INCLUSIVE MOBILE FINANCIAL SERVICES: ARE BARRIERS COMING DOWN Review of Digicels Mobile Money service in Haiti

Haiti Market snapshot Population – 10.17m (World Bank 12) % of Bank accts – 16% (inclusive of MFI, Credit Union and Bank accts) GDP (nominal, per capita) - $758/yr (3/4 of population live under $2/day) Intl Remittance inflows – $2b/yr Domestic Transfers - ~ $968m/yr Literacy Rate – ~ 50% Mobile Penetration – 6m (2 carriers) 60% Digicel market share – 75% Bank License – partnered with Scotiabank; expanding to other banks in 13 Issues that plague society – At least 6 hurricanes since Earthquake, plus Cholera outbreak amongst other diseases Rainy season - major rain storms pass daily during shopping busy hours (5-7pm) Riots/turmoil that slows economy Theft comes in many forms and affects all businesses and people Fraud is common and many times against the poor Liquidity in the rural areas not sufficient; limited to Bank branches Long lines at Banks and Remittance branches; typically 1-2 hour waits Reliable Power not accessible to more than half of the population More than half the population does not have a valid ID Most Domestic Transfer happens informally through trucks/taxis and other forms; theft or loss risks estimated at more than 15% Positive influences for Mobile Money - HMMI – Gates Foundation kick starting Mobile Money during 2010 Largest concentration of NGO activities per capita worldwide USAID/World Bank/IADB/others – funding programs aimed at Inclusion Digicels National Distribution network providing liquidity for daily airtime sales

Platform overview - Tchotcho means money in Creole Started in Dec 2010; migrated to Utiba technology in May 13 Total Agents - ~ 800 (500 active) Total Subs - ~ 305k (50k active) Total Transactions - > 6m Float - $1.5m (agents/customers) Acct types - Tiered Agent structure including Withdrawal-only agents 3 Merchant profiles including Mobile Payment; to introduce informal merchant profile 14 Full KYC accts ($250 limit, expanding to $1000 in 13) Light KYC accts ($100 limit) Services available today – Deposit/Withdrawals Domestic Transfer Payroll/Disbursement services Merchant services Mobile/Bill Payment services Airtime purchases for self and gift API integration for 3 rd parties Future Services – Intl Remittance direct to phone BOOM and other MM exchanges Agriculture Financial services Savings programs NGO customized initiatives targeting different affected peoples Mobile Banking (for Banked pop)

Lessons learned – Sustainable business model is extremely important, where Agents earn enough and customers save enough versus other comparable services Education campaigns for both merchants, agents, and a highly publicized consumer campaign Market research and Customer surveys done in advance of launch are key to determining if a model will work, giving time to make adjustments It is better to have an abundance of agents than a shortage; network grooming is better off done after maturity; bad agents can be identified through performance Mobile Money Agents need constant monitoring; liquidity levels, customer satisfaction, and fraudulent activities need to be properly controlled Have enough qualified staff to cater for all the activities; the more services being targeted, the more staff required to deliver all aspects (do not under staff in the beginning) Comprehensive Marketing campaign that draws customers into the service; advertise the quick-win benefits (i.e. purchase airtime anytime, anywhere) Reach out to NGOs and Corporates and educate them on how to customize services to expand the ecosystem Use promotions on key services to entice customers

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