Realtime Money Markets for SMEs A Presentation to the World Bank 4 December 2002

Linking Various Trading Communities Purchasing Community Logistics Community Air Sea Insurance Trade Finance Cash Mgt. Guarantees Document Hub BuyerSeller Financial Community

E-Market Place Business Document Completion TECHNOLOGY OFFERING FILLING THE NEEDS The unprecedented access to and analysis of vendor /purchaser performance is due to availability of information in electronic form; the pivotal information is dynamic credit score Counterparty Credit Score Financing L/Cs Reinsurance Collections Accounting Volume / Liquidity Increasing number of commodities traded Better pricing Operating efficiencies through increasing automation What MNCs want What SMEs need

Best Fundamentals Enabling Law is in Place (RA 7289) Implementing Rules and Regulations Supreme Court Rules of Evidence SC Rules of Evidence UNCTAD Resolution DOH Procurement RA 7289 Signing Drafting RA 7289

What SMetrix Needed to Develop to Meet Perceived Business Opportunity Low cost digital signature platform that was legally enforceable and acceptable to global commercial banks Electronic Trade document clearing process which would allow contracting parties to conclude legally binding commercial documents Electronic warehouse for trade documents designated for negotiation, assignment, conveyance, or outright sale

Supply Chain Events vs. Financing Events Varda Leif, Forrester Research April 2002

Breakeven Funding / Lending Calculation

Service DescriptionFee ModelComments Digital Document Signing Service PhP 200 per month per signatory At this level, even clerical staff can be given digital signatures which makes entire workflows totally paperless Document HandlingPhP 0.60 per kilocharacterThis works out to around PhP25 for standard length invoices Securitization25 b.p. p.a. or 40% of trading income HSBC working agreement; due to totally electronic workflow of turnkey systems provided by SMetrix Revenue Model / Costing

Current MethodNew Method Acctg & Bookkeeping[1][1]PhP15,000 Messengers8,000 PLDT Line for Presellers[2]3,600 Internet Access-same- Digital Delivery Docs PhP 4,000 Digital Sales Invoice 240 Digital Signatory[3][3] 8,000 Total CostPhp26,600PhP12,240 [1][1] This assumes.25 of a bookkeeper is dedicated to support KR but salaries and benefits are fully loaded [3][3] The cost of the signature is fully loaded on KR. The moment CCBPI opts to service its other customers through the Document Hub, the savings will increase even further. [2] No additional costs for phone lines were assumed as the company assumes that there has already been a prior shift to a LAN based environment New vs. Old Costings for the Various Services

DBP-DCI (DocHub) DBP SBGFC Bureau Of Cust Citibank Declaration BTr RT Cash Mgt SIP Discounting Notarization Records Retention Supply Chain Integration