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NETBANK IS FOCUSED ON SERVING FINTECHS, CORPORATES AND BUSINESSES

Netbank Pillars of Service

A Filipino bank, working through partnerships. �

A bank that accelerates fintech partners

Mission

Fully regulated bank�with a national license and connections to national payment rails

Focused on B2B engagement �We don’t intend to build our retail consumer base and are solely focused on servicing our partners.�
White-Labeled Services�Since we are purely B2B, you can white-label our services as we stay behind the scenes�
Versatile Solutioning�Offers fintech a full range of digital banking services that can be customized to fit our client’s needs.�
Digital Channels�We present various options and channels (API/File Upload/ White-Labeled App) for you to access and utilize our services.

Dedicated Support�Fintechs can launch fast and focus on their clients and product

White-labeled bank accounts that can be opened for each merchant or client and can serve as an operating wallet.

Local Payout Solution to disburse sales proceeds to the any of the Merchant’s local bank account/e-wallet.

Counter Cash-out to disburse sales proceeds as cash pick up in any of Netbank’s network of partner counters (Pawnshops)

Collection Solution to accept fully-traceable bank transfer payments from clients through the use of Virtual Collection Accounts.
Card Issuance or BIN Sponsorship to provide cards for the merchants or clients.

What Netbank can offer�to payment companies

Confidential, not for distribution

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YOU ARE LOOKING FOR A SIMPLE WAY TO

DISBURSE FUNDS AND MORE

We are a live participant of the National Retail Payment Service which means you can send funds via Pesonet and Instapay directly from your Corporate Netbank Account or your Merchant’s Netbank Account.

We are integrating with Physical Counter Networks (MLhuillier, ECPay, etc.) to enable cash in and cash out.

We are licensed to open fully-regulated bank accounts that are PDIC-covered

We are Mastercard member with our own BIN

We have multiple integration models (API, File Upload, App) that allows a flexible connection and operational setup.

We have tools to complement our solutions such as Partner Dashboard for transaction monitoring and KYB tool for digital account opening.

Why can Netbank offer this service?

You want to disburse sales proceeds directly to the merchant’s:

regulated bank accounts
e-wallets
In cash via over-the-counter transactions

As an alternative, you are open to the idea of opening a white-labeled Netbank bank account for each merchant to establish a working wallet within your app and brand.

The account where the sales proceeds can be disbursed to for free and real-time as an intra-bank fund transfer.
A bank account that is connected to the local payment rails so the merchant can cash out directly to other bank accounts/e-wallets
A bank account that is connected to a virtual/physical card that the clients/merchants can use for payments

Our understanding of your situation

Confidential, not for distribution

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LOCAL PAYOUT SOLUTION: HOW DOES IT WORK?

Full-access to the up-to-date list of receiving banks and wallets�Retrieve the latest list of participating banks and e-wallet providers in Instapay and PESONet

Multiple ways to process any type of payout to any bank or wallet account�Through a single API endpoint or via our File Upload Platform, process real-time payouts to Netbank accounts, time-sensitive and small value payouts (less than Php 50,000 per transaction) to accounts in other banks or e-wallets via Instapay, or bulk and large value payouts to accounts in other banks or e-wallets via PESONet.

Multiple ways to check the status of each payout transaction�Check the status of your payout transactions via API or via the Partner Dashboard�
Seamless way of receiving status updates on each payout transaction�Receive notifications directly from our system to yours as soon as we get status updates regarding your transactions

Perform system health checks before sending your transactions�Check the status of the Instapay and Pesonet system to make the necessary adjustments in your operations and send the necessary notifications to your End-Users in case there are issues or downtimes.

Key Features and Benefits

Confidential, not for distribution

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LOCAL PAYOUT SOLUTION:

FEATURES AND FLOWS

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LOCAL PAYOUT SOLUTION: HOW DOES IT WORK?

