94999




IFC Mobile Money Scoping
   Country Report: Sri Lanka

                Scott Stefanski
                     May 2013
       Sri Lanka Summary                                                                                                   Mobile Money
                                                                                                                           readiness
       Population:                    21,675,648 (Jul 2013 est.)                                                         Regulation             5
       Wireless Teledensity:           43.6%; 57.2% of adults***
                                                                                                                         Financial Sector       3
       Remittance % of GDP                             8.7% (2011)
                                                                                                                         Telecom Sector         5
       Percent Under Poverty Line                8.9% (2010 est.)
                                                                                                                         Distribution Channel   3
       Adult Literacy                                91.2% (2010)
                                                                                                                         Market Demand          4
       Ease of doing business:       81st of 185 countries (2013)
       Main banks:
           Bank of Ceylon, Commercial Bank of Ceylon,
           People’s Bank, Sampath Bank, Hatton National Bank
       Number of Domestic Banks*/Branches:              21/2,920**
       Mobile Network Operators:
         Dialog (Axiata), Etisalat, Hutch, Mobitel, Airtel

       Overview of Mobile Banking in Sri Lanka:
       Updates made to banking regulations in 2011, permitting custodian managed mobile wallets/payments, have produced
       results with the launch of mobile operator Dialog’s ezCash mobile wallet product. In just 100 days, Dialog has activated
       750,000 mobile wallets transacting Rs 10.3 Million daily in utility payments, cash in/out, and person-to-person transfers .
       Dialog is now pursuing use of the channel to receive inbound international remittances, having received approval from
       the central bank.

       As roll-out ensues of the ezCash service, it will be important to monitor any potential risks of monopoly position limiting
       innovation in financial product diversification and cost reduction similar as in other markets with a large single player.
       Raising awareness among market participants on how they may build on the ezCash progress can catalyze innovation and
       financial inclusion deepening (i.e. moving beyond simple stored value account access and use for payments).


Sources: CIA World Fact book, Economic and Social Statistics of Sri Lanka 2012, Wireless Intelligence
* Includes Commercial Banks (12) and Specialized Banks (9)
** Does not include 219 Foreign Bank Branches
*** ITU 2012 data indicates a higher penetration rate of 87% . See: http://www.itu.int/net/newsroom/GSR/2012/reports/stats_sri_lanka.aspx
• Macro-economic Overview
• Regulations
• Financial Sector
• Telecom Sector
• Mobile Financial Services Landscape




                                        4
      Macro-Economic Overview
                    Key Country Statistics                                                                    Insights
        •     Population: : 21,675,648 (Jul 2013 est.)
                                                                                 • Need to address financial inclusion requires innovations in
        •     Age Distribution (% population):                                     delivery of rural financial services; should look to agribusiness
                  • 0-14 years:          24.8%                                     supply chains, government payments, and FMCG supply chains
                  • 15-24 years:         15.1%                                     as rural has become greatest driver of FMCG growth despite
                  • 25-54 years:         42.4%                                     stagnate overall growth in 2012
                  • 55-64 years          9.3%
                                                                                 • According to World Food Program, 50% of households in
                  • 65+ years:           8.4%
                                                                                   Northern Province live on less than US$1 a day
        •     Median Age: 31.1 years
                                                                                 • Rural economy dominated by agriculture with growing small
        •     Urban/Rural split:
                                                                                   holder labor serving large scale agribusinesses
                  • Urban:            14% (2010)
                  • Rural:            76%                                        • AT Kearney ranks Sri Lanka as #15 most promising market for
        •     GDP (PPP): USD 125.3 Billion (2012 est.)                             retail sector growth. Organized retail makes up only 3% of the
                                                                                   US$25-30 Billion market, suggesting opportunities for
        •     GDP per capita (PPP): USD 6,100 (2012)                               organizing and creating larger scale networks.
        •     Literacy rate: 91.2% (2010)
                                                                                 • Estimate of 18,000-20,000 businesses in Sri Lanka; 92%
        •     Total Wireless Subscribers: 9.3 Million                              considered SME (Interview with Deputy CEO of NTB)
                  • Urban penetration: 74.2% (households)
                  • Rural penetration: 59% (households)                          • Estimate of micro retail traders for Fast Moving Consumer
                                                                                   Goods number 180,000; recently imposed VAT on FMCG
        •     Wireless Teledensity: 43.6%; 57.2% of adults
                                                                                   wholesalers may induce incentive to explore cost reduction
        •     Banking penetration:                                                 strategies that could spur adoption of mobile ordering and
                  • 69% of adults                                                  payment channels
                  • 58% of lower income (bottom 40%) adults
                                                                                 •   Inward workers’ remittances increased by 17.1% in 2012
        •     Remittance (% of GDP): 8.7%
Sources: CIA Factbook, Wireless Intelligence, World Bank Findex, , Economic and Social Statistics of Sri Lanka 2012


