September 2019 Case studies, statistics, research and recommendations are provided "ASIS" and intended for informational purposes only and should not be relied upon for operational, marketing, legal, technical, tax, financial or other advice. The actual costs, savings and benefits of any recommendations or programs may vary based upon your specific business needs and program requirements. By their nature, recommendations are not guarantees of future performance or results and are subject to risks, uncertainties and assumptions that are difficult to predict or quantify. Stage3 is not responsible for your use of the information contained herein (including errors, omissions, inaccuracy or non-timeliness of any kind) or any assumptions or conclusions you might draw from its use. Stage3 makes no warranty, express or implied, and explicitly disclaims the warranties of merchantability and fitness for a particular purpose, any warranty of non-infringement of any third party's intellectual property rights. To the extent permitted by applicable law, Stage3 shall not be liable to a client or any third party for any damages under any theory of law, including, without limitation, any special, consequential, incidental or punitive damages, nor any damages for loss of business profits, business interruption, loss of business information, or other monetary loss, even if advised of the possibility of such damages. 30% $970,000 $9 $967,576 $8 $965,000 Millions 25% Millions $7 $960,000 20% $6 $955,000 $5 15% $950,000 Deposits Total $4 10% $3 $945,000 $2 5% $940,000 $1 0% $935,000 $- Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 $30,000 $1,000,000 • Despite the lower interest rates on deposits, the Household Deposit FUM grew by 0.5% $29,000 Millions Millions $950,000 • Despite being a SME focused neo-banks, Judo Bank has had hug growth in $28,000 consumer deposits off the back of their Term Deposits $900,000 $27,000 • No reported volume from either Volt or Xinja, with them obtaining their Total Deposits Total $26,000 licences in January and September respectively $850,000 Bendigo Deposits Bendigo Deposits Market $25,000 • Assumption that Up’s balances are sitting in Bendigo’s consumer household $800,000 deposit reporting rather than Commercia FI $24,000 • Bendigo’s deposit growth has outstripped market since the launch of Up, $23,000 $750,000 growing at 8% vs. 5.4% Source: APRA Monthly ADI Statistics 30% $1,730,000 $25 $1,728,202 $1,725,000 Millions 25% Millions $20 $1,720,000 20% $15 $1,715,000 15% $1,710,000 Deposits Total $10 10% $1,705,000 $5 5% $1,700,000 0% $1,695,000 $- Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Jul-20 • Consumer Home lending (investment & occupier) Market grew 0.23% 30.00% $40,500 MOM $40,000 25.00% Millions • Judo Bank the only neo-bank with reported lending, despite them being $39,500 an SME focused brand 20.00% • $39,000 Credit Card Market has declined due to lack of innovation in the sector 15.00% o Low Rate $38,500 o Low Fee 10.00% $38,000 o Rewards $38,031 o Yawn 5.00% $37,500 0.00% $37,000 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Source: APRA Monthly ADI Statistics 25% $580,000 25.00% $770,000 $577,753 $578,000 $768,000 Millions $576,000 Millions 20% 20.00% $767,530 $574,000 $766,000 $572,000 $764,000 15% 15.00% $570,000 $762,000 $568,000 10% 10.00% $566,000 $760,000 $564,000 $758,000 5% $562,000 5.00% $756,000 $560,000 0% $558,000 0.00% $754,000 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 • More jostling for position in Commercial Deposits across the Big 4, with the $35 $400 market growing at 0.45% MOM $30 $350 Millions Millions • Commercial Lending is where we are seeing the most disruption against the $300 $25 Big 4, with Rest of Market (i.e. everyone other than the top 7) accounting $250 $20 for 23% of the market $200 $15 $150 • Unsurprisingly, Judo Bank are growing their lending book at an incredible $10 $100 rate, although slower in their deposit book $5 $50 $0 $- Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Tyro Payments Limited Judo Bank Pty Ltd Tyro Payments Limited (lending) Judo Bank Pty Ltd (lending) Source: APRA Monthly ADI Statistics ✓ ✓ ✓ ✓ ✓ • NPP ✓ ✓ • Open Banking ✓ ✓ ✓ ✓ ✓ • NPP • Proposition based on website ✓ ✓ • Likely to have P2P launch ✓ ✓ • Savings through Term Deposit • Proposition based on website ✓ ✓ ✓ • Likely to have P2P at launch • Proposition based on website ✓ ✓ ✓ ✓ • Closed loop P2P • Batched BSB/Acc payments ✓ ✓ ✓ ✓ • Salary smoothing 50 45 Up 40 Thousands 35 86400 30 25 Volt 20 15 Xinja 10 5 0 10000 20000 30000 40000 50000 60000 70000 0 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Direct Referral Search Social Paid 88% 84% 87% 76% 76% 83% 84% 77% 1 Not enough data for Archa, Judo, Douugh