1. Benchmarking global remittances
The future of money transfers
Mobile banking & payments for emerging
Asia Summit 2012
Bali, Indonesia
October 2012

2. About BICS 22.4%
57.6% 20%
HQ in Brussels with offices
in Bern, Dubai, Singapore
and New York
more than 700 customers
incl. over 400 mobile data customers
world leader in mobile data services
top 4 voice carrier with over 27 bio minutes
1.6 bio euro revenues
400+ employees
bics confidential | September 2012

3. Agenda
The market evolution on Mobile Money
Role of Mobile in Mobile Remittances
- An Asia Perspective
Complexities worldwide
Solving issues
Creating a worldwide ecosystem
slide 3 | BICS confidential | 12 October 2012

4. The emergence of a new
market
129 live mobile money deployments around the globe today,
with another 91 planned
Buyster, Mobipay,
Payforit, Paybox, Etc..
…
ISIS GCash
… Smart Padala
Felica
…
MPesa
Wizzit
Source: GSMA Analysis
…
Mobile Payment in developed countries and developing countries – different story
slide 4 | BICS confidential | 12 October 2012

5. The Remittance market
Remittance flows to emerging markets continues to be a story of growth
2013
USD 404 billion
2010
USD 325 billion
Source: World Bank
slide 5 | BICS confidential | 12 October 2012

6. Inward Remittance flow
into Asia
In Bio US$
70
60
2010 2011
50
40
30
20
10
0
Source: World Bank Data 2012
slide 6 | BICS confidential | 12 October 2012

7. Remittance outflow
from Asia
In Bio US$
12
11
10
9
2010 2011
8
7
6
5
4
3
2
1
0
Source: World Bank Data 2012
slide 7 | BICS confidential | 12 October 2012

8. The mobile remittance
market
Over US$ 65 Bio in mobile transfers are anticipated in 2014
Over Up to
TODAY
Up to 13% of
2014
2015
75% of the 15% of
formal
planet has formal
remittances
access to a remittances
mobile
mobile mobile
Mobile
technology is
disrupting
Transferring Generating
traditional
USD 65 Bio USD 6.2 Bio
models, which
per annum in commissions
rely on fixed
infrastructure &
agent networks
Source: World Bank 2011, Juniper Research 2011, Berg Insight
slide 8 | BICS confidential | 12 October 2012

9. Are we ready for mobile
based payments
Mobile readiness index
1 Singapore 45,5 18 Columbia 32,4
2 Canada 42,0 19 Germany 31,6
3 United States 41,5 20 Thailand 31,8
4 Kenya 40,4 21 India 31,5 Key factors:
5 South Korea 39,7 22 Nigeria 31,3
• Consumer demand
39,5 31,2
6 Japan 23 France
• Market infrastructure
United Arab Emirates 37,5 Egypt 30,2
7 24
• Financial services
8 Saudi Arabia 37,5 25 Vietnam 30,1
37,5 20,1
• Regulatory
9 United Kingdom 26 South Africa
38,5 28,8
landscape
10 China 27 Turkey
11 Taiwan 38,1 28,5 • Digital commerce
28 Russia
12 Australia 36,3 29 Poland 27,9 enablement
13 Philippines 34,7 30 Mexico 27,7
14 Malaysia 34,3 31 Hungary 27,0
15 Hong Kong 33,7 32 Italy 25,5
16 Brazil 33,4 33 Indonesia 22,4
17 New Zealand 32,7 34 Argentina 24,0
Source: MasterCard International – Mobile Payments Readiness Index
slide 9 | BICS confidential | 12 October 2012

10. The complexities of
the ecosystem
To move to a truly open ecosystem of tomorrow requires a coordinated
effort by all participants involved
MTOs Banks
Regulators
Receiving PSPs
Cash-out agents
Cash-in agents
Sending PSPs
Open money transfer ecosystem
slide 10 | BICS confidential | 12 October 2012

