1. Case Study: WING OTC Transactions as a transformational service David Kleiman Senior Consultant PHB Development Developing and Managing Efficient Agent Networks in Lao

2. Overview What is an OTC Transaction? WING History and Business Introduction WING Wei Luy Xpress Service WING Cash Xpress Agent Network Management Factors impacting WING’s Success The WING Challenge

3. What is an OTC Transaction  OTC = Over the Counter Transaction  An Agent assisted transaction that allows the customer to send money without having an account with the service provider  The customer proposition is built around the Agent Network that must be large, high quality, visible, liquid and trusted.  The agent proposition is that the service provides steady customer footfall and significant margins for providing the service.

4. National Bank of Cambodia Licenses: Payment Processor (ANZR) 2010 Payment Processor (FTB) 2013 Specialized Bank: Nov 2014 Commercial Bank: Target 2020 Risk-based Approach Wallet Limits tiered based on customer profile KYC, AML/CFT is applied/verified at the back office. Financial Inclusion Objective “Make Money Fair” Extend Banking Services throughout Cambodia Develop a scalable model Launched by ANZ in 2009 Today Largest Financial Services Network in Cambodia - 2200+ Agents WING Services Multiple Currency Card and Mobile-based OTC Remittances Payments ATM, CICO,PTU,P2P, Bills WING Technology USSD2 MNO agnostic ATM, POS and VISA In-house development

5. WING Wei Luy Xpress - OTC Transaction (Sending)  Send money to ANY person from a WING Cash Xpress Agent  Up to $500 per transaction  $10,000/day per recipient  Each Transaction must provide  Senders phone number  Recipients phone number  The cash and fee of $1.50  Sender receives a receipt with 8-digit code and transaction details and then calls the recipient and gives them the code and details

6. WING Wei Luy Xpress - OTC Transaction (Receiving) RReceiving the money is easy, but different from the video, why? FRAUD! 1.Recipient must give the Agent The 8-digit code Their phone number as provided by the Sender 2.Agent calls the Recipient Phone number and MUST see it ring - with a call from the Agent 3.Customer receives their cash

7. OTC Transaction – What could go wrong?  What if the money is unclaimed? 1.On the 7 th day, the code expires 2.Funds revert to the Agent - MUST be reported to WING 3.WING back office moves unclaimed funds to suspense account and begins investigation – calling the recipient, then sender. Notification at Agent of unclaimed funds

8. WING Agent Network Management  Accepting about 20% of applications – competitive business  Agents invest in signage, liquidity and occasionally staff and locations  Agents sign policies - not just T&C  50+ Principles - ranging from customer service, code of conduct, liquidity, and process  Each with examples and the penalty for infraction  Liquidity complaints are serious - 2 warnings followed by termination  Fraud is investigated, and criminal charges are pressed - if it is discovered

9.  Priced competitively to any other similar service  Strong back office, field staff and management commitment  Agent Assistance overcame some systemic obstacles (language)  Large Network of Reputable, Liquid, and Visible Agents  Agent and Staff Monitoring, Compliance, and Discipline Factors for Success

11. The WING Challenge  What is the average value for a WING Wei Luy Xpress transaction?  What is the average monthly commission earned by an Agent?  What is the minimum liquidity required of a WING Cash Xpress?  What is the average monthly value of transactions conducted by WING Agents in 2014?

12. The WING Challenge  What is the average value for a WING Wei Luy Xpress transaction? $167  What is the average monthly commission earned by an Agent? $750  What is the minimum liquidity required of a WING Cash Xpress? $10,000 (Urban)  What is the average monthly value of transactions conducted by WING Agents in 2014? $260,000,000

13. Value of WING Transactions today?

14. David Kleiman Senior Consultant PHB Development Thank you!