Introducing Uptempo We manage payments for people SEPTEMBER 2018 - - PowerPoint PPT Presentation

Introducing Uptempo

We manage payments for people

SEPTEMBER 2018

Statements included in this presentation that do not relate to present or historical conditions are “forward looking statements”. Forward-looking statements are projections in respect of future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “intend”, “expect”, “plan”, “anticipate”, “believe”, “estimate”, “predict”, “potential”, or “continue”, or the negative of these terms or other comparable

• terminology. Forward-looking information presented in such statements or disclosures may, among other things, include: the potential of our products, including its

potential for success with women; forecasts of expenditures; the sources of financing; expectations regarding our ability to raise capital; our business outlook; plans and

• bjectives of management for future operations; and anticipated financial performance. Various assumptions or factors are typically applied in drawing conclusions or

making the forecasts or projections set out in forward-looking information. Those assumptions and factors are based on information currently available to our Company, including information obtained from third-party industry analysts and other third party sources. In some instances, material assumptions and factors are presented or discussed elsewhere in this presentation in connection with the statements or disclosure containing the forward-looking information. You are cautioned that the following list of material factors and assumptions is not exhaustive. The factors and assumptions include, but are not limited to: no unforeseen changes in the legislative and

• perating framework for the business of our Company; a stable competitive environment; and no significant event occurring outside the ordinary course of business such

as a natural disaster or other calamity. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, which may cause our

• r our industry’s actual results, levels of activity or performance to be materially different from any future results, levels of activity or performance expressed or implied by

these forward-looking statements.

Forward looking statements

2

3

We’re building an

• pen banking

platform.

Banks and alternative financial institutions provide accounts and loans – money and access to money. Uptempo provides tools and advice to assist consumers with liability and savings management and acts as intermediary between the consumer and the bank – all without taking any balance sheet risk. Consumers need bank accounts, savings accounts, and loans that work for them and are easy to manage.

Through the development of proprietary technology applications, sophisticated calculators and predictive tools, coupled with superior financial products, Uptempo will redefine the consumer financial journey. Our platform refocuses the personal financial journey on reducing liabilities and saving money; it is built around the needs, preferences, and best interests of the consumer, making their capital truly work for them.

• Capitalizing on massive

inefficiencies in USA payments space and excessive borrowing by consumers.

4

We’re doing this to address and solve serious problems facing consumers and lenders.

The odds are stacked against consumers; with consumer debt at the highest level it`s ever been, increasing delinquency rates and rising interest rates, the consumer debt cycle is becoming ever-more inescapable with time. Even without debt, consumers still face a number of challenges; limiting and ambiguous products from banks, a lack of financial education and little support for financial planning hinders consumers from reaching their financial goals. On top of that, managing multiple accounts with multiple banks is another hurdle most consumers face as there is no single destination for consumers to access consolidated income statement, balance sheet and cash flow information, let alone any cognitive tools that drive improved financial trajectory.

$12.8 trillion

US consumer debt

1.48%

US delinquency rate

~50%

Payments being made by check

• Reduce consumers liabilities
• Reduce interest paid
• Increase amortization speed
• Eliminate costly cheque

processing and related errors for banks by moving all consumers to electronic RPPS submission to payees

0.50%

Uptempo delinquency rate

>20%

Uptempo check payment processing

5

We elegantly intercept and support the consumer through partnerships with auto dealership.

Consumers are on boarded through our portal in the dealer – integrated with dealer menu systems. A welcome call is made to determine the best path for the consumer.

• We pay over 340 lenders today.
• We process more than $21 MM

USD, per month in payments

• Our payment processing is

retiring over $500 MM USD in loan balances.

• Auto Loans are retired almost

15% faster.

• Dealers can upsell those

customers much earlier in the cycle.

• Even the auto lenders bank

partners can’t provide the data we have, to help them drive business

6

More than 50% of our consumers are prime. Less than 50% of our consumers are sub- prime.

Convenience Save Money and Improve Credit

Subscription Fee vs. Transaction Fee

You are probably thinking ‘wow’ what a great idea for subprime consumers but our programs is valuable to any consumer carrying an auto, mortgage

• r student loan.

