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Rabobank: Case Studies in Mobile Banking & Payments Development: November 2010, Prague CZ

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A brief presentation on mobile banking and payments developments within Rabobank Nederland and Rabobank International; as well as some case studies of how Rabo Development uses these lessons learned …

A brief presentation on mobile banking and payments developments within Rabobank Nederland and Rabobank International; as well as some case studies of how Rabo Development uses these lessons learned in developing countries.

Dan Armstrong
IIR Mobile Payment Services
Prague, Czech Republic
02 November 2010

Published in Economy & Finance , Business
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  • 5
  • Rabobank is marktleider in:
    Hypotheken
    Sparen
    Lenen
    Verzekeren (schade)
    En tweede:
    Betalen
    Beleggen

    Postbank/ING is marktleider qua fullservicebank/all finanzbank -> huisbankier (3 diensten of meer)
    Zijstap: All finanz huisbankier zijn zit dus niet in een duur advieskanaal

    Daarnaast is Rabobank toonaangevend en wint diverse prijzen zoals Beste Website maar ook voor CRM(implementatie), beste lokale KCC, marketing, sponsoring, iDeal, Rabo Mobiel (bestellen&betalen in de Horeca) etc.
  • iTour: live progress of 2009 Tour de France, 10 weeks in iTunes Store (100.000 downloads, 500.000 sessions)
    Rabo Hockey: live field hockey results for all major national and international events, push notifications on start of match / goal / match results (10.000 downloads, 70.000 sessions)
    Rabo Sport: 2010 Winter Olympics, push notifications for all Dutch results (20.000 downloads)
    Rabo Cycling: all events in UCI World Calendar, live progress, classifications / stages / teams per event (40.000 downloads, Vuelta: 7.000 downloads)
    Rabo Cycling iPad: (7.500 downloads, average 7 min. usage)

    Plans for 2011:
    New Apps (e.g. Equistrian Sports)
    More interaction (MobyPicture platform)
    More Location Based Services
    More personal (e.g. RunKeeper)
    Integration between Apps
    Advertising in Apps
    Relation with Mobile Banking/payments
    iPad: focus on sharing








  • Some examples of what Rabo Mobiel looked/looks like.
  • Some examples of what Rabo Mobiel looked/looks like.
  • Rabobank has been innovating for a long time.

    Highlights:
    First ATM in The Netherlands
    First Internet Banking product, pioneering internet banking in Europe
    First web portal
    First WAP site
    First mobile banking portal
    iDeal
    MiniTix
    First MVNO/ESP

Transcript

  • 1. Mobile Payment Services – Prague, CZ – 02 November 2010 Rabobank: Case Studies in Mobile Banking & Payments Development A brief presentation on mobile banking and payments developments within Rabobank Nederland and Rabobank International; as well as some case studies of how Rabo Development uses these lessons learned in developing countries. Dan Armstrong IIR Mobile Payment Services Prague, Czech Republic 02 November 2010
  • 2. Mobile Payment Services – Prague, CZ – 02 November 2010  Introducing Rabobank  A View of the Current Mobile Banking & Payments Landscape  Rabobank Group: Leveraging Knowledge & Platforms World-Wide  Rabobank Nederland: • Rabobank Mobile Banking and Mobile Applications • Rabobank Mobile Innovations Projects • Rabo Mobiel • Rabobank and the new NL NFC (Contactless) Mobile Payments Joint-Venture  Rabo Development Case Studies: • NMB mobile (Tanzania) • Banque Populaire du Rwanda (Rwanda) • Banco Regional (Paraguay) Contents
  • 3. Mobile Payment Services – Prague, CZ – 02 November 2010 ( ?) VISA Mobile Android Landscape of Mobile Banking and Payments IVR Banking & Payments SMS Account Activity Alerts Multi-Channel Balance-Checking Full-Service Mobile Banking Remote Payments and Electronic Wallets Mobile Contactless Payments (NFC) USSD Java STK iPhone WAP Windows Mobile Android Etc. Samsung JET Others … Note: not exhaustive, there are other technologies used in the world, but these are the major ones.
