Dan Armstrong Rabo Mobiel

Rabo Mobiel Overview Rabo Mobiel Dan Armstrong CTO, Rabo Mobiel B.V. ( [email_address] ) EMERCE Insight banking, 14May 2008

About Rabobank / Rabo Mobiel

Rabobank

NL: ~3 mln internet banking customers, 7 mln customers overall (~50% consumer market share)

Extremely high loyalty, broad national coverage of customers

Tradition of innovation

AAA rating (Moody's, Standard & Poor's)

Top-15 world financial institution

Rabo Mobiel

Started in summer 2005, market launch in November 2006

~125.000 customers, postpaid/prepaid, ZZP, all customer segments, regions.

2 Roles: MVNO and Mobile Financial Services Incubator

NL Mobile Marketplace (2008)

Rabo Mobiel in the Marketplace

What you get with Rabo Mobiel

Core Rabobank Values - trust, security, quality, easy-to-use services, cooperative value

Great Telecommunications Product – bundles, bundle-free, unlimited internet, €0,05 no bundle SMS tariffs to any destination ( PRIMEUR, GELANCEERD VANDAAG 14/5 )

Online Self-Care Environment

Commitment to innovation - core asset for differentiation is Mobile Financial Services

Secure mobile banking - MSISDN/IMSI checks, WAP Gateway IP#, VPN, SSL, 5-Number PIN code validation

Close Rabobank partnership, but Rabo Mobiel is an independent company - for speed, innovation, customer experience trials

Leverage GSM technology (internet access, SPS P2P, etc.) and Near Field Communications (NFC) for proximity payments.

Rabo Mobiel Milestones Date Milestone August 2005 Begin feasibility phase, market survey, business planning ( MVNO ) Jan 2006 Rabobank gives “green light” for Rabo Mobiel build ( MVNO ) May 2006 Company begins official operation ( MVNO ) Nov 2006 Nation-wide launch of Postpaid services ( MVNO ) Mar 2007 Launch of segment propositions and packages ( MVNO ) May 2007 Launch of NFC payment vending trials (Coca-Cola, FEBO) ( MFS ) Jun 2007 Nation-wide launch of Prepaid services, retail operations ( MVNO ) Dec 2007 Sales growth, pilot group (30) local banks actively selling ( MVNO ) Jan 2007 Completed successful C1000 mobile payments trial (debit) ( MFS ) Feb 2008 First NFC ticketing roll-out (Diergaarde Blijdorp) ( MFS ) Apr 2008 Transition from Orange network to KPN network, > 100k active clients ( MVNO ) May 2008 Launch Postpaid services in retail ( MVNO ) Jun 2008 Nation-wide launch of Rabo SMS Betalen (P2P payments) ( MFS ) Jul 2008 120 local banks actively selling ( MVNO )

Rabobank Banking & Payment Innovation 1980 1990 2000 2010 1981 – First ATM in NL 1986 – Pin Retail PoS 1989 – Telebanking 1994 – 1st web portal www.tref.nl 1995 – “Rabofoon” IVR Banking 1996 – Internetbankieren launched 1999 – 1st bank WAP site launched (mmm.rabobank.nl) 2003 – Mobielbankieren on i-Mode 2004 – Mobielbankieren launched on Vodafone Live!, Orangeworld, T-zones 2004 – MiniTix Online Launched 2005 – Rabo tv 2006 – Open Mobile Internet (OMI) programme launched 2006 – Rabo Mobile launched (world’s first bank MVNO) 2007 – Rabobank / Rabo Mobiel NFC Trials Kick-Off 2008 – Mobielbankieren up to anyone (RR) 2008 – NFC Payments 2008 – Mobiel Betalen Launched

Some Challenges

In NL, electronic payments are a mature model. 98% pinpas penetration , ubiquitous usage and availability, very cheap transaction costs (free for users)

Do consumers identify the mobile phone as a payment device?

Weaknesses in mobile and banking industries applicable .

Rabobank’s brand / trust critical to protect . Bank = perception of trust

“ Security” is always a balance between high levels of protection and usability .

Mobile security will never match secure, tamper-resistant tokens .

