UNION BANK OF NIGERIA
PREPAID DEBIT CARD PROGRAM
Union Bank of Nigeria Plc 1
The purpose of this document is to present the Prepaid Debit Card Initiative (“Initiative”) of
the Union Bank of Nigeria (UBN)
The high level business and marketing overview
The core strategies and the implementation approaches
This Initiative is:
On the issuance of 10 million Prepaid Debit Cards, over 3 years
Part of the on-going expansion of Union Bank’s electronic payment system needs.
As part of effort to thrust UBN into the forefront of modern-day electronic banking,
UBN is also preparing the deployment of hundreds of ATMs and thousands of POS devices for its
soon to be Nigeria-based omnipresent EFT transaction acquiring network,
UBN recently signed an agreement to deploy its flat MoneyLine
(Cashmaster) card based business at 5000 NIPOST locations in Nigeria.
Credit card issuance is slated for 2008.
Union Bank of Nigeria Plc 2
UBN is unarguably the largest Banking Group in Nigeria as published by December 2006
edition of Financial Times of London.
UBN is also the sixth largest bank in Africa.
UBN has business relationship with 48 eight reputable international correspondent banks,
Seeking to position as a Prepaid Debit Card solution provider to its existing customer base
of over 3.7 million account holders as well as to the vast number of new Nigerian customers
in the region and overseas.
UBN has 398 Branches and 100 cash points and agencies dotted over Nigeria. The
uniqueness of it’s network is that it cuts across all demography and geography of Nigeria.
UBN also has 13 subsidiaries most of which are industry leaders in various sectors of the
Nigeria economy and also operating as legal entities outside the Nigeria.
Union Bank of Nigeria Plc 3
UBN BACKGROUND - HISTORY
Union Bank was incorporated in Nigeria in 1917 as British Colonial
Bank, and subsidiary of its parent Barclays Bank in United
Bank changed it’s name to Barclays Bank in 1971 then was
changed to Union Bank of Nigeria PLC. when the Federal
Government of Nigeria acquired 60 % of shareholding in the Bank
Remained a government until the Federal Government divested it’s
equity holdings to Nigerian investors through the Stock Exchange.
As at today Union Bank is owned by over 400,000 shareholders
and it is the only Bank where no single individual controls more
than 5% of it’s shares.
Union Bank of Nigeria Plc 4
CURRENT DEBIT CARD PROGRAMS
This is a local cheque card issued to UBN’s checking account holders
for ATM withdrawals and POS purchases.
EasyCash can access Nigeria’s 2500 ATMs, including UBN’s 205
InterSwitch is the transaction processor for Easy Pay.
VPay – The Union ValuCard
A Visa Electron card issued by Union Bank through ValuCard Nigeria
Access to any of the other 25 banks in the consortium for purpose of
MoneyLine CashMaster Prepaid Debit Card
A hybrid system of InterSwtch and Etransact with loading cheque at
Union Bank Branches and over 2000 NIPOST locations nation wide
Union Bank of Nigeria Plc 5
LIMITATIONS OF CURRENT DEBIT CARDS
Both the EasyCash and the Moneyline cards cannot be used on
ATMs and POS devices outside of Nigeria
Both of these “Closed Loop” cards are not accepted by the universal
Visa and MasterCard networks.
Union Bank of Nigeria Plc 6
EMERGING UBN CARD PROGRAM NEEDS
UBN’s Existing Bank Account Holders
Many existing UBN account holders need a more universally accepted branded card
product for payroll and payout, bill payments, online purchases and travel and local
Money Transfer, etc.
Nigeria’s Huge Un-banked Population
As of today, a very large portion, estimated at 85%, of Nigeria’s 150 million people
have no banking relationships.
These people do not necessarily need checking accounts and credit card accounts,
and the banks would also not be able to issue the accounts to them.
Meeting the Needs of Overseas Nigerians
Nigeria has a very large number of overseas expatriates and OFWs (Overseas Foreign
Workers) located in Europe, U.S. and other parts of the world.
Union Bank of Nigeria Plc 7
COMMON NEEDS OF ALL GROUPS
Keeping money safely
Having funds available more conveniently
To receive on time payroll and pay-out for services and goods sold without
handling cash and check cashing hassles
To pay bills more conveniently
To do telephone purchase and purchase online
Meeting travel needs - such as currency conversion only when needs arise,
purchasing tickets and paying hotel bills
Overseas Nigerians need low cost, efficient and trustworthy ways of transfer
money home. to friends and relatives.
Union Bank of Nigeria Plc 8
SOLUTION FOR MANY NIGERIANS
BRANDED PREPAID DEBIT CARDS
Most Everyone Qualifies
Very significant feature of the Prepaid Debit Card
Un-banked and banked Nigerians and Nigerian company employees can qualify
for the International Debit Card with valid government issued identifications.
