BFM
BUSINESS FINANCIAL MANAGEMENT Ω
Taking the complexity out of
business finance
© Strands Inc. 2016
1
VALUE PROPOSITION
1. BFM VALUE PROPOSITION
BFM: THE NEW WAY OF BANKING FOR SMEs The comprehensive digital banking solution for managing business financials in a more simple, efficient and engaging way.
SMEs
Corporate Banking
Retail Banking
“There is an alarming disconnect between what small businesses want and what banks deliver.”
PAIN POINTS OF THE “MISSING MIDDLE” 1
2 Prohibitive costs to professional financial management services
5
3 Dispersed, unintelligible financial data
6 Manual invoicing
4 Too many different tools to manage day-to-day tasks
7 70% have no relationship with a bank manager
No way to track or forecast cash flow, AR/AP
8 40% need advice to run business more effectively and plan growth
42% would switch to a bank or Fintech that shows an understanding of their business Source: IFC, World Bank
BFM USER JOURNEY
1. RECONCILIATION
2 . FO R ECAST I N G
Business owners can balance the books easily and painlessly so they are never in the red
Automatic and accurate forecasting helps SMEs gain peace of mind while taking full control over their business direction
3 . I N S I GH TS Generates relevant and actionable insights enabling business owners to take their business to new heights
4 . RE C OMME NDAT ION S Provides helpful advice specific to the user’s actual business activities
1. BFM VALUE PROPOSITION
WITH BFM SMEs GET: Smarter business decision making based on relevant, personalized insights powered by Big Data analytics
Flexibility for businesses at all stages, from startups to established companies to better understand and manage their finances
Real-time access to all financial accounts powered by Strands MetaAggregation engine Simple, intuitive and stunning data visualizations for an unparalleled user experience
1. BFM VALUE PROPOSITION
DESIGNED FOR 3 SEGMENTS FREELANCER
SMALL COMPANY
MEDIUM COMPANY
Business Name: Pale Design
Business Name: Chicdress SL
Business Name: Games Corp
Name: Jonah Pale
Name: Chloé Pierrot
Name: Sanjay Singh
Age: 33
Age: 42
Age: 37
Years in business: 1
Years in business: 8
Years in business: 15
Sector/Industry: Prof.Services
Sector/Industry: Retail
Sector/Industry: Software
Turnover p.a. : $78k
Turnover p.a. : $2.5M
Turnover p.a. : $25M
Employees: self-employed
Employees: 20
Employees: 110
3
PRODUCT FEATURES
3. BFM PRODUCT FEATURES
FUNCTIONALITY OVERVIEW Dashboard Track
Analyze
Transactions
Invoicing
Financial Calendar
Smart Notifications
Plan
Income & Expenses
Cash Flow
Customer Insights
Business Benchmark
Data Aggregation
Provisioning
Budgets
Dashboard Get a 360º view of business finances Frictionless UI with colourful data visualizations deliver an instant snapshot of how your SME customer’s business is doing
Track
Transactions
Manage and customize transactions Instead of a static list, transactions become actionable through search, filter, edit and split functions
Track
E-Invoicing
Take full control over your payment cycle Makes AR/AP management effortless and enables banks to handle end-to-end payment cycles for SME customers
Track
Financial Calendar
Visually monitor your financial commitments An interactive heat map shows daily, monthly and yearly spending patterns
Track
Periodic Payments
Track recurring payments Payment performance is trackable and enables proactive anticipation of any repayment issues
Track
Smart Notifications
Always stay informed
Personalized, behavior-based triggers deliver relevant, actionable messages in real time
Analyze
Income & Expenses
Bring transparency and clarity to your financial data Enables users to visualize expense categories and income sources over a defined date range through a frictionless, intuitive UI
Analyze
Cash Flow
Review & forecast incoming and outgoing cash flow Your SME customers can analyze and understand cashflow by tracking historic, actual and forecasted inflows & outflows
Analyze
Customer Insights
Retailers can analyze their customer behavior SMEs can better understand who their customers, how often do they buy, create segments and more
