Jessica Nemeth is a product manager for AREA42's BNPL service who has over 15 years of experience managing credit and fraud risk for international companies. In her presentation, she outlines five steps for international fintech expansion: 1) Identify business model risks, 2) Compare risks in current vs. future markets, 3) Understand cultural tolerance for friction from risk prevention, 4) Consider how to generate revenue from risk management expenses, and 5) Assess all risks and turn risk management into a competitive advantage. The presentation provides strategies for international companies to successfully expand into new markets by properly managing risks.

1. Risk Management
Strategy Development for
International Expansion
12 MAY, 2022
0
Fintech Belgium: ‘How to grow your FinTech internationally’

2. Short overview of the
investment required
for risk management
in a new market
5/18/2022 1
Meet the speaker:
Jessica Nemeth
01
Identify the risks associated with the
business model
02
Compare these risks in the current vs.
future market
03
Assess the tolerance for friction 04
Risk management as a revenue
generator
05

3. Meet the
speaker
Jessica Nemeth is the product manager for
TERMS.tech, AREA42's innovative BNPL
service for B2B marketplaces. With over 15
years experience managing credit and
fraud risk for international companies in
the USA such as PayPal and HSBC, she has
participated first hand in the evolution of
fintech risk
Fintech Belgium: ‘How to grow your FinTech internationally’ 2
management technologies and strategies (e.g.
for Google, Facebook...). She knows how
critical the combination of business
development and risk management are for
success in fintech. Jessica relocated to France a
few years back, giving her a unique
perspective on Risk Management on the US as
EU.
O1

4. Fintech Belgium: ‘How to grow your FinTech internationally’ 3

5. Identify the risks
associated with the
business model
02
4
Fintech Belgium: ‘How to grow your FinTech internationally’

6. What are the risks that could limit your chances of success in your
current and prospective market?
Fintech Belgium: ‘How to grow your FinTech internationally’ 5
as well as fraud risks
Stolen Card
Credit Risk Political and Economic Risks Regulatory Risk
AccountTakeover Bustout Stolen Identity
Friendly Fraud
Reputation Risk

7. Compare these risks in
the current vs. future
market
03
6
Fintech Belgium: ‘How to grow your FinTech internationally’

8. How do these risks differ between your current market and your
prospective market?
European Central Bank. (2021). Seventh report on card fraud.
https://www.ecb.europa.eu/pub/cardfraud/html/ecb.cardfraudreport202110~cac4c418e8.en.html
7

9. Understand how the
legal and cultural
environment of the
market impacts
tolerance for friction
04
8
Fintech Belgium: ‘How to grow your FinTech internationally’

10. AssessingTolerance for Friction
Fintech Belgium: ‘How to grow your FinTech internationally’ 9
Perceived responsibility for risk prevention
+
Actual (legal) responsibility for risk prevention
The greater the customer’s responsibility for risk (perceived or actual),
the higher the tolerance for risk prevention related friction in the customer experience
Customer FinTech
Customer Responsibility = High FinTech Responsibility = High
Shared Responsibility

11. Creatively reflect on
how to turn expenses
into revenue generators
05
10
Fintech Belgium: ‘How to grow your FinTech internationally’

12. Risk Management as a Revenue Generator
Fintech Belgium: ‘How to grow your FinTech internationally’ 11
Risk as a Service
Providing different coverage levels and costs
costs
Charging for protection with a larger scope
than expected by the customer
Risk management as a sales tool
Integrating your protections into your
marketing messages
Establishing yourself as market leader in risk
management
When market entry requires significant investment in risk management,
identify ways to turn this cost center into a revenue generator

13. Risk Management + Strategic Expansion
Fintech Belgium: ‘How to grow your FinTech internationally’ 12
Step 1
Step 2
Step 3
Step 4
Assess all the possible risks your business can encounter
How do these risks differ in your prospective market?
What experience do customers expect in this market?
How can you turn your risk management investment into a
strong asset and competitive edge?

14. Thank you
Surf to www.AREA42.tech to discover
all aboutTradeTech!
Fintech Belgium: ‘How to grow your FinTech internationally’ 13