Reducing Risk, Improving Quality

& Facilitating Credit

RHLF Annual Workshop, September 2018

What is iBuild?

Why do we need iBuild?

Who benefits?

How can iBuild be used in

South Africa?

Let’s Check it Out

What is ?The iBUILD mobile application for

customers is a citizen-to-citizen (C2C) housing market disruption tool that

empowers people to build, reversing their housing plight through small-

scale construction based on individual need

Design Dream Project Direct order from suppliers

Seek Financing

Track

Work

Progress

Pay Via

Mobile

App

solution overview

Proj. Management & Reporting

Mobile wallet paymentsGet a Loan

Contractor Marketplace

Meet Lindiwe!

How do I manage the

work?

How much and what

type of materials?

Who can help me

build?

What can I afford to

build?

Can I get a loan to

help finance?

How do I make

payments?

We leverage technology to solve problems in housing

We create an ecosystem on a trusted digital platform for all these

stakeholders to interact throughout the housing construction process.

HomeownerConstruction Materials Construction Labor

Workers

Architect

Design Services Financing

Housing Delivery Pipeline

We create an ecosystem on a trusted digital platform that allows all stakeholders to interact

throughout the housing construction process.

Our Goal: To provide digital tools and enable payments in a shared ecosystem

Lender

Supplier Contractor

iBUILD in Action: Customer Module

Search & Apply

for Financing

Review Quotes & Select

a Contractor

Manage Budget &

Construction

Pay Suppliers

& Contractors

Android

Feature

No usage

Ownership of mobile phones in South Africa

Feature Phone

Ownership

29%

Smart Phone

Ownership

69%

2017

2% do not have a mobile device

Sales climbed 28%,

3 million units soldSales dipped to

13.7% in 2017

What If I Don’t Have a Smart Phone?

Search & Apply

for Financing

Review Quotes & Select

a Contractor

Manage Budget &

Construction

Pay Suppliers

& Contractors

iBUILD® is designed to allow users to access the platform via SMS short code messages or USSD

menus.

1) Apply for

loan

2) Review

lenders

1) Review

Bids

2) Select

Contractor

1) Check

Balance

2) Transfer

funds

1) Pay

Material

Supplier

2) Pay

Contractor

South Africa is being changed by technology

We create an ecosystem on a trusted digital platform for all these

stakeholders to interact throughout the housing construction process.

Largest communications provider owns no infrastructure.

Skype

Largest media company creates no content.

Facebook

Largest hospitality company owns no real-estate.

Airbnb

Technology creates the opportunity for Citizen to Citizen (C2C) applications to solve real world problems.

UberLargest taxi service owns no taxi vehicles.

Leading software & services brand monetizes people, not software.

Google

South Africans response to Airbnb with over30,000 listingsacross Africa.

Afristay

SweepSouth connects you with a cleaner in minutesthrough their easy booking system.

SweepSouth

Thundafund is the leading crowdfunding platform for innovation & the creative economy.

Thundafund

wiGroup has developed leading Loyalty & Rewards and mCommerce products.

wiGroup

Courier and delivery service

WumDrop

& South Africa is changing technology

Global Technology Companies South African Born Technology Companies

What is iBuild?

Why do we need iBuild?

Who are the main actors?

How can iBuild be used in

South Africa?

Defining the Problem in South Africa:

Conventional

Developments Are

Too Expensive

Among lower-income

households (below

R20k/month) in South

Africa (over 17 million) 1 ,

alternative housing

schemes such as

incremental housing are

the only available

options.2

Financial Inclusion

is more than just

access to credit and

banking

Universal access to financial

services is lagging with a

reported close to 2-billion

adults around the world still

lacking access to an

account. 3 In South Africa,

34% of 15+ year olds

remain unbanked. 4

Note: See appendix Slide for research sources

Construction

Industry remains

highly unregulated

Need for risk

reduction in the Loan

Process

In South Africa, the lack of

income verification and

visibility makes lending to

informal earners very

difficult. To reduce the risk

of lending to this market,

lenders can use saving

records, informal

employment records as

credit requirements.

One in every six adults who

work in South Africa, work

in the informal sector with

most of those informal

employing enterprises in

the construction industry. 5

Global Population Growth & the Housing Gap

“If current trends in urbanization and income growth

persist, the affordable housing gap would grow from 330

million households to 440 million by 2025, leaving at

least 1.6 billion people living in substandard

housing.”- McKinsey & Co.

