1. Rabo Mobiel is the mobile virtual network operator of Rabobank, which serves over 7 million customers in the Netherlands. 2. Rabo Mobiel launched in 2005 and provides mobile banking and payment services beyond traditional voice and text, including NFC trials for transit ticketing and vending payments. 3. Rabo Mobiel sees mobile as an opportunity to move customers to the center of the payments ecosystem through a connected device that consolidates cards, payments and identity in one place.

1. Rabo Mobiel The Bank in Your Pocket Dan Armstrong Rabo Development Pan-African Conference Lusaka, Zambia, 30 November – 01 December 2009

2. About Rabobank / Rabo Mobiel Rabobank NL: 3,7 mln internet banking customers, 7 mln customers overall 180 local banks and 1400 locations NL population: 16,5 mln Strong loyalty, broad national customer coverage, key segments: consumers and small business Tradition of innovation Rabo Mobiel Started in mid-2005, market launch in Nov 2006 Postpaid/prepaid, ZZP, all customer segments, regions. 2 Roles: MVNO and Mobile Financial Services Incubator

3. Rabobank and the NL Banking Landscape Mortgages (1) 27% Savings Accounts (1) 41% Loans (1) 22% Insurance (1) 13% Payments (2) 30% Investment (2) 16% Marktpositie als huisbankier 2008 Rabobank has the highest trust rating of all NL banks with 42%; #2 is 17% AAA rating (Moody's, Standard & Poor's), top-15 world financial institution Year-on-year, Rabobank ranks with the best bank website, customer service centre, CRM implementation, marketing and sponsorship programmes With such strong performance, was starting Rabo Mobiel a risky proposition?

4. NL Mobile Marketplace (2009) – MNOs

5. NL Mobile Marketplace (2009) – MNO Brands

6. NL Mobile Marketplace (2009) – many choices Telecombination

7. Breakdown of Different Types of NL Mobile Players Mobile Operators & Branded Offers Full Consumer-Facing MVNOs B2B MNVEs Service Providers/ Resellers ESPs (via MVNEs) ESPs (independent) Telecombination acquired in 2008

8. A Few MVNO Models Telephony Cheap (SIM only, large bundles, no-frills, VoIP) Target segments (youth, minorities, cheap international destinations) Cheap roaming (multi-IMSI, international players) Leverage point-of-sales locations or distribution Existing telecommunications retailers Strong retailers in other branches Alternate distribution channels Leverage powerful brand Reinforce core business in other areas M2M/network utilisation

9. Rabobank GSM MVNO & Value-Added Bank Product Great, Core Mobile Telecommunications Product Rabobank Values – trust, security, quality, easy-to-use services, cooperative value Online Self-Care Environment Secure Mobile Banking Commitment to Applications Innovation (Mobile Financial Services)

11. Rabo Mobiel in the Marketplace

12. Rabo Mobiel in the Marketplace

13. Rabo Mobiel and Local Rabobank Partners

14. Rabobank GSM MVNO - Telecommunications Services (voice, SMS, VAS, Prepaid/Postpaid, MKB) - Mobile Internet Access (GPRS, UMTS, HSDPA), Portals and Self-Care Value-Added Bank Product - Banking “On the Go” Premium Product / Combination Communications Channel for Local Banks, Leden and Customers Mobile Incubator - Product/Business Development for Mobile Financial Services and Products - Launch of Remote and Contactless Payments and Partnerships Mobile Knowledge Centre - NFC, Consumer Behaviour & Usability - Encryption, Mobile Business Rules - Mobile Low-Value Payments - Standards, Retail/Consumer Acceptance, Security, Sustainability

15. Rabo Mobiel High-Level ESP Architecture Core ESP business maintained in-house , e.g. billing, customer management and support, sales and marketing. Telco with MNO , which provides telco services, switching, core, transmission and radio network, some VAS. Close Rabobank partnership and cooperation with local banks, but Rabo Mobiel is an independent company - for speed, innovation, customer experience trials LOGISTICS DELIVERY RETURNED GOODS REPAIRS CUSTOMER SERVICE BACK-OFFICE IN-BOUND HELPDESK NUMBER PORTABILITY LAWFUL INTERCEPTION CONTENT PARTNERS INFRASTRUCTURE OTA, WAP, VAS PARTNERS SYSTEMS SUPPORT IT SUPPORT MNO

