Smart locker's value for commercial banks,

1. Smart Bank Locker’s Value For
Commercial Banks
Shanghai Locker-solution Smart Science & Technology Co., Ltd
Sharing Economy is the new normal. Email：Ivyhu@baoqingsmart.com

2. Sharing Economy is the new normal.
The Background
As the electronic payment and mobile payment are growing
rapidly, Fintech companies are taking over original bank
businesses at an annual rate of about 25%.
Sharing Economy is the new normal.
Community Bank is a growth point.
One of the trend for banks is
integrated management.
There are 15 banks in China whose
percentages of not doing business
on bank counter exceed 90%.
Some of the population has not yet
opened a bank account

3. Sharing Economy is the new normal.
Non-Cash Transactions - Digital Bank Locker
Customer Logo
The Lamp Panel
15 Inch Touch Screen
Keyboard
QR code Scanning
Weight: 352Kg
Machine Size: 2098 * 350mm

4. Sharing Economy is the new normal.
Cash Transactions-ATM locker(1)
ATM + parcel locker

5. Sharing Economy is the new normal.
Cash Transactions-ATM locker(2)
ATM + bank locker

6. Sharing Economy is the new normal.
Cash Transactions-ATM locker(3)
ATM + parcel locker + bank locker

7. Sharing Economy is the new normal.
Why SME banking
needs to be
separated with retail
banking?
Why do I need to use
bank’s self-service
equipment rather than
my phone to do bank
business?
Why do I need to go to a
bank outlet to do bank
business?
Why not share bank
equipment with
other banks?
Questions that Worth Thinking
Two questions from bank clients Another two questions for banks

8. Sharing Economy is the new normal.
Compared with the outlets,
it’s a tremendous cost
saving.
Compared with delivering
to your door by courier, it
costs much less while
delivers at any time
Compared with manual
service, bank locker can
provide 7×24 service. It’s
better to adopt agency and
franchise model.
Easy to share with multiple
banks and logistics
companies .
Benefits of Bank Locker

9. Sharing Economy is the new normal.
Compared with VTM
Type VTM ATM LCOEKR
Operation Time 1-15 minutes; do not rely on APP 5 seconds; reply on APP(do it in fragmented time)
Way to Receive In person; time-consuming Can receive on one’s behalf; more convenient and faster
Instructor Virtual people in the unified back-end Agency and franchise model, humanized, strong sense of trust
Timeliness Immediately delivered on-site
Booked by APP; unified processing in a centralized service center for distribution ; could go to
an outlet for better timeliness
Where to place Areas where self-service equipment is popular Small towns and rural areas
Business types Depends on the equipment models Manual processing in the back-end, covering all business types
Material delivery function
One-way delivery: can get but can’t put in materials like
copy of ID card
Two-way delivery: can get as well as put in materials
Business Type Retail banking Retail banking and SME banking
Sharability Poor Strong, could provide value-added services like parcel delivery and luggage deposit
Model numbers
Many; need several models to satisfy different
businesses
Few; only to adjust the parcel size
Maintenance Complex; many parts with high maintenance cost Simple; could develop agents
Price High Low
Occupied area Small; better with in-bank mode Bigger(0.5-3㎡); off-bank mode; better for indoor places
Essence Least human intervention to guide virtualization
front-end, back-end or manual service; variable places and separated businesses, closer to the
customer

10. Sharing Economy is the new normal.
Cost Saving Advertising Active Users Traffic Commission Point
Save bank outlet
cost and staff cost
Bank logo is a kind
of advertising, to
improve bank’s
public image
Increase the rates of
opened accounts
and active cards
Use APP to open
lockers and attract
traffic, providing
entrance to fund,
insurance, financial
services
Various payment
commission
Point redemption
for parcel delivery
Operating Income (1)
Self-owned

11. Sharing Economy is the new normal.
Rent to other
banks
Rent to logistics
companies and
e-commerce
companies
Rent to
individual for
luggage deposit
Operating Income (2)
Rent

