TransferWise Here Comes the Boom! East coast global consulting

Agenda Challenge Delia Key Issues & Objectives Recommendation Analysis Alternatives Chelsey Implementation Plan Allison Financials Jennifer Risks & Mitigations What Success Looks Like Delia EAST COAST GLOBAL CONSULTING

Challenge How can TransferWise dominate remittance services market and approach zero-fee target? EAST COAST GLOBAL CONSULTING

Key Issues Emergence of blockchain technology Outflow exceeding inflow Changing regulatory environments Reputational challenges Industry currently dominated by Big Banks EAST COAST GLOBAL CONSULTING

Key Objectives Increase client volumes to maximize revenue growth Manage liquidity position Mitigate potential security risks Curate reputation to obtain bigger clients EAST COAST GLOBAL CONSULTING

Recommendation Develop strategic partnerships with major banks to become the world’s leading low-cost remittance provider EAST COAST GLOBAL CONSULTING

Analysis Delia warren

International Remittance Environment THREATS: Blockchain disruption threats remittance services industry – eliminates fees Industry rife with money-laundering, sanction avoidance, and fraud Space dominated by large scale commercial banks & inexpensive, globally present competitors Lack of trust in online money transfer services OPPORTUNITIES: 30% of financial services to be owned by tech. companies, not banks by 2026; globalization Banks make international currency exchange expensive and cumbersome Avg. remittance fee $US12; avg. remittance amount $US200 – migrant populations Peer-to-peer money transfer gaining relevance and trust Operating in highly complex space with unpredictable future but huge potential EAST COAST GLOBAL CONSULTING

TransferWise Internal Analysis STRENGTHS: Powerful investors, “world’s most successful fintech unicorn” 10% international market share Transparent operations, registered compliance teams Operating in 50 countries globally Successful partnerships with small, startup banks WEAKNESSES: Lack of experience Service offering lacks innovation Navigating complex regulatory space – high risk Reputational damage (false ads, Hawala comparison) Susceptible to data breaches Facing liquidity issues Must navigate carefully to avoid major scandals and curate reputation to grow business EAST COAST GLOBAL CONSULTING

Competitive Environment Remittance Institution Value Proposition Western Union/MoneyGram Fast, low-fee service Broad service offering (phone, cash pick-up) Target low-value, high-volume remittances (C2C) OFX/ World First No fees Target higher-value remittances (C2C, C2B, B2B) Banks Trusted, globally established, secure Value proposition not unique enough to compete with established, low-fee remittance providers Strategic banking partnerships provide access to client volume and improve reputation – bigger clients EAST COAST GLOBAL CONSULTING

Financial Snapshot Jennifer button

Financial Snapshot $ US 151 Million Revenue 78% Revenue Europe 22% Rest of World EAST COAST GLOBAL CONSULTING

Remittance Market US$ 574 Billion in Remittances -Competitors 25% of this Business -US$ 430 Billion Available Transfer wise is saving customers US $2.65 M daily Goal of reducing transaction fees to zero (10 years) Need to increase volume of transactions Liquidity issues Currently borne by TransferWise EAST COAST GLOBAL CONSULTING

Countries to Target EAST COAST GLOBAL CONSULTING

Alternatives Chelsey king

Alternatives 1 2 3 Integrate Blockchain Technology Strategic Partnership Paypal Remittance Service Provider for Banks 1 2 3 EAST COAST GLOBAL CONSULTING

Alternative 1: Integrate Blockchain Technology Advantages Hedges against industry disruption Disadvantages Uncertainty around blockchain technology Loss of control over verification process Timeliness of transactions Energy inefficiency; costly Association with money laundering and corruption EAST COAST GLOBAL CONSULTING

Alternative 2: Strategic Partnership with Paypal Advantages Opportunity to operate in the ecommerce space “Bigger Picture” focus and Paypal support Leverage data security competencies Disadvantages Limited to Paypal’s reach Departure from peer-to-peer Does not address outflow exceeding inflow EAST COAST GLOBAL CONSULTING

Alternative 3: Remittance Service Provider for Banks Advantages Access to liquidity Access to all banking clients including businesses Leverage data security competencies Previous success with smaller banking institutions Reducing the risk of cross-boarder transfer to banks Disadvantages Symbiotic relationship with banks EAST COAST GLOBAL CONSULTING

Decision Matrix Key Objectives Blockchain PayPal Banks Increase client volumes to maximize revenue growth Manage liquidity position Mitigate potential security risks Curate reputation to obtain bigger clients EAST COAST GLOBAL CONSULTING

Recommendation Develop strategic partnerships with major banks to become the world’s leading low-cost remittance provider EAST COAST GLOBAL CONSULTING

Implementation Plan Allison penton

Implementation Plan Framework for Strategic Bank Partnership Defined Marketing Strategy Target Large Scale Clients Talent Management EAST COAST GLOBAL CONSULTING

Timeline Establish strategic partners with big banks Phase 1: 0-12 months Marketing campaign Talent management Continue seeking strategic partners Phase 2: 12-18 months EAST COAST GLOBAL CONSULTING

Framework for Bank Partnerships Number of Customers Reputation Volume of Transactions Geographical Footprint EAST COAST GLOBAL CONSULTING

Banking Recommendations USA Bank of America China HSBC India Royal Bank of India EAST COAST GLOBAL CONSULTING

Benefit of Partnership TransferWise Access to more clients Improved liquidity - Reputational advantages Added security features Financial Institutions Increased volume of transactions Low-risk option Commission fee EAST COAST GLOBAL CONSULTING

Marketing Strategy Digital Marketing Campaign Increase SEO and Blog Articles Peer-to-Peer Marketing Campaign Promote Low Transfer Fees EAST COAST GLOBAL CONSULTING

Cybersecurity Department Talent Management Software Developers Marketing Leads Sales Lead Cybersecurity Department Data Analysts EAST COAST GLOBAL CONSULTING

Enhanced Security SMS Verification Code _ _ _ _ _ _ Two-factor authentication Decreases risk of security breaches Financial Institution Security - Capitalizing on current security mitigations existing within SMS Verification Code _ _ _ _ _ _ EAST COAST GLOBAL CONSULTING

Financials Risks & Mitigations Jennifer button

Financial Analysis EAST COAST GLOBAL CONSULTING

Where is the money coming from? Use existing cash EAST COAST GLOBAL CONSULTING

Risks and Mitigations Lack of buy-in from Big Banks Competition Medium risk Providing opportunity for banks to reduce risks and still make money Lack of buy-in from Big Banks Joining banks, not trying to beat them. Improving reputation through partnerships. Competition Low risk Immature technology Customer uncertainty Block Chain Disruption EAST COAST GLOBAL CONSULTING

Conclusion Delia warren

What Success Looks Like Increase client volumes and maximize revenue growth Manage liquidity position Mitigate potential security risks Curate reputation to obtain bigger clients Partnership with large scale banking institutions in USA, China and India Leveraging financial position of big banks and building reputation Leveraging bank security protocols Two factor authentication Become world’s low-cost remittance provider EAST COAST GLOBAL CONSULTING

Questions? Thank you!

Contingency Plan Sell company to Paypal - Familiar with business - Capitalize on e-commerce transactions - Mature markets EAST COAST GLOBAL CONSULTING