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Changing Landscape in Payments

                     Adrian Ng
                   ACI Worldwide
                     30 Ma...
Agenda

    Introduction
  •
  • Industry Trends
  • What Happens Next
  • ATM Fraud
  • Summary
ACI’s Mission



    “To be the best global provider of
  consumer electronic payment software
              and solutions.”
ACI Customers

                    800+ Customers
                •
                    83 countries
                •
   ...
ACI Customers

    36 of the Top 100 U.S. Banks
  •
  • 27 of the Top 100 U.S. Retailers
  • 17 of the Top Banks in India
...
Industry Trends
Ongoing Growth for Electronic Payments
      Regional Growth Rate for Electronic Payments
      (Retail Payments + Retail ...
The Trend Will Continue in Vietnam…

      “Vietnam’s central bank has called on the country’s banks to
  •
      increase...
Ongoing Growth for ATM Deployments

                    Number of ATMs Worldwide 1967- 2005 (millions)
1.75
              ...
A/P Is Now The World’s Largest ATM Region

                                 Share of ATMs Worldwide, 2005
             Cen...
Growth Rates Vary Significantly

          Installed Base of ATMs by Region, 2005 and 2009 (thousands)
 600
        ↑4-5% ...
What Happens Next…?

      Success Means:
  •
       – Additional Complexity
       – Higher Costs
       – Increased Frau...
Problems with existing payment
          systems
1. Banks operate too many payment systems on
too many platforms within their payment silos.




      Settle     Switch   ...
2. Each payment system has separate
connections to core systems, channels, and
payment networks.
                         ...
3. Each payment type needs access to similar
services … but today these services are deployed
in separate silos.
         ...
Where are payment systems going?
Banks are deploying enterprise payments hubs to
simplify and rationalize their payments architectures.
                   ...
ACI’s Vision ---
providing an enterprise payments hub
                                                                    ...
Case study - CIBC
                               BASE24
                              BASE24-es



                       ...
ATM Fraud
The Crooks are Everywhere!

                                                                 fraud
                       ...
Card Fraud in A/P Higher Than World Average

                                            World Average
                US
...
Card Skimming – The Set-up…
Card Skimming – The Set-up…
Card Skimming – Final Touches…
Card Skimming – Execution
Card Skimming - Receiver in Car
PC, Database, Encoder, Etc…
DIY Cards…
ATM Fraud – What can banks do?

     Operational
 •
     –Education for customers
     –Security cameras
     –EMV
     Fr...
SUMMARY
Summary

   Establish a Vision
 •
 • Build the Right Infrastructure
 • Buy Established Packages To Leverage
   Global Card...
EVERY   S E C O N D.   EVERY   DAY
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Atm Industry For VN

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Transcript of "Atm Industry For VN"

