By Leo Shimada, Crowdnomic. Presented at Crowdsourcing Week Global 2015. Learn more and join us at our next event: www.crowdsourcingweek.com

1. CROWDONOMIC MEDIA
1
Securities CF Impact on Traditional Finance and
Regulatory Regimes

2. Short Intro: Perspectives from the Front Line
2
@Crowdonomic; @Leo_Shimada
www.crowdonomic.com /
crowdonomic.vc
• Crowdonomic
• Fin-Tech = CF + Investment and Technology Professionals
• Multiple Regulator Engagement to help Shape Competitive Policy
• Singapore Home Grown; Active throughout ASEAN
• Largest in SE. Asia; Longest Running in SG
• Mission: Connect Region’s Best Growth Co’s w. Global Capital

3. Highlights: Asia Trends and Trajectory
3
• CF Journey: From Novelty to Financing
• Potential: Disrupting “Fundraising” to “Financial Services”
• Asia = CF Power House; China = Scale; SE. Asia = Growth
• CF & Traditional FI Relationships: From Amusement to Courtships
• Regulations at an Turning Point; Grey Operators Clamp Downs
• Securities CF on Accelerated Trajectory; Outpace Reward/ Donation CF

4. Global (1): Wall Street Under Siege from New Type of
Competitors
4
“There are hundreds
of startups with a lot
of brains and money
working on various
alternatives to
traditional banking”
Dimon Sees Threat
From Silicon Valley
Source: The Wall Street Journal
Jamie Dimon, CEO of JP Morgan

5. Global (2): Fin-Tech Players are Unbundling
Traditional Financial Institutions
5
Source: CB Insights

6. In Asia: The Banking Snr Management – Changing
Competitive Mind-Set
6
Source: Crowdonomic Discussions
Private Internet Banks
Securities Crowdfunding
P2P / Debt Crowdfunding

7. On a Market Capitalization-basis, CF Global Leaders
Would Already be a Top 10 ASEAN Bank
7
Source: Bloomberg; Press Releases
13
10
Market Capitalization Comparison
Bn SGD; As of April 22nd, 2015
52
43
39
> Quarter of
top SG
Banks
38
29
> Third of top
IND Banks
33
20
> Half of top
MY Banks
15 13
Comparable
to top ASEAN

8. Starting to Have Real Business Impact Today
8
Source: Press Release
Loans to US companies
buying goods from
Chinese suppliers
Same service – Lowest
rate less than half of
BoC rates

9. On the Way - Asia CF Power House; China Dominates
in Scale; SE. Asia the Breakout Region in Growth
9
China
East Asia & Pacfic
S.Asia
Europe & Central Asia
Latin AM / CRBN
MENA
Africa
Low High
114
122
58 (51%)
64 (52%)
9 (8%) 10 (8%)
6 (5%) 6 (5%)
17 (15%) 17 (14%)
14 (12%) 14 (11%)
7 (6%) 7 (6%)
3 (2%) 3 (3%)
Crowdfunding annual transaction value –
Intermediate term
Billion; Singapore Dollars

10. c
CF Currently Targets the Startup / MSME Sector –
High Potential Segment for Banks
10
130 to 160 mn
MSMEs
Up to 67% feel they
are un(der) served
Banking revenue
potential ~310bn SGD
Note: NOT Adverse Selection
Source: IFC MSME Databse 2011
+20% Compound
Annual Growth Rate
c

11. 11
Cross-sell / Upsell banking services
Extend Coverage to Un(der) Banked MSME/ Startup Sector
Offer innovative financing product to M/SME clients
Differentiated offering to private and priority banking
Monetization through ancillary services
Diverse Commercial Advantages to FIs to Participate
in CF Focus Segments

12. And Opportunity to Participate in Attractive Asset
Class through Equity Participation
12
2007 2008 2009 2010 2011 2012 2013 2014
USD Cumulative Loans Issued by Lending Club (LC)
10.3 mn
USD
$1.3m/ 214
loans
$24.8m/
2,996
loans
$76.6m/
8,277
loans
$202.9m/
20,814
loans
$460.3m/
42,535
loans
$1,178.2m/
95,902
loans
$3,242.9m/
240,321
loans
$6,205.4m/
477,320
loans
Investment timing / environment
LC as a mobile app (pre-
platform strategy
implementation)
Pre-Regulatory Quiet
Period during 2008 Q2/Q3
Before LC reaching pure
inflection point
Cumulative
issued loan $
and volume
Price per Share
$0.15 @
Series A
$15 @ IPO
pricing
$23 @ 1st day
closing
Est. return @
IPO of x55

13. 13
FI Direct Participation – Too “Change Averse”;
Differentiated Business Model; Culture; Economics
Technology
Decision Making
Products
Infrastructure
Mindset
Regulations
Traditional Finance
Complex
Heavy (Deposits)
Legacy
Complex / Political
Monolithic / Physical
Risk / Long Term
S. Crowdfunding / Fintech
Simple
Fit-for-Purpose
2.0 / Core
Data / Market Driven
Virtual / Mobile / Lean
Innovative / Speed
Source: BBVA Research; Crowdonomic Discussions

14. Key players in Wallstreet, Highstreet, Mainstreet, SV
quick to embrace this CF thru Partnerships
14
Referral
Sourcing /
Distribution
Direct
Investments
Equity
Investments
into CFPs
Not Exhaustive
Co-
Investments

15. 15
Regulation will Play a Key Part - All major markets now
at various stages of implementing CF legislation
Countries in Asia debating Equity CF
regulatory frameworks New Zealand Live Apr. 2014 – Equity / Debt CF
Malaysia Target Q2/Q3 2015 – Equity CF
Japan Target mid-2015 – Equity CF
India Proposal review – PCP* ended
Australia Proposal review – CAMAC
Singapore Public Consultation Paper shared
China Public Consultation Paper shared
Hong Kong Committee set up
Thailand SEC Public Consultation Paper
released in December 2014
Source: Crowdonomic Analysis; Competitive Intelligence; Literature search
* PCP: Public Consultation Process

16. 16
Leading Markets with Multi-Year Track Records and
Credible Industry Players
2014
FCA Introduces
CF rules
2007
>8bn SGD to date
2012 2013 2014 2015 2016
JOBS Act
signed into Law
by Obama
SEC
implements Title
II (Mass mktg)
Title I, V, VI
Effective
Immediately
SEC proposals
issued for Title
III, IV
SEC potential
Implementation
for Title III, IV
2010
>130mn SGD in
Funding (2014)
20132012
>70mn SGD in
Funding (2014)
2010 FSA Authorized
> 1bn SGD to date
2009

17. 17
Competitive and Innovative Policies
Issuers
Investors
Offers
Operator Role
Advertisements
Corporation Only
AI / HNWIs Only
1 mn USD Primary Only
Neutral Marketplace
Within Website only
VC Funds
Inclusive w/Protective
Measures
Uncapped + Secondary
Investor / Fund Mgr
Via Social Media

18. 18
Regulatory Impact on Industry
• Formation of Loose Alliances between Conventional Fis and Fin-Tech
• Near in – ‘Crowd’ed Space; Multiple Announcements; Little Substance
• Beginning of the End of Loopholes / Exceptions
• Long term trajectory – New type of Financial Sector
• Regulation – ‘First Steps’ for Competitive Policy
• Medium term – Fin / Tech Deficit leads to Mass purge / Consolidation

19. 19
Thank You + Questions