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Consumers do not have access to the complete product suite we have designed, other than through Uptempo.

Delivered through consumer-oriented platforms equipped with powerful AI, our full service platform will offer consumers better products than banks can – by not

• nly delivering a better experience but changing the lives of consumers.

Liability management Budget management Borrowing Lifestyle savings

• From mortgages to

auto loans to credit card payments, see and manage them all in one platform

• Hassle-free,

automated payments

• Select and adjust

payment dates and frequency to match cash flows

• Unsolicited,

personalized advice for getting out of debt quicker and by paying less

• Faster amortizations

without changing loan terms reduce interest and fees and improve credit quality

• Constant awareness
• f how much is being

spent and on what

• Smart analysis and

planning tools for developing a personal budget based on electronically derived data.

• Proactive,

personalized spending advice to stay on track with budget

• Analysis and calculator

tools to identify how much the consumer can afford based on current position, and how much they should be spending based on their budget goals

• Attractive loan options

sourced through competitive bid process

• Decisioning advice and

recommendations

• Interest-bearing

savings accounts

• Unlimited number of

accounts each tied to a specific purchase or investment goal

• Calculator tools to

identify required savings and time for each goal

• Automated,

prioritized allocation

• f savings
• Constant awareness
• f progress

AI being introduced 2019 based on expansive data lake and patterns.

8

Our goal is to help consumers – all consumers.

Uptempo’s mission is to help improve the lives of consumers. Finances are difficult to manage and debt is hard to escape. Uptempo’s solutions aim to help consumers achieve their personal financial goals and reach a prosperity cycle. Our solutions are multi-dimensional and deliver significant value to all types of consumers.

Consumers are constantly battling to improve their financial position and take a hit every time an unexpected event happens. Underbanked Blue Collar White Collar Need Uptempo just to be able to keep up with debt payments. Need Uptempo for liability and savings management. Need Uptempo for the convenience. Uptempo smooths this by providing financial advice, quickly reducing liabilities, and helping consumers create and stay on budget and savings plans.

9

We’ve already started and understand the

• pportunity.

Our first product is in the market and very successful: liability management. Operating in only three states, we already have over 44,000 customers and have barely scratched the surface of potential for this product.

Auto dealers Digital Lenders Alternative lenders Captive lenders Auto loans Student loans Mortgages Credit Cards Liability management

• f:

Customers acquired through:

✓ ✓

By simply targeting auto loan payments through partnering with dealerships, we are increasing customers by 5% month and expect to add over 100,000 consumers in 2019. There are over 22,000 dealerships we can partner with to bring our solutions to their consumers. Dealers typically provide 20-30 new consumers per month on finance deals – when we launch lease products in Q4 this will increase significantly.

Currently in production Future opportunities

• 5% month over month

customer growth rate, with no digital acquisitions strategy implemented

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Our relationship with consumers builds progressively

• ver time.

Manage 1 loan

• Get consumers using the

platform

• Deliver amazing experience
• Build trust

Fee per loan per month: ~$4.00 / month Manage multiple loans

• Get consumers further

engaged with service

• Deliver amazing experience

and convenience

• Build trust

Fee per loan per month: $8.00 + / month Subscribe to full platform

• Deliver unparalleled

experience and value

• Unlimited liability

management

• Free savings accounts
• Identity Protection and

Restoration Subscription based: ~$14.99 / month

A FINTECH’s biggest challenge is customer acquisition. Our liability product proves that we know how to get our foot in the door with our increasing partner relationships and profitable consumer acquisition path. Once consumers are on our platform, the platform upsells itself – especially since it’s designed to be self-funding when consumers follow our financial advice. As they recognize the benefits and we market to them, customers become further entrenched with Uptempo and the relationship transforms.

11

We’re developing a sophisticated consumer app.

Our advanced app will give consumers complete financial control at their fingertips and facilitate usage of our programs. We’re developing it in in collaboration with actual users – and in response to significant demand.

Customize your payoff trajectory and savings and apply that budget schema. Witness how quickly you will generate positive equity in your vehicle or

• ther assets and be

aware of the best time to ‘sell’ the asset. Dynamically change your loan payoff schedule without changing complex or immutable loan documentation.

12

Penetrating 22,000+ auto dealers with our dealer growth path.

