Yabx Technologies BV

Maanplein 7, 2516
CK Den Haag, Netherlands
www.yabx.co

Empowering institutions to compete in

the BNPL race

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© Copyright YABX 2022 | Confidential
 Introduction: About YABX

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© Copyright YABX 2022 | Confidential
 • 20+ Clients

• Clients in 13 Countries

• 50 Million+ customers scored

• 12000 alternate data features

• Global team for 365/24/7 Support

• Platform servicing 300 K loans a month

• Integrated Connect (Customer Lifecycle Management) & Decisions (Rule Engine)

• Supports Savings, Unsecured Cash Loans, Checkout, Device Loans, Merchant Cash Advances

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© Copyright YABX 2022 | Confidential
 ONLY FINTECH IN THE FINALIST FOR THE

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© Copyright YABX 2022 | Confidential
 Yab
UAE
Nepal
Across 13+ countries

R&D Centers
Bangladesh
Malawi Rwanda Tanzania Côte d'Ivoire Uganda Somalia Zambia
Customers
Colombia
Sales Offices
Mexico Indonesia

Americas Ghana Kenya Ethiopia Madagascar BeninEMEA APAC

Yabx EXISTING Togo

Yabx PIPELINE

YABX CUSTOMER NETWORKS YABX BANKING PARTNERS

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© Copyright YABX 2022 | Confidential
 Concept note : Distributed loan
origination

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© Copyright YABX 2022 | Confidential
 Gaps in market in digital
High project overhead
costs
• Too many individual solutions to
implement a digi lending stack
such as LOS, LMS, Scoring system,
Problem
Policy Engine, Collections,
Reporting, API manager, Fund
manager, Campaign manager,
Device manager
• High project management cost
Result • High payout to consulting
agencies
• High procurement cost
• High cost of alignment
of individual functions
Recommendation Financial institutions need to consider PaaS based solutions in a collaborative model that give maximum
coverage in scope in end to end digital lending with experience in scaling of lending portfolios with
© Copyright YABX 2022 |
Slow speed of change
• Speed of change depends on
solution design across multiple
components, high cost to test and
high cost to release in production
• Legacy tech stacks cannot
integrate well with the lending
ecosystem
• Results in features that are
not well tested
• Catching up to market trends vs.
setting trends in the market
• Lack of alignment of
functions because there is no
common platform to provide
an integrated picture
High interest rates High
default rates
• Solutions built around unsecured
lending have high costs to cover
up high operational expenses
because journeys are not well
designed
• Programs such as BNPL,
unsecured personal loans have
high default rates as lending
risk increases because of
partially complete solutions
Point to point solutions
by Fintechs
• Fintechs specialize in either credit
line based products, or microloans,
or handset loans or credit scoring
systems or digitization of traditional
loans
• Individual segments
become competitive
• Customers have more options to
default and there is lack of
single ownership of a borrower
• Portfolio quality takes a backseat
 direct impact across customer acquisition and risk management
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Gaps in market in digital

© Copyright YABX 2022 |

 Organic loan

• Linear impact of cost on scale

• Focused on high ticket size loans as
lower ticket sizes may not justify costs
• Relationship driven

Direct staff : At bank branches

• Require extensive training

• Highly relationship driven
• Require features such as commission
management, route optimisation
• Chances of fraud and mismanagement
Field agents: Remote origination
Sales / Origination channels

• High cost of maintenance

• Frequent drop offs
• Competition from non financial digital
applications such as social media
Digital applications: Self origination • Competition from focused products such as

© Copyright YABX 2022 |

 BNPL, financial lifestyle driven applications 8

Organic loan

© Copyright YABX 2022 |

 Collaborative loan origination

Embedded applications

Use case driven : Indirect

assets

Enhanced Sales / Origination channels

Use case driven : Direct assets

© Copyright YABX 2022 |

 • Case in point : underw ed underwriting rules and high
Financing riting acceptance through payment aggregator
options for and partnerships
parents of approva
school going l 9
students who • Delivery related
can avail loan information used for
for purchase of additional
laptop, special verification of applicants
tuitions, other
education
related • Payment
necessities related
• Underwriting and use cases
pre-qualification such as
done at school loans
level (more details during
explained in school checkout
loan for parents (shortfall
schematic) of balance
on a
• Handset / stored
Consumer durable value card)
financing at point • Credi
of sale through t
store partnerships card
• Origination alike
based on type prod
of asset uct
purchase, with
instant relax
© Copyright YABX 2022 |
 Concept note details: Buy now pay later

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© Copyright YABX 2022 | Confidential
 Collaborative loan origination

Store based retail commands majority market

share in Qatar.
An offline based approach has higher chances of
driving strong consumer behavior.
The competition will be from credit cards with
standard acceptance terminals.
However the real opportunity is to issue
instruments that are well targeted with right
limits of usage, has instant approval capabilities
and rewards the user for responsible credit
behavior

Among non-store based retailing, e-Commerce

has a higher chance of success compared to
others when it comes to launching credit
products.

