Shekhar Krishnamurthy Emirates NBD Remittance Business

Remittances continues to rise steadily across the world regardless of cycles and led by increasing migration (US$ billion)

GCC remittance corrdiors are top recipients of worldwide migrant remittances (€ billion, 2012e) Source: The migrants market, EFMA 2014

Immigrants have almost doubled from 2010 to Saudi Arabia and United Arab Emirates concentrates ~80% of them Source: Remittance Business in GCC, Oliver Wyman 2016

Immigrants mostly come from India, Bangladesh and Pakistan Source: Remittance Business in GCC, Oliver Wyman 2016

Players in the market believe volumes for remittances business will be impacted by the economic turbulences in the region, but not immediately Source: Remittance Business in GCC, Oliver Wyman 2016

Cost of remittances continue to remain high especially for the smaller tickets, much higher than the targeted 5%

Players in the market believe prices for remittances business will be constant – fintech and electronic channel’s trend may push prices down Source: Remittance Business in GCC, Oliver Wyman 2016

Remittances are typically carried out once a month across nationalities  Overall, about three in four customers remit money at least once a month.  Remittance frequency is relatively higher amongst Pakistanis, Bangladeshis, Sri Lankans and Filipinos. Interestingly, one in five Westerners also claim remitting money two to three times a month or more often  More than one third Arab Expats send money less often than once a month. Frequency of remitting Arab ExpatIndianPakistaniBangladeshiSri LankanFilipinoWesterner Base **5148 Two to three times a month or more Once a month Once in two/ three months Two to three times a year Source: Internal research, Emirates NBD

50% remit AED while 25% remit AED per transaction All figures in %s 50% 25%  About 50% of those surveyed claim they remit between AED 500 and AED 3000 per transaction.  And another 25% between a larger range of AED 3001 to AED 10,000 16% DECLINED TO PROVIDE AMOUNT REMITTED PER TRANSACTION Source: Internal research, Emirates NBD

Preferences for remittances between banks and exchange houses vary by corridor All figures in AED Arab ExpatIndianPakistani Sri Lankan/ Bangladeshi FilipinoWesterner Base: Those who specified Frequency of transaction and average remittance per transaction thro’ bank only 17**345**29**-26** Through Bank in AED Base: Those who specified Frequency of transaction and average remittance per transaction thro’ exchange house only **4214** Through Exchange House in AED  Indians remit higher amounts through exchange houses (to benefit from better exchange rates)  Results indicative (given the low base sizes) that Expat Arabs and Westerners remit higher amounts through banks.. Note: results are directional in most cases as outliers impact the averages significantly Source: Internal research, Emirates NBD

All figures in %s  Nearly 50% claim that remittances are used to meet the needs of immediate family members. And another one in five also remit for personal investment purposes.  Parents are the main beneficiaries of the remittances for a slight majority and as also seen from the reasons for remitting, money is also directed to one’s personal account etc. Retail customers remit mainly for family support…. Source: Internal research, Emirates NBD Mass Retail Customers

 Arab Expats, Indians, Pakistanis and Bangladeshis remit money mostly for their family members financial needs and hence parents and spouse are the main beneficiaries.  On the other hand the Sri Lankans and Westerners are more likely to remit money for financial/ property investment purposes and therefore more likely to be main beneficiaries as well. Parents Self Spouse Children TotalArab ExpatIndianPakistaniBangladeshSri LankaFilipinoWesternerBase: **5148 Immediate family member’s use Personal financial/ property investments Other family member’s use Deposit Schemes Business investments Children’s education …with parents and spouse being main beneficiaries Source: Internal research, Emirates NBD

All figures in %s  More than 50% claim that remittances are used to meet the needs of family members. And another one fourth also remit for personal investment purposes.  However the money is remitted mostly to one’s personal account (47%) or directed to family members (parents, children, spouse). …while affluent customers remit also for investments back home Affluent Customers Source: Internal research, Emirates NBD

