The mobile near field communication (NFC) ecosystem already recognises the need for multiple trusted service managers (TSM) to communicate with one another. In the mobile NFC ecosystem there are both Root-TSMs – responsible for managing access and allocation of space and privileges on secure elements (SE) – and service provider (SP) TSMs which provide application content to load on to the SE.
1. Management of relationships and customer engagement
Banks need to be in control of their relationships with partners and consumers in order to keep ahead of their competitors. Banks therefore need to benefit from the data which consumers feedback. This level of information can assist product development in bringing new services to market which truly meet the needs of their existing and prospective customers.
2. Flexibility, scalability and time to market
Being in full control of the system allows banks to adjust aspects of the offering immediately and efficiently, rather than having to liaise with their third party TSM provider and negotiate a renewed service level agreement. The ability to do this significantly reduces product time to market, allowing banks to react to the market and keep both partners and customers happy.
3. Simple IT integration and ownership
Where a bank already has, or plans to have, both a card business and mobile/internet banking services it doesn’t necessarily make sense to outsource the bridging activities for mobile NFC payments. Acting as its own SP TSM allows banks to simply integrate the new mobile technology with their own legacy systems and manage everything as one entity, streamlining processes and potentially reducing the resources required.
Security is at the core of any banking activity – the need to protect data in secure locations is fundamental. Replicating card/account information to be held and processed outside this remit would need careful and assured management, as it involves additional costs and certification.
5. Value added services
By managing their own mobile payment services, banks have the opportunity to quickly and easily expand and enrich their mobile offering. This is especially relevant for supporting affinity, cobranding and other relationships. For example, providing mobile loyalty and reward schemes may be important to both the partner relationship and the bank customer’s satisfaction and retention.
Ultimately, a bank becoming its own TSM is about control. Bell ID’s TSM software solution enables banks to integrate TSM/OTA and EMV services, as well as manage multiple value added services to meet customer requirements.
Principle Consultant Payments & Chip Technology
Bell Identification BV
With over 20 years of expertise, Bell ID is considered the world’s leading provider of lifecycle management solutions for tokens (e.g. smart cards, mobile NFC phones) deployed in single and multi-application