Investor Presentaiton

1 Five key Implications for the Financial Sector (1/2) Regulatory framework 2 Complex commercial relationship and third-party risk 3 Data privacy & Cyber Security The idea of EmFi existed for many years, but it was not given much regulatory attention. The nonexistence of specific regulation creates uncertainties for instance, about the responsible party for regulatory violations. Regulators may need to establish bespoke regulation governing specific areas of EmFi such as BNPL. EmFi enables consumers to engage with products and services from two or more separate institutions. This can create a problem for consumers because they may not know which institution is responsible for which part of the product service or purchase experience. Improve third-party governance by implementing an integrated risk management strategy designed to catalog, assess, evaluate, treat and monitor third-party risk, prioritizing areas where there is external access to internal systems and customer channels. Financial institutions and the EmFi partners should also ensure that data transfer arrangements through APIs satisfy legal and regulatory requirements • Policy makers and regulators should constantly review the existing EmFi infrastructure, particularly, API security, data sharing arrangements and the design of embedded products and services to ensure that they comply with existing consumer protection and data privacy laws and regulations. Sensitivity: Public

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