With more digitized growth expected, this could

be an add-on strategy to retail for banks
launching products in this segment.

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 Collaborative loan origination

Super marts and hyper marts have a majority

share when it comes to retail trends of customers
in Qatar.

The key to launching a BNPL product is to

command a higher basket size of goods to be
broken into multiple split purchases, however has
significant risks if products are sold with attached
refund policies.

Apparel, footwear, Electronics and Leisure goods

command the top tier purchase segments
providing high basket size and high relative
fulfillment value by customers.

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 Collaborative loan

ORIGINATION REPAYMENT (through

MFS/Card/Account/PartnerPay)

Yabx LMS
Repayment
Reminder
Open market
CREDIT
OFFERS
MoMo or
PartnerPay

Customer Transaction Customer pays

Shown ‘credit Pays using credit Payment
orders Completed; using
option and update done
‘Goods’ in offers’ at payment Cards
confirms with OTP. in LMS
Partner. checkout mode selected (Debit/Credit)
Purchase fulfilled Loan
initiated

Bank pays Partner for Merchant settlement Customer pays bank through preferred channel
after goods delivered

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 Collaborative loan
Store value based credit

works out to 7.2% annual on

Overdue / money owing end of month 6$
1000$ debt

Establishment fee 15$

Late fees after 21 days 15$

Dishonor fee 15$

If stored value credit is used --> 20%
Interest
after a grace of 3 months
40$ if Txn value < 1000$;
Minimum repayments
Higher minimum value if Txn >1000$
Payment gateway based fees

Customer fee if balance overdue 6$

Late fees 5$
Dishonor fee 15$

0.15 per transaction + 2-4% per Approx 3.1$ if average ticket size
Merchant fee
transaction is 100

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 Collaborative loan

Streams Drivers Notes

Revenue R1 Customer sign up fees # of customers Flat
R2 Merchant fees # of merchant terminals Flat + Variable
R3 Late payment / Dishonor fees # of bad customers Flat ; Base is capped as maximum spend has a limit

R4 Interest charged to customer # of good credit customers Focus on transactors + Revolvers

Term of borrowing Delayed payments may increase risk of write-off
Exposure High for revolvers ; Low for transactors

Costs C1 Customer acquisition Referral campaigns, marketing

Attractiveness of customer
C2 Merchant acquisition Investment on customer profiling
segment, fees, marketing

C3 Rewards / Cashbacks Quality of customers Investment on risk management tools

C4 Write-offs # of bad customers Depends on efficient classification of good vs. bad

Exposure per customer Depends on efficient limit determination
C5 Cost of capital Overall portfolio quality Reduces risk premium on borrowed capital
Revolving velocity Generates better RoI with low overall exposure
C6 Technology Integrations / new modules Integration with Payment rails, merchant facing tools

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 Collaborative loan
Payment types Retail Categories Lending categories

Identify merchants (SMBs) majorly

accepting cash ; Encourage promotion to Target grocery outlets for store based Personal finance, durables - low ticket
New segments
customers about BNPL at point of POS size, higher diversification
checkout

Target purchase category similar to

Identify frequent purchase customers on Target social media channels for
cards so that issuers are more
Intermediate segments NETS / Pre-paid card network to convert customers with bundled products to
comfortable with low duration of
into postpaid / transactor type customers increase basket size during checkout
exposure

Credit Card : Visa + MasterCard : Expand e-Commerce store partnerships targeting

Promote higher cart size for select e-
Converted segments to current POS terminals accepting + new top 3 by MAU and average ticket size +
Commerce categories
merchants frequency

New segments : Transacting using cash as a primary instruments, may or may not own a debit card
Intermediate segments : Transaction on e-Commerce websites using debit cards or pre-paid instruments
Converted segments : Already owning and transacting using a credit card

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 Collaborative loan
Consumer facing strategy Merchant facing strategy Impact

Convert cash + Prepaid card based customers to Promote merchant discovery to BNPL user base to
Improves R1, R2 provided C1, C2 is controlled
Transactors using campaigns incentivise for signing up

Discounts for repeat customers - give an offer e.g. if repaid within a week - pay 1.8$ instead of 6$
Offer lower fixed fee for a lower weekly interval
management / dynamic discounting module to per month for outstanding.
for > 1 purchase done within a month;
merchants on a subscription basis with variable Reduces R3 but improves C4, C5 by a higher
Separate transactors from revolvers
payouts margin. Improves R4.

