Dec 2019

Strictly Private and Confidential

FSS Corporate Presentation

Evolution of FSS Payments Landscape
 CONFIDENTIAL

Payments Landscape : 1991-96

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 CONFIDENTIAL

Payments Landscape : 1997-2007

Swadhan SBI Bilaterals

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 CONFIDENTIAL

Payments Landscape : Accelerated Disruption

2007 Onwards

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 CONFIDENTIAL

Changing Payments Landscape

Traditional Payments Emerging Payments

Switch | ATM | Cards Mobile | Social | Wearables

Technology developed for Payments embedded in

payment systems next-gen technologies

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 CONFIDENTIAL

Payments Landscape

Regulators Faster Payments/RT-RPS, UPI, ISO 20022 Interchanges

RBI | SEPA | ISO | NPCI Payments Hub - Wholesale payments VISA | MasterCard | AMEX | RuPay | CUP

Digital Payment Server – Internet/Mobile

Customers Switching – ATM / POS Merchants

Retail | Rural | Corp | Govt ATM | POS | Mobile | NFC | QR Code
Payment Processing
Tunable Cards Bill Pay - UPI

Digital Wallet NFC/HCE/Contactless

Green PIN Mobile Payments

Instant Issuance Payment Gateway

Payment Data Infrastructure
Smart Chip Financial Inclusion
Customer/Market/Product/Risk Intelligence
Prepaid POS Acquiring
Payments Data Lake
Debit ATM Acquiring
Issuer Stack Merchant & Acquirer Stack

Device Monitor Recon &

ATM/POS Managed Services Settlement Identity &
Tokenization FRM & AMI
Authentication
Loyalty BBPS
Monitoring & Reconciliation Stack Digital Security Stack

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 CONFIDENTIAL

Payments Landscape – FSS Presence

Regulators Faster Payments/RT-RPS, UPI, ISO 20022 Interchanges

RBI | SEPA | ISO | NPCI Payments Hub - FSS/MONTRAN VISA | MasterCard | AMEX | RuPay | CUP

FSS DPS – Internet/Mobile

Customers SWITCH – ATM/POS – FSS/LUSIS Merchants

Retail | Rural | Corp | Govt ATM | POS | Mobile | NFC | QR Code
Payment Processing
FSS Toggle FSS Bill Pay

FSS dWallet FSS MPI

FSS Greenpin FSS Mobile Pay

FSS eCash FSS PG

Payment Data Infrastructure
FSS ACS FSS eKYC
Customer/Market/Product/Risk Intelligence
FSS Prepaid FSS PoSability
Payments Data Lake (FSS Paynalytix)
FSS CMS FSS Merchant
Issuer Stack Merchant & Acquirer Stack

FSS ATM FSS POS

FSS Recon Identity & Authentication, FRM & AML –
Monitor Monitor
FSS Token Vault, FSS ACS FSS/FICO
FSS iRewards FSS BBPS
Monitoring & Reconciliation Stack Digital Security Stack

8 FSS IP Partner IP
 CONFIDENTIAL

Integrated Payments Hub

Payment
Types Bank Payments
Payment Initiation
User Sponsore Settlement
Channels Interface d Banks
RTGS Channels
RTGS
Corporate Associates
NEFT
NEFT
Core Banking Treasury Other User Interface
System System Systems NACH
NACH

Payment
SWIFT
SWIFT Exceptions
Initiation

Settlement
Settlement Channel
RTGS NEFT
Cash FSSPaY
FSSPaY Message
Internet Workflows
Screening

Source
Mobile

SourceAdapters
Management
System
Banking Banking NACH SWIFT
ATM
ATM

ChannelAdaptors
Parsing Enrichment

Adapters
IMPS CTS
IMPS
IMPS
Retail Delivery Channels
Routing Liquidity

Adaptors
AEPS
AEPS Government
EFT Switch Payments
Transformation Accounting
PFMS
PFMS
PayPort
Security Charging FSSNeT
FSSNeT
DBT
DBT
Ripple
UPI
UPI Common Routines/Tools
Risk &
Digital Wallet Email/
Fraud/
BBPOU
BBPOU SMS PCI DSS
AML (PA
Financial Server (PA DSS)
DSS)
Compliant
Compliant
Inclusion
Internet PG
Reconciliation

Data
DataWarehouse
Warehouse Business
Business Intelligence
Intelligence Reporting
Reporting Compliance
Compliance Liquidity
LiquidityManagement
Management

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 CONFIDENTIAL

A Truly Global and Highly Diversified Customer Base…

Americas ASEAN

Srilanka
Europe

Australia

ME

India
Africa Banks and FIs

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 CONFIDENTIAL

Case Study - Present in Critical Parts of the Payments Ecosystem at SBI

Retail & Wholesale Payments penetration
Payment Processing – Switching,
Integrated Payment Hub
 Track record of successful
relationship for close to 20 years

