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FINANCIAL SERVICESFINANCIAL SERVICESFOR UNDERFOR UNDER--SERVED MARKETSSERVED MARKETS

The Macroeconomics of Mobile Money

Securing Mobile!Money:The Ugandan Experienceg p

Friday, April 2, 2010Columbia University

Table of ContentsTable of Contents

• About MAP

• Case Study: Uganda

• MAP in the News

2

Our Technology and Executive Leadership Helped Pioneer the Mobile Banking Space

• Our Chief Technology Officer and

Technology HistoryMAP’s Information Technology

Group

gy

Chief Information Officer were both members of the original architect team of Fundamo – one of the first mobile banking technology firms:

• Based in Cape Town, the Group boasts 20+ full time team members, including a full staffing of:

! Solution Architectsg gy

! Led comprehensive implementations throughout Africa and the MidEast

! Developed the Mobile Security Solution, the industry’s first pin-based

! Business Analysts

! Project Managers

! Developers

! Graphic DesignersSolution, the industry s first pin basedsystem still utilized throughout the Fundamo network

• Our CTO went on to build a technology development house to create and

p g

! DBAs & Networking Specialists

• The Group can manage the full spectrum of MAP’s product offering including:de e op e ouse o c ea e a d

deploy the next generation of mobile financial services

• MAP acquired the group, technology, and IP in early 2009

including:! Biometric ID systems

! ATM switching and management

! POS switching and processing

! Mobile banking

3

and IP in early 2009 Mobile banking

! Partner integration and maintenance

The Technological Backbone to MAP is Provided by a The Technological Backbone to MAP is Provided by a Proprietary HUB Mobile Banking SystemProprietary HUB Mobile Banking System

• The MAP HUB Intelligently routes

multiple transaction types that originate

from multiple communication devices:

Point of Sale Terminals ATM’s Mobile

FINANCIAL PLATFORMFINANCIAL PLATFORM

Point of Sale Terminals, ATM s, Mobile

Phones, and PC’s),

• The HUB also integrates between

multiple Companies, Banks or Financial

Institutions, Databases & Application

Modules to return a desired transaction

type to the originating device

• The HUB enables multi channel layerThe HUB enables multi channel layer

communication and multi tiered

architecture

• The HUB can transact: Person to Person

(P2P), Business to Person (B2P), Person

to Business (P2B), and Business to

Business (B2B)

• The system is agnostic to mobile player

4

The system is agnostic to mobile player

and financial institution

The MAP Systems Also Offers a Unique Product The MAP Systems Also Offers a Unique Product Distribution PlatformDistribution Platform

• The platform provides

for the creation of

multiple franchises and

products distributedproducts, distributed

through a pre-registered

vendor network

• Franchisees operateFranchisees operate

independently from one

another and in turn are

responsible for the setup

of their entire down-line

• It enables the selling of

multiple virtual products,

ffwith different discount

structures

5

Table of ContentsTable of Contents

• About MAP

• Case Study: Uganda

• MAP in the News

6

Executive Sponsorship Secured Uganda as the Executive Sponsorship Secured Uganda as the Launch Market for MAPLaunch Market for MAP

Th MAP t fi t i it d t U d b th P id t! The MAP team was first invited to Uganda by the President,

Yoweri Museveni, to explore areas for partnership

! MAP was asked to focus on his two key concerns:

" #1All governmental salaries as well as most other salary payments#1All governmental salaries, as well as most other salary payments,

were paid in cash

– This led to rampant abuse, ghost workers, fraud, shrinkage, and loss

" #2 A network of rural unregulated banks, SACCOs, were the weak

backbone of the Ugandan rural economybackbone of the Ugandan rural economy

– SACCOs lacked the financial stability and trust of the people to

properly offer modern financial services

! The MAP offering has evolved to meet the immediate needs of

Uganda

Country Profile:

P l ti 32 4 illi• Population: 32.4 million

• Pop. Growth Rate: 3.2%

• GDP: $15.04B (2008 estimate)

• GDP Growth Rate: 6.4%

GDP it $465

7

• GDP per capita: $465 per year

• Mobile Phones: 8 Million (2009)

The Nature of the Ugandan Initiative is a Public Private The Nature of the Ugandan Initiative is a Public Private PartnershipPartnership

Key Competitive Building Blocks (Uganda):

! Three way, exclusive contract and subsequent agreements with the

Government of Uganda and the government-owned PostBank to:Government of Uganda and the government-owned PostBank to:

" Convert 100% of PostBank current and new customers to MAP cardholders

(currently 300k active account holders with an ambitious growth plan to 1M

customers)

