Money Transfer & Remittance Re-engineering your Self-Service Channels

2 About CR2 ► CR2 is a leading provider of multichannel banking solutions including Internet, SMS, ATM, Kiosk, IVR, Branch ► 25+ years of experience ► Offices & Representatives in Dublin, Dubai, Singapore, Perth, Amman, Johannesburg, Bangalore, Riga, Moscow ► 130 staff ► Over 100 banks in 60 countries across 4 continents

3 CR2 solutions used in 60 countries across 4 continents Installations CR2 Offices

4 CR2 CUSTOMERS ► MIDDLE EAST ► AFRICA ► EUROPE & FSU ► CORPORATES ► Africa ► Asia & Pacific ► Middle East

CR2 - supplier of mission critical secure self service solutions to financial Institutions globally SME Consumer Corporate P2P Remittances Sales Cash-in Payment Advanced services Marketing P2P Remittances Call center Teller CSR Branch sales SME Corporate Delegate Personal banker Retail consumer P2P Remittances Payments Sales Cash in / cash out Advanced services Marketing P2P Remittances SMS WAP P2P Remittances One channel, multiple devices 5 May 20105

6 Remittances Market

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► UN estimates 190 millions immigrants send money back home ► Global Remittance flows are expected to increase ► by 6.2% in 2011 ► by 8.1% in 2012, to reach $ 374 billion ► Ukraine remittance flow: ► $4.7bn in 2009, almost 5 per cent of the country's GDP ► Increase of 2-3 % in 2010, expected to be more in

Challenges for the consumer ► Many people still keep cash under the mattress ► Cost & type of transfers varies: ► Domestic ► International ► Difficulty to understand all the means of transferring funds: ► Cash at branches ► Card to card: Visa, Mastercard, local cards... ► E-wallet ► ATM to ATM ► Many companies providing these services 9

Challenges for banks ► Regain the trust ► Staking a claim in the remittance and money transfer market to generate new revenues ► Providing money transfer the way customers wants it ► Compete with non-bank players ► Reducing the costs of remittances and transfers ► Difficulty to manage all kind of transfers: Visa, Mastercard, domestic, card to card, web... 10

11 Challenges ► New players are appearing: online or mobile...

Question to the audience Are you currently providing money transfer and remittances services? (Raise your hand) Are you providing these services at the branch ? ?....at the ?....using ?

Does the end of the month looks like this in your branch ? 13

14 Constant Migration of transaction to Self-Service over the years Branch 30% Web 28% Phone 5% Others 2% ATM 28% 2010 Branch 42% Web 18% Phone 5% Others 2% ATM 29% 2005 Branch 70% Web 4% Phone 5% Others 2% ATM 19% 2000 Today, 70 to 90 % of banking transactions happen at the self-service channels depending on the regions

Why remittances and money transfers on self-service? ► People are familiar self-service channels: ATM, Internet and Mobile ► People take control of their finances ► Reduce your costs: Lower cost to serve customers ► Generate Revenue based on transaction fees ► Increase customer satisfaction, quicker than the branch, no queues ► Lead the market through innovative products ► Opportunities to target non-customers 15

AGENDA - Re-engineering your self-service channels ► Self-Service Architecture ► Migrating transactions to the self-service channels ► Personalised payments for remittances ► Money Voucher for domestic transfer ► Person to Person Mobile Payment ► Cardless Acquiring: Western Union... ► Fraud & Risk Prevention 16

Personalised Payment

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Money Voucher

Please Choose an Amount: Set Password for Recipient: You will be charged a $1 fee for this service $ Proceed Good Morning Keith Please choose a service … Fast Cash withdrawal Bill Payment Buy a Good Morning Keith Please choose a service … Fast Cash withdrawal Bill Payment Buy a 40 **** Purchasing a Money Voucher at an ATM Keith Thank You Your Cash-O-Gram voucher ID is: Please take your printed receipt and remember your Password Receipt 47929

