1. Bank Cards and E-payments June 3, 2014

2. Agenda Background e-Payment Initiatives In Conclusion Benefits and Key Focus Areas

3. Agenda Background e-Payment Initiatives In Conclusion Benefits and Key Focus Areas

4. E-Payments Covers large canvas Can change the way we shop, pay bills, travel, conduct business, bank and live E-Payments

5. Development Drives Growth Percentage of Ownership 100 80 60 40 20 0 Electricity (1873) Telephone (1876) Automobile (1886) Television (1926) Radio (1905) VCR (1952) Microwave (1953) 10080604020120 Years Since Introduction PC (1975) Internet (1975) Cell Phone (1983) Source -- Microsoft

6. Explosive growth of e-commerce The explosive growth of e-payment is driven on the sound platform offered by e-payment technologies …!

7. eCommerce – Few examples Fund Transfers Bill Payments Ticketing & Reservation Prepaid card Top-ups Broking Auctions Gaming Live happenings across World !! Shopping Ticketing Bill Payments Fund Transfers Mobile Top-up And more...

8. mCommerce Transaction brokers/ Payment Enablers Act as mBusiness store front ( e.g.: mShopping) Role of Infomediaries Proof Of Purchase Mobile Airline Ticketing Mobile Shopping Mobile Stock Trading Mobile Movie ticketing Third party Mobile Service Providers/ Mobile Operators/ Service Aggregators Banks/ Credit card Companies

9. From payments to e-payments Source: Using the mobile device to identify and pay for services; Jason Andersson; Ericsson AB;2002 April

10. India : Increased Usage of e-Channels @ ICICI Bank Share of transactions in March 2000 Channel 2% Internet 3% ATMs 94% Branches Share of transactions in September 2005 15% 40% 30% Call centre & mobile 15% 1%

11. However.. India remains an overwhelming cash based economy More than 90% PCE made with cash

12. Agenda Background e-Payment Initiatives In Conclusion Benefits and Key Focus Areas

13. Cards

14. Drivers of migrating payments through cards Spend on cards in India is only about 1% of PCE Number of cards has increased from 7 Mn in 2000 to 44 Mn in 2004 (CAGR 55%) Usage up from 2 Bn USD in 2000 to 22 Bn USD in 2004

15. Drivers of migrating payments through cards Innovative Product Proposition backed by Operations & Service Excellence Drivers

16. Innovative Product Proposition Co-branded proposition to drive Loyalty and Incentive to use Co-Branded Cards Example ICICI Bank HPCL Credit Card The largest VISA co-brand in Asia Constitutes a growing proportion of total card issues - 42% in 04 to 45% in 05 Fuel spends 2.5 times more than spends on regular cards

17. Innovative Product Proposition Travel Card Wider acceptability and greater security Multiple currencies and denominations Spends on Travel Cards increasing steadily Travel Card Source Amex and VISA Estimates

18. Debit Card Volume and Spends – Asia Pacific

19. Debit Cards Can revolutionalize electronic payments in India Can be a major catalyst in changing consumer behaviour 70 % of cards in India today are Debit Cards Usage is widening Debit Cards

20. Debit Cards Performance @ICICI Bank Increasing spends on Debit Cards Increasing penetration of Debit Cards Total Spends on Debit Cards increased more than 4.5 times over last two years Spends per Debit Card increased 43% over last two years

21. Emerging Trends in Debit Cards Business Segmentation and service Mechant rewards and loyalty programs Relationship management New innovations in technology e.g. wireless POS New payment forms e.g. contactless, through mobile phones Emerging Trends

22. Remittances/ Money Transfer

23. Card to Card Money Transfer Cards can provide cost effective channel for remittance Value can be loaded from bank account of sender to card of receiver Improves efficiency and accessibility

24. Card based remittance REMITTERBENEFICIARYPRODUCT Internet Credit /Debit Card Card settlement system Prepaid / Debit/ Credit Card Card to Card Transfer ATM Cash

25. Visa Money Transfer - Performance

26. SME Business

27. Use of electronic channels will Increase efficiency Track expenditure Improve productivity SME Business

28. Innovative Product Proposition Credit resides on card Ability to break up limits into constituent parts Convenience – cash-less transactions, multi- application, single cheque repayment Loyalty – attractive rewards points Complete MIS to users Benefits Cashless transaction and credit facilities for closed user group environment Fleet Card

