MiniPay$ - Touch others and empower peopleBusiness strategy plan

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Member Execution Background Country

Kurnia Sofia Rosyada

Sonia Siska

Kuan_Lin Chen

• Strategy & Finance

• Operations Mgr

• Marketing & R&D

• BSc. Electrical Eng., • Field Engineer, Schlumberger Wireline• Consulting staff, Boston Consulting Group

• BSc. Industrial Engineer with minor in systems engineering

• Product Manager, Grupo Multimedios• Supply chain internship, Bosh Group

• BSc. Information Management• MSc. Supply Chain Management• Junior project manager, Compal Electronics, Inc.• Purchasing specialist, Bourns

Indonesia

Mexico

Taiwan

Executive summary

• Using mobile device as payment method for micro-financing • Help MFI increase repayment rate• Assist MFI / Telecom leverage and increase their customer base to generate more revenue • Reduce poverty, assist them to get better life quality via promoting the growth of small-scale local entrepreneurs

Business Ideas / Objective:

MiniPay$ Team:

We are looking for a ￡ 80,000 investment for 20% stake in our business.

MiniPay$ bring micro-payment services closer to customer (1)SMS service and mobile apps to be launched

Front End Back End (MFIs, Telco, MiniPay$)

• Sign Up • Create ID and password • Inquiry :

• Check balance• Statements • Pay Loan • Change PIN • Setup alert

• Process request • Inquire security code

• Send security code to confirm transactions • Verify code

• Complete transactions

Distinguished features : personal financier for tracking revenue VS spending, contact groups & mentors - Will be available through mobile apps

MiniPay$ bring micro-payment services closer to customer (1)SMS service and mobile apps to be launched

SMS Services

MiniPay$ bring micro-payment services closer to customer (2)SMS service and mobile apps to be launched

Microfinance has grown steadily

2006 2007 2008 2009 20100

20

40

60

80

100

120

# of loan subscribers (Mn)

16.2%

Microfinance sectors are expected to grow stronglySouth Asia represents the majority of the development in microfinance

CAGR

India

Bangladesh

VietnamMexic

oPeru

Philippines

China

Pakistan

Colombia

Sri Lanka

Others0%

10%

20%

30%

40%

50%

32%

22%

9%5% 3% 3% 3% 2% 2% 1%

19%

% to total loan subscribers (’10)

7.5%

22.1%

14.6%

4.8%

24.7%

13.3%

13.0% East Asia & PacificEast Europe & Central AsiaLatin America & CaribbeanMiddle east and north AmericaSouth AsiaSub-SaharanOthers

Funding committed per region 2008 (%)

India and Bangladesh contributes 54% of the total loan borrowers

Mobile phone subscribers increases rapidly – driven by growth in Asia Pacific

Widely accessible mobile phone had fueled the growth in mobile FS services

'05

'06

'07

'08

'09

'10

0

1

2

3

4

5

6Middle East

Africa

CIS

America

Europe

Asia & Pacific

# of mobile subscribers (Bn)

41.4

79.4

67.8

131.5

94.1

120

Penetration ‘10 (%)

19.1%

Strong growth in mobile financial services

2009 20150

500

1000

55

894

Forecast of number of m-banking users

In Mn

51.9%

2011 20150

50010001500

241

1000

Value of global mobile transactionsUS$ Bn

43%

Mobile phone can play a major role to bank the unbanked

-10 -5 0 5 10 15 20 25 30 35

-5%

0%

5%

10%

15%

20%

25%

India

Bangladesh

Vietnam

Peru

ChilePhilippines

China

Pakistan

Colombia

Srilanka

Mexico

Indonesia

Bolivia

% to global gross loan portfolio

# of active subscribers

# of mobile users (Mn)

1

2

3

Roll-out will begin in India, Bangladesh and PakistanBased on market potential, gross loan portfolio and number of mobile users