“The world's population will increase from

7.2 billion today to 8.1 billion in 2025”- U.N. Dept. of Economic & Social Affairs

What Does This Mean?Meeting the shortfall for available affordable housing in South Africa

cannot be solved by conventional private sector development

methodologies.

The benefits of Incremental Housing Construction

Fix issues with

homes that have

arisen over time such

as leaks

Link home up to

power, water, or

sanitation services or

solutions

Upgrade the quality of

home with new

materials

Repair Existing

Home

Build dream over time

starting with the

foundation until

complete

Add More

Room(s)

Provision New

Utilities

Improve

Structure

Save & Build In

Stages

Expand the size of

the home by adding

more rooms such as

bathrooms or

bedrooms

Incremental Housing adapts and improves housing based on evolution of the family’s needs and financial resources over time.

Global Opportunity

New homes,

housing improvements,

or incremental building*

Consumer

Spending

Annual Housing Market

$1.7 Trillion

*15% of annual consumption based on World Bank data for 2016 (targeted countries only) **Asia Pacific GSMA report 2017 ***GSMA Mobile Money Report 2017 ****Numbers are only for our 40 target countries listed in Appendix

3.9 Billion people in

developing countries will

have smart phones by 2020**

Smartphone Subscribers

3.9 Billion

Smartphone

Usage

Subscriptions in developing

countries grew over 525%

from 2012 to 2017***

Mobile Money Accounts

629 Million

Mobile Money

Usage

Global Impact

$11.3 Trillion USD

Total Consumption

$1.7 Trillion USD

Total Household Spend

4.9 Billion

Total Population

1.2 Billion

Total Households

3.7 Billion

Total Housing Transactions

Country

2016 Household

Consumption

(Billions of USD)

Estimate

Housing Spend

(Billions of USD)

Population

(Millions)

Households

(Millions)

Housing

Transactions

(Millions)

