BRIDGING THE GAP ON REVENUE COLLECTIONS A CO-OPERATIVE BANK PRESENTATION TO WATER SERVICE PROVIDERS AND RELATED STAKEHOLDERS November 2011

OBJECTIVE  To significantly increase Water Services Providers’ revenues through provision of multiple bill payment avenues which serve great convenience to the Water Providers’ customers.

INCREASING EFFICIENCY & CONVENIENCE ON REVENUE COLLECTIONS  Corporate Current Account  Convenient channels of collecting water and sewerage utility bill payments  Online Account Access for real time account monitoring  Multiple payment processing channels

CORPORATE ACCOUNT  Co-op bank wishes to offer a customised current account to support various operational functions like:  Revenue Collections  Main operations  Special Project Funds  Disbursements (e.g. Payments to suppliers and payroll processing)  The account can be opened and operated both in Kenya shillings and any desired hard currency like USD, Euro and Sterling Pound.

CORPORATE ACCOUNT CONT… FeaturesBenefits 1Cheque book issued.Convenient payments to suppliers & creditors 2Free scheduled statements e.g Daily, weekly & monthly (for hard copy statements) Timely and convenient access to account details 3Critical transaction details are captured Easy and timely reconciliation 4Online access through internet banking Convenient banking Effective monitoring Better cash flow management

UTILITY BILL PAYMENT COLLECTIONS Co-op Bank offers the following bill payment avenues to Water Service Providers’ customers:  Over The Counter  Mobile Banking  ATM Facilities  Internet Banking

UTILITY BILL PAYMENT COLLECTIONS 1. Over The Counter  Over 94 Branches country wide to make payments  Water Service Provider is credited immediately  Customers’ water account number is appropriately captured and narrated

UTILITY BILL PAYMENT COLLECTIONS 2. Mobile Banking  Co-op Bank has an established robust system that allows Co-op Bank account holders to process utility payments directly from their accounts within the bank’s domain.  In addition, water service providers can utilize an enhanced platform to receive payments from non Co-op Bank Account Holders through an enabled system in partnership with Safaricom.

UTILITY BILL PAYMENT COLLECTIONS 3. ATM Facilities  Co-op Bank has over 360 ATMs countrywide  Utility payments can be made through our ATMs, though this remains a preserve of Co- op Bank Account Customers 4. Internet Banking  Co-op Bank account holders can use our internet banking portal to make such payments as well.

CO-OPNET - ONLINE ACCOUNT ACCESS  Co-opNet allows authorised users real-time online access to the accounts at the comfort of your offices or any other internet connection points. The Internet Banking features:  View online and real time account balances and transactions for all your accounts  Electronic inter-account transfers  Electronic transfers to other banks  Electronic supplier payments  Ability to query transaction details  Audit trail – audit records of all transactions form the accounts  View and Download statements

PAYMENT CHANNELS Co-op Bank avails the following payment avenues to assist efficient disbursements:  Jumbolink – A web based Electronic Funds Transfer (EFT) solution for such disbursements as salary processing, supplier & contractor payments and any other payments  Real Time Gross Settlement – for high value (Kes. 1 Million & above) and critical time bound payments.

PAYMENT CHANNELS  Internet Banking – can be used to make local and international payments, utlity payments, internal transfers as well as future dated payments  Mass Cheque Writing – essentially similar to getting a bankers cheque from the bank except in this case the cheques are mass produced and can be a one off activity or a recurring activity.

PAYMENT CHANNELS  SWIFT - In cases where the payments are international in nature Co-op Bank will employ SWIFT (Society for Worldwide Interbank Financial Telecommunication) facilities to process such payments. SWIFT payments require foreign exchange and the Bank offers competitive exchange rates for SWIFT payments  Bulk M-Pesa Payments – Another partnership with Safaricom where the bank processes bulk payments directly to beneficiaries M-Pesa accounts.

Co-op Bank’s Experience In Collections Co-op bank has had a long standing relationship with Institutional clientele whose main source of revenues are realized through collections:  Utility Companies for example Nairobi Water & Sewerage Company, KPLC, Safaricom  Schools, Colleges and Universities  Micro Finance Institutions for example KWFT, Faulu Kenya  State Corporations for example National Housing Corporation, NOCK, KNEC