Branchless banking in Pakistan extends the reach of conventional banking to underserved populations. Easypaisa, a mobile financial service provider, targets Pakistan's 180 million people, only 12% of whom have access to formal financial services. Easypaisa allows customers to pay bills, transfer money, save money, and get insurance through an ecosystem that includes over-the-counter agents and a mobile account channel. It has been well received, processing over 58 million transactions in 2012, and has the potential to increase financial inclusion in Pakistan to 41% by 2020 if 35% of adults become mobile financial service users. Key success factors for mobile financial services include building an extensive agent network and offering convenient products to ladder customers from assisted to fully

1. Branchless Banking
The Easypaisa Way

2. Pakistan is under-banked…
…Butmost
people are
involuntarily
excluded

3. Customer needs
180 million people
12% have access to
formal financial services
35% are using informal
financial services
How do they…
• Pay Bills
• Transfer Money
• Save Money
• Get Insurance

4. BB extends reach of conventional banking

5. Attractive value propositions for all parties

6. Easypaisa Ecosystem Overview

7. The Easypaisa Service
WHAT
Basic Financial Services
MT - the flagship product
HOW
Over-the-counter or handset
WHOM
Targeting the unbanked
For everyone, not only Telenor
customers
VALUE PROPOSITION
Immediate transfer
19,000 agents in 900 cities
Convenience at right price

8. Over-the-Counter (OTC) Channel
• Customers don’t have to perform transaction themselves
• Well trained merchants assist them by performing transaction on
Assisted Service their behalf
• A solution for low literacy levels
• Allows to break the trap of agent network expansion versus
Chicken and Egg Trap customer growth by tapping into 100% of the market
• Grow channel confidence and trust
Ladder customers to • Shift satisfied customers to own network through M-Wallet
Mobile Wallet

9. Mobile Account Channel
easypaisa Mobile Accounts are virtual
Bank Accounts opened for Telenor
subscribers.
Users only have to go to a Merchant to
‘Deposit Cash’ or ‘Withdraw Cash’. All
other services can be accessed on the
user’s mobile phone at any time

10. Products

11. easypaisa is well received
Winner of MMT Award for “Best New Entrant” in 2010
“Between now and the end
of 2011 million of
consumers are expected to
directly benefit from “easypaisa is probably the model for the
easypaisa services” future, and not M-Pesa model”
“Branchless banking is a
milestone to substantially
What is unique about increase the financial services
easypaisa is the business outreach to the un-banked
model. Telenor owns communities”
part of Tameer and that
provides for unique
advantages on the cost
side and benefits in
terms of product design. “Offering millions of people
Second, the partnership in Pakistan without bank
illustrates the possible accounts the chance to
tie-ups between a MF make financial transactions
provider and a MNO. at the touch of a button”.

12. Easypaisa has already revolutionized
Financial Services in Pakistan
• Transactions: 9 mill in 2010 to 58 million in 2012
• Throughput: PKR 15 bill in 2010 to PKR 113 bill in 2011
• Market share of Domestic Remittance: 10%
• “Best Mobile Money Transfer of the Year” by MMT in 2010
• 2nd fastest growing BB service 2 years after launch

13. Potential of Branchless Banking
35% of adult population could be MFS users by 2020, reducing number of
un-banked 20% by 2020 and increasing financial inclusion to 41%
Note: Baseline of financial inclusion assuming growing with GDP/FI ratio as developed by World Bank/Honohan (2008), adjusted to peer countries
Source: Asia Development Bank; Axco Insurance Market Information; CGAP; FDIC; IFC; GSMA; Honohan (2008): MixMarket.org; World Bank; BCG Analysis

14. Key success factors for successful MFS

15. THANKYOU