… Online & Offline Token / Authentication (various GSM/IP) + knowledge (TIN) UBT Subset of financial services (authorisation) Knowledge (TIN) Mobile Phone (IVR) Subset of financial services (authorisation) Online Authentication (various GSM/IP) + knowledge (TIN) Mobile Phone (browser) Large amount of financial services (includes signing) Offline Token (Random Reader) + Bank Pass + knowledge (PIN) Television and PC All financial services Passport, Driver’s Licence + Bank Pass Physical Person Authorisation Authentication Method Medium

Will the current “issuer-centric” world become a “customer-centric” world? Customer needs to go to the bank, request PIN pass, credit cards, changes… Travel to NS for an OV-chipkaart, apply for personalised OV-chipkaart… Pick up loyalty cards at supermarkets and retail locations Different cards, chips for different services… Office Entrance Rabo Mobiel wants to move customers themselves to the centre of the card ecosystem. A connected device, card/ID with a screen and keyboard can help do that… Rabo Schoolbank Public Transport Debit Card Sport Pass Loyalty Credit Cards Member- ship

Rabo Mobiel Product Rollout Strategy

Question: What role doe mobile operators or banks want to play in brokering a customers’ identity?

Tip: To gain speed and mass acceptance, countries must establish a federation model, including major players in key B2C sectors:

Note: All this can’t be only technology-led, consumers must get benefit, receive logistic value and cost savings .

STAND-ALONE FULLY-INTEGRATED TRIAL FULL PRODUCT LAUNCH Utilise lessons learned & successes to move into larger collaborations / partnerships. Utilise trials to define the business case for full product roll-outs & partnerships. 2008-10 INTEGRATION WITH PRODUCTS AND PARTNERSHIPS 2009-12 FULL NFC PRODUCTS + COMPLETE INTEGRATION WITH PARTNERS 2008-10 PRODUCT ROLL-OUT OPPORTUNITIES, EMERGING STANDARDS, CONSUMER SUCCESS 2007-08 TRIALS / FIRST PRODUCTS

Some Current Products, PoC Programmes & Trials

Jul-Sep 2008

Temporary personnel company NFC time registration trial (2 cities)

NFC retail shopping trial with no-queue checkout (ends Sep)

NFC card/phone bicycle storage launch, 3 cities

Sep-Nov 2008

2 new Rabo Schoolbank roll-outs for cashless schools

Launch of 4 city NFC parking product w/theatres, city passes, vending, retail

120+ conferences with NFC access via 2 event partners

Sep-Dec 2008

NFC payment roll-out with 3 new handsets in 500+ locations nation-wide

Planned NFC mobile loyalty programme with 2 nation-wide loyalty programmes and 4 major retailers

Jun 2008

Introduction P2P payments to normal mobile numbers, via SMS

Prepaid recharge, online merchants & retailers

Some images 2007-08 C1000 Coca-Cola NFC vending FEBO NFC vending

Some images 2007-08 NFC PIN demo @ Picnic 28 February 2008: Diergaarde Blijdorp school NFC terminal P2P GSM parking launch with Park-line

Rabo SMS Betalen – Powered by MiniTix

MiniTix 2008

MiniTix online (2006)

met één klik betalen

simpele authenticatie

betalen tot €100

automatisch opladen

koppeling met rekening

MiniTix SMS (2007)

MiniTix P2P (2008)

MiniTix mobile application (2008)

MiniTix NFC (2008-09)

NFC cards, NFC mobile phones

Being rolled out in schools, theatres, parking, bicycle storage, vending

Customer bank account MiniTix auto-opwaarderen (2007) MiniTix overboeken naar rekening courant (plan 2008) Klant bepaald MiniTix settings, alerts, etc. Rabo SMS Betalen (P2P) (2008) Mag met alle Nederlandse banken!

Mobile Transactions in 2012 ?????? 1. USABILITY? - cross-platform - NFC behaviour 2. SECURE TRANSATION KEYS? 3. HARDWARE SECURE ELEMENT? - UICC (SIM card) - hardware - removable memory card 4. SEPA

Mobile Transactions in 2012 TSM Key Management TSM Key Management TSM Key Management OTA TSM Key Management OTA TSM Key Management TSM Key Management TSM OTA TSM OTA TSM Key Management TSM OTA Service Provider Service Provider Service Provider Service Provider Service Provider Service Provider Service Provider Service Provider PIN MNO MNO MNO

Thank you!