MiniPay$ should focus on South Asia leveraging the existing microloan borrowers market before expanding to other regions

Key competitor and their core strength had been identified

MiniPay$MiniPay$ Globe Globe EconetEconet1 4

Product MiniPay$

SafaricomSafaricom

• Strategic alliances

• Security• Innovative

features tailored to micro-loan customers needs

2 3

M-Pesa G-Cash EcoCash

Core Compete

ncy

• Innovation and know-how

• Mobile payments & beyond (P2P, B2P, etc)

• Pioneer in mobile payment – incl. microloan

• Strategic partnership – 50 rural banks & 18K outlets

• Global expansion plan

• Basic features offered

• Mobile FS replicating money-gram / Western union

• Products tailored to the specific market (Zimbabwe)

Partners• Grameen Bank• SKS India

• Vodafone • Globe Telecom • Tawanda Nyambirai Bank

Key market

India, Bangladesh, Pakistan

Kenya, Tanzania, Afghanistan

Philippines Zimbabwe

MiniPay$ differentiate itself through unique value offering towards customer

Float Holding

License acquisition, regulatory engagement and compliance

Product and business development

Marketing Cash in/out network

Technology Customer CareBranding

Communication

Transactional platform

Access to handset

Liquidity management

Contributed by MiniPay$

• Features tailored to empower micro-loan customers : Personal financier (track spending)

• Support micro-financing environment via mobile apps: subscribe to group, contact mentor, discussion & sharing platform

• Mobile FS risk security expertise• Build a “trusted”

brand• Leverage partner’s

channels 1

3

2

Mobile FS value chain Mobile FS value chain

Detailed strategy roadmap 2011 - 2016

2012 2014 2016

Collaboration required amongst MFIs, Telecom and MiniPay$

• Banking and branches platform • License for financial transactions• Relationship with govt. regulatory inst. • Reputation

Asset

MFIs/BanksMFIs/Banks Telecom Telecom

Customer

MFIs / Banks Telecom

• Risk, fraud & liquidity mgmt • Financial product devt

Competency

• Large & growing customer base • Pervasive airtime distribution network • Robust high volume, low transaction pro-

cessing platform • High mass-market awareness • Customer’s trust

• Distribution network expansion • Mass market brand-building & advertise

Key partnership had been identified

MFIs /Banks MFIs /Banks Telecom Telecom

India

Bangla desh

Pakistan

Global

Our organization approach to deliver company’s objectives

Kurnia RosyadaStrategy

Sonia SiskaOperations manager

IT & Integrated

supportSoftware & Web design

Softwar

e developer

s

Web

designers

Kuan Lin ChenMarketing and R&D

Marketing

External

Affairs

Partnership

R&D

Kurnia RosyadaFunction support

Finance &

Accounting

HR

Legal & Co

mplianc

e

Risk management

Great financial opportunity expected through MiniPay$

Opportunity to tap into growing market

2012 2013 20140

0.5

1

1.5

2

2.5

3

1.11.6

2.40.4

0.4

0.4

0.1

0.1

0.1

Pakistan BangladeshIndia

1.6 2.1 2.8Total

Market size in targeted countries (in U$ Mn)

Strong financial return is expected

2012 2013 2014 $-

$0.20 $0.40 $0.60 $0.80 $1.00

$0.16 $0.38

$0.85 Revenue

Revenue in US$ Mn

2.2 0.2 0.2

-0.06 0.2 0.66

Cost

Profit

NPV = US $ 684K IRR = 442%

Revenue generated from both SMS serviceand mobile apps platform

SMS ServiceMobile APP

MiniPay$ Rp0.04

Micro Financial Institutions

Customer

Rs 100Rs2 Transaction

Fee (2%)

MiniPay$ Rs0.0495% TF5% TF 5% TF

SMS ServiceMobile APP

MiniPay$ 3%

Micro Financial Institutions

Customer

Usage

MiniPay$ Rs0.1

1 SMS cost (Rs 1) Per login

Telecom 97%

Charged to MFIs (Maintenance fee)

