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Mobile Banking & Payments Update: September 2010

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Mobile Banking & Payments Update: September 2010

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One view of the mobile banking and payments landscape in 2010, including some case studies: NMB mobile in Tanzania, Rabobank in The Netherlands and some emerging proximity payments models leveraging NFC.

One view of the mobile banking and payments landscape in 2010, including some case studies: NMB mobile in Tanzania, Rabobank in The Netherlands and some emerging proximity payments models leveraging NFC.

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Mobile Banking & Payments Update: September 2010

  1. 1. Mobile Banking & Payments Development<br />Brief presentation on some trends in mobile banking, mobile remote and proximity payments world-wide, and in The Netherlands.<br />Dan Armstrong, Takashi Mobile | Financial Services<br />Wim Westerhof, Rabobank Nederland<br />Cees Onderwater, Rabobank Nederland<br />13 September 2010<br />
  2. 2. The 2010 Mobile Banking & Payments Landscape<br />Technologies and products in use world-wide<br />What services work in what regions, and what is going on in The Netherlands<br />Case Studies:<br />Rabo Development & NMB mobile (Tanzania)<br />Rabo Mobiel & Rabobank Mobielbankieren (The Netherlands)<br />Proximity Payments<br />Contents<br />
  3. 3. Landscape of Mobile Banking and Payments<br />Rabobank, ABN AMRO, ING, SNS, etc.<br />1990-1999, continues …<br />2002, continues … (quite popular)<br />IVR Banking & Payments<br />SMS Account Activity Alerts<br />Multi-ChannelBalance-Checking<br />Others …<br />Full-Service Mobile Banking<br />Remote Payments and Electronic Wallets<br />Mobile Contactless Payments (NFC)<br />Java<br />WAP<br />STK<br />USSD<br />iPhone<br />Windows Mobile<br />Samsung JET<br />Android<br />Etc.<br />VISA MobileAndroid<br />( ?)<br />Note: not exhaustive, there are other technologies used in the world, but these are the major ones.<br />
  4. 4. Landscape of Mobile Banking and Payments : Another View?<br />Mobile Banking<br /><ul><li>Remote Control Over One’s Bank Account
  5. 5. Saldo information
  6. 6. Account management
  7. 7. Authorised mobile payments (“overmaken”) like transfers and bill payments
  8. 8. Banking and finance information</li></ul>Mobile Remote Payments<br /><ul><li>Card not-present transactions
  9. 9. Some overlap with “Mobile Banking”
  10. 10. Also serves three-corner mobile wallet systems (e.g. PayPal and OV-chipkaart)
  11. 11. Also serves credit cards, mobile operator wallets, etc.
  12. 12. Potential to deploy services to the “un-banked” in regions like Africa, South America, Asia</li></ul>Mobile Proximity Payments<br /><ul><li>Quick win: Card emulation with the mobile phone
  13. 13. Value-Add: Combination products (e.g. loyalty, discounts, internet access combined with purchase moments, etc.</li></ul>IN NL:<br />sort of…<br />… plus trials<br />… plus mobile banking products.<br />
  14. 14. Remote payments can take on different forms …<br />Complicated landscape currently surrounding “remote payments”, as differentiated from “proximity payments”<br />Online versions: Paypal, iDEAL, credit card, Facebook Payments, internet banking, etc.<br />In the future, is the mobile phone simply a small internet device? However, different ..<br />Security (authentication) issues<br />User-experience issues <br />Trust issues<br />2010 seems to be a “hybrid year” ..<br />Old mobile payment models going away (SMS, WAP, OTP-only models)<br />Clear trend towards mobile applications<br />Increased usability of mobile banking, mobile payments, in-application payments and e-value<br />However, standards? 3-corner model vs. 4-corner model clearly an issue ..<br />VISA Mobile<br />
  15. 15. Some examples of mobile remote payments “successes”? <br />???<br />???<br />???<br />???<br />???<br /><ul><li>What are the business goals for enablement of the iTunes store ecosystem?
  16. 16. Profitability for apps?
  17. 17. In-app payments?
  18. 18. Proximity payments???
  19. 19. Hardware sales, lock-in?
  20. 20. M-PESA (Kenya) a huge success, but not many other countries have had similar experiences.
  21. 21. P2P money transfer first, expansion to payments , savings accounts (MKESHO)