Deter revolvers from becoming dormant or churn

Offer step up interest rates for delayed payments Discount for upsell / improvement of basket size
customers. Improves R3, R4, reduces C4

Merchant to absorb cost to promote products /

Improve risk profiling by partnering with affiliates Improves C1, C2 with some pressure on C6
discounts

Strategy goals
1 Increase number of customer + merchants
2 Map transactors to lower tickets higher velocity purchases
3 Map revolvers to higher tickets lower velocity purchases
4 Control exposure to churn / dormant customers

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 Collaborative loan

Customer selects purchasing option and makes down

payment

Customer visits retailer store to purchase a handset.

Retailer starts loan origination journey

Customer gets a loan booked from the financer

Retailer activates handset before handing over to

customer 18
© Copyright YABX 2022 | Confidential
 Collaborative loan

Visits school and gets apprised

of various financing schemes Provides school
with a web /
mobile based
Pre-qualifies portal to
borrower
based on loan originate
guidelines from bank loans
Financing entity

Underwriting and
issuance Applies for loan based on particular
scheme

OEM : Original equipment

manufacturer
Net monthly repayment Supplies laptops /
Repayment /
Monthly school fees equipment / additional
Collections
services at school

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 Collaborative loan origination
Product related features
Installment based loan - tagged to
Product
recurring payment of school fees
construct
(either monthly or quarterly).
Can be subvention based or can be
Fee charged to the consumer based on
structure affordability / negotiation ability with
partners or OEMs
High.
Average school tenure : 8 years. Total
Customer
average loans per customer : 3 (laptop,
stickiness
special tuitions, bicycle), higher ticket -
study abroad
Low. Requires installation at school
Distribution admin level, does not need
costs complicated application support, has
high points of contact with
Factory loans, Employee loans, Cable
Extensibility
or Solar network subscriptions
© Copyright YABX 2022 |
Business related features GTM, partnerships and scaling
2000$ - 20,000$ total customer School Tie up through school principals and
Loan partnership administrative committees, provides
disbursement (based on essential
amount
purchase to study abroad programs)
Medium to low, targeting schools with low
Marketing
dropout rate
Medium to low, targeting schools with low
Riskiness
dropout rate
Wallet based, partnership with players
Repayment integrated to pay school fees on a
Low, address verification linked to child’s periodic basis
place of residence, attributes from mobile
Underwriting
money usage can be taken, fixed
complexity
obligations are predictable based on no.
dependents at home, lifestyle
Can be pushed through servicing
Loan application if required, such as promoting
upgrade solar consumption, profession based
Low, natural touch points present for guidance for self employed parents
Operations
regular customer cadence
Low, training program can be Low, training program can be
School School
standardised, portal access can be standardized, portal access can be
onboarding onboarding
named and browser based named and browser based
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 Concept to implementation: Yabx digital
lending capabilities

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© Copyright YABX 2022 | Confidential
 Yabx - scaling unsecured lending portfolios digitally
Financer
Borrower

Product
configurations :
Exposure range D2C applications
Fees and charges Microloan Handset Working capitalPOS loan USSD, PWA, Native apps
Repayment configs
Treasury configs Scoring API BNPL Retailer loan Overdraft
Back office: Embedded
Hierarchies TATs Personal LoanHome loans SME loan Group loans applications:
Assignments Retail POS Wallet
Functions
Rules and policies:
Product policies Scoring services:
Credit policies Alternate data analysis
Collection policies Policy management

Reports and
dashboards: Agent based
• Workflow driven • Application filters
Customer trail applications:
• Highly configurable • Risk profiling
Loan lifecycle Assisted onboarding
• Customer centered engine
Customer 360 • Microservices and event Commision mgmt
• Exposure engine
Unified view driven architecture • Fraud detection
One limit concept • Models multiple use cases Journeys and deviations
Customer servicing on a single installation Omnichannel Drop off mgmt
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© Copyright YABX 2022 |
 Yabx - scaling unsecured lending portfolios digitally
Borrower
Configure lending process maps