Charged to Telecom

Income due to transactions fee

Income due to services

Risk Analysis(Scenario Analysis Assessment)

Best Case Expected Worst Case Fast growth of MFIs market

and mobile market Decrease on delay of

repayment loan Customers engagement &

loyalty with service Increase of mobile payment

popularity Viral marketing Compliance with government

policies

Moderate growth of MFIs market and mobile market

Customer engagement with service

Moderate market penetration

Market awareness of the service

Slow MFIs and mobile market growth

Slow market penetration Increase on delay of repayment

loan Lack of liability mechanism to

support financial services Unprofitable transaction

payment Customer losses Government regulatory threats

Development of additional features and services

Establishment of new strategic alliances

Market expansion

Market penetration strategy Built customer loyalty Strengthen commercial

alliances

Assessment of business model

Exit strategy : M&A, Selling share through public offering

Planned Response Strategies

Appendix

19ECER POIC-Commercial Proposal-5Dec08-JL-KLP.ppt

Kurnia Sofia Rosyada

Kurnia Sofia Rosyada had electrical engineering background and had worked as a consulting staff in BCG for 1.5 years. She then worked with Schlumberger as a wireline field engineer.

Education• MSc in Global Innovation Management, Univ. Of Strathclyde, 2011 – 2013 • Bachelor of engineering in Electrical Engineering, sub major Biomedical Engineering - School of Electrical and Informatics

Engineering,Bandung Institute of Technology (ITB) 2003-2008 • Japanese Youth Program in English (JYPE) – Tohoku university, Sendai, Japan 2006-2007

Working experience • Field Engineer, Schlumberger Wireline, October 2010 – Sept 2011

• Wireline engineer in charge for offshore rig “GSF Parameswara” operated in Kalimantan, Indonesia. Supervised operations and provide services such as :

• Modular dynamic tester for formation pressure and fluid analysis • Gamma ray, neutron-density and resistivity analysis• Perforation activities and well-completion • Tough logging condition (TLC), Fishing operation and High-tension operation

• Junior Field Engineer, Schlumberger Wireline, January 2010 – Sept 2010• Consulting staff, The Boston Consulting Group

• Worked with several clients related to financial services and energy practice in areas ranging from building growth strategy to process improvements. Selected case experience :

• Designed the go-to-market strategy for leading auto financing company in Indonesia • Developed winning business model and lean banking branch processes for retail bank in one of Indonesia’s largest bank• Developed bio-fuel strategy for one of the NOC in SEA

20ECER POIC-Commercial Proposal-5Dec08-JL-KLP.ppt

Sonia Siska

Sonia Siska had industrial engineering background and had worked as a product management in Multimedios for 1.5 years. Education

• MSc in Global Innovation Management, Univ. Of Strathclyde, 2011 – 2013 • Bachelor of engineering in Industrial Engineering with minor in Systems Engineering• Technische Universität Hamburg- Harburg, TUHH Hamburg, Germany

Working experience • Grupo Multimedios - Monterrey, Mexico• Position: Product Manager• Responsabilities: Traffic and cost analysis, benchmarking research, integration of new services and continuous improvement projects

for websites.• Achievements: Commercial agreement with DRIDCO.

21ECER POIC-Commercial Proposal-5Dec08-JL-KLP.ppt

Kuan_Lin Chen

Kuan_Lin Chen had Information Management and Supply Chain Management background as well; worked as a junior project manager in NB division of Compal Electronics, Inc which is the largest ODM laptop company for 3.5 years.

