Creating Competitive Advantage …

For African Banks in Foreign Exchange

Industry backdrop

• Africa – major growth opportunities- Banking- Resources- Mining- Manufacturing- Infrastructure- Retail

• Population expected to surpass China’s by 2020

• It is often said about IT systems:- Nothing ever gets built on schedule - Always exceed budget

• Banks rather need to cater for client demands

• Create competitive advantage

Challenges for African Banks

• Innovative products

• Technology

• Capital

• High reliance on imports - opportunity

• Global banks

About ForexForAfrica

ForexForAfrica provides an effective alternative for African banks to invest in a proven foreign exchange system without engaging in

expensive & time-consuming projects on rapidly changing & crucial IT platforms …

Benefits to clients

• Risk management capability

• Forward Rate calculator

• Historical rates

• Measure exposures from different selectable criteria

• Automated payment application form

• Online dealing platform

• Can make multiple payments per invoice or multiple invoices with one payment

• Manage CFC accounts and set off

Benefits to clients

• Ability to revalue exposures at any time

• Reports exportable to Excel

• Web based and no installations required

• Can be accessed from anywhere where an internet connection is available

• Historical records of all invoices, transactions and payments

• Can extract information by client, currency or any other data item

• Deal tickets issues instantaneously

• Full audit trial of invoices and deals on system

Benefits to clients

• FX facilities are updated and visible online

• Early deliveries and extensions of deals done online

• Cancellations of FEC’s and spot transactions done online

• System manages all cash flows for ED’s, Extensions and cancellations

• All supplier and buyer details preloaded

• All banking details and Swift details preloaded

• Payment schedule and payment application form automatically done

• Can load expected shipment and payment dates

Benefits to clients

• All outstanding invoices and orders visible in real time

• System automatically manages set off where surplus currency is held

• Ability to assign shipping and forwarding details to invoices and clients

• Ability to assign basic and mixed payment terms to all invoices

Benefits to African Bank

• No hardware to purchase and maintain, therefore no Capex

• No software to purchase and maintain

• No system administrators required

• No IT experience required to administer the system

• System accessed via the web

• True competitive advantage

• Increased FX turnover

• FX is low risk high profitability product

Benefits to African Bank

• Increased profitability

• Clients locked in to deal exclusively with bank

• Unique client offering not available from other banks

• Entry strategy with new clients

• Increased visibility in the market

• No changes to existing processes and procedures required

• No development costs

Benefits to African

• Rollout within 48 hours, depending on country and bank requirements

• No software licensing requirements

• No need for interface development

• Interfaces can be built over time as profitability allows

• Month to month rental agreement

Roles of bank vs client

The clients challenges

• Generally no systems to assist with business operations

• Issues with administration and payment tracking with Bank

• Management of crucial information

• No bank communication tools

• Real-time information at their finger tips

• Mobility of a systems

• Not willing to outlay expenses for system

Design objective of system

Bank Client

Bridging the gap

Design objective of system

Bank Client

Locking in the clientSystem improves and strengthens communication between client and bank

System architecture

System architecture