A brief presentation given in Rwanda, Ethiopia and United Arab Emirates throughout the month of February 2011.

1. Some Successful Rabo Development Projects : Focus on Mobile A brief presentation on mobile banking and payments developments within Rabo Development partner banks. Dan Armstrong Dubai, UAE - February 2011

2. About Rabobank Group (46 as of 2010) 3,7 mln internet banking customers, 7 mln NL customers overall (population: 16,5 mln), 9,5 mln customers world-wide 152 local banks and 1200 locations in NL Loyal, involved customers including 1,5 mlnmembers AAA rating (Moody's, Standard & Poor's, Dominion Bond) Tradition of innovation: ATMs, internet banking, WAP and web presences, mobile banking, television banking, GSM services and operations

3. Rabobank : World-Wide Agri-Bank Rabobank’s international market niche is food- and agri-business Customer Network: many of the global food companies Expertise: dedicated research team (80 professionals) Agri products: weather derivatives, price hedging instruments Rabobank was founded 110 years ago by poor farmers who did not have access to financial services Today, more than 4 billion people world-wide do not have access to financial services It is our mission to support financial sector development in developing economies.

4. Equity participation (minority position) in a bank that remains local Board will be strengthened by Rabobank professionals Rabobank will provide managers for Executive Board to complement local managers A comprehensive technical assistance programme will be executed through the deployment of Rabobank banking specialist Special focus on rural areas and agriculture (using Rabobank knowledge, network, products) For Rabobank this is a long-term commitment, in which the development into a leading rural bank prevails over short-term profitability Rabo Development Partnership Proposition

5. Motivation Expanding the initial objective of Rabobank (serving the underserved) to other parts of the world in order to enhance it’s cooperative identity and significance Expanding it's international food- and agri-banking network by including partner banks in (agricultural) developing countries looking for integration in the world economy. Rabo Development : Motivation Eligible Countries Developing (low income) economies Economic, political and social stability Rural area and agricultural sector important for economy Open for foreign investments Safe for our staff

6. Rabobank & Rabo Development World-Wide Case Studies Presented Here RIAS & Rabo Development Rabo International Rabobank Foundation

7. Rabo Mobiel in the Netherlands

8. Rabo Mobiel in the Netherlands

9. Mobile Banking Apps : Different Platforms Windows Mobile(6.0, 6.1, 6.5) iPhone & iPad Touch(all OS types) Samsung Jétwidget & pre-installed apps Android

10. Other Apps Offered by Rabobank Nederland MobileBanking SMS Betalen(SMS P2P Payments) RekeningDelen(sharing a bill) Interpolis Schaadhulp(settling & recording damage) Sports &SponsorshipApps SMS BetaleniPhone SMS BetalenAndroid SMS BetalenJava (J2ME)

12. Landscape of Mobile Banking and Payments 1990-1999, continues … 2002, continues … (quite popular) IVR Banking & Payments SMS Account Activity Alerts Multi-ChannelBalance-Checking SMS Account Activity Alerts Others … Future … ? Full-Service Mobile Banking Remote Payments and Electronic Wallets Mobile Contactless Payments (NFC) Full-Service Mobile Banking Java WAP STK USSD iPhone Windows Mobile 6.5/7 Samsung JET, Bada Android Etc. VISA MobileAndroid ( ?) Note: not exhaustive, there are other technologies used in the world, but these are the major ones.

13. Case Study Markets : Some Launched MFS Examples

14. Xapit Instant Banking (Zambia)

15. Zanaco 40+ years of success, growth and stability, successful expansions, privatisation and IPO 450.000 customers, 1.200 employees, 50 branches Year-on-year profitability, K3 bln in assets, mature risk management regime. Healthy account portfolio including: Retail: account services, personal loans, e-banking, Xapit, remittances, cash services Corporate: credit facilities, e-banking, cash services, treasury and investments, trade services Transformation to modern banking tools: 100+ ATMs, internet banking, mobile banking POS collaboration with Zampost, rolling out to ~100 new locations in 2011 Rabobank: 49% (2007) ZamPostPOS

16. Distribution : Zanaco Branch & ZampostNetwork

17. Images of Zanaco

18. Xapit Instant Banking Launched in late 2008, USSD mobile banking Also, Xapit ‘account’ = welcome pack + mobile banking + ATM card Sign-up for an account and get mobile banking and a VISA debit card in 5 minutes. 250.000+ customers to-date 20+ bill payment partners, prepaid airtime, etc. June 2010 Usage: 21 transactions per month (average) All MNOs: ZAIN, MTN & CellZ *444#

19. Case Study : FMB Mobile (Malawi)

20. First Merchant Bank : FMB Fast Account FMB 19 branches, corporate and retail banking, 600 employees 1/11 commercial banks in Malawi FMB Mobile / FMB Fast Account Launched summer of 2010, 50.000+ customers to-date (and new bank accounts) Successful to-date – packaging of ATM card, bank account and mobile banking functionality Includes immediate (small) balance on customers’ account, facilitating usage of the new product

