Making Cents 2012 Global Youth Economic Opportunities Conference September 2012

1. 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 Making Cents 2012 Global Youth Economic Opportunities Conference September 2012

2. Clients are increasingly seeing ADC solutions not as a new business but as critical addition to their existing business • 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.

3. Across SBI’s projects, the youth market IS the market in many of our geographies • 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: • Population • 150 million • 112 out of 135 • Human Poverty Index • 0-14 years: 34.6%, 15-64 years: 61.4%, 65+: 4% • Age Breakdown • Bangladesh Key Statistics • Population living abroad • 5.6 million • % Population under 30 • 65% • Literacy rate (age 15+) • males 53.9%, females 43.1%

4. bKash has been successful because its products appeal to an increasingly young and technologically savvy population • 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 • The “youth bulge” presents serious political, social and economic pressures, placing a significant burden on employment opportunities for the young and under-educated • Education is a top priority for those who can afford it • One of bKash’s target markets is students who live away from home • Youth-oriented products must target both the youth themselves and older generations • Focused marketing and well designed products are critical • First year results • Nearly 500,000 active users • Network of 10,000 agents