  1. 1. Changing Landscape in Payments Adrian Ng ACI Worldwide 30 May 2007
  2. 2. Agenda Introduction • • Industry Trends • What Happens Next • ATM Fraud • Summary
  3. 3. ACI’s Mission “To be the best global provider of consumer electronic payment software and solutions.”
  4. 4. ACI Customers 800+ Customers • 83 countries • Supported by a • Worldwide Network of ACI Offices, Distributors and Partners
  5. 5. ACI Customers 36 of the Top 100 U.S. Banks • • 27 of the Top 100 U.S. Retailers • 17 of the Top Banks in India • 8 of the Top 10 Banks in Canada • 5 of the Top 10 Banks in the UK and Mexico • 4 of the Top 5 Banks in South Africa • 3 of the Top 5 Banks in Australia & Indonesia
  6. 6. Industry Trends
  7. 7. Ongoing Growth for Electronic Payments Regional Growth Rate for Electronic Payments (Retail Payments + Retail Transfers + Large Value) 7.0 Eastern Europe 6.0 Asia Pacific Middle East/Africa 5.0 South America Index 2004 = 1.0 Nafta 4.0 Western Europe 3.0 2.0 1.0 0.0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
  8. 8. The Trend Will Continue in Vietnam… “Vietnam’s central bank has called on the country’s banks to • increase card payment volumes to reduce the population’s dependence on cash, but interoperability remains an issue. Three separate card payment networks exist in Vietnam, the • alliance of Vietcombank with 17 joint-stock banks, BankNetVN (the national funds transfer system) and the four banks in the VNBC network. Cash payments currently represent 22.8 per cent of Vietnam’s total payments, with just 2 million ATM cards and 1,900 ATMs in use for a total population of 82 million. Where possible, the banks are encouraged to promote card • payments and electronic payment services to customers…”
  9. 9. Ongoing Growth for ATM Deployments Number of ATMs Worldwide 1967- 2005 (millions) 1.75 Early signs of Early signs of 1.50 slowdown slowdown 1.25 1.00 High growth in the High growth in the 0.75 1990s in 1990s in all regions all regions 0.50 Early growth in the Early growth in the First ATM installed First ATM installed USA and then USA and then in the UK in 1967 in the UK in 1967 Japan Japan 0.25 0.00 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 Source: RBR Research
  10. 10. A/P Is Now The World’s Largest ATM Region Share of ATMs Worldwide, 2005 Central Asia-Pacific has displaced Middle • and Eastern East and North America as the largest Africa Europe region for ATMs. 2% 5% Asia- Pacific Latin WE’s share of world • 31% America 11% installations has declined. CEE’s share has risen from • 2% in 2001 to 5% in 2005. Western Europe The shares of Latin America • 22% and the Middle East and Africa have risen slightly. North America 29% Source: RBR Research
  11. 11. Growth Rates Vary Significantly Installed Base of ATMs by Region, 2005 and 2009 (thousands) 600 ↑4-5% pa 2005 2009 500 ↑1-2% pa 400 ↑2-4% pa 300 ↑4-5% pa 200 ↑10-15% pa 100 ↑8-12% pa 0 Asia-Pacific North Western Latin Eastern Middle East America Europe America Europe & Africa Source: RBR Research
  12. 12. What Happens Next…? Success Means: • – Additional Complexity – Higher Costs – Increased Fraud – Customer Service Challenges – More Competition – Pressure on Profits
  13. 13. Problems with existing payment systems
  14. 14. 1. Banks operate too many payment systems on too many platforms within their payment silos. Settle Switch ACH RTGS Risk Card Platform Platform Platform Platform Platform Platform
  15. 15. 2. Each payment system has separate connections to core systems, channels, and payment networks. Payment Systems ACH Debit Card •Printing •Printing Check •Risk & Fraud Mgmt. •Risk & Fraud Mgmt. Wire •Security •Security •Pricing •Printing •Monitoring & Rptg. •Monitoring & Rptg. •Risk & Fraud Mgmt. •Risk & Fraud Mgmt. •Security •Security •Monitoring & Rptg. •Monitoring & Rptg. Core Systems Teller DDA Channels Call Center Web Site G/L IVR Mobile Reconciliation Source: How to Get to the Promised Land: Alternative Pathways to Enterprise Payments Financial Insights Aaron McPherson July 2005
  16. 16. 3. Each payment type needs access to similar services … but today these services are deployed in separate silos. ATM POS Branch Internet Authentication X X X X Switching/Routing X X X X Delivery Channel X X X X Management Marketing X X X Data Aggregation X X X X CRM X X X X Monitoring X X X X Presentation/ X X X Personalisation Authorisation X X X X Risk Management X X X X Source: The Tower Group
  17. 17. Where are payment systems going?
  18. 18. Banks are deploying enterprise payments hubs to simplify and rationalize their payments architectures. Wire Debit Card Payment Payments Systems Database ACH Check Payments Hub Pricing Teller Risk & Fraud Mgmt. Core Systems DDA Security Channels Call Center Unique Functions Web Site G/L IVR Reconciliation Mobile Source: How to Get to the Promised Land: Alternative Pathways to Enterprise Payments Financial Insights Aaron McPherson July 2005
  19. 19. ACI’s Vision --- providing an enterprise payments hub Wire Debit Card Payment Payments Systems Database ACH Check Teller Channels Core Systems DDA Call Center Web Site G/L IVR Mobile Reconciliation Source: How to Get to the Promised Land: Alternative Pathways to Enterprise Payments Financial Insights Aaron McPherson July 2005
  20. 20. Case study - CIBC BASE24 BASE24-es CIBC Hosts Phone Banking IFX Card Processor Branch Network Internet Banking PRM – Debit Payments PRM – AML Manager
  21. 21. ATM Fraud
  22. 22. The Crooks are Everywhere! fraud ss border ATM for cro rested in Russia 00,000 from US Four ar aling around $5 icion of ste ur men on susp ress reports. have arrested fo , according to p n police cam Russia s border ATM s ounts in a cros bank acc Australian police r ecover first complete ATM skim New ming device Zeala ATM nd Ban ks iss fraud ue warn ing y ATM k s h it b ore Ban al scam Singap e m & st ski
  23. 23. Card Fraud in A/P Higher Than World Average World Average US Canada UK Taiwan South Korea Philippines Malaysia Japan Indonesia Australia Source: The Asian Banker Research, 18 March 2004 0 5 10 15 20 25 30 35 Losses Due to Fraud Out of Total Card Transactions (%) in 2002 Losses Due to Fraud Out of Total Card Transactions (%) in 2002
  24. 24. Card Skimming – The Set-up…
  25. 25. Card Skimming – The Set-up…
  26. 26. Card Skimming – Final Touches…
  27. 27. Card Skimming – Execution
  28. 28. Card Skimming - Receiver in Car
  29. 29. PC, Database, Encoder, Etc…
  30. 30. DIY Cards…
  31. 31. ATM Fraud – What can banks do? Operational • –Education for customers –Security cameras –EMV Fraud detection solution • –ACI Proactive Risk Manager
  32. 32. SUMMARY
  33. 33. Summary Establish a Vision • • Build the Right Infrastructure • Buy Established Packages To Leverage Global Cards & ATM Developments • Don’t Forget About Security • Execute Effectively • Work With Good Partners
  34. 34. EVERY S E C O N D. EVERY DAY
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