  • 4. Mobile Payment Services – Prague, CZ – 02 November 2010 Landscape of Mobile Banking and Payments : Detail IVR Banking & Payments SMS Account Activity Alerts Multi-Channel Balance-Checking Full-Service Mobile Banking Remote Payments and Electronic Wallets Mobile Contactless Payments (NFC)  Security: PIN-based, CLI can be used (but not reliably)  Easy-to-use, menu-driven navigation  Works on every phone  Cumbersome  Bank-pushed method; normally offered for free to customers  Simple to understand (can be)  Works on every phone  Can be applied to many products (accounts, loans, offers, discounts, etc.)  No transactions or advanced features  Customer-pulled method  Simple to understand (can be)  Can be applied to many account types  Can be done via SMS, WAP, USSD or apps  Is a “killer app” in many regions, including Western Europe  Somewhat limited in scope  Can be easy-to-use  Full-service = transactions, inquiries, actions, information  Saves trip to the ATM or bank, supports virtual channels, saves direct bank costs  Can be made to work on many phones, but app-based functionalities require specific phone strategy, development, costs  More complicated to launch and maintain, but allows for transaction charges  Except for mobile network operator distribution networks (M-PESA, MTN Mobile Money, ZAIN ZAP, Tigo Cash), bank wallets have enjoyed limited success world-wide  Some successes: Apple iTunes Store, PayPal, some Japanese products, public transportation.  Likely a step too far for developing (and developed?) banks, customers can directly access their bank account!  Card-emulation products in trial since 2004  Lack of mobile network operator business case (and they normally buy wholesale phones)  Difficulty in making a business case for a contactless phone vs. contactless cards.  Handset availability - there are no phones! SIM Tool Kit  Apps V1  Apps V2  USSD  WAP  etc. SMS Account Activity Alerts Full-Service Mobile Banking
  • 5. Mobile Payment Services – Prague, CZ – 02 November 2010 About Rabobank Group  3,7 mln internet banking customers, 7 mln NL customers overall (population: 16,5 mln), 9,5 mln customers world-wide  152 local banks and 1200 locations  Loyal, involved customers including 1,5 mln members  AAA rating (Moody's, Standard & Poor's, Dominion Bond)  Tradition of innovation: ATMs, internet banking, WAP and web presences, mobile banking, television banking, GSM services and operations (46 as of 2010)
  • 6. Mobile Payment Services – Prague, CZ – 02 November 2010 Rabobank and the NL Banking Landscape 18,4% 19,2% 11,2% 2,1% 0,0% 25,0% Rabobank ING/Postbank Fortis/ABN AMRO SNSBank NLmarketpositionEOY2008  Rabobank has the highest trust rating of all NL banks with 42%; #2 is 17%  Year-on-year, Rabobank ranks with the best bank website, customer service centre, CRM implementation, marketing and sponsorship programmes  Mortgages (1) - 27%  Savings Accounts (1) - 41%  Loans (1) - 22%  Insurance (1) - 13%  Payments (2) - 30%  Investment (2) - 16%
  • 7. Mobile Payment Services – Prague, CZ – 02 November 2010 Leveraging Knowledge, Experience & Platforms Fiserv Mobile Banking Trial (2010) Mobile Banking 60.000 customers (2003) SMS Alerts 190.000 customers (2002) Mobile Wallet 45.000 customers (2006) WAP, J2ME, iPhone, Android, Windows, Widget Apps NMB mobile 290.000 customers (launched mid-2009) FNB Mobile & Fast Account (launched mid-2010) BPR Mobile Banking 30.000 customers (launch Sept. 2010) Rabo Mobiel 270.000 Customers (2006) Mobile Cash Management (FL) (2008) SMS Alerts 220.000 customers (launched 2008) Mobile Feasibility Study (2010) Mobile Feasibility Study (2010) Mobile Banking 100.000+ customers (2003) SMS Alerts 190.000 customers (2002) MiniTix Mobile Wallet 45.000 customers (2006) WAP, J2ME, iPhone, Android, Windows, Widget Apps Rabo Mobiel 200.000 Customers (2006) Mobile Cash Management (FL) (2008) NMB mobile 320.000 customers (launched mid-2009) SMS Alerts 220.000 customers (launched 2008) Mobile Feasibility Study (2010) NFC Contactless Payments Joint- Venture (2010) Xapit Instant Banking 130.000 customers (launched end-2008)
  • 8. Mobile Payment Services – Prague, CZ – 02 November 2010 Rabobank Mobile Banking : Launched with WAP Mobielbankieren enables transfers to known parties and payments up to €50.000 with Random Reader Saldo Direkt provides 1-click account balances on all your accounts Rabofoon telephone banking (IVR) SMS Alerts for banking, transfers, payments, telco spending alerts Mijn Mobiel telecommunications spending alerts, history and invoices Rabo Financial Services Portal with financial services info., current stocks and financial news SMS SMS WAP WAP WAP IVR WAP WEB iPhone Android WM
  • 9. Mobile Payment Services – Prague, CZ – 02 November 2010 Mobile Banking Apps : Different Platforms
  • 10. Mobile Payment Services – Prague, CZ – 02 November 2010 Rabobank Nederland Mobielbankieren : From Browser to App
  • 11. Mobile Payment Services – Prague, CZ – 02 November 2010 Rabobank Mobielbankieren : Usage 2010 Basically static Mobielbankieren usage 2003-2006. Rabo Mobiel launch and promotion increased the usage from 2006-2009. Launch of “apps” in late 2009 generated hugely increasing sign-up and usage figures. 2003-2009 level
  • 12. Mobile Payment Services – Prague, CZ – 02 November 2010 Other Apps Offered by Rabobank Nederland
  • 13. Mobile Payment Services – Prague, CZ – 02 November 2010 SMS Betalen : iPhone application
  • 14. Mobile Payment Services – Prague, CZ – 02 November 2010 SMS Betalen : Java Midlet & Android App
  • 15. Mobile Payment Services – Prague, CZ – 02 November 2010 Rabo Sponsorship Apps RaboSport RaboHockey iTour(TourdeFrance2009) RaboCycling
  • 16. Mobile Payment Services – Prague, CZ – 02 November 2010 Third-Party Payments Apps : Powered by Rabobank 2 x Shutter Island
  • 17. Mobile Payment Services – Prague, CZ – 02 November 2010 Rabo Mobiel
  • 18. Mobile Payment Services – Prague, CZ – 02 November 2010 Rabobank GSM MVNO & Value-Added Bank Product  Great, Core Mobile Telecommunications Product  Rabobank Values – trust, security, quality, easy-to-use services, cooperative value  Online Self-Care Environment  Secure Mobile Banking  Commitment to Applications Innovation (Mobile Financial Services)
  • 19. Mobile Payment Services – Prague, CZ – 02 November 2010 Rabo Mobiel in the Marketplace
  • 20. Mobile Payment Services – Prague, CZ – 02 November 2010 Rabo Mobiel in the Marketplace
  • 21. Mobile Payment Services – Prague, CZ – 02 November 2010 1. Rabobank GSM MVNO Telecommunications Services Mobile Internet Access Mobile Content, Information & Media Portals and Self-Care 2. Value-Added Bank Product Banking “On the Go” Premium Product / Combination Communications Channel for Local Banks, Members and Customers 3. Mobile Incubator Product/Business Development for Mobile Financial Services and Products Launch of Remote and Contactless Payments and Partnerships 4. Mobile Knowledge Centre NFC, Consumer Behaviour & Usability Encryption, Mobile Business Rules Mobile Low-Value Payments Standards, Retail/Consumer Acceptance, Security, Sustainability Rationale for Rabo Mobiel
  • 22. Mobile Payment Services – Prague, CZ – 02 November 2010 Rabo Mobiel Remote Payments Trials Mobile Health: Stichting Diabeter, Health Agency, Achmea (2008-09) Mobile Terrace Payments: MyOrder at various locations (2008-09) Albert Heijn To-Go NFC Shopping: Amsterdam Amstel (2008-09) MiniTix Mobile Merchants: SMS Betalen Java (2008-09) Mobile Parking: Park-Line (2007) Rekeningrijden: with Rabobank (2008-09) WM J2ME iPhone J2ME iPhone J2ME NFC Bluetooth SMS