• Affiliates and lender

channels are in addition to this dealer expansion strategy

A B C

A: We have doubled consumer growth from 1,000 a month to 2,000 in the first 9 months of this year. NY, Penn, NJ

Over 10,000 consumers per month available to us through dealers

B: We have secured Territory Management and are developing this Territory for Q4 launch

Over 10,000 consumers per month available to us through dealers

C: We have secured Territory Management and are developing this Territory for Q4 launch

Over 10,000 consumers per month available to us through dealers

National expansion is very prescriptive and

• predictable. On average we:
• Generate 30 deals per dealer per month (1 per day)
• Add 6-10 dealers per 3 sales people per month

(Territory is 1 manager 3 sales)

• Expect to add 100,000 consumers in 2019 through

dealers only

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Our platform also throws a life preserver to lenders and banks. Years of data show

• ur delinquencies are significantly less than market BUT WE TAKE NO BALANCE

SHEET RISK. There are three principal reasons banks and lenders will offer our program along side their loans.

Delinquency curves are spiking in Auto and student loan. Rate increases will cause more problems for lenders. Losses will ensue Processing Delinqency Fee’s 50% of the lenders take payments through cheque. On Uptempo 100% of payments move to electronic payment reducing processing costs and errors There is no comparison when it comes to delinquency rates of Uptempo curated liabilities vs. the market. Reducing capital at risk preserves lender balance sheets Both Uptempo and lenders can share in the fee’s thus increasing income for all parties while helping the consumer. Lining up payments to when customers have money, and breaking the down into smaller more frequent payments has a dramatic effect on loss rates.

1.46% delinquency in Auto .50% delinquency in Auto on our platform

Lenders and banks need us.

• Over 340 lenders are being

paid by us today

14

We have proven success and are on the cusp of incredible growth.

The company is focussed near term on acquiring consumers through proven channels to drive 2018-2020 growth and backlog. Additional channels will come online in 2019 feeding the growth rate in future years. As our technology advances and the consumer experiences changes to be ‘bank like’ with active liability management, additional liabilities are expected to be managed, driving a significant increase in fee income. Existing consumer feedback towards an APP is strong and early feedback on subscription based ‘bank like’ services is positive.

15

• Consumers have never

been in a better more proactive position to establish financial stability and success.

• Investors have never seen

a profitable FINTECH at these revenue levels and with this scale.

• All lenders must take payments from any payment channel towards
• loans. Regulatory Mandate.
• Consumers are in control of the payment process and thus by taking

control of their payments we enter the consumer digital financial life

• here. Cost Effective Acquisition.
• By taking control of payments we build trust.
• Adding new products builds dependency. Lengthen duration.
• Providing a better than bank experience builds loyalty.
• Loyalty builds long term customer lifetime value.
• Increasing lifetime value builds shareholder value

Powerful changes are coming to financial services, powered by Uptempo.

Appendix

LEADERSHIP

Proven leadership team

As Chief Operating Officer, Mr. Cicolini brings years of experience in developing technology operations for start-ups, turnarounds and rapidly growing companies. Prior to joining Uptempo, Mr. Cicolini was Managing Director for JV Holdings LLC, a investment firm focused on mobile and financial technology, and was the founder of Spartan Interactive LLC, a mobile platform company. He also played an active role in the financing and operating of The Card Collaborative International (TCCI). Previously, Chris served as EVP of Operations for United Payroll Systems, LLC, a prepaid financial services and payment in company, where he spearheaded the development of a middleware platform that allowed the use of multiple banks and processors through a single platform. Earlier in his career, Mr. Cicolini was responsible for Mergers and Acquisitions in the Telecommunications and Prepaid Financial space for Draper Holdings Business Trust. Mr. Cicolini is a graduate of the University of Maryland College Park. As Chairman and Chief Executive Officer, Michael brings 30 years of banking, technology, fintech and lending experience to the company. Having raised over $1 B for recent ventures that became dominant market players within 2 years of launch, Mr. Hilmer understands the governance, discipline and relationships that come together in a rapidly scaling environment. An innovative thought leader in the financial technology space, Mr. Hilmer’s open banking vision is underpinned by the fundamental belief that new regulations create more opportunity for innovation around the customer experience. The value of data collected through the experience will be returned back to the consumer for the first time in their historical banking history, and the benefits of their transactional data history will result in lower consumer banking and borrowing costs

• ver time.