Population/

Consumption

Ratio

Start

Quarter

Africa $1,109.8 $166.5 775.0 193.7 581.2

Kenya $56.3 $8.4 48.5 12.1 36.3 1.00 Y1 - Q1

South Africa $175.3 $26.3 55.9 14.0 41.9 2.13 Y1 - Q4

Zambia $10.8 $1.6 16.6 4.1 12.4 0.27 Y3 - Q2

Nigeria $377.3 $56.6 186.0 46.5 139.5 5.27 Y3 - Q3

Ethiopia $50.8 $7.6 102.4 25.6 76.8 1.51 Y4 - Q1

Uganda $18.5 $2.8 41.5 10.4 31.1 0.59 Y4 - Q3

Rwanda $6.4 $1.0 11.9 3.0 8.9 0.18 Y4 - Q4

Congo, Dem. Rep. $25.4 $3.8 78.7 19.7 59.1 1.04 Y5 - Q2

Cameroon $22.7 $3.4 23.4 5.9 17.6 0.44 Y5 - Q3

Ghana $27.6 $4.1 28.2 7.1 21.2 0.54 Y6 - Q4

Cote d'Ivoire $23.6 $3.5 23.7 5.9 17.8 0.45 Y7 - Q1

Egypt, Arab Rep. $275.5 $41.3 95.7 23.9 71.8 3.43 Y7 - Q4

Tanzania $29.2 $4.4 55.6 13.9 41.7 0.83 Y8 - Q3

Botswana $7.4 $1.1 2.3 0.6 1.7 0.09 Y9 - Q3

Liberia $3.0 $0.5 4.6 1.2 3.5 0.07 Y9 - Q4

Malawi $4.4 $0.7 18.1 4.5 13.6 0.23 Y10 - Q2

Asia $7,426.5 $1,114.0 3,667.7 916.9 2,750.8

India $1,331.0 $199.6 1,324.2 331.0 993.1 25.48 Y3 - Q1

Indonesia $537.6 $80.6 261.1 65.3 195.8 7.47 Y5 - Q1

Philippines $224.3 $33.6 103.3 25.8 77.5 3.06 Y5 - Q4

Bangladesh $153.1 $23.0 163.0 40.7 122.2 3.04 Y6 - Q2

Pakistan $223.2 $33.5 193.2 48.3 144.9 3.98 Y6 - Q3

Cambodia $15.2 $2.3 15.8 3.9 11.8 0.30 Y7 - Q2

China $4,404.6 $660.7 1,378.7 344.7 1,034.0 53.34 Y7 - Q3

Thailand $206.3 $30.9 68.9 17.2 51.6 2.54 Y8 - Q4

Malaysia $162.7 $24.4 31.2 7.8 23.4 1.77 Y9 - Q1

Nepal $17.9 $2.7 29.0 7.2 21.7 0.46 Y10 - Q1

Vietnam $140.7 $21.1 92.7 23.2 69.5 2.21 Y10 - Q1

Lao PDR $10.2 $1.5 6.8 1.7 5.1 0.16 Y10 - Q2

Latin America $2,742.7 $411.4 528.7 132.2 396.6

Mexico $715.7 $107.4 127.5 31.9 95.7 7.67 Y3 - Q4

Colombia $177.2 $26.6 48.7 12.2 36.5 2.08 Y4 - Q2

Peru $124.8 $18.7 31.8 7.9 23.8 1.44 Y6 - Q1

Brazil $1,149.8 $172.5 207.7 51.9 155.7 12.35 Y8 - Q1

Argentina $359.5 $53.9 43.8 11.0 32.9 3.65 Y8 - Q1

Honduras $16.7 $2.5 9.1 2.3 6.8 0.24 Y9 - Q1

Haiti $7.2 $1.1 10.8 2.7 8.1 0.18 Y9 - Q2

Guatemala $58.5 $8.8 16.6 4.1 12.4 0.69 Y9 - Q2

Dominican Republic $49.9 $7.5 10.6 2.7 8.0 0.55 Y9 - Q3

Bolivia $23.4 $3.5 10.9 2.7 8.2 0.32 Y9 - Q4

El Salvador $23.8 $3.6 6.3 1.6 4.8 0.28 Y10 - Q3

Costa Rica $36.3 $5.4 4.9 1.2 3.6 0.37 Y10 - Q4

Total $11,279.1 $1,691.9 4,971.4 1,242.8 3,728.5

What is iBuild?

Why do we need iBuild?

Who benefits?

How can iBuild be used in

South Africa?

.

.

.

.

.

Families find it difficult to navigate

the construction process and have

no means to verify quality.

Architects are often disregarded,

resulting in poor quality buildings that

may lead to collapse.

Lenders often don’t trust that the

homes will actually be built because

there is no transparency.

Challenges for actors within the current housing ecosystem

Informal construction workers

lack a clear pathway to grow in

their trade.

Suppliers don’t have the digital

tools to market and manage

accounts for the bottom of the

pyramid.

Contractors find it difficult to identify,

manage & pay skilled workers.

How can Lindiwe benefit?

LOAN OFFICER MANAGEMENT

Assign client leads and active loans to staff

LOAN APPLICATION REVIEW

Review client application and project details

DISBURSEMENT MANAGEMENT

Digital wallet payments linked to performance

LOAN PRODUCT ADVERTISING

Advertise loan products and get customer leads

CONTRACTOR MARKETPLACE

Receive quotes and hire rated Contractors

FIND FINANCING

Search home finance offerings & apply

PAYMENTS & FINANCIAL TRANSPARENCY

Digital wallet payments linked to performance

PROJECT MANAGEMENT TOOLS

Monitor progress via status updates w/ photos

How can Lenders benefit?

LOAN OFFICER MANAGEMENT

Assign client leads and active loans to staff

LOAN APPLICATION REVIEW

Review client application and project details

DISBURSEMENT MANAGEMENT

Digital wallet payments linked to performance

LOAN PRODUCT ADVERTISING

Advertise loan products and get customer leads

LOAN REPORTING & ANALYTICS

Reporting that meets the criteria of regulatory industry

How Does iBUILD Support the Housing Loan Lifecycle?

Lead Generation/

Pre-Approval

Underwriting/

Loan ApprovalContractor Selection

Disbursement

ManagementReporting Collections

Loan Product

Advertising

Contractor

Marketplace

Digital

DisbursementsiBUILD Analytics

Wholesale

Lender

Retail

Lender

Homeowner

(customer)

Supplier/

Contractor

Workers

(e.g. artisans)

What does this mean for Wholesale Lending?