  22. 22. However, business goals are churn reduction / loyalty to the SIM card?
  23. 23. GCASH (Philippines) leapt from P2P money transfer for retail payments quickly.
  24. 24. Can be a strategy in countries without POS; however, is it mobile operator core business?
  25. 25. Partnerships, fragmentation, consolidation?</li></li></ul><li>Case Study : Rabo Development & NMB Tanzania<br />
  26. 26.
  27. 27. Rabobank Development<br />Eligible banks:<br /><ul><li>Developing (low income) economies
  28. 28. Economic, political and social stability
  29. 29. Rural area and agricultural sector important for economy
  30. 30. Open for foreign investments
  31. 31. Safe for our staff</li></li></ul><li>Leveraging Knowledge, Experience & Platforms<br />Mobile Banking(2003)<br />WAP, J2ME, iPhone, Android, Windows, Widget Apps<br />Rabo Mobiel (2006)<br />SMS Alerts<br />(2002)<br />Mobile Wallet (MiniTix)(2006)<br />Mobile Cash Management(2008)<br />Mobile BankingTrials (2010)<br />BPR Mobile Banking(launched Sept. 2010)<br />NMB mobile300.000+ customers(launched mid-2009)<br />SMS Alerts 220.000 customers<br />(launched 2008)<br />ZanacoXapit Instant Banking(launched 2008)<br />FNB Mobile & Fast Account(launched mid-2010)<br />
  32. 32. Zambia : ZanacoXapit Instant Banking<br /><ul><li>Launched in late 2008, USSD II mobile banking & ATM card
  33. 33. Highly-successful “sub-branded” operations help Zanaco change it’s image, sign-up for an account in 5 minutes.
  34. 34. 130.000 active customers to-date
  35. 35. 20+ bill payment partners, prepaid airtime, etc.
  36. 36. AIN, MTN & CellZ</li></ul>Some Partner Bank Examples<br />*444#<br />Rwanda : BPR Mobile Banking <br /><ul><li>Launched 16 September 2010 nation-wide
  37. 37. USSD II mobile banking & SMS Alerts
  38. 38. MTN & Tigo (90%+ mobile penetration)</li></ul>*150#<br />
  39. 39. … later in 2010<br />Some Partner Bank Examples<br />Tanzania : NMB mobile<br /><ul><li>Launched in August 2009
  40. 40. 300.000+ active customers to-date, hugely successful and profitable, break-even: 8 months
  41. 41. Prepaid airtime, bill payment, prepaid electricity
  42. 42. Vodacom, Zain, Tigo, Zantel (99% mobile penetration)
  43. 43. SMS Alerts to 220.000 customers monthly</li></ul>*155*66#<br />Malawi : FNB Mobile / FNB Fast Account<br /><ul><li>Launched summer of 2010
  44. 44. Successful to-date – packaging of ATM card, bank account and mobile banking functionality
  45. 45. Includes immediate (small) balance on customers’ account , facilitating usage of the new product</li></li></ul><li>NMB: National Microfinance Bank Ltd. (Tanzania)<br />1,8 mln customers (500k increase with the launch of mobile banking/payments)<br />Consumer and small-business focused<br />Dedicated to providing sustainable, viable access and direct financial services.<br />Proud of our history of support for Tanzanians of all income levels, government and businesses.<br />Close By<br />Extensive (largest) network with 145 branch locations and 300+ ATMs nation-wide.<br />Branch network designed to cover minimally 80% of Tanzanian districts.<br />Empowering Entrepreneurs<br />Paying special attention to micro, small/medium-sized and rural business.<br />Tanzanian agriculture is close to NMB’s heart (KILIMO KWANZA) and they play a roll in all parts of the supply chain.<br />Rabobank : 40% shareholder<br />Case Study: NMB mobile<br />
  46. 46.
  47. 47.
  48. 48. Easy-to-use NMB mobile banking and payments for all NMB customers (USSD)<br />Features the most desired consumer applications:<br />Balance Inquiry<br />Mini-Statement<br />Money transfers to any NMB account<br />TanescoLuku Prepaid Electricity Purchase<br />Vodacom and ZAIN Prepaid Airtime Top-Up<br />NMB Services like ATM card block, settings<br />Works with NMB Personal Account, TPDF Account, Student Account, Wisdom Account<br />Simply dial *155*66# to access<br />No need to fill-in forms or visit an NMB branch to sign-up, simply dial *155*66*123#<br />NMB mobile<br />NMB mobile<br />1. Balance Enquiry <br />2. Mini-Statement<br />3. Money Transfer<br />4. Prepaid Services<br />5. Other Services<br />6. Help <br />