 Won several awards including Asian Merchant &

Banker Award for the best Issuer Stack @
Acquirer Stack 2016-2017
Technology platform and
Launched Integrated
implementation in the year 2016-17 Payment Hub to manage
and process
transactions
2015-2016
Monitoring & Reconciliation
Upgraded FSS CMS to the
Stack
latest version, 350+ Mn cards
currently on the platform
2014-2015

Updated FSS recon to Launched FSS CMS Prepaid

2012 to enable bank to provide
latest Enterprise version,
Deployed currently reconciling prepaid card services to
2008
600+ ATMs 40mn+ transactions 15mn+ cardholders
2006 Launched on E2E basis
2000 2002-03 2003-04 FSS iPAY Upgraded to FSSiPAY’s latest
Started ATM
Established Started Card Started FSS Managed Services, and FSS Deployed version, acquiring platform to
relationship with SBI Management Recon currently manages Merchant 1800+ ATMs 100,000+ of the bank’s
with sale and System 8,000+ ATMs processing in MP region ecommerce merchants and
implementation of as part of the processes 1mn+ transactions
EFT Switch MOF initiative daily

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Strategy and Future of FSS Payments Landscape
 CONFIDENTIAL

Business Segmentation to Address the Payments Opportunity

New Business
1 2 3 3
BU
BU Retail
Retail Payments
Payments ATM
ATM Merchant Acquiring
Merchant Acquiring Wholesale
Wholesale Payments
Payments

Switching & Payment Processing Deployment & Monitoring Merchant

MerchantAcquiring
Acquiring Payment
Payment Hub
Hub

Issuing Cash Management & Ops POS:

POS: Deployment
Deployment && Ops
Ops NACH
NACH // MMS
MMS

Acquiring Vendor Management Alliances

Alliances && Interchange
Interchange Cross
Cross Border
Border Remittance
Remittance
Core
Core
Offerings
Offerings Monitoring & Reconciliation Analysis & Reporting FRM
FRM && Chargeback
Chargeback Corporate
Corporate Payments
Payments

Digital Banking Analysis

Analysis && Reporting
Reporting

Analytics and Security

Licences End-to-end End-to-end / Managed Services

Business
Business Hosted – FSSNeT/On Premise Managed Services License / Hosted
Model
Model

Cloud Cloud Cloud

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 CONFIDENTIAL

Organization and Team Structure

Board of
Directors

Managing
Director

Corporate &
Corporate Corporate Enterprise Risk
COO Commercial
Development Marketing Management
Office

CRO – Retail
Finance
Payments

President ATM HR

CIO Legal

CPO Admin COO – Chief Operating Officer

CRO – Chief Revenue Officer
Business
CIO – Chief Information Officer
Marketing CPO – Chief Product Officer

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 CONFIDENTIAL

Highly Experienced Management Team Backed By Marquee Investor Base

Backing of marquee investor base

 Global VC firm with US$18bn+ AUM  Leading PE firm with India AUM of  Leading PE firm with AUM of
 Track record of successful investing in US$600mn+ US$6bn+
over 210 portfolio company IPOs and  Track record of 20+ investments in  PE capital provided to 20+
over 360 acquisitions India since 2000s companies in India and USA

Eminent board of directors

Nagaraj V. Mylandla Rudhraapathy. J Sharada Mylandla Bala Deshpande Srinivas Chidambaram Rahul Garg Bask Iyer
Founder, Chairman & Director Director Director Director Director Independent Director
Managing Director Senior MD - NEA MD & CEO - JBC Partner - PremjiInvest CIO, VMWare

Highly experienced management team

Strong regional leadership

Ram Kumar Chari V Balasubramanian Sivakumar G Vinodh Krishnan Rishi Pillay
Haresh Hemrajani
COO President - ATM & President - Finance ChelamBathodi Srinivasan GM - South Africa
GM - Europe Region
Merchant Acquiring CHRO CRO
29+ 25+
32+ 26+ 25+ 26+ 26+

MP Suresh Kumar Subramaniam Venkatraman Sankar Lakshmanan Dave Katter Dambaru Epili Bradford Kelly Khaled Mohamed
VP - Legal & CS VP - Corporate Development CIO GM - Canada President - North GM - ANZ Region GM - ME
Americas
25+ 24+
29+ 21+ 28+ 39+ 32+
Note: TP – Transactional Processing , GM – General Manager, JCB - Jacob Ballas Capital, RSBS – Rural Shores Business Services

