apidays LIVE Hong Kong 2021 - API Ecosystem & Data Interchange August 25 & 26, 2021 Leveraging open banking phase 3 & 4 and CDI to create a smart and vibrant SME ecosystem Howard Wong, Chief FinTech Evangelist at FORMSHK

1. Leveraging open banking phase 3 & 4 and
CDI to create a smart and vibrant
business ecosystem
FORMS HK or #formshk forms-fintech.com

2. Agenda
• Introduction
• Open API phase 3 & 4 and CDI
• An era that many can win
• AMA (a.k.a. Q&A)
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2

3. About FORMS
Objectives
3
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4. About FORMS
Who we are
Listed in
SZ
(300468.SZ)
4
2,000+
Talent
s
Beijing
Xi’an
Chengdu
Shanghai
Hefei
Bangkok
Hong Kong
& Shenzhen
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5. About FORMS 5
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What We Do
with
ESTABLISHED BANKS
with
VIRTUAL BANKS
with
CENTRAL BANKS
“CHANGE THE BANK” “BUILD THE BANK”
“Shape the future of money”

6. About FORMS 6
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Wholesale CBDC

7. Agenda
• Introduction
• Banking Open API phase 3 & 4 and CDI
• An era that many can win
• AMA (a.k.a. Q&A)
7

8. Banking Open API
Phase 1
Product InformationI
Phase 2
Customer Acquisition
Phase 3 & 4
Account Information
and Transactions I
Data value to
consumers and
the industry
Business and
servicing
opportunities
Better tailored,
more variety
More personal,
more informative
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9. Commercial Data Interchange
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10. Commercial Data Interchange
The introduction of a river that enables more vibrant activities.
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11. Commercial Data Interchange
The introduction of a river that enables more vibrant activities.
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12. Agenda
• Introduction
• Banking Open API phase 3 & 4 and CDI
• An era that many can win
• AMA (a.k.a. Q&A)
12

13. About FORMS 13
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Just-in-time SME lending
• Customer: A growing small manufacturing
business in need of funding
• Technology:
• connecting credit engine of the bank to the
SME’s operational data / supply chain
information and financial data, with IoT
sensors on critical machines for maintenance
and use monitoring
• AI decisioning tools using real-time data to
assist on granting loans to the SME base on
certain predefined parameters, e.g. new
business, key equipment breakdown
Source: World Economic Forum
Source: World Economic Forum

14. About FORMS 14
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Just-in-time SME lending
Source: World Economic Forum
• Additional value to stakeholders:
• When the SME is short of materials to fulfil a
new order, the AI model can underwrite a new
loan and adjust the rate according to
continuous incoming data. The SME and the
bank saves time compare to having to handle
multiple loan applications
• Data collected, through 3rd party analytical
tools, can also be used to advise the SME to
improve operations (e.g. cost reduction,
maintenance scheduling, staff optimization).
The bank becomes a strategic advisor and the
SME becomes a client with a more robust
business
Source: World Economic Forum

15. About FORMS 15
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Just-in-time SME lending
Source: World Economic Forum
• Additional value to stakeholders:
• When the SME is short of materials to fulfil a
new order, the AI model can underwrite a new
loan and adjust the rate according to
continuous incoming data. The SME and the
bank saves time compare to having to handle
multiple loan applications
• Data collected, through 3rd party analytical
tools, can also be used to advise the SME to
improve operations (e.g. cost reduction,
maintenance scheduling, staff optimization).
The bank becomes a strategic advisor and the
SME becomes a client with a more robust
business
Source: World Economic Forum

16. About FORMS 16
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Data-linked green bonds
• Customer: A corporate that wishes to
construct a carbon-neutral manufacturing
plant due to ESG obligations
• Technology:
• IoT devices collect data from the plant’s
exhaust vent, net energy usage from non-
renewable sources, and water quality in the
plant’s tailing ponds
• AI analyse the above data together with
other metrics to benchmark performance
against established environmental index(es)

17. About FORMS
Data-linked green bonds
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• Additional value to stakeholders:
• The bank structures a bond for the
customer and helps measures the plant’s
performance against the established
index(es)
• The bank can source institutional investors
that are willing to accept a small discount
to the bond’s coupon if the plant meets the
established sustainability targets
• If the plant’s emission levels exceed the set
limits, the corporate bond automatically
begins to pay a higher coupon rate until the
issue is fixed

18. About FORMS
Data-linked green bonds
18
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• Additional value to stakeholders:
• The bank structures a bond for the
customer and helps measures the plant’s
performance against the established
index(es)
• The bank can source institutional investors
that are willing to accept a small discount
to the bond’s coupon if the plant meets the
established sustainability targets
• If the plant’s emission levels exceed the set
limits, the corporate bond automatically
begins to pay a higher coupon rate until the
issue is fixed

19. About FORMS
Data-linked green bonds
19
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• Additional value to stakeholders:
• The bank structures a bond for the
customer and helps measures the plant’s
performance against the established
index(es)
• The bank can source institutional investors
that are willing to accept a small discount
to the bond’s coupon if the plant meets the
established sustainability targets
• If the plant’s emission levels exceed the set
limits, the corporate bond automatically
begins to pay a higher coupon rate until the
issue is fixed

20. About FORMS
More business banking use cases
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The identified use cases are prioritized based on cost-
benefit analysis.
The following use cases are the most needed by SME
businesses given cost constraints.
• Business loan - enable SMEs to grow their businesses,
and the various APIs and completed market rules make
the development of business loans more mature
• Foreign exchange – help SMEs to prepare themselves
on the risks from foreign exchange
• Cashflow management - protect company growth in
today’s climate of uncertainty
• Line of credit dashboards - is different from bank loans
on the basis of how they work. It offers SMEs a
reserved fund for urgent situations and a flexible
repayment schedule

21. About FORMS
From banks’ perspective
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22. About FORMS
Some more examples
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SME banking can leverage Open APIs for new business opportunities. Banks first need to understand where best to apply them. The value chain
below can facilitate discussions of the potential in serving the SME market with open API.

23. About FORMS
The future ecosystem
23
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FIs
Corporates
SMEs
FinTechs
Aggregators
/ Enablers

24. About FORMS
The future ecosystem
24
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CDI
SMEs
FIs
Aggregators
/ Enablers
FinTechs
Corporates

25. Agenda
• Introduction
• Banking Open API phase 3 & 4 and CDI
• An era that many can win
• AMA (a.k.a. Q&A)
25

26. Cross-border
FinTech
Together we make
financial services simpler,
faster, smarter and safer
FORMS HK or #formshk