Transforming lives in Africa through bespoke digital solutions

Transcription

1 Transforming lives in Africa through bespoke digital solutions Ecobank_on for International Organisations

2 Contents Book 1 Ecobank_on for International Organisations (Overview) Book 2 Digitalisation and Mobile in Africa Book 3 General Solution Set Up for International Organisations Book 4 Mobile Solutions Overview Book 5 Technical and Security Book 6 Ecobank App and the Xpress Account Book 7 Pre-Paid Cards Book 8 Appendix Mobile Network Operator (MNOs) Partnering

3 Ecobank_on for International Organisations (IOs) Bespoke digital solutions. To reach the last mile Book 71 / 78

4 Overview As part of Ecobank s long-term drive to promote inclusive financial services, the bank has invested heavily in the digitalisation of all its banking solutions. In line with this commitment comes a new generation of bespoke solutions for International Organisations to enable them to reach the last mile and transform lives across Africa. We are proud that our work is set to making a meaningful and lasting contribution to the developmental success of the continent and we look forward to working with you. IO/NGO Ecobank Beneficiary SEND REACH DELIVER Digital transfer capability for IOs Send funds speedily to recipients and beneficiaries direct to their mobile phones or via a pre-paid card Easy streamlined payments across Ecobank s 36 country platform Manage, set-up, monitor and disburse funds swiftly through the Ecobank OMNI platform Last-mile delivery and redemption of funds Ensure funds are received through secure and easy delivery and redemption

5 SEND directly REACH easily DELIVER securely Send individuals funds directly and at speed - Into an Xpress account via Ecobank mobile USSD to traditional phones - Into an Xpress account via the Ecobank mobile app to smartphones - onto an Ecobank prepaid card - or into a mobile wallet held with one of our many Mobile Network Operator partners Ideal for grants, disbursements and more Build bespoke one-stop payment solutions through integration on OMNI (Ecobank s Pan- African corporate e-banking portal) to reach beneficiaries across 36 African countries Disburse funds with greater ease through bulk-payments (Even up to 10,000 recipients in one run) Keep track of payments in one secure solution providing automated payment monitoring and reporting mechanisms Ensure delivery to last-mile beneficiaries via Ecobank s secure digital payment ecosystem Harness Ecobank s network of ATMs/ agents where beneficiaries can easily redeem their money Fund prepaid cards or mobile wallets with our 3rd party partners

6 Digitalisation and Mobile in Africa Book 2 / 8

7 Mobile usage has surged across Africa Over the past decade mobile phone usage has surged across Africa, driven by heavy investment from mobile network operators (MNOs), digital innovation, falling prices for handsets and rising purchasing power. The number of mobile subscribers in Africa has risen from 87million in 2005 to an estimated 772 million in 2016, averaging 13% growth over the past five years. 1 In terms of unique mobile subscribers there will be an estimated 589 million by 2016 which tells us that, on average, each subscriber owns 1¼ cellular devices. This is almost twice the growth rate of Asia and Pacific, and five times the Americas. Growth rates have been even faster in Sub-Saharan Africa, where annual subscriber growth is forecast to grow at 6.2% CAGR in , faster than world rate of 4.2%. 2 By 2020, GSMA forecasts that Africa will have 900 million mobile subscribers. 900 million mobile users in Africa by ITU. 2 GSMA. Growth of mobile and Internet usage in Africa, 000s subscriptions Source: ITU Mobile-cellular telephone subscriptions Individuals using the Internet

8 Mobile penetration rates remain low Despite the sharp growth in mobile usage, penetration rates in Sub-Saharan Africa are low compared with other emerging markets. An estimated 44% of the region s population had access to mobile services in 2016, compared with 59% in MENA, 65% in Asia Pacific and 70% in Latin America. Even at current growth rates, penetration will only rise to 50% of the African population by However, this aggregate figure masks huge disparities across African markets, notably between urban and rural areas. In many African cities mobile access is 100%, with many Africans owning several mobile phones, while in remote areas usage is minimal owing to the lack of a reliable network. Although mobile phone usage may not grow fast enough to bring all Africans onto mobile networks, by 2020 there will be over 900 million African mobile consumers, who will be increasingly connected to digital payment and services networks. Only 44% of Africans had access to mobile services in 2016 Mobile penetration rates, % of total population Source: GSMA. Region World Asia Pacific Latin America MENA SSA 44 50

9 New technology will drive digital inclusion The gradual switch of African consumers from feature phones to smartphones, coupled with the rising availability of mobile internet services, will drive financial inclusion and the expansion of mobile digital services. Ownership of smartphones in Sub-Saharan Africa surged from just 4% in 2010 to 22% in 2015 and is forecast to rise to 55% by 2020, while feature phone usage will drop from 94% in 2010 to 38% by Mobile Internet and Broadband services will also increase their market share from 28% in 2016 to a forecast 39% by Mobile Broadband services are currently used by 10-15% of the population in key Sub-Saharan African markets, notably in Nigeria, Ghana, Côte d Ivoire, Angola, Kenya and Ethiopia. However, growth of this segment is constrained by patchy or non-existent 3G and 4G networks in rural areas (where most of the population lives), the lack of digital skills and awareness, poor local content and the relatively high cost of mobile Internet services, notably mobile Broadband. Share of connections by device type, SSA Source: GSMA Smartphone Data-only devices Basic or feature phones

10 Technology mix in SSA, % of total Source: GSMA G 3G 4G Mobile broadband subscriptions, % of population, 2015 Source: GSMA. Country % South Africa 28 Ghana Côte d Ivoire Zimbabwe Angola Nigeria Ethiopia Mozambique Kenya SSA (average) Senegal Zambia Uganda 8 Cameroon DRC 3 3

11 Access to financial services is improving, leveraging on mobile phones The World Bank s Global Findex estimates banking penetration in Sub-Saharan Africa at 28% in 2014, a rate that has grown weakly over the past decade. This is well below the rate in other developing regions, notably East Asia and Pacific and Latin America. However, mobile networks and smartphones are providing a range of alternative payment, lending and savings services that are helping to boost financial inclusion. Findex estimates that 12% of Sub-Saharan Africans have access to mobile money, half of these without a bank account, which brings up the rate of financial inclusion to 34%, leaving around two thirds of the population unbanked. Financial inclusion rate up to 34% Account penetration, Adults with an account (%), Source: Global Findex database 69 World Mobile money account only Financial institution and mobile money account Financial institution account only East Asia and Pacific Europe High-income and Central OECD Asia economies Latin America and Caribbean Middle East South Asia Sub-Saharan Africa

12 The importance of mobile banking in driving financial inclusion cannot be understated only 2% of adults worldwide have a mobile money account, versus 12% in Sub-Saharan Africa (half of these are a mobile money account only). Mobile money was responsible for nearly all the growth in account penetration since In East and West Africa mobile money penetration rates have soared, led by Kenya (82%), Tanzania (45%) and Côte d Ivoire (27%). In Kenya the share of mobile payments reached an estimated 79% in FY2015, supported by the revolutionary M-Pesa network. Mobile money penetration among registered users in key African markets, 2016 Source: Autorité de Régulation des Télécommunications (ARTCI) 90% 80% 70% 60% 82% Communications Authority of Kenya (CAK) 50% 40% 45% Tanzania Communications Regulatory Authority (TCRA) 30% 20% 27% 10% 0% Côte d Ivoire Tanzania Kenya Market share of payment methods in Kenya Source: Central Bank of Kenya (CBK) 90% 80% 70% 70% 68% 71% 67% 64% 73% 79% Ecobank Research 60% 50% Mobile 40% POS 30% Cards EFTs Cheques RTGS 20% 10% 0% FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015

13 Mobile banking can draw on Sub-Saharan Africa s savings and remittance culture The expansion of mobile financial services to Sub-Saharan Africa s unbanked offers huge opportunities to boost savings, lending and remittances. The region already has a culture of saving, most of it in the informal sector (money agents, savings clubs and under the mattress ). The World Bank Findex estimates that 60% of Sub-Saharan Africans save regularly, above the world average. Once they have a formal bank account the proportion rises to 81%, the highest rate in the world. Moreover, 13% of adults in Sub-Saharan Africa are unbanked yet still save semi-formally. By converting these savings into formal accounts the region s account penetration could potentially rise by 70 million people. Remittances could also benefit from mobile banking platforms. Half of all adults in Sub-Saharan Africa regularly send or receive remittances, the highest proportion for any region in the world. But most of these remittances are distributed in cash, especially in the agricultural sector, offering huge potential to distribute these flows over the mobile platform. And mobile banking could also transform lending to ordinary Africans and SMEs. In Sub-Saharan Africa 42% of all borrowing comes from family and friends, the highest rate in the world, indicating the lack of formal bank lending opportunities. 60% of Sub-Saharan Africans save regularly Payment channels for domestic remittances 48 Adults sending or receiving remittances in the past year, by method (as% of all adults), 2014 Source: Global Findex database In cash only Digital payment channels Through an OTC transaction Through an account 12 East Asia and Pacific 8 Europe and Central Asia 10 Latin America and Caribbean 4 Middle East 5 South Asia Sub-Saharan Africa

14 Sources of new formal and informal loans Adults borrowing from source in the past year (%), 2014 Note: Respondents could report borrowing from more than one source. Source: Global Findex database. Financial institution Family and friends Private informal lender Retail store (store credit) East Asia and Pacifi c Europe and Central Asia High-income OECD economies Latin America and Caribbean Middle East South Asia Sub-Saharan Africa 0% 10% 20% 30% 40%

15 MNOs are leading the charge Since 2008 the success of Safaricom s M-Pesa has motivated MNOs to deploy mobile money platforms across SSA, securing them an 83% market share in Although most MNOs operate their mobile money businesses in a single country, Pan-African MNOs are launching operations across multiple countries. Airtel and MTN are leading the race, with live mobile money deployments in 12 and 11 countries, respectively. Distribution of live deployments in Middle Africa Source: Ecobank Research and GSMA MNOs Banks Independent

16 MNOs: Number of countries with live deployments 14 Source: Ecobank Research and GSMA Airtel (Bharti Airtel) MTN Orange Tigo

17 General Solution Set Up for International Organisations (IOs) Book 3 / 8

18 Account services provided: Ability to open current account in multiple currencies Ability to open resident or non-resident accounts Ability to provide investment services (call and fixed deposits) Central customer service desk one single point of contact to coordinate and ease account opening across the Ecobank network Ability to provide account statement reports in multiple formats Ability to download reports through our corporate internet banking platform Ecobank Omni Ecobank Omni for fully automated electronic payments

19 Electronic Banking Platform/Ecobank Omni: Ecobank Omni offers a comprehensive suite of flexible online Cash Management solutions all designed to help IOs increase productivity, manage cash flows and help the customer with an efficient management of its working capital cycle.

20 Overview Single access for balance reporting and transaction initiation Choice of connection routes: via internet via customer back-end system directly integrated with Ecobank Omni (Host-to-Host) via SwiftNet FileAct Key features Integrated Access Single sign-on access to accounts at Ecobank group or other banks Multi-geography, multi-language and multi-currency platform Support all payments, collections and liquidity management needs Reporting Real-time access to account information Statements available in multiple formats: PDF, CSV, Excel, AFB120 and MT940 Balance consolidation into a single base reporting currency Transaction Initiation multiple payment types including: Book to Book transfers Domestic Funds Transfers (ACH or RTGS) Cross Border Funds Transfers (foreign currency) Inter Affiliate Transfers (all payment types) Manager s Checks Cash Payments (over the counter) Mobile payments: Ability to make payments to Ecobank Mobile App wallets (Xpress account) Ability to make payments to other MNO s wallets depending on agreement in place with Telco s Ecobank Omni sends the instruction to the mobile money platform for payment to the beneficiary s wallet The IO s account is debited and the beneficiary s wallet credited Detailed reports available to enable the customer to reconcile payments Corporate Customer authorizes and sends payment instructions to Ecobank Payment instruction received online securely via Ecobank Omni

21 Other features: Ability to perform bulk payments (salaries, suppliers, etc.) Ability to post payment with future value date Ability to save benefi ciary s details prior to the payment initiation Compatible with leading industry standards for seamless integration with ERP systems such as SAP, Oracle, JDE Edwards and others Multiple options for movement of funds: Movement of funds from multiple source account into a target account Movement of funds from source account to target account with the possibility to achieve various types of target balance requirements Operational Security Role-based security implementation for each user (access certain accounts or perform specifi c tasks as per their designation within the company) Possibility to restrict user access to accounts and functions Multiple transaction approval levels based on customer signing matrix System Security Secure deployment of Trust Gate device provided by IdenTrust. The device provides Mutual Authentication, Encryption and Electronic Signature, and protects against all forms of known malware attack. 128 bit SSL encryption Secure communication protocol that encrypts client information during transmission over the internet Two-factor authentication through unique login details plus secure login tokens Payment instruction is processed at Ecobank and funds disbursed to mobile wallets

22 Host to Host Direct integration of the corporate customer s ERP (SAP, Oracle, etc.) system with Ecobank Omni Enable to transmit a single file containing multiple transaction types Ability to import and export payment and reporting file from and to a customer s ERP and / or accounting system Single interface with Ecobank Group (standard solution across all the Ecobank network) Capability to handle industry standard file formats such as EDIFACT, SWIFT, IDOC, etc. Fully able to cover transaction initiation and reporting requirements Instant notification of transaction status Flexibility to work with the customer s proprietary formats

23 SWIFT Payments FileAct Ability to process payment instructions in the following formats: SWIFT MT 101 XML (ISO 20022) MT101/FileAct MT101/FileAct Customer MT940 Payment File Formats Payment to Beneficiaries SWIFT FIN MT 101 MT 103 SWIFT FIN FileAct Agreed text-based format with clearly defi ned fi eld ISO / XML PAIN version Standardized gateway and message structure for payments across the Ecobank network Ability to send end of day statements (MT940) for balance reporting and reconciliation purposes Automated back-end processing Training offered to IOs Ecobank will facilitate training to IO s offi cials in each country to ensure ease of payment and reconciliation of payments

24 Mobile Solutions Overview Book 4 / 8

25 Digitisation The market has already started to stress its move towards mobile and digital. The reality is, if businesses do not have a digital strategy they will ultimately get left behind. Digitising the interactions between customers, partners and the bank is now the focus. Leveraging brands to sell the benefits as a unified experience through numerous touch points will mutually promote the effectiveness of businesses and the ease for the consumer. Digitisation can produce an environment where people both benefit from and contribute to the development of this platform, emphasising the possibility of value co-creation, between brand and consumer. A platform through which people can actually get value, not just a service. This is what digitisation brings; a focus on the elements that add value, rather than those that reduce it. Priority: digitise as many interactions as possible The onus of the Bank to maximise its efficiency and customer base partially comes down to the extent to which it can become truly adaptable and accessible. Digitising as many user interactions as possible is now a priority. The effort that is required will be reduced as the focus is now placed on the Group s core business of creating value for its customers; one of the main reasons behind going digital. This freedom that comes from digitising interactions indirectly creates more jobs (as customers have more time to focus on their industries), which in turn leads to growth, development, and financial inclusion; through digitising processes and interactions we can therefore achieve collective benefit through active participation. Notably, going digital enables banks to offer their services more affordably, conveniently, and securely, as leakages are reduced and safeguards increased.

26 Cashless Ecosystem One way of reaching the last mile is through mobile uptake. The relationship between phone, USSD and app has moved beyond simple transactions and now presents users with the opportunity to pay bills and receive information such as health updates. By assessing the benefits and potential that mobile utility and applications possess the transformative power of digitisation becomes very clear. Going digital however is much more than just a mobile app, it is connectivity of payment at every level of society. Mobile uptake is key to reaching last mile Ecobank Mobile Solutions Ecobank provides a cost efficient hybrid of mobile solutions for low and high value payments delivered through: Ecobank Mobile App or simple USSD menu Mobile Money solutions in partnership with MNOs

27 Some Ecobank Mobile definitions: Ecobank Mobile Banking: refers to provision and availment of banking and financial services with the help of mobile telephone devices. Use of Mobile Phone to provide basic banking services to the bank s existing customers. Ecobank Mobile Payments refers to the facilitation of payments and collections through the use of mobile phones particularly for the unbanked with a leverage on agents / merchants. Ecobank Mobile Money is the Telecommunication / Bank collaboration which typically has the MNO providing the platform to deliver financial services, leveraging on bank branches and agents / merchants as payment agents. (Airtel Money, M-Pesa, MTN Mobile Money, Orange Money, Tigo Cash, etc) Ecobank Mobile Savings refers to the operation of a savings account / wallet on a mobile phone. This is a branchless banking product designed for the under banked and unbanked. The various players (Governments, Regulators, FIs, MNOs, Others) Mobile banking services, as with banking services in general, are regulated by the Central Bank authority in each country. Whether pioneered by FIs or Telcos, any licensing application or amendment should be first approved by the Central Bank. Where applicable, regulations can allow multiple banks to deliver the services in partnership with a Telco, or on their own proprietary platforms. Telcos are either advised to set up a different subsidiary / entity to handle the mobile financial services business or they are sometimes required to partner banks to deliver to subscribers in-country. In most countries, Telcos are incorporated and regulated and must be in good standing with the National Communication Authority to be able to sell new services to customers. Ecobank can facilitate bank account opening and mobile payment setup solutions for any International Organisations that wish to deliver efficient mobile payment solutions to their beneficiaries.

28 Partnering with Mobile Network Operators (MNOs) and Aggregators Some MNOs have partnered with financial institutions to deliver mobile financial services in developing markets and in a few cases, the MNOs have been licensed directly to offer mobile money services to deepen financial inclusion to the unbanked, underbanked and banked customers. In environments where partnerships between MNOs and banks are not necessarily in place, mobile aggregators can step in and act as intermediaries that facilitate payment, from the IO to the bank and into a mobile wallet. In these situations mobile aggregators bridge the gap and enable payments to be pushed through to MNOs, even when partnerships do not exist between the bank and MNO. Ecobank Mobile App and Xpress account: The Ecobank Mobile App enables mobile payments and banking solutions. The Mobile App solution is operational with most MNOs and will allow the IO beneficiaries subscribed to any of the MNO networks to open digital accounts (Xpress Accounts) with Ecobank and receive payments from the IOs. The existence of the Mobile App and Xpress Account, in unison, will enable the IOs to make instant payment to anyone within Ecobank s 33 African presence countries, even if the recipient does not currently have an Ecobank account. The disbursement will be in local currency. IO beneficiaries that do not have an Ecobank account can open an Xpress account within minutes, instantly fund it through a mobile wallet, card or Agent, send money via the Mobile App to a third party and even make cross-border payments.

29 Ecobank partnering with MNOs Ecobank has partnered with the most network significant infrastructure Aggregators and MNOs so that it can leverage on their wide distribution networks, retail outlets and integrated services (see Appendix 1 for details). In this way, the bank encourages further deepening and financial inclusion, whilst providing reliable and affordable financial services to new and existing customers in both banking and telecommunication worlds covering various markets. Ecobank has an aspiration to reach more than 100 Million customers by the end of 2020, to also empower African youth and to help the continent reach its developmental goals. MNOs have sought to partner with Ecobank to deliver mobile financial services to the unbanked, due to its strong banking presence in Sub-Saharan Africa, licenses already obtained and centralized technological approaches adopted to deliver services seamlessly in various markets. These regional MNOs include MTN, Airtel, Orange, Tigo, Etisalat. 100 million customers by 2020 Ecobank are the custodians of Trust accounts for MNO-led mobile money operations in 17 countries. In such markets, Ecobank is especially well positioned to provide electronic value for mobile disbursements as having both IO and MNO float accounts can make for a more efficient and timely settlements. For IO customers, the choice of final MNO partner to work with in such markets will be determined by mapping MNO or Aggregator reach to the IO s disbursement locations. Further, Ecobank has in-country agreements with a number of additional MNOs. Altogether, the partnerships mean that Ecobank can deliver mobile money services via mobile money in more than 33 countries.

30 Comparison of MNO v Ecobank offering MNOs have strong mobile technology capabilities on their GSM network such as mobile data, USSD bearer channels, interactive voice response and SMS capabilities and can reach all types of handsets. The majority of mobile money services are provided through Telco USSD channels in conjunction with the selling of airtime and data bundles, with the financial products often delivered in partnership with banks or financial institutions. Ecobank has extended its online banking services on both USSD and its Mobile App, to all 33 countries of presence and customers are able to access all these services from their mobile phone devices, whether they are in their country of residence or outside of their home country. Customers are thus able to access their funds anywhere and anytime to manage funds in their bank accounts or electronic wallets and remit funds within country and within Ecobank network. The Mobile App and Xpress account typically have a wider range of services than seen with MNO Mobile Money facilities given that Xpress is actually an online bank account. Distribution/ Merchant networks Ecobank partnerships allow access to all partner MNO retail agent outlets, merchant and Aggregators distribution networks, as well as its numerous branches, ATMs and agency outlets to serve its customers and third party wallets.

31 Technical and Security Book 5 / 8

32 Integration with ERP, accounting, e-banking, payment systems Ecobank has extensive experience of implementing solutions interfacing directly with the ERP systems of our clients or to other banks with full flexibility to accommodate IO specific requirements. We are able to integrate our e-banking Omni payment platform with IO s ERP systems to facilitate seamless exchange of payment instructions and statements. This integration will make it possible for a two way direct communication between IO ERP systems and Ecobank Omni which makes it possible for real-time high volume transaction processing between the customers platform and that of the bank.

33 Ecobank s Straight Through Processing ( STP ) solutions can support transactions received through: Internet Ecobank Omni is a secure electronic banking channel providing corporate clients with single access for transaction and reporting needs. Host-to-Host Host to Host (H2H) is a secure and automated two-way data transfer solution that enables exchange of files between the customer and the bank. The H2H connection is available through Ecobank Omni. SWIFT FIN enables financial SWIFT members (banks or corporates) to exchange individual structured financial messages securely and reliably. SWIFT FileAct FileAct enables SWIFT members to transfer bulk files in a secure and reliable manner. FileAct provides a costeffective way to transfer bulk files in different formats, while leveraging the security and reliability inherent in the SWIFTNet platform. Systems integrations can be customised to suit the IO s requirements.

34 Reconciliations To enable reconciliation, Ecobank Omni will provide the following; Wide range of detailed, customizable and flexible reports Report daily statements and balances from other banks (SWIFT MT940) Data download into multiple formats (PDF, CSV, Excel, HTML) Real time tracking of payment status, file upload, rejection/repair Online reporting, monitoring, tracking and reconciliation of payments and receivables View, print, save and payment advices to beneficiaries Automated notification to approvers and beneficiaries Balance consolidation into a single base reporting currency Omni can provide IO with transaction reports as well as account statements in a standard format such as AFB120, MT940 which can be used for reconciliation. Detailed Reports and Audit Trail Robust reporting tool for defining report fields Flexible narration configuration as agreed with Ecobank within a maximum of 40 characters Minimum handset functional capabilities

35 Mobile compatibility Ecobank Mobile payment services are compatible with and accessible on Android, Windows, Apple ios (iphone / ipad) devices and any other mobile and devices, including basic phones, legacy 2G / 3G devices (Symbian / USSD service). For USSD-based transactions, all type of phones are supported low, middle and high devices. User will use the bank s / MNO Short code to access the USSD menu for transactions. For Ecobank Mobile App, Mobile phones with Android version of 4.4, ios and Windows are all supported.

36 Security of Omni in facilitating mobile payments IOs will make use of Ecobank Omni for payment to regular account holders, Xpress accounts and mobile wallets with MNOs and its system security features include: Secure deployment of Trust Gate device provided by IdenTrust the device provides mutual authentication, encryption and electronic signature, and also protects against all forms of known malware attack. Multiple tiers of firewall to prevent unauthorized access to the Ecobank servers. 128 bit SSL encryption Secure communication protocol that encrypts client information during transmission over the internet. Two-factor authentication through unique login details plus secure login tokens. The user enters password associated uniquely with the token and is validated in real-time.

37 Operational controls From an operational perspective, the bank is able to leverage the workflow capabilities within Omni to enhance the IO s operational controls. Key features include: Role-based security implementation with each user configured to access certain accounts or perform specific tasks as per their designation within the company. User access can be restricted to accounts and functions. Multiple transaction approval levels based on client signing matrix. Detailed audit trail of user activity on the system. In case of a security breach, IO officials with assigned profiles will quickly need to change their passwords and inform their Ecobank relationship manager or the contact centre. Beneficiaries whose phones are stolen need not worry as long as their PIN is not been compromised. They only need to call the Ecobank / MNO / Aggregator call centre for their Xpress account or mobile wallet to be blocked and re-enabled when their sim card is replaced. Funds on beneficiary account or wallet also remain intact as long as the PIN is not known to others. In terms of preventing beneficiary fraud, Ecobank and its MNO and Aggregator partners usually provide some financial literacy and education prior to commencement of the enrolment of beneficiaries. This includes advice on matters such as PIN selection and its secrecy for all types of transaction. Beneficiaries are also supported 24/7 through bank or MNO call centres.

38 Ecobank App and the Xpress Account Book 6 / 8

39 The Mobile App Ecobank s Mobile App covers all 33 countries of Ecobank presence in four (4) languages English, French, Portuguese and Spanish. It is unrivalled in both the depth and breadth of its coverage and offers the following services: Unrivalled in depth and breadth Instant transfers within the Ecobank African network (33 countries) FREE within the same country and competitive pricing for crossborder transfers within regulatory limits Instant payment ability using Ecobank MasterPass Quick Response code technology. Instant opening of (KYC lite) Xpress Accounts NO account fees. Bill payments and instant collections by small/ medium/large entities. Transaction history, mini statements. Balance enquiries. Generation of full statements of account. Information services such as FX rates. Online real time chatting facility for Customers. Confirmation services. Payments outside Ecobank or on cash-out will attract market-based charges. Cash in and cash out available at Agencies subject to regulatory approvals.

40 Ecobank Mobile App and the Xpress Account Ecobank Mobile App enables mobile payments and banking solutions. The Mobile App solution is operational with most MNOs and will allow the IO beneficiaries subscribed to any of the MNO networks to open digital accounts (Xpress Accounts) and receive payments from the IO in question. Free, instant self service Xpress Account is powered by the beneficiary s mobile phone number. Access to an Xpress Account is through the Ecobank Mobile App and USSD. Easy to open with absolutely no documentation. It is a free, instant, self-service and can be utilised from anywhere at any time (24/7). All that is needed is an active registered mobile number and a mobile phone. IO beneficiaries / staff can easily open this account and receive payments instantly including at offsite or project locations. It is similar to a mobile wallet but offers more features as it is a bank account offering; Transaction history, mini statements Balance enquiries Generation of full statements of account Information services such as FX rates Online real time chatting facility for customers Confirmation services. Payments outside Ecobank or on cash-out will likely attract market-based charges Cash in and cash out available at Agencies subject to regulatory approvals The KYC is based on the MNO SIM registration and the minimum KYC requirements are in line with those stipulated by Central Bank s guidelines.

41 Benefits of the App and Xpress Account combined The existence of the Mobile App and Xpress Account in unison, will enable the IO to make instant payments to anyone within an Ecobank presence country, even if the recipient does not currently have an Ecobank account. The disbursement will be in local currency. IO staff or beneficiaries who do not have an Ecobank account can open an Xpress account within minutes, instantly fund it through a mobile wallet, card or Agent, and send money via the Mobile App to a third party, including cross-border payments. Due diligence and KYC ( Know Your Customer ) information Beneficiary information and KYC requirements differ per country due to licensing and Central Bank regulations. Setting up an Xpress account with Ecobank is quite deliberately a KYC lite process and can be achieved in a matter of minutes. The key requirements are the beneficiary s mobile phone number, first name, surname and an identification document. It is, however, critical that collection of this information is accurate. Accounts will be run with transactional size limits that bear relation to the level of KYC information provided. Typical IDs that must be used should be national IDs such as Passport, National identification cards, Drivers license, Voter s ID.

42 Payment pre-requisites Xpress Account Holder The intended recipient: must have Mobile phone, either feature (USSD) or smartphone must have downloaded the Ecobank Mobile App for those with smart phone. Download is not required for feature phones must have selected a PIN must open active Xpress account

43 Payment pre-requisites IO Finance team tasks Ahead of making a disbursement, the IO will need to prepare the following: Xpress account or Mobile money payment schedule template will need to be provided and should contain the following fields: Recipient s name at least first, surname and identification document Amount must be in line with money mobile maximum limit per transaction in the country amounts that exceed the stated amounts will require additional entries Date for the transaction a payment schedule should be prepared, usually four days in advance. Instruction as to whether credits to a beneficiary should exclude withdrawal fees. This can be established as a standard rule and agreed with the MNOs or treated on a per transaction basis. Ensure provision of adequate funds to facilitate the payments and the applicable charges. Xpress account number or Mobile number in the agreed format

44 Payment into Xpress Accounts Upon fulfilling all pre-requisites, the bank will transfer funds to beneficiary Xpress accounts. The beneficiary will receive an SMS alert that their account has been credited. Beneficiaries can go to any Ecobank branch or agreed MNO agents to cash the disbursed funds or can make third party payments in a cashless manner e.g. bill payments, direct transfers or point of sale transactions. Ecobank will provide UN with a report on the status of payments. The report will show the name of the beneficiary, mobile number, amount disbursed and status of the disbursement (whether successful or not).

45 Example Anticipated Digital Flow IO/NGO Ecobank IO collates and sends beneficiary information names, phone number, and amounts to be paid OMNI ERP H2H Intergration Ecobank debits the IO account fund disbursement Ecobank uploads disbursement file into mobile money platform and schedules payment Payment successful (Mobile Wallet / Xpress Account credited) END

46 Beneficiary Beneficiary will recieve SMS showing sender, amount and narration YES Mobile Bank Account Xpress Account, Online Banking, Savings insurances, Masterpass QR, mvisa, POS, direct payments, bill payments etc. Cash out at agent outlet or ATM Mobile Wallet POS, bill payments and transfers Cash out at agent outlet or ATM The IO recieves disbursement report Agent disburses funds

47 Merchants network (supermarkets, utility service providers, pharmacies, etc.) Ecobank is leading digitization and merchant acceptance and interoperability in all its markets in a bid to deepen financial inclusion and the over-reliance of cash for payments. Ecobank has strategic partners, including regulators, to provide financial literacy in order to achieve its goals. MasterPass QR and mvisa products are mobile payment solutions respectively from MasterCard and Visa International that enable customers and non-customers to use their mobile phones to make payments to merchants for goods and services. Customers can either use their Mobile Banking app to scan the MasterPass QR / mvisa QR code or use USSD to pay the Merchant ID. Where there are available mobile money payment services, these are well integrated to the solutions for customers registered on the MNO services to also make payments to these merchants. This solution comprises two aspects which interact with each in the payment process: The Merchant / Seller (Acquiring) The Merchant is acquired by the bank and issued a Merchant ID and QR Code specific to the Merchant. The QR Code and Merchant ID will be displayed at the Merchant location for buyers / customers to use for making payment. This is usually displayed as Ecobank MasterPass QR / mvisa Available here. The Buyer/Customer (Issuing) the buyer is the customer that walks into the merchant office / shop to pay for the goods or service purchased using either a USSD short code or using the Ecobank Mobile banking app to scan the QRcode displayed.

48 ATM and branch network Ecobank has +/- 1,250 bank branches and call centres across its network where customers can access further information about available products and services from our Customer Service officers, register for applicable services, enhance their KYC status on the bank / MNO platform and also withdraw cash when payments are made to them via OMNI, Rapid Transfer, Mobile platform or MNO service. The branch network is complemented with 2,750 ATMs and a number of these ATMs have been enabled for cardless withdrawal functionality whereby customers will only need to generate a token code from their mobile account wallet to withdraw cash. These tokens can also be consumed by third-parties. 2,750 ATMs across network

49 Pre-Paid Cards Book 7 / 8

50 Pre-paid card solution Pre-paid cards can be used as an alternative to cash payments for both high value payments and cheque encashment.

51 What is a pre-paid card? A pre-paid card is a reloadable payment card which is issued to a cardholder who does not have to own/operate a savings or current account with the bank. The Visa logo means the card is internationally accepted in all Visa acceptance points. The card can be used for ATM, PoS and Web transactions. Features Pin protected with chip technology for enhanced security. Balance enquiry. SMS transaction alert notification. Card to card funds transfer. Individual Customer Web Profile. Generation of mini Cashcard statements. Payment via internet. ATM withdrawal. Card can be Personalised or non-personalised. Reloadable. Payment for goods and services on Point of Sale terminals at merchant outlets.

52 Benefits to customers/ beneficiaries Pre-paid cards are not linked to any individual or corporate bank account meaning card holders do not need to have/operate a bank account. Instant Issue card can be obtained within 5 minutes, solution available 24/7. No credit history is required. Value can be used in a large number of Visa enabled points, merchants globally, and the internet. Debit card holders afraid of using their debit cards on the Internet for purchases may obtain a pre-paid card which can be used solely for that purpose and is not linked to their domicile account. Enhanced security can be placed on the card by parameter e.g. maximum value, maximum amount per transaction, and maximum number of transactions. Can be reused for repeat payments. Provides up to date transaction history. Increased security a personal identification number (PIN) is used alongside the pre-paid card as well as an SMS Text Alert received in real time with the transaction placed. Eliminates the need to carry large sums of cash, value securely maintained on the card. Even if lost or stolen, the value on the cardholder s account remains intact and can be transferred onto another pre-paid card unlike cash.

53 Card Issuance on behalf of the IOs Ecobank will be able to issue a pack of prepaid cards registered to the IO for distribution to its staff or beneficiaries for adhoc or repeat payments. These cards will be registered under the IO and will not be tagged to individual names. The IO will hold Pre Paid card Pack. A pack contains: Card. Pin and Card Instructions / Activation Link. IO obtains necessary beneficiary documentation: Valid photo ID. 1 passport photograph. Completed application form.

54 Mode of loading The IO will send instructions to debit account and fund card(s) with desired amounts via Ecobank Omni. Reconciliation Ecobank will provide the IO with online transaction reports on the cards for ease of reconciliation.

55 Process flow 1. Pre-paid cards and pins are issued to the IO upon request via letter or any other agreed means. 2. Using Omni, IO sends a file containing transfer details of each card holder to Ecobank for processing. 3. Ecobank debits IO account with total bulk amount and credits each pre-paid card. 4. SMS notification will be sent to the IO. Details of transaction for bulk amount debited will show in the IO statement. The IO will have online visibility of card transactions.

56 Mobile Network Operator (MNOs) Partnering Appendix 1 Book 8 / 8

57 Coverage in conjunction with Mobile Network Operators ( MNOs ) Ecobank has a relationship with at least one major MNO in each country where it operates. Ecobank has global contracts with Airtel, MTN and Orange in this regard. Further Ecobank has in-country agreements with a number of additional MNOs. Altogether, the partnerships mean that Ecobank can deliver mobile money services via mobile money in 28 out of the possible 33 presence countries. Where the partnerships do not cover all applicable service, then strategic partnerships with the multinational aggregators will come to play.

58 MNO agents network Ecobank will use its own agency network as well as that of MNO partners agency networks to disburse funds or perform agreed services for the beneficiaries in each country. The partners Ecobank will use are tabulated below for all the countries listed below Ecobank can deliver payments to mobile wallets:

59 Country Benin Burkina Faso Burundi Cameroun Central Africa Republic Chad Congo Côte d Ivoire DR Congo Gambia Ghana Guinea Conakry Guinea Bissau Kenya Liberia Malawi Mali Mozambique Niger Rwanda Senegal Sierra Leone South Sudan Tanzania Togo Uganda Zambia Zimbabwe Mobile money Services Platforms MTN Mobile Money, Moov Flooz Airtel Money now Orange Money Smart Mobile (under development) MTN Mobile Money, Orange Money N/A, Orange Money Airtel Money, Tigo Cash MTN Mobile Money MTN Mobile Money, Orange Money Airtel Money, M-PESA, Orange Money N/A, Qcell Airtel Money, MTN Mobile Money, Tigo Cash, Vodafone Cash MTN Mobile Money, Orange Money MTN Mobile Money M-PESA, Airtel Money MTN Mobile Money, Orange Money Airtel Money Orange Money Vodafone (under development) Airtel Money, Orange Money Airtel Money, MTN Mobile Money, Tigo Cash Orange Money, Tigo Cash, Wari Orange Money MTN Mobile Money (under development) Airtel Money, Tigo Cash, M-PESA, Ezy-Pesa Moov Flooz Airtel Money, MTN Mobile Money Airtel Money, MTN Mobile Money Ecocash Total No. of Agents/ Outlets per Country ,500 N/A 7,420 N/A 14,500 1,000 14,725 38,500 N/A 80,600 2,800 N/A 85, ,000 15,700 N/A 19,500 14,000 17,800 2,660 N/A 125,000 17,000 49,000 2,000 7,000 Source various MNO websites

60 In partnership with the MNOs, the following services can be made available to the end beneficiary: Government, business, peer-to-peer transfer. Transfers to / from bank accounts and mobile wallets. Bills payment. Cash-in / cash out services. Airtime / Data bundles purchase. Bulk payments straight through credits to mobile wallets. Collections. Savings and investments.

61 Example Anticipated Digital Flow IO/NGO Ecobank IO collates and sends beneficiary information names, phone number, and amounts to be paid OMNI ERP H2H Intergration Ecobank debits the IO account fund disbursement Ecobank uploads disbursement file into mobile money platform and schedules payment The IO rectifies cause of falier and sends fresh file (exceptions) Reason for failure will be obstained and the IO informed for further action YES NO IO decides to continue with Ecobank Mobile The IO opts to pay beneficiaries whose disbursement failed through alternative means Ecobank refunds the IO amounts and charges for failed transactions END

62 Beneficiary Payment successful (Mobile Wallet / Xpress Account credited) YES Beneficiary will recieve SMS showing sender, amount and narration NO Mobile Bank Account Xpress Account, Online Banking, Savings insurances, Masterpass QR, mvisa, POS, direct payments, bill payments etc. Mobile Wallet POS, bill payments and transfers Cash out at agent outlet or ATM Cash out at agent outlet or ATM The IO recieves disbursement report Agent disburses funds

63 ecobank.com