Making Cents 2012 Global Youth Economic Opportunities Conference September 2012 SBI is dedicated to expanding access to capital, information and services for small & growing businesses, entrepreneurs and households, to catalyze sustainable development and build an inclusive global financial system

© Copyright ShoreBank International Ltd Clients are increasingly seeing ADC solutions not as a new business but as critical addition to their existing business 2 The market is moving beyond the example of mPesa Getting the model right builds a stronger foundation for success rather than being the “first mover” Agents remain a significant cost center for all agent based models Product development is critical However, many solutions under development today don’t seek to revolutionize access to finance, a la m-Pesa, in as much as use the innovations to develop new products and services. NameCountryModelHow does it make money? M-PESAKenyaMNO-led e-money issuer1)Additional revenue per user 2)Reduced ‘churn’ 3)Transactions UBL OmniPakistanBusiness line of a commercial bank with the potential to spin-off its transactional platform 1)Transactions 2)Low cost deposits 3)Reduced branch crowding bKashBangladeshThird-party agent aggregator linking to banks and telcos and offering e-money 1)Transactions 2)Float Private client MexicoNon-Bank financial institutions offering mobile solutions to address competitive challenges 1)Existing products 2)Transactions

© Copyright ShoreBank International Ltd million Population 112 out of 135 Human Poverty Index 0-14 years: 34.6%, years: 61.4%, 65+: 4% Age Breakdown 65% % Population under 30 males 53.9%, females 43.1% Literacy rate (age 15+) 5.6 million Population living abroad Across SBI’s projects, the youth market IS the market in many of our geographies 3  In Romania, SBI’s clients are looking to mobile as a way to reach rural customers while serving an increasingly young and urban population  In Egypt, formal financial sector penetration is less than 10% but mobile penetration is close to 90%. Innovative agent-based solutions are being developed to provide this market with financial services The example of Bangladesh is indicative of the importance of reaching young consumers: Bangladesh Key Statistics

© Copyright ShoreBank International Ltd bKash has been successful because its products appeal to an increasingly young and technologically savvy population o A 2009 survey of 10,000+ families of migrant workers showed that:  82% spent their remittance on books and other learning materials  66% spent it on tuition for their children o The “youth bulge” presents serious political, social and economic pressures, placing a significant burden on employment opportunities for the young and under-educated o Education is a top priority for those who can afford it o One of bKash’s target markets is students who live away from home o Youth-oriented products must target both the youth themselves and older generations o Focused marketing and well designed products are critical First year results Nearly 500,000 active users Network of 10,000 agents