  • 23. Mobile Payment Services – Prague, CZ – 02 November 2010 Rabo Mobiel Proximity Payments Trials & Launches NFC Mobile Ticketing: Diergaarde Blijdoorp (2008-09) NFC Fietsenstalling : Eindhoven, Tilburg (2008-09) Rabobank Rotterdam NFC Cashless Schools: kassa’s and vending, ASH, HHS/Redbird (2007-09) NFC Cantina Trials & Roll-Out: Carian/MiniTix (2008-09) NFC Vending Trials: Coca-Cola, FEBO (2007-08)NFC Mobile Domestic Debit Card and Shopping Tool: C1000 (2007-08) J2ME J2ME NFC NFC WEB WEB NFC NFC
  • 24. Mobile Payment Services – Prague, CZ – 02 November 2010 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 2007 – MiniTix SMS 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 €50k (RR) 2009 – NFC Payments Roll-Out 2008 – SMS Betalen Launched 2005 – Rabo tv 2007 – Rabo Schoolbank NFC Cashless Schools 2006 2007 2008 Postpaid Launch Launch of Segment Packages NFC Trials: Coca-Cola, FEBO Prepaid Launch C1000 NFC Trial 30 Banks Online Diergarde Blijdorp NFC Ticketing Retail Launch Postpaid Retail Launch Orange -> KPN 180k + customers100k + customers 120 Banks Online SMS Betalen Launch AH To-Go Trial MyOrder Terrace Betalen MIB 6.0 (OMI)MIB 4.1 (RR) Senioren Youth MKB/ZZP Rabo Mobiel B.V.
  • 25. Mobile Payment Services – Prague, CZ – 02 November 2010 Rabobank and Mobile Contactless Payments
  • 26. Mobile Payment Services – Prague, CZ – 02 November 2010  A view of the evolution of bank cards through EMV and beyond. “proximity payments” being seen as “card present” transactions.  Most contactless EMV products launched to-date target LVP. A view of payment token evolution Proprietary Bank Cards Contactless EMV Cards Non-EMV Cards EMV Cards NFC Loyalty & Membership Shopping & SmartPosters NFC Mobile Phones with EMV Card Emulation NFC Ticketing & Coupons NFC Public Transport Other, P2P, Payment, etc.
  • 27. Mobile Payment Services – Prague, CZ – 02 November 2010 The broader NL NFC application landscape Access Control Schools Cantinas Public Transport Debit Cards Membership Other Payment Credit Cards Ticketing Couponing In-Store Formulas Vending Smart Posters NFC P2P Interactivity Parking Loyalty & Discount NFC delivers interaction in the physical world, therefore card- emulation is a key focus. Success comes via attention to customer requirements not technology-push. However, mobile apps & device connectivity deliver true differentiation over cards. Some thoughts ..
  • 28. Mobile Payment Services – Prague, CZ – 02 November 2010  NFC SWP Handsets  NFC SWP UICC  NFC Mobile Payment Applications  NFC Mobile Wallet Applications  TSM Role • Bank/SP Management, New Banks/SPs • Life-Cycle & Memory Management • OTA Capability & MNO Interface Management • Certification & Compliance  NFC POS, Other NFC Readers for NFC VAS  NFC Customer Experience • Other Value-Added NFC Handset Applications • NFC POS Formulas & Combinations  Brand & Marketing, Launch & Continuing Campaigns Elements of the mobile NFC ecosystem TSM Role
  • 29. Mobile Payment Services – Prague, CZ – 02 November 2010
  • 30. Mobile Payment Services – Prague, CZ – 02 November 2010 Rabobank International • Rabobank’sinternationalmarketniche isfood-&agribusiness • CustomerNetwork:manyoftheglobalfoodcompanies • Expertise:dedicatedresearchteam(80professionals) • Agriproducts:weatherderivatives,pricehedginginstruments • Ruralretailbanksinvariouscountries
  • 31. Mobile Payment Services – Prague, CZ – 02 November 2010 Rabobank Development Eligiblebanks: • Developing(lowincome)economies • Economic, politicalandsocial stability • Ruralareaandagriculturalsectorimportantforeconomy • Openforforeigninvestments • Safeforourstaff