Denotes Experience 15
 CONFIDENTIAL

Platform-agnostic, Full Spectrum Offerings Across Multiple Payment Channels

FSS’s portfolio of products forms the ‘payment rails’ for banks to process payments across multiple channels

Consumers
Customers
Touch-points / Technologies
Retail Payments
Mobile
Mobile
Channels / Form Factor

Switching / Payment Issuing Bank

Emerging Payment

Processing Issuing
UPI
UPI
Monitoring and
Acquiring
Reconciliation
IMPS
IMPS
Digital Banking Digital Security
Acquiring Bank
QR
QR Code
Code
ATM
Deployment and
Aadhaar
Aadhaar Pay
Pay Analysis and Reporting
Monitoring
Cash Management and
Operations Merchants
ATM
Traditional Payment

ATM
Channels / Types

Wholesale Payments
POS
POS
Payment Hub Corporate Payments

Web
Web // Internet
Internet
Merchant Acquiring Processors
Cards
Cards POS Aggregation

FSS
FSS is
is platform
platform agnostic
agnostic and
and acts
acts as
as the
the “Digital
“Digital Backbone”
Backbone” in
in the
the payment
payment value
value chain
chain

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 CONFIDENTIAL

FSS Payments Platform

Banks Financial Institutions Retail Processors Merchant Acquirers Retail

Consumer
Layer

Business Solutions
Value Added ISVs Value Support
Digital Core
Resellers Added Tools
Applications Operations
Services

Market Service Layer

Place
1. Agile
Open APIs
2. Innovative
Developer Business 3. SLA Driven
APIs APIs APIs Solutions
Community

Issuing Acquiring Transaction Back Office Security CBS Shared Services

Processing
Debit
Debit Payment
Payment Gateway FRM Online
Online Banking User
Platform and
Gateway FRM Banking User Management
Management
Connect
Connect and
and
Reconciliation
Reconciliation Data Layer
Prepaid
Prepaid Merchant
Merchant Onboarding
Onboarding Routing
Routing AML
AML Mobile
Mobile Banking
Banking
MIS
MIS Reporting
Reporting 1. Robust Platform
Settlement
Settlement
Wallets
Wallets Merchant
Merchant Management
Management Message
ACS
ACS 2. Modularized
Message Dispute
Converter
Converter
Dispute 3. Rationalized
Management
Management
Credit
Credit System
System Terminal
Terminal driving
driving TOKENVAULT
TOKENVAULT

Paynalytix

EFT
Network Layer
EFT Switch/
Switch/ FSS
FSS Connect
Connect Partner
Partner APIs
APIs
1. Extensible
2. Easily
Configurable
Partner
Partner Products
ProductsAs
As
TPP
TPP Banks
Banks Interchange
Interchange Wallets
Wallets Alt
Alt payments
payments Service
Service

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 CONFIDENTIAL

Investment Model

· Concentration of efforts and investments are directed towards new R&D initiatives
Investing for 10% · Selected offerings evolve to the 30% bucket
future
· New investments are directed towards new businesses, new areas and potential inorganic growth opportunities
· Emphasis on building future roadmaps for the existing businesses & offerings
30%

· Fresh allocation of capital towards existing, established businesses & offerings, contributing to 100% of
FSS’s revenues

60%

30%
30% investments
investments towards
towards new
new businesses
businesses and
and new
new areas
areas 10%
10% investments
investments towards
towards new
new R&D
R&D initiatives
initiatives

Platform
Payments

IOT/ AI / ML
FSSNeT
going global Conversational
Commerce
Payments in a Micro
Box Services Risk & Fraud

Distributed Ledger/
Payments Data Block Chain
Lake
Cloud Enablement

IOT: Internet of things, AI: Artificial intelligence, ML: Machine learning

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 CONFIDENTIAL

Way Forward

Key drivers FSS strategy

Data
Data localization
localization

Push
Push on
on digitization
digitization with
with new
new initiatives
initiatives
Retain customers & Develop IP & optimize
increase market
Competition share
Market Competition from
from MNCs
MNCs

Disruptions
Disruptions by
by new
new players
players

New
New regulations
regulations and
and guidelines
guidelines
Invest in people and
Spread risk
infrastructure to
Cost
Cost optimization
optimization with
with superior
superior technology
technology strengthen delivery

Uncertainty
Uncertainty on
on volumes
volumes

Customer Uncertainty
Uncertainty of
of adoption
adoption with
with new
new initiatives
initiatives

Bank
Bank vs
vs non-bank
non-bank entities
entities who
who fight
fight for
for share
share
Overseas growth Improve operational
efficiency
Convenient
Convenient without
without compromising
compromising security
security

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Thank You