Special Announcements Financial Technology Capital Markets Update Salient Capital Markets Transactions Major Indices & Exchange Rates Mergers and Acquisitions Close as of % Change 3/11/2016 1 Month 12 Month Deutsche Börse Acquires London Stock Exchange for $15.8B • Merger expected to produce $330M to $375M of cost synergies and larger capital Dow Jones Industrial Average 17,213.31 9.9% (2.4%) savings of $5B to $7B for banks and investors from "compressing" overlapping NYSE Composite Index 10,104.19 11.9% (5.4%) Pacific Crest Securities utilizes Aptexx and KeyBank partner on trades on the two exchanges NASDAQ Composite Index 4,748.46 11.3% (2.1%) expertise in SaaS and fintech to mobile-first solution for property Tibet Tourism Acquires Beijing-based Lakala Payment for $1.7B AMEX Composite Index 2,246.46 12.1% (5.5%) advise Social Money on sale to Q2 management and rent payments. • Acquisition of online payment and POS provider for the convenience consumer S&P 500 Index 2,022.19 10.6% (0.9%) financial service industry in China enables backdoor listing on Shanghai Exchange Russell 2000 Index 1,087.56 14.0% (10.5%) Insight Venture Partners Acquires Diligent Corporation for $505M Euro / USD 0.9440 7.2% (0.0%) • Develops an online software application allowing board members, management, and admin staff to produce, deliver, review, and vote on board materials Japanese Yen / USD 122.8450 9.6% 1.2% Wipro Acquires HealthPlan for $460M British Pound / USD 0.6645 (4.0%) (0.6%) • Leading independent technology and Business Process as a Service (BPaaS) Bitcoin / USD 416.0000 10.1% 65.1% provider in the US health insurance market Web.com Acquires Yodle for $342M Interest Rates • Leading provider of local, vertically-focused digital marketing solutions enabling As of Bps Change CRM for small businesses through cloud-based marketing platforms 3/11/2016 1 Month 12 Month Nasdaq Acquires Marketwired for $108M • Acquisition expected to significantly enhance Nasdaq's corporate services and U.S. Prime Rate 3.500% 0.00 25.00 product suite with Marketwired's media analytics and targeting capabilities U.S. Treasury - 10 years 1.977% 33.60 (13.50) Wirecard Acquires MoIP Pagamentos for $41M ICE LIBOR - USD - 3 Month 0.634% 1.67 36.40 • Wirecard takes over a team of more than 150 employees at the site in Sao Paulo Federal Funds Overnight Rate 0.370% 1.00 29.00 and continues its global expansion with this market entry in Brazil Amazon Acquires EmVantage Payments Markets Indexed Prices • Acquisition of leading payments platform as a service for merchants (fully integrated 25% Russell 2000 online payment platform) to support focus on convenient and safe UX 20% S&P 500 Index BluePay (TA Associates) Acquires Billhighway Dow Jones Industrial 15% • Billhighway's proprietary software, integrated with BluePay’s advanced payment NASDAQ Composite technology, will deliver streamlined services for associations and not-for-profits 10% Large Cap FT Index 5% Private Placements 3.9% 0% Indexed Price (%) (0.9%) Legend overlapping with Xignite – $20.5M Series C ($55M pre-money) led by QUICK (financial market data) (5%) (2.1%) (2.4%) RealtyShares – $20M Series B led by Union Square Ventures (real estate marketplace) IndexedPrice (%) (10%) chart lines – please (10.5%) UniRush – $20M round of funding led by Main Street Capital (prepaid Visa debit cards) (15%) adjust Nvoicepay – $10M PP (electronic B2B payment and invoicing solutions) (20%) Trusona – $8M Series A led by Kleiner Perkins (hardware-integrated authentication) (25%) Payward – Undisclosed Series B led by SBI Investment (Bitcoin exchange) 11-Mar-15 11-Jun-15 11-Sep-15 11-Dec-15 11-Mar-16 Source: Capital IQ. *Historical data has been adjusted from previous versions to account for a change in the data source to accurately reflect the comparison of current and historical periods Note: Large Cap FT Index considers all public companies covered in this newsletter that have a market capitalization of over $300M as of the publication date Disclosure: KeyBanc Capital Markets is a trade name under which corporate and investment banking products and services of KeyCorp and its subsidiaries, KeyBanc Capital Markets Inc., member NYSE/FINRA/SIPC ("KBCMI"), and KeyBank National Association ("KeyBank N.A."), are marketed. Pacific Crest Securities is a division of KBCMI. Securities products and services are offered by KeyBanc Capital Markets Inc. and its licensed securities representatives, who may also be employees of KeyBank N.A. Banking products and services are offered by KeyBank N.A. This report was not issued by our research department. The information contained in this report has been obtained from sources deemed to be reliable but is not represented to be complete, and it should not be relied upon as such. This report does not purport to be a complete analysis of any security, issuer, or industry and is not an offer or a solicitation of an offer to buy or sell any securities. This report is prepared for general information purposes only and does not consider the specific investment objectives, financial situation, or particular needs of any individual person or entity. 