  49. 49. Example: Mobile Banking Menu (USSD)<br />Your NMB account balance is: TSH 000,000.00Enter “9” to return to the main menu.<br />NMB mobile<br />Balance Enquiry <br />Mini-Statement<br />Money Transfer<br />Bills & Payments<br />Purchase Airtime<br />Bank Services<br />Help <br />*155*66#<br />NMB mobile<br />Please enter your NMB mobile PIN.<br />NMB mobile<br />1. Balance Enquiry <br />2. Mini-Statement<br />3. Money Transfer<br />4. Bills & Payments <br />5. Purchase Airtime<br />6. Bank Services<br />7. Help <br />Pease enter the recipient account or phone number registered for NMB mobile that you wish to transfer money to:<br />Enter the amount of money to be transferred:<br />Please confirm your money transfer:TSH 000,000will be transferred to <br />Enter “0” to confirm transfer and send.<br />Money transfer successful!TSH 000,000was transferred to <br />NMB mobile Ref. No: 12345678Enter “9” to return to the main menu.<br />
  50. 50.
  51. 51. Example from Western Europe : Rabo Mobiel <br />
  52. 52. Case Study : Rabo Mobiel & Rabobank Mobielbankieren <br />2006 Launch Campaign<br />
  53. 53. Rabobank GSM MVNO & Value-Added Bank Product<br />Great, Core Mobile Telecommunications Product<br />Rabobank Values – trust, security, quality, easy-to-use services, cooperative value<br />Online Self-Care Environment<br />Secure Mobile Banking<br />Commitment to Applications Innovation (Mobile Financial Services)<br />
  54. 54. Rabo Mobiel in the Marketplace<br />
  55. 55. Rabo Mobiel in the Marketplace<br />
  56. 56. 1.Rabobank GSM MVNO<br />Telecommunications Services<br />Mobile Internet Access<br />Mobile Content, Information & Media<br />Portals and Self-Care<br />2.<br />Value-Added Bank Product<br />Banking “On the Go”<br />Premium Product / Combination<br />Communications Channel for Local Banks, Members and Customers<br />3.Mobile Incubator<br />Product/Business Development for Mobile Financial Services and Products<br />Launch of Remote and Contactless Payments and Partnerships<br />4.Mobile Knowledge Centre<br />NFC, Consumer Behaviour & UsabilityEncryption, Mobile Business Rules<br />Mobile Low-Value Payments<br />Standards, Retail/Consumer Acceptance, Security, Sustainability<br />Rationale for Rabo Mobiel <br />
  57. 57. Rabobank Mobile Banking<br />Balance checking and Alerts = “killer apps” Transfers still mostly occur via Internet<br /> Mobielbankieren enables transfers to known parties and payments up to €50.000 with Random Reader (100.000+ active users)<br />SaldoDirekt provides 1-click account balances on all your accounts<br />Rabofoon telephone banking (IVR)<br /> SMS Alerts for banking, transfers, payments, telco spending alerts <br />Mijn Mobiel telecommunications spending alerts, history and invoices <br /> Rabo Financial Services Portal with financial services info., current stocks and financial news<br />WAP<br />iPhone<br />Android<br />WM<br />WAP<br />IVR<br />SMS<br />SMS<br />WAP<br />WAP<br />WEB<br />WAPlaunched in 2003<br />
  58. 58. Rabobank Mobile Banking Applications<br />Samsung Jét<br />… Windows Mobile also<br />iPhone<br />Android<br />
  59. 59. Rabobank Mobielbankieren : Usage 2010<br />HUGE growth in mobilebankieren with the launch of “Apps” tov. WAP-based mobilebankieren<br />2006-2009 level<br />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.<br />
  60. 60. Some Other Rabobank iPhone Applications<br />Rabo Sport<br />Rabo Hockey<br />
  61. 61. SMS Betalen iPhone application v.1 <br />
  62. 62. Rabobank Remote Payments Projects<br />SMS Betalen: Launch of P2Ppayments directly to/from MSISDNs, J2ME midlets, iPhone application, online website, MiniTix Merchants (2008)<br />MiniTix Online (2004-06), MiniTix SMS (2007), SMS Betalen(2008), MiniTix NFC (2008-09)<br />Customer bank account<br />WAP<br />iPhone<br />WM<br />SMS<br />WEB<br />J2ME<br />NFC<br />
  63. 63. Rabobank Remote Payments Projects<br />Mobile Terrace Payments: MyOrder at various locations (2008-09)<br />Albert Heijn To-Go NFC Shopping: Amsterdam Amstel (2008-09)<br />J2ME<br />iPhone<br />NFC <br />J2ME<br />Bluetooth<br />Mobile Health: StichtingDiabeter, Health Agency, Achmea (2008-09)<br />MiniTix Mobile Merchants: SMS Betalen Java (2008-09)<br />Mobile Parking: Park-Line (2007)Rekeningrijden: with Rabobank (2008-09)<br />iPhone<br />J2ME<br />WM<br />SMS<br />
