SMS Banking TABLE OF CONTENTS The Mobile World

SMS Banking

TABLE OF CONTENTS • The Mobile World 3 • SMS Banking - Introduction 7 • SMS Banking - Push Messages 8 • SMS Banking - Pull Messages 9 • Technical Overview 11 • Features 12 • Example Uses 13 • Benefits 15 • About Mobi. Web 16 • Quality 17

The Mobile World – Introduction Our world is more Mobile now than ever. In 2013 there were more than 6 billion subscriptions. With increasing penetration of mobile phones to the most rural areas, mobile networks cover more than 90% of the world’s population. Consumers are always on the move and expect to use services and products on the go. There are 1 billion smartphones and there are 5 billion feature phones. All these phones have built-in SMS capability. Mobile apps and smartphones are the latest trend in the industry, offering rich functionality, but limiting the potential marketplace. Availability, affordability and ubiquity make the mobile phone SMS capability an essential platform for global enterprise banking products and services. With the internet and mobile revolution, expectations are shifting towards the mobile phone. Many globally established financial institutions now choose SMS as a key channel when planning their mobile strategy. The mobile phone has become the new “must have” for any serious “innovative” banking product.

The Mobile World – Introduction Financial institutions constantly face new competitive challenges to improve margins or to reduce costs. Over the years technological innovations have helped banking corporations to reduce costs, deliver new services and enhance banking customer experiences. As the mobile revolution continues to evolve, mobile technologies are available for the banking industries to adopt and deploy. The Short Message Service (SMS) is a well-established, mature technology that banking institutions can benefit greatly from. It is available on all mobile phones across all technologies, including GSM, CDMA and 3 G.

The Mobile World – Facts • 6 billion subscriptions worldwide. • Mobile operators cover more than 90% of the world. • Consumers are always on the move (Consumers expect to use services and products on the go). • All mobile phones support SMS (Smartphones and feature phones). • SMS does not require data connections or apps. • SMS is cost effective and ubiquitous. • Consumers carry their mobile phone and use it for everyday activities 24 hours a day, 7 days a week (the easiest and cheapest channel on which customers can be reached on the spot). • SMS traffic is expected to expand to nearly 10 trillion by 2015.

The Mobile World - Mobile cellular subscriptions (millions) - 6915 millions The Americas; 1059 Developed Nations; 1515 Europe; 780 CIS; 397 Asia & Pacific; 3604 Arab States; 410 Developing nations; 5400 Source: © International Telecommunication Union (May 2014) Africa; 629

SMS Banking – Introduction SMS banking is a type of mobile banking, a technology-enabled service offering from banks to its customers, permitting them to operate selected transactional banking services over their mobile phones using SMS messaging. Through the SMS Banking service channel: • Banks and financial institutions service and engage their customers anytime, anywhere and without internet. • Customers receive the latest information through their mobile phones anytime and from anywhere in the world, at their outmost convenience. SMS Banking is divided to: • Push Messages, SMS messages bank sends to customer’s mobile phone, without the customer initiating a request for the information. • Pull Messages, SMS messages bank sends after customer initiates a request using a mobile phone.

SMS Banking – Push Messages are automatically send by the bank to customers’ mobile phones. These messages can be on demand broadcasts (vital information alerts) or event/transaction based (notifications) on registered accounts. Push Message Process Bank corporation infrastructure banking systems connect to Mobi. Web Enterprise Cloud Messaging Platform (MWECMP) and transmit SMS messages data through established secured connections. MWECMP utilizes its direct connections with the Mobile Network Operators (MNOs) and MNOs deliver SMS messages to bank corporation’s customers. Financial Institution Infrastructure / Banking Systems Enterprise Cloud Messaging Platform Mobile Network Operators Financial Institution Customers

SMS Banking – Pull Messages are initiated by the customer, using a mobile phone, for obtaining information or performing a transaction on the bank account. Pull Message Process Step 1 Bank corporation's customers send SMS messages that include transaction commands to predefined banking service numbers. MNOs receive SMS messages and transmit them to MWECMP through direct connections. MWECMP sends SMS messages data to bank corporation infrastructure banking systems through established secured connections. Financial Institution Customers Mobile Network Operators Enterprise Cloud Messaging Platform Financial Institution Infrastructure / Banking Systems