12. Sharing Economy is the new normal.
Screen ads
Rolling ads serving multiple customers
Locker ads
Ads printed directly on the surface of lockers
Operating Income (3)
Advertising Rates
Locker adsScreen ads

13. Sharing Economy is the new normal.
Mode
Benefits
• Ordinary goods use room temperature locker
• Fresh foods use refrigerator locker
• Increase some revenue
• Use bank card for payment and get point reward to
increase customer retention
Operating Income (4) — Goods for Sale
Lockers with goods for sale + online mall

14. Sharing Economy is the new normal.
Financial Model
Costs is based on the amount of 2000 machines
ATM is not included in costs/benefits
Cost Name Use Unit Price Number 5 Years Total
Machine fee Hardware and
software
35,000 2,000 70,000,000
Electricity bill Equipment
electricity
50/month 2,000 6,000,000
Telecom fee 4G network access 20/month 2,000 2,400,000
SMS fee Inform customers 0.05 2000*50*30 9,000,000
Venue fee Equipment
occupied area
400/month 2,000 48,000,000
Operation fee Daily management 100/month 2,000 12,000,000
Maintenance fee Accessories repair
included
200/month 2,000 24,000,000
Total 171,400,000
(e.g. China/RMB)

15. Sharing Economy is the new normal.
Benefits
Branding is invaluable
Benefit Name Unit Price Number Monthly Total of Benefits 5 Years Total of Benefits
Rent income 1/box 2000*50*30 3,000,000 180,000,000
Ad income 1500/month 2,000 3,000,000 180,000,000
E-commerce
Self-owned benefit
Other sales income
from attracted traffic
Asset appreciation in
5 years
Total 360,000,000
(e.g. China/RMB)

16. Sharing Economy is the new normal.
Establishment Mode
Funded by bank
Funded by bank and logistic company
Funded by several banks(similar to Visa mode)
bank provides maintenance and operation, outsourcing
Bank in charge of media transferring
logistic company increases the delivery capacity with one more way to delivery
Stronger control over the software system, more likely to form a scale effect; third-party is weak
in resource mobilization and system docking.

17. Sharing Economy is the new normal.
Reference - GT Bank (1)

18. Sharing Economy is the new normal.
Reference – Hong Kong (2)

19. Sharing Economy is the new normal.
1. Need time and extensive service coverage to cultivate customer habits
2. Ad is valuable only when it covers a wide range of people
3. Large scale can only be realized when partnering with other banks or logistic companies
A small number of ATM locker tests can only be technically verified, unable to verify from the business model.
Only a large number can highlight the value of the model:
Challenge 1 - Need Scale Effect

20. Sharing Economy is the new normal.
The risk control model needs
to change.
Challenge 2 – Don’t Underestimate the Power of Trend

21. Sharing Economy is the new normal.
Challenge 3 – Organizational Restructuring
Need strong execution & trial and error
Need technical support for hardware and software
Need extension workers to seek venues with agency and franchise model
Build a centralized service center to process a variety of business types like debit
card,credit card, U-key, passbook, check, company notes and personal bills
Need plenty of money

22. Sharing Economy is the new normal.
Challenge 4 – Collaboration
APP Development
APP software development is a transformation for the original IT system which
requires great attention from enterprise management and collaboration of each
department. The business is similar to VTM, requiring development process.
Rent to logistic companies and other banks
System docking technology is not as difficult as business negotiations. It also works
without docking . Data will be concentrated in an ATM locker platform where you
can query at any time.

23. Sharing Economy is the new normal.
Our team has more than 10 years of experience in banking self-service equipment.
Since 2010, we have begun the R & D and sales for various smart lockers. 21 types of
locker are on sell now. With expertise in smart locker’s hardware and software, we
provide a complete solution to customers.
With a complete supplier system, the business of electronic products is growing rapidly
in China, providing great advantage of quality and cost.
Locker Solution Company

24. CONTACT US
Shanghai Locker-solution Smart Science & Technology Co., Ltd
Contact me：Ivy Hu Email：Ivyhu@baoqingsmart.com