Partnering with banks to increase their deposits and fees, while taking responsibility for the consumer experience through innovative and valuable toolsets, provides for unique consumer experiences the market has never seen before. As Chief Financial Officer, Mr. Parent guides Uptempo’s financial and capitalization strategy, and leads the firm’s governance, reporting and analysis functions. Mr. Parent has extensive background as a senior executive in financial company operations and retail banking, savings and investment products and services that help customers become financially independent. He worked as a senior product manager with Scotiabank where he was responsible for project scope, budget, schedule and objectives for a number of high profile projects and marketing campaigns for retail banking products: “SCENE”, Canada’s first loyalty rewards program; the development and launch of the Tax Free Savings Account (TFSA); “Let the Savings Begin” program; the “Bank the Rest” savings program; the “Fly Free with Scotia One”; and tele-banking account open options. He also served the role of high net worth investment advisor within the bank for some of Canada’s wealthiest individuals.

• Mr. Parent holds an MBA from Queen's University. He has 6 years of

Ph.D. work in computational physics and M.Sc. in laser physics from University of Ottawa. He also has a B.Sc. in Mathematics and Physics from University of New Brunswick; and a diploma in Space Science from the International Space University.

Michael A. Hilmer

Chairman and Chief Executive Officer

Robert Parent

Chief Financial Officer

Chris Cicolini

Chief Operating Officer

17

Proven leadership team

18 As Senior Vice President of Compliance, Mr. Carden brings over 17 years of senior management experience including building compliance teams, custom back office operations, customer cash settlement

• perations, reconciliation teams and customer support teams. Shawn

manages all regulatory and compliance execution matters and is the final approver and products and consumer solutions being released. Previously, Mr. Carden served as Founder and President of TCCI (The Card Collaborative International). Throughout his career, Mr. Carden has held senior leadership roles at MasterCard International, NetSpend, Central Bank of Kansas City, Electronic Funds Source, LLC, MetLife, and Citi Home Mortgage.

• Mr. Carden is a FinCEN roundtable participant on various settlement

and reconciliation issues.

• Mr. Ewart is a corporate director who was the co-founder and the

former Chief Executive Officer and Chief Operating Officer of Fountain Asset Corporation from 2003 until October 2017. Previously, he was a market analyst with A&E Capital Funding Inc. and Bradstone Equity Partners Inc. between 1998 and 2002 and Vice President of Quest Investment Corporation between 2002 and 2003. He has experience with bridge financing, financial analysis, quantitative modeling, equities trading and mergers and acquisitions. Mr. Ewart holds an economics degree from McGill University.

• Mr. Ewart is a member of the Institute of Corporate Directors (ICD) in

Canada and a Director for the non-profit Northumberland Community Futures Development Corporation, which provides financing and strategic guidance to entrepreneurs. As EVP, Corporate Development for Uptempo, Mr. Ewart leads the transaction/deal team working with management to evaluate strategic

• pportunities and acquisitions.

As Executive Vice President of Strategy and Business Development,

• Mr. Trimarco brings 25 years of banking and fintech experience to the
• company. He was the original founder of Uptempo’s core payment

management business, providing capital and expertise to launch the enterprise in 2006. Previously, he has held positions with GE Capital and Lehman Brothers where he led the charge on financial engineering of complex structures while utilizing cutting-edge technology. He also applied his financial expertise in successful securitizations and tax arbitrage/derivative

• structures. Additionally, as one of the first few employees at IPREO,
• Mr. Trimarco identified key areas of opportunity for the company to

build out its technology foundation that is now the standard platform that most equity and debt issues in the US now run on today. Using proprietary finance operations and marketing technology platforms,

• Mr. Trimarco has further leveraged his skills in finance and technology

as founder of two of the largest US distributors of telecommunication/TV, which he successfully built out and sold.

• Mr. Trimarco is a board member of Clover Fund Solutions and holds a

BS in Economics from Cornell and an MBA from Harvard University.