" Process all federal salaries and pension payments" Process all federal salaries and pension payments

" Rollout ATM’s at all PostBank branches

" Rollout a country-wide network of POS units

" Incorporate the 800+ unregulated SACCO’s (micro-finance institutions) into the

regulated environment under the PostBank umbrellaregulated environment under the PostBank umbrella

" Provide ATM, POS, and mobile switching capabilities

" Rollout a linked mobile banking platform

! Exclusive contract with one of the country’s largest agent-based airtime

distribution network, X-Tel

! Partnership and distribution agreements with the national mobile network

8

! Partnership and distribution agreements with the national mobile network

operators

Review of MAP Progress to DateReview of MAP Progress to Date

! Card approved by Central Bank for International KYC standardsAll 350 000

Card approved by Central Bank for International KYC standards

! Proprietary MAP Data Capture Stations deployed at PBU branches

! Cards produced in MAP’s Kampala office and distributed by PBU branches

! 75,000 cards have already been deployed; additional 35,000 accounts

enrolled at mobile biometric events

Bio

Card

All 350,000

PBU

customers will

have cards by

12/2010

cts

cts ! 26 ATMs currently deployed at all PostBank branches

! MAP processes all ATM switching with its own propitiatory switch

Average

transaction

volume:

P P

rod

uP

Pro

du 73/day/ATM

165 POS

MA

PM

AP ! Agreements achieved with Shell, Total, Haas Gas Stations, representing

over 300 service stations

! Three-year goal of 3000+ POS access points

devices

deployed at

leading

retail points

! First mobile program launched in early December (Uganda Telecom)

! Full functionality currently available

! Can be accessed through any Java-enabled mobile phone

PBU Market

Launch:

Q1 2010

9

Q1 2010

In August of 2009, MAP Signed an Agreement with Wazalendo, the Country’s Largest SACCO

Wazalendo Military SACCO

! 50,000 members (80,000 expected

by 2011)

MAP Revenue Streams

! MAP receives an enrollment fee for all

t h ld ($3 USD)y )

! 14 branches across the country

! Members include Ministry of

Defense workers, UPDF personnel

and retired officers and their families

account holders ($3 USD)

! Wazalendo contractually provides a monthly

subscription fee for each account holder to

MAP ($.50 USD)

! Wazalendo has signed a contract with MAP for MAP to provide all branches a core

Basic Agreement

Wazalendo has signed a contract with MAP for MAP to provide all branches a core

operating system, biometric card system, ATMs, POS devices and mobile banking

! The solution will automate all SACCO transactions and create a full audit trail

! All SACCO funds will be held at PostBank affording regulatory oversightAll SACCO funds will be held at PostBank affording regulatory oversight

! Wazalendo account holders will be able to access their accounts from any MAP access point

across the country, as well as from their mobile phones

! Enrollment began on November 23rd, and 34,000 account holders have been

10

Enrollment began on November 23 , and 34,000 account holders have been

enrolled

LAP Green, a Multi-Market African Mobile Phone Operator has Selected MAP as its Mobile Banking Partner

• MAP’s proprietary technology will power• MAP s proprietary technology will powerLAP Green mobile money and mobile banking products

• MAP will be an ongoing operational

LAP Green’s LAP Green’s Operator PortfolioOperator Portfolio

g g p

partner, and the two partners will share

product revenues

• Lap Green will use MAP’s nation-wide network of commercial access points

• MAP will assist in direct-to-consumer mass marketing efforts and its logo will be included on all collateralbe included on all collateral

• MAP and LAP will soft launch with Uganda Telecom in December of 2009:

! Five year expected profit contribution ofe yea e pected p o t co t but o o$20+ million

• MAP and LAP will launch with Rwandatel in Q2 of 2010

! Five year expected profit contribution of $17+

With over 5 million subscribers, and additional

licenses in two new countries (Togo & Sierra

L ) L G i f Af i ’ l di

11

Five year expected profit contribution of $17+million

Leone) Lap Green is one of Africa’s leading

mobile phone operators

Table of ContentsTable of Contents

• About MAP

• Case Study: Uganda

• MAP in the News

12

Presidential Visit to OfficePresidential Visit to Office

MAP’s launch was met with

palpable regional excitement

13

MAP Launches ATMsMAP Launches ATMs

14

MAP Partners with Military SACCO

15

MAP Launches Linkage Banking

16

Two United Nations Publications Featured MAP Over the Last Year

17

MAP was also invited to address the UN and the European Parliament

18

MAP’s Growing Profile Led to its Nomination for a GSM Association Global Mobile Award

19