Configure sub processes

Configure happy customer D2C applications

USSD, PWA, Native apps
paths Configure deviation

Embedded
scenarios
applications:
Retail POS Wallet

Scoring services:
Establish allocation / review process Alternate data analysis
Policy management
Configure underwriting flows
Agent based
Establish channel links applications:
Assisted onboarding
Test journey maps Commision mgmt

Omnichannel Drop off

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© Copyright YABX 2022 |
 Journeys and deviations

Omnichannel Drop off

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© Copyright YABX 2022 |
 Yabx - scaling unsecured lending portfolios digitally
Borrower

D2C applications
USSD, PWA, Native apps

Embedded
applications:
Retail POS Wallet

Scoring services:
Alternate data analysis
Policy management

Agent based
applications:
Assisted onboarding
Define individual onboarding fields Define credit rule libraries
Commision mgmt

Define individual packages / groups Define custom field handlings Journeys and deviations
Omnichannel Drop off
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© Copyright YABX 2022 |
 Yabx - scaling unsecured lending portfolios
Financer

Product
configurations :
Exposure range
Fees and charges
Repayment configs
Treasury configs
Back office:
Hierarchies TATs
Assignments
Functions
Rules and policies: • Workflow driven
Product policies • Highly configurable
Credit policies • Customer centered
Collection policies • Microservices and event driven architecture
• Models multiple use cases on a single installation
Reports and
dashboards:
Customer trail
Define product types
Loan lifecycle
Customer 360 Define individual product events
Unified view
One limit concept
Define product offers and variants
Customer servicing Define accounting rules and deviations
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© Copyright YABX 2022 |
 Yabx - scaling unsecured lending portfolios
Financer

Product
configurations :
Exposure range
Fees and charges
Repayment configs
Treasury configs
Back office:
Hierarchies TATs
Assignments
Functions
Rules and policies:
Product policies • Workflow driven
Credit policies • Highly configurable
Collection policies • Customer centered
• Microservices and event driven architecture
Reports and • Models multiple use cases on a single installation
dashboards:
Customer trail
Loan lifecycle
Customer 360
Unified view
One limit concept Define operational hierarchies Define treasury and auto debit configurations
Customer servicing

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© Copyright YABX 2022 |
 Yabx - scaling unsecured lending portfolios digitally
Financer

Product
configurations :
Exposure range
Fees and charges
Repayment configs
Treasury configs
Back office:
Hierarchies TATs
Assignments
Functions
Rules and policies: Define lending KPIs and dashboards
Product policies
Credit policies
Define accounting statements
Collection policies

Reports and Link to general ledges / core systems

dashboards:
Customer trail
Loan lifecycle
• Workflow driven
Customer 360 • Highly configurable
Unified view • Customer centered
One limit concept • Microservices and event driven architecture
Customer servicing • Models multiple use cases on a single installation
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© Copyright YABX 2022 |
 Yabx - scaling unsecured lending portfolios digitally
Financer Borrower

Working
Microloan
capital

Handset POS loan

Growth in portfolio numbers Scoring API Retailer loan

BNPL Overdraft

Personal Loan SME loan

Home loansGroup loans

Reduction in NPA rates Multiple application experiences

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© Copyright YABX 2022 |
 Term 07 / 10/ 14 / 21 / 30 day options
Multiple options for the customers to choose a loan
program. Additional uptake into the loan program as we Risk Based Pricing between 9 % to 18%; Avg
Microloan propose products with differentiated term and pricing to
Pricing
13%; Rollover Allowed
better suit their repayment capability Limit Upto USD 50
Democratizing Credit across individual and

Term 15 to 30 Days revolving

A loan construct specifically catered towards short term
borrowing needs which offers payment flexibility to the Application Fee: 1 to 2%, Daily Fees - 0.5 to 1 %
Pricing
Flexi Loan people who want convenience based credit. User can pay
risk based capped to 15%, Rollover Allowed

any-time within the term and gets charged as per usage. Average Credit Ticket of 15 $ with 80%
Limit
business borrowers

utilization

Term 15 to 30 Days revolving

A loan program designed to Enhance merchant Mobile
Checkout / Money Transactions by providing credit at checkout point.
Money is disbursed into Merchant wallet while initiating loan
BNPL Loan
against consumer. Enhances conversion rate of transactions
Pricing
Application : 2%, Daily Fees - 0.5 to 1 % risk
based capped to 15%, Rollover/Penalty Fee: 9 %
Limit Average Credit Limit of 15 $ with 80% utilization

