Mobile Financial Services in Telenor

Tine Wollebekk

Global Head of Telenor Financial Service

September 21st 2015

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Number of live mobile money services for the unbanked by region (year end)

With 246 mobile money services in 89 countriesMobile money is now expanding to more regions

9

Countries have more mobile money

accounts than bank accounts

21services have morethan one millionactive customers

Yet very successful operations are still too few

4

Mobile Financial Services for the unbanked

P2P payments

Government & aid disbursement

Lending & Savings

Insurance

Telenor is uniquely positioned to deliver Financial Services

# of customers Nationwide distribution

Accessible technology

A strategy to serve everyone

A pragmatic approach

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4 basic building blocks in Mobile Financial ServicesHigher value services can be built from Agent or Online positions

Digital paymentE.g. Payment Service Provider, Wallet

Agent driven servicesE.g. Cash-in/out, bill payment, P2P, airtime

Balance sheetE.g. Savings, Credit

3rd partyE.g. Insurance, Credit, Savings

Financial Services – industry development and our position

Industry development Current positions

• Pioneer in branchless banking in Pakistan and leading player. Currently 17 mill active customers

• One of the largest online payment service providers (PSPs) in Thailand. And wallet position launched in 2014

• MobiCash enables MFS for 6 bank partners; OTC P2P and Bill Pay. Currently 1 mill customers

• Digi and Telenor Myanmar have established FS organizations – launch planned for 2015 in Myanmar and International remittance in Malaysia

• Launch Payment Bank in India in 2016 with Indian partner

• Telenor Banka launched first mobile and online bank in Serbia Sept 2014. 90.000 customers in 11 monhs

• Valyou, a JV with DnB in Norway, offering contact less (NFC based) payment launched in 2014

• Mobile Money services taking off

‒ 57 markets have 2+ mobile money services

‒ Over 200m mobile money accounts globally

• Within Telenor footprint mobile money customers exp. to increase ~34% annually

• Many mobile operators offering financial services

• Industry conversion as financial players and technology companies entering the mobile money space

• Regulations and increased competition drive need for partnerships and interoperability

• Telenor FS Revenue of 0,5 bn NOK in 2014

• 19 m FS customers in 2015

• FS established in 6 Asian and 3 European markets

* OTC = Over the Counter, P2P= Peer to peer

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2020 vision: Telenor will enable everyone to transact conveniently on their mobile phones

We will enable everyone to digitize money• Leveraging cash-in/-out at our points of sale• Enabling salary/fund disbursements• Facilitating P2P and international remittance

We will enable payment everywhere• Digital payment online through app and PSP position• Digital payment at physical point of sale• Based on open wallet with various sources of fund

We will enable financial services when they need it• Convenient micro-savings services • Micro-credit and installments based on credit scoring• Inspiration and relevant offers throughout the customer journey based on insight

Financial Services shall have a significant stand-alone value for Telenor

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The financial services opportunity is attractive

Telenor’s Asian markets 2018:

Total mobile money market value est.

USD 4.5 billion

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Thank you