Education• MSc in Global Innovation Management, Univ. Of Strathclyde, 2011 – 2013 • Bachelor of Information Management,Jin Wen Institute of Technology (JWIT) 2001-2002 • Master in Supply Chain Management and E-Business , CA. U.S.A 2006-2007

Working experience • Junior Project Manager in NB division, Compal Electronics Inc., Apl. 2008 – Aug. 2011

• in charged of American customer’s product line • Leaded of customized BOM structure establishment & material preparation• Took Responsible of overall project schedule controlling• Coordinated in project progress and issues tracking• Experienced projects: 2 gaming machines - M11X, M14X, 2 consumer laptops, 1 netbook

• Purchasing specialist in Global Supply Chain Purchasing Department, Bourns, Aug. 2006 – Dec. 2006• assisted in finding contract manufacturers, negotiate and analyze costs, work with domestic and international vendors to

provide overall order fulfillment• Negotiate contracts and sign off on purchase of product, analyze delivery schedules and other terms and conditions for all

company requirements• Responsible for product, commodity and service availability and preparedness of back-up supply

Web

Inte

rfac

e

HTTP/ SSMTPFTPXML

COM ObjectSmmpp

Xml / Soapapplications

API:

Appl

icati

on P

rogr

amm

ing

Inte

rfac

e

RegistrationAuthentification

DatabaseSub-user

managementAdministration

Balance Payments

Micro Financial Institution

Connectivity Front End

Management Services

NetworksMini Pay$ Messaging Platform

SMS platform required collaboration amongst key playerMiniPay$ to provide competitive edge technology and innovative feature

Detailed process flow for SMS-based transactions

Detailed process flow for mobile apps

Competition Brief(Direct and Product Substitution)

Analysis foundations:Based on the analysis and findings of 5 direct competitors (worldwide) and 3

Joint Ventures between India’s Private Banking and mobile providers.

Business Model

Main Customers

Location

Target Market

Relevant Partners

Core Competencies

Out-source (direct competition)

Other Joint Ventures

In-source (substitute)

MFIs Commercial Banks

UK

India

MFIs and Telcom

Pioneering in loan services and strategic

alliances

UK and USA

USA

Worldwide

Mobile Providers

India

Technology pioneer Alliances Countries largest

commercial bank

Findings and challenges:• Monitise and Sybase are the world leaders in

mobile Technology and have an strong Know-how advantage.

• Both offer mobile banking APPs and SMS services.

• Joint Ventures are business models for developing SMS Banking but require an

additional development provider.

Key Benefits of our product: We are the pioneers in loan services.

We offer to MFIs integrated and tailored solution.

Avoid MFIs need to establish alliances with mobile providers.

Full development and maintenance of the service.

Avoid in-source development costs. Experience and consultancy.

Competition Detailed(Direct and Product Substitution)

Findings:Monitise and Sybase are the strongest competitors. Clickatel and specific JV have expertiset in SMS Service but don’t offer any mobile APP solutions.

Tieto and Mobilenik are leaders developing mobile Apps and have developed for financial institutions.

MinyPays Monitise Sybase Clickatell Tieto Mobilenik

Outsource Outsource Outsource Outsource Outsource Outsource

MinyPays Mobile Money mBanking 365 SMS Services SMS NA NA NA NA

MFIs

RBS, Natwest, Ulster Bank, First Direct, Lloyds

TSB and HSBC

Citibank, United Bank of India, BBVA Compass,

Bank of Baroda

Fortis Microfinance Bank, First National

Bank (FNB)Storebrand Bank Santander SBI State Bank of India ICICI Bank Axis Bank

2011 2003 1984 2001 1999 2000 2011 2011 2010

UK UK and USA USA USA Finland Argentina India India India

India (1st phase) (Pakistan and Bangladesh

2nd and 3rd phase)

UK and USA (planning on going into new

territories, particularly Hong Kong, China, Africa

and India)

