Card-less dispensing, remittances, ATM Front ends

1. PresentationPresentation
ByBy
Telnet (Nigeria) LimitedTelnet (Nigeria) Limited
March 25, 2009March 25, 2009
Enabling ATM Remittances for GT BankEnabling ATM Remittances for GT Bank

2. 2
Global Trends in RemittancesGlobal Trends in Remittances
 Globally the Remittance Market Comprises several playersGlobally the Remittance Market Comprises several players
 Top 2 International Players: Western Union, MoneyGramTop 2 International Players: Western Union, MoneyGram
 Banks also offer their own internal remittance servicesBanks also offer their own internal remittance services
 Remittances is a multi-billion dollar market.Remittances is a multi-billion dollar market.
 Officially recorded remittances for 2008 is $305 billion (WorldOfficially recorded remittances for 2008 is $305 billion (World
Bank Report March 2009)Bank Report March 2009)
 Double digit annual growth has been recorded in the past fewDouble digit annual growth has been recorded in the past few
yearsyears
 Global forecast is that it would be between $280-299 billion inGlobal forecast is that it would be between $280-299 billion in
2009 due to the economic outlook2009 due to the economic outlook

3. 3
Global Trends in Remittances (contd.)Global Trends in Remittances (contd.)
 Despite the economic downturn total remittances have beenDespite the economic downturn total remittances have been
relatively stable or on the rise to some parts of Africarelatively stable or on the rise to some parts of Africa
 Rwanda, Kenya, Nigeria (Recent Reports from IAMTN)Rwanda, Kenya, Nigeria (Recent Reports from IAMTN)
 Worldwide Remittance Service providers are adopting andWorldwide Remittance Service providers are adopting and
leveraging electronic channels to deliver better service eg.leveraging electronic channels to deliver better service eg.
 MoneyGram and NCB to launch money transfer network inMoneyGram and NCB to launch money transfer network in
Saudi Arabia.Saudi Arabia.
 MoneyGram and National Commercial Bank have entered intoMoneyGram and National Commercial Bank have entered into
an agreement to offer MoneyGram's international moneyan agreement to offer MoneyGram's international money
transfer service at the bank's 1,400 ATM locations in Sauditransfer service at the bank's 1,400 ATM locations in Saudi
Arabia. (IAMTN Report July 3Arabia. (IAMTN Report July 3rdrd
2009)2009)

4. 4
About GT BankAbout GT Bank
Offers Local and International RemittanceOffers Local and International Remittance
ServicesServices
Local/In-house:Local/In-house: CIT – Cash In TransitCIT – Cash In Transit
International:International: Western UnionWestern Union
CIT is offered across all its branches toCIT is offered across all its branches to
customerscustomers
Using the Internet Banking facilities someUsing the Internet Banking facilities some
customers can initiate remittances. A visit to acustomers can initiate remittances. A visit to a
branch is required to redeembranch is required to redeem
23,000 CIT Transactions per month23,000 CIT Transactions per month

5. 5
About GT Bank (contd.)About GT Bank (contd.)
No. of Branches: 160No. of Branches: 160
No. of Cards Issued: 1.6 millionNo. of Cards Issued: 1.6 million
No. of Active Cards: 1.1 millionNo. of Active Cards: 1.1 million
No. of Installed ATMs: 455No. of Installed ATMs: 455
No. of Off-Site ATMs: 90No. of Off-Site ATMs: 90
No. of ATM Transactions per Month: 2.1 millionNo. of ATM Transactions per Month: 2.1 million

6. 6
GT Bank’s Business ChallengesGT Bank’s Business Challenges
Exploiting potential benefits offered byExploiting potential benefits offered by
Electronic Channels for economic and businessElectronic Channels for economic and business
advantage eg.advantage eg.
Cost ReductionCost Reduction
Consumer Self-Service (Ease, Convenience,Consumer Self-Service (Ease, Convenience,
Speed)Speed)
Confronting competition from other banks forConfronting competition from other banks for
dominance of the business transactions marketdominance of the business transactions market

7. 7
GT Bank’s Business Challenges (contd.)GT Bank’s Business Challenges (contd.)
Unrelenting thrust to maintain sustainableUnrelenting thrust to maintain sustainable
growth and increase shareholder valuegrowth and increase shareholder value
Increase Revenues and ProfitIncrease Revenues and Profit
Missed opportunities to earn additional incomeMissed opportunities to earn additional income
Remittances are restricted to normal banking hoursRemittances are restricted to normal banking hours
Few customers with Internet Access in the marketFew customers with Internet Access in the market

8. 8
GT Bank’s Business Challenges (contd.)GT Bank’s Business Challenges (contd.)
Mine the potential existing in the large informalMine the potential existing in the large informal
sectorsector
Over 80% Unbanked Population in NigeriaOver 80% Unbanked Population in Nigeria
Global recognition of Nigeria as major frontier forGlobal recognition of Nigeria as major frontier for
consumer P2P servicesconsumer P2P services

9. 9
What is ?What is ?
It is an ATM Remittance SolutionIt is an ATM Remittance Solution
It is an alternative channel for fundsIt is an alternative channel for funds
transfer and redemptiontransfer and redemption

10. 10
Why ?Why ?
 Leverages the ATM Channel for funds transferLeverages the ATM Channel for funds transfer
and redemptionand redemption
 Enable 24/7 RemittancesEnable 24/7 Remittances
 Provides Fast, Convenient, Easy and SecureProvides Fast, Convenient, Easy and Secure
Access to CashAccess to Cash
 Supports Card-less Redemption of TransferredSupports Card-less Redemption of Transferred
FundsFunds
 Integrates ATM Channel with Web and MobileIntegrates ATM Channel with Web and Mobile
Phone for Cash-OutPhone for Cash-Out
 Supports Cards from Multiple IssuersSupports Cards from Multiple Issuers

