Fintechisrael Inaugural 9.16.09

Inaugural Event l September 16th, 2009

Our  Sponsors

Formal Agenda • Introduction to

• Remarks from Oded Zehavi Remarks from Oded Zehavi

• Presentations from

Investors

Entrepreneurs Industryy Professionals

Alumni

Who’s Here

“Our Our goal is to bring together Israeli Startups, Industry Professionals,  goal is to bring together Israeli Startups Industry Professionals and Investors to foster innovation in the world of financial services”

Our Focus

The Motivation: Main Street Modernization

The Motivation: Wall Street Modernization

PROPERTY OF THE US GOVERNMENT The Motivation: Reconfiguration of Wall Street

The Motivation: Israel’s History in FinTech

The Motivation: Recently Funded Startups

Defining the Space

Our Team

Our Plan Speakers. Startups. Networking. Every 8 Weeks. Website. Blog. Twitter. Facebook & LinkedIn Groups. Affiliations with NetBanker. BarCampBank. MIT Forum. 

Join Us. Help Us. Support Us.

About our Keynote

Risk

Innovation and risk i k are "j "joined i d att the hip” Zero risk. Zero innovation.

Innovation

Payment Systems

Regulation

Payment Systems

Innovation

“II think that all great innovations are built upon rejections” Louis-Ferdinand Celine

18

Payment Systems

While innovation generally leads to a need f new regulations for l ti ... Regulation can be a major cause of innovation

There is very little doubt that “insufficient regulation” led to rampant innovation of risky financial products that resulted in the current international financial crisis

Mobile Payments

Mobile Banking

Mobile Commerce

Mobile Payments

Mobile Payments

Mobile Payments

Mobile Payments

Currently We are headed to… Banks

Retailers, Merchants, Public transport companies

MNOs Customer 27

Mobile Payments

Mobile Payments

Mobile Payments

What is M-PESA ?What is M-PESA ?

• Money transfer by SMS • Fast, Safe, and Easy to use • Available to anyone • noo need eed for o a bank ba account accou t • no joining fee • no monthly charges • no minimum balance

• Pay As You Go charging model 08/05/07 – WBZ

M-PESA

Regulation

CBK has placed the maximum limit of KES 50,000 (EUR 489) per M‐Pesa account per day  and a transaction limit of KES 35,000 (EUR 343) per day in order to mitigate against  settlement risk.  Also, the bank has proposed and formulated the enactment 

of the National Payment System Bill that will strengthen  its mandate as an oversight body over all payment  systems

including money transfer. 

Mobile Payments

Mobile Payments

http://rbidocs.rbi.org.in/rdocs/PressRelease/PDFs/87064.pdf

Payment Method Landscape = Jungle

Alternative Payment Systems

PayPal’s history 1999

1998

www www. 2000

2002

.com com

How PayPal Works Funding source

Buyer

Seller

Destination

Debit card

Bank Account

Approved Countries

PayPal a account

Credit card

PayPal a account

N New seller ll

PayPal balance

PayPal balance

Bank Account

Approved Countries

PayPal’s value proposition extends internationally

41

PayPal Growth

Innovative Products Mobile Payment badge Team lunch fund Contribute to taco Tuesdays!

Pay Later Skype Send $ Plug in Plug-in

43

Confidential and Proprietary

Nothing to Lose (or Risk Tolerance is a Competitive Weapon)

• Different risk tolerance level for legal risk when PayPal first launched, it was pretty clear that their product violated the operating rules for Visa, Mastercard and American Express -- and violated banking regulations is more than 40 different states

• Different risk tolerance level for financial risk PayPal spent over $15M in marketing fees in 2000 and lost over $169 Million that year. ear http://redeye.firstround.com/2009/03/nothing-to-lose-or-risk-tolerance-is-a-competitive-weapon.html

Regulation

The Pre Paid World

The Pre Paid World

Global Payouts y Via Pre Paid Cards

How SEPA will change the payment market?

Tesco

Source: Finextra.com, July 2008.

Regulation and Innovation are intricately Linked

The links between regulation and innovation are ambiguous which adds to the complexity. They are ambiguous because regulation l ti can h have b both th a positive and negative impact on innovation outcomes and policy p y objectives. j

Non‐bank payment operators start with a lower cost base since they do not have to comply with costly banking regulation imposed by the financial regulator.

So both sides of the equation need to change

Q&A

8 minute Company Presentations

September 2009 AcCells Confidential and Proprietary

Unbanked Case video

AcCells Confidential and Proprietary

www.accells.com

Mobile Payments 1.0   can’t reach its full potential because… because

Mobile Payments y 1.0 is based on two technologies which are limiting factors NFC

SMS

Requires an upgraded mobile  handset

Slow overall process

Aimed exclusively for markets  in developed nations

Prone to errors and misidentifications 

Expensive (High rollout  CAPEX)

Lack of proper security p p y

Lack of proper security

Complexity

Requires new overall  infrastructure

Cost of direct transaction

Significant distance from  reaching mass commercial  market k

AcCells’ Core Product AcCells Core Product

Mobile IDentification Device

Authentication & Authorization Server (off‐the‐shelf infrastructure)

AcCells’ Mobile Payments 2.0  AcCells’ Mobile Payments 2 0 Delivers the Solution AcCells P f Performance

F ti Functions

Simple

Identification

Fast

Authentication

Secure

Authorization

Accurate

Trigger Application

Low cost

R4P2

The Potential Mobile Payments Market  y ($B)

600  500 

500  390 

400  294 294 

300  182 

200  100 

85  39 

‐ 2008

2009

2010

2011

2012

2013

Source: Juniper Research, Feb 2009

Meet AcCells Established in 2008… CEO, Eduardo Shoval: serial entrepreneur for 20 years;  founded and headed 6 high tech companies with total business founded and headed 6 high tech companies with total business  creation of hundreds of millions of dollars Optibase

Vcon

Accord

LaserComm

BigBand

Sirica

CTO, Dror Fixler, PhD: an expert in cellular networks,  monitoring and intrusive systems; consultant for various  telecom manufacturers and operators EcTel

MoniTel

Bar‐Ilan U.

President, Eric Georgatos, with 15 years experience as  corporate lawyer followed by a series of executive leadership corporate lawyer, followed by a series of executive leadership  roles in successful high‐tech startups DLA Piper

CIENA

LaserComm

Sirica

Key innovator: Avish Weiner, serial inventor with over  i ih i i li ih 100 patents; over 9 years in the mobile payment field

Thank you

AcCells Confidential and Proprietary

www.accells.com

e-Debit e-Debit…

P2P Banking Connecting Gen Y

2009

Slide 68

© 2007-2009 SeerGate Ltd. All Rights Reserved. Proprietary and Confidential. Do no copy or distribute without written permission.

The World is Changing… Financial Services REvolution "Bankers must apply lessons from Apple …revolutionizing service and delivery through integrated, personal technology” Javelin, June 2009

By 2013, non-bank payment institutions will supplant banks for online social networks. Gartner 2009 Customer control of the payment tool will be the saving grace for banks. Javelin 2009 Banks must reach out to Gen Y consumers. American Banker, 2009 U.S. noncash P2P: checks amounting $1 trillion. TowerGroup,p, 2009 g>$ Slide 69

© 2007-2009 SeerGate Ltd. All Rights Reserved. Proprietary and Confidential. Do no copy or distribute without written permission.

The Problem in Brief Banks are Losing g Customer Interaction and Brand Loyalty to players such as y Bill Me Later and Amazon PayPal, Payments. Gap between Bank Services and New Generations

Slide 70

© 2007-2009 SeerGate Ltd. All Rights Reserved. Proprietary and Confidential. Do no copy or distribute without written permission.

The Solution The Secured Lock™ e-Debit System enables P2P Bank Payments… over Any Network Tokenized e-Payment Solution. “Pull” Payment: e-Invoice Presentment, P2P Payments and e e-Commerce Commerce based on the same principles. principles Real Identities: Payor & Payee are verified by their respective banks. Real-Time “On-us” Authorization and Settlement. Authorization only on Good Funds.

The Secured Lock™ Lock e-Debit System ensures that Current and Future Payment Services remain Bank products. Slide 71

© 2007-2009 SeerGate Ltd. All Rights Reserved. Proprietary and Confidential. Do no copy or distribute without written permission.

Past & Current, time to Market Facebook 2 years

Credit Cards d 60 years 1920

1940

Television 90 years

1960

1980

Internet 20 years

2000

Susan Boyle y 4 weeks

The right Th i ht solution l ti addressing dd i a reall need d ffor a specific audience will spread in no time

Slide 72

© 2007-2009 SeerGate Ltd. All Rights Reserved. Proprietary and Confidential. Do no copy or distribute without written permission.

