Len Pienaar, CEO: Mobile and Transact Solutions for First National Bank (FNB) – a division of FirstRand Bank Limited, South Africa. See http://thefinanser.co.uk/fsclub/2009/06/there-are-loads-of-discussions-about-mobile-financial-services-right-now-not-least-at-the-financial-services-club-for-examp.html for more information.

1. FNB Mobile & Transact Solutions
Len Pienaar
CEO: FNB Mobile & Transact Solutions

2. FNB Cellphone Banking
Also available Also available
in Namibia & Also available (Zambia
Botswana, Leso in Namibia and May09)
tho & Botswana
Swaziland (Zambia
(Zambia May09)
May09)
First National Bank – a division of FirstRand Bank Limited 2
An Authorised Financial Services Provider.

3. Performance
How is Cellphone Banking doing?
First National Bank – a division of FirstRand Bank Limited 3
An Authorised Financial Services Provider.

4. First National Bank – a division of FirstRand Bank Limited 4
An Authorised Financial Services Provider.

5. Fast Facts
1. In December 2008 FNB sent 67 million SMSs
First National Bank – a division of FirstRand Bank Limited 5
An Authorised Financial Services Provider.

6. Fast Facts
1. In December 2008 FNB sent 67 million SMSs
2. In February 2009 45 000 new customers
started using our full Cellphone Banking
service
First National Bank – a division of FirstRand Bank Limited 6
An Authorised Financial Services Provider.

7. Fast Facts
1. In December 2008 FNB sent 67 million SMSs
2. In February 2009 45 000 new customers
started using our full Cellphone Banking
service
3. In February 2009 70 000 new customers
started using our new inContact interactive
Cellphone Banking service
First National Bank – a division of FirstRand Bank Limited 7
An Authorised Financial Services Provider.

8. Fast Facts
1. In December 2008 FNB sent 67 million SMSs
2. In February 2009 45 000 new customers
started using our full Cellphone Banking
service
3. In February 2009 70 000 new customers
started using our new inContact interactive
Cellphone Banking service
4. At the end of February 2009 FNB had 1.29
million customers registered for our
various interactive Cellphone Banking
services
First National Bank – a division of FirstRand Bank Limited 8
An Authorised Financial Services Provider.

9. Fast Facts
1. In December 2008 FNB sent 67 million SMSs
2. In February 2009 45 000 new customers
started using our full Cellphone Banking
service
3. In February 2009 70 000 new customers
started using our new inContact interactive
Cellphone Banking service
4. At the end of February 2009 FNB had 1.29
million customers registered for our
various interactive Cellphone Banking
services
5. In December 2008 FNB processed 4.5
million transactions through our various
interactive Cellphone Banking services
First National Bank – a division of FirstRand Bank Limited 9
An Authorised Financial Services Provider.

10. Fast Facts
1. In December 2008 FNB sent 67 million SMSs
2. In February 2009 45 000 new customers
started using our full Cellphone Banking
service
3. In February 2009 70 000 new customers
started using our new inContact interactive
Cellphone Banking service
4. At the end of February 2009 FNB had 1.29
million customers registered for our
various interactive Cellphone Banking
services
5. In December 2008 FNB processed 4.5
million transactions through our various
interactive Cellphone Banking services
6. In December 2008 FNB processed
transactions worth R600 million through our
various interactive Cellphone Banking
services
First National Bank – a division of FirstRand Bank Limited 10
An Authorised Financial Services Provider.

11. Registered base in SA
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
First National Bank – a division of FirstRand Bank Limited 11
An Authorised Financial Services Provider.

12. Cellphone Banking Growth in SA
700. 5,000,000
Millions
4,500,000
600.
4,000,000
500. 3,500,000
3,000,000
400.
2,500,000
300.
2,000,000
200. 1,500,000
1,000,000
100.
500,000
0. -
Total Value of Transactions (Val)
Total Number of Transactions (Vol)
First National Bank – a division of FirstRand Bank Limited 12
An Authorised Financial Services Provider.

13. First National Bank – a division of FirstRand Bank Limited 5/20/2009 13
An Authorised Financial Services Provider.

14. Cellphone Banking Technology
Transaction Volumes per Bearer
100%
90%
80%
70%
60%
50%
40%
30%
Expect
20% Popularity to
grow
10%
0%
Jun '05
Sep '05
Jun '06
Sep '06
June '07
Sept '07
Jun '08
Sept '08
Mar '05
Dec '05
Mar '06
Dec '06
Mar '07
Dec '07
Mar '08
Dec '08
MO SMS Volume WAP Volume USSD Volume
First National Bank – a division of FirstRand Bank Limited 14
An Authorised Financial Services Provider.

15. It is not only about Prepaid
Over R500m
Prepaid 13%
per month
and growing
Based on
value
First National Bank – a division of FirstRand Bank Limited 15
An Authorised Financial Services Provider.

16. Prepaid Services are Key
Payments Transfers Prepaid Balance Enquiry Other
First National Bank – a division of FirstRand Bank Limited 16
An Authorised Financial Services Provider.

17. FNB “Prepaid” sales growth
First National Bank – a division of FirstRand Bank Limited
An Authorised Financial Services Provider.