21. Case Study: NMB (Tanzania)

22. Case Study: NMB mobile (Tanzania) NMB: National Microfinance Bank Ltd. 1,9 mln customers Consumer and small-business focused Dedicated to providing sustainable, viable access and direct financial services. Proud of our history of support for Tanzanians of all income levels, government and businesses. Close By Extensive (largest) network with 145 branch locations and 300+ ATMs nation-wide. Branch network designed to cover minimally 80% of Tanzanian districts. Empowering Entrepreneurs Paying special attention to micro, small/medium-sized and rural business. Tanzanian agriculture is close to NMB’s heart (KILIMO KWANZA) and they play a roll in all parts of the supply chain. Rabobank : 35%

26. Features the most desired consumer applications: Balance Inquiry Mini-Statement Money transfers to any NMB account TanescoLuku Prepaid Electricity Purchase Vodacom and ZAIN Prepaid Airtime Top-Up NMB Services like ATM card block, settings Works with NMB Personal Account, TPDF Account, Student Account, Wisdom Account Simply dial *155*66# to access No need to fill-in forms or visit an NMB branch to sign-up, simply dial *155*66*123# NMB mobile: Launched in August 2009 400.000+ active customers to-date Prepaid airtime, bill payment, prepaid electricity Vodacom, Zain, Tigo, Zantel (99% mobile penetration) SMS Alerts to 220.000 customers monthly NMB mobile NMB mobile 1. Balance Enquiry 2. Mini-Statement 3. Money Transfer 4. Prepaid Services 5. Other Services 6. Help

27. Case Study: BPR (Rwanda)

28. BPR & BPR Mobile Banking Banque Populaire du Rwanda 1.3 mln customers, 1.400 employees, 191 locations nation-wide Rabobank: 35% (2008) BPR Mobile Banking Launched September 2010, 50.000+ customers to-date USSD II mobile banking & SMS Alerts Prepaid airtime, bill payments, RECO electricity, DStv, StarTimes MTN & Tigo (90%+ mobile penetration), Rwandatel Q1 2011 Rwanda Revenue Authority, public transportation, Tigo Cash, supply chain payments, web shop payment and retail (merchant platform) coming in Q1 2011

29. BPR Branch Network

30. Let’s ask our customers first … Would you trust a mobile phone for transfers and purchases? Would you like to carry less cash? Would you use a mobile phone for banking? Would you be willing to pay for it if it added value? Results: BPR Mobile Banking customer survey, April-May 2010, 7 branches & 170 customers interviewed.

31. Mobile Banking Balance Inquiry Mini-Statement Money Transfer (BPR Accounts) Prepaid Airtime MTN Tigo (pending) Bill Payments RECO Prepaid Electricity StarTimes Africa TV DStv MTN Postpaid Bill Tigo Postpaid Bill (pending) Bank Services Change BPR Mobile Banking PIN Change Language Order Cheque Book Help What can you do? Also: Free SMS Salary Alerts

32. How do customers sign up? Customer signs-up at a connected branch at the Customer Service desk They identify themselves with their ID We validate ID and automated account We then search for the customer on the mobile banking system website (by account no.) and enter their mobile phone no. BPR Mobile Banking will send a SMS to the registered phone no. with a welcome message and an initialmobile PIN Newly registered customer will dial the USSD code and will be prompted on first logon to change their mobile PIN

33. BPR Mobile Roadshows & Sign-up Success

34. BPR Mobile Roadshows & Sign-up Success

35. BPR ATMs (new "BPR Quickcash" formula) 20 ATMs currently connected ATMs 14 are located in various branches in Kigali 6 in up-country branches (Huye, Nyanza, Nyamabuye and Bugesera) 100+ ATMs online in 2011 throughout Rwanda Increased ATM usage through new marketing and promotions, usability campaigns and POS roll-out

36. E-Banking Call Centre BPR call centre successful operating, incl. ACD/call queue system Inbound and outbound calling to improve usage, sign-ups and customer satisfaction 650-1.000 calls per day Service level is 85%+ Current working hours: Mon-Fri: 8:00am-6:00pm / Sat: 8:00am-4:00pm Upscale to start servicing other bank services (e.g. cards, loans, salary enquiries, complaints, balances) thus accommodating additional call volumes as a result

37. Channel Management ChannelStrategy ChannelDevelopment ChannelMarketing ChannelManagement

38. Thinking Like the Customer Orientation Provisioning Changes / Updates Service Deactivation 2. 1. 3. 4. Service Request Customer Problems Service De-Provisioning In-Life Usage Orientation: product values & messages, marketing campaign, information to customers & branches, offer / service definition, tariffing Service Request/Provisioning: request-initiation, back-office processes & systems, customer confirmations, error handling & exception cases, reporting In-Life Usage/Changes/Updates/CS: daily usage & reporting, faults & change management, customer queries & problems Service Deactivation/De-Provisioning: customer-initiated processes, bank-initiated processes (e.g. fraud or misuse), back-office processes

39. The Challenge: How to generate successful formulas? Currently has / uses another bank product YES Inexpensive, Standardised Savings Products Too poor Redistribution Zone Target / Addressable Market Does not have access to the product Excluded by design Agents, Branchless Banking, Mobile Excluded by default Development Zone Does not have / use a bank product Does not want the product Awareness & Usability Campaign Has access to the product, but does not use it Potential users Enablement Zone YES Based on: http://www.bankablefrontier.com/assets/pdfs/access-frontier-as-tool.pdf

40. Thank You!