  64. 64. Rabobank Proximity Payments Projects<br />NFC Mobile Ticketing: DiergaardeBlijdoorp (2008-09)NFC Fietsenstalling: Eindhoven, Tilburg (2008-09)<br />NFC Cashless Schools: kassa’s and vending, ASH, HHS/Redbird (2007-09)NFC Cantina Trials & Roll-Out: Carian/MiniTix (2008-09)<br />RabobankRotterdam<br />NFC <br />NFC <br />WEB<br />NFC Vending Trials: Coca-Cola, FEBO (2007-08)<br />NFC Mobile Domestic Debit Card and Shopping Tool: C1000 (2007-08)<br />J2ME<br />J2ME<br />WEB<br />NFC <br />NFC <br />
  65. 65. Proximity Payments<br />
  66. 66. A view of the evolution of bank cards through EMV and beyond. “proximity payments” being seen as “card present” transactions.<br />Most contactless EMV products launched to-date target LVP.<br />A view of payment token evolution<br />NFC Loyalty & Membership<br />Shopping & SmartPosters<br />Proprietary Bank Cards<br />Contactless EMV Cards<br />Non-EMV Cards<br />EMV Cards<br />NFC Mobile Phones with EMV Card Emulation<br />NFC Ticketing & Coupons<br />NFC Public Transport<br />Other, P2P, Payment, etc.<br />
  67. 67. The broader NL NFC application landscape<br />Some thoughts .. <br />Vending<br />NFC delivers interaction in the physical world, therefore card-emulation is a key focus.<br />DebitCards<br />In-Store Formulas<br />AccessControl<br />Credit Cards<br />Smart Posters<br />However, mobile apps & device connectivity deliver true differentiation over cards.<br />PublicTransport<br />SchoolsCantinas<br />Parking<br />Ticketing<br />Loyalty &Discount<br />Success comes via attention to customer requirements not technology-push.<br />OtherPayment<br />Couponing<br />Membership<br />NFC P2PInteractivity<br />
  68. 68. Some examples world-wide of mobile NFC<br />= proposed for, or existing commercial roll-outs<br />Italy<br />France<br />USA<br />Netherlands<br />Norway<br />Czech Republic<br />Slovenia<br />France<br />Canada<br />United Kingdom<br />Georgia<br />South Korea<br />Japan<br />Netherlands<br />Netherlands<br />France<br />Poland<br />Switzerland<br />Spain<br />Guatemala<br />Spain<br />Turkey<br />Taiwan<br />Thailand<br />Singapore<br />Indonesia<br />Australia<br />Japan<br />Taiwan<br />Italy<br />Romania<br />Malaysia<br />
  69. 69. NFC SWP Handsets<br />NFC SWP UICC<br />NFC Mobile Payment Applications<br />NFC Mobile Wallet Applications<br />TSM Role<br />Bank/SP Management, New Banks/SPs<br />Life-Cycle & Memory Management<br />OTA Capability & MNO Interface Management<br />Certification & Compliance<br />NFC POS, Other NFC Readers for NFC VAS<br />NFC Customer Experience<br />Other Value-Added NFC Handset Applications<br />NFC POS Formulas & Combinations<br />Brand & Marketing, Launch & Continuing Campaigns<br />Elements of the mobile NFC ecosystem<br />TSM Role<br />
  70. 70. So many apps ... how to eliminate point-to-point chaos?<br />MNO<br />MNO<br />MNO<br />
  71. 71. The “Trusted Services Manager” Role<br />MNO<br />MNO<br />MNO<br />“Please ensure that APPLICATION X gets to USER Y on MNO Z.”<br />“Trusted Services Manager” Role<br />“Make sure that when there are changes of any sort required, that can be managed securely and easily.”<br />
  72. 72. Six-Company Cooperation for Proximity Payments in NL<br />
  73. 73. Thank You!<br />Dan Armstrong<br />Takashi Mobile | Financial Services<br />Rapenburgerplein 81<br />1011 VJ Amsterdam<br />The Netherlands<br />www.takashimobile.com<br />dan.armstrong@takashimobile.com<br />+31 652 085 071<br />

Editor's Notes

  • Some examples of what Rabo Mobiel looked/looks like.
  • Some examples of what Rabo Mobiel looked/looks like.
  • MiniTix online (2004-06)one-click paymentssimple authenticationpayments to €150automatic upload, customer sets all alerts, settings, etc.connection with current bank accountworks with all Dutch bank accountsMiniTix SMS (Aug 2007)Rabo SMS Betalen (P2P) (Jun 2008)Rabo SMS Betalen mobile application (Jun 2008)MiniTix NFC (2008-09)NFC cards, NFC mobile phonesBeing rolled out in schools, theatres, parking, bicycle storage, vendingSMS Betalenwasdesignedfor P2P and merchants payments – directly to your mobile numberBank-independent and operator-independent payments for small and medium-sized transactions, based on MiniTixAutomatic top-up, transferring money back to personal bank accountDownloadable SMS Betelan Java Application for easy balance and transfer checks, sending money to friends, and a mobile shop that enables merchant content
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