18. R M il l io n s
Ap
r' 0 5
Ju n
e '0
5
Au
g' 0
5
Oc
An Authorised Financial Services Provider.
t' 0 5
De
c' 0
5
F eb
'0 5
Ap
r '0
6
First National Bank – a division of FirstRand Bank Limited
Ju n
Internet
'0 6
Au
g' 0
6
Oc
t '0
6
De
c '0
6
Mobile Banking
F eb
'0 7
Ap
r' 0 7
Ju n
Total ATM
'0 7
Au
g' 0
7
Oc
t' 0 7
De
c '0
7
F eb
'0 8
Ap
r' 0 8
Ju n
'0 8
Au
g' 0
8
Oc
t' 0 8
De
c' 0
8
F eb
'0 9
“Prepaid” Sales on Cellphone Banking
18

19. Prepaid campaign 2008/2009
First National Bank – a division of FirstRand Bank Limited 19
An Authorised Financial Services Provider.

20. Data Bundles
Internet Mobile Banking
R Millions
Jun'07 Sept '07 Dec '07 Mar'08 Jun'08 Sep'08 Dec'08 Mar'09
First National Bank – a division of FirstRand Bank Limited 20
An Authorised Financial Services Provider.

21. Electricity
Internet ATM Mobile Banking
R Millions
First National Bank – a division of FirstRand Bank Limited 21
An Authorised Financial Services Provider.

22. Cell Pay Point
Online merchants
First National Bank – a division of FirstRand Bank Limited 22
An Authorised Financial Services Provider.

23. FNB Cell Pay Point
8
'0 8
8
t '0 8
'0 9
8
'0 8
'0 8
'0 9
'08
'0 8
8
8
r '0 8
r '0 9
g '0
r '0
v '0
c '0
y '0
J ul
J an
F eb
J un
F eb
S ep
Oc
Ap
J an
Ma
Ma
Au
No
De
Ma
First National Bank – a division of FirstRand Bank Limited 23
An Authorised Financial Services Provider.

24. Cell Pay Point Account Split
Credit Card, 6%
Debit Card, 94%
First National Bank – a division of FirstRand Bank Limited 24
An Authorised Financial Services Provider.

25. What else can you sell on Cellphone
Banking
 Cross selling financial
products:
 We have successfully opened
savings accounts
 We are (un) successfully
selling transactional products
 We are successfully offering
micro loans
 We are selling (opening)
and funding:
 TAB “prepaid” accounts
 MXIT “prepaid” accounts
(mobile IM portal)
First National Bank – a division of FirstRand Bank Limited 25
An Authorised Financial Services Provider.

26. First National Bank – a division of FirstRand Bank Limited
An Authorised Financial Services Provider.
MATS Expansion 26

27. FNB MATS African Footprint
Botswana:
•InContact Zambia:
•CBI •InContact
•Prepaid airtime •CBI
•CBB
•Prepaid airtime
Namibia:
•InContact
•CBI Swaziland:
•Prepaid airtime •InContact
Lesotho:
•InContact
Cross border
airtime:
• Namibia
• Lesotho (May)
First National Bank – a division of FirstRand Bank Limited 27
An Authorised Financial Services Provider.

28. Consolidated CBI base Non SA
First National Bank – a division of FirstRand Bank Limited 28
An Authorised Financial Services Provider.

29. CBI Non SA Volumes and Values
First National Bank – a division of FirstRand Bank Limited 29
An Authorised Financial Services Provider.

30. Benefits
Cellphone Banking, from a customer
perspective?
First National Bank – a division of FirstRand Bank Limited 30
An Authorised Financial Services Provider.

31. Cellphone Banking makes banking cheaper
First National Bank – a division of FirstRand Bank Limited 31
An Authorised Financial Services Provider.

32. What do our Customer think?
 Voice of Customer and Buzz
Barometer 2008 Quarter 4
 Research purpose to develop the
Cellphone Banking model in line
with changes in the industry and
customer acceptance
 To measure the Cellphone
Banking bearers - USSD, WAP
(not including MO SMS) usage
characteristics
 This is internal
research, commissioned and paid
for by FNB
First National Bank – a division of FirstRand Bank Limited 32
An Authorised Financial Services Provider.

33. Cellphone Banking split of active base
Active Base - Feb 2009
Consumer
42%
Smart
58%
First National Bank – a division of FirstRand Bank Limited 33
An Authorised Financial Services Provider.

34. There is high usage of non-traditional transactional
channels
… FNB has highest penetration of Cellphone and Online Banking
Cellphone Banking and Online Awareness and Usage
50
% 47
46
45
40
35
30
25
23.0
20
16.0
15
10 Awareness
Usage
5
Cellphone Online
0
n=1504 n=758 n=1804 n=1306
This includes frequent and very frequent use
(from once a week to daily)
Source: Consumer Market Tracker 2008; DWS

35. New Cellphone Banking registrations
First National Bank – a division of FirstRand Bank Limited 35
An Authorised Financial Services Provider.

36. Service Problem
Categories 2008 Q4
First National Bank – a division of FirstRand Bank Limited 36
An Authorised Financial Services Provider. 20 May 2009 36

37. Key Drivers
Analysis: Q1 VS Q 2
First National Bank – a division of FirstRand Bank Limited 37
An Authorised Financial Services Provider. 20 May 2009 37

38. Key Drivers cont…
“ What-to-Fix” Matrix – 2008 Q4
Primary Focus Strength Focus
SATISFACTION
Ease of use - Menu
based (91.1)
Affordability (88.1)
Trust (89.1)
Time (86.6)
Understanding (80)
IMPORTANCE
IMPORTANCE
Needs catered for
(85.2)
Availability (87.2)
SATISFACTION
Secondary Focus Maintenance Focus
First National Bank – a division of FirstRand Bank Limited 38
An Authorised Financial Services Provider.

39. Thank You