11. 11
Cash Express Solution OverviewCash Express Solution Overview
Sender Receiver
Internet
Banking
Mobile
CHANNELS
Generate reference
via several channels
Receive reference
on mobile phone
Cash withdrawal
on ATM
Collects cash
without card
Cash out
ATM
Branch

12. 12
Cash Express Transaction FlowCash Express Transaction Flow
Cash
Express
Server
Internet
Banking
Mobile
CHANNELS
ATM
Branch
Receiver
Remittance request via several channels(1)
Send reference number (2)
Send authorization code
(3)
Visit ATM
1. Enter reference number
2. Enter authorization code
(4)
Verify
(5)
(6)
Sender

13. 13
Examples of Commercial ApplicationsExamples of Commercial Applications
Remittances to Mechanics or ArtisansRemittances to Mechanics or Artisans
Remittances to Non-Account HoldersRemittances to Non-Account Holders
Remittances to close and extendedRemittances to close and extended
family members for medical treatmentfamily members for medical treatment
Remittances to students and relationsRemittances to students and relations
to pay school feesto pay school fees
Remittances for purchases eg. VillageRemittances for purchases eg. Village
HomeHome

14. 14
How it Works: Initiating RemittancesHow it Works: Initiating Remittances
1. Visit ATM. Press Any Key 2. Select Card Transaction 3. Select Cardless Transfer
4. Enter Recipient Mobile No. 5. Enter Amount 6. Take Card and Receipt

15. 15
How it Works: Redeeming RemittancesHow it Works: Redeeming Remittances
1. Recipient Receives Ref. 2. Visits ATM with Ref/Auth Code 3. Select Cardless Transaction
4. Enter Transfer Ref. 5. Enters Auth Code

16. 16
Value Proposition to GT BankValue Proposition to GT Bank
Opens additional earnings potentialOpens additional earnings potential
Offers competitive edge against otherOffers competitive edge against other
BanksBanks
Assist in new customer acquisitionsAssist in new customer acquisitions
Database of new leads and contactsDatabase of new leads and contacts
Reach out to 80% unbankedReach out to 80% unbanked
Guarantees investment protectionGuarantees investment protection

17. 17
Value Proposition to GT Bank (contd.)Value Proposition to GT Bank (contd.)
Expand Market ShareExpand Market Share
Reduces costs and improvesReduces costs and improves
efficienciesefficiencies

18. 18
Earnings Potential from Cash ExpressEarnings Potential from Cash Express
No of Cards 1,600,000
No of Active Cards 1,100,000
% of Cardless Subscriptions 33%
No of Cardless Subscriptions 363,000
Monthly Payment/Subscriptions NGN 100.00
Income per Month from Subscriptions NGN 36,300,000.00
Income per Year from Subscriptions NGN 435,600,000.00
% of Cardless Xsactions/day 0.05%
No of Cardless Xsactions/day 800
No. Cardless Xsactions/ATM/day 2
No of Cardless Xsactions/month 24,000
No. Transactions per ATM/month 53
Fee per transaction NGN 350.00
Fee Income per month NGN 8,400,000.00
Fee Income per year NGN 100,800,000.00
TOTAL Income per year NGN 536,400,000.00

19. 19
Min. Requirements for Cash ExpressMin. Requirements for Cash Express
 Postilion Realtime 4.3 SP1 Framework and SDKPostilion Realtime 4.3 SP1 Framework and SDK
LicenseLicense
 MediaPlus Ver 1.6MediaPlus Ver 1.6

20. 20
Cash Express: Pricing Options ICash Express: Pricing Options I
Items Description Amount
A Systems and Licenses
1 CES 25 Server License NGN 140,000,400.00
2 CES Postillion Bridge 100 NGN 25,000,900.00
3 CES for Basis NGN 2,320,000.00
4 CES Universal NGN 36,250,000.00
B Sub-Total A NGN 203,571,300.00
C Less 35% Discount NGN 71,249,955.00
D Total Amount (B-C) NGN 132,321,345.00
E System Setup and Installation Fees NGN 13,232,134.50
F Total Amount (D+E) NGN 145,553,479.50
Monthly Transaction Fees
1 to 24,999 Xsactions/Month NGN 523,000.00
25,000 to 74,999 Xsactions/Month NGN 2,800,000.00
75,000 to 249,999 Xsactions/Month NGN 25,000,000.00
Notes:-
1 CES Server License is inclusive of Hardware
2 Implementation is within 60 days from date of payment
3 Customization will attract rates of NGN 21,000 per hour per resource
Transaction Based

21. 21
Cash Express: Pricing Options IICash Express: Pricing Options II
Items Description Amount
A Systems and Licenses
1 CES 25 Server License NGN 140,000,400.00
2 CES Postillion Bridge 100 NGN 25,000,900.00
3 CES for Basis NGN 2,320,000.00
4 CES Universal NGN 36,250,000.00
B Sub-Total Amount NGN 203,571,300.00
C System Setup and Installation Fees NGN 20,357,130.00
D Total Amount(B+C) NGN 223,928,430.00
Notes:-
1 Support and Maintenance Fees is NGN 2.9m per Month
2 CES Server License is inclusive of Hardware
3 Implementation is within 60 days from date of payment
4 Customization will attract rates of NGN 21,000 per hour per resource
Outright Purchase