International Forum on Remittances 2007

DUET MULTI-PURPOSE PLATFORM Richard Schweger, CFO/COOBGS Smartcard Systems

WHO WE ARETechnology providers with 14 years of expertise Provision of Smart Card Retail Payment Systems Focus on cash substitution in domestic mass marketsProvider of secure delivery channels for low cost financial and non-financial servicesOffering Universal Smart Card based solutions for Financial Inclusion and Cash SubstitutionHeadquartered in Vienna, subsidiaries in India & Russia Austrian Export Prize Winner 2006

GLOBALIZATION

Globalization works well - when connecting well developed local structures

Cross border Remittance works well - what is needed is local infrastructure

Financial Inclusion is a Global task that has to be solved locally

Global and Local knowledge and experiences have to merge to offer a sustainable locally working solution

Remittance collection and disbursement are local transactions within a global

playing field

RURAL “FINANCIAL” DEVELOPMENT

Banks are not universal organizations when considering the provision of financial services to everyone and everywhere

Bank infrastructure and business set up lead to an exclusion of the poor (if to be performed profitably)

New type of entities took over to address this market (MFIs)

To grow this market and achieve scale it is necessary to combine/connect the existing banking system with MFIs

Appropriate delivery channels and adequate technologies can bridge the infrastructure gap

REMITTANCE

Remittance is one of the key Micro Financial Services (beside: credit, savings, insurance)

Accessibility/Outreach especially in the rural environment are of key importance

Provide a secure, controlled, efficient, scalable and universal delivery channel for all the services

Use technology requiring little skill sets

Invest once, use many times for diverse products & services

Utilize existing third party corresponding networks

Offer lowest cost of ownership through “hybrid technology”

POSSIBLE REMITTANCE SCENARIO

Create a local low cost financial services environment

Link remittances to additional financial services

No traveling for recipient, remittance collection close by

Recipient has the choice of only partial remittance collection

For immediate spending - collection in cash

Remaining balance on account and smart card with any time accessibility (option: cash less spending)Recipient: Security, Interest Income, Universal Accessibility

Issuer: Additional Float

CONCLUSION

Local solutions are required and these are to be implemented globally

It is a mistake to look at select individual services and their problems without taking the whole context into evaluation

Technology is an enabler and should provide a universal solution for universal services

The delivery channels have to be efficient, secure and scalable providing the underlying structure for the provision of ubiquitous financial services

DUET IN PERSPECTIVE

DUET is a universal solution addressing domestic mass markets for the provision of end-to-end financial services from Financial Inclusion to Cash Substitution

DUET is uniquely positioned to deal with the main drivers of sustainability: cost reduction, efficiency increase, scalability, universality and geographical outreach

Connecting Banks with MFIs on the DUET platform will create cost efficient indirect channels to sub-urban and rural clients (fund flow through multiple hands)

DUET hybrid services and low cost infrastructure/devices guarantee lowest cost of ownership

DUET IN PERSPECTIVE

DUET enables usage and integration of existing correspondent networks (merchants, post-offices, pharmacies)

DUET-Transactional engine offers an efficient control of the fund flow from the issuer (via correspondent) to the recipient

The same card will facilitate multiple financial (credit/savings) and non financial (social/insurance) services to the clients

Full range of agent / client / merchant card services available in the field

MF STRUCTURESPONSOR

BANKS

CONTACT

BGS Smartcard Systems AG Gersthoferstrasse 131, A-1180 Vienna, Austria phone: +43/1/47601/303fax: +43/1/47601/330 e-mail: richard.s@bgssmartcard.com web: www.bgssmartcard.com

Richard Schweger, CFO/COO