and Wildcard Source: Google; SEMRush Wildcard Wildcard Douugh Douugh Xinja Xinja Archa Archa 86400 86400 Judo Judo Volt Volt Up Up 0 2,000 4,000 6,000 8,000 10,000 12,000 0 10 20 30 40 50 Facebook Twitter Instagram Facebook Twitter Instagram • Up have been doing a great job in getting their brand outside of the Wildcard FinTech bubble, resulting in the largest Audience Douugh Xinja • Up’s audience is also quite diverse without being overly weighted to one Archa platform 86400 • Some brands are just not working hard enough in social, which could be Judo costly, particularly if they are intending on capturing a younger audience Volt Up 0 500 1000 1500 2000 2500 Facebook Twitter Instagram Source: Facebook, Twitter, Instagram, SEMRush Monzo Monzo Revolut Revolut Up Xinja 0 50 100 150 200 250 300 350 400 450 Thousands 0 20 40 60 80 100 120 140 160 Facebook Twitter Instagram Facebook Twitter Instagram • The highest performing Australian neo-bank in each metric against Monzo Revolut and Monzo to give some perspective • All under-weight in Instagram activity, with Monzo getting great engagement from their activity Revolut • Activity = Engagement • Despite Monzo having a smaller Audience, through being present more Xinja often their customers and potential customers engaged with them more 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 Facebook Twitter Instagram Source: Facebook, Twitter, Instagram, SEMRush Influencers Influencers Influencers Influencers Authentic Authentic Authentic Authentic Mass Followers Mass Followers Mass Followers Mass Followers N= 1556 Suspicious N= 1307 Suspicious N= 312 Suspicious N= 3682 Suspicious Influencers Influencers Influencers Influencers Authentic Authentic Authentic Authentic Mass Followers Mass Followers Mass Followers Mass Followers N= 140 Suspicious N= 755 Suspicious N= 93 Suspicious N= 271 Suspicious Source: Slix Social • • • • • • • • Source: Facebook • • • • • • Source: Facebook x5 x6 x6 x6 x6 x6 x6 x6 Source: Facebook x6 x6 • • • • x6 • Source: Facebook • • • • • • • • • • • • • • • One Ad live in the US 1) Bring up the ‘All Tools’ menu by hitting the burger menu 2) Select Page Posts 3) Select Ad Posts 4) Copy the Post ID 1 2 3 4 1) Use ‘Use Existing Post’ 2) Hit the ‘Enter Post ID’ link (the ‘Select Post’ option can be hit and miss) 3) Paste the Post ID in 4) Publish! • Xinja • Volt Bank • 86400 • ANZ bank login • Up • n/a • Volt Bank • Volt Bank • Xinja bank • Up Bank • 86 400 • Online banking • Up Bank • Volt • Fintech Australia • Xinja share price • Xinja • 86 • Banks • Up Money • Volt Bank Australia • Brighte • Xinja money • Volt • 86400 bank • Banking royal • Up App • Volt Bank ASX • 86400 • Rules • Open Bank • 86 400 bank commission • Up Card • The Volt • Raiz Investment • Xinja apple pay • 86400 • 86400 pty ltd • ANZ bank open hour • Up Bank Australia • What is Volt Bank • Xinja • Xinja app • Open Banking Australia • 86400 logo • AMP royal commission • Up Debit Card • New Bank • Revolut Australia • Neobank • Money Savings App • 86400 seconds • BOQ mobile banking • Up Bank Review • New Banks in Australia • Raiz Fees • Monzo bank Australia • Revolut Australia • Christina Seppelt • Banking royal • Bendigo Bank Login • New Bank Australia • DiviPay • Neo Bank • Smartbank online commission website • Up Digital • Digital Bank Australia • Airwallex • NAB savings interest rates • Westpac personal banking June-18 • Cryptocurrency • Litecoin • Bitcoin Australia • Crypto news • Bitcoin ATM • Bitcoin news • Earn Bitcoin • Bitcoin stock • Xinja Bank • Opening a bank account in Australia 100 points 1The estimated monthly cost to rank for the keywords in Google Ads. Not an indication of ad spend. 2 Not enough data for Archa, Judo, Douugh and Wildcard Source: Google, SEMRush By purchasing competitor keywords, you are likely taking a customer from Bottom of Funnel and hoping to intercept them and take them through the funnel…. Again. “What Banks are in Australia” “Best bank account in Australia” “How to open a bank account in Australia” “Open Up Bank account” Branded search terms are the Holy Grail of Search marketing and demonstrates high-purchase intent But don’t forget to put a lot of time and efforts into negative keywords. These help sculpt what ads are presented to the user. New Bank Competitors Brand 70% Ad Budget 25% Ad Budget 5% Ad Budget SKAG – Open New Bank Account SKAG – Best Bank Account Competitors Brand Search • +Open +New +Bank +Account • +Best +Bank +Account • “Competitor” • +Brand • “Open New Bank Account” • “Best Bank Account” • [Competitor] • “Brand” • [Open New Bank Account] • [Best Bank Account] • -brand • [Brand] • -Competitors • -Competitors • -Brand • -Brand • • -Best Bank Account Ad Sculpting -Open New Bank Account .