                                                                                                                           5
• Macro-economic Overview
• Regulations
• Financial Sector
• Telecom Sector
• Mobile Financial Services Landscape




                                        6
     Regulatory Overview

       • The Central Bank of Sri Lanka (CBSL) oversees all banking, payment and microfinance activities
         and operates the nation’s RTGS. Operation of the Sri Lanka Interbank Payment System, SLIPS, is
         delegated to LankaClear Limited, an entity 47.19% owned by CBSL and the remainder of
         ownership held by the nation’s commercial banks.
       • Banking, payment and identification rules and guidelines are in place and many have been
         updated in the past five-eight years.
       • Mobile Payment Guidelines No. 1 (Bank-led) and No. 2 (Non-bank custodian accounts) have been
         in force for a year. The second guideline has had an important effect in the resulting ezCash
         mobile wallet and payment service offered by mobile operator Dialog. These guidelines do not
         mandate interoperability with competing mobile networks on mobile payment products.




Sources:


                                                                                         7
     Regulatory Bodies
                              Roles & Responsibilities                                       Implications

                        Overseer of all financial institutions and non-FI
                        payment providers. Actively promoting electronic
                        payments infrastructure and has expressed intention
      Central Bank      for the SLIPS interbank payment system to evolve to
                        handle real-time retail payments, including mobile
                        payments.

                        • Registration of Persons Act No.32 of 1968
                                                                                   Central bank has exhibited a progressive
                        • National identification policy requiring everyone
                          over the age of 16 to register for identification;        approach to policy and relatively
            Identity      current initiative underway, Electronic National          agnostic to market players (i.e. mobile
           Protection     Identity Card Project (e-NIC Project ); may be            operators v. banks) in its stewardship of
                          coupled with fingerprint scans                            the development of an inclusive and
                        • Act No. 11 of 1981 legislates issuance and usage of
                                                                                    effective financial sector for Sri Lanka
                          NIC

                        LankaClear Limited is a private entity, 47% owned by       It is fair to anticipate notable progress in
        Payment         the central bank, the remainder owned by the                addressing financial inclusion
       Coordinator      country’s commercial banks. It operates SLIPS.
                        Guidance provided by Central Bank.                         Use of LankaClear collaboration between
                                                                                    public and private sector bodes well for
                                                                                    responsiveness to market developments


         Teleco
                        None relevant to payments
       Regulations




Sources:


                                                                                                         8
Regulatory Framework & Requirements
                         Current Regulations                                           Implications
                 • Mobile Payments Guidelines No. 1 of 2011 for the
                                                                          Progress of the past year by Dialog is
                   Bank-led Mobile Payment Services
Mobile Money                                                              directly attributed to clear and progressive
  Issuers        • Mobile Payments Guidelines No. 2 of 2011 for           guidelines.
                   Custodian Account Based Mobile Payment Services
                                                                          Banks are now in a position of more arduous
                                                                          mobile service customer acquisition and
                 Banking Act No. 30 of 1988, the Monetary Law Act         proportional identification rules do not
                 No. 58 of 1949 and the Companies Act No. 7 of 2007,      apply to bank customer acquisition.
                 as amended from time to time, and the Directions,
                 Circulars and other regulations issued by the Central
Deposit Taking                                                            Will be important to monitor any
                 Bank of Sri Lanka from time to time. The
                 amendments to the Banking Act as of date are by          unanticipated consequences such as a risk
                 Acts No. 39 of 1990, No. 33 of 1995, No. 2 of 2005,      that mobile operators will only pursue
                 No. 15 of 2006 and No. 46 of 2006.                       features that promote transactional
                                                                          revenue, hindering progress towards
                                                                          introducing a deeper and more diverse set
                 • Mobile Payments Guidelines No. 1 of 2011 for the       of financial instruments to address financial
                   Bank-led Mobile Payment Services
                                                                          inclusion objectives.
                         • Banks are permitted to delegate to 3rd
Retail Agents
                           parties for cash in/out to only their
      +                    accounts; customers must be acquired
                           through existing bank channels (i.e. must
  Customer                 have account first)
 Acquisition     • Mobile Payments Guidelines No. 2 of 2011 for
                   Custodian Account Based Mobile Payment Services
                         • Non-banks can acquire for wallet-only
                           services




                                                                                                  9
     Regulatory Framework & Requirements

                                          Current Regulations                                            Implications
                                 National identification policy requiring everyone
                                  over the age of 16 to register for identification;
                                                                                          Proportional identification guidelines are already
                                  current initiative underway, Electronic National
         KYC/AML                                                                          and will continue to prove benefits of removing
                                  Identity Card Project (e-NIC Project )
       Requirements              New mobile wallet guidelines permit proportional        a primary barrier to entry in accessing financial
                                  identification with wallet thresholds limited for       services.
                                  accounts without verified ID credentials.


         Licensing               All banking and custodial banking licensing is under
       requirements                 the oversight and discretion of the central bank


                                 Commercial banks are required to interconnect to
                                  the Sri Lanka Interbank Payment System, SLIPS,
                                  permitting same-day settlement among all                Coordination of the banking sector could prove
                                  account-to-account transfers. Intent is to expand        beneficial to envisioned efforts to launch a Common
      Interoperability            capability to retail payments as well.                   Card and Payment Switch intended to support real-
                                 Under custodian account mobile banking                   time clearing and settling of all electronic retail
                                  guidelines, mobile operators are not required to         transactions.
                                  interoperate with competing network operators.

                                   Payment and Settlement Systems Act No. 28 - 2005
                                   Financial Transactions Reporting Act No. 6 – 2006
         Payments                  Electronic Transactions Act No. 19 – 2006
                                   Exchange Control Act No. 24 – 1953
                                   Service Providers of Payment Cards Regulation No.
                                    1 of 2009

Sources: Central Bank of Sri Lanka, annual and statistical reports, bank website


                                                                                                                      10
• Macro-economic Overview
• Regulations
• Financial Sector
• Telecom Sector
• Mobile Financial Services Landscape




                                        11
Financial Sector Overview
• According to the Sri Lanka Central Bank, The Bank for International Settlements, BIS, recognized
  Sri Lanka as the 16th country in the world to receive BIS-Red Book status for modernized
  payments systems. It occupies the third place in Asia in terms of payment reforms and has been
  the first country to operate RTGS/SSS system with SWIFT link in the SAARC region.
• Opportunity for improvement is highlighted by Standard & Poor 2012 assessment of the banking
  sector. S&P rating service assigned Sri Lanka to its Banking Industry Country Risk Assessment
  (BICRA) group '8'. At the same time, it assigned an economic risk score of '8' and an industry risk
  score of '7’ (a ‘1’ is considered relatively lowest risk and ‘10’ is highest. Other countries in this
  risk category include Nigeria, Tunisia, and Kazakhstan. The industry risk score of '7' for Sri Lanka
  is based on S&P opinion that the country faces "very high risk" in its institutional framework,
  "high risk" in its competitive dynamics, and "intermediate risk" in its system-wide funding.
• Clear evidence of SLCB intent to shepherd continued progress for the sector is seen in terms of
  recently enacted guidelines that promote innovation and expansion of the sector through mobile
  banking. Future progress can also be anticipated given expressed intent by SLCB to advance
  financial sector infrastructure to accommodate real-time retail transactions through the
  interbank payment system, an achievement that would place Sri Lanka at the forefront of
  innovation in electronic banking and payments. More broadly, the business climate continues to
  make impressive strides with another lead in the World Bank Doing Business rankings from 96th
  to 81st in the 2013 ranking report.
                                                                                                   Source




