Making Cents 2012 Global Youth Economic Opportunities ConferenceSeptember 2012

SBI is dedicated to expanding access to capital, information and services forsmall & growing businesses, entrepreneurs and households,

to catalyze sustainable development and build an inclusive global financial system

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Clients are increasingly seeing ADC solutions not as a new business but as critical addition to their existing business

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The market is moving beyond the example of mPesa Getting the model right builds a stronger foundation for success rather than being the “first

mover” Agents remain a significant cost center for all agent based models Product development is critical However, many solutions under development today don’t seek to revolutionize access to

finance, a la m-Pesa, in as much as use the innovations to develop new products and services.

Name Country Model How does it make money?

M-PESA Kenya MNO-led e-money issuer 1) Additional revenue per user2) Reduced ‘churn’3) Transactions

UBL Omni Pakistan Business line of a commercial bank with the potential to spin-off its transactional platform

1) Transactions2) Low cost deposits3) Reduced branch crowding

bKash Bangladesh Third-party agent aggregator linking to banks and telcos and offering e-money

1) Transactions2) Float

Private client

Mexico Non-Bank financial institutions offering mobile solutions to address competitive challenges

1) Existing products2) Transactions

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150 millionPopulation

112 out of 135Human Poverty Index

0-14 years: 34.6%, 15-64 years: 61.4%, 65+: 4%Age Breakdown

65%% Population under 30

males 53.9%, females 43.1%Literacy rate (age 15+)

5.6 millionPopulation living abroad

Across SBI’s projects, the youth market IS the market in many of our geographies

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In Romania, SBI’s clients are looking to mobile as a way to reach rural customers while serving an increasingly young and urban population

In Egypt, formal financial sector penetration is less than 10% but mobile penetration is close to 90%. Innovative agent-based solutions are being developed to provide this market with financial services

The example of Bangladesh is indicative of the importance of reaching young consumers:

Bangladesh Key Statistics

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bKash has been successful because its products appeal to an increasingly young and technologically savvy population

o A 2009 survey of 10,000+ families of migrant workers showed that: 82% spent their remittance on books and other

learning materials 66% spent it on tuition for their children

o The “youth bulge” presents serious political, social and economic pressures, placing a significant burden on employment opportunities for the young and under-educated

o Education is a top priority for those who can afford it

o One of bKash’s target markets is students who live away from home

o Youth-oriented products must target both the youth themselves and older generations

o Focused marketing and well designed products are critical

First year results• Nearly 500,000

active users• Network of 10,000

agents