Presentation on Remittance

1
Presentation on Remittance Cash Management

• Banking Day 2006

2
Agenda
3
Transactional Complexities
Segmentation
Transaction
Complexity
Volumes
4
Corporate Treasury View
5
Bank services is becoming the hub of
distribution financial chain
Business Model
LC Payment
Vendor Payment
Procurement Via Supplier
Vendor Financing
Purchasing, Distribution, Wholesale, Store
Payment to Logistic Service Providers
Multi-tier Sweep
Logistic Process
Netting
Reconciliation
Sales Order
Collection Report
Payment Reconciliation
PDC Discounting
Cheque Custody
Cheque Reconciliation
6
Agenda
7
Current Business Challenges
How do I distinguish my banks offering
8
Business focus

• Introduce fee based products
• Add additional services to existing portfolio
• Increase customer stickiness

Inward Remittance (Retail)
Cash Management (Corporate)
9
Agenda
10
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.

11
Bank and Customer Perspectives
Better Conversion Rate
Ease of use
Fast Reliable Remittance
Low Cost
Cross Selling opportunities
Wider Reach
Remittance
Remittance
Reminders for Events
Explore Investment Opportunities
Low Manual Intervention
Reward Referral Plan
Bank Perspective
Customer Perspective
12
Agenda
13
Why Cash Management

• Traditional lending relationships are becoming
  more demanding
• Management of Fee based and control of float
  based income is a necessity
• Cash Management has been a flagship offering of
  MNC banks and Vietnamese banks should capitalize
  on their distribution network

14
Bank and Customer Perspectives
Attract Deposits
Maximize Profit
Convenience
CashMgt.
Information
RetainCustomer
Market Expansion
CashMgt.
Minimized Cost
GenerateFee and Float
Bank Perspective
Customer Perspective
15
Agenda
16
CashTech Fact Sheet
Revenue

• More than 700 banks as customers, with over 150
  sites on Cash Management
• Customers include HSBC, Deutsche Bank, Citi, BNP
  Paribas, ABN Amro Bank, Kasikorn, Maybank
• Cash Management expertise spanning over a decade
• Local expertise with implementations at large
  local banks in the region

74.0 M
.


70m
58.5 m


60m
47.6 m


50m
39.8 m


40m

30m

20m

10m
0
2002
2003
2004
2005
650 Full Time Employees
Support
Support
Support
Support
Support
Support
SGA
SGA
SGA
SGA
SGA
SGA
CashTech 230 FTE
55
85
55
85
55
85
US
Europe
50
45
Technology
Technology
Technology
Technology
Technology
Technology
Services
Services
Services
Services
Services
Services
240
240
240
180
180
180
17
Solution Overview
J2EE Component Based Solution Multi-Lingual
Multi-Currency Multi-Bank Multi Entity
18
Credentials
Rated by the Tower Group as the Leading Cash
Management Solution provider in the Asia Pacific
JPMorgan Internet Based Cash Management 2001
Customizable Screen, Workflow, and multi
currency product Support
Bank Technology Report 10 to Watch! 100 J2EE,
ability to differentiate Banks offerings from
the rivals
As per Celent Strong Player in Asia Pacific
Euromoney 2005 Rates CashTech as the best cash
management solution provider globally
Meridian Research says Leading vendor with Asian
experience
Bank Technology 2005 Award
19
Thank you

• Your questions..