Gaming Industry Summit 2015

Douglas HalsallChairman/CEO,

Advanced Integrated Systems Ltd.

Agenda

Mobile Money – The Perception

Digital Cash (Quisk) – The Superior Alternative

Quisk + Mobile Betting – The Elegant Solution

For Governments: Cash usage associated with slower economic growth Fosters the “shadow economy” , and money laundering

For Banks: No fee income from cash transactions Incur significant operational costs due to cash services

For Merchants: Cash customers are opaque– prevents effective marketing Incur significant cash handling expenses

For Consumers: Presents personal safety risk Significant time & inconvenience getting cash for payments Difficult, slow and/or expensive to send cash to others or to pay

bills, or access to remote goods and services – eCommerce & Betting.

The Problems with Cash

4

Mobile Money: The Perception Evolved in Africa/Asia - Banks inaccessible Addresses the needs of the Unbanked Uses the ubiquitous cell phone as the instrument of

storing value and payments Controlled by TELCOs – Accounts & Float Employs Cash-in & Cash-out agents More than 90% of Transactions are P2P and

Cash-In/Cash-Out.

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6

The Telco Model

Addresses the unbanked Removes the challenges

associated with remote transfer of cash

Unique Cell phone number

Ideal for remote areas Especially P2P, with local

Cash In and Cash out Agents

Inefficient - compared to Merchant POS

and ATM transactions Merchant settlement Cash in/Cash Out

Limited or no KYC information

Cash-In/Cash-out agents costly

Little/No Account Control Little Demographic

Information Limited interoperability –

Single Issuer.

Strengths Weaknesses

The Bank Model Main Advantages

1. Addresses all the needs of the unbanked PLUS2. Multi-Bank participation (Interoperability)3. Main objective: To digitize cash4. Greater Utility – POS, ATM, eCommerce, Bill

Pay, Mobile Betting, etc, etc.5. Integrated with Banks’ Core Systems, thus

facilitating Top Up from other accounts – saving, chequeing, credit card, etc. (therefore facilitates higher limits than “mobile money”)

6. Multi-Bank Settlement – a la VISA

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The Future of Money

9

Cash, or fiat currency, regulated by a central bank, in digital format (not physical) which is domiciled at a bank and can be simply and securely used by consumers with their mobile phone number & PIN

What is Digital Cash?

10

Your moneyWithout the cash.Without the cards.Without the wallets.

In your bank.

• Over 6 billion mobile phones, 2 billion bank accounts, massive payment infrastructure for over 16 billion debit and credit cards

• Cash is becoming increasingly obsolete in the 21st century

• BUT, globally 85% of all retail transactions are still conducted in cash!

Business Driver: Create alternative to cash

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0% 20% 40% 60% 80% 100%

FinlandNorwayCanada

United StatesFrance

United KingdomSingapore

South KoreaAustraliaGermany

JapanSpain

PolandItaly

BrazilSouth AfricaSaudi Arabia

RussiaMexico

ChinaIndia

Nigeria

% of Retail Transactions Conducted in Cash

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Source: McKinsey Global Payments Map, 2013.

Cash-based economies

More digitized

economies

Business Driver: Cash is still “king” in most places

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• Quisk aspire to do for cash what Visa, MasterCard and others have done for credit

• Quisk is the creator of a highly efficient, next-generation debit platform enabling a new, low-cost digital cash payment type

• We connect the Quisk platform to core banking platforms and to POS terminal and ATM networks

• Quisk creates multi-issuer, interoperable environments with real-time settlement

• The Quisk platform is “Mobile Money 2.0”

Bank-centric, interoperable and wider range of consumer transaction types

Quisk: Bringing Cash into the 21st Century

Quisk: Much Broader Range of Transaction Types

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• Quisk offers a cloud-based platform to enable banks to offer new consumer products

• Banks work with merchant acquirers to sign up merchants (leveraging their existing POS systems)

• Banks offer Quisk accounts to new and existing customers in compliance with KYC, AML, and other country-specific regulations

• Consumers, using their mobile phone number and PIN, make retail purchases, P2P transfers, cash in/cash out, and pay bills—phone does not need to be present

How Quisk Works

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Uniqueness of Quisk Multi Issuer ISO 8583 Standard Telco Agnostic POS/ATM Connectivity Merchant Settlement Subsystem Inter-Bank Settlement Subsystem Integration with Core Banking System KYC and AML Capability Interoperability PCI/VISA Approved Switch.