YOU AND YOUR

APP/ INTERFACE / SYSTEM

PROCESS ACCOUNT-TO-ACCOUNT FUND TRANSFER API

YOUR NETBANK CORPORATE ACCOUNT

LOCAL BANK ACCOUNTS

LOCAL E-WALLETS

And Other Local Participating Banks

RECIPIENTS

END-CUSTOMERS

INTERNAL BUSINESS RESOURCES/PARTNERS

YOU will initiate Payout

NETBANK will

Debit Your Netbank

Corporate Account

NETBANK will

Credit Your Recipient’s

Bank/eWallet Account

Confidential, not for distribution

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LOCAL PAYOUT SOLUTION: HOW DOES IT WORK?

YOU AND YOUR

APP/ INTERFACE / SYSTEM

TRANSACTION VERIFICATION API

PARTNER DASHBOARD

L1 CLIENT SUPPORT

TRANSACTION DATABASE

YOU can inquire the status of the outbound transactions in multiple ways

STATUS UPDATE WEBHOOKS

RECEIVE CREDIT STATUS

INQUIRE CREDIT STATUS

YOU can can receive status change notifications via webhooks

Confidential, not for distribution

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LOCAL PAYOUT SOLUTION: HOW DOES IT WORK?

Develops and maintains the interface that the merchant/user interacts with
Manages KYC gathering and on-boarding of the merchants and users
Gathers the payout/disbursement details to the merchant so it could be processed by Netbank
The one who calls the Netbank API/uploads the file to trigger the disbursement
Monitors the status of the transactions sent to Netbank
Inquire transaction status using Netbank Tools
Receives transaction status updates from Netbank and updates the statuses on the user interface
Receives the inquiries/issues raised by the merchant/user

PAYMENT COMPANY

Triggers the payment via the Payment Company’s app/platform

END-CUSTOMER

Receives disbursement/payout requests and processes it via the National Retail Payment System
Returns the transaction result and status back to the payment company and publishes it to the Partner Dashboard
Receives the inquiries/issues raised by the Payment Company and its merchants/users
Reviews and monitors the transactions (and reports to the BSP if necessary)

Receives disbursement/payout requests via Instapay or PESONet

MERCHANT

Confidential, not for distribution

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NEXT STEPS

Agree on the final scope of the solution
Confirm and Sign the Commercial Proposal
Sign up to Netbank Virtual
Review the Disburse-To-Account API documentation and test it in Sandbox

CLIENT ACTIONS

Agree on the final scope of the solution
Send NDA (if necessary)
Send the Commercial Proposal (with the scope of the solution)

NETBANK ACTIONS

Confidential, not for distribution

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LIVE CLIENTS | LIVE CLIENTS

Confidential, not for distribution

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LOCAL PAYOUT SOLUTION:

GUIDELINES

Confidential, not for distribution

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LOCAL PAYOUT SOLUTION: PESONET vs. INSTAPAY

The National Retail Payment System (NRPS) is a framework established by BSP to modernize retail payments in the Philippines for the benefit of the consumers, industries, and economy. The framework has been built with 3 core principles in mind: “interoperability”, “inclusivity”, and “coopetition” within the financial sector.

Under the NRPS, there are two main Automated Clearing Houses that process inter-bank fund transfers. Namely, PESONet (by the Philippine Clearing House Corporation) and Instapay (by Bancnet). Below is the brief comparison of the two ACHs:

	PESONET	INSTAPAY
Nature of Participating Entities	Commercial Banks, Rural Banks, Thrift Banks, and Electronic Money Issuers	Commercial Banks, Rural Banks, Thrift Banks, and Electronic Money Issuers
Number of Participants (as of December 31, 2022)	104 participants	77 participants
Transaction Amount Limit	No limit per transaction	Php 50,000 per transaction
Crediting of Funds/ Funds Availability	Dependent on transaction cut-offs (see next slide for the full schedule)	Real-time

Confidential, not for distribution

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LOCAL PAYOUT SOLUTION: PESONET PROCESSING SCHEDULE

DAILY PROCESSING CYCLES	ACTIVITY	SCHEDULE�(Philippine Time)	STATUS OF TRANSACTION�(in the API and Dashboard)
Cycle 1 (transactions from 3:31 PM of the previous day up to 9:30 AM)	Transaction Sending Cut-Off (transactions from 3:31 PM of the previous day up to 9:30 AM will be batched for processing)	9:30 AM	Pending
	Netbank Batch Transaction Processing (to send the transaction batch to PCHC for processing)	10:00 AM	ForSettlement
	Deadline for Receiving Banks to credit and confirm (to credit the funds and give status update to Netbank)	2:00 PM	ForSettlement
	Netbank Transaction Status Update (to have an updated status in the APIs and Dashboard)	1:00 PM	Settled/Rejected