Versatile and Universal Worldwide Applications
Prepaid Debit Card is accepted wherever Visa and MasterCard are accepted
Card-to-Card Transferring of Funds
Using the phones or the Internet to transfer funds can be done instantly at low
cost, at 24-hours per day without making trips at sending and receiving ends.
For this application, a primary card will be a branded Prepaid Debit Card (such
as a MasterCard Prepaid Debit Card) pairing with another branded Prepaid
Debit Card or a companion PIN-based card (such as a Maestro card), which will
be used in Nigeria by the remittance recipients within the regions.
Union Bank of Nigeria Plc 9
UBN PREPAID DEBIT CARD APPROACH
1. UBN shall apply with MasterCard for both the Issuing and Acquiring Memberships. UBN, as
a large bank, desires to attain Principal Memberships to enjoy the deposits.
2. Upon approval, UBN shall begin the process of issuing Prepaid MasterCard (Electronic)
Debit Cards and Maestro cards – initially, possibly, as an Affiliated MasterCard Member.
3. In Nigeria, Prepaid MasterCard Debit Card and Maestro cards will be deployed.
4. International Prepaid MasterCard Debit Cards with extended area of application, will be
issued to oversea Nigerians
5. Cards will have $USD, Naira, Euro and Sterling Pound denominations depending on
cardholders’ resident domiciles.
6. Card programs will adapt to MasterCard suggested defaults (example 1: Default max load
per day may be $2,500. Example 2: suggested ATM withdrawal may be of $500 per day).
7. The cards will have both magnetic stripes and Chip-and-PIN compliance.
8. Planning for an expansion of the Acquiring network of ATMs and POS terminals shall
closely follow card issuance.
Union Bank of Nigeria Plc 10
INITIATIVE OBJECTIVE –1
To Attain Overwhelming Consumer Participation
UBN will market and replace as many existing cards as possible.
Using the UBN account database of 3.5 million
The number of cardholders is expected to exceed 250,000 within the first 6
months starting with card availability. This projection is expected to double every
other month as the market acceptance and adoption deepens.
To acquire many new customers
Strategy is to launch marketing campaigns through various media
Make the Prepaid Debit Card available at little or no cost.
To address the constant demands from overseas Nigerians.
With a projected prospect base of more than 80 million worldwide, UBN
projects a cardholder base of more than 10 million over a 3-year period.
Simple for consumers to Participate – Use the Internet or just the phone for
card account transactions.
UBN will market International Prepaid Debit Cards rigorously at the U.K.
branch and through numerous correspondent banks.
Union Bank of Nigeria Plc 11
INITIATIVE OBJECTIVE –2
To Achieve Extensive Card Loading Capability
Ubiquitous card loading capability promotes usage of the cards.
Convenient and extensive retail and bank branch card re-loading capabilities will
be achieved for the Nigerian domestic and International Debit Cards
Employers will be given the tools to conveniently load the payroll cards.
Many UBN correspondent bank branches will also be loading stations.
UBN will work with retail Prepaid Debit Card loading operations, such as the
Western Union, the Alphyra network throughout Europe and Green Dot in the U.S.
Union Bank of Nigeria Plc 12
INITIATIVE OBJECTIVE – 3
To Create An Efficient Remitting Nigeria Infrastructure
To provide lower cost, fast and more convenient ways of transferring money into
An International Debit Card can be used toward an efficient person-to-person
money transfer method that can be conducted 24 hours per day, rather than a
The Initiative will enable Card-to-Card-Transfer of sending money into Nigeria for a
fee of around $6, which includes the sender’s card loading fee and a local ATM
withdrawal fee incurred by the recipient.
To achieve this objective, the Initiative will allow withdrawals at UBN ATMs at little
or no costs
Union Bank of Nigeria Plc 13
INITIATIVE OBJECTIVE – 4
To Achieve High Volume Acquiring Network Card Usages
UBN will largely deploy and revamp its e-Banking network with new transaction
capabilities along with new technical support, new power and new telecom
infrastructures and new eCommerce capabilities.
New ATMs, kiosks and POS capabilities will provide new services for new UBN
Traditional banking transactions
Bill payments (utility and retail)
Funds transfer between bank accounts
Purchase of various types of tickets
Purchasing and topping up of prepaid products (calling cards, cellular phone time, etc.)
Purchase and registration of Prepaid Debit Cards
Purchase of foreign currencies, such as $USD.
Union Bank of Nigeria Plc 14
INITIATIVE BENEFITS & INCENTIVES
Benefits to Nigeria & the People
Improving the Quality of Life for the Consumer Account Holders
Funds safety and security of the individuals and their loved ones
Convenience and savings on un-necessary, time wasting drudgeries
Enhancing Remittances Into Nigeria
To a large extent, Nigeria’s economy rely on remittances into Nigeria from expatriates
Therefore, easier, faster, more convenient and lower cost method of debit card “Card -to-Card”
Money Transfer helps the Nigerian economy.
