ADM
DCN DCN
FinTech Components
+ + +AI Blockchain Cloud Data
Rapidly Scale-out Product to Market
Time to Market IT Operation Cost
High frequency &
Large volume transactions
2days 11days
China’s
Traditional Banks
WeBank Customer Scale Peak Transaction Rate/day
>100mm
346mVS
CNY 20-100
/account
/year
CNY 3.6
/account
/year

14. WeBank

15. Copyright © 2015 - 2019 WeBank. All Rights Reserved.
- 0.6
0.4
1.45
2.47
2016 2017 2018
2015
9.6
52
81.7
220
2015 2016 2017 2018
4.96
19.83
>60
>100
2015 2016 2017 2018
0.10%
0.32%
0.64%
0.51%
2015 2016 2017 2018
# of Customers (1 million) Total Assets (1 billion RMB)
NPL Profit (1 billion RMB)
Effective Promotion of Financial Inclusion with a Robust and Sustainable Growth
*Data as of Dec 2018 15

16. Thank You