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FINANCIAL TEAM 1
ERA
KOHO- 2015 by Eberhard.
Banking Experience
Combination of two
unique fintech business
models Main source of income-
Contd. • Digital wallet
• Digital Banking.
Merchant discount rate.
Benefit for both sides: Increased sales for merchant, Cashback rewards for customers.
OPEN-BANKING
Fintech companies were able to leverage Financial data only available to banks
Free mobile banking alternative Mobile shopping platform that Employed closed loop business
that provided rewards rewarded users for purchasing model – Issued cards and process
behaviour the payments
Leveraged machine learning to Leveraged open banking API It could leverage to attract
provide customizable tools merchants and incentivize higher
spending
Did not raise any public funding Had to satisfy many regulations High exposure to credit risk and
rounds merchant adoption difficulties
ALTERNATIVES
Most of the revenues were derived from MDR fees Require major investment in infrastructure to build
Major costs included marketing cost and salary of an API
employees Move into crypto currency services
This led to cost saving to both shareholders and
users But have to catch up on competitors to get market
share
Should Koho continue with current strategy or invest in new
technologies?