16. Rabo Mobiel Milestones Date Milestone August 2005 Begin feasibility phase, market survey, business planning ( MVNO ) Jan 2006 Rabobank gives “green light” for Rabo Mobiel build ( MVNO ) May 2006 Company begins official operation ( MVNO ) Nov 2006 Nation-wide launch of Postpaid services ( MVNO ) Mar 2007 Launch of segment propositions and packages ( MVNO ) May 2007 Launch of NFC payment vending trials (Coca-Cola, FEBO) ( MFS ) Jun 2007 Nation-wide launch of Prepaid services, retail operations ( MVNO ) Dec 2007 Sales growth, pilot group (30) local banks actively selling ( MVNO ) Jan 2007 Completed successful C1000 mobile payments trial (debit) ( MFS ) Feb 2008 First NFC ticketing roll-out (Diergaarde Blijdoorp) ( MFS ) Apr 2008 Transition from Orange network to KPN network, > 100k active clients ( MVNO ) May 2008 Launch Postpaid services in retail ( MVNO ) Jun 2008 Nation-wide launch of Rabo SMS Betalen (P2P payments), AH To-Go Shopping Trial ( MFS ) Jul 2008 120 local banks actively selling ( MVNO ) Dec 2008 >180.000 customers milestone ( MVNO )

17. Rabobank Banking & Payment Innovation 1980 1990 2000 2010 1981 – First ATM in NL 1986 – Pin Retail PoS 1989 – Telebanking 1994 – 1st web portal www.tref.nl 1995 – “Rabofoon” IVR Banking 1996 – Internetbankieren launched 1999 – 1st bank WAP site launched (mmm.rabobank.nl) 2003 – Mobielbankieren on i-Mode 2004 – Mobielbankieren launched on Vodafone Live!, Orangeworld, T-zones 2004 – MiniTix Online Launched 2007 – MiniTix SMS 2006 – Open Mobile Internet (OMI) programme launched 2006 – Rabo Mobile launched (world’s first bank MVNO) 2007 – Rabobank / Rabo Mobiel NFC Trials Kick-Off 2008 – Mobielbankieren up to €50k (RR) 2009 – NFC Payments Roll-Out 2008 – SMS Betalen Launched 2005 – Rabo tv 2007 – Rabo Schoolbank NFC Cashless Schools 2006 2007 2008 Postpaid Launch Launch of Segment Packages NFC Trials: Coca-Cola, FEBO Prepaid Launch C1000 NFC Trial 30 Banks Online Diergarde Blijdorp NFC Ticketing Retail Launch Postpaid Retail Launch Orange -> KPN 180k + customers 100k + customers 120 Banks Online SMS Betalen Launch AH To-Go Trial MyOrder Terrace Betalen MIB 6.0 (OMI) MIB 4.1 (RR) Senioren Youth MKB/ZZP Rabo Mobiel B.V.

18. A few trials and products 2007-2009 1 2 3 4 5 6 7 8 9 10 12 11 13

19. Rabobank Mobile Banking Mobielbankieren enables transfers to known parties and payments up to €50.000 with Random Reader Saldo Direkt provides 1-click account balances on all your accounts Rabofoon telephone banking (IVR) SMS Alerts for banking, transfers, payments, telco spending alerts Mijn Mobiel telecommunications spending alerts, history and invoices Rabo Financial Services Portal with financial services info., current stocks and financial news Mobiel Parking in 19 NL cities SMS SMS WAP WAP WAP IVR WAP WEB SMS IVR

20. Mobile Applications Projects MiniTix Online (2004-06), MiniTix SMS (2007), SMS Betalen (2008), MiniTix NFC (2008-09) SMS Betalen : Launch of P2P payments directly to/from MSISDNs, Java midlets, iPhone application, online website, MiniTix Merchants (2008) Customer bank account

21. MiniTix 2008 MiniTix online (2004-06) one-click payments simple authentication payments to €150 automatic upload, customer sets all alerts, settings, etc. connection with current bank account works with all Dutch bank accounts MiniTix SMS (Aug 2007) Rabo SMS Betalen (P2P) (Jun 2008) Rabo SMS Betalen mobile application (Jun 2008) MiniTix NFC (2008-09) NFC cards, NFC mobile phones Being rolled out in schools, theatres, parking, bicycle storage, vending Customer bank account

