Multi-Country Payments Environment Assessment

Large Multinational Bank - African Payments Redesign Multi-country payments environment assessment 654 processes Client Situation 1 • The requirement was to assist in analysing 10 bank payment environments across 9 African countries over 5 months 1 • The objective of the project was to: • Provide the bank with a comprehensive understanding of their current African payments environment (for EFTs, SWIFT and RTGS payment 1 instruments) as requirement input into the automation of the payment processing environment. • Ensure that country regulatory requirements and business-critical customisations were completely understood and incorporated in base designs 4 • Assistance was required in providing a team focused on engaging each country and ensuring the planning, coordination and execution of the analysis in a standard manner 4 Approach Sample Deliverables

Business Rules Name MatrixRole Signature Date Business rule, Accounts, Reports, Channels for EFT processes Operator Signature : Peter January Electronic Banking Team leader 17/08/2015 • Define a structured approach to consistently engage each target country within the required time-frame Management Signature : Frank Chikadza Payments Manager OPC/IBC 17/08/2015 EFT Business rules – on us transactions Suspense accounts Account numbers Rules – Business Processing transactions until 9:00 TPS susp acc -0196000402600 Kwacha Only Cats suspense acc - 0196000236900 Debit - no limit, credit - no limit, ATS has (low values less 5 mil, high value above 5 Standard bank malawi limited suspence acc – 0140031871000 • Pre-assessment checklists provided to country prior to engagement in order to uncover fundamental mil should use RTGS) Central bank free balance suspense acc – 01003002068100 Latency (value date) - same day Pod unposteds suspense acc – 0196000000407 Monday to Friday excl holidays (for clearing) ,sat and sun (branch opens) Internet banking commission suspense acc – 0150300283800 Customers can mix on us and off us transactions in one file for on us and off us Cats services suspense acc – 0150400267600 Bulk, urgent and only contains on us Central bank free balance suspense acc – 01003002068100 variances from standard defined scope Internet suspense acc – 01960002817100 SFI suspense account – 0196000964500 EFT Business rules – off us transactions System suspense acc – 0196000965600 Rules – ACH Consolidated payment suspense acc – 0107000261507 • Clearing windows – 8 to 12:00, 12:00 to 16:00 • Kwacha Only Internal units suspense account – Multiple • Debit - no limit, credit - no limit, ATS has (low values less 5 mil, high value VAF Banking suspense acc - 0196000276790 • Motor complehensive insurance - 0196000342400 In-country work-session agendas and detailed work-breakdown published to ensure relevant in-country above 5 mil should use RTGS) • Latency (value date) - same day Funeral premium income suspense – 0196000307800 • Monday to Friday excl holidays (for clearing) HOC premium income suspence account – 0196000307500 Rules – Business • Clearing windows – 8 to 12:00, 12:00 to 16:00 Branch instruction suspense accounts Branch representation • Kwacha Only 0150400241402 Blanyre • Debit - no limit, credit - no limit, ATS has (low values less 5 mil, high value 0150400241404 Limbe above 5 mil should use RTGS) 0150400241405 Ginnery corner 0150400241406 Zomba • Latency (value date) - same day 0150400241408 Mangochi • Monday to Friday excl holidays (for clearing) ,sat and sun (branch opens) 0150400241409 Balaka 0150400241410 Luchenza • Standardised process modelling methodology applied for each country, ensuring as-is processes and critical Channels: 0150400241411 Ntcheu On-us 0150400241413 Mwanza Branch – Branch Power/RTGS (Single transactions), CIMS (bulk) 0150400241414 Dedza Internet banking - (single transactions) 0150400241415 Capital city branch Nbol - (single & batch transactions) 0150400241416 Lilongwe RTGS – meant for high value (5 mil and over) single transactions but can be used for 0150400241417 Salima information requirements were documented 0150400241418 Kasungu any value Email to the EFTS Malawi – single & bulk transactions 0150400241419 Dwangwa SFI Authent (single & bulk transactions) 0150400241421 Mzuzu ATG – multi national companies(single & bulk transactions) 0150400241422 Mzimba 0150400241424 Chichiri 0150400241425 Corporate banking center • Key information transposed into specifically defined matrices in order to effectively present critical business Reports 0150400241426 Kanengo 0150400241427 Kalunga On us and off us reports 0150400241428 Bwaila • Manual report - EB inward and outward Processing – send monthly 0150400241429 Nchalo requirements, such as: to CEO and client access team. Contains values and volumes 0150400241431 City mall

