Consolidation, Settlement, and Reconciliation Microenterprise Access to Banking Services Program Consolidation, Settlement, and Reconciliation RBAP-SMART Money Accreditation Training

Consolidation All or excess Smart Money Account balances of the branches is transferred to the Smart Money Account of Head Office (Cash Loading Mother Wallet) for consolidation of all Smart Money balances and settlement at the end of the day to BDO. Transfer is done wallet-to-wallet. Depending on the Bank’s policy on consolidation of electronic money from Branches to Head Office, it is required that all or excess of Smart Money Branch Account balances of the branches shall be transferred to the Head Office for consolidation of all Smart Money balances and settlement at the end of the day to Banco de Oro (or to any of the settlement banks as agreed by Bank and Smart). There are 2 ways to consolidate Smart Money Balances to Head Office such as Manual (through eWallet-to-eWallet) Balance Transfer and Automatic Balance Transfer through Smart Money Card System.

Wallet to Wallet Cash Loading Mother Account Smart Money MOTHER Accounts Manual sending of funds to Head Office by using a cellphone. Head Office Bank Head Office and Branches must keep logs of amount transferred per branch for references purposes. Wallet to Wallet is the manual sending of funds to Head Office by using a cellphone. Bank Head Office and Branches must keep logs of amount transferred per branch for references purposes. See Annex 5 – Smart Money Inter-Office Fund Transfer Report for more details. The report must include the following important details: • Date and Time • Amount • RRN (Retrieval Reference Number) Branch name (indicate HO in case a fund transfer is intended to the Head Office Mother Account) SMB CLA SMB CLA SMB CLA Branch 1 Branch 2 Branch 3

Los Banos 25 July 2010 Head Office 10,000.00 072509 8:15a 1234567809 Likewise, the branches shall also log each fund transfer to and from Head Office or other branches in the Inter-Office Fund Transfer Report Form. This is found in Annex 5 of your manual. 10,000.00

Los Banos July 25, 2010 1234567852 1234567888 Max Domingo 5299-6789-9098-9876 1,000.00 July 25, 2010 9:30 am 1234567852 Elena Dela Cruz 5299-6789-9098-5009 500.00 July 25, 2010 10:00 am 1234567888 1,000.00 500.00

Head Office 25 July 2010 Los Banos Paete Cadelaria Los Banos Paete 10,000.00 072509 8:15a 1234567809 Paete 10,000.00 072509 8:15a 1234567899 Cadelaria 10,000.00 072509 8:15a 1234567811 Los Banos 9,500.00 072509 3:30p 1234567555 Paete 20,000.00 072509 8:15a 1234567899 Cadelaria The Head Office logs each fund transfer to and from branches in the Inter-Office Fund Transfer Report Form. This is found in Annex 5 of your manual. 15,000.00 072509 8:15a 1234567811 34,500.00 30,000.00

Transfer funds from Cash Loading Account to Encashment Account Head Office Sweep Mother Account Cash Loading Mother Account Transfer of SMART Money Cash Loading Mother Account Balance to SMART Money Sweep Mother Account. Sweep Mother Account will have zero balance after the sweep. Pre-requisite – Enrollment to BDO’s Auto-Sweep Settlement System Facility Upon accreditation of the Bank to offer SMART Money Services, the bank must submit the Letter of Authorization to Smart (see Annex 8 – Letter of Authorization Template – Enrollment to BDO’s Auto-Sweep Settlement System Facility). SMART provisions the nominated account to be enrolled in the Auto-Sweep Facility. Follow Consolidation Procedures This is to consolidate the Smart Money Account balances of the branches to the Head Office before the settlement process (through the Auto-Sweep Facility of BDO) takes place. Transfer of SMART Money Cash Loading Mother Account Balance to SMART Money Encashment Mother Account for settlement Since SMART Money Card System sweeps balances from Smart Money Encashment Mother Account, Bank Head Office has to transfer the amount (Manually) that is to be swept from Cash Loading Mother Account to the Encashment Mother Account before the end of the banking hours. The transfer is a form of preparation before the Smart Money Card System sweep (Automatically) the total balance of the Encashment Mother Account and transfer it to the enrolled BDO CA/SA Account later on

