Branchless Banking

The Easypaisa Way

Pakistan is under-banked…

…But most people are involuntarily excluded

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

BB extends reach of conventional banking

Attractive value propositions for all parties

Easypaisa Ecosystem Overview

The Easypaisa Service

WHAT Basic Financial ServicesMT - the flagship product

HOW

Over-the-counter or handset

WHOMTargeting the unbankedFor everyone, not only Telenorcustomers

VALUE PROPOSITIONImmediate transfer19,000 agents in 900 cities Convenience at right price

Over-the-Counter (OTC) Channel

• Customers don’t have to perform transaction themselves

• Well trained merchants assist them by performing transaction on their behalf

• A solution for low literacy levels

Assisted Service

• Allows to break the trap of agent network expansion versus customer growth by tapping into 100% of the market

• Grow channel confidence and trustChicken and Egg Trap

• Shift satisfied customers to own network through M-WalletLadder customers to

Mobile Wallet

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

Products

“easypaisa is probably the model for the future, and not M-Pesa model”

easypaisa is well received

“Branchless banking is a milestone to substantially increase the financial services outreach to the un-banked communities”

What is unique about easypaisa is the business model. Telenor owns part of Tameer and that provides for unique advantages on the cost side and benefits in terms of product design. Second, the partnership illustrates the possible tie-ups between a MF provider and a MNO.

“Between now and the end of 2011 million of consumers are expected to directly benefit from easypaisa services”

“Offering millions of people in Pakistan without bank accounts the chance to make financial transactions at the touch of a button”.

Winner of MMT Award for “Best New Entrant” in 2010

Easypaisa has already revolutionizedFinancial 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

Note: Baseline of financial inclusion assuming growing with GDP/FI ratio as developed by World Bank/Honohan (2008), adjusted to peer countriesSource: Asia Development Bank; Axco Insurance Market Information; CGAP; FDIC; IFC; GSMA; Honohan (2008): MixMarket.org; World Bank; BCG Analysis

35% of adult population could be MFS users by 2020, reducing number of un-banked 20% by 2020 and increasing financial inclusion to 41%

Potential of Branchless Banking

Key success factors for successful MFS

THANKYOU