29. Innovative Product Proposition Pre-paid and credit versions Partnership with leading oil companies Working capital requirements of transporters (goods available at oil company outlets) To be extended for multi-applications i.e. toll, spare parts etc. 656812 DriveTrack fleet cards already issued and in use ICICI Bank Fleet Cards

30. Rural / Agri Business

31. Rural and Agricultural Economy Technology and electronic payment systems can be the key drivers to help us reach out to the rural / agri population through cost effective modes of delivery Rural and Agri Business

32. Innovative Product Proposition Low cost payment mode for use in Rural / Agri economy Farmer Card Easy access to credit – enhanced reach through low-cost ATMs & merchant outlets Faster updation & access to repayments – electronic transactions Reduced financing cost – amount utilized when needed Removal of cheque & consequent delays Benefits

33. Innovative Product Proposition Loans to farmers for agricultural use (including inputs ) Limit resides on card Usage Cash withdrawal from ICICI bank ATMs POS usage through ICICI Bank POS only Other services through local bank branches Eg. Loans to tobacco farmers, sugarcane farmers etc Top rural ATM currently handles approx. 350 transactions/day ICICI Bank Kisan Card

34. Government Sector

35. Government Sector – A big potential Procurement/ Purchase Tax Collection (Filing of returns on the net) Distribution of pension on cards Government bills (e-governance) Government Sector

36. Government Sector – A big potential Will make government transactions more transparent Will reduce administrative paperwork Government Sector

37. Internet

38. Evolution of Internet Banking Access to Basic Account Information Transfer from one account to another for same customer within the Bank Transfer to other accounts across the Bank Transfer to other customer accounts with the Bank Other Value Added transactions like Bill Pay, Online Bancassurance

39. ICICIBank.com Online Demand Draft Money Order Online Seamless Billpay Pure Gold Online Bureau De Change Mutual Funds Online Outward Remittance Bancassurance Integration Various Services Offered

40. ICICIBank.com Monthly Users: 6 lakhs Monthly fund transfers : 5 lakhs Monthly Bill payments : 2.33 lakhs Users and transactions Railway Online ticketing – 0.3 Mn tickets online to 3 Mn tickets in 2006

41. Mobile

42. Evolution of Mobile Banking To Pull services ICICI Bank Offerings Account Balance Inquiry Last 3 transactions Cheque Status Inquiry Stop Cheque Request. Cheque Book Request Bill payments Payment due date Reward points for redemption Demat balance enquiry Transaction status Bill Details From Push Services ICICI Bank Offerings Account Debit/Credit - When bank A/c is debited by Rs.5000/- or more,as specified by customer Cheque Bounce intimation Balance above/ below Limit specified by customer Credit card payment due date reminder Approaching credit limit intimation Demat account credited/debited Instruction rejection intimation

43. Mobile Top-up Allows card holders to top up mobile airtime using Credit / Debit card Potential applications: Airline and Railway tickets Bill payments

44. mChq The first mobile-to-mobile payment option between customers & retailers A mobile will now serve as a Secure Point of Sale (POS) terminal and payment mechanism Simple and fully secure transaction since every transaction is pre-approved by the cardholder and digitally signed for, through a PIN number

45. Visa Wave Visa Chip Card Just 1 account for contact chip, contact less and magnetic stripe technology Launched in Malaysia, Korea, Taiwan For use in supermarkets, convenient stores, mega malls, quick-service restaurants

46. Agenda Background e-Payment Initiatives In Conclusion Benefits and Key Focus Areas

47. Benefits Convenience Lower transaction costs Increased operational efficiency Can help reduce the size of informal economy Benefits

48. Key Focus Areas Need to focus on security and transaction authentication for various channels Payer authentication – Verified by VISA and MasterCard SecureCode programs to increase payment security CV2/CVC2 (CVD) Verification to confirm genuineness of cards and legitimacy of account numbers Dual authentication for Internet Banking Security and transaction authentication

49. Key Focus Areas Customer education on benefits and security requirements like password protection etc of each e-payment channel Increased penetration of the channels and devices like mobile phone, Internet, POS etc for increased acceptability and usage Customer education and channel penetration

50. Agenda Background e-Payment Initiatives In Conclusion Benefits and Key Focus Areas

51. In Conclusion Various new channels for e-payments today to complement traditional channels Penetration of e-channels has increased substantially New technology initiatives and platforms provides the ability to drive newer payment channels Customer today is more responsive to adopt newer channels In Conclusion

52. Total number of transactions through e- payments will increase expontentially Need to continue focus on Security of various e-channels Customer Education Penetration of enabling infrastructure to realise true potential of e-payment In Conclusion

53. Thank You