The Convergence of Mobility and Payments




Kahina Van Dyke
Kahina.vandyke@citi.com
                                     ...
Innovation is at the core of what we do
                     Our growth has been driven by delivering on untapped market n...
Mobile Momentum
Numerous developments are driving momentum for mobile financial solutions
                              Te...
Mobility: What customers want
Customer attitudes vary based on market. Important factors to consider are national
     pay...
Mobility Consumer Trends
         Consumer adoption tipping point on the horizon…




                                    ...
Play Ella Video
Financial Management: On the Go
Online banking has become core offer in established and emerging markets, we
 believe the ...
Payment Disruption Delivers Choice
    Contactless is changing the way customers perceive and use payment devices

   “Car...
Convergence of value will drive adoption
              Convergence requires value criteria are met for all stakeholders
  ...
Cross-Sector Case Study: Transit & Banking
       Leverage of core competencies create sustainable business models &
     ...
Play A Day in the Life Video
Citi Multi-Channel Strategy: Anywhere, Anytime

We will continue to ensure we deliver world class payment and banking serv...
Thank you, any
  questions?

                 12
Upcoming SlideShare
Loading in …5
×

Mobile Payments Convergence Van Dyke Nokia World Dec 2007

1,638 views

Published on

Presentation on the emerging trends of mobility and the future of consumer payments and banking. Presented in Amsterdam, Innovation Stream, Nokia World 4 Dec 2007

Published in: Economy & Finance, Business
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
1,638
On SlideShare
0
From Embeds
0
Number of Embeds
38
Actions
Shares
0
Downloads
80
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Mobile Payments Convergence Van Dyke Nokia World Dec 2007

