Presentation on Remittance & Cash Management Banking Day 2006 Agenda Inward Remittance Cash Management Q&A Business Challenges Market Today About CashTech Transactional Complexities Segmentation ComplexityVolumes Transaction Corporate Treasury View Corporate Size Large Corporate Small Businesses Global Corporation Medium-Size Businesses Treasury Management Functions LiquidityTransactions Information Risk Payments clearing & settlement Payments clearing & settlement, electronic banking, Sweeping Payments clearing & settlement, electronic banking, Pooling & LM, Supply Chain support Payments clearing & settlement, electronic banking, Netting, Pooling & LM, Supply Chain Support, FX and Interest risk monitoring Value High Bank services is becoming the hub of distribution financial chain Payment Reconciliation Payment Reconciliation Multi-tier Sweep Multi-tier Sweep Netting Netting Procurement Via Supplier LC Payment LC Payment Vendor Payment Vendor Payment Payment to Logistic Service Providers Payment to Logistic Service Providers Collection Report Collection Report Purchasing, Distribution, Wholesale, Store Reconciliation Sales Order Logistic Process PDC Discounting PDC Discounting Cheque Custody Cheque Custody Cheque Reconciliation Cheque Reconciliation Vendor Financing Vendor Financing Business Model Agenda Inward Remittance Cash Management Q&A Business Challenges Market Today About CashTech Current Business Challenges How do I distinguish my bank’s offering H o w d o I i n c r e a s e f e e b a s e d r e v e n u e a n d i m p r o v e f l o a t m a n a g e m e n t H o w d o I i n c r e a s e f e e b a s e d r e v e n u e a n d i m p r o v e f l o a t m a n a g e m e n t H o w c a n I p r o v i d e b e t t e r s o l u t i o n t o p r o v i d e c u s t o m e r p r o f i t a b i l i t y , a c q u i s i t i o n & r e t e n t i o n H o w c a n I p r o v i d e b e t t e r s o l u t i o n t o p r o v i d e c u s t o m e r p r o f i t a b i l i t y , a c q u i s i t i o n & r e t e n t i o n H o w d o I c o m p e t e w i t h m u l t i n a t i o n a l b a n k s a n d D o m e s t i c b a n k s H o w d o I c o m p e t e w i t h m u l t i n a t i o n a l b a n k s a n d D o m e s t i c b a n k s H o w d o I l e v e r a g e e x i s t i n g s y s t e m s t o l a u n c h n e w p r o d u c t s H o w d o I l e v e r a g e e x i s t i n g s y s t e m s t o l a u n c h n e w p r o d u c t s How do I respond to customized corporate requirements How do I respond to customized corporate requirements Business focus  Introduce fee based products  Add additional services to existing portfolio  Increase customer stickiness Inward Remittance (Retail) Cash Management (Corporate) Agenda Inward Remittance Cash Management Q&A Business Challenges Market Today About CashTech Why Inward Remittance  The market – 3 million Vietnamese working abroad who send money regularly back into Vietnam – Approx USD 3 billion worth of inward remittances in 2004.  The revenue – Fee Based Revenue  Anywhere between USD 5-10 per transaction – F/X Spread Earnings  Anywhere between 120-200 basis points – Float Earnings – Revenue from cross selling banks products:  House Loan for the remitter  Fixed deposit for remitters savings, etc.