TrustBuddy Software Platform

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Advokatfirman Lindahl KB

P.O. Box 1065, 101 39 Stockholm, Sweden

STOCKHOLM GÖTEBORG MALMÖ UPPSALA ÖREBRO HELSINGBORG www.lindahl.se

TrustBuddy Software Platform

Enables a powerful competitive edge by enabling the

rapid creation, launch and servicing of loan products

This software overview is made subject to correction of errors, omissions, or withdrawal from the market without notice. Information is for guidance only and does not constitute all or any part of an agreement. Any reliance on these contents, or on any communications with Lindahl or TrustBuddy’s current or former employees, board of directors, or advisors, shall be at the prospective purchaser’s own risk. Prospective purchasers should rely exclusively on their own investigations, interpretations and analyses in connection with this matter. Lindahl is providing this information without any warranty or representation express or implied, as to its content, its accuracy or completeness.

Introduction

The TrustBuddy Software Platform is a fully featured loan issuing, underwriting, and servicing platform. The platform includes software systems for credit scoring, new customer onboarding, accounting, and direct customer communication via email and SMS.

The platform has support for multiple countries, languages, and customer-facing brands.

Background

The TrustBuddy Software Platform was originally designed for peer-to-peer lending, acting as a marketplace between lenders, who provide capital, and borrowers, who receive loans from that capital. The platform was later extended to support standard lending.

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Capabilities

Capital Acquisition

■ Lender registration and identification via BankID and other European identification schemes.

■ Registration of lender funds.

Loan Issuing

■ Borrower registration and identification via BankID and other European identification schemes.

■ Affiliate tracking and reporting.

■ Set fee and interest per product, loan amount, brand and customer score. ■ Credit products:

● Short term peer-to-peer loans.

● Long term peer-to-peer annuity loans. ● Short term direct origination loans.

● Long term direct origination annuity loans.

■ Manual and customizable automatic distribution of lenders capital on new loans for peer-to-peer products.

■ Support for full automatic approval of loan, or one optional manual approval step. ■ Calculations of payment plans.

Loan Underwriting

■ Credit policy. ■ Credit scorecards.

■ Manual and automatic loss registration and approval.

Accounting

■ Chart of accounts

● A listing of all accounts used in the general ledger. The chart is used by the Platform to aggregate information into financial reports. In the Platform, the chart of accounts in stored in the database and is queryable to create an overview. ■ Cash and accrual accounting

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● The system supports cash and accrual accounting in various situations.

■ Journal entries

● Entries in customer accounts are viewable in the Platform’s Back End System.

■ Accounting reports

● A full featured and queryable reporting system allows creation of reports on all accounting data.

■ Double-entry bookkeeping of all financial data ■ Profit allocation

■ More than 40 correction types to notate and correct wrong accounting. For example, correcting registration of incoming payments on wrong customer

■ Reconciliation of bank transfers, and system for internal control ■ Calculations of return and loss for lenders

● Monthly, annual, and for last 3/6/12/24/36 months.

● Based on interest over weighted lent out funds in the period of calculation.

Loan Servicing

■ Receiving money from debt collection, and splitting money on customers.

■ Reconciliation of incoming payments, via direct bank integrations or manual import. ■ Export of loans for transfer to debt collection agencies. Support for multiple debt

collection agencies in each country, and for each product and brand. ■ Receiving money from debt collection, and splitting money on customers.

Loan Management

■ Storing of customer data.

■ Good customer and loan search possibilities.

Communication

■ Invoicing of borrowers via SMS and email. Fully customizable and templated email and SMS text via WYSIWYG interface.

■ Customizable call lists integrated in web interface. ■ Scheduling and sending of batch SMS.

● Based on loan status. ● Based on a customer list.

■ Tax reporting (Sweden only). Annual report to borrowers and lenders. ■ Internal messaging between employees.

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Other

■ Settings based on system, customer-facing brands, and countries. ■ Third-party agent system, including login pages for agents.

■ Configurable integration system for setting up file exchange with banks and debt collections agencies.

Technical Specification

The TrustBuddy Software Platform is comprised of four interconnected systems. Each system communicates with the others via a REST API (Front End, Back Office and Scoring System) or database (Reporting system). To prove consistency, the system consists of many unit and integration tests.