  • 32. Mobile Payment Services – Prague, CZ – 02 November 2010 Some Partner Bank Examples Zambia : Zanaco Xapit Instant Banking  Launched in late 2008, USSD II mobile banking & ATM card  Highly-successful “sub-branded” operations help Zanaco change it’s image, sign-up for an account in 5 minutes.  130.000 active customers to-date  20+ bill payment partners, prepaid airtime, etc.  June 2010 Usage: 21 transactions per month (average), 1.56 mln transactions per month total  AIN, MTN & CellZ Rwanda : BPR Mobile Banking  Launching September 2010 nation-wide  USSD II mobile banking & SMS Alerts  MTN & Tigo (90%+ mobile penetration)  Goal: 60.000 customers EOY1, 120.000 customers EOY2 *444#
  • 33. Mobile Payment Services – Prague, CZ – 02 November 2010 … later in 2010 Some Partner Bank Examples Tanzania : NMB mobile  Launched in August 2009  308.000+ active customers to-date, hugely successful and profitable, break-even: 8 months  Prepaid airtime, bill payment, prepaid electricity  Vodacom, Zain, Tigo, Zantel (99% mobile penetration)  SMS Alerts to 220.000 customers monthly  June 2010: 1.86 mln transactions per month total Malawi : FNB Mobile / FNB Fast Account  Launched summer of 2010  Successful to-date – packaging of ATM card, bank account and mobile banking functionality  Includes immediate (small) balance on customers’ account , facilitating usage of the new product
  • 34. Mobile Payment Services – Prague, CZ – 02 November 2010 Case Study: NMB (Tanzania)
  • 35. Mobile Payment Services – Prague, CZ – 02 November 2010 NMB: National Microfinance Bank Ltd. (Tanzania)  1,8 mln customers (500k increase with the launch of mobile banking/payments)  Consumer and small-business focused • Dedicated to providing sustainable, viable access and direct financial services. • Proud of our history of support for Tanzanians of all income levels, government and businesses.  Close By • Extensive (largest) network with 145 branch locations and 300+ ATMs nation-wide. • Branch network designed to cover minimally 80% of Tanzanian districts.  Empowering Entrepreneurs • Paying special attention to micro, small/medium-sized and rural business. • Tanzanian agriculture is close to NMB’s heart (KILIMO KWANZA) and they play a roll in all parts of the supply chain.  Rabobank : 40% shareholder Case Study: NMB mobile (Tanzania)
  • 36. Mobile Payment Services – Prague, CZ – 02 November 2010
  • 37. Mobile Payment Services – Prague, CZ – 02 November 2010
  • 38. Mobile Payment Services – Prague, CZ – 02 November 2010  Easy-to-use NMB mobile banking and payments for all NMB customers (USSD)  Features the most desired consumer applications: • Balance Inquiry • Mini-Statement • Money transfers to any NMB account • Tanesco Luku Prepaid Electricity Purchase • Vodacom and ZAIN Prepaid Airtime Top-Up • NMB Services like ATM card block, settings  Works with NMB Personal Account, TPDF Account, Student Account, Wisdom Account  Simply dial *155*66# to access  No need to fill-in forms or visit an NMB branch to sign-up, simply dial *155*66*123# NMB mobile NMB mobile 1. Balance Enquiry 2. Mini-Statement 3. Money Transfer 4. Prepaid Services 5. Other Services 6. Help
  • 39. Mobile Payment Services – Prague, CZ – 02 November 2010 Example: Mobile Banking Menu (USSD) NMB mobile 1. Balance Enquiry 2. Mini-Statement 3. Money Transfer 4. Bills & Payments 5. Purchase Airtime 6. Bank Services 7. Help Your NMB account balance is: TSH 000,000.00 Enter “9” to return to the main menu. NMB mobile 1.Balance Enquiry 2.Mini-Statement 3.Money Transfer 4.Bills & Payments 5.Purchase Airtime 6.Bank Services 7.Help *155*66# NMB mobile Please enter your NMB mobile PIN. Pease enter the recipient account or phone number registered for NMB mobile that you wish to transfer money to: Enter the amount of money to be transferred: Please confirm your money transfer: TSH 000,000 will be transferred to Enter “0” to confirm transfer and send. Money transfer successful! TSH 000,000 was transferred to NMB mobile Ref. No: 12345678 Enter “9” to return to the main menu.
