1. Worker Remittances Solution enabled for Mobile channel Stephan Kraft Senior Account Director Romania

2. 2 What is SWIFT? A co-operative organisation serving the financial industry A provider of highly secure financial messaging services The financial standardisation body

3. 3 Country Coverage 4 billion messages/year 9.761 customers 209 countries 19 Mio messages peak day (Marc 2011)

4. 4 (Worker) Remittances - Market overview Market: International migrants  200 million Financial flows  USD 400 billion Industry revenue  USD 15 billion Annual transactions  1 to 1.5 billion Average transaction value  +/- USD 300 A remittance is a cross-border, person-to-person payment of relatively low value.

5. 5 Issues and options for Bank service delivery 1.Build a proprietary network 2.Build a bilateral service with a correspondent 3.Use open correspondent banking arrangements Costly Lacks scale Poor service Options: Issues: 1.Open correspondent arrangements do not deliver price and time transparency for consumers 2.Processing is inefficient and costly for banks

6. 6 Reference data Directory FileAct ISO 20022 Pacs. 008,002,004 Architecture Rules + Guidelines Settlement Agent Sender debtor Beneficiary creditor Agents Distribution network sending country Distribution network Receiving country participants cover payment SWIFT Worker Remittance - Architecture participantsAgents Service conditions (time, cost, UTIC )

7. SWIFT Workers Remittance Solution - Components 7 DebtorCreditorAgent Participant Settlement Agent Bilateral Contract Bilateral Service Level Template Market Practices Service Levels, Product Groups, Charges & FX Practices Reference Data Participant and Agent Capabilities and Points of Service Messaging Standards Instruction, Reject, Return & Status Messaging Services FileAct Strore & Forward 6.1

8. Mobile phone for financial services Usage today for financial services – financial transaction notification/alert – mobile banking services : balance, credit transfer, bill payment In developed countries : –complement e-channels for financial services In emerging countries : - channel to serve unbanked in rural areas Usage today for financial services – financial transaction notification/alert – mobile banking services : balance, credit transfer, bill payment In developed countries : –complement e-channels for financial services In emerging countries : - channel to serve unbanked in rural areas 8 Value for financial services Fast,reliable, secured, standardized, cost, ubiquity, reach Value for financial services Fast,reliable, secured, standardized, cost, ubiquity, reach

9. Mobile phone for financial services 9 Global market figures 3.9B mobile phones / 1B bank accounts / 1.5B internet PCs 3B unbanked people / 200M migrants /15B EUR pa remittance market Global market figures 3.9B mobile phones / 1B bank accounts / 1.5B internet PCs 3B unbanked people / 200M migrants /15B EUR pa remittance market M-PESA in Kenya : Launched in 2007, 7M subscribers, 2.9M EUR transfered every day, represent already 17% remittances volume to Kenya SMART Money in the Philippines : Launched in 2004, 2.5M subscribers, 1.5M unbanked, 50K service point, 80M EUR pa remittances M-PESA in Kenya : Launched in 2007, 7M subscribers, 2.9M EUR transfered every day, represent already 17% remittances volume to Kenya SMART Money in the Philippines : Launched in 2004, 2.5M subscribers, 1.5M unbanked, 50K service point, 80M EUR pa remittances

10. 10 Reference data Directory FileAct ISO 20022 Pacs. 008,002,004 Architecture Rules + Guidelines Settlement Agent Sender debtor Beneficiary creditor Agents Distribution network sending country Distribution network Receiving country participants cover payment Worker Remittance – enabled for Mobile channel participantsAgents Mobile instruction Mobile access to online banking application SMS notification Cash pick-up Credit bank account Store on mobile wallet

11. Mobile instructed Remittances – value proposition New service with agents For mobile remittances New service with agents For mobile remittances reaching customers in rural areas reaching customers in rural areas Acquiring new customers Acquiring new customers Enable mobile banking channel For remittances Enable mobile banking channel For remittances Speed Flexibility ubiquity security Speed Flexibility ubiquity security new revenue opportunities new revenue opportunities Mobile instructed remittances authorizing cash pay-out To unbanked with mobile authorizing cash pay-out To unbanked with mobile

12. 12 Your Contact Stephan Kraft Senior Account Director Central & Eastern Europe SWIFT Fischhof 3/6 A-1010 Vienna Austria +43 1 740 40 2374 +43 1 740 40 2379 +43 664 636 2090 stephan.kraft@swift.com swift.com T F M W E