The document presents an overview of mobile banking and payments developments within Rabobank, highlighting case studies from various countries. It discusses the evolution of mobile banking technologies, successful implementations, and the challenges faced in developing full-service banking solutions. Additionally, it emphasizes the importance of usability, customer engagement, and effective product management strategies in enhancing mobile banking services.

1. Mobile Banking is MainstreamRabo Development : Case Studies in Mobile Banking & Payments DevelopmentA brief presentation on mobile banking and payments developments within Rabo Development (Rabobank International); as well as some case studies of how Rabobank uses lessons learned in developing countries.Dan Armstrong02 December 2010

3. Landscape of Mobile Banking and PaymentsRabobank, ABN AMRO, ING, SNS, etc.1990-1999, continues …2002, continues … (quite popular)IVR Banking & PaymentsSMS Account Activity AlertsMulti-ChannelBalance-CheckingOthers …Full-Service Mobile BankingRemote Payments and Electronic WalletsMobile Contactless Payments (NFC)JavaWAPSTKUSSDiPhoneWindows Mobile 6.5/7Samsung JET, BadaAndroidEtc.VISA MobileAndroid( ?)Note: not exhaustive, there are other technologies used in the world, but these are the major ones.

4. Landscape of Mobile Banking and Payments : DetailCan be ok, but a subset of Full-Service Banking?LegacySMS Account Activity AlertsIVR Banking & PaymentsSMS Account Activity AlertsMulti-ChannelBalance-CheckingSecurity: PIN-based, CLI can be used (but not reliably)

5. Easy-to-use, menu-driven navigation

6. Works on every phone

7. Cumbersome

8. Bank-pushed method; normally offered for free to customers

9. Simple to understand (can be)

10. Works on every phone

11. Can be applied to many products (accounts, loans, offers, discounts, etc.)

12. No transactions or advanced features

13. Customer-pulled method

14. Simple to understand (can be)

15. Can be applied to many account types

16. Can be done via SMS, WAP, USSD or apps

17. Is a “killer app” in many regions, including Western Europe

18. Somewhat limited in scopeMobile Operators,Transport,Modern Banks … ?Future?Full-Service Mobile BankingFull-Service Mobile BankingRemote Payments and Electronic WalletsMobile Contactless Payments (NFC)Can be easy-to-use

19. Full-service = transactions, inquiries, actions, information

20. Saves trip to the ATM or bank, supports virtual channels, saves direct bank costs

21. Can be made to work on many phones, but app-based functionalities require specific phone strategy, development, costs

22. More complicated to launch and maintain, but allows for transaction charges

23. Except for mobile network operator distribution networks (M-PESA, MTN Mobile Money, ZAIN ZAP, Tigo Cash), bank wallets have enjoyed limited success world-wide

24. Some successes: Apple iTunes Store, PayPal, some Japanese products, public transportation.

25. Likely a step too far for developing (and developed?) banks, customers can directly access their bank account!

26. Card-emulation products in trial since 2004

27. Lack of mobile network operator business case (and they normally buy wholesale phones)

28. Difficulty in making a business case for a contactless phone vs. contactless cards.

29. Handset availability - there are no phones!SIM Tool Kit  Apps V1  Apps V2  USSD  WAP  etc.

30. Remote payments can take on different forms …Complicated landscape currently surrounding “remote payments”, as differentiated from “proximity payments”Online versions: Paypal, iDEAL, credit card, Facebook Payments, internet banking, etc.In the future, is the mobile phone simply a small internet device? However, different ..Security (authentication) issuesUser-experience issues Trust issues2010 seems to be a “hybrid year” ..Old mobile payment models going away (SMS, WAP, OTP-only models)Clear trend towards mobile applicationsIncreased usability of mobile banking, mobile payments, in-application payments and e-valueHowever, standards? 3-corner model vs. 4-corner model clearly an issue ..VISA Mobile

31. Some examples of mobile remote payments “successes”? ???????????????What are the business goals for enablement of the iTunes store ecosystem?

32. Profitability for apps?

33. In-app payments?

34. Proximity payments???

35. Hardware sales, lock-in?

36. M-PESA (Kenya) a huge success, but not many other countries have had similar experiences.

37. P2P money transfer first, expansion to payments , savings accounts (MKESHO)

38. However, business goals are churn reduction / loyalty to the SIM card?

39. GCASH (Philippines) leapt from P2P money transfer for retail payments quickly.