Receipt Please Choose an Amount: Set Password for Recipient: To notify recipient enter SMS number: You will be charged a $1 fee for this service Proceed $ Good Morning Keith Please choose a service … Fast Cash withdrawal Bill Payment Buy a Good Morning “Keith” Please choose a service … Fast Cash withdrawal Bill Payment Buy a Purchasing a a Money Voucher with notification Keith Thank You The recipient will be notified Your Cash-O-Gram voucher ID is: Please tell the Recipient the Password and take your printed receipt 70 **** Mary Receipt Text Received BackSend You have received a $70 cash-o-gram from Keith. Voucher ID: 19441

Welcome Please Enter Your Card OR Redeem a $70 Thank You You have successfully redeemed your Cash-O-Gram Please take your printed receipt and Cash Receipt Please enter Voucher ID: Enter Password: $ Proceed Redeeming a Money Voucher at the ATM Mary **** Welcome Please Enter Your Card OR Redeem a

Keith Mary Text Received Reply SMS a Money Voucher purchase (and forwarding) Confirm purchase of $40 Cash-O-Gram. Please forward Voucher ID: to Recipient Text Received Reply Bank Cash-O-Gram Acc Your $40 Cash-O-Gram bought at 10:32 on 24/12/08 has the Password: 3349 Person 1 Acc 4 0 Text to Send Back CASHOGRAM 40 Send Text Received BackSend From: Keith Happy Birthday Mary. Got you a Cash-O-Gram for $40. Your Voucher ID is Hi Mary. Your Password for your Cash-O-Gram is 3349 Thanks Keith

Agent Local Store Keith I’d like to buy a $60 Cash-O- Gram please Thank You. Please enter your password on the keypad 6 0 Receipt Your Voucher ID is: Enter Password: $ Proceed **** Thank You You have successfully purchased your Cash-O-Gram Please take your printed receipt and from the Agent Store a Money Voucher at purchase

Redeeming a Money Voucher at a store Agent Local Store Mary I’d like to redeem my $60 Cash-O-Gram please OK, please enter your voucher ID and password Receipt Your Voucher ID is: Enter Password: $ Proceed **** Thank You You have successfully redeemed your Cash-O-Gram Please take your money from the Agent

Person to Person Mobile Payment

P2P - автоматическое открытие счетов Sender Receiver SMS Received Reply CR2 transfered USD on a new account > Send SMS Back Bank EPAY Send SMS Received BackSend CR2 Bank opened a new account for you with USD balance from. Send ‘help’ to to know more Sender’s accountReceiver’s account 2 5 Opening of accounts in real-time

29 TAXI Extensions to the basic system Text Received Reply Text to Send Back EPAY TAXI Send EPAY AccPublic IDPublic NameAcc RefBank RefDate.. 1TAXI1047X Cabs TAXI2912City Taxi - Joe TAXI2913City Taxi - Fred SHOP1078Spar- Meath St. The bank may offer a service to Small business’s to give friendly/standard’ names to services CR2 Bank confirmed transfer of from your account to TAXI1047 (x Cabs). Text Received BackSend CR2 Bank confirms that you have just received a payment of from (Keith Holmes)

Internet Epay Other EPAY channel examples Call Centre EpayATM Epay Customer Epay Payee Amount Epay Payee Amount Customer “Please enter Amount” “Please enter Payee”

Cardless Acquiring

Non customers send money via a remittance company Transfer 100 to my son Transfer 50 to my wife

Receipt The recipient can withdraw the cash at your ATM without a card! That same evening Welcome Mr Viktor Please choose a service Pay Bills Cash withdrawal View Statement Balance Enquiry

Conclusion ► Only a multichannel platform enables the below: ► Provide all kind of transfers using the same technology ► Roll out new products such as remittances and money transfers in a short time ► Migrate low value transactions to the self service channels ► Generate new revenue through fees ► Prevent fraud 34