Application of blockchain, distributed ledger, to FI account aggregation. Today, FI account aggregation is handled by a handful of aggregators, which mostly use customers’ credentials. We believe distributed ledger technology could be successfully applied to the account aggregation. The technical implementation is relatively straight forward and would require a private, permission based distributed ledger. Naturally, there is a strong network effect. Therefore, for our model to be successful, we need to create a consortium, which can be comprised of various participants, including (but not limited to) top banks. Bank Information Share Authorized Through Distributed Ledger Technologies Patent date Issued Nov 12, 2019 Patent issuer and numberus 10,474,834

1. ONE DESIGN
Blockchain
Account Aggregation
Taras Kuzin
July 2019
1

2. 1. Current Trends in Financial Services
2. Enterprise Blockchain
3. Account Aggregation Blockchain

3. Current State of
Financial Services
3

4. Average age of primary
checking account is about 16 years
Flexibility and convenience
Plaid is valued at $2B
Banking with several financial institutions is prevalent
4

5. Confidential
5
Privacy legislations are exerting great influence

6. Confidential
6
1
3
2
EU has introduced Open Banking Standards with three main objectives
Enable third-party developers to build applications &
services using open APIs
Allow financial transparency for account holders ranging
from open data to private data
Use open-source technology to achieve the above

7. Confidential
7
Linking products
across banking
ecosystem
Connecting
nonbanks &
banks
Mining customer
transactions for
new use cases
Offering account
aggregation
FinTech companies are making inroads into banking

8. Confidential
8
Existing aggregator models are risky and have limitations
Data is shared with multiple parties
Using passwords presents security risks
Handling password & resets are cumbersome
Data security is relegated to data aggregators

9. More than --M Capital One customers are screen scraped
9

10. Enterprise
Blockchain
10

11. OAuth is a major improvement but has a few disadvantages
11

12. Confidential
12
▪ OAuth is only between two parties
▪ Multi-Party communication requires more
tokens
▪ Exponential growth of tokens as parties
increase
OAuth DISTRIBUTED LEDGER
▪ Distributed Ledger model has one token
per party
▪ Simpler to manage and more scalable
▪ Offers better data sharing standards
Blockchain ecosystem is easier to manage than that using OAuth

13. Blockchains come in different shapes and forms
Private vs. Public
blockchains
Permissioned
blockchain
Consortium
blockchains
13

14. Potential option involves enterprise blockchain
Public Blockchain Enterprise Blockchain
Wallet Address Key
Coins in wallet Data
Mechanism for adding or removing coins Smart Contract
POW, POS Consensus
14

15. Account Aggregation
Blockchain Solution
15

16. Encryption can be used to
target specific FIs with
messages
Each FI owns and operates a
few nodes in the ledger
Private permissioned blockchain
does not require mining or
coins
System operates like a group
chat – updates from a single FI
broadcasted to all others
We recommend a consortium runs a distributed ledger
16

17. C1 customer requests a
sharing session between all
his/her owned accounts in C1
and BoA
C1 creates a sharing session
account on the distributed
ledger with bank, product, and
customer email data
Customer clicks on link in
email, authenticates with BoA
and verifies the sharing
session
1 3
6
Both banks start streaming
transaction information to
the sharing session account
5 4
2
BoA sees this account
and sends a verification
email to the customer
NO PERSONALY IDENTIFYABLE
INFORMATION
Customer is able to view both BoA and C1 information
from either bank’s respective applications
Sharing data can be initiated by customer from any bank

18. Restricted access and
inherently more secure
Customers are in
control of their
personal banking
information
REPUTATION
COSTS CONTROL
SECURITY
Blockchain offers several advantages
Policies are set by
regulated banks with
vested interest in best
security
Costs are realized by
disintermediation of
middlemen

19. Blockchain platform can support a variety of auxiliary services
ACCOUNT OWNERSHIP VERIFICATION
CCPA COMPLIANCE
MERCHANT (POS) BALANACE VERIFICATION
AML COMPLIANCE
SMART CONTRACTS FOR COLLATERAL/GUARANTY SERVICES
FUND TRANSFERS & BANK SETTLEMENTS
CROSS BANKS NOTIFICATION SERVICE
ACCOUNT SWITCHING*
IDENTITY VERIFICATION
* Capability to route payments/transfers, when customer switches banks.
19

20. Predicting
the Future
20

21. The adoption has been slower than I predicted in 2014
21
Source: 2015 HolyTransaction investment presentation to Plug & Play

22. ……. But we have come a long way
22
Source: 2015 HolyTransaction investment presentation to Plug & Play

23. Q & A
23