WeBank’s Supply Chain Finance Solution

This document illustrates only one use case to help the readers understand how SC Finance works;
customized solution to address specific requirements/scenarios is possible
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 Actual use case of WeBank’s Supply Chain Financing

Within 1 week:

Acquired buy-in from 1 Anchor and its 600+ suppliers

Provided Services to 400+ suppliers

Financed 200+ suppliers from 21 cities with over of RMB 200 million

Today:

Masked to protect the identities of real partners And Many More……

Copyright © 2015 - 2018 WeBank. All Rights Reserved — Confidential & Proprietary
 WeBank’s Supply Chain Financing Platform

WeBank has developed a proprietary supply chain financing platform

Big aimed at working with all businesses on the supply chain. The system
Data uses practical trade information as its foundation to service dynamic
solutions across upstream suppliers and downstream distributors
AI centered by the anchor corporate.
Cloud
Computing

Based on the ABCD (AI, Blockchain, Could Computing, Big Data)

Blockchain
model, WeBank targets to increase collaborative financial partners and
to create an online supply chain financing ecosystem through
businesses connected with the anchor corporate.

WeBank provides end-to-end solution that includes product design and technological
support to create an online supply chain financing ecosystem

Copyright © 2015 - 2018 WeBank. All Rights Reserved — Confidential & Proprietary
Key differentiators compared to traditional factoring solution

Corporate AR AR Funding Funding

Approval Interview Registration
& Supplier Initializing Confirmation Approval Release

Traditional 20 30 5 3 3 1 2 0

vs

WeBank 10 15 0-5 0 0 0 0-2 0

RM RM
Traditional Product Initial + Final RM + Risk + Accounting N/A
+ Operations + Accounting
vs
RM RM RM
WeBank Once FULLY ONLINE N/A
+ Product + Operations + Accounting

Copyright © 2015 - 2018 WeBank. All Rights Reserved — Confidential & Proprietary
Upstream Supplier Model
Credit limit granted to Anchor + Business transactional Fully Online Account Receivable
=
evidence + Custodian services Split, Transfer, Financing, Hold

Splits 20k Option

To the next supplier : split, transfer, financing,
custodian
Secondary Supplier

Splits 80k Option

To the next supplier : split, transfer, financing,
custodian
Secondary Supplier

Splits 50k Option

To the next supplier : split, transfer, financing,
custodian
Anchor Corporate Primary Supplier
Secondary Supplier
Issues 1 m payable voucher Confirms 1m voucher Splits 20k

Tertiary Supplier
Splits 30k Splits 10k

Tertiary Supplier
Secondary Supplier N-level supplier

Copyright © 2015 - 2018 WeBank. All Rights Reserved — Confidential & Proprietary
 Not available for international partners
Downstream Supplier Model
Anchor business data + Cashflow info + Process flow + Customizable financing products for
=
Proof of additional credential distributors

Quota 1 Option
One time payment of principal + interest

Short-term financing
Quota Control Anchor Corporate
Quota 2 Option
1 -2 years financing loan

Long-term financing

Quota 3 Option
Cross-border credit products
Quota Control Anchor Corporate Distributor
Cross-border financing

Quota 4 Option
Order products

Pledge financing

Anchor Corporate
Copyright © 2015 - 2018 WeBank. All Rights Reserved — Confidential & Proprietary
 WeBank will enable our partner through the providence
of tech suites and knowledge transfer
For Your Front-End WeBank-Managed For your Back-End

• Marketing Tools • Back-End Configuration • Existing Client D/b

• Online Contract • (Account opening not • Add. Credit Credential
Preparation • Account Opening required) • Offline Marketing
Phase • Contract Systems
• System Deployment
• Customized Configuration

• Anchor/Supplier UI/UX • Product Design & Upgrade • Approval & Operational

• Online Registration • Assisted Approval & Ops Data
Data
• Online Services Management Sync.
• Risk & Technical Support
• Assisted Marketing • Assisted Risk Modeling & • Product Management &
Data Sources Integration Upgrade
Operations
Phase
• Ledger Systems • AR Rights Transfer Reg. &
• Reconciliation & Profit System Recording
Management Patch. • Financing Request &
• Assisted CRM Approval
• Drawdown Systems

Copyright © 2015 - 2018 WeBank. All Rights Reserved — Confidential & Proprietary
 Offline Process Online Process Initiator

The Main Process Flow

Supplier Anchor Platform Operator Funder (You)
Account Opening at Contract Signing; Relevant Documents
Offline Marketing
Branches by Batch Settlement Acct. Preparation

Account Opening at Account Opening Anchor Onboarding

Notification; KYC
Branches (Optional) Preparation Approval

Option to Offline Account Account Opened; Account Opening Supplier’s & Subsidiaries
On- Opening Contract Signed Preparation Background Invg.

