The success of electronic banking in a cash heavy society

Iraq Finance 2014

Usman QureshiHead – International Business Development

Agenda

Who we are

Our Products and services

The history of a cash based society

The introduction of electronic banking

The advent of a cash-less society

Transformation of banks by Dotin

Bank Pasargad

Our Message

Who we are

Providing comprehensive front office,

back office and middleware for the

financial market.

We strive to lead in the development of

the industry’s most advanced Information

technologies. Through our solutions and

services, we translate these advanced

technologies into value for our customers

Dotin’s Lineage

Two times winner of “The bank of the year Iran”

The ICT Subsidiary of Bank Pasargad

Providing ICT Solutions and services to

BankingInsuranceTransportationTelecom

IT Subsidiary of Fanap and Pasargad Bank providing banking solutions and services to

BanksPayment organizations Enterprises

Products

Fully web-based

Centralized/Decentralized

Clientless

Intensive change management

Service Oriented Architecture (SOA)

Integrated Straight Through Processing (STP)

Reduced time to market

High Performance

Dotin’s Core Banking System

Products

Ijarah

Istisna’a

Murabaha

Musharaka

Mudaraba

Tawarruq

Hajj Loan

Qard Hasan

Finance

Other

personal

finance

without

interest

Islamic Banking

Products

Service Oriented Architecture (SOA)

Straight Through Processing (STP)

Supports all the common standards

ISO 8583IFXNDC+

Multilingual

Multi currency

Dotin’s Payment Platform

Products & Services

Dotin’s Payment Platform

Tailored Services on:

Mobile

Internet

POS

ATM

Kiosks

Vending Machines

Smart Cards

Services

Consulting

Outsourcing

Business process

review

Technology

integration

Payment processing

Project financing

The history of a Cash Based Society

Till 2010The preferred mode of payment was cash

The initiative toPromote electronic banking and use of cards

NowPlastic is preferred

The introduction of Electronic Banking

How to make electronic banking attractive?

Bankers initiative

Make the merchants

happy

0% MDR

Real time settlements

Make the card holders

happy

No fee for standard

transactions on

channels

Value added services on

different channels

The regulators consent

The regulators came on

board and defined

regulations to help the

banks in working with

merchants, payment

organizations, telco’s…

The technology providers Role

The local technology

providers had to step up

and provide the necessary

technology to make all this

work.

The introduction of Electronic Banking

Dotin’s Advantage…A comprehensive total banking suite

The advent of a cash-less society

225 million cards by the summer of 2013

The advent of a cash-less society

BrandATM

TerminalsATM Trans.

(Million) ATM Vol.

(Billion USD)Melli Bank, Iran 5,641 1,042 $88.83Saderat Bank, Iran 3,716 672 $53.59Keshavarzi Bank, Iran 2,183 259 $6.06Mellat Bank, Iran 3,117 211 $18.04Tejarat Bank, Iran 2,474 150 $14.47Maskan Bank, Iran 1,155 117 $6.50Pasargad Bank, Iran 631 64 $10.16Eqtesad Novin Bank, Iran 731 50 $3.88Saman Bank, Iran 700 40 $2.59Parsian Bank, Iran 450 17 $1.32Totals 20,798 2,622 $205.44

ATM Transactions in Iran Fiscal Year ended March 2012

A 55% increase in ATM transactions between 2011 and 2012

The advent of a cash-less society – Nilson

Nilson report 5th editions“Largest Payment Card

Issuers and Merchant Card Acquirers

Worldwide”

Transformation of banks by Dotin

Migration of Bank Pasargad

Started in 2008

180 Branches

13 million GL accounts

1.2 billion issued

documents

1.4 million customers

2.4 million deposits

2.1 million issued cards

130,000 generated loans

Other Migration cases

Bank Resalat

Bank Toseh and Taavon

Imam Khomeini relief foundation

A migration setup

Central Switch

Bank Pasargad

574th

435th

266th

2008

2010

2012

Top 1000 World Banks

The growth in its Tier 1 capital saw it occupy the number one spot as the fastest moving Middle Eastern bank in The Banker’s annual Top 1000 World Banks ranking published in July. It climbed from 471st position in the 2011 ranking to 266th this year.

Bank Pasargad

Established in 2005 as Iran's fifth private bank, Bank Pasargad is now the nation's fastest-growing privately owned bank and the sixth largest bank in the country in The Banker's latest Top 1000 World Banks listing, with a Tier 1 capital in March 2010 of $1265m.

Among the larger Iranian banks, most of which suffered declines in capital and assets, Pasargad is an exception, showing continued growth in all main indicators. Its results for the 2009-10 financial year showed a 25% rise in Tier 1 capital, following a 43% increase the previous year, outstripping its competitors.

Bank of the Year 2010

Bank Pasargad

Pasargad Bank stood out

as the best bank in Iran

for achieving impressive

results across the board.

Its net profits for 2011

surged by 62.19% to

IR9836bn ($803m), its

Tier 1 capital by 30.82% to

IR43.41bn and its assets

by 23.76% to

IR221,808bn  .

Bank of the Year 2012

Bank Pasargad

Our Message

We work with you to select the best business model for your business needs.

We believe that every customer is different hence we partner with you to understand and address your unique transformation imperative.

Our Message