Stimulating Nigerian Economy
Funds are readily available through ATM’s and POS’ for purchases of products and services.
When Prepaid Debit Cards become more prevalent, there will be followed by more Mail Orders,
Telephone Orders and online purchases taking place.
Facilitating External Trades
More international trading will take place because there are no boundary issues and currency
Improving Gross National Products
Savings on un-necessary expenses, efforts and resources (handling of checks, papers, cash, etc.)
Union Bank of Nigeria Plc 15
Surge of new customers in Nigeria and overseas that contribute to
significant increase of bank deposits from the balances on the
Surge of new employee customers and resulting deposits from
promoting the cards as payroll cards
Increase of market share in both retail and commercial banking
New revenues from new card initiated services
Progressive images and publicities for UBN to attract new
businesses in other aspects of banking and investments.
Union Bank of Nigeria Plc 16
IMPLEMENTATION STRATEGY - 1
To synergistically leverage on the payment systems expertise and technologies of its
Credit Card Solutions of U.K. – Program coordination, card production and card marketing
Advanced EFT Corp. – Program Manager and card marketing
ECS (ElectraCard Services – a division of Opus Soft of India) – Card issuing and transaction
processor with 80 systems in 20 countries
Bocal – Bank and processor interface and logistics coordinator
All alliance companies have been in the Electronic payment and Prepaid Debit Card business for
many years and are doing businesses together in several different forms. The alliance companies
bring the following contributions and advantages to the Initiative.
Knowledge & Expertise - The alliance Consortium has in-depth knowledge and years of
aggregated expertise in Electronic Payment Systems
Coverage - Complementary expertise covering all areas of marketing, operations,
processing, payment system security and support of credit card and debit card systems.
Rapid Implementations - In:Branded and local card issuances; Transaction authorization,
processing, switching, security, reporting and settlement; Transaction networking and
certification to universal banking networks; Large-scale transaction acquiring via ATMs and
POS devices; Customer support infrastructure
Union Bank of Nigeria Plc 17
IMPLEMENTATION STRATEGY - 2
To capitalize on the infrastructures already built by alliances (ECS/Opus, etc.) and
other worldwide financial operations (such as Green Dot, Alphyra and Western
Minimizing upfront investments
Drastically increasing assurance to success.
Union Bank of Nigeria Plc 18
CARD ISSUEING PHASE
B AN K B AN K S
M ASTER C ARD
EFT & PR OVID ER
SW ITCH ING
R EC ON C ILIATION
& SETTLEM EN T
C U STOM ER
SUPPOR T &
D EB IT C AED
C ALL C EN TER
M GM T & TR ANS
PROC ESSIN G
C ONSU LTIN G SU PPORT FOR:
M EMB ER SH IP AN D CAR D
PROGR AM APPLIC ATION S
C AR D FILES
& R EPOR TS C U STOM ER S
Union Bank of Nigeria Plc 19
UNION BANK - FUTURE TOTAL ENVIRONMENT
WITH TERMINAL DRIVING & ECOMMERCE
U TILITY &
M ERC H AN T TELECOM PREPAID PR OD VISA &
U N ION BAN K E-TRAN SAC T IN TER SW ITCH
W EB SITES & C ELLULAR PROVID ER S M ASTER C ARD
PROVID ER S
EFT & PR OVID ER
& PAYM EN T
SW ITCH IN G
GATEW AY R EC ON CILIATION
& SETTLEM EN T
C U STOMER
TURNKEY POS & D EVICES D EB IT C AED
SUPPOR T &
ATM /K IOSK C ALL C EN TER
SERVICES M GM T
M GM T & APPLIC ATION M GM T & TR AN S
D EVELOPM EN T PROC ESSIN G
ATM S / KIOSK S
C AR D FILES
& R EPOR TS C U STOMER S
D EVIC ES
Union Bank of Nigeria Plc 20
INITIATIVE COMPONENTS - 1
Debit Card Management The Debit Card Management manages and supports
end-to-end requirements of EMV (Chip and PIN) prepaid debit cards. Internal
Payment and loading processing
Settlement & Reconciliation Supports reconciliation and settlement with banks,
networks, services providers and Debit Card Management System and charge back
EFT & Transaction Switching Processing and routing transactions to and from the
system with other networks, banks, services providers in accordance to rules,
issuing institutions, transaction types.
Union Bank of Nigeria Plc 21
INITIATIVE COMPONENTS - 2
Customer Services and Support
Customer account management support and display and call center outsourcing support. The
language will be English. An issue will be the location of the IVR (interactive Voice Response)
Standard Visa and MasterCard Network Interfaces
The standard Visa MasterCard interfaces of ECS will be deployed at the Union Bank environment.
Custom Interface to Union Bank
Custom Interface to other banks in the region
Western Union Retail Top-Up Interface
Global Retail Loading capability
This support includes management and coordination of activities with card manufactures and
printers but also the storage of debit cards.
Union Bank of Nigeria Plc 22