Fino Payments Bank Limited

rs,

mited Corporate Relationship Department, 2nd Floor, New Trading Wing, Rotunda Building, P.J. Towers, Dalal Street, Mumbai- 400 001 (Scrip Code: 543386) Dear Sir/Madam, Re: Investor Presentation

Rs 1,000

t Phygital network brings banking to doorstep Second income opportunity as bankers earn around Rs 1,000 to Rs 50,000 a month! use time Customers productively; Merchants earn extra, expand business,

Rs 50,000

etwork brings banking to doorstep Second income opportunity as bankers earn around Rs 1,000 to Rs 50,000 a month! use time Customers productively; Merchants earn extra, expand business, gain goodwi

33%

e Payments Total CASA: 52.1 lacs Accounts active on UPI: 17.2 lacs Digital Conversion Ratio: 33% Future aspiration of ₹1,000 Level 3 Ownership o Customers are upsold a Fino Bank current/ s

₹1,000

.1 lacs Accounts active on UPI: 17.2 lacs Digital Conversion Ratio: 33% Future aspiration of ₹1,000 Level 3 Ownership o Customers are upsold a Fino Bank current/ savings account o Commencement

2.3%

o Foundation created for deeper engagement Accounts Opened: 6.2 lacs Footfall Conversion Ratio: 2.3% CASA Transactions on Hook Products: 4 cr Q1FY23 ₹470 -500 Q1FY22 ₹365 -390 Average Re

₹470

6.2 lacs Footfall Conversion Ratio: 2.3% CASA Transactions on Hook Products: 4 cr Q1FY23 ₹470 -500 Q1FY22 ₹365 -390 Average Revenue per Customer in a year Level 2 Hooks Level 1 Netw

₹365

Conversion Ratio: 2.3% CASA Transactions on Hook Products: 4 cr Q1FY23 ₹470 -500 Q1FY22 ₹365 -390 Average Revenue per Customer in a year Level 2 Hooks Level 1 Network o Hook products

₹55

due to physical presence Domestic Money Transfer Micro-ATM 0.7 cr 1.1 cr AEPS 2.2 cr ₹55 - 65 536,722 Ecosystem of merchants pooling in customer footfall into the financial services fu

51%

to grow at a reasonable pace owing to a brand, network and processes AEPS showing strong growth; 51% YOY Revenue growth NEW PRODUCTS – IR, Referral products With network in place, new products have

16%

ere the maximum bandwidth of the management will be anchored upon Digital throughput increasing; 16% of total throughput 9 The Digital 2.0 Roadmap Transition from a phygital focused Fino 1.0 to a

INR 1,000

e first time in the history of Fino Payments Bank 285 289 Q4FY22 Q1FY23 Achieved Topline of INR 1,000 cr in FY22 Q1 performance surpasses Q4 (a seasonally stronger quarter) despite challenging operati

“Remittance is essentially a cash digitizing product wherein customers on the transferring side need not have a bank account Typically Emerging India customers at the middle of the pyramid are our target segment.”

Use Case

6

Potential

6

Potential

A bank branch in tier 3 and below city is generally very crowded and is far away. It is also open during limited banking hours on weekdays. Through Fino Bank, the idea here is to provide a bank account at the doorstep of the customer Typically Emerging India customers who wish to have a bank account with features like those of regular banks but at a fraction of the cost and at a much greater convenience Branch penetration in India is low. Due to high fixed costs of operating a branch, banks are averse to expand the network. To bring more Indians into the banking ecosystem, asset light and scalable network through merchant points is critical 35 Current and Savings Account (2/2) Understanding the process flow of an account opening 2 Fino Merchant Portal 1 Merchant Customer 3 Revenue source Subscription Fee charged to Customer 1 2 3 Customer approaches a merchant for account opening Merchant seeks various customer details and enters in the Fino portal Once verification process is complete