 Personal finance/ property investment needs mainly drive remittances for Asian Expats, Westerners and Arab Expats to some extent.  This is followed by the needs of the family members. hence the money is directed to one’s own account or to the family members.  Westerners also fund their retirement plans through remittances. Self (My own account/ joint account) Parents Children Spouse Other relatives Business partner TotalEmiratiArab ExpatsAsian ExpatsWesterner Base: 14925** Immediate family member’s use Personal financial investments/ property investment Other family member’s use Business investments Children’s education Retirement purpose …remitting to own accounts back home Source: Internal research, Emirates NBD Affluent Customers

 Filipinos followed by Sri Lankans most likely to remit money on special occasions. This practice is seen amongst fewer Indians and Westerners.  The main occasions for remitting money include festivals and birthdays of loved ones BASE: Those who remit for special occasions: 201 FESTIVALS60%BIRTHDAYS58% NEW YEAR 20%WEDDINGS17% Base ** % CLAIMING THEY REMIT MONEY ON SPECIAL OCCASIONS Remittances also peak on special occasions especially for some corridors Source: Internal research, Emirates NBD

 Although remittance is from exchange house, the receiving point is ‘a bank’ for more than 60%. This spells an opportunity for us given a bank to bank transfer could ideally be more convenient and safe.  Other options such as transfer to credit card, prepaid card or mobile wallet very low in adoption. Increasingly, funds are sent to bank accounts with cash reducing and card and wallets gaining usage Source: Internal research, Emirates NBD All figures in %s

Remittances Through Exchange Houses 87% remit to single country 13% to more than one country All figures in %s Countries where remittances directed directed DRIVEN PRIMARILY BY RESPONDENT’S COUNTRY OF ORIGIN 13% CITE OTHER COUNTRIES Source: Internal research, Emirates NBD

All figures in %s Countries where remittances directed directed DRIVEN PRIMARILY BY RESPONDENT’S COUNTRY OF ORIGIN 17% CITE OTHER COUNTRIES Remittances Through Banks 85% remit to single country 15% to more than one country Source: Internal research, Emirates NBD

CONVENIENCE SERVICE & SAFETY FINANCIAL BENEFITS Exchange houses are preferred for a variety of factors All figures in %s Source: Internal research, Emirates NBD Exchange 1 Exchange 2

All figures in %s  Small multiple draws appeal mostly Sri Lankans and Pakistanis.  Assured fee waiver preferred by at least two in five Arab Expats.  Westerners on the other hand find appeal in large single prize draws. Arab ExpatIndianPakistaniBangladeshiSri LankanFilipinoWesterner ** Appeal of Promotions Source: Internal research, Emirates NBD

All figures in %s  Shopping rewards/vouchers appeal to at least a third respondents – most preferred by Sri Lankans followed by Pakistanis and Filipinos.  Future discounts appeal to 29% while Air Miles points liked by 23%. Arab ExpatIndianPakistaniBangladeshiSri LankanFilipinoWesterner ** Appeal of Loyalty Programs Source: Internal research, Emirates NBD

Emirates NBD DirectRemit

Transfer funds in 60 seconds free of charge at competitive exchange rates  DirectRemit is Emirates NBD’s flagship retail remittance service offering instant delivery of funds to beneficiary accounts free of charge and at market leading rates.  The service is currently offered to the top 5 corridors – India, Pakistan, Philippines, Srilanka and Egypt.  DirectRemit 2 Mobile enables sending funds to a mobile number  All DirectRemit transfers are subjected to strict compliance controls and regulatory reviews as part of transaction screening to ensure adherence with global payment screening standards.  The service has seen over 6X growth since launch in 2014 and is today the leading bank remittance product from UAE.  As of December 2015, DirectRemit represented ~75% of all individual transfers done by Emirates NBD customers and has started disrupting legacy money transfer services via exchange houses in the UAE, with an estimated 4% market share.

24 Marketing / Launch Campaigns Source: Internal research, Emirates NBD

25 Awards & Recognition DirectRemit was found to be the best way to transfer money by The National, a leading English daily in UAE Source: Internal research, Emirates NBD

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