Mobey Forum NFC Update - Citi


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A presentation from the Mobey Forum in Barcelona in 2009 on NFC.

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Mobey Forum NFC Update - Citi

  1. 1. CITI NFC UPDATE 2009
  2. 2. Full Disclosure• I work in Citi Growth Ventures – Not an Operating Group – I am NOT a real banker• I worked for Obopay – a mobile payments startup• I belong to 10 different mobile groups on LinkedIn• I have worked in technology as a non-technologist for 20 years and the past 10 in startups.• I love gadgets2
  3. 3. Agenda (s)• Your Agenda • My Agenda – Find out the results of Citi’s – Get to my favorite European highly publicized Bangalore City NFC pilot – Energize other zealots – Find out how hard it was to around NFC launch – Engage ecosystem partners – Find out what is next for NFC on real next steps to deliver at Citi NFC in my lifetime
  4. 4. Citi’s Mobile Aspirations To deliver the most mobile bank in the world to Citi customers 1. Citi intends to be a worldwide leader in mobile financial services (MFS) 2. Citi is customer-centric in our philosophy and all of our innovation, ventures and investments in mobile financial services will be designed to provide outstanding customer experiences. 3. We seek and welcome partnerships and collaboration that delivers a new customer-centric mobile financial services ecosystem. 4. We will continue to leverage and strengthen existing capabilities and develop new capabilities to deliver our mobile strategy.4
  5. 5. Citi’s Mobile Strategy Recommendations• Citi believes in Mobile and has key strategic initiatives in many areas including NFC.3.4.5. Citi should lead or become a major participant in at least one NFC xxxx in each of xxxx xxxxxxx and xxxxxxxx xxxxxx to xxxxxxxxxx experience with consumer use of the service most likely to lead the path into Advanced mobile financial services.6.5
  6. 6. Mobile Money Taxonomy Mobile Commerce Mobile Banking Mobile Mobile Bank Account BillPay By M-Coupons Advertising Payments Services Phone Proximity Remote Payments Payments NFC or Contactless Transit P2M P2P P2M Money6 Transfers
  7. 7. NFC is not a Payment Method• There are enough payment methods• NFC is the ideal access to the payment methods that already exist• There are no technical issues – just connections to be made NFC P2P Stored Value Credit Debit Coupons Domestic Account Cards Cards Offers P2P Google Phone ACH PayPal Remittance Checkout Top Up7
  8. 8. NFC Brand Confusion Match the NFC Programs to their Owners 8
  9. 9. NFC Brand Confusion Match the NFC Programs to their Owners 9
  10. 10. Bluetooth• Compare NFC brand confusion to the clear Bluetooth message 10
  11. 11. Marketing Mix – Reveal and Educate• Direct Mail / Online micro-site• Nokia in-store presence• TV Coverage – Panel Discussion, Product reviews on gadget shows• Corporate campus kiosks – Road shows• Outdoor Advertising (prominent locations in the city)• Airport presence / Cinema Multiplex screening• Weekend Mall based fun events• Print advertorials / Mobile and PC Magazine product reviews• Merchant signage / Customer hand-outs and much, much more….
  12. 12. Marketing Mix – Teaser Posters (week leading to Launch day)
  13. 13. Marketing mix – Educate (Mall based fun events)
  14. 14. Launch Day - Snapshots The first Citi Tap and Pay purchase Merchant and Client dinner Press Conference
  15. 15. Press Coverage – Visibility across all leading national newspapers
  16. 16. Results Speak Volumes• How Many Phones 3,000• How Many Purchases 33,000• Value of Purchases $500K – USD• Average Value of Purchases $14.50 – USD• How Many Merchants 205 and growing
  17. 17. Satisfaction Scorecard Communication of Tap and Pay OVERALL RATING Tap and Pay Brand Image Customer Sign Up Process Experience at Merchant - Checkout Phone Selection Results based on a highly rated marketing agencies’ systematic feedback review with actual Tap and Pay users – n=200
  18. 18. Partner Participation - Nokia• Leveraging Nokia’s Sales & Distribution strength• 8 flagship Nokia stores are retailing the 6212 NFC phones• 2 Nokia Care centers to service any customer complaints• Considerable in-store Marketing presence for Citi Tap and Pay at the participating Nokia outlets• Tap and Pay kiosk to be set up at the Nokia Corporate campus for employee sourcing
  19. 19. Partner Participation - Vodafone• An integral part of the solution architecture – hosts the Control and Coupon servers• Provides OTA (Over The Air) GPRS network required for card & coupon download• Actively promoting Citi Tap and Pay in the top 10 Vodafone Stores in Bangalore• Tap and Pay kiosk set up at Vodafone campus for employee sourcing
  20. 20. Laying the Tracks for Acceptance• Built an acceptance network across top merchant locations• Exclusive offers across the ‘best-in-category’ retail locations in Bangalore• Build consistent and repeat customer usage over next 6 months• Track Customer acceptance, Customer satisfaction and feedback, Business metrics (card usage, card spend volumes) and showcase as a global case study for Citi and the entire NFC eco-system
  21. 21. Hurdles Overcome……barely• Getting all the partners on the same page• Branding for Tap and Pay• Regulatory issues – The RBI (Reserve Bank of India) is very conservative
  22. 22. Game Changer MOBILE - B.A. * MOBILE - A.A. *• Most popular phones in 2006 • Most popular phones in 2009 – Cingular Wireless RAZR by – Blackberry Curve Motorola (in various colors) – Apple iPhone 3G – T-Mobile RAZR (in various colors) – Apple iPhone 3GS – Verizon Wireless RAZR (in various colors) • Best update to phones• Best update to phones – Download applications – New Colors • Downloads• Downloads – Applications of all kinds – Ring tones – Apple’s Mobile Phone Marketshare – Close to 10%• Apple’s Mobile Phone Marketshare – 0.00% * Before Apple and After Apple
  23. 23. Apple Joins the Fray (I hope) A patent application for a Touch Screen RFID Tag Reader, filed by Apple in December 2007, has been published on the US Patent & Trademark Office website. Why Would Apple Add NFC ? • Differentiator • Easier for Apple than Nokia – Apple doesn’t need to decide which phone to NFC-enable • iTunes is a big payment platform – Apple gets payments better than the other phone manufacturers.
  24. 24. Ecosystem Improvements• Enough tests – just launch as big as your budget allows you to• Break the tyranny of the spreadsheet – the ROI is hard to calculate, you need to invest for the future• More phones please – yes, it costs money, but that cost will come down – Apple’s building in NFC to the iPhone in 2010 – what will you do ?• Think about more than payments – coupons, social networking, information updates – NFC delivers a lot more than payments• Don’t wait for a TSM – there are a lot of trusted parties around – Not the least of which are banks and carriers
  25. 25. Citi’s Next Steps• Expanding the pilot in Bangalore – Need better/more phone selection – this has been sited as the #1 issue to solve • Build it, they will buy• Repeating the success of this pilot in other markets – We are evaluating data on other cities in India versus other geographies – We have gained great knowledge and experience and are anxious to apply it across the globe• Investing in NFC “bridge” technologies – You know which ones – I just can’t say yet  – Watch this space in 2010
  26. 26. Further Questions Dion F. Lisle Executive Vice President Citi Growth Ventures 650-814-8081