EFMA Cards and Payments Congress 9 sept 2009, Paris. Becoming a pioneer of mobile financial services: building a new vision of customer choice. Rabo Mobiel: The bank in your pocket. Presentation by Ruud Olthoff. Contact me for file download.

1. Rabobank
Rabo Mobiel:
the bank in your pocket
Audience: EFMA Cards and Payments, Paris
Author: Ruud Olthoff, Rabobank Netherlands
Contact: r.olthoff@rn.rabobank.nll
Date: 9 september 2009

2. Mobile: a channel too big to ignore
~5+ B
5,000
# touch points
in the world
millions 4,500 3,5 billion active mobiles in the world
4,000
Twice as many as TV’s ~3.5 B
3,500
3 times as many as PC’s
3,000
2,500
2,000 1.5 B
1.4 B
1.3 B
1,500
2008 1B
2013
1,000
300M
500
250K 500K 600K 1M 25M
0
Western Bank Post ATM PoS Broadband PC Landline Credit Television Mobile
Union Branch Office Card
Traditional channels Consumer Technologies
Sources: Financial Services Club, Chris Skinner 2008: CGAP Banking on Mobiles: Why, How, for Whom? Oct 2008, Forrester Research, Internet World Statistics, Bank for International Settlements (BIS)
statistics, http://communities-dominate.blogs.com/
Rabo Mobiel B.V. - 22 November 2007 [ Page 2 ]

3. Mobile eats it all
Music Camera
SMS Radio
Apps
TV
Payments News
Shopping Books
Coupon Games
Navi VoD
Search
Rabo Mobiel B.V. - 22 November 2007 [ Page 3 ]

4. Mobile will become primary medium
….. and the primary internet access
Rabo Mobiel B.V. - 22 November 2007 [ Page 4 ]

5. Mobile banking at the tipping point
Rabo Mobiel B.V. - 22 November 2007 [ Page 5 ]

6. Is mobile banking ready for take off?
 Obstacles for mobile banking (security, ergonomics, high costs)
are disappearing
 Bank customers are increasingly enthusiastic about mobile
banking
 “Mobile banking is under-used by customers and under-
exploited by the banks”
 Most important services:
• Consulting accounts
• Receiving alerts
• Credit transfer
• Making payments
EFMA-study Banks and Mobile Telephones (may 2009)
Rabo Mobiel B.V. - 22 November 2007 [ Page 6 ]

7. How to organise it?
Models for mobile banking and mobile payments :
1. Partnerships between banks and operators
2. The bank becomes an operator
3. Banks without operators
4. Operators without banks (trusted third party)
5. Other players and new entrants (Obopay and PayPal)
EFMA-study Banks and Mobile Telephones (may 2009)
Rabo Mobiel B.V. - 22 November 2007 [ Page 7 ]

8. Rabobank: 1st European MVNO-bank
 Mobile Virtual Network Operator
 Combining banking and gsm services on an existing
operator platform
 In order to promote banking on your mobile and
gain revenues from telecom usage ….
 and be prepared for the future mobile payments
 New company: Rabo Mobiel
 Own billing, sales, marketing, customer
service, product development, logistics
Rabo Mobiel B.V. - 22 November 2007 [ Page 8 ]

9. Rabo Mobiel B.V. - 22 November 2007 [ Page 9 ]

10. What does Rabo Mobiel offer