Cycle 2 (transactions from 9:31 AM of the current day up to 3:30 PM)	Transaction Sending Cut-Off (transactions from 9:31 AM of the current day up to 3:30 PM will be batched for processing)	3:30 PM	Pending
	Netbank Batch Transaction Processing (to send the transaction batch to PCHC for processing)	4:00 PM	ForSettlement
	Deadline for Receiving Banks to credit and confirm (to credit the funds and give status update to Netbank)	11:00 PM	ForSettlement
	Netbank Transaction Status Update (to have an updated status in the APIs and Dashboard)	10:00 PM	Settled/Rejected

Confidential, not for distribution

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LOCAL PAYOUT SOLUTION: PESONET & INSTAPAY TXN STATUSES

STATUS	DESCRIPTION	STATE OF FUNDS
Pending	The payout request has been received by Netbank	Debited from the Source Bank Account (Netbank)
ForSettlement	The payout request has been forwarded by Netbank to the Automated Clearing Houses (ACHs) for processing	Sent to the Receiving Financial Institution
Settled	The payout request has been processed by the ACH and settled by the Receiving Financial Institution to the target bank account	Credited to the target bank account within the Receiving Financial Institution
Rejected	The payout request has been processed by the ACH but rejected by the Receiving Financial Institution for settlement	Returned to the Source Bank Account (Netbank)

Confidential, not for distribution

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LOCAL PAYOUT SOLUTION: ACCOUNT HOLDER CONSENT

Our transaction APIs (such as Disburse-To-Account) would require a Consent Token when using the End-Customer’s Netbank Bank Account to transact.

The Consent Token can be generated by the Client by letting the End-Customer perform Multi-Factor Authentication (MFA) within their app/platform.

For Individual Customer Records and Accounts, the MFA should be done by the account holder himself/herself.
For Corporate/Business Customer Records and Accounts, the MFA should be done by any of the nominated authorized signatory. �

The Multi-Factor Authentication will consist of 3 steps:

Security Questions from KYC fields – birthdate, birthplace, first name of the Account Holder/Company’s Authorized Signatory.
SMS OTP Validation – OTP will be sent to the registered mobile number of the Account Holder/Company’s Authorized Signatory that was passed in the Netbank during Customer Record creation.
Explicit Confirmation – that the Account Holder/Company’s Authorized Signatory is allowing the Client to access their account to perform transactions such as fund transfer and payment. The Account Holder/Company’s Authorized Signatory must click the “Give Consent” button�

The Consent Token will generated and sent to the callback URL nominated by the Client to be used as a Bearer token for transactional APIs.�

The default validity of the Consent Token is 1 hour but the Client can configure for a long-lived token using the Refresh Token (if Netbank permits based on the risk assessment)

Confidential, not for distribution

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STANDARD COMMERCIAL TERMS

FEE TYPE		STANDARD RATE
Disburse-To-Account Transaction Fee (Netbank-to-Netbank Account)		Php 2.00/transaction
Disburse-To-Account Transaction Fee (Interbank via Pesonet/Instapay)		Php 10.00/transaction
Minimum Monthly Invoice		-
Fixed Monthly Fee		-
ADB Requirement		NONE

We offer a straightforward pricing model for our standard engagements -- fixed fee per transaction

Confidential, not for distribution

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Case studies

Salary loan for private sector employees

Uploan identifies clients, via a relationship with employers

Loan repayments are managed by Uploan

Loan is initially booked by Uploan, passed to Netbank via an assignment of receivables

Loans for motorbikes, 3-wheelers

GMS identifies clients, implements a tool within the motorbike to track in case of non-payment