  • 40. Mobile Payment Services – Prague, CZ – 02 November 2010
  • 41. Mobile Payment Services – Prague, CZ – 02 November 2010 NMB Milestones 2006 2007 2008 2009 ATM Money Transfer NMB SMS Salary Alerts NMB Business Account NMB Personal Account: ATM Roll- Out Begins NMB Bonus Account NMB Wisdom Account (pensioners) Tanesco Luku Payment via ATMs Vodacom Airtime via ATMs IPO: NMB Welcomes 27.000 new Shareholders! NMB TPDF Account 100 ATMs within 1 Year 85.000 SMS Salary Alerts Users 200 ATMs within 2 Years Internet Banking for Corporates
  • 42. Mobile Payment Services – Prague, CZ – 02 November 2010 Case Study: BPR (Rwanda)
  • 43. Mobile Payment Services – Prague, CZ – 02 November 2010 BPR Branch Network
  • 44. Mobile Payment Services – Prague, CZ – 02 November 2010 2 66 90 11 79 71 16 79 62 7 69 82 0 10 20 30 40 50 60 70 80 90 100 no possibly very much no possibly very much no possibly very much no possibly very much Would the client use a mobile phone in doing some of the transactionsthatbroughtthemto the bank, if such a channel existed? would the client trust using the phoneto transfer / receive money on their account or paybills,goods and services Would they be willing to paya small amountfor this service if itadded value? Do they feel that they would benefit bynot having to carry around as much cash with them to pay bills, other people or goods/services? Our customer survey validates the vision .. Would you use a mobile phone for banking? Would you trust a mobile phone for transfers and purchases? Would you be willing to pay for it if it added value? Would you like to carry less cash? Results: BPR Mobile Banking customer survey, April-May 2010, 7 branches & 170 customers interviewed.
  • 45. Mobile Payment Services – Prague, CZ – 02 November 2010 Mobile Banking 1. Balance Inquiry 2. Mini-Statement 3. Money Transfer (BPR Accounts) 4. Prepaid Airtime • MTN • Tigo (pending) 5. Bill Payments • RECO Prepaid Electricity • StarTimes Africa TV • DStv • MTN Postpaid Bill • Tigo Postpaid Bill (pending) 6. Bank Services • Change BPR Mobile Banking PIN • Change Language • Order Cheque Book 7. Help What can you do?
  • 46. Mobile Payment Services – Prague, CZ – 02 November 2010 1. Customer signs-up at a connected branch at the Customer Service desk • They identify themselves with their ID • We validate ID and automated account • We then search for the customer on the mobile banking system website (by account no.) and enter their mobile phone no. 2. BPR Mobile Banking will send a SMS to the registered phone no. with a welcome message and an initial mobile PIN 3. Newly registered customer will dial the USSD code and will be prompted on first logon to change their mobile PIN  All accounts with the same customer ID will be automatically linked to the phone no. How will customers sign up?
  • 47. Mobile Payment Services – Prague, CZ – 02 November 2010 Phase 1.5: Development Launch new services, alerts, features • Show growth and development (“living product”) • Enable catch-up with last mobile operators, payment partners, RRA • Sub-branch automation via USSD Phase 2: Expansion ?? Banking the Un-Banked, A Modern Savings Account for All Rwandans • A transactional savings account that you can sign-up for in your own village or farm. • An account that doesn’t require “connected” branches to work. Phase 1: Launch In this phase, BPR wants to establish the platform for mobile banking – starting with valuable services for existing customers. • Successfully launch our platform, product and brand • Work out any kinks, get customer feedback • Attract new customers to the bank BPR Mobile Banking Roadmap Strategy Q3 2010 Q4 2010 Q1 2011 Q2 2011
  • 48. Mobile Payment Services – Prague, CZ – 02 November 2010  Phase I: Planning (2 weeks, 26 April – 07 May)  Phase II: Design & Architecture (2 weeks, 17 – 28 May)  Phase III: Build (5 weeks, 31 May – 09 July)  Phase IV: Test & Acceptance (3 weeks, 12 – 20 July)  Phase V: Friendly User Test (3 weeks, 02 – 23 August)  Launch (24 August, Rwanda International Trade Fair) – Sept. Live Launch Timing April May June July AugustI III IV VII
  • 49. Mobile Payment Services – Prague, CZ – 02 November 2010 BPR Mobile Roadshows & Sign-up Success
  • 50. Mobile Payment Services – Prague, CZ – 02 November 2010 BPR Mobile Roadshows & Sign-up Success
  • 51. Mobile Payment Services – Prague, CZ – 02 November 2010 Case Study: Banco Regional (Paraguay)
  • 52. Mobile Payment Services – Prague, CZ – 02 November 2010 Rationale  Good for Banco Regional Customers • New, innovative, modern service for existing customers • Saves customers time and energy • Can service multiple account types (easy-to-bundle) • Easy to use, safe and secure, reliable – for many Banco Regional customer segments  Good for Paraguayans • Given internet and mobile penetration, provides services to the under/un-banked • Attract new customers to banking in general  Good for Banco Regional • Attract new consumer customers to Banco Regional • Platform for all sorts of new products and combinations • Allows customers to bank when and where they want • Cost reduction (queues, incentivises alternative banking channels) • SMS channel for us to communicate with customers • Transaction and commission revenue helps Banco Regional fund more product development • According to the customer survey: post-merger, Banco Regional customers await new services.
