2. Contents: Thinkways profile Introduction to our mobile banking solution Banking Services for Banked Customers: 1. Basic Banking 2. Money Transfer 3. Remittance Mobile Payment for Banked Customers: 1. Bill Payment 2. Top up/Recharge 3. Ticketing 4. Merchant Registration Process M-banking for Existing or Banked Customers: Architectural Overview Transaction flow screens: Basic banking, Bill payment, money transfer, top-up Banking for the unbanked Advantages to stakeholders Mobile Banking Scenario – Past & Present Banking and mobile usage scenario in Cote d'Ivoire Unbanked population scenario M-banking – Unbanked/Rural Population: Architectural Overview Financial Services: 1. Cash Withdrawal 2. Cash Deposit Platform Security and Standards

3. Thinkways profile Five year old company, established in June 2003 Offices in Bangalore and Bhubhaneswar, India 75+ professionals Providing wireless & e-business solutions and services to prominent organizations in banking, financial services, healthcare, telecommunications, manufacturing, public utilities. Technology includes Smartcard (Java Card, RFID), Security Systems (3DES/RSA), Mobile Applications (NFC, J2ME, Symbian), Peripherals (Serial IO, Bluetooth, Fingerprint I/F, NFC,.Net), Telco Interfaces (SMS, Secure Binary SMS, SmartTrust WIG, HTTP/S), Banking Interface (ISO 8583) and Backend applications (J2EE, JSP, POJO, JCAPS).

4. Mobile Banking Scenario – Past & Present Past: Mainly reproduction of existing online banking Low bandwidth & latency issues High Communication cost Low functionality and fewer capabilities Security Concerns Present: Fast data services –GPRS/3G/USSD Lower data transfer costs More functionality, better user interfaces Higher security mechanisms Source to reach faster to the unbanked and under banked population

5. Introduction to our mobile banking solution Mobile banking solution for banked population: The solution is provided to banks customers to avail information and transact on the move. The banks can retain existing customers and attract more by providing this mobile banking solution Mobile banking solution for un-banked population: Reach out to un-banked population in the rural area to expand customer base Technology: Mobile application, Smartcard, Contactless technology by using NFC, Fingerprint verification process and transaction proof using bluetooth, SMS, GPRS, USSD Security features: ISO 8583 standard for financial Transaction Card originated messages IFX, specification for financial transactions such as bill presentment and payment Data Encryption: 3DES, SHA1, MD5, RSA

6. Advantages to Stakeholders Telecom Operators Higher revenue flow through increased GPRS and SMS usage Banks Expand customer base by providing basic banking facility through financial inclusion to the unbanked population Provide on the fly banking facility through m-banking to the banked population Financial Services/ Card Companies (VISA/MasterCard)‏ More number of transactions creating increased loyalty Utility Organizations Prompt payment of bills enabling better cash flow Solution Providers Acquire large number of customers for their solution Subscribers/Customers Basic banking facility made available and advantage to transact on the move

7. Registration Process The existing bank customer can register for m-banking in either of the methods mentioned below: Fill Form provided by the bank. The customer provides necessary details including email id and mobile number. Online/Web registration Customer sends SMS like MBANK to 55555. Receives a link as SMS like “Click the link to start using MBANK” Once user clicks the link the application is received and installed. USSD – Customer dials *1234#. Receives message prompting account details.

8. M-banking for Existing or Banked Architectural Overview SIM Card with WIB TM Payment Application Menu GSM Network Firewall at Telco WWW Secured mobile payment application server Bank Back end Bank Firewall mcommerce Application Firewall USSD based USSD Centre J2ME app

9. Value Proposition Some of the financial services can be provided by the banks to their customers: Basic Banking Money Transfer Remittance Bill Payments Mobile Recharge Mobile Wallet Mobile ATM Ticketing Loyalty & m-coupon Insurance & Loans POS based services

10. Banking Services for Banked Customers Basic Banking: Provides customer to avail of features like Balance Enquiry, Cheque status, Account Statement, Stop payment, etc. Money Transfer:- This provides customers to transfer money from one account to another either in the same bank or other bank Remittance:- Allows customers to transfer money from foreign workers to their home countries.

11. Payment Services for Banked Customers: Bill Payments:- Provides customer to avail of features like Electricity, Water, Telephone, Mobile Bill payment Top up/Recharge:- Customer can Recharge mobile currency and other prepaid accounts Ticketing:- To buy/book airline, railways, movies and other tickets Merchant Based:- Used during shopping including mobile coupons and loyalty

12. M-Commerce Transaction Switch

13. Transaction switch components Client interface module Transaction Processor Terminal Manager Floor limit Validation Currency Manager Hot list card Validation Batch Processor Settlement Module Message Formatter Message Router Key Management System DB Manager

14. Customer Mobile Interaction Splash Screen on starting mobile banking application Customer provides mobile number for first time and only provides password given by bank from the second use onwards User can choose between Banking, payment and other options Customer adds bank account or credit card information incase of multiple banks/cards

15. Basic Banking: Balance Enquiry Select Check Account Balance Choose the Account Number Enter the Transaction PIN Balance is displayed with date and time

