Open Banking: It's About the Customer

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Open Banking: It’s About the Customer Campbell Shaw Head of UK Banking Partnerships, Cardlytics In 2008, Scott Grimes and Lynne Laube were bankers who understood the power of purchase data. With deep insight into the complex regulations banks face, they designed a bank- and privacy-friendly solution that would link two major industries: banking and marketing. And Cardlytics was born. © 2018 Cardlytics – Proprietary and Confidential Today, Cardlytics operates with a clear goal in mind: Make marketing more relevant and measurable with purchase intelligence © 2018 Cardlytics – Proprietary and Confidential We built a transformative purchase intelligence platform © 2018 Cardlytics – Proprietary and Confidential Our purchase intelligence makes marketing more relevant and measurable Historical purchase Marketers reach likely buyers data accurately predicts and close the loop with future purchases online and in-store sales © 2018 Cardlytics – Proprietary and Confidential We provide value to 2,000+ banks and their customers… 17% 9% $230M DECREASED INCREMENTAL CASH-BACK PAID ATTRITION CARD SPEND TO CUSTOMERS © 2018 Cardlytics – Proprietary and Confidential …and compelling returns to marketers BETTER CLICK RATES 30x +9.0x 7.1% RETURN ON AD SPEND 0.8% Industry Average Cardlytics © 2018 Cardlytics – Proprietary and Confidential The Open Banking Landscape © 2018 Cardlytics – Proprietary and Confidential What is Open Banking? Regulatory What is it really? Open banking requires banks to It is NOT about the technology share customer data with third- OR about Banking. party companies or apps securely and in real time, through the use of open APIs. It is about experiences driven by financial data. © 2018 Cardlytics – Proprietary and Confidential It all seems very…complex Open Banking vs PSD2 vs CMA9 Open Banking Movement Open Banking Scope PSD2 Scope • CMA 9 – mandated • All payment service providers regulated by FCA/ • For Personal & Business accounts only EC authorities • Read/write access to accounts (Jan 2017) • Non-prescriptive dedicated interface Mortgages • Open Data (March 2017) making available (no API specs) Investments information on ATMs, Branches, Personal Current • Legal provisions • Multi-currency Pensions Accounts, Business Current Accounts (for SMEs) • Technical access • Strong Customer Authentication (EBA - SCA) & SME Unsecured Lending and Commercial Credit • All payment accounts Loans Cards • Liability Personal credit • Payment initiation cards • Standards • Insurance Open Banking Extended Scope (‘Proposed Amendments’) 2018/9 • CMA 9 • Credit cards • eWallets • Prepaid cards • Biometric authentication CMA9 = Allied Irish Bank, Bank of Ireland, Barclays, Danske, HSBC, Lloyds Banking Group, Nationwide, RBS Group, Santander © 2018 Cardlytics – Proprietary and Confidential Open Banking propositions are emerging Big banks Challenger banks Big Tech FinTechs Save-as-you-spend Spend analysis Spend analysis Loans Investments © 2018 Cardlytics – Proprietary and Confidential It remains all about the customer Open Banking means loyalty is up for grabs What’s in it for me? © 2018 Cardlytics – Proprietary and Confidential Customers want the experience, not the friction PERSONALISED MEMORABLE ONGOING SECURITY SERVICE EXPERIENCES VALUE © 2018 Cardlytics – Proprietary and Confidential How everyone can win with Open Banking Banks Customers Retailers Maintain relevance Increase the value of their Wider audiences transactions Deepen customer Opportunity to drive relationships via Insight Greater choice conversations Generate revenue and Confidence of purchase power Deeper knowledge & up/cross sell potential analytics for planning Loyalty will be traded by customers using data as the currency. © 2018 Cardlytics – Proprietary and Confidential .

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