Development of synergies with key stakeholders, including the post, for efficient and reliable global payments

1. Development of synergies with key stakeholders, including the post, for efficient and reliable global payments

2. Agenda • About Eurogiro • The remittance market • First to last mile • Collaboration is key • Conclusion

3. What Eurogiro is • A community of banks, postal organisations and financial service providers, co-operating on international payments – established in 1989. • Global network for electronic exchange of low-value payments between members. • A gateway providing connectivity to other financial service alliance partners.

4. 61 connections in 48 countries Albania - Posta Shqiptaresh.a. Australia - ANZ Bank Austria - BAWAG P.S.K.* Belgium - La Poste SA - De Post NV* Bosnia/Herzegovina - Nova Banka Brazil - EmpresaBrasileira de Correios e Telégrafos – ECT - CaixaEconômica Federal Bulgaria - Bulgarian Posts - Finance Engineering Canada - National Bank of Canada Cape Verde - Cape Verde Post China - Postal Savings Bank of China Croatia - Croatia Post Czech Republic - CSOB Morocco - BanqueCentralePopulaire - Barid Al Maghrib Mongolia - XacBank New Zealand - ANZ National Bank Philippines - Philippine Postal Corporation - Land Bank of the Philippines Poland - PocztaPolska SA Portugal - CTT Correios de Portugal* Rep of Korea - Korea Post Romania - Bancpost - Posta Romana Senegal - Postefinances Serbia - Postal Savings Bank Slovakia - - Postova Banka Slovenia - Postna Banka Slovenije Denmark - Sydbank France - La BanquePostale* Germany - Deutsche Postbank* Greece - EFG EurobankErgasias - Hellenic Post Hungary - Magyar Posta India - India Post Ireland - An Post* Israel - Israel Postal Company Italy - PosteItaliane* - BancaPopolarediSondrio Japan - Japan Post Bank Co., Ltd. Latvia - Latvia Post Luxembourg - EPT Luxembourg* Madagascar - Paositra Malagasy Spain - BBVA - Correos Sri Lanka - National Savings Bank Sri Lanka Switzerland - PostFinance/Swiss Post* Thailand - Bangkok Bank - Thailand Post Co Togo - Societe des Postes du Togo Turkey - Turkish Post Tunisia - La PosteTunisienne Ukraine - Ukraine Post UK -Citibank N.A. - Envoy Services Limited USA - Deutsche Bank * - Standard Chartered Bank - Dirham Express - Trans Fast Remittance Vietnam - Vietnam Post * Shareholder

5. Why has Eurogiro been successful? • Exclusive and focused co-operation • Global cross border solution for ordinary payments through posts and banks, both cash and credits • Focus on low value payments for corporate, retail and institutional customers • All common payment products such as cash, credit, Cash On Delivery, pension, etc. • Compliance with EU and International directives • Strictly adhering to the compliance standards for carriers of financial transactions • Fixed time schedules for all products • Focus on standardisation and quality (STP 95-98%) • Strong alliance partners • Sub-contracting • downwards to network provider, software developer and other professional providers. • upwards in development aided by members

6. One agreement - Multiple Payment partners Price Information Billboard Products & Settlement providers KYC - document sharing Test Certificate Network Solutions The Eurogiro MLF Solution

7. Eurogiro products and services • Products • Payment transfers • standard (max. 4 days) and urgent • to accounts with members • to accounts with 3rd banks • Money orders • standard • Eurogiro Cash International, semi urgent cash • Western Union urgent cash • Bulk and pension payments • Cash on delivery (COD)

8. Eurogiro Cash International- The ECI® Key features: • Cheap, Easy and Reliable Workers Remittance Product • 2 day ‘OUR’ product. • In-paying customer informs beneficiary • Out-payment in any Eurogiro ECI® member office • Possibility of informing receiver and sender through SMS service. • Currencies: Any currency possible • Remuneration: • MLF pricing or to be agreed upon bilaterally • Transactions can be tracked and traced

9. Eurogiro products and services – next to payments • Services • Turn-key installation & training • Connectivity Certificate • A central testing facility for initial testing of the connectivity and the exchange of Eurogiro message transfers • SMS services • ECI SMS notify • Notifying sender and receiver of Eurogiro Cash International®transaction status • SMS Messaging Service • KYC data sharing service (for MLF participants only) • Regular member meetings (Eurogiro Community Meeting, Technical User Group Meeting, Bilateral status meetings with Eurogiro) • Handbooks and up-dated member information • Quality tests • Settlement solutions • ESSP – USSP - MCSSP