Loan repayments are managed through Dragonpay

Loan booked by Netbank directly

Uploan

Franchise loans, originated by Blend.ph

Agreement with Franchise operator in case of default

Blend.ph identifies clients, manages loan repayments

Loan booked by Netbank directly

Confidential, not for distribution

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STEPS IN ONBOARDING

Needs

Assessment

Initial meeting to assess:

Current payout process and service provider
Current pain points or points for improvement on:

Sending transactions
Checking transaction status
Reconciliation

Current/Target

Current/Target User Base and Volume
Nature and volume of transactions

Preferred integration and operational setup
Licenses and Compliance requirements
Other applicable Netbank Services

Finalize Terms

Final Solution Scope
Commercial Terms
Legal Agreement/s
SLAs

Sandbox and Development

Get Sandbox and UAT Credentials

Develop and test the integration to Netbank Services

APIs
Partner Dashboard
Other tools

Risk and Operational Review

KYC and Enhanced Due Diligence Process
Transaction monitoring and reporting
Support and Escalation Process
Other operational processes (e.g. Funding the account)

Pre-Prod Checklist

UAT and QA Testing + Sign Off
Completion of Legal Agreements and Risk Review
Final Billing Setup
Pilot Plan
Proper cascade and training to support units

Go-Live

Open a Netbank Corporate Bank Account as a Settlement Account
Request for PROD Access

APIs/File Upload
Partner Dashboard

Get PROD Credentials
Pilot transaction

Confidential, not for distribution

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WHY NETBANK?

CRITICAL SUCCESS FACTOR

Simple and Direct Connection to Payment Rails

As a fully regulated bank with direct connection to the National Retail Payment System (NRPS), we have

direct integration to the Automated Clearing Houses as a direct participant (less integration points/jumps = less points of failure).
direct access to the ACH support lines (less escalation points, less dependencies, more efficient in issue resolution and transaction reconciliation).
multiple available integration options (via open APIs, File Upload Platform, or White-Labeled Mobile App).

Close Solutioning and

Success Support

We have a group of local specialists that will closely listen and work with you to understand all the possible enhancement points of your business and operations to build a solution that covers your needs.
We have a support team dedicated to this service + an accessible ticketing system to ensure quick response and resolution times to inquiries and issues.

NETBANK CAPABILITIES

Fast and Straightforward Onboarding Process

Open APIs and a Sandbox environment to allow you to simulate, test, and check how the solution could fit into the your system and processes.
Openly-accessible documentation to allow both business and technical audiences to understand how each of our product works.
A straightforward sales and onboarding process designed for a faster go-to-market approach.

Reliable service and

Transaction Reconciliation Tools

Standardized response codes from our APIs accompanied a Partner Dashboard that allows you to monitor and track payout transactions.
We can set up a credit notification webhook so we could push transaction status updates to your system for an automated reconciliation process.

Simple Commercials

Fixed Fee per transaction
No other fees (Setup fee, Monthly Fee, Minimum Invoice, etc.)

Confidential, not for distribution

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NEXT STEPS

Agree on the final scope of the solution
Confirm and Sign the Commercial Proposal
Sign up to Netbank Virtual
Review the Disburse-To-Account API documentation and test it in Sandbox

CLIENT ACTIONS

Agree on the final scope of the solution
Send NDA (if necessary)
Send the Commercial Proposal (with the scope of the solution)

NETBANK ACTIONS

Confidential, not for distribution

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POINT-OF-CONTACT

please contact/send an email to:

Vince Roldan�Head, Local Payment Co Segment

vr@netbank.ph

Amiel Velasco

Customer Success Manager - Onboarding

dp@netbank.ph

Ria Paguiligan

Customer Success Manager - Post-Implem

rp@netbank.ph

To find out more,

Visit the following pages:

Netbank Virtual Website�https://virtual.netbank.ph

Disburse-To-Account Product Details�https://virtual.netbank.ph/business-disburse-to-account

Disburse-To-Account API Documentation�https://virtual.netbank.ph/business-disburse-to-account

Netbank Virtual Get Started Page�https://virtual.netbank.ph/get-started

Disburse-To-Account Video Presentation�https://virtual.netbank.ph/get-started

Confidential, not for distribution