BGS Signed Contract with Savings Bank of Mongolia

Vienna/Austria – On the 3rd of October, BGS Smartcard Systems signed a contract worth 2,5 million EUR with the Savings Bank of Mongolia in the presence of the Mongolian Prime Minister Miyeegombyn Enkhbold.

The event took place at the Austrian Chamber of Commerce in Vienna. BGS will be delivering a multi-functional smart card-based payment platform based on the DUET technology. As Leonid Delberg, BGS' Chairman and CEO, stated: “We are delighted to have signed the contract with the Savings Bank of Mongolia which will serve as a role model for banks in the region and other emerging markets. Nowadays, developing economies are benefiting from the fact that they are in a position to leapfrog old technologies in order to choose state-of-the-art solutions that meet their specific business case and market needs. As the DUET system platform has been geared to offer financial institutions, operating in rural and urban cash dominated markets, the means to provide a flexible and profitable financial card based solution, the Savings Bank will offer a whole range of innovative financial products based on our smart card technology platform."

The DUET card system will enable the following financial services:

1. Retail payments via handheld terminals for small merchants, mini markets, and street shops.
2. Salary cards for the bank’s corporate clients
3. Loyalty cards
4. Credit cards (overdraft scheme)
5. Utility payments: Domestic and international phone calls, electricity, gas, water and other utilities will be paid with DUET smart cards.
6. Social card scheme for students and pensioners. DUET cards will be used for the cashless provision of pensions and social security transfers.
7. E-Government system: the DUET card will enable access to various E-Government services, such as: a) Account-based payments of pensions and benefits, wages, salaries, etc. b) Issuance of official certificates, and documents by the local and central government. c) Collection of payments for taxes, fees, etc. to central and local government authorities.

The Savings Bank of Mongolia is the primary provider of financial services to the State and Municipalities as well as pension and social benefit agencies. The Savings Bank provides daily banking services to companies, NGOs` and private customers. In November 2006, the Savings Bank, the last remaining state-run commercial bank in Mongolia, was sold to a consortium of Chinggis Khaan Bank, Bratsky Narodny Bank and Mongol Daatgal Company.The new owners are tapping into lucrative business opportunities in order to boost the bank's competitive edge on the domestic market. One of these new investment projects is the creation of the aforementioned innovative card payment system based on BGS' DUET technology. The system will be launched at the end of 2007 with 100 000 clients cards, 400 POS terminals, 40 ATMs, and 40 self-service terminals. The Savings Bank of Mongolia's active expansion policy seeks for an annual increase rate of 50 000 cards.