                                                                                        12
    Financial Sector Snapshot
                        Regulated Financial Institutions              2009                2010              2011               2012
                    Banks                                                       36                  31                33                33
                                          Commercial Domestic                   11                  11                12                12
                                            Commercial Foreign                  11                  11                12                12
                                                    Specialized                  14                 9                9                 9
                    Branches                                                  2,715             2,897            3,204             3,329
                   Commercial
                                                       Branches               1,382             1,432            1,616             1,676
                                                      Extensions                832               898              989             1,041
                                                           Total              2,214             2,330            2,605             2,717
                   Specialized Banks
                                                       Branches                465                 500               515               527
                                                      Extensions                36                  67                84                85
                                                           Total               501                 567               599               612
                   Electronic Points of Presence
                                                           ATMs            1,876              2,006              2,237             2,390
                                                            POS           24,977             27,588             27,073            27,689
                                                    Credit Cards         892,291            778,544            837,662           935,783
                                                     Debit Cards       5,097,616          6,520,891          8,337,502        10,071,192

 Province           Western        Central         Southern        Northern           Eastern      North Western North Central           Uva          Sabaragamuwa
 Area (sq. km)           3,684            5,674         5,544           8,884              9,996            7,888            10,472          8,500            4,968
 Population          5,919,000         2,719,000    2,519,000       1,203,000          1,584,000         2,366,000         1,255,000    1,342,000         1,962,000
 Bank Branches           1,150               337           364            181               226               287               179            171             243
 Pop/Branch              5,147            8,068         6,920           6,646              7,009            8,244             7,011          7,848            8,074
 Branches/100,00
 0 pop.                  19.43            12.39         14.45           15.05              14.27            12.13             14.26          12.74            12.39
 Branches/sq. km           0.31             0.06           0.07          0.02               0.02              0.04              0.02           0.02            0.05

Sources: Central Bank of Sri Lanka Annual Report 2012, 2010; CBSL Payment Bulletins


                                                                                                                                       13
       Financial Infrastructure
      Clearing and Settling                                              Credit Bureaus
      LankaSettle System (RTGS + Central Depository                      Credit Information Bureau of Sri Lanka (CRIB)
      System + Scripless Securities Settlement System)                      Ownership: 94 financial institutions with lending authority
                                                                            are shareholders. Majority owned by central bank.
           Ownership: Central Bank
                                                                            Number banks/institutions involved: 95
           Banks using: 31                                                  Participating banks/institutions: All licensed Commercial
                                                                            banks, Specialized banks, Finance companies, Leasing
      Check Imaging and Truncation System                                   companies, few other institutions which have been declared
                                                                            as lending institutions for the purpose of the Act and the
         Ownership: LankaClear
                                                                            Central Bank
         Banks using: 31

      National Switches and Systems
      Common Card and Payment Switch (under development)
              Ownership: LankaClear
              Banks to use: 33 banks of the Sri Lanka Bank Association
      Sri Lanka Interbank Payment System (SLIPS) (small value bulk payments)
              Ownership: LankaClear
              Banks using switch: 31
      Sampath Interbank Link (ATM interconnect network)
              Ownership: Sampath Bank
              Banks using switch: 10
Sources: Sri Lanka Central Bank Financial System Stability Report 2012


                                                                                                                 14
Bank Snapshot
                     • +13 Million Customers
  People’s Bank      • 705 Branches
                     • 382 ATMs
                     • 10.1 Million accounts   • 43% market share of in remittances
  Bank of Ceylon     • 557 Branches            • 85,000 credit cards/ +2M debit cards
                     • 350 ATMs                • 4,571 Merchants

Commercial Bank of   • 210 Branches
                                               • Goal to reach 100,000 through mobile banking in 2013
    Ceylon           • 555 ATMs