Boarding Connecting to Suppliers &

Notification; KYC Subsidiary Nomination
Subsidary

Account opened; Contract

Supplier Nomination
signed

Subsidiary's Account
Opened

Receive AR Confirmation AR Submission

Upload Evidence against Evidence Recognized;

Evidence Investigation
AR Approval

WeCredit Created; Limit Reg. of Transfer @

Factoring AR Transferred
Given Central Bank

Transfer & Financing Transfer & Financing

Hold | Transfer | Finance
Checking Approval

Transfer & Financing

Approval Confirmation
Voucher

Recon. Notification Maturity Reconciliation Payment Settlement

Copyright © 2015 - 2018 WeBank. All Rights Reserved — Confidential & Proprietary
 The technologies behind WeBank’s end-to-end Supply
Chain Finance

Blockchain Risk Management

• BC-enabled distributed business data sharing platform • Experience in handling enormous amount of
• Realtime credit/asset transfer and splitting data
• Hashed entries uploaded up to BC enabling multimode • 200+ risk models in library to cover vast settings
file transfer & scenarios

eKYC1 Optical Character Recognition

• Application of facial recognition • OCR is integrated onto the platform and solution
technologies to enable online ID of • OCR corrected data to assist in online review & approval；
companies’ officials

Advanced Algorithms Natural Language Processing (NLP)

• Advanced algorithms based on years of big data • NPL analysis is integrated onto the platform and solution
processing experience • Removal of manual work in verifying worded documents
• Gives differentiated & customized interest / pricing (contract,licenses etc)
results

1. Might not be applicable in certain jurisdictions

Copyright © 2015 - 2018 WeBank. All Rights Reserved — Confidential & Proprietary
 The application of different fintech capabilities lead to
lower costing and reduced risk
E-certs, e-escrow, and online
arbitration for added security

Scalable architecture that supports

Differentiated treatments at different
multi-asset-mode management
gates; system-assisted during and after
loan management

Automated pledging management with Fully online credit checking

direct channel to credit report system system with direct channels to

data source

Built-in dashboards to assist in

Near full online process to reduce
real time monitoring and
communications and operations cost
notification

Copyright © 2015 - 2018 WeBank. All Rights Reserved — Confidential & Proprietary
 Product Build-up BLUE FONT: Under development, available in the next versions

Anchor/Supplier Platform Manager Funder

Ops Mgmt.| Manual UI | Approval System | Profit split

Functions Ops Connection Terminal | Data Batch
Deposit Custody | Ecosystem Mgmt. | Additional Credential | WeChain Credit
supported Exchange
Mgmt. | Financing Mgmt. | Account Ledger

Embedment API | PC | APP | WeChat-related PC Cloud | Private | API | Docker

Add. Credential Confirmation | Data Veri. | Acct.

Payment | Ledger | Deposit | Notification | Add. Credential Limit
Adjustable Opening | Asset Transfer | Notification | Anti-Fraud |
| Credit Limit | WeChain Credit Limit | System Approval Settings NA
Settings CFCA | Facial | Fund Transfer | Bank Card | Cert.
| Product Variables Mgmt.
Verification | Official Cert Registration | Data Escrow

Non-adjustable Acct. Opening Flow | UI/UX | Approval Flow| Enterprise Application Approval | Mid/After Loan | Regulator Reporting | Process Flow Approval | Risk Approval |
Settings Loan | Personal Loan | Contracts | Notification Ledger recon. | Product statements | Financing Rules Financing Rules

Differentiation Reg. Processes | Info Mgmt. | Approval | Data Flow | Interest

Reg. Processes | Info Mgmt. | Agreement | Notification Data Batching Transfer | Ops Connection
Settings Rate | Platform Fees | Investigation Optimization

Deposit | Financing | Fund Transfer | Ticketing | Credit Limit Mgmt. | Sign In & Reg. | Real body Identification | Anti-Fraud | Notification | Online Agreement | Ops
Basic Mgmt.| Ops Systems | Settlement Engine | Profit Sharing | Financing Rules Recon. | Product | Pricing | Daily Reporting | Daily Settlement | Pre-Loan Approval | After Loan |
Applications Collections | Collateral | Regulatory Reporting | Unified Consensus | Tx-Bank Matching | WeChat Login | 3rd Party Login | Ticket Issuance
Settings Basic Capabilities：WeTuring | Rule Engine | Work Flow | Notification Platform | Internal Messgner| Big Data | Group Transactional Engine | Batching Settlement Arc. | File
Exchange

Data Inflow：Central Bank | 汇法 | Police | 元素 | Tax | Unified Invoice | 车300 | 安平 | 舆情 | Business License | Contract | ID | 百融GID
3rd Parties Risk Model Conntection：Weiyedai SME Loan |
Others：Data Escrow | CFCA | WeSign | Facial Recognition | 易道博识 EXOCR | 合合 | 中登
Copyright © 2015 - 2018 WeBank. All Rights Reserved — Confidential & Proprietary
Our collaboration method in China

Confidential & Proprietary

 WeBank incorporates all its core capabilities into the
SC Financing Platform

Product Tech. Risk Exp.

• Designed for banking • Financial grade • Multi-database patching • Experience in partnership

• Compliant • Low manual cost • Rules customization • Constant system upgrade
• E2E solution, from design to • Come-in-a-box • Multi-gate modeling • Verified business model
reconciliation

On-site Cloud Pricing Anti-fraud Weilidai Supply

Receivable Financing
Deployment Deployment Chain

Collateral Financing Collections Social SMEs Auto-loan

OCR/NLP Blockchain
(for Downstream) Media

Copyright © 2015 - 2018 WeBank. All Rights Reserved — Confidential & Proprietary
Default partnership method in China

1 2 3

Plug-in Upgrade Collaboration

On the cloud Improvement & easy Resource sharing

Convenient integration deployment Transparent
Co-marketing & operation Remote/accessible Integrated value

Efficient BD Advanced Cooperation Industry Penetration

Fast Validation Co-exploring Distributed Business

Copyright © 2015 - 2018 WeBank. All Rights Reserved — Confidential & Proprietary
 WeBank’s end goal is to build a collaborative
Supply Chain Finance Ecosystem

Bank FMCG
Insurance Infrastructure
Credit Services Trading
Financial Leasing Supply Chain Finance Logistics
Platform
WM & Trust E-commerce
………… ………….

Copyright © 2015 - 2018 WeBank. All Rights Reserved — Confidential & Proprietary