Re-Inventing Pakistan by Exploiting its potential – Can Pakistan compete? Nadeem Hussain Founding President & CEO Tameer Microfinance Bank September 28, 2011 i Tameer Triple the Bottom-line

1.The Impact of Financial Exclusion on the Economy. 2.Pakistans position-solutions and global competition. In order to compete, Pakistan must materially reduce its current level of financial exclusions Can Pakistan Compete?

205 Billion adults in the developing world are considered financially excluded. Access to mobile financial services has the power to increase GDP growth by up to 5 percent. Global Financial Exclusion 3 Can Pakistan Compete?

4 Mobile financial services lowers the barriers to adoption through reduced entry cost, reduced services price and more suitable position. Global Financial Exclusion Can Pakistan Compete?

Global Financial Exclusion Huge dividend if we succeed in reducing financial exclusion 5 Can Pakistan Compete?

State of Global Mobile Financial Access Global Successful Deployments Service providers G-CASH (Philippines) 2 Smart Money Smart (Philippines) 3 M-PESA (Kenya) 4 Mobile Money (South Africa) 5 M-banking products Easypaisa (Pakistan) 1 Domestic P2P Airtime top up Bill payment Internationa l remittance Business solutions Fixed term deposit Loans Micro- insurance ATM Mobile Commerce Banking products Loan collection 6 Can Pakistan Compete?

Status of Mobile Financial Services in Pakistan Voted Globally in top 3 in terms of Regulations by World Bank Fastest growing market Considered the new model Achieved 2 nd position in terms of volume When focus is provided, Pakistan is capable of achieving world class standards 7 Can Pakistan Compete?

Pakistans First Branchless Banking Deployment Nadeem Hussain CEO & Founding President 8

Easypaisa: Themes Expanding agent network for cash deposit, withdrawal, money transfers and account opening OTC Channel open to everyone Extended timings, no queues and minimal paperwork Mobile Accounts for more convenience and security Expanding agent network for cash deposit, withdrawal, money transfers and account opening OTC Channel open to everyone Extended timings, no queues and minimal paperwork Mobile Accounts for more convenience and security Product State Bank of Pakistans robust branchless banking framework, detailed guidelines Licensed bank behind all transactions with countrys first branchless banking license Telenor ownership in the bank for seamless integration of banking platform and mobile phones Agent network and its familiarity of mobile -based transactions State Bank of Pakistans robust branchless banking framework, detailed guidelines Licensed bank behind all transactions with countrys first branchless banking license Telenor ownership in the bank for seamless integration of banking platform and mobile phones Agent network and its familiarity of mobile -based transactions Platform Financial Services for the financially excluded Transfers, deposits, bill payments and savings for the individual Agent / franchisees to expand business Government to formalize transactions currently outside the banking industry Financial Services for the financially excluded Transfers, deposits, bill payments and savings for the individual Agent / franchisees to expand business Government to formalize transactions currently outside the banking industry Promise Safe, more convenient, more accessible Platform builds on secure regulatory framework, trustworthy banking and extensive low cost distribution Products are going to benefit, individuals, small businesses, partners and government MAJOR STEPS TOWARDS REDUCING FINANCIAL EXCLUSION 9 Can Pakistan Compete?

Easypaisa: Focus on an Individuals Needs ONLY 12% of PAKISTANIS HAVE ACCESS TO FINANCIAL SERVICES How does this man … 1. Pay Bills? a) Transfer money domestically? b) Internationally from family? 2. Repay Loans? a) Save? Market Potential 1. $30 million in bill payments per month a) Money transfers: Domestically - $7bn per year Internationally - $9bn per year 2. Savings – only 12% of the population has access to formal financial services 10 Can Pakistan Compete?

Easypaisa: Product Range 11 Suite of financial services being offered: Mobile accounts (M-wallet) Payments (bills, person) Cash deposits Cash withdrawals ATM Cards (Future) Funds Transfers (Inter-bank, a/c to a/c) Interbank Funds Transfer (Future) Money transfers Over the Counter CNIC to CNIC M-wallet to CNIC CNIC to M-Wallet Donations (SOS, SKMCH, RED CRESCENT) Utility Bill Payments Over-the-Counter International remittance Cash to counter Cash to m-wallet Cash to other banks M-commerce (Future) Retail Purchase and settlement Government Payment Platform for Microfinance Industry for loan disbursement & Collection Can Pakistan Compete?

Customer- Merchant Model Mobile Account Transaction Over the Counter Transaction 12 Can Pakistan Compete?

Easypaisa: The Way Forward Bill Payment Domestic Remittances International Remittances M-Wallet Target Customers 18 million Bill paying HH 10 million migrant workers 4.5 million expatriates 68 million un- banked population Customers (in 000)8003,3005,600 Retailers (Agents) New Products Savings, insurance, loans, merchant purchases Social and Economic benefits Business Ambitions 13 Can Pakistan Compete?