Systems

Front End System

Web interface for customers. Supports registration of borrowers and lenders, application for loans, “My Pages” for borrowers with overview of active loans and loan history, “My Pages” for lenders with overview of loan performance in each market and registering of requests for withdrawals and transfers between markets.

Specification:

■ Primary programming languages: C#, JavaScript ■ Frameworks: ASP.NET

■ Content management system: Umbraco ■ Database: Microsoft SQL Server

■ FAQ integrated with UserVoice

Back Office System

Web interface for employees. Multiple Windows services. Specification:

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■ Frameworks: ASP.NET.

■ Database: Microsoft SQL Server

■ Authorization management to back office web interface: NetSqlAzMan (3rd party). Full possibility to add/remove accesses without code changes since accesses in code are given through operations (and not roles).

Scoring System

The system is built on statistical analysis that proves the quality of the scoring. Flexible in terms of adding additional markets, additional features and additional policies. Can connect to multiple data sources both internal and external.

Specification:

■ Primary programming languages: C# ■ Database: DocumentDB

■ Azure web app

■ Text file (JSON) based configuration

Reporting System

Reporting system provides both real time and data warehouse reports for business insights through SQL Server 2012 Reporting Services.

Specification:

■ SQL Server 2012 Reporting Services. ■ 50+ custom made KPI reports.

■ Role based access to relevant reports.

Infrastructure

Production Environment

The systems run on Microsoft platform, consisting of 6 virtual servers and 1 Azure web app. Windows server 2012 R2 on top of HyperV divided in five different network zones:

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DMZ

Frontend server, internet access to web pages. Dump server available through SFTP for transaction files, and publishing of custom reports for big lenders.

App Pool

Application server, API available from DMZ, backend application available for employees through VPN.

DB-net

Database and reporting server, DB available from App pool, reports available through VPN.

Scoring-net

Virtual network in Azure for Scoring WebApps.

Logging

Kibana and Elasticsearch is configured on a virtual machine in Azure, available through VPN for troubleshooting purposes. Logging for both production and test environment is done on the same server.

External services

Some external services are used to provide non-core functionality, these are:

SendGrid

All outbound e-mails from the system are sent through SendGrid to ensure safe delivery. E-mail is categorized and statistics are provided on delivery, reads and bounces etc.

Yoyo

All outbound SMS’s from the system are sent through Yoyo to ensure safe delivery.

CloudFlare

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Google Apps

Inbound e-mails are received through our google apps account and forwarded to UserVoice for customer support.

UserVoice

Cloud based ticket handling system, handling customer support and FAQ. The FAQ is

integrated with the frontend pages. Incoming and outgoing emails are imported to the system’s database for easy access from back office system.

Test and development environment

A complete test and development environment with 4 Servers and a number of webapps exists in parallel with the production environment. This is configured as 1 frontend server, 1 application server, 1 database server and 1 server for build and deployment. Team Foundation Server is used as Build server and Octopus Deploy ensures effective deployment to all environment and promotion to production.

Supporting services

Active Directory

An Active Directory service is configured with two domain controllers. This is used for restricting access to different servers and services. All servers except DMZ, front end-test and Kibana are member of the domain.

VPN

To provide secure access to backend, all employees access the TrustBuddy network through a Virtual Private Network. Most users does this through a VPN software client, but some offices has a dedicated VPN with no need for Software VPN.

Visual Studio Online

VSO is used as code repository and product backlog, and is integrated with the Team Foundation Server for automatic building and test run (continuous integration).

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TrustBuddy Software Platform

TrustBuddy Software Platform

Enables a powerful competitive edge by enabling the

rapid creation, launch and servicing of loan products

Table of Contents

Introduction

Background

Capabilities

Capital Acquisition

Loan Issuing

Loan Underwriting

Accounting

Loan Servicing

Loan Management

Communication

Other

Technical Specification

Systems

Front End System

Back Office System

Scoring System

Reporting System

Infrastructure

Production Environment

DMZ

App Pool

DB-net

Scoring-net

Logging

External services

SendGrid

Yoyo

CloudFlare

Google Apps

Test and development environment

Supporting services

Active Directory

VPN

Visual Studio Online