10. Eurogiro Provides Interoperability One system connectivity Flexibility and Control Relevant payment products for your market Members Alliances Low value payments / Remittance Products Geographical Reach Connectivity

11. Incoming remittances in Africa and Middle East US$ billions Source: Worldbank Migration and Remittances Factbook 2011

12. Something to consider • Information from Worldbank • Remittances in Africa are among the most expensive in the world. In some corridors the fee is close to 25% if you e.g. send 200 US$ • A 5% decline in the fee would mean up to 16 bn US$ more to the recipients globally • There is a high percentage of remittances which are informal and not registered • The global market for remittances in 2010 is estimated to reach 440 bn US$ • In some countries the value of remittances are more than 25% of GDP

13. “First to Last Mile” for Remittances First Mile IntermediaryMile Last Mile Remitter Access Intermediary Operators Beneficiary Access The recipient of remittance collects funds The migrant worker decides how much to remit and method of payment Service providers for payment messaging and financial settlement between the Receiving and Sending institutions Access: Teller Agent ATM E-banking Mobile phone Access: Teller Agent ATM Bank account Card account Mobile phone

14. “First mile” issues for remittance services First Mile • First Mile issues • Access for immigrants to remittances and banking in traditional financial institutions • Access to cash services • Informal market • No interoperability = no business case and no level playing field for banks in developed world Remitter Access The migrant worker decides how much to remit and method of payment Access: Teller Agent ATM E-banking Mobile phone

15. “Intermediary Mile” issues for remittance services IntermediaryMile • Intermediary Mile Issues • Common brand, product standard, interoperability • Lack of simple infrastructures (systems, settlement, compliance) Intermediary Operators Service providers for payment messaging and financial settlement between the Receiving and Sending institutions

16. “Last Mile” issues for remittance services Last Mile • Last Mile issues • Access to financial services (accounts/cards) • Access in rural areas • Service, quality, funds, compliance, licensing • Access to cash services • Common brand, product and interoperability Beneficiary Access The recipient of remittance collects funds Access: Teller Agent ATM Bank account Card account Mobile phone

17. “First to Last Mile” for Remittances First Mile IntermediaryMile Last Mile Remitter Access Intermediary Operators Beneficiary Access The recipient of remittance collects funds The migrant worker decides how much to remit and method of payment Service providers for payment messaging and financial settlement between the Receiving and Sending institutions Access: Teller Agent ATM E-banking Mobile phone Access: Teller Agent ATM Bank account Card account Mobile phone • Financial Inclusion • Remittances as lead product to [re-] build access

18. The case for the Postal organisations • More than 600,000 outlets worldwide • Access in rural areas • Serving the ordinary customer and open for immigrants • Handling basic remittance instruments such as cash • Providing tools for financial inclusion (accounts, savings, cards etc.) • Successful track record in many areas • Global organisations (WSBI, UPU, Eurogiro etc) • Basic products, services and connectivity exist

19. Functionality Value Added Postal Services Virtual Mobile Operator (VMO) Mortgages/SME Loans/Insurance Investment Funds Debit/Credit Cards (possibly micro loans) International Remittances Current Accounts/Payroll Services/Internet Access Savings Accounts Current situation/Cash Transactions at Post Counter Time / Product Life Cycle Post Offices can gradually serve the needs of financial inclusion Key features Institutional: Partnership with the private and financial sector Distribution Multichannel, with direct marketing Products Full range of standard products Customers: For all; focus on domestic consumers, SMEs and utilities / employers

20. Collaboration is key • Working together in a community • Postal organisations, commercial banks and other financial institutions working together have the opportunity to serve the market bringing value to themselves and their customers • Work together in delivering reliable, high quality transactions during a common network • Influence through the community • Common platform for enabling new technology and taking advantage of existing • Enabling financial inclusion to the people of Africa • Selling own products and services is a good supplement to being an agent

21. Conclusion • One solution does not necessarily fit all • The postal organisations around the world has a unique opportunity to play a major role in delivering efficient and reliable global payments • Through collaboration with other financial institutions in a community  Service offering to customers will be even stronger • Efficiency, reliability, quality and influence leads to better services and higher revenue

22. … Questions ? ? Henrik Rasmussen Senior Relationship Manager Eurogiro A/S Telegade 1 2630 Taastrup, Denmark Tel: +45 4331 1252 Fax: +45 4371 2662 Email: henrik.rasmussen@eurogiro.com Web: www.eurogiro.com