SMS Banking – Pull Messages Pull Message Process Step 2 Based on the transaction commands of the SMS messages received by the bank infrastructure banking systems in Step 1, bank corporation infrastructure banking systems process the transaction commands and prepare response SMS messages. Then, bank corporation infrastructure banking systems connect to Mobi. Web Enterprise Cloud Messaging Platform (MWECMP) and transmit SMS messages data through established secured connections. MWECMP utilizes its direct connections with the Mobile Network Operators (MNOs) and MNOs deliver SMS messages to bank corporation’s customers. Financial Institution Infrastructure / Banking Systems Enterprise Cloud Messaging Platform Mobile Network Operators Financial Institution Customers

SMS Banking – Technical Overview SMPP / HTTPS APIs SS 7 / Direct Connections Secured Virtual Private Network (VPN) Bank Corporation Infrastructure / Banking Systems Enterprise Cloud Messaging Platform Mobile Network Operators GSM / CDMA / Satellite Bank Corporation Customers

SMS Banking – Features - Worldwide Coverage - Simplified Global Messaging through one interface - Established, Flexible & Ubiquitous Technology - High Performance (2000 SMS per sec) - High Availability (99%) - Low Deployment, Maintenance and Support cost - Enhanced Security (VPN / up to 1024 bit AES) - 24/7 Enterprise Support through SLAs - Minimal Foot Print in Bank’s IT Infrastructure (No programming libraries required) - Easy Integration (SMPP / HTTP APIs) - Highly Customizable and Scalable Solution

SMS Banking – Example Uses Push Message Applications - One-time passwords and user authentication - Insufficient funds notifications - Credit card & loan payment reminders - Large value withdrawals on accounts or ATMs - SMS card activations - Payment notifications of cheques issued - SMS marketing for promotions, loyalty points & discounts programs - Large value payments on credit cards or out of country activities on credit cards - Transaction confirmation requests (Credit Card & Web Banking) - Anti-fraud notifications - Periodic account balance reporting - Execution status of standing orders - Payment notifications of cheques issued - Call center information responses

SMS Banking – Example Uses Pull Message Applications - Loyalty points requests - Requesting suspension of credit cards - Credit card limit requests - Credit card & loan payment reminders - Account balance requests - De-activating lost or compromised credit or debit cards - Standing orders requests - Customer service inquiries - Mini statement requests - Electronic bill payments - Transfers between customer's own accounts - Stop payment instructions on cheques - Foreign currency exchange rates inquiries - Fixed deposit interest rates inquiries

SMS Banking – Benefits • High ROI. • Increased revenues. • High cost savings for Marketing, Card Operations, Fraud, Banking Operations and Customer Support. • Fraud activity losses reduction. • Reduced collection costs. • Increased customer loyalty, convenience and satisfaction. • Enhanced customer experience / reduced customer support cost. • High availability of banking operations anywhere, anytime and without internet.

About Mobi. Web Since its establishment in 1999, Mobi. Web is providing global SMS Messaging for B 2 B, B 2 C and C 2 C mobile interaction. Mobi. Web has established multiple direct connections with mobile operators around the globe. This makes Mobi. Web the ideal partner for companies that demand high quality SMS messaging services, meeting the most demanding enterprise requirements. Mobi. Web actively participates in the development of the mobile ecosystem as a GSMA associate member and a Mobile Marketing Association (MMA) member. Using direct connections to telecommunication carriers and operators in the largest cloud data centers spanning across the globe, Mobi. Web provides high quality telecommunication solutions to more than 2350 enterprises.

Quality • Worldwide reach, covering 96% of the world • High performance SMS messaging processing High Performance • Strict Service Level Agreements • 99% service availability with fallback ability – Redundant Infrastructure Worldwide Reach Unrivalled Quality • Enhanced security • Easy integration with minimal footprint SLAs Enhanced Security 99% Availability Easy Integration