ACs What to expect going forward Options and

AC’s What to expect going forward Options, and not so options, plus integration challenges

Important Dates AC Implementation Getting Ready for AC No New AEDO & NAEDO’s Migration / AC Creation Finalise development for AC and NAEDO Migration / Implementation Sunset Date Existing AEDO and NAEDO payment instructions to be phased out Migration of Existing NAEDO’s and Origination of new AC transaction. Priority given to AC and AEDO above NAEDO Debi. Check (AC) Origination AEDO/NAEDO Origination Continues No New or Re-Negotiated AEDO/NAEDO / NAEDO Migration ? AEDO/NAEDO/AC Collections processed in the early window AEDO/ AC /Migrated NAEDO Process in the early window as 1 st Priority All NAEDO processing moves to a 2 nd priority Debi. Check processing Migrated AEDO/NAEDO processed together with Debi. Check in the early window Debi. Check Awareness, Education and Training Execution 1 Now 15 Oct 2019 16 Days 31 October 2019 2 6 Months 1 May 2020 3 6 Months 31 October 2020

Debi. Check Options v AC Transaction Types v TT 1 – Realtime v Auth Method v v Network Initiated (NI) USSD v 120 Seconds to conclude the Transaction v Non Face to Face in call Solution TT 1 – Delayed v v Auth Method determined by bank: v ABSA : ATM, Banking App, Online banking, POS , CI (Pull) USSD v Bank of Athens : CI (Pull) USSD v Bidvest Bank : Online banking, NI USSD v Capitec Bank : Banking App, Branch, Contact centre, CI (Pull) USSD v Finbond Mutual Bank : Branch , Contact centre, CI (Pull) USSD v FNB : ATM, Banking App, Online banking, CI (Pull) USSD v Nedbank : ATM, Banking App, Branch, Contact centre, POS, CI (Pull) USSD v Standard Bank : ATM, Banking App, Branch, Contact centre, POS, CI (Pull) USSD v Ubank : CI (Pull) USSD End of day to conclude the Transaction

Debi. Check Options v AC Transaction Types v TT 2 – Delayed-batch v Submit bulk transactions for Authentication v Auth Method determined by bank: v v v Same as TT 1 delayed End of day to conclude the Transaction TT 3 – POS Terminal (Card and Pin) v Realtime via POS Terminal v Card and Pin Present v Replacement for AEDO v Face to Face

Debi. Check Integration v v v Integration Options v Via Service Operator (SO) v Via Acquiring bank (Direct) Integration Technologies v Web Services for Realtime and Batch v File Exchange (Batch) v Web Interface Technical and Time Consuming

Debi. Check Responses v AC Responses v Authenticated by the debtor (AAUT) : 15% to 23 % v Reason has not been specified by customer (Customer rejects mandate) (MS 02) v No response from the debtor (NRSP) : 59% v Technical Failures: v v The operation has timed out v Unable to connect to remote server (E 9902) v Internal Processing error v Internal message response processing failure (E 9903) Validation Failures v Invalid date (DT 01) v Invalid first submission date. Request failed. v Invalid Bank account type (3030) v Numeric field total_amt is invalid (3215) v No such account (900026) v Account is not matched to ID number (910002)

AC Migration v All existing AEDO/NAEDO mandates needs to be Migrated to AC’s v How to Migrate ? v v v Speak to your Service Operator(SO) or Acquiring Bank or System Provider v Web Services vs Flat File vs Automatic SO Migration on Instruction Why ? v Advantage of 1 st priority collections in early window together with AEDO and AC v In preparation for the 1 st of May 2020 directive date When ? v From now or 1 st November 2019 to the 1 st of May 2020 v Determine your own strategy v 1 st Priority AEDO, AC and Migrated AC Volumes vs 2 nd Priority NAEDO Volumes v System Stability of AC Migration and AC Collections Core

AC “not so Options” v v Stability of the AC Systems : AC Core and Outer Core (SO’s) v Origination v Authentications v Collections v Volumes of Transactions Phone Number Correctness • Phone Number on Record at the Bank vs Phone number Collectors has available v NI USSD (TT 1 Real Time) v v v 27 % Technical Failure rate. v Voice over LTE (Vo. Lte) on 4 G networks (In Call) Cellular network v v NI USSD Notification Not delivered to devices Congestion and delivery of content AC Fees (On top of EDO fees) v Mandate Initiation Successful / Unsuccessful v Mandate Re-Authentication Successful / Unsuccessful v Mandate Cancellations v Mandate Suspensions(Stop payments)

AC “not so Options” v Debt Collections process • The Cooperation of the debtor in the debt collection process to partake in the AC process • More Time Consuming. Call will could take longer with the debtor due to more complexity in AC. • No response from the debtor (NRSP) feedback. • Additional Follow up call ? • Provides a possible “Escape” not to complete the new arrangement. • Requires more complex and real time integrated collections systems

AC - The Future v Adoption of Debi. Check (AC) v Understand the Technology and Place it fits into your business v Provide the required Internal and consumer education / training v Engage with your SO, Bank or System provider, they are your partners v Adopt and Adapt v Ongoing engagement with your association

AC Examples

AC Examples FNB Bank : TT 1 Realtime via NI USSD

AC Examples FNB Bank : TT 1 Realtime via NI USSD

AC Examples FNB Bank : TT 1 Realtime via NI USSD

AC Examples FNB Bank : FNB APP

AC Examples FNB Bank : FNB APP

AC Examples FNB Bank : FNB APP

AC Examples FNB Bank : Online Banking

AC Examples FNB Bank : Online Banking

AC Examples FNB Bank : Online Banking

AC Examples FNB Bank : Online Banking

AC Examples FNB Bank : Online Banking

AC Examples FNB Bank : Confirmations

Thank you. • Question Session