ONE NETWORK Citizen and Financial Services

1. ONE NETWORK Citizen and Financial Services

2. OPPORTUNTIES FOR MICRO FINANCE BANKS IN THE NEW CASHLESS ECONOMY

3. SITUATION OVERVIEW • Central Bank of Nigeria has issued licenses to 11 Mobile Money Operators (MMOs) and 12 others are pending. • Commencement of the new National ID System with SIM registration, NUBAN, TIN, new Driver’s License etc. • This has created the need for a Nationwide network of community located network of agents to make these services available to all Nigerians. • It is estimated that agent network requirement is 1 per 3,000 citizens or 50,000 by December 2014. 900 MFBs ( 2000 locations) as a group can play an important role as super agents in the creation of this network of agents for reaching the unbanked.

4. MFB CUSTOMERS AS AGENTS Agents are pre-qualified based on easy accessibility and security of their business location. This cab be compared to trying locate an ATM machine. Each participating neighborhood agent is equipped with at one POS or service terminal that has been configured to access all services providersEach agent location is manned by a trained person with comparable competence to a teller in a MFB banking hall.Agents are like out side bank tellers to the MFB

5. MFBs AS THE SUPER AGENTS Potential agents who are neighborhood businesses and typical MFB customers can be recruited and supervised by the MFBs who will act as their super agents Super agent provides float management, accounts reconciliation and cash liquidity services to between 10 – 30 neighborhood agents around their location. Each super agent location is managed by at least one certified bank teller services supervisor.

6. MFB AS SUPER AGENTS Steps to participation • Setup and operate out of agreed locations • Directly own and operate 1 agent locations • Directly own or supervise 10 additional locations • Engage at least one certified agent supervisor • Sponsor 2 certified service support staff • Provide float support per registered agent .

7. SUPER AGENTS Roles and Responsibilities • Qualifies and Documents neighborhood agent • Provides daily accounts reconciliation services • Ensures system cash liquidity and float adequacy • Maintaining service standards and procedures • Monitors fraudulent activities and ensure safety .

8. SUPER AGENT PARTICIAPTION PROCEDURE

9. Location Owners

10. LOCATION OWNERS Verifiable , Legally registered neighborhood based businesses or organizations. • Market shops , Shopping complex • Supermarkets ,Stores and provision shops • Restaurants, Salons ,Petrol Stations • Vendors ,kiosks,Cybercafes, Business centers, • Churches,Mosque , Town Hallss

11. LOCATION AGENT SERVICES

12. LOCATION OWNERS Location owners will be required to • Submit application through a super agent • Provide accessible & secure neighborhood location • Pass a security background check • Provide business documentation and KYC details • Sponsor 1 or more certified location agent • Own a service terminal with backup link and power • Agree to strictly adhere to CBN and other guidelines • Display branded materials and support numbers

13. LOCATION AGENT PARTICIAPTION PROCEDURE

14. Location Agents

15. NEIGHBOURHOOD AGENTS Legal residents of communities with basic education and certified financial service skills • Computer literate,Secondary School Leavers • Financial Institution Graduates • Trained and Certified Outside Bank Tellers Neighborhood or field agents are required to • Sponsored by a super agent or service provider • Bank Teller and Customer Service Certification test • Basic computer appreciation test • Pass an individual security background check

16. STEPS TO PARTICIPATION Premises Owner Collects location approval form: Super Agent visits location and determines suitability based on CBN guidelines. Approved Location deposits for Setup and Training: Professional training , staff verification and certification conducted for Location owner's sponsored agent. Location equipment is provided: Installation and integration with network is effected. Procedural documents and branding materials are made available. Listing of Location: Location address is submitted to One Network Service providers. Business Commences at Agent Location.

17. AGENT LOCATION INCOME ASSUMPTIONS OPERATES LIKE A FINCIAL AND CITIZEN SERVICE SUPERMARKET OR MINI BANK BRANCH FOR THEIR NEIGHBORHOOD OF 3,000 OR MORE. Typical N40 per transaction 1 transaction per person monthly – N120,000 e.g NEPA BILLS, STARTIMES , MONEY TRANSFER 1 Terminal - 12 Transactions/ hour or 96/ 8 hour day N3,840/system daily. Value added – ??? daily Overheads – Teller Salary – 30k, Network Support – 15k 6 – 12 month return on investment per location

18. SUPER AGENT INCOME POSSIBILITIES Super Agent with 10 locations • Transaction fees - 24,000 Month/N10 - 240k Monthly . Float Turnover and Management ? N500k/day , N12M/ Mnth. • Value Added or Premium Services? • Finance product extension and services

19. OPPORTUNITIES FOR MFBs

20. SITUATION OVERVIEW 17 Million Bank Account Holders HAVE 3,000 BANK BRANCHES 6,000 ATM MACHINES 150 Million Citizens NEED 2,000 MFB BRANCHES 50,000 HUMAN ATM LOCATIONS

21. OPPORTUNITIES FOR MFBs Why should A Microfinance bank become a super agent: The same reason banks invested in ATM's Machines. - Manage the daily float deposits of their agents - Use the MMOs and agent locations as channels to sell products and services to the public - Share from the transaction fees of their agent locations such as mobile money services , bill payments , Tax, etc

22. OPPORTUNITIES FOR MFBs • As Super Managers, a Microfinance bank can: • Earn income from training and supporting their agents • Provide Financing products for agent location set up • Access financial inclusion and developmental funds

23. SUMMARY COMMENTS QUESTIONS ADVICE THANK YOU