Unregistered)

Large
Ticket

Merchant
Cash Advance
(Registered & 29
© Copyright YABX 2022 | Confidential
A he unmet credit need of the loyal Mobile Money users. Term 3-6 months
Average loan ticket value can be upto 1.5x of monthly Application Fees: NA, Interest Charges: 36%
Pricing
l outflow and installment based repayment (~30% of monthly reducing, Late Fees of 1% a day
o outflow) options eases customer stress. Will positively Limit Upto 500 USD
a impact customer loyalty and Mobile money usage
n
Term 1 / 3 / 6 months
p Customized loan program targeted towards the Telco
r merchant base with collections linked to business Pricing
Application Fees: 1%, Interest : 6% monthly

o performance. Ability to gradually convert the unregistered Flexibility to collect on daily transactions

g merchant base to registered base. Limit Average Limit of 30 % of monthly active sale
r
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 Why YABX

Scalable platform Design and deploy in weeks Monitor portfolio transparently Make quick changes

Support for high velocity loans - Mean throughput

Cloudofnative
240 Kplatform
loans persupports
month Vast library of reports used by Ability to add new products/journeys using configu
ETL to support 50-500 Gb of data infusion on daily
quickbasis
implementation banks and all other stakeholders Readiness to implement new levers to impact portf
50 Mn+ customers credit scored using Big-data setup
Integration - Custom report
through API layer – pre-integrated withset can be implemented on need-basis
bureaus Regular maintenance – bug fixes,
Event driven - Microservices based architecture to support
Strong scaling of use cases360
understanding view of each around
of consumption customers – traction,
wallets, performance,
6+ deployments churn,
across frequent
behavioral
multiple upgrades
countries for wallet based lending with strong
Responsive interfaces – lenders,
agents, customers

Analyze organic and ambient data Revenue aligned business model Team to deliver excellence

tary algorithms to score new to credit/thin file customers using alternate data
Commercials linked to portfolio growth – pegged to disbursal, transactions
Strong Product
and Development
performance and Risk Management experie
AuCs better than bureau in some geographies Strong alignment with the business objectives of fintech organisations
Significant
looking
Banking/
for exponential
Product Development
growth / Data Science e
of Acquisition, default prediction, Collaboration with faculty from top US universities – Rutger
on models

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© Copyright YABX 2022 | Confidential
 Schedule a demo
Visit : www.yabx.co

Disclaimer
Copyright © 2020: YABX Technologies BV, Registered Office at The Hague, Netherlands.

All rights about this document are reserved and shall not be , in whole or in part, copied, photocopied, reproduced, translated, or reduced to any manner including but
not limited to electronic, mechanical, machine readable ,photographic, optic recording or otherwise without prior consent, in writing, of YABX Technologies BV (the
Company). The information in this document is subject to changes without notice. This describes only the product defined in the introduction of this documentation. This
document is intended for the use of prospective customers of the Company Products Solutions and or Services for the sole purpose of the transaction for which the
document is submitted. No part of it may be reproduced or transmitted in any form or manner whatsoever without the prior written permission of the company. The
Customer, who/which assumes full responsibility for using the document appropriately.
The Company welcomes customer comments as part of the process of continuous development and improvement. The Company, has made all reasonable efforts to
ensure that the information contained in the document are adequate, sufficient and free of material errors and omissions. The Company will, if necessary, explain issues,
which may not be covered by the document. However, the Company does not assume any liability of whatsoever nature , for any errors in the document except the
responsibility to provide correct information when any such error is brought to company’s knowledge. The Company will not be responsible, in any event, for errors in this
document or for any damages, incidental or consequential, including monetary losses that might arise from the use of this document or of the information contained in it.
This document and the Products, Solutions and Services it describes are intellectual property of the Company and/or of the respective owners thereof, whether such IPR is
registered, registrable, pending for registration, applied for registration or not.
The only warranties for the Company Products, Solutions and Services are set forth in the express warranty statements accompanying its products and services. Nothing
herein should be construed as constituting an additional warranty. The Company shall not be liable for technical or editorial errors or omissions contained herein.
The Company logo is a trademark of the Company. Other products, names, logos mentioned in this document , if any , may be trademarks of their respective owners.

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CopyrightYABX
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2022 || Confidential
Confidential