Brian Nolan from Finteum presents on BizDay at CordaCon 2019.

1. 1
CordaCon 2019
24 October 2019
Finteum is creating a global financial market for interbank intraday borrowing

2. Mission, Vision and Values
22
Facilitate robust intraday markets for
a lasting positive impact, making the
financial system fairer and safer.
VisionMission
Support banks toward compliant,
24-hour optimisation of available
financial resources.

3. Big vision, we are a pre-seed startup
3
Stirling Fielding
Advisor - Product
20 years in treasury,
most recently MD
head liquidity,
Deutsche Bank
James Carlyle
Advisor - Technology
25+ years in
technology including
9 at Barclays, chief
engineer at R3
Zbi Czapran
Co-founder
Technology
Brian Nolan
Co-founder
Business
Andrii Nesteruk
Angel Investor
10 years in
investment banking,
including creating
an advisory firm
3
Notes
Freelancers are progressing non-core IP (non-Corda, front end)
We are hiring our first back end engineer team member
3

4. We have made good progress in a year
4
Regulatory Engagement
Industry Organisations
Ongoing dialogue
Ongoing dialogue
Collaborators
Entrepreneur in Residence company at R3
Settlement experts leading USC
Technology partner in initial build Jan-Feb
Graduated F10 Fintech accelerator Zurich
Intraday liquidity experts
CorDapp Trial May 2019 (4 banks, £1.5trn balance sheet)
Potential customers: some promising leads now after
discussions with ±40 banks over the last 12 months:
Now negotiating commercials for pilot
with 3 banks (not the banks above)

5. Recent Attention
5
Recent press for work we’ve done (but we don’t want to be overhyped)
8 Oct 2019:
2nd place to Nivaura in UBS
Future of Finance Pitch
17 Oct 2019:
We won ISDA / ICMA / DTCC /
Barclays Derivhack for our DvP
24 Sep 2019: Sibos
First stage of Corda / USC
(Ethereum) interoperability
& many others, thank you
See finteum.com/press

6. The Problem
Bank A
Bank B
Payment patterns: banks often need to make large early outgoing payments.
Banks and organisations with surplus intraday funds can earn a return on cash held.
6
Required
liquidity buffer
= expensive
one sided
measurement
Day
Starting
Cash
Balance
Day
Ending
Cash
Balance
There is no effective interbank market
to match lenders with banks that want
to borrow for hours at a time.
Intraday liquidity costs banks billions in profits every year
x
Day
Starting
Cash
Balance
Day
Ending
Cash
Balance

7. Platform and Technology
7
Before Intraday Borrowing After Intraday Borrowing
Distributed Ledger Benefits
Value
Delivered
Bank A
Required
liquidity
buffer =
expensive
Start of Day
Cash
Balance
End of Day
Cash
Balance
Borrow
Repay
Lower
required
buffer
Start of Day
Cash
Balance
End of Day
Cash
Balance
Finteum Platform (’Alpha’ version built)

8. 8
Financial Benefit
Bank annual benefit
GBP40m
8
Methodology validated with banks
Independent validation
Problem validation: Oliver Wyman (2018):
$100-300m annual cost of intraday liquidity
($25-75m potential annual savings)
Solution: Boston Consulting Group (2019):
43% of treasurers expect new intraday liquidity
markets in <2 years
GBP2bn
Industry annual benefit

9. Business Model
9
Rationale
‘All-to-all’ platforms often
struggle. We need banks for
settlement and for market
liquidity.
We will help banks to reduce
cost, and to solve problems
for their clients, without
disintermediating or
disrupting them.
We want to have banks as our customers (only banks)
Vendor
Relationship
Client
Success
Examples
Treasury, Treasury Markets
Supporting
Synergies
Wealth
Management
Asset
Management
Investment
Bank
Operations,
Risk, Finance
Family office
earns extra
20bps on
excess cash
Pension fund
earns 10bps
on uninvested
AUM cash
Prime Brokerage
client earns 50bps
around year end in
dislocated markets
Bank owns its client relationships, Finteum can support integration to help improve market liquidity
Potential add-ons: Single Dealer
Platform
integration
IB
Handoff
Cash Man. &
Risk modules
MTF, or MTF Partner

10. Finteum Technology Stack
10
User Interface (Web based application
accessed through browser, e.g. Chrome)
Finteum Application Technology Stack
Scala Webserver
CorDapp - back end application
built on R3’s Corda (H2 DB)
Cloud Deployment
Ubuntu virtual machine
Docker containers
Node 1
Front End (React)
Other Nodes
Front End (React)
Scala Webserver
CorDapp
User Interface (UI)

11. Demo
11

12. What Next
1212
Banks
Ask us about our pilot,
we are still engaging
with banks.
We would like to run a
global 2-4 week product
trial for 20+ banks in
2020, after pilot. Let us
know if interested.
Investors
Ask us about our £1m
seed round.
For UK angel investors
with relationships and
expertise in markets,
we have SEIS and EIS
advance assurance.
Others
We are open to partnerships.
We are recruiting a back-end
engineer and we will build up
a core engineering,
operations and business
team.
Contact us if you want to build
the future of financial markets.

13. 1313
Thank you to R3!