                                               • Custodian bank for Dialog ezCash
  Hatton National    • 2.5 Million Customers
       Bank                                    • Wants to reach 300,000 customers in next 3 years with its
                     • 207 Branches
                                                 mobile banking

                     • 209 Branches
  Sampath Bank                                 • Leading issuer of cards in Sri Lanka (approx. 13% of market)
                     • 264 ATMs


DFCC Vardhana Bank   • 128 Branches



   Seylan Bank       • 126 Branches




                                                                                             15
Bank Snapshot continued
 Pan Asia Banking
                     • 62 Branches
       Corp


                     • 57 Branches
Nations Trust Bank                   • 1,200 POS Terminals
                     • 71 ATMs


    National         • 69 Branches   • Early mover in mobile payments; hindered by MNO lack of
Development Bank     • 41 ATMs         support


  Union Bank of
                     • 19 Branches
    Colombo


                     • 14 Branches
   Amana Bank
                     • < 14 ATMs




                                                                               16
     MFI Snapshot (largest MFIs by loan portfolio)
                                                      • 4 Million Borrowers   • $409 Million Loans
                  Regional Development Bank
                                                      • 253 Branches          • $400 Million Savings
                                                      • 195,000 Customers     • $143 Million Loans
                              SBDL
                                                      • 79 Branches           • $132 Million Savings

                                                      • 140,000 Customers     • $30 Million Loans
                              SEEDS
                                                      • 62 Branches           • $23.3 Million Savings

                                                      • 73,000 Customers      • $11.2 Million Loans
                            BRAC-LKA
                                                      • 90 Branches           • $2.3 Million Savings
                                                      • 46,000 Customers      • $7.1 Million Loans
                     Berendina Microfinance
                                                      • 17 Branches           • n/a Savings

                                                      • 39,000 Customers      • $4.4 Million Loans
                            Lak Jaya
                                                      • 44 Branches           • $2.1 Million Savings

                                                       • 16,000 Customers     • $3.7 Million Loans
                               VFL
                                                       • 9 Branches           • n/a Savings

                                                      • 17,000 Customers      • $3.7 Million Loans
                             WDFH
                                                      • 149 Branches          • $3.5 Million Savings
                                                      • 16,000 Customers      • $3.7 Million portfolio
                              BDCB
                                                      • 9 Branches            • n/a Savings
                                                      • 150,000 Customers     • n/a portfolio
                  Lanka ORIX Micro Credit PLC
                                                      • 145 Branches          • n/a Savings
Sources:MIX Market www.mixmarket.org, data for Lanka ORIX from IFC


                                                                                                         17
    Payment Service Provider Snapshot
                             • Public-Private Joint Venture of the Sri Lanka Central Bank (47%) and commercial banks of Sri
                               Lanka.
                             • Operates Sri Lanka Interbank Payment Switch, SLIPS, for interbank small value bulk payments.
                             • Operates Check Imaging and Truncation System, CITS, for digitizing and clearing checks.
                             • Slated to operate the Common Card and Payment Switch to faciliate real-time retail transactionsl

         LankaClear Ltd
       Established in 2002




Sources:www.lankaclear.com


                                                                                                               18
• Macro-economic Overview
• Regulations
• Financial Sector
• Telecom Sector
• Mobile Financial Services Landscape




                                        19
Mobile Overview
                                                                                                8%                          Dialog (Axiata)
                           Mobile Profile                                                                                   Etisalat
                                                                                                               35%
    Operators                Dialog Axiata, Mobitel, Airtel,                        22%
                             Etisalat, Hutch                                                                                Hutch (Hutchison)
    Coverage                 96% (Dialog)
    Unique                   9,281,976*
                                                                                                                            Mobitel (Sri Lanka Telecom)
                                                                                       14%
    subscribers
                                                                                                       21%                  Airtel (Bharti Airtel)
    SIMS                     22,410,352
    subscriber ARPU          $6.23

                            Market Share                                                                             Activations
60.0%                                                                                   9,000,000