Contact Information

Eldad Aharoni CEO SeerGate Inc. Inc

SeerGate Ltd Ltd.

400 Galleria Pkwy, Suite 1500 Atlanta, GA 30339, USA Phone: (678) 385.6840 F (678) 385.6501 Fax: 385 6501

11 Hayetzira Street Ra’anana, 43663 Israel Phone: +972 (9) 742.3595 F +972 (9) 742.3603 Fax: 742 3603

Please visit www.seergate.com for more information

Slide 73

© 2007-2009 SeerGate Ltd. All Rights Reserved. Proprietary and Confidential. Do no copy or distribute without written permission.

© Trivnet Proprietary

Powering Global Remittance & Commerce Networks

Making Money Mobile Amit Mattatia President & CEO Trivnet This document may be used in its complete form only and is solely for the use of Trivnet employees and authorized Trivnet channels or customers. The material herein is proprietary to Trivnet Ltd., any unauthorized reproduction of any part thereof is strictly prohibited. The contents of this document are believed to be accurate at the time of distribution. Trivnet reserves the right to alter this information at any time without notice. The primary distribution media of this document is soft copy. It can be printed on a black and white laser printer using A4 size sheets.

WHAT DO YOU CARRY WITH YOU WHEN YOU GO OUT?

© Trivnet Proprietary Confidential

Imagine a World Where: ● Each consumer has an electronic

wallet accessible from the mobile phone, the Web etc.

● People can perform payments,

purchase goods and transfer balance to others and with a click of a button

● The wallet can hold virtual cash,

prepaid cards and loyalty cards, and can be linked to bank accounts, telecom account etc.

© Trivnet Proprietary Confidential

WHAT DO 85% OF THE PEOPLE CARRY WITH THEM WHEN THEY GO OUT?

© Trivnet Proprietary Confidential

85% of population unbanked – like the 10th largest GDP Mobile phone penetration: 40% + and still growing fast

Mobile wallets 2012: 25% of 1.4 billion mobile phone users

M-commerce

$300 million in commerce transactions in 2012

M-payments

$500 million in person to person transfers - potential of being mobile?

M-banking 818 million mobile banking users at 2011

© Trivnet Proprietary Confidential

The Mobile Remittance Advantage Mobile remittance is easier, faster, cheaper and safer than traditional remittance

Traditional Remittance

Mobile Remittance

 Access via branch to cash in /out:

 Access anywhere anytime via

must queue, must cash out.

phone, no need to cash out.

 High remitted value, low

 Any remitted value, high

frequency.

frequency.

 High fees.

 Lower fees.

 Sender must notify recipient.

 Phone notification upon transfer.

 Single recipient.

 Multiple recipients.

 Sender has no control on use of

 Sender can remotely pay bills and

funds at the receiving end.

top up recipient phones.

Mobile remittance further expands the remittance market by making mobile remittance an attractive option to those who have never considered traditional remittance

© Trivnet Proprietary Confidential

The Mobile Money Eco System • • • •

Expand into new service areas Gain traffic, share revenues Maximize distribution network Increase loyalty

• • • •

Mobile Operators Trivnet connects the major players in the mobile ecosystem and creates true m-wallet functionality

End Users Trivnet Platform

Merchants & Retailers

• • • •

Interact anywhere, anytime No need to carry cash Instant remittance at low costs Convenience, security

Banks & FI’s

Benefit from mobile POS Enter financial services Gain customer information Increase loyalty and customer base

• • • •

© Trivnet Proprietary Confidential

FX gains, retain cash (float) Facilitate settlements Increase customer base Launch new services

Barriers ● Regulations – changing positively over time ● User adoption – greater in emerging markets (prepaid habits) ● Telecom operators taking initiative and investing ● The need to put together an eco system incl. banking partner ● It seems easy to implement, but you really need a top notch

system and multi-disciplinary expertise to get it right

© Trivnet Proprietary Confidential

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About Trivnet ● Leading provider of mobile financial service solutions to operators ● Enabling mobile payments & remittance, commerce and banking

● Robust, secure and scalable carrier grade platform ● Serving both developed and developing markets ● Deployments in Europe, Asia, Latin America, Middle East ● Feature rich ecosystems built with our technology and expertise ● Strategic telecom and banking partnerships

Trivnet will Share the Value of Leading MFS Eco Systems Around the World © Trivnet Proprietary Confidential

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THANK YOU

© Trivnet Proprietary Confidential

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Shana Tova!