Responsible lending insights Engine RELIE Our AI insights

Responsible lending insights Engine (RELIE) Our AI insights engine takes transaction data and provides brokers with meaningful analysis about consumer expenses that protects them against responsible lending breaches in the lending process. February 2018

What does Opica bring? 1. 70+ years combined Mortgage industry experience Founders have had extensive experience at Major Banks Mortgage Aggregators Non-Bank Lenders 2. 3. 50+ years of Financial Services Technology Industry leaders in Wealth Management and Mortgage software Experts in digitisation of mortgage loan applications and financial advice processes Innovative product vision to support our clients’ business growth 2

What is RELIE 3 Go thru this manually • • Clients hate providing statements 1000 s of transactions Takes 4 -6 hours to do it badly Any 1 transaction might be a critical issue that is missed Broker Statshas on a. Brokers Now choice. 50 Broker Groups Both willbrokers involve Bank 15, 000 Statements Write XXX loans Don’t verify expenses Australian Royal Commission Automate • • • Get statements directly from Bank Fully categorised Analysis and Insights in seconds Whole process takes 20 -30 minutes No chance of missing key markers Heavily scrutinised the industry Confirmed expenses are not verified Made it clear that isn’t good enough Industry knows this will change Moving from “Tell me” to “Show me”

What is RELIE We capture 365 days worth of transactions from all bank accounts, home loans and credit cards This means you have a client’s ACTUAL income and expenses We consolidate data across ALL institutions and ALL applicants This gives you a household view of total income, expenses and their savings/repayment capacity We categorise transactions for you, aligning to the categories you need for approving a loan 4 Performed by our proprietary AI machine learning engine – Sherlock™ We automatically determine: mandatory/discretionary status of expenditure One-off or recurring expenditure Should the expense be included in “Living Expenses” You can make changes to personalise an assessment and add notes why This dramatically increases your ability to demonstrate affordability Our category list is the only one optimised for insights and analytics around key behaviours We identify undisclosed debts or accounts We highlight any strange large one-off transactions We track expenses for babies to identify life events around newborn children We monitor high-risk expenditure (alcohol, gambling, etc) We “learn” from the changes made by all of our users This means you can write more loans: Eg: Client earns and spends $100 K 1. We see a $5 K couch and a $5 K TV. We exclude these for you. 2. You see a $10 K one-off trip to Japan. You exclude and add notes for why 3. Client now has a surplus of $20 K Identifying and putting notes here is critical to protect your business against future claims.

The RELIE Process Create Application • Add Applicants • Enter Name • Enter E-Mail address 5 Link Institutions • Add each Institution • Choose to add credentials now or via email invite • Client provides Login Credentials Client CRM Process Assessment • Review automated Categorizations • Make Changes • Add Notes • Generate Reports

Step 1 – Create Application 6 • Add the Application Details • Add the Applicant(s) Details This step can be skipped if you integrate RELIE into your CRM

Step 2 – Add Institutions 7 • Select from over 170 Institutions • The client enters their login credentials • In a few moments RELIE returns a list of all the accounts.

Step 3 – Perform Assessment RELIE automatically breaks down expenses and income for you: 1. Those that should likely be included 2. Those that should likely be excluded 8 • 12 Months of Transactions, all categorised for you • The wizard steps you through the process to complete the assessment • Calculates Mandatory Expenditure for you • Shows you the clients ability to repay a loan

What is the new Wizard Automates the assessment process Guides you through six simple steps Brings all the relevant transactions for each step to your attention Allows you to mark each step as complete as you go The Outcome 1. Makes completing an assessment much faster 2. Much easier to learn 9

Step 1 – Verify Income 10 Just shows you the income (credits) transactions Finds most Employment and Investment income automatically Excludes Transfers between accounts Helps you find self employed or missing income

Step 2 – Review Insights 11 Highlights any possible issues in the data Undisclosed Debts Large one-off transactions Gambling or other problems Possible pending child-birth Shows the transactions involved Allows you to add notes to explain Lets you reclassify the transactions Or lets you filter the assessment to just see those transactions

Step 3 – Review Uncategorised Transactions Highlights Uncategorised Transactions Mostly these will be small discretionary expenditure But by sorting by dollar balance you can quickly find: Large Transactions Mandatory Transactions Repeating Transactions The remaining transactions can be ignored 12

Step 4 – Review Low Confidence Transactions Highlights Transactions we are not confident in the Categorisation We focus on those > $300 You can quickly verify if they are accurate These are not sports equipment Recategorise those that are wrong Improves the quality of your assessment Improves all future assessments 13

Step 5 – Review Excluded Transactions RELIE automatically excludes many transactions from the assessment: One off transactions such as buying a couch or a TV Debt Payments as the actual repayments are not factored into living expenses Rent – as generally it wont continue if the loan is successful But you should quickly review to ensure there is nothing here should be included 14

Step 6 – Review One-Off Expenses > $300 This last step looks for expenses that won’t reoccur next year, such as: Special Travel and Family Holidays One-off expenses, perhaps such as medical or property related costs. You can exclude them, and write a note to say why you excluded them. By the end of this step you will know if your clients can afford the loan 15

Compare Estimated and Actual Expenses You can also RELIE to compare a client’s estimated to actual expenditure You can have them estimate their expenses while they are adding their institutions And when you have finished the assessment the system will compare this to the actual results. 16

Reporting 17 • Summarised Report of all expenses • Highlights surplus income • Records all changes made including notes • Allows you to get client sign-off, accepting your changes. These reports are your defence around Responsible Lending

Retrieve Bank Statements • Download Bank Statements • Choose the timeframe you want • No need to get from the client anymore • Submit as part of the loan application 18

What does it cost? 19 Stand Alone Cloud-based Solution User set-up = once off cost of $20 Relie-check cost is $15 per applicant Check with us – some Aggregators have negotiated lower rates per applicant. New Fee Structure coming on the 1 st June: Minimum Monthly Cost = $30 per month (ie – Two Applicants) But if you sign up before 1 st June you won’t pay this ever! Prices exclude GST

Next steps 20 Where to from here? Participate in one of our webinars https: //www. opicagroup. com. au/relie-check/ Sign up to the system: https: //registration. reliecheck. com. au/ Feedback/Suggestions: Cameron. osullivan@opicagroup. com. au 0414 571 632