  • 53. Mobile Payment Services – Prague, CZ – 02 November 2010 Banco Familiar SMS Alerts Basic SMS Alerts product, free for customers. BBVA SMS Alerts Basic SMS Alerts product, free for customers. Itaú ClickBanking Flexible SMS Alerts for all account types, loans (Tigo, Personal). Free. IVR banking. Previously offered mobile transfers. Vision Banco SMS Alerts Basic SMS Alerts product, free for customers. Mobile Financial Services Competition in Paraguay  There seems to be a “first mover advantage” for a full-fledged mobile banking strategy.  Time-to-market is critical here. Banco Continental SMS Alerts Basic SMS Alerts product, free for customers. Billetera Personal Money transfer, mobile wallet product from Personal. Giros Tigo / Tigo Cash USSD-based money transfer service for Tigo & non-Tigo customers. 4% commission charged to sender. Also promote mobile banking.
  • 54. Mobile Payment Services – Prague, CZ – 02 November 2010 Paraguayan Socio-Economic Distribution & MB 4 % (ALTO) 26 % (MEDIO) 14 % (MUY BAJO) Bajo alto 10 % Bajo medio 16 % Bajo bajo 30 % 56 % (BAJO) High-value customers and enterprise businesses need to be targeted in other ways. Traditionally expensive to attract these customers. Massive potential to expand in middle, middle- lower and lower income customer base with MB. This is the area where Paraguayans are under- served, but still can be profitable, long-term Banco Regional customers. Massive potential to expand in low-income customer base with MB. Traditionally these are un-banked Paraguayans and not automatically attractive to Banco Regional. However, with a limited product set, and cost- effective support & maintenance, these could also be profitable for the bank. Question: What are the segments applicable to a Banco Regional MB product? Likely this is upper-middle, middle, lower-middle and lower segments. Is Banco Regional interested in trying to expand successfully in these segments? Data Source: PRESENTACION - TARJETAS DE CREDITO AGOSTO 10 - FINAL.pptx
  • 55. Mobile Payment Services – Prague, CZ – 02 November 2010 Business Case Drivers Primary: 1. Customer Acquisition Tool • New customers in current regions • New customers in un-served regions • New customers to banking 2. Cost-Savings • Innovative “virtual” (alternative) channel • Helps lower branch queues 3. New Revenues • Deposits and loans from new customers • Bundle revenues • Direct transaction revenues Secondary: 4. Loyalty • Service addition in bundles for existing customers • New 24/7 channel, bank in your pocket 5. Innovation • Supports Banco Regional’s position in Paraguay • Leverages lessons learned from partner banks 6. Enterprise Customers • Supports business account management with new consumer payment product in Paraguay • Supports payroll strategy
  • 56. Mobile Payment Services – Prague, CZ – 02 November 2010 Thank You! Dan Armstrong Takashi Mobile | Financial Services Rapenburgerplein 81 1011 VJ Amsterdam The Netherlands www.takashimobile.com dan.armstrong@takashimobile.com +31 652 085 071