1. International Forum on Remittances 2007 DUET MULTI-PURPOSE PLATFORM Richard Schweger, CFO/COO BGS Smartcard Systems

2. WHO WE ARE Technology providers with 14 years of expertise Provision of Smart Card Retail Payment Systems Focus on cash substitution in domestic mass markets Provider of secure delivery channels for low cost financial and non-financial services Offering Universal Smart Card based solutions for Financial Inclusion and Cash Substitution Headquartered in Vienna, subsidiaries in India & Russia Austrian Export Prize Winner 2006

3. GLOBALIZATION Globalization works well - when connecting well developed local structures Cross border Remittance works well - what is needed is local infrastructure Financial Inclusion is a Global task that has to be solved locally Global and Local knowledge and experiences have to merge to offer a sustainable locally working solution Remittance collection and disbursement are local transactions within a global playing field

4. RURAL “FINANCIAL” DEVELOPMENT Banks are not universal organizations when considering the provision of financial services to everyone and everywhere Bank infrastructure and business set up lead to an exclusion of the poor (if to be performed profitably) New type of entities took over to address this market (MFIs) To grow this market and achieve scale it is necessary to combine/connect the existing banking system with MFIs Appropriate delivery channels and adequate technologies can bridge the infrastructure gap

5. REMITTANCE Remittance is one of the key Micro Financial Services (beside: credit, savings, insurance) Accessibility/Outreach especially in the rural environment are of key importance Provide a secure, controlled, efficient, scalable and universal delivery channel for all the services Use technology requiring little skill sets Invest once, use many times for diverse products & services Utilize existing third party corresponding networks Offer lowest cost of ownership through “hybrid technology”

6. POSSIBLE REMITTANCE SCENARIO Create a local low cost financial services environment Link remittances to additional financial services No traveling for recipient, remittance collection close by Recipient has the choice of only partial remittance collection For immediate spending - collection in cash Remaining balance on account and smart card with any time accessibility (option: cash less spending) Recipient: Security, Interest Income, Universal Accessibility Issuer: Additional Float

7. CONCLUSION Local solutions are required and these are to be implemented globally It is a mistake to look at select individual services and their problems without taking the whole context into evaluation Technology is an enabler and should provide a universal solution for universal services The delivery channels have to be efficient, secure and scalable providing the underlying structure for the provision of ubiquitous financial services

8. DUET IN PERSPECTIVE DUET is a universal solution addressing domestic mass markets for the provision of end-to-end financial services from Financial Inclusion to Cash Substitution DUET is uniquely positioned to deal with the main drivers of sustainability: cost reduction, efficiency increase, scalability, universality and geographical outreach Connecting Banks with MFIs on the DUET platform will create cost efficient indirect channels to sub-urban and rural clients (fund flow through multiple hands) DUET hybrid services and low cost infrastructure/devices guarantee lowest cost of ownership

9. DUET IN PERSPECTIVE DUET enables usage and integration of existing correspondent networks (merchants, post-offices, pharmacies) DUET-Transactional engine offers an efficient control of the fund flow from the issuer (via correspondent) to the recipient The same card will facilitate multiple financial (credit/savings) and non financial (social/insurance) services to the clients

10. Full range of agent / client / merchant card services available in the field MF STRUCTURE SPONSOR BANKS

11. CONTACT BGS Smartcard Systems AG Gersthoferstrasse 131, A-1180 Vienna, Austria phone: +43/1/47601/303 fax: +43/1/47601/330 e-mail: richard.s@bgssmartcard.com web: www.bgssmartcard.com Richard Schweger, CFO/COO