Name Role Signature Date Operator Signature: Lengolo Tsotetsi POD Operator 15/09/2015 Outward Off-Us Cheque Deposit at Point of RepreCurrentsentation State Process Flows Current State Technical Landscape • Regulatory and core-country operational rules Management Signature: Holomo Molejane Manager OPC 15/09/2015 Off-Us Cheque Deposit at Point of Representation (POR) - Presentment

Phase

One/multiple debit and one credit

Note: if the validations fail 1 deposit slip cheque is returned to serves as proof of customer h

c deposit n

a (Teller)Performs r Receive cheque and

B due diligence and (Team leader) Send cheque to OPC Start 2 deposit slips from stamp cheque/s and Register cheque/s, POD customer • Payment flow accounting entries and narrative requirements deposit slips

If mistake is with the bank the branch will make the necessary corrections and send the cheque Branches outside Maseru have GPOD Cancel failed back to OPC 2 sessions, 9:00 to 12:30, 12:30 to 16:30 and POD, OPC will only create off us Note: Cheques can also be cheque/s in the and gateway file for them deposit slip Cheques are processed as and when received from the cash center received until 15:45 – to allow the ) t

i deadline of 16:30 s

o Send deposit back to

p Branch/Cash center End e d

f o

NO f Adjust credit Notify client o amount to match o r cheque/s value and Notify the client via p

• , create advice of the email Investigate and

Sourcing of supporting information and reporting requirements r

e amendment of remove invalid t cheques n (Supervisor)Confirms registered deposit. deposits e

c Cheque from branch: confirm deposits

g Receive cheques has been scrutinized Validation n i from Branch Cash center: Perform duty of care on passed NO No s

s deposits and scrutinize deposit slip for Initiate the extract

e If errors: scan again

c above M5000. GPOD splits and make sure, reject Import QDL file to match journal o Small deposits the system will Create tallies slip -

r Create .QDL file – PCHI (payments Download the .QXL results file script in according to the and send to organizer summary of Match?

p auto balance, unbalanced Amount can YES banks then to the originator YES outward journal clearing house file from PCHI the gpod - to match

n cheques per bank entries/proof set will reflect in interface) QXL file to the QDL

o vary

i the balancing function

t file (Processor) Scan a

r Fix MICR line information, deposit slip with e perform UV verification, Manually Balance Yes

p Prepare cheque and cheque into GPOD. IQA verification, capture the entries for the O

( deposit slip for For over size Balancing? amount for cheque and over size deposit

D scanning deposit slip scan capture credit (acc no, slip Send email to SFI • O deposit slip and

Presentation of in-country findings, issues and risks P amount) Create a gateway department to cheque separately

C file process file - in a P Remove staples, write credit acc num/s shared folder O at the back of cheque if not already Ranger scanner for Search for deposit slip using written by branch or cash center, deposit small deposit slips. total amount, reference and slip on front followed by cheque/s, over Generic scanner branch code. If found insert sized slips: separate deposit slip and (plustek) for over size the deposit slip into the cheque deposit slip balancing function

t (SFI department) n

e load file on Bank

m Master t r a p e d

I F S

Create accounting GPOD BankMaster End entries PCHI

s Invalid accounts: DR Heldover suspense

m CR Pod Unposteds per (0100100001210) Client gets value e

t branch Sybrin validates file CR customer – full value s in three days: mon Sybrin will not allow 0196000000410 – tower y Sybrin status: Valid, Charge present get value S invalid files upload branch invalid, partial valid DR Customer on wed CR commission country cheques If the account can be account per branch fixed – recon will create 0150400218610 - Tower voucher and send to No charge for Maseru cheque OPC POD for processing GPOD will create a charge for cheque from outside district Key Benefits • Comprehensive understanding of the varying payment landscapes of 10 Banking organisations, spanning 9 different African countries • In-country analysis of the current state provides a clear indication of country configuration requirements and customisations, which can then be proactively managed through a governed design process • Incorporation of country-specific business rules into early design phases limits the amount of critical defects occurring during payment processor implementation • Identification of differing payment flows and accounting, across multiple countries and core banking systems, helping facilitates the standardised Future State designs • Early identification of “unknown” in-country applications & systems • Known and guaranteed outcomes, timelines and costing - All analysis and feedback provided with an average turnaround time of 5 weeks per country, using a Fixed Fee Fixed delivery approach