Wholesale LenderRetail Lender 2

Retail Lender 1

Retail Lender 3iBUILD WALLET

The iBUILD® wallet allows for full traceability of funds from disbursement, to contractor/supplier

payment, and payment of workers which can then be reported back for analysis

How can this be used for Analytics

Regular Reporting Tailored to NeedsSpecific reports can be designed to track overall disbursement activity, loan

officer performance, applications, and more.

Status of FundsCheck on balance of funds sent at each stage and create a deeper

understanding of where the disbursements go.

Detailed Drill Down CapabilitiesDrill down into individual payments to contractors and suppliers by

homeowners and leverage information for better risk profiling.

How can this be used for Analytics?

Summary Funds by Bank

Contractor Activity

Map of Construction Projects

List of Construction Loans

Loan Funding Details

iBuild partnerships scale our ecosystem and impact

Expertise and best of breed mobile iOS and Android Platform (Mobile 1st) to create a scalable solution.

IBM

Latest payment technologies and card NFC technology for mobile apps.

MasterCard Labs for Financial Inclusion

Piloting within their home loan businesses in Zambia and South Africa for C2C user growth.

Sofala CapitalHabitat for HumanityConducting a case study in East Africa to examine scalability and usability to enable C2C growth through their partners.

Large international construction material manufacturers. Establishing special discount programs for iBUILD C2C users.

St. Gobain

Large international construction material manufacturers. Establishing special discount programs for iBUILD C2C users.

International Finance Corporation

Global Partners South African Partners & Supporters

Thuthukani

Integrating mobile transactional products to expand wallet services across South Africa.

wiGroup

Providing real time routing of payment services to connect users of the platform through a wallet

YoManE

Piloting within their home loan businesses in South Africa for C2C user growth.

Our field Ambassadors strengthen the ecosystem

We place field personnel to provide support to all our types of users and actively build our user base

through strategic marketing and partnerships.

Responsibilities

● Train loan officers

● Recruit contractors & clients

● Verify Contractors

● Provide User Support

● Be the face of iBUILD® to the users

Attributes● Team players

● High energy & outgoing

● Must be local

● Understands housing finance

● Understands the housing process

What is iBuild?

Why do we need iBuild?

Who benefits?

How can iBuild be used in

South Africa?

How does this work in practice for Lindiwe?

Lives in Mamelodi, South

Africa

Earns 100 – 200 ZAR per

day selling chisa nyama

Gets paid in cash

Lindiwe lives in Mamelodi, South Africa in an informal structure despite her regular income selling chisa nyama.

R

Can Lindiwe get financing?

Lindiwe reviews loan offerings, applies, and funds are disbursed direct to iBUILD wallet.

Loan Officer reviews application

Manage Applications Review Client Details Review Client Project Approve Loan

How does Lindiwe make payments?

Lindiwe validates contractor or supplier delivery and pays directly via iBUILD wallet.

How does iBuild transform the existing ecosystem?

Operational Model with iBUILD®

CONTRACTOR MARKETPLACE

Get bids digitally and find vetted contractors with

documented work histories.

DIGITAL TECHNICAL SERVICES

Browse digital catalog of designs with cost estimates and

receive discounted architect services digitally.

DIGITAL PAYMENT DISBURSEMENTS

Digital wallet disbursement payments linked to performance

that is documented and validated.

PROJECT MANAGEMENT TOOLS

Monitor progress via digital status updates with photos.

Current Operational Model

Find a Reliable Contractor

Word of mouth search and constant research to ensure

contractor is trustworthy to have confidence in quality.

Design Home & Estimate BOQ

Minimal understanding of costs and high fees for professional

architects that are unaffordable.

Manual Disbursement of Funds

Loan officers and customers have to manage the transfer of

funds manually and have minimal tools to verify.

Track Progress of Construction

Loan officers or customer need to inspect sites and manage their

own record keeping for each project.

iBUILD® creates a communication ecosystem that links the various stakeholders through a single trusted platform.

Where is iBUILD already operating?

Kenya India Nigeria Indonesia

NATIONWIDE LAUNCH

OCTOBER 2018

ADOPTION

OCTOBER 2018

CUSTOMER VALIDATION

PRE-LAUNCH 2019

CUSTOMER VALIDATION

PRE-LAUNCH 2019

Thank You

chris.tine.lara

SA mobile:+27 723 31 1385

christine.lara@ibuild.global

Together, we will empower the world to build.