Dan Armstrong Rabo Mobiel

Slide 1: Rabo Mobiel Rabo Mobiel Overview Dan Armstrong CTO, Rabo Mobiel B.V. (dan.armstrong@rabomobiel.nl) EMERCE Insight banking, 14May 2008

Slide 2: 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

Slide 3: NL Mobile Marketplace (2008)

Slide 5: Rabo Mobiel in the Marketplace

Slide 6: Rabo Mobiel in the Marketplace

Slide 7: 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.

Slide 8: 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)

Slide 9: Rabobank Banking & Payment Innovation 2006 – Open Mobile Internet (OMI) programme launched 2006 – Rabo Mobile launched (world’s first bank MVNO) 1981 – First ATM in NL 2007 – Rabobank / Rabo Mobiel NFC Trials Kick-Off 1994 – 1st web portal www.tref.nl 1986 – Pin Retail PoS 2008 – Mobielbankieren up to anyone (RR) 1996 – Internetbankieren launched 1989 – Telebanking 2008 – NFC Payments 1980 1990 2000 2010 1995 – “Rabofoon” IVR Banking 2008 – Mobiel Betalen Launched 2005 – Rabo tv 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

Slide 10: Some Challenges  In NL, electronic payments are a mature Authentication Medium Method Authorisation model. 98% pinpas penetration, ubiquitous usage and availability, very Physical Passport, Driver’s All financial Person Licence + Bank Pass services cheap transaction costs (free for users)  Do consumers identify the mobile Television Offline Token (Random Large amount of phone as a payment device? and PC Reader) + Bank Pass + financial services knowledge (PIN) (includes signing)  Weaknesses in mobile and banking industries applicable. UBT Online & Offline Token / … Authentication (various  Rabobank’s brand / trust critical to GSM/IP) + knowledge protect. Bank = perception of trust (TIN)  “Security” is always a balance between Mobile Online Authentication Subset of financial Phone (various GSM/IP) + services high levels of protection and usability. (browser) knowledge (TIN) (authorisation)  Mobile security will never match secure, Mobile Knowledge (TIN) Subset of financial tamper-resistant tokens . Phone (IVR) services (authorisation)

Slide 11: Will the current “issuer-centric” world become a “customer-centric” world? 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… Customer needs to go to the bank, request PIN pass, credit Debit cards, changes… Card Credit Office Travel to NS for an OV- Cards Entrance Different cards, chips for different services… chipkaart, apply for personalised OV-chipkaart… Public Rabo Transport Schoolbank Member- Loyalty ship Sport Pick up loyalty cards at Pass supermarkets and retail locations

Slide 12: Rabo Mobiel Product Rollout Strategy FULLY-INTEGRATED  Question: What role doe mobile operators or banks want to play in brokering a customers’ identity? 2009-12 2008-10 INTEGRATION WITH FULL NFC PRODUCTS +  Tip: To gain speed and mass COMPLETE acceptance, countries must PRODUCTS AND INTEGRATION WITH Utilise lessons learned & PARTNERSHIPS PARTNERS establish a federation model, successes to including major players in key B2C move into larger sectors: collaborations / partnerships. 2008-10 PRODUCT ROLL-OUT OPPORTUNITIES, EMERGING STANDARDS, CONSUMER SUCCESS 2007-08 STAND-ALONE TRIALS / FIRST PRODUCTS  Note: All this can’t be only TRIAL FULL technology-led, consumers must PRODUCT LAUNCH get benefit, receive logistic value Utilise trials to define the business case for full and cost savings. product roll-outs & partnerships.

Slide 13: Some Current Products, PoC Programmes & Trials Jun 2008 • Introduction P2P payments to normal mobile numbers, via SMS • Prepaid recharge, online merchants & retailers Jul-Sep 2008 Sep-Nov 2008 Sep-Dec 2008 • Temporary personnel company NFC • 2 new Rabo Schoolbank roll-outs for • NFC payment roll-out with 3 new time registration trial (2 cities) cashless schools handsets in 500+ locations nation- • NFC retail shopping trial with no- • Launch of 4 city NFC parking product wide queue checkout (ends Sep) w/theatres, city passes, vending, • Planned NFC mobile loyalty • NFC card/phone bicycle storage retail programme with 2 nation-wide launch, 3 cities • 120+ conferences with NFC access via loyalty programmes and 4 major 2 event partners retailers

Slide 14: Some images 2007-08 C1000 FEBO NFC vending Coca-Cola NFC vending

Slide 15: Some images 2007-08 28 February 2008: Diergaarde Blijdorp P2P GSM parking launch with Park- line school NFC terminal NFC PIN demo @ Picnic

Slide 16: Rabo SMS Betalen – Powered by MiniTix

Slide 17: MiniTix 2008  MiniTix online (2006) Customer bank account • 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) Klant bepaald Rabo SMS Mag met alle MiniTix settings, Betalen (P2P) Nederlandse • NFC cards, NFC mobile phones alerts, etc. (2008) banken! • Being rolled out in schools, theatres, parking, bicycle storage, vending MiniTix auto- MiniTix overboeken naar opwaarderen rekening courant (2007) (plan 2008)

Slide 18: 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

Slide 19: Mobile Transactions in 2012 Service TSM Key TSM MNO Provider Management OTA Service Provider Service Provider Service TSM Key TSM OTA OTA MNO Provider Management OTA Service Provider Service Provider Service TSM Key TSM PIN Provider Management OTA MNO Service Provider

Slide 20: Thank you! Dan Armstrong, CTO Rabo Mobiel B.V. Oosterdok 2 1011 VX Amsterdam The Netherlands dan.armstrong@rabomobiel.nl http://www.rabomobiel.nl/