1 Financial Technology Headlines 02/25 Fannie Mae is planning to add a new data element to its automated underwriting process soon that is designed to give lenders a clearer picture of how consumers pay their bills over time. So-called trended data provides a 24-month snapshot of an applicant's credit card payments. It can show if borrowers are "revolvers" who make at least the minimum payment each month and carry a balance, or "transactors" who pay their credit card bill in full each month. "Prior to trended data, there was no way to distinguish between a transactor and a revolver," according to John Ulzheimer, a credit expert based in Atlanta who has written several books on consumer issues. "It is very valuable and powerful information." For example, transactors who pay their credit card bill in full each month are considered three to five times less risky than revolvers who are current but do not pay in full. Ulzheimer said he expects transactors to get better pricing on their mortgages. Trended data can also show if a balance is growing and whether monthly payments are increasing or decreasing. If consumers are choosing to pay less while balances are growing, it may signal an applicant is becoming more risky and could become delinquent before their credit score changes. "It provides insight into each borrower's use of credit and provides a more complete picture of their eligibility for mortgage loans as well as the risks inherent in their creditworthiness," Timothy Mayopoulos, Fannie's president and chief executive, said in a recent interview. Fannie is slated to update Desktop Underwriter in the second quarter with trended data supplied by the credit reporting bureaus TransUnion and Equifax. Lenders should be able to access trended data sometime this summer. The introduction of trended data is not expected, however, to expand Fannie's credit criteria (American Banker, 02/25/16). 02/25 In the short history of mobile wallets, the most self-destructive thing a company could do was restrict a user's payment or loyalty options. This was the downfall of Softcard, which was operated by mobile carriers that barred the rival Google Wallet from their handsets. It was the downfall of Bling Nation, which demanded that retailers use its own loyalty system. Even Apple has struggled to convince consumers to regularly use Apple Pay, the iPhone's exclusive contactless mobile wallet. So what makes Chase Pay so different? Chase Pay is tied to the issuer's 94M credit, debit and prepaid card accounts, representing half of US households. Depending on the perspective, this means Chase's wallet either starts with — or excludes — half of the market. But it also has the flexibility to work in the foreground or background of any partner's digital wallet, bringing its massive cardholder base along with it. Chase Pay is flexing its muscles only five months after it was created as part of the closed-loop ChaseNet payment network by landing a role with Starbucks, which has long been the marquee player in mobile payments with its own successful wallet app. Chase Pay also has a place in the Merchant Customer Exchange's upcoming CurrentC mobile wallet, which is expected to be supported by the venture's mega-merchant backers. Chase also wants its Quick Pay person-to-person technology to be part of the MCX wallet over time (American Banker, 02/25/16). 02/24 Moven, one of the most talked-about startups of the fintech boom, is looking to spread financial education to the self- employed. The digital-only "neobank" announced a partnership with the Freelancers Union, a group that represents 300,000 freelancers across the United States. Freelancers often struggle to access mainstream banking services because they lack a specific employer, make inconsistent incomes and may not have a permanent address. Those are conventional indicators of risk for traditional institutions, Moven said in a press release Wednesday. Through the partnership, Moven will host free monthly events intended to provide support, education and tools to freelancers. "Banks look at freelancers as second-class citizens, when in fact they are a highly educated, upwardly mobile, valuable group of individuals," said Alex Sion, a Moven co-founder and its president. Moven has struck several partnerships recently. In January it announced an alliance with the marketplace lender CommonBond and the credit card consolidator Payoff to provide financial incentives to customers for using multiple fintech services. The strategic move parallels President Obama's new budget proposal including about $30M to support the connection between youth employment programs, financial literacy and the responsible use of financial products, according to Treasury officials (American Banker, 02/24/16).