Small percentage fee per transaction with no minimum ensures that every kind of transaction is allowed

No Minimum Fees = No Minimum Transaction

Quisk: Mobile Money PlusNo Minimum cost – i.e. permits micro transactions

Telco Agnostic Any Handset ISO 8583 Ubiquity/Convenience

Digital Cash!

The Elegant Solution

Critical Success factors for the Enhancement and Growth of Betting through Mobile

1. Strong KYC Process

2. Robust AML Protection

3. Effective Source of Funds Management

4. Effective Prevention of Cross-border Gaming

5. Protection of Punters’ Funds

6. Promotion of Responsible Gaming

7. Transparent and Auditable Betting Operations

8. Comprehensive and Auditable Transactional and Compliance Reporting

9. Efficient Financial Settlement

10. Rich and Engaging User Experiences.

Mobile Betting – The Traditional Model

Mobile Betting – The Quisk Model

NB: ALL Betting Transactions, Including Bet Numbers Recorded by Bank.

For Betting Operators Attract new Punters High Churn Rates – Punters’ Winnings are immediately credited to their accounts to

fund more Bets Efficient Settlement Process – Funds are credited to the Operators’ accounts

immediately upon settlement of Betting Transactions Comprehensive Transaction Reporting 24x7 Betting.

For Regulators Robust AML Protection Strong KYC Due Diligence Tax Revenue Protection Prevention of Cross-border Gaming – No Credit Cards! Comprehensive Compliance Reporting.

For Banks: Mobile Betting Provides a New and Lucrative Revenue Source Opportunity to Tap into the “Unbanked” Market.

For Consumers: Protection Against Loss of Funds Protection from Cyber Crimes, such as Identity Misuse and Credit Card Fraud Rich and Engaging User Experience.

Benefits to Stakeholders

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Quisk Mobile Betting: Key Takeaways1. The supervision of KYC for Punters is strictly under the

purview of a BOJ approved Bank.

2. Source of Funds is totally monitored by a BOJ approved Bank.

3. All Betting activity recorded as Banking Transaction By BOJ approved Bank.

4. The Betting Institution does not hold Punters' Funds, in a Betting account, in violation of The Depositors Act.

5. Local Betting Institutions do not run the risk of "losing Punters accounts records" and suffering the consequences.

6. Punters have immediate and continuous access to account balances, at all times, as it's maintained in a DDA account with a BOJ approved Bank.

7. All Reporting is through and from a BOJ approved Bank.

8. Quisk is hosted in a data centre cloud, with full redundancy and 24 x 7 x 365 access.

9. Comprehensive electronic file and Business Intelligence Tool.

Quisk Mobile Betting: Key Takeaways – cont’d

Recommendation for Gaming Lounges

The Quisk Model for Mobile Betting is a far more efficient model for Gaming Houses than existing approaches

KYC Requirements are already handled by Quisk, which removes the inhibition of some Punters in providing Gaming Houses with KYC info

Top Up using Quisk is 40-50% less expensive than using Credit Card.

Monitoring by BGLC and Reporting are Bank Certified.

AIS: Who we are

* Regional Transaction

Processor

* Operates Mission-

Critical, Cloud-based

Data Center – Plus 2

Fully Redundant

Facilties for Quisk

* Data Center Uptime:

Greater than 99.99% for

the last 15 Years

AIS CLOUDCAYMAN

JAMAICA

BAHAMAS

2015: Trinidad, Barbados, St. Lucia and Curacao

Health Claims Processing

0

200

400

600

800

1000

1200

1400

Provider Type

Prov

ider

s

PharmacyDentalOpticalMedicalLABHospital

Number of Card Holders: 1,260,000

Claims Processed Daily: 130,000

CATEGORY TOTALMedical 3512Pharmacy 546Dental 196Optical 132Lab 69Hospital 40GRAND TOTAL 4495

Quisk is Red Herring 100 Winner!

Recognised as: “the most exciting and promising private technology start-ups”

OUR PARTNER:

Thank You!

7 Oxford TerraceKingston 5Tel: 929-7877www.aiswebnet.com