Company: GDOT
Filing Date: 2025-11-24
Form Type: 425
Source: 0001140361-25-043029
Chunk: 26

Company: GREEN DOT CORP
Filing Date: 2025-11-24
Form: 425
Chunk 26
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 finance currently represents a $230bn+ market opportunity across the small and medium-size business segment, the consumer segment, and the enterprise segment Expanded Distribution of Financial Services Businesses recognize the changes in customer behavior and are building capabilities to deliver financial services via platform partners Regulated Institutions Remain Key While the delivery of financial services is undergoing a fundamental shift, access to the banking system will always require working with regulated financial institutions 2 Source: (1) Federal Reserve Board. (2) Pew Research Center. Green Dot Corporation Ability to Capitalize on Sizable Opportunity Set 13 Current Embedded Finance TAM $230bn+ $115bn Money Processing BaaS $75bn Consumer & Retail $40bn The Long-Term Commercial Arrangement Allows the Pro Forma BankCo to Support and Benefit from a Large, Attractive, and Fast-Growing Market Opportunity 2 ’23A – ’27E Embedded Finance 20% CAGR Source: BCG 2025 Global Payments Report, Company estimates. Green Dot Corporation Sponsor Bank Services Long-Term Commercial Partnership MSA allows combined BankCo to benefit from strong tailwinds of the Embedded Finance OpCo via attractive, recurring fee structure, with efficient access to multiple high-quality deposit partners through one consolidated channel. Embedded Finance OpCo Combined BankCo Deposit Custody BIN Sponsorship Second Line Risk Liquidity Support Business Development Program Mgmt. First Line Risk Technology Infrastructure Volume / Transaction Based Fees ~$30mm+ Annual Fee Income(1) Efficient Deposit Acquisition ~25%+ 7-Year 14 2 Expected CAGR in Sponsor Fees Initial Agreement Term Note: (1) Reflects total MSA-related fees excluding impact of interest sharing arrangements. Green Dot Corporation Illustrative Pro Forma Operating Structure The combined BankCo will be responsible for providing the necessary banking and regulatory infrastructure to enable ultimate product delivery and business development by the Embedded Finance OpCo and future partners. 15 Embedded Finance Co Embedded Finance Co Embedded Finance Co Sponsorship Operations BSA / AML Banking Core Compliance BaaS BIN Card Processors API Layer Sandbox Program Mgmt. Money Movement Compliance / Risk Payments API / SDK by Partner Developed and Managed by Embedded Finance Co End Markets Vertical Software Retail eCommerce FinTech SMBs Health Illustrative BaaS B2B2C Operating Detail End Customers Sponsor Bank Middleware Operations User Interface End Markets 2 Green Dot Corporation Robust Yield Optimization Opportunities Assumed Repositioning of 100% of Securities Into MRQ Cash Yield Assumed Redeployment of 40% of Cash & Securities Into Loans Near-Term 51%