                                                                                        8,000,000
50.0%                                                         Dialog (Axiata)                                                                  Dialog (Axiata)
                                                                                        7,000,000

40.0%                                                         Etisalat                  6,000,000                                              Etisalat
                                                                                        5,000,000
30.0%                                                         Hutch (Hutchison)                                                                Hutch (Hutchison)
                                                                                        4,000,000
20.0%                                                         Mobitel (Sri Lanka        3,000,000                                              Mobitel (Sri Lanka
                                                              Telecom)                                                                         Telecom)
                                                                                        2,000,000
10.0%                                                         Airtel (Bharti Airtel)                                                           Airtel (Bharti Airtel)
                                                                                        1,000,000
 0.0%                                                                                             0
          2008     2009     2010     2011     2012                                                     2008   2009   2010   2011   2012

Sources:Wireless Intelligence
* ITU 2012 data indicates a higher penetration rate of 87%, or 18.1 million unique subscribers. See:
http://www.itu.int/net/newsroom/GSR/2012/reports/stats_sri_lanka.aspx
                                                                                                                                          20
     Mobile Network Operators
  Operator               Operator                  Ownership, Partnership and other Information
                         Information
                         • Subscribers:            • Established: July 07, 1995 as a Public Limited Company
                           7,825,000               • 83% owned by Axiata Group Berhad and listed on the Colombo Stock Exchange
                                                   • HSBC – 2.3%, IFC 0.8%
                         • Market Share:
                           35%                     • Partners Include:
                                                         • Hatton National Bank – Serving as Custodian account holder for ezCash
                                                           mobile wallet
                                                         • Dedicated USSD string for bank access for People’s Bank, People’s Mobile
                                                           Banking
                         • Subscribers:            • Wholly owned by Sri Lanka Telecom Ltd.
                           5,031,045

                         • Market Share:
                           22%



                         • Subscribers:            • Wholly owned by Etisalat parent of UAE
                           4,685,000

                         • Market Share:
                           21%




Sources: Wireless Intelligence, company websites


                                                                                                                 21
     Mobile Network Operators
  Telco                    Telco                   Ownership, Partnership and other Information
                           Information
                           • Subscribers:          • Owned by Hutchison Asia Telecommunications, subsidiary of Hutchison Whampoa
                             3,169,307               Limited
                                                   • Partners:
                           • Market Share:               • State Bank of India: USSD SMS mobile platform (mobile Wallet) that allows
                             14%                            money transfer, P2P fund transfer, balance inquiry, etc.



                           • Subscribers:          • Operations launched in 2009
                             1,700,000             • Reports are that it is an acquisition target and Dialog has expressed interest

                           • Market Share:
                             8%




Sources: Wireless Intelligence, company websites


                                                                                                                   22
     Mobile Outlook
       •      Current situation
                New subscriber growth rate is declining and will flatten in next few years according to
                 Wireless Intelligence

                Industry consolidation is possible and some reports suggest discussions are underway


       •      Trends/expectations
                     11.9 million unique subscribers are anticipated by 2018, a penetration of about 52%.

                     Data enabled phones are already dominant but 4G penetration is anticipated to only reach
                      2.3 million subscribers by 2018, 19%.


       •      Implications for mobile money
                Mobile money will only benefit from greater mobile penetration; greater adoption of mobile
                 money service may in fact further increase growth and penetration rates

                With a strong data-enabled phone penetration, consumers could enjoy richer and more
                 intuitive mobile application experiences (in comparison to rudimentary SMS text string and
                 USSD simple menu options); capability could also open door for phone to serve greater role
                 as POS replacement.