16. Basic Banking: Account Statement Select the Account Number Enter the Transaction PIN Lists the first 4 transactions. Click on the transaction to view details Transaction is displayed as shown

17. Money Transfer Select Money Transfer option Enter the Amount to be transferred Transaction confirmation Enter Receiver’s Account Number Choose Account to transfer from Enter the Transaction PIN

18. Top Up/Recharge Select the Telecom Provider Choose bank account Transaction Receipt Information about user account is displayed Enter Amount and mobile number Enter the Transaction PIN

19. Bill Payments Select the Utility Department Choose bank account Transaction confirmation Information about user account is displayed Information on amount to be paid Enter the Transaction PIN

20. Money Remittance Select Remittance option Enter the Amount to be transferred Transaction confirmation Enter Receiver’s Account Number and bank information Choose Account to transfer from Enter the Transaction PIN

21. Introduction- Mobile banking for unbanked Reach out to unbanked population to provide basic banking facility enabled by our mobile banking solution

22. Banking and mobile usage scenario in Cote d'Ivoire Total population: 18 million Banked population: Approximately 2 million of the population or close to 10% use banking services 12 commercial banks Potential for mobile banking for unbanked : More than 10 million Potential for mobile banking: 2 million to begin Mobile subscribers: Expected to touch 9 million with 28% growth

23. Un-banked population Scenario Limited access to affordable financial services such as savings, loan, remittance and insurance by majority of the population in the rural areas is a constraint to the emergence in these sectors Access to these services enlarges livelihood opportunities and empowers the poor to take charge of their lives Financial inclusion imparts formal identity and provides access to the payments system hence considered to be critical for achieving overall growth of the economy The focus today has shifted to provide access to basic banking facilities to every individual Considering various assumptions we can estimate that significant portion of the population is un-banked

24. Banking for the unbanked Challenges:  Setting up a branch or ATM is an expensive affair, considering the recurring cost to be higher than the transactions  Regulation has been designed for delivery in urban markets or banked population  Distribution requires more manpower to be deployed in rural areas. Mobile Banking the perfect solution:  Telecom networks available in the remotest of locations Mobiles can provide facility of branchless banking and ATM starting from basic services like cash withdrawal and deposit to bill payments. Cote d'Ivoire has nearly 9 million mobile users, compared to around 2 million bank accounts; giving banks a efficient access to the unbanked population Easy to use, lower operational costs and access to multi utility financial services

25. Banking Services for Unbanked Customers: Pension distribution: To ensure the money reaches only to the beneficiaries on time with out any hassles Cash Deposit : Customer can deposit cash with the bank agent which is also updated in the bank database, no verification is required in this case Cash Withdrawal : Customer can withdraw from account, physical cash is provided to customer by the bank agent. Fingerprint besides other information is used for verification Balance Enquiry : Provision to check balance in the account Mini Statement : Gives information of last 5 transactions, print of statement is given to customer if required. Microtransaction: No minimum transaction limit makes the life easy for rural customers Loans: Customer can apply for loans, check for status of loan Insurance: Customer avails of insurance facilities.

26. Bank Telecom Operator Utilities Thinkways Transaction Switch (TTS)‏ Others User authenticated using card & finger print Mobile phone performs financial transactions TTS communicates with various financial entities Printer to print receipt of transaction M-banking for Unbanked Population: Architectural Overview

27. The Registration Process

28. The Mobile Registration Process Bank representa tive keys A/C No. and Form No. Finger print of customer taken Voice of customer recorded Photograph of customer clicked Image of Form captured Confirmation of registration and artefacts uploaded to bank server

29. Cash deposit: Mobile Interface Customer details displayed once card interacts with phone or ID provided Select Deposit Cash Enter amount to be deposited Transaction receipt is printed and provided to the customer

30. Cash Withdrawal: Mobile Interface Finger print verified for withdrawal Transaction receipt is printed and provided to customer Customer details displayed once card interacts with phone or ID provided Select Cash Withdrawal Enter Amount to Withdraw

31. Security Concerns & Measures SMS and other channels used with encryption like 3DES, SHA by mobile applications to protect data integrity and security Solution compatible to banking standards like ISO 8583 Security related systems and components in control of the bank Use of Java SIM cards & PKI for establishing non repudiation Credit/Debit cards linked to unique phone ID for added transaction security Implementation of secure PIN for transactions Protection of gateways by residing them behind firewalls.

32. Platform Security & Standards Standards:- I SO 9564 Banking — Personal Identification Number (PIN) management and security (in ATM and POS systems) ISO 19092-1 Financial Services — Security — Part 1: Security framework ISO 19092-2 Financial Services — Security — Part 2: Message syntax and cryptographic requirements ISO 8583 Standard for Financial Transaction Card Originated Messages IFX, specification for financial transactions such as bill presentment and payment Data Encryption:- 3DES, SHA1, MD5, RSA EMV compliant

33. Conclusion Thank you Contact: Alok Subudhi – Director, Technology alok@thinkways.com Thinkways Software Technologies #254/1, 5 th Cross, Vasanthappa Block Ganganagar, R.T Nagar Bangalore – 560032 India Ph: +91-80-42664800 www.thinkways.com