1. PRESENTATION ON SETTLEMENT AND RECONCILIATIONS 1 July 5, 2011 Keystone Bank……new Horizons

2. Table of contents 2  Introduction  Objectives For Settlement And Reconciliation  E-payment Products and Settlement  Dispute Resolution  Introduction  Objectives For Settlement And Reconciliation  E-payment Products and Settlement  Dispute Resolution

3. 3 Introduction Large scale commercial banks in Nigeria and Africa at large have previously excelled, at providing traditional Banking services to different categories of customers. However, recent developments in consumer enlightenment, telecommunications services and e- payment infrastructure along with a drastically more competitive environment have nudged banks towards exploring electronic channels for delivering banking services.

4. 4 Introduction (Cont’d) Consequently, numerous opportunities have arisen for sustainable competitive advantages through the deployment of value added electronic services. In addition to providing whole new income streams, these services are empowering banks with enhanced client acquisition and retention as well as unprecedented levels of operational efficiency.

5. 5 Objectives  To intimate us of current operational flow on what we do in settlement.  To enlighten us on different products we settle.

6. 6 E-payment Products and settlement Our Settlement on payment solution products include; - Remita - Active Pay - Interswitch - Etranzact - Active Net

7. 7 E-payment Products and settlement Contd Interswitch PayDirect Paydirect– A reporting module designed by Interswitch to view and settle collections on the platform  An efficient and effective online, real-time platform for monitoring collections and remittances.  Used by large corporation in the administration of payments & collections.  3 parties have access to transactions processed on the Paydirect platform, the collecting bank, switch and the organization.

8. 8 E-payment Products and settlement Contd REMITA – Powered by Systems Specs. REMITA – An electronic courier service that rides on a secured switching platforms to deliver funds to banks’ accounts & associated schedules to relevant bodies. Also salary payment, contractor & supplies payments, tax payments, corporate collections etc. 3 Models of Remita  The switch model  The RTGS model  The RTGS model integrator

9. 9 E-payment Products and settlement Contd Etranzact Settlement –Powered by Etranzact. Etranzact offers similar products like Interswitch though under a different umbrella and different name. Products offered by Etranzact include:  Corporate Pay  Payout Outlet  Web Access  Etranzact Reloadable card

10. 10 Dispute Resolution PlatformResolution REMITA Funds not applied to beneficiaries accounts due to invalid account numbers are returned back to the corporate via the Remita platform For duplicate credits applied to beneficiaries from the payment schedule provided, this is reversed back to the corporate via the platform; this reversal can only be effected for funded accounts, where it is not funded, the support staff of Remita are advised on the status. For funds credited to wrong account number from the payment schedule, the same process above is used to effect reversal. All these are resolved within a 24hrs timeline

11. 11 Dispute Resolution contd. PlatformResolution PayDirect For duplicate transactions, the corporate are notified and Interswitch are advised for a reversal where the funds are still intact; the reversal reflects in our CBN settlement position by the next day For wrong crediting of payments, the same process above applies

12. 12 Dispute Resolution contd. PlatformResolution Active Net ( NIP )Transfers made to wrong accounts are reversed on settlement after the receiving bank have acknowledged for reversal. The acknowledgement can only be effected where the account is funded but where it is not, the sender bears the recovery of the fund. The process above applied for duplicate transactions The timeline for resolution on this is 72 hours

13. 13 Dispute Resolution contd. PlatformResolution EtranzactPayments transferred to a wrong party or duplicated are resolved within 72 hours after due consultation with the various parties involved – the receiving bank, the switch and the customer.

14. 14 THANK YOU