Sources: Wireless Intelligence


                                                                                                23
• Macro-economic Overview
• Regulations
• Financial Sector
• Telecom Sector
• Mobile Financial Services Landscape




                                        24
Mobile Financial Services Overview
• Two types of mobile financial services are currently offered in the Sri Lanka Market:
        (1) Non-bank led Mobile Wallets (2) Bank led Mobile Banking
• Mobile Wallets:
        Dialog is the only current provider of a mobile wallet in Sri Lanka.
        Proportional ID rules apply; no ID/registration required for a simple account with Rs
         10,000 max. balance. Greater balance up to Rs. 25,000
        Early uptake has been positive, 750,000 in 100 days
• Mobile Banking:
        Several banks have offered simple account access and basic utility payment capabilities
         via a mobile application. Hatton National Bank most active effort currently.
        Central bank requires that mobile banking users must first be a bank account holder and
         apply for account under existing rules
• Outlook
        Central bank and bank association are actively pursuing development of the Common
         Card and Payment Switch with the expressed desire to support real-time mobile payments
         and transfers. If realized, would have significant impact on landscape.
        Not clear yet if Dialog ezCash will lead towards greater bank penetration but logical path
         is available through support of institutional payments; Dialog has expressed interest to
         support micro-credit and micro-insurance solutions.




                                                                                     25
     MFS Implementations: Mobile Wallet

                                    • A wallet managing funds held in Dialog’s custodian account at Hatton National Bank.
                                      Deutsche Bank AG serves as independent administrator of the custodian account.
                                    • User can make purchases for 15 rupee fee
                                    • Service supports bill payment, P2P, B2C payments (salary), B2B collections, retail
                                      payments, internet payments
                                    • Support for “institutional payments” presents possibility for linking to formal
                                      financial services.
                                    • 750,000 customers in first 100 days
                                    • 13,000 retailers for purchases & cash in/out
                                    • Daily transactions:
             Product:                     • Utility Payments: Rs 7 Million
              Wallet                      • Cash In/Out: Rs 3 Million
                                          • P2P: Rs 0.3 Million
               by                   • Simple account can be opened through the phone without need for registration or
          Dialog Axiata               credentials with a balance threshold of 10,000 rupees. An account with a higher
       (Launched in 2012)             balance threshold of 25,000 rupees requires additional identity verification at a
                                      Dialog store
                                    • Central Bank granted permission in April 2013 for Dialog to accept inward
                                      international remittances to the ezCash wallet custodian account to then be
                                      redirected to customer’s bank account.
                                    • Support for ezCash announced for online classified website SmartMarket



Sources: company websites, presentation by Fariq Cader – Senior General Manager Dialog Axiata PLC


                                                                                                            26
MFS Implementations: Mobile Banking
                    • Mobile Cash allows anyone, customer or non-customer, to send cash to anyone who has a
                      mobile phone. enables anyone to send up to Rs. 200,000/- daily over any Mobile or CDMA
                      network to anyone, anywhere in Sri Lanka! Beneficiaries/recipients are notified instantly
                      on the transaction via Sampath SMS Alertz, There is no requirement of a pre-registration
                      to send or receive money. Money can be collected instantly from any of Sampath Bank’s
                      island-wide branch network or from any Sampath Bank ATM island-wide, 24-hours a day,
 Sampath Bank
                      365 days a year
  Mobile Cash
                    • Bank also offers traditional mobile banking and SMS alert products that offer added
  Re-launched:        convenience for existing account holders to access accounts, make transfers to their own
      2012            accounts, and pay utility bills
                    • Annual report of 2012 acknowledges recent central bank guidelines that have opened
                      competition to non-bank entities (Dialog’s ezCash), have added pressure on the bank to
                      continue innovations


                   • Mobile banking relaunched in 2013, building upon preexisting SMS banking servies.
                   • Supports smartphone and feature phones with its application
 Mobile Banking    • Goal is to enlist 300,000 of its 7.5 million customers to use the application in 3 years.
       by
 Hatton National
      Bank




                                                                                                   27
     MFS Implementations: Mobile Banking
                                  • People’s Mobile Banking – USSD menu in collaboration with Dialog


          People’s Bank

      Launched: February
            2012

                                  • early NDB Bank collaboration with Dialog
                                  • Based on MChek software
                                  • 15,000 customers
                                  • 25,000 ez retailer outlets
            NDB Bank              • 300+ outlets serve as mini-banking outlets as authorized by CBSL
         Launched: 2007




Sources: company websites, presentation by Fariq Cader – Senior General Manager Dialog Axiata PLC


                                                                                                       28