11. From competition
to cooperation
Moving from closed networks to interoperable ecosystems
Yesterday Today
Few dominant and Open Ecosystem Model
competitive players
• Proprietary networks • Interoperability between
• Few dominant brands industry networks
• No interoperability • Collaboration between banks,
MNOs and MTOs to reach the
receiver
slide 11 | BICS confidential | 12 October 2012

12. From bilateral to
hub model
Bilateral models in ecosystems with hundreds of players across differing
industries are simply not scalable
Bilateral Model Hub Model
• Separate commercials • Single commercial relationship
• Multiple technical interfaces • Single technical interface
• Many settlement counterparties • Single settlement counterparty
slide 12 | BICS confidential | 12 October 2012

13. Need for a Hub
Standardized integration, National/International connectivity
Internet/Mobile
Branches Banking
Banks Utility
ATMs
Companies
Value Added
Services
Other Value Added
MNO 1 Hub MNO 2 Hub Services
Cash-in
Merchants /out
MNO – Mobile Network Operator
MTO – Money Transfer Organisation Agents
PSP – Payment Service Provider
slide 13 | BICS confidential | 12 October 2012

14. Introducing
• Global hubbing service enabling P2P cross-border transfers & airtime, from/to
various sources (mWallet, eWallet, bank account, cash-in/out agents…)
• Open and neutral intermediary between various participants in the ecosystem:
MNOs, MTOs, banks, PSPs… › gateway between mobile and financial industry
• Single technical and commercial interface › one time setup to reach the world
• Fully compatible with any m-Wallet system and bearer
• Secured connectivity through BICS IP Exchange network or through IPSEC
• Smooth and fast integration through published APIs
• Regulatory compliancy
Branches e-wallet Shops
providers
Internet/mobile Banks MNOs Distributors
banking
endorsed
ATMs
MTOs PSPs
Other
Agents hubs Merchants
slide 14 | BICS confidential | 12 October 2012

15. Beyond remittance
Domestic interoperability will drive user uptake and revenue growth
Larger Increased
Growing Reach critical mass
addressable number of
transactions revenues and network effects!
market
‘’ The mobile industry can learn from the introduction of SMS
interoperability …
… within seven months of interoperability being allowed there was a
350% increase in messaging traffic ’’ (Ovum, 2011)
slide 15 | BICS confidential | 12 October 2012

16. The Qtel Remittance
service
Solving interoperability in practice
Regulatory AML
compliance monitoring
Hub-to-Hub
peering
Remittance
hubbing
slide 16 | BICS confidential | 12 October 2012

17. The open network effect
HomeSend’s current and anticipated coverage extends to over 24 countries
UK Belgium
EU • MvNO • PSP Netherlands
Nepal • MvNO • iMTO’s • MNO’s • MTO Spain
• MNO • MTO • MTO
• Bank • MNO Liberia
Canada • MNO
• iMTO
USA Russia
• Banks • Bank
Italy Qatar
• MvNO • MNOs
• Bank
Morocco Nigeria
• MNO • MNO
• Bank • Bank’s
Ghana Malaysia
• MNO • MTO
• MVNO
Kenya Indonesia
• MNO
• MNO
Rwanda Pakistan
• MNO • Bank
China India
• PSP
Australia • Bank
Philippines Bangladesh MTO
•
• MNOs
Vietnam • MNO
• MNO
slide 17 | BICS confidential | 12 October 2012
• Bank

18. Conclusion
• Take up micro-payments promising
in developed markets
• For emerging markets remittances
are key
• The market is fragmented and
complex Terima
• Solving complexity and Kasih !
interoperability is key
• Your support is sought to widen
the WW ecosystem via HomeSend
slide 18 | BICS confidential | 12 October 2012

19. Questions ?
Frédéric Schepens www.homesend.com
frederic.schepens@bics.com www.bics.com
+32 475 349401 www.pingping.be
bics confidential | September 2012