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Solutions for a connected world

ACCU, Software Group and TemenosE5, 19th May 2016, 14:30-15:15

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ACCU Payment Platform: Philippines Strategy

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OverviewOverview

1. Global Challenges

2. Philippines Asia Payment Platform (APP)

3. Why Software Group and Temenos?

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Small CU Sustainability

Regulatory Burden Payments

Market Disruptors

Young Member Growth

World Council of Credit Unions - Global Challenges 4

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Non Traditional Entrants and Competition 5

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Philippines - A Digital Nation 6

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A Question of Identity

ABC COOP

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ABC COOP

Money moves out of the credit union system to the competition

Members pay high fees to make payments on the competitors platform in exchange for a small commission

The fees paid by members are lost to the credit union

Competitors begin offering loans and other products directly

The credit union base goes into decline

Credit Unions give away their members to competitors 8

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Credit Union self-determination

Networks are strongest when they cooperate

Need to own their own destiny

Keep the member’s spending inside the credit union system

Sustainability through new revenue from services denied to the competition

Members of the movement, not only the branch where they joined

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Why Temenos and Software Group?

Pre-integrated banking and payment solution

Extensive industry expertise

Deep understanding of clients’ business

Innovate technology

Agile Deployment and Access to Scale (Cloud)

Unrestrained distribution

Low Risk Deployment

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Solutions for a Connected World:ACCU Payment PlatformKalin Radev, CEOTCF May 2016

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Software Group is:

an advanced technology company;

focused on end-to-end solutions for the financial sector.

Software Group’s experienced team of professionals:

is committed to the efficient delivery of innovative solutions;

has an outstanding track record of handling complex development projects.

Software Group

At Software Group we prides in delivering products and services which adhere to the principles of quality, transparency and affordability.

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• Brisbane, Australia• Sofia, Bulgaria• Accra, Ghana• Trichy, India• Nairobi, Kenya• Guadalajara, Mexico• Manila, Philippines• Cairo, Egypt

• Amsterdam, The Netherlands

• Bangalore, India• Chisinau, Moldova• Dhaka, Bangladesh• Geneva, Switzerland• Harare, Zimbabwe• Islamabad, Pakistan• Kampala, Uganda• Lagos, Nigeria• Lilongwe, Malawi• Minsk, Belarus• Moscow, Russia• Naypyidaw, Myanmar• Nicosia, Cyprus• Paris, France• Port Louis, Mauritius• Washington D.C., USA

Key numbers 13

delivered projects

presence in 50+ countries

full timeemployees

250+

50+

300+

regional support partners

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offices

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The Association of Asian Confederation of Credit Unions (ACCU)

Created in 1971 serves more than 21,947 credit unions 38.1 million individual members26 countries 34 affiliates

Membership to ACCU is open to organizations with membership of at least 20,000 individuals or 1%

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ACCU Payment Platform

Business case main goals:

Agile deployment and Access to Scale (Cloud-to-Cloud);

Increasing access to Digital Channel Usage;

Seamless delivery through well established synergy based on numerous integrated projects.

Software Group & Temenos are at the heart of the Asia Payment Platform strategy, bringing extensive experience and increasing access to financial services through innovative technology.

Innovative Payment Platform

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Expand Access for Credit Unions

Alternative Delivery Channels provide easy access -Anytime, Anywhere

ATM Coop Teller Mobile App POS

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Small CU Sustainability

Market Disruptors

World Council of Credit Unions – Global ChallengesWorld Council of Credit Unions – Global Challenges 17

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Member relationships growth;

Members to be integrated to the CU community;

Credit Unions need to retain their vision;

Sustainability through new revenue from innovative services;

Credit Union networks are strongest through cooperation.

Credit Unions self-determination 21

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Payment Ecosystem at national level

Federation/National level:

Payment Ecosystem Administration

Services, Settlement and Support Biller Management Customer On-boarding

Credit Unions (Over the Counter):

Teller Services Money transfer Payment Services

Clients (Self – Services)

Money Transfer Payment Services

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• BancNet• Bill Aggregator• Remittance Partner

CBS Payment Platform

CU BranchTeller Web Portal

• Account Opening• Cash Deposit• Cash Withdrawal• Fund Transfer• Send/Receive Money• Bill Payment• Balance Inquiry• Mini Statement

AVAILABLE ON-LINEVIA INTERNET/

WIFI/GPRS

Client’s MobileSmart App

3rd Party Integrations

• Fund Transfer• Send/Receive Money• Bill Payment• Balance Inquiry• Mini Statement

ATMCU ATM

• Fund Transfer• Send/Receive Money• Bill Payment• Balance Inquiry• Mini Statement

3rd Party Integrations

Platform AdminPlatform Admin Portal

• User Administration• Fees, Limits, Commissions• Payment Gateway• Biller Management• Alerts & Notifications Mgmt• Reconciliation & Settlement• Transaction Monitoring & Auditing• Blacklisting• Reports• ATM Device Monitoring & Management• POS Device Management

• Card Production• Card Management• Issues & Complaint

Management

Card Management Module

Temenos / Software Group Cloud

POSCU POS

• Fund Transfer• Send/Receive Money• Bill Payment• Balance Inquiry• Purchase Goods

Del

iver

y Ch

anne

ls

ACCU Payment Platform, Philippines Instance 23

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Payment Platform Benefits 24

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Payment Platform Benefits

Smart Phone or

USSD

Funds SettlementSettles electronic funds transfer on accounts

Customer App- Fund Transfer- Send/Receive Money- Bill Payment- Balance Inquiry- Mini Statement

Settlement Bank

Mobile Banking

Web-based portal- Account Opening- Cash Deposit- Cash Withdrawal- Fund Transfer- Send/Receive Money- Bill Payment- Balance Inquiry

Teller Services

Realtime Payments- Integrated with CBS/MIS- Transaction processing- Inter-bank transfers- Intra-bank transfers- OTC Services

Bulk Electronic Funds & Voucher Transfer- Upload data of users to send payment and vouchers in bulk

Pay BillIntegration to existing utility companiesIntegrate with Payment Aggregators

Communications- USSD - SMS- Mobile DataAirtime PurchaseIntegrate with mWallets

Integration with FSPs

Payment Services

Telcos

Government / NGO

Administration• Integration with CBS• Transaction monitoring • Business logic for all connected systems• Sends SMS alerts & Notification• Agent management• Auditing• Blacklisting

Admin WebUser interface for web browser

Integration Layer + Payment Gateway (UT Route)

Payment Platform

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Return on Investment (ROI)

Total ActivePFCCO Members Needed by PFCCO

Assumptions

Average Transaction Fee PHP 25

Average Transaction per Member per Month 3

Average Members per Credit Union 5,000

Percentage of Uptake by Members 50%

Number of Credit Union On Boarded per Month 2

Transaction Revenue Split

ACCU 5%

National Association 25%

Credit Union 75%

Investment & Costs

Technology PHP 3,456,412

Operations TBC

Marketing TBC

25K

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Conclusion 27

Right Technology

Right Partners

Right Solution

Connected world

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Thank you