22. Mobile as Payment Device: SMS Betalen SMS Betalen was designed for P2P and merchants payments – directly to your mobile number Bank-independent and operator-independent payments for small and medium-sized transactions, based on MiniTix Automatic top-up , transferring money back to personal bank account Downloadable SMS Betelan Java Application for easy balance and transfer checks, sending money to friends, and a mobile shop that enables merchant content

23. SMS Betalen iPhone application

24. Mobile Applications Projects NFC Mobile Ticketing: Diergaarde Blijdoorp (2008-09) NFC Fietsenstalling : Eindhoven, Tilburg (2008-09) Rabobank Rotterdam NFC Cashless Schools : kassa’s and vending, ASH, HHS/Redbird (2007-09) NFC Cantina Trials & Roll-Out: Carian/MiniTix (2008-09) NFC Vending Trials: Coca-Cola, FEBO (2007-08) NFC Mobile Domestic Debit Card and Shopping Tool: C1000 (2007-08)

25. Mobile Applications Projects Mobile Health: Stichting Diabeter, Health Agency, Achmea (2008-09) Mobile Terrace Payments: MyOrder at various locations (2008-09) Albert Heijn To-Go NFC Shopping : Amsterdam Amstel (2008-09) MiniTix Mobile Merchants: SMS Betalen Java Midlet (2008-09) Mobile Parking: Park-Line (2007) Rekeningrijden: with Rabobank (2008-09)

26. Rabo Mobiel and NFC Question: What role doe mobile operators or banks want to play in brokering a customers’ identity? Establish a federation model? Include major players in key B2C sectors: Note: All this can’t be only technology-led … consumers must get benefit, receive logistic value and cost savings . 2007-08: STAND-ALONE FULLY-INTEGRATED TRIAL FULL PRODUCT LAUNCH Utilise lessons learned & successes to move into larger collaborations / partnerships. Utilise trials to define the business case for full product roll-outs & partnerships. 2009-10 INTEGRATION WITH PRODUCTS AND PARTNERSHIPS 2010-12 FULL NFC PRODUCTS + COMPLETE INTEGRATION WITH PARTNERS 2009-10 PRODUCT ROLL-OUT OPPORTUNITIES, EMERGING STANDARDS, CONSUMER SUCCESS 2007-09 TRIALS / FIRST PRODUCTS

27. Some Challenges In NL, electronic payments are a mature model. 98% debit card penetration , ubiquitous usage and availability, low cost Do consumers identify the NFC phone as a payment device? Weaknesses in mobile and banking industries applicable . Rabobank’s brand / trust critical to protect . Bank = perception of trust “ Security” is always a balance between high levels of protection and usability . Mobile security will never match secure, tamper-evident devices. Even more financial services online, or via mobile internet Random Reader + Debit Card + knowledge (PIN) Internet Banking Subset of financial services (authorisation) Knowledge (TIN) Mobile Phone (IVR) Subset of financial services (authorisation) Online Authentication (various GSM/IP) + knowledge (TIN) Mobile Phone (browser) Large amount of financial services (includes signing) Offline Token (Random Reader) + Bank Pass + knowledge (PIN) Television and PC All financial services Passport, Driver’s Licence + Bank Pass Physical Person Authorisation Authentication Method Medium

28. Will the current “issuer-centric” world become a “customer-centric” world? Customer needs to go to the bank, request PIN pass, credit cards, changes… Travel to NS for an OV-chipkaart, apply for personalised OV-chipkaart… Pick up loyalty cards at supermarkets and retail locations Different cards, chips for different services… Office Entrance Rabo Mobiel wants to move customers themselves to the centre of the card ecosystem. A connected device, card/ID with a screen and keyboard can help do that… Rabo Schoolbank Public Transport Debit Card Sport Pass Loyalty Credit Cards Member- ship

29. Mobile Transactions in 2012? Transactions Menu PIN Menu Back Info 1. USABILITY? - cross-platform - NFC behaviour 2. SECURE TRANSATION KEYS? 3. HARDWARE SECURE ELEMENT? - UICC (SIM card) - hardware - removable memory card 4. SEPA

30. http://www.rabomobiel.nl/innovaties http://www.youtube.com/RaboMobielNFC Thank You Dan Armstrong Takashi Mobile [email_address] +31 652 085 071