2. Alternative Distribution Channels

3. Raiffeisen Banka dd BiH,Market Banka at that time, issued its first cards in 1999 and by now it has expanded its range of products to more than 20 different products • Raiffeisen Banka is the first and only bank in BH which has its own processing centre, i.e. in-house data processing • The original software was changed in 2006 as the needs for technical improvements were recognized Card business

4. Raiffeisen bank offers debit, credit and charge cards which enable access to clients’ accounts 24 hours a day anywhere in the world, offer support when the client needs additional funds, and make possible simpler and more precise monitoring of spending. • Cards have the following advantages: • It is not necessary to carry cash; • It is not necessary to convert currencies abroad; • Payment is simpler and safer; • Monthly statement received at home address makes possible survey and control of transactions, and consequently, a better insight into finance and spending! • By a good quality offer of internationally accepted payment cards of the best known card companies in the world: MasterCard, Visa and Diners, American Express, Discovery, JCB , we make every day shopping of our clients more pleasent and safer. • Cards are accepted in banks, ATMs and many POS terminals installed at points of sale. Card Business

5. Advantages for the client • Simple use • Control of costs • Safety • Payment of goods and services • Possibility of using the allowed overdraft (if card is used also for receiving wages) • Using of other services Debit cards

6. Advantages for a client • Simple use • Simple procedure when extending a loan • Constantly available credit for bigger purchases • Increased payment ability • Use for paying goods and services Credit/Charge cards

7. Advantages for a Client • Simple use • Use for paying goods and services in the country and abroad • Deferred payments • Simplicity in settling obligations (all costs incurred by using all cards are settled only once - upon the Bank statement) • Increased payment ability Business cards

8. Simplicity of use without making queues at cash offices • Discretion in payments • Decrease of costs and risks of handling cash and depositing receipts • Safety and reliability of money transactions • Prevention of frauds of merchants POS Acceptance of Cards - Merchants

9. Increase of safety and reliability of POS terminals and authorization (old terminals which were not compliant with PCI DSS standards are replaced) • Implementation of PCI DSS Standards on POS Terminals • Training of merchants for working according to the PCI DSS standards • Implementation of PA DSS Standards on POS Terminals • Training of merchants for work in accordance with PA DSS standards POS Acceptance of Cards - RBBH

10. Increase of safety and reliability of ATM terminals and authorization • Increase of availability of ATM terminals • Motivation for using ATM Terminals • Implementation of PCI DSS Standards on ATM Terminals • Prevention of ATM frauds ATM – Acceptance of Cards

11. Raiffeisen Direct Net Internet banking service for legal entities has been put in production in 2001 Internet banking service for physical entities has been in production since January 2009 Since 2009, RBBH has had in Its offer Internet banking with SMS password authorization Raiffeisen Direct Net via SMS RBBHnet Electronic Distribution Channels

12. Advantages for a Client • Access to accounts 24x7x365. • Simple, fast and safe payment channel. • Saving money and time. • Direct channel of communication with the bank. Electronic Distribution Channels

13. Advantages for a Bank • Reducing the burden on traditional distribution channels. • Saving the costs of processing orders. • Strenghtening the Client– Bank relation. • Increasing the number of loyal clients. • Good quality channel of support to sale. Electronic Distribution Channels

14. Challenges which we Face • Meeting security standards • Acceptance of the electronically processed order in state institutions • Introduction of electronic operations at the state level with purpose of connecting the bank system of electronic payments with state administration and public services Electronic Distribution Channels

15. Plan of Development of Electronic Distribution Channels • Improvement of the existing services • Implementation of Mobile Banking Service • Ebpp – electronic bill presentment and payment Electronic Distribution Channels

16. THANK YOU FOR YOUR ATTENTION!