  1. 1. The Convergence of Mobility and Payments Kahina Van Dyke Kahina.vandyke@citi.com 0 Nokia World 04 December 2007
  2. 2. Innovation is at the core of what we do Our growth has been driven by delivering on untapped market needs Citi Highlights 1812 City Bank opens for business to serve group of New York merchants. 1894 Becomes the largest bank in the U.S. 1897 First major U.S. bank with foreign department; begins FX trading. 1904 Lead bank for construction of the Panama Canal 1913 First contributor to the Federal Reserve Bank of New York. 1914 Becomes 1st American international bank, with the largest overseas branch network. 1921 Extending credit to consumers for the first time 1928 First major American bank to offer unsecured personal loans to its depositors. 1929 Becomes the largest commercial bank in the world. 1936 First NYC bank to offer consumer checking accounts with no minimum-balance. 1939 100 offices in 23 countries outside U.S., forming the largest international bank. 1950 Diners Club card – first multi-use charge card 1961 Invents the negotiable certificate of deposit (CD) 1977 Citibank launches Citicard Banking Centers, anchored by ATMs and the CitiCard. The 24-hour ATMs are for the first time used for more than emergency cash. 1979 Becomes the world's leading foreign exchange dealer. 1985 Direct Access® in New York links PCs in homes and offices with Citibank. 1986 Introduces touch-screen ATMs in New York City and Hong Kong. 1989 Becomes the leading issuer of securitized credit card receivables. 1992 Citibank, N.A. becomes the largest bank in the United States. Citicorp's global reach links branches and offices in more than 90 countries. 1993 Becomes world’s largest credit card and charge card issuer and services. 1994 Opens 1st fully foreign owned commercial bank in Russia. 1995 Opens 1st full service China branch in 45 years+ Vietnam and South Africa. 1996 Has most credit cards in Asia. 1998 All Citicorp and Travelers Group divisions merge to Citigroup Inc. 2000 Creates innovation and eBusiness group in CitiCard 2002 Citi introduces Virtual Account Numbers as a core available feature on all US cards, International rollout of banking Alerts via AMA 2003 Citi Identify theft solutions, 10MM+ Online Banking Users in the US 2006 Citi introduces PayPass New York Metro Contactless, Singapore SMRT 2007 Citi introduces 1st Mobile Banking Applicant and dedicated telecom unit 1
  3. 3. Mobile Momentum Numerous developments are driving momentum for mobile financial solutions Technology and Infrastructure o Contactless acceptance infrastructure o 3G and NFC-enabled handsets Cross-industry partnerships and pilots o Banks and wireless service stakeholders collaborating in NFC and Peer to Peer payment pilots o Banks and transit systems launching new form factor and payment schemes in major global cities Customer exposure to new payment methods o Contactless “revolution” has made customers think differently about their traditional “debit or credit” card as the primary access to their funds o Transit launches have introduced million of urban commuters to “Tap & Go” behavior 2
  4. 4. Mobility: What customers want Customer attitudes vary based on market. Important factors to consider are national payment systems, online banking adoption & technology infrastructure 5:1 consumers 90% prefer mobile payments to of those interested would pay more for a device with appear on card payment capability statement, rather than wireless bill 64% 58% of consumers of consumers 57% 18-42 would consider 18-42 would switching carriers consider are interested in switching banks mobile payments 3 Source: Fabrizio, McLaughlin & Associates, March 2007
  5. 5. Mobility Consumer Trends Consumer adoption tipping point on the horizon… 4
  6. 6. Play Ella Video
  7. 7. Financial Management: On the Go Online banking has become core offer in established and emerging markets, we believe the same / enhanced services will be expected on the mobile device Account Management Integrated user interface Coupons Delivery of discounts Alerts/Notifications Customer set parameters Two-Factor Authentication Real time authentication for online purchases 6 6
  8. 8. Payment Disruption Delivers Choice Contactless is changing the way customers perceive and use payment devices “Card in Wallet” “Bring my Account “This IS my wallet” and Anywhere” “Manage my Finances Anywhere” Market Disruption Behavior Disruption & Convergence Value Expansion Wallet <=> Phone Customer Learns Tap & Go No longer requires bricks or clicks. Traditional Card Form RFID / NFC creates new form Suite or core banking products factors to payments (I.e. debit, credit, ID cards, transit) In the palm of the customer RFID Cards Alternate Form RFID NFC Mobile Key Tag Citi, NYC Various Co-Brand RFID RFID Watch Cards Istanbul, Turkey 6210 NFC Phone Citi, NYC RFID Notes: 1) Contactless payment uses ‘RFID’ radio chip to communicate wirelessly with close-proximity merchant terminal, 2) Ticket sizes are 7 limited at present to £10/$25/€15, 3) Visa/ MasterCard agreed global standard communications protocol. Amex equivalent is ‘express pay’
  9. 9. Convergence of value will drive adoption Convergence requires value criteria are met for all stakeholders Customer Ease of Use: Intuitive User Interface Yet feels like a “Bank / Payment” experience More convenient: No need to carry cash Financial overview at their fingertips Freedom from PC or ATM Dependency Partner: Telco Retailer / Merchant Service Enhancer Cash management costs reduced Competitive Differentiator Higher ticket value than cash Deeper Customer Engagement Increase in foot traffic and customer Explore new business model opportunity throughput Bank Deeper engagement Channel Extension 8 Competitive Differentiation
  10. 10. Cross-Sector Case Study: Transit & Banking Leverage of core competencies create sustainable business models & richer customer value Consumer Facing Business to Business Transit Urban Distribution Financing Processing Payments Payments Use Citi products Co-locate Citi Payment Pay for rides with Finance transit for all daily branches and processing for Citi products infrastructure purchases ATM in stations transit operators Citibank: Live “Contactless” Pilots with Transit Partners Washington, DC Metro New York Metro Singapore Metro 9
  11. 11. Play A Day in the Life Video
  12. 12. Citi Multi-Channel Strategy: Anywhere, Anytime We will continue to ensure we deliver world class payment and banking services to our customers that fit their changing needs - across all channels, anywhere, anytime Citi View: Leverage technology to provide strategic advantage and market leading value to our customers  Continue pilots in key markets to understand customer behaviour shifts - before they happen  Leverage our ‘innovation’ experience and global technology platforms to leap frog local competition  Deliver same safety and fraud protection on mobile channel as we deliver on all other channels  Explore segments in un-/under banked in emerging economies, i.e ‘send-home’ payments  Continue collaboration with industry leaders in various sectors (transit, telecommunications, quick  service) - critical to customer education and customer adoption 11
  13. 13. Thank you, any questions? 12

×