Optional for retailers
Analyze
Business Benchmark
Benchmark your business against similar ones Users can obtain a holistic, datadriven picture of the competitive landscape with the anonymous comparison tool
Plan
Budgets
Keep your business expenses under control Users can create monthly budgets to monitor and track all their business expenses. They can also drill down into each budget to view the purchase history
Plan
Provisioning
Realize your business growth goals Custom thresholds allow business financial goals to be met faster and more intelligently
External Data Aggregation
Holistic overview of all relevant financial information Strands enables external data aggregation by pulling together accounts from different banks and retrieving invoicing and accounting data from ERPs. Different accounts can be aggregated - business accounts, corporate credit cards, investment accounts, etc. - into a single place providing holistic overview of business finances. Banks
Cards
APIs
PSD 2
3
BUSINESS CASE
3. BFM BUSINESS CASE
THE PAYOFF FOR THE BANK Higher customer satisfaction, higher rates of customer retention, and higher revenues per customer
Empower your most lucrative segment: SME deposits are 4x greater and balances are 15x higher than retail banking customers
Understand your customers’ specific needs to offer relevant products & services at exactly the right time Reduced operating costs: Process automation means more resources to add higher-value advisory
3. BFM BUSINESS CASE
THE WAY TO GENERATE NEW REVENUE FOR BANKS Offer SMEs value-added services Did you know?
+10$
£8.5 BILLION
1/3
More than half of SMEs are willing to pay an additional $10 every month for personalized business financial management services
Banks (in the UK) could open up to £8.5 billion in new revenue streams by 2020 by delivering value-add products and services to SMEs
If banks are unable to address SME pain points, 1/3 will turn to nonbanks to make payments, access loans, and manage transactions. Source: Accenture “SME Banking 2020”, Aite Group
3. BFM BUSINESS CASE
BANKS ARE PREFERRED FOR EASE & SECURITY Compared to non-bank technology providers, SMEs value solutions provided by their bank
Ease: Ease: I enjoy the convenience of
59 %
accessing all of my banking
products at a single location
Category Axis
Security: Security: I trust that my bank has done
58 %
the necessary due diligence
on the vendor/technology
Relationship-based pricing: Relationship-based pricing: the more
37 %
products I use at the bank, the deeper
the discounts I receive Other
3 %
0Source: Aite Group 0,15
0,3 Value Axis
0,45
0,6
3. BFM BUSINESS CASE
WIN-WIN FOR ALL STAKEHOLDERS Relieves pain points & generates value for SMEs and banks: SME
Relieve 7 major SME pain points: (1)
cost-efficient, affordable solution offered by the bank
(2) intuitive visualizations of all financial data in one place
BANKS
Meet digital banking expectations: bank manager becomes the ideal business partner
(3) data-driven cash flow tracking & forecasting (4) smart invoicing and AR/AP tracking
BUSINESS OBJECTIVES (5) direct engagement with SME banking professionals (6) dashboard for 360° overview of finances (7) one-stop-shop for personalized financial advice
Reliable, safe and secure solution
Increase SME retention & acquisition: BUSINESS OBJECTIVES by understanding their specific needs better
Generate direct revenue stream: business customers are ready to pay for such services because it’s a “need” rather a “want”
3. BFM BUSINESS CASE
BECOME THE GO-TO BUSINESS PARTNER FOR SMES Enable your customers to centralize all their business finances ERP
Lending platforms Bank 1
Bank 2
Bank 3
Bank accounts
BFM
3rd party accounting software
Any external data source… Credit/Debit Cards Invoices
3. BFM BUSINESS CASE
BECOME THE GO-TO BUSINESS PARTNER FOR SMES Enable your customers to centralize all their business finances ERP
Lending platforms Bank 1
Bank 2
Bank 3
Bank accounts
BFM
3rd party accounting software
Any external data source… Credit/Debit Cards Invoices US
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