Media Release by the Banking Association 18 May 2005 The Mzansi Account 1 Million Account-holders in Seven Months South Africa’s Banking Industry Makes Significant Inroads to Provide Access to Unbanked Population Media Release by the Banking Association 18 May 2005 14/11/2018 Vers1.2

Agenda Actively meeting Charter Objectives for Access to First-order Banking Services International comparison: % Unbanked Data profile Performance Highlights Product Performance Profile of Mzansi Account-holders & Usage Impact on existing business Account Performance: Conclusion Next Phases Contact Persons

Actively Meeting Charter Commitments The Banking Industry is elated to announce that in early May 1 million Mzansi Accounts had been opened; Seven months after launched in October 2004 While we understand that even 1 million Mzansi Account-holders is just a start in the grand scheme of Charter objectives; It is a great start for ensuring there is access to first-order banking for all South Africans

Actively Meeting Charter Commitments/2 The current trends and account dynamics are largely consistent with those presented at the half-million threshold in February: Similar market demand, circa 6,000 accounts per day; Similar contributions from each of the participants; Similar proportions of new clients for each participant; and Gender ratios consistent Macro-objective: increase the ratio of banked/ unbanked from its odd-49% in 2004 to credible level Recognition to Community, Labour & Government for their support in this achievement

Where is RSA in “Pecking Order” % Unbanked India 80% Egypt 77% Poland 70% Mexico 65% SOUTH AFRICA 54% (48% - 15 May 2005) Argentina 51% Malaysia 45% Ireland 37% Australia 15% Canada 15% USA 12% UK 09% Germany 02% Source: VISA International & Global Insights, 2004 data (Slightly dissimilar to FMT data, but offers international comparisons)

Where is RSA in “Pecking Order” % Unbanked/2 In past seven months an additional 4 percentage points (8%) of RSA population banked (via Mzansi Account): [Excludes: All other products from all banks and PostBank] Places RSA at same level as Argentina and a step away from Malaysia and then Ireland

Data Profile Data is aggregated for the participant group No data provided at individual participant level Each bank & PostBank will provide their data as they see fit

Performance Highlights Accounts opened 15 Nov ’04: 100 000 13 Dec ’04: 250 000 31 Jan ’05: 510,150 1 000 000 account-holders on 3 May 2005 Circa 6 000 accounts being opened daily Gender split: Majority female Provincial distribution: 50% between Gauteng & KZN New clients: 90% new to their particular institution Average balance size: R 325 In past 30 days: Deposits: almost 38% made a deposit Withdrawals: 45% made a withdrawal POS transactions: 1.4%

Product Performance and Client Profiles

Rate of Account Opening @ 3 May industry had 1 million Mzansi Account-holders On average 6,500 accounts per business day Best month February Decreasing trend (but still opening > 6,000 accounts daily) Best day to date: 1 Feb: 9,271 accounts

Institutional Market Share PostBank largest share of 28.2%, ABSA next @ 26.9% History shows that trends subject to competitive campaigning, e.g., single bank has opened on average 2,200 accounts every business day of April

Profile of Mzansi Account- Holders

Profile of Mzansi Account holders Females still represent 54% of Mzansi Account holders Large youth market – almost a third of account holders Females between 25 and 54 represent almost 35% of account-holders 90.4% Black, Coloured 4.7% (up from 2.6% in January)

Provincial Distribution Large concentration in Gauteng (29.8%%) and KwaZulu-Natal (17.5%)

Banked Status & Account usage profile 91.3% of Mzansi Account holders are new to their institutions. No indication of this trend changing On average R 325 held on deposit in each Mzansi Account – this is up from R 280 in January indicating accounts being used more by savers Total balances: R 325m 82.8% of accounts used in last 30 days up from 75.1% end of January 95% of accounts still have positive balances

Transaction volumes Increase in transactions per account holder Withdrawals indicating accounts being used more regularly Deposits decreasing due to take-up stabilising and fewer opening deposits being made POS transactions still relatively low indicating banking needs primarily first order Of concern rate of high transaction fees – 8.6%

Next Phases New features and functions Additional participants to join Progress with finding a minimum standard for a payment mechanism for Mzansi Account Mzansi Money Transfer Product launched in Q3/2005 Additional participants to join

THANK YOU

Contact Information Colin Donian Director: Mzansi Initiative 082-456-7592