North America, Europe-Middle East-Africa, Asia

Pacific and Latin America

Worldwide Russia and Poland Argentina India India India

MFIs and Telcom

(All Uk providers) Vodafone, O2, Orange, T-Mobile and 3. Visa, First

Eastern and Carphone Warehouse

SAP, Verizon Vodafone Microsoft Blackberry Bharti Aairte Vodafone IDEA Cellular

Pioneering with loan services and strategic

alliances

Technology Pioneer (World Economic Forum

in 2006) and world-leading mobile

technology

Alliances and Gartner's 2011 Data Warehouse Database Management

System Magic Quadrant

The world's leading mobile messaging

provider

40 years’ experience in financial IT. Among the 3

largest mobile device software R&D services

in the world

Blackberry All iance Elite Member

The country’s largest commercial bank

Largest private sector finance

India's third largest private bank and 3rd

largest national mobile operator

X X X X X X X

X X X X X X X

X X X X X X X

X X X X X X X

X X X X X X X

X X X X X X X

X

X X X X X X X

X X

X X X Tailored Tailored

X X X X

X X X X

X X X X

X X X

X

X X X XX X X

Service Activation

Minimum payment amount and due dateMini statements

Balance alert

Core competency

Business model In-house

Company Joint Ventures / Product substitution

Product name

Main customers

Founded

Location

Target Market

Partners

Mobile APP

Real-time statements

Real-time account balance

Usage History

SMS Service

Change PIN

Balance

Transactions / Payments

SMS

Feat

ures

Transactions alerts

Transactions / Payment

Apply for loan

Manage user profile / change PIN

Manage alerts

App

feat

ures

Competition Detailed(Strategies analysis)

MiniPays Strategy main features:

Targeted to an specific market and specific services

Differentiated by: Alliances Safety

Mobility

Sources:Monitise’s technology platform has been designed to deliver mobile banking, payments and commerce services anywhere in the world. The group’s aim is to be the platform of choice for banking and other financial institutions throughout the world. Having established itself and proven the technology in the UK, US, Asia Pacific, India and Africa, Monitise’s strategy is to continue to invest in its technology and to expand its reach, initially into other markets with high growth potential, by working with local and international partners who can provide the local infrastructure and international functionality where necessary.http://www.monitisegroup.com/media/press_releases?id=470

Market leader – in data management, analytics, mobile messaging, and enterprise mobility , Proven – 40,000+ enterprise customers and 91 of the Fortune 100 rely on Sybase , Experienced – heritage in enterprise software since 1984, Innovative – 148 patents awarded in data management and mobility; 185 patents pending , Global – 4,000+ employees in 60 countries http://www.sybase.com/about_sybase

Clickatell competes in a global mobile messaging market that is expected to grow from $150 billion in 2009 to $233 billion by the end of 2014 (Portio Research). Associated SMS text messaging traffic is projected to double from five trillion messages in 2009 to 10 trillion in 2013.http://www.clickatell.com/about_us.php

With the mission “to be the leading company in research and implementation of new mobile technologies in SMEs” http://www.best-choice-tech.com/mobile-cell-phones/interview-with-director-of-mobilenik-brands-want-to-be-on-the-phone-but-do-not-know-which-path.html

We aim to be a leading service integrator creating the best service experience in IT. We differentiate ourselves through superior customer centricity. http://www.tieto.com/about-us/strategy/strategic-cornerstones/differentiation

Cost Leadership

Focus

Differentiation

Focus

Competitive Advantage

Lower cost Differentiation

Specific target

Broad target

Monitise Sybase

Clickatell

Tieto

Mobilenik

JV

*Based on Michaels Porter's Generic Strategies Analysis

SMS & Mob APP

SMS

Mob APP

Safaricom

Globe

Econet

Mini Pay$

Mobile money

Exit Strategy(Merge)

Merge Mini Pay$ can create more value as one company, this way we believe there is an opportunity in merging with a

Mobile Network Provider.

Why a MNP? To achieve vertical integration To strengthen our industry Know-how To work with a former partner

Potential Benefits

Gain a greater market share Achieve greater efficiency Offer integrated services Reduce operation cost Competitive advantage Increase barriers of entry Develop core competencies