Settlement Head Office Sweep Mother Account Cash Loading Auto-sweep Settlement Account (SA/CA) Cash Loading Mother Account Funds from the Sweep Mother Account are auto-sweeped and credited/transferred to the accredited bank’s enrolled BDO CA/SA. Rural bank be enrolled with with BDO’s Auto-Sweep Settlement and enroll in the Auto-Sweep System Facility. Pre-requisite – Enrollment to BDO’s Auto-Sweep Settlement System Facility Upon accreditation of the Bank to offer SMART Money Services, the bank must submit the Letter of Authorization to Smart (see Annex 8 – Letter of Authorization Template – Enrollment to BDO’s Auto-Sweep Settlement System Facility). SMART provisions the nominated account to be enrolled in the Auto-Sweep Facility. Follow Consolidation Procedures This is to consolidate the Smart Money Account balances of the branches to the Head Office before the settlement process (through the Auto-Sweep Facility of BDO) takes place. Transfer of SMART Money Cash Loading Mother Account Balance to SMART Money Encashment Mother Account for settlement Since SMART Money Card System sweeps balances from Smart Money Encashment Mother Account, Bank Head Office has to transfer the amount (Manually) that is to be swept from Cash Loading Mother Account to the Encashment Mother Account before the end of the banking hours. The transfer is a form of preparation before the Smart Money Card System sweep (Automatically) the total balance of the Encashment Mother Account and transfer it to the enrolled BDO CA/SA Account later on

RECONCILIATION

Reconciliation (Client Level) For any discrepancy regarding balances of Smart Money Account of the Account Holder (Client), Bank must advise the Account Holder to call Smart Money Hotline 15177 (Toll Free) from his mobile phone to know every transaction details. Bank may check transactions as evidenced by Smart Money Acknowledgement Receipt, Smart Money Transaction Confirmation Receipt and Official Receipt. The transaction details from the receipts including pre-fund and transaction request forms must be compared with the transactions logged in the Client Transaction Report and Inter-Office Transaction Report. Bank may also Balances and Transactions using Transaction Logs (such as Client Transaction Report and Inter-Office Fund Transaction Report) against Statement of Account that is provided by Smart Communications to the Bank on a per account basis. Bank may also call Smart Money Settlement Support (please see contact details in Chapter 7- Smart Money Hotlines and After Sales Support) for concerns regarding balances.

Reconciliation (Bank Level) The following must be compared with the transactions logged in the Client Transaction Report and Inter-Office Transaction Report: Smart Money Acknowledgement Receipt Smart Money Transaction Confirmation Receipt Official Receipt Pre-fund Transaction Request Forms Bank may check transactions as evidenced by Smart Money Acknowledgement Receipt, Smart Money Transaction Confirmation Receipt and Official Receipt. The transaction details from the receipts including pre-fund and transaction request forms must be compared with the transactions logged in the Client Transaction Report and Inter-Office Transaction Report. Bank may also Balances and Transactions using Transaction Logs (such as Client Transaction Report and Inter-Office Fund Transaction Report) against Statement of Account that is provided by Smart Communications to the Bank on a per account basis. Bank may also call Smart Money Settlement Support (please see contact details in Chapter 7- Smart Money Hotlines and After Sales Support) for concerns regarding balances.

Reconciliation (Bank Level) Bank may also check the Balances and Transactions using Transaction Logs (such as Client Transaction Report and Inter-Office Fund Transaction Report) against Statement of Account that is provided by Smart Communications to the Bank on a per account basis. Bank may also call Smart Money Settlement Support for concerns regarding balances. The Smart Money Portal is another tool that Smart Money partners can use to validate and reconcile daily transactions. Bank may check transactions as evidenced by Smart Money Acknowledgement Receipt, Smart Money Transaction Confirmation Receipt and Official Receipt. The transaction details from the receipts including pre-fund and transaction request forms must be compared with the transactions logged in the Client Transaction Report and Inter-Office Transaction Report. Bank may also Balances and Transactions using Transaction Logs (such as Client Transaction Report and Inter-Office Fund Transaction Report) against Statement of Account that is provided by Smart Communications to the Bank on a per account basis. Bank may also call Smart Money Settlement Support (please see contact details in Chapter 7- Smart Money Hotlines and After Sales Support) for concerns regarding balances.

Smart Money Portal

What is Smart Money Portal? Web-based frontend tool for Smart Money trade partners (can be accessed using a web browser and internet connection) Supports generation of transaction reports (for Phase 1) and will eventually support financial transactions such as disbursement (Phase 2)

What transactions are currently supported? Reports Generation Daily Transaction Summary Reports MIMOs (Networked Fulfillment Centers) MFIs (Lending) Smart Money Accounts assigned to the Client will be the basis for reports generation Reports can be downloaded in .csv or .txt format

How do I avail of this facility? Client should sign an agreement with Smart (e.g. MOA for being a MIMO Center) Client fills out application form and submits to Smart (Account Manager) Smart creates user account and notifies Client regarding the access details No monthly service fee will be charged to the Client

What access levels are available? Client Admin COMPANY Reports Admin BRANCH Branch Admin Branch User SMART Smart Admin INDIVIDUAL Individual User Receiving Account Disbursing Account Branch Account User Account

Log-On Screen

Screenshots

Screenshots

Screenshots

Sample of Generated Report

Notes: The portal can be opened using Internet Explorer or Mozilla Firefox. Currently, reports are made available in the system at 11:00am.

End of Presentation