Potential

Companies which collect cash from their customers need to deposit the same at a bank branch for money in the account. They do the same at a nearest Fino merchant point. This saves the agent of time & travel to a branch and risk of carrying the cash NBFCs, MFIs, logistics, retail & B2B ecommerce, cab aggregators, agritech, retail, among others are the segment of companies – they collect cash either for loan EMIs or on COD orders from their retail customers Companies require a massive network for collection activities on the ground. With overall growth in business of such companies, their collection requirements will also keep growing. They prefer pan-India players which cover a large geography. CMS is also a cash digitizing product wherein merchants receive cash which they can use to disburse through MATM & AEPS Cash Management Services (2/2) Understanding the process flow of a CMS transaction 2 Merchant Account with Fino Bank 3 Customer’s bank account Revenue source Fee Income from B2B

Potential

Beyond the metro and tier 1 cities, ATM penetration is low. Customers have to travel a distance to withdraw cash. The genesis of micro- ATM is to facilitate convenient cash withdrawal in the customers’ neighbourhood at low costs to the merchant Customers in markets which don’t have a deep ATM penetration. These would be the emerging India customers at the middle of the pyramid As it becomes increasingly expensive for banks to maintain an ATM network and manage the cash logistics, micro-ATMs are poised to grow to fill up the void – plus the positive cost arbitrage for setting up a micro-ATM network also is an advantage 41 Micro ATM (2/2) Understanding the process flow of an MATM transaction 2 Merchant Account with Fino Bank 3 4 Customer’s bank account 1 Merchant Customer 5 Revenue source Interchange Fees 1 2 3 4 5 Customer shares his debit card to the merchant Merchant inserts the card in his/ her micro-ATM handheld device – device is connected to network and also to the merchant portal

Potential

Customers often don’t carry their ATM cards with them. Many at the bottom of the pyramid may not even have an ATM card. Most ATM kiosks will not be suitable for such customers – they have to visit a bank branch As opposed to micro-ATMs, these are customers who don’t have debit cards or don’t carry one frequently with them. They find it more convenient withdrawing with a fingerprint authentication New-to-financial services customers will initially use basic services like AEPS before they migrate to other transaction mediums on alternate and digital channels as they gradually get familiar and comfortable with the system 43 AEPS (2/2) Understanding the process flow of an AEPS transaction 2 Merchant Account with Fino Bank 3 4 Customer’s bank account 1 Merchant Customer 5 Revenue source Interchange Fees 1 2 3 4 5 Customer gives his fingerprint on bio-authentication device of the merchant The device is connected to network and also to the merchant portal of Fino The transaction gets processe

Potential

Customers having cash with them can visit a merchant point to transfer the same to a bank account on the beneficiary side. Remittance is essentially a cash digitizing product wherein customers on the transferring side need not have a bank account Typically Emerging India customers at the middle of the pyramid are our target segment. Such customers earn in the range of ₹10,000- 40,000 per month. Other customers who deal in cash are also our target customers for this product There has to be a player to digitize the cash till the last mile for commencement of a customer’s digital journey – with a growing cash in circulation, the opportunity for this business is expected to multiply – remittance also leads to withdrawal of the cash, partly or full, on the other side through a micro-ATM or AEPS 46 Remittance (2/2) Understanding the process flow of a remittance transaction 2 Merchant Account with Fino Bank Credit in beneficiary bank account 3 1 Merchant Customer Revenue source Customer 1 2 3

Potential

Fintech players offering various payment products require a bank at the back-end to process a transaction. Being a bank, Fino can offer its technology platform to such fintechs Fintech partners who do not have a banking license of RBI India is a huge country with a massive addressable market which cannot be catered by any single player. Multiple fintechs will have the last mile reach. However, not everyone can be given access to the secure banking platforms that are periodically audited by RBI. Such fintechs with the last mile reach will need a banking rail to carry out a transaction and for the banks, it is a perfect way to leverage their technology investments at no marginal costs Open Banking Platform Remittance Revenue Source Customer MATM & AEPS Interchange Fees 49 Open Banking Platform (2/2) Understanding the process flow of a remittance transaction Customer of Open Banking partner 1 1 2 3 2 3 Merchant of Open Banking partner Open Banking partner Fino’s Technology Platform Custom