Mike Trimarco

Executive Vice President, Corporate Development

Shawn Carden

Senior Vice President, Compliance & Risk

Jason Ewart

Director and Executive Vice President, Capital Markets

Proven leadership team

19 As Vice President of Products and User Experience, Ms. Ching brings years of technology expertise and her experience has spanned a wide range of industries, including fintech, publishing, media and entertainment, non-profit, email marketing, and live chat. She is a well-rounded technology and business executive, and has held positions in product management, client success, marketing, business development, and technology strategy. Prior to joining Uptempo, Ms. Ching held the positions of Vice President, Product Management for Bamboo Cricket; Vice President, Client Services and Vice President, Marketing for Digital Connexxions; Director of Marketing and Product Manager for Spectra Securities, and worked with a number of financial companies such as TD GreenLine, Royal Bank, and CIBC.

• Ms. Ching holds a B.A.Sc. degree from the University of Toronto, is a

Professional Engineer, and holds an MBA from the Lazaridis School of Business & Economics at Wilfrid Laurier University.

Helen Ching

Vice President, Products and User Experience

As Vice President of Banking and Lender Relationships, Mr. Grieco has more than 30 years in financial services experience in the areas of consulting, project management and compliance. His professional experience includes implementing retirement plans for Smith Barney and Morgan Stanley where he held his series 7 and 63, project coordinator and consultant for the TSA after 9/11, business development for Regis Payment Systems – a credit card processing company, and a functional project manager for Wells Fargo. While at Wells Fargo, Mr. Grieco was responsible for managing the OCC Compliance Audit, was the Change Management Champion for his department and was responsible for creating and implementing process improvement strategies to ensure compliance dictated by the OCC, CFPB, HUD and state and local agencies. He is an expert in breaking down complex problems into their component parts, identifying multiple paths to a resolution and executing an expedient implementation strategy.

Michael Grieco

Vice President, Banking and Lender Relationships

Proven leadership team

20 As Vice President of Technology, Mr. Ferguson brings a 20+ year career highlighted by delivering stable, scalable solutions in the telecom, financial and gaming industries. Mr. Ferguson is a veteran system architect, designer and software developer with a strong talent for identifying and implementing innovative technology solutions that align with the business objectives and corporate goals. Prior to joining Uptempo, Mr. Ferguson operated a successful consulting business developing SAAS and PAAS infrastructures for gaming, entertainment, fintech and telecom companies. Earlier in his career, Mr. Ferguson was both CTO and CIO for subsidiaries of Draper Holdings Business Trust, where we created and managed systems that acquired 100,000+ ISP

• customers. In 2004, Mr. Ferguson developed a VoIP platform managing

international voice traffic that received a valuation of $33M just four years after inception. He’s also led the development of other telecom platforms that still route voice traffic of over 1 billion minutes a month. More recently, Mr. Ferguson has built blockchain networks on NEO, Ethereum and BitCoin. Patrick Ferguson has also been both Cisco Network and Xamarin Mobile Developer certified.

• Ms. Carroll is a seasoned marketing and communications professional

with a background in helping transform companies through periods of high growth or change. Her areas of specialization include corporate branding, rebranding and communications during company acquisitions and integrations, corporate and vertical level marketing, pr and media relations and investor relations support. Ms. Carroll has held the positions of Vice President, Corporate Marketing and Communications for ECN Capital; Vice President, Corporate Marketing and Communications for Element Financial; Vice President Corporate Marketing for Newcourt Credit Group; and Managing Director for Altius Marketing.

• Ms. Carroll holds an Honours B.Sc degree in Marketing and

Communications from Canisius College University.

Lynda Carroll

Vice President, Marketing

Patrick Ferguson

Vice President, Technology

Strategically selected board of directors

Banking Executive

Planned appointment Retired Head of Global Operations Canadian Bank

Wall Street Executive

Planned appointment

Legal and Regulatory Executive

Planned appointment

Michael A. Hilmer

Chairman and Chief Executive Officer

Fintech Executive

Planned appointment

Jason Ewart

Director and Executive Vice President, Capital Markets

21

Thank you

Jason Ewart

Director and Executive Vice President, Capital Markets jewart@uptempo.net

Investor Relations Contact: