1. Technology: Key to enhancing Remittance in Africa International Forum on Remittances 2009 Session:Role of technology in expanding the frontiers of finance Speaker: Valentine Obi

2. Content Layout Comments on the “Send Money Home” Report 1. Advantages and limitations of New technological frontiers 2. eTranzact-eRemit platform 3. Conclusion 4.

4. These models bring funds into the formal financial system and have the potential to impact the economy positively

5. Need for the Financial institutions to offer attractive services to low-income earning segment of the market

6. Expanding payment networks to small-scale merchants, MFI’s and Post Offices can strengthen remittances

7. These groups, however, do not currently have the necessary infrastructure to carry out these tasks effectively even if permitted by regulators

8. Allowing financiall institutions to pay in foreign currency??

9. “I prefer to see less punitive exchange rates than payments in foreign exchange, which is vital to African countries, to serve external debts.”

10. Will create a lot of pressure on an already depressed local currencies

11. Poor market competition

13. Low usage of New technologies for remittances

14. According to comments made during this forum, most remittances are received as cash

15. Cash-to-Cash: 80-90%

16. Receiving via a bank account: 5-7%

17. To phone/card??? (very low!!)* Statscorp LLC 2006 group survey of cross-section of Nigerians in New York

19. To Cards

20. To mobile phonesAnd thus, has the ability to re-shape the face of the remittance industry and drive down costs of remittances especially in Africa Integrating innovative technology in remittances

22. Population of 140 million people

23. 24 million banks accounts in over 49 years

25. Anytime, anywhere convenience

26. Potential tool for financial inclusion Remittances could easily become the killer application in Mobile money services

27. Trend: use of mobile phones in Nigeria Unfortunately, Use of Mobile phones to access financial services is still a largely untapped service in Nigeria * Efina report: Access to Financial Services, Key Findings of EfInA’s 2008 National Survey

29. For the sender

30. For the recipient

31. Cost reduction

32. eTranzact as a switching platform which has the banks on its platform. By connecting to this platform, MTOs/RSPs are connected to that network. Saves cost of infrastructure deployment for them.

33. Reduce cost of remittances to Africa

34. Accurate data collection/reporting tools

35. Regulators can know true value and volume of remittance flows

36. Secure

37. Embracing these technologies will reduce cash handling

38. Encourages market competition

39. A level playing field is created for players, which basically will increase innovation on the part of the MTO’s, which eventually reduces cost of operationAdvantages of New technologies

41. MFIs/ Post Offices can come on-board in a low-cost way

42. Widens access to remittance service especially to rural people

43. Strengthens economic opportunity by providing a means to save

44. Rural poor WANT to have bank account

45. To keep money safe

46. To send and receive money safely

47. Remittance to cards/phones provides the means to store money safelyThese technological innovations provides access to financial services to the rural poor in a low-cost, secure and convenient manner – serves as an enabler to banking the unbanked in Africa

49. Increasingly complex and varies by country

50. Need to put in place an enabling environment

51. Lopsided market competition that is against smaller MTOs

52. Need for partnerships among players to drive interoperability

53. Exclusivity models should be discouraged

54. To achieve low costs, competition must be encouraged

55. Overcoming the literacy barrier in Africa

56. Need to educate the rural people on use and benefits of these services using effective marketing channels

57. Requires commitment of the project drivers

58. Infrastructural challenges:

59. MFI/Post offices do not have the infrastructure / funds to deploy the needed infrastructure

61. About eTranzact eTranzact is an award winning, innovative and cutting edge technology payment platform. It is a fully Integrated Multi-Channel Switching Platform, Payment ProcessorandMobile Banking / Payment solution. eTranzact is currently deployed in five African countries (Ghana, Ivory Coast, Nigeria, Zimbabwe and South Africa (WIP)) and aggressive plan is in place to deploy the platform across the various African countries at the shortest time possible. There are currently over 35 banks and 15 MFI’s connected to the platform. Also, there are over 60 MTO’s on the network at the moment.

62. eTranzact-eRemit Architecture Pre-paid Card Mobile phone Bank account and Cash Outlet eTranzact-eRemit platform Remittance Organization Recipient Sender

63. Boosting remittance levels is made easier using the eTranzact-eRemit platform A STRONG SWITCHING PLATFORM AN ESTABLISHED NETWORK OF BANKS EASY FOR AN MTO TO ‘PLUG IN & PLAY ‘ CONVENIENCE FOR SENDER & RECEIVER Multiple collection points to drive usage. Remit to Bank Account Remit to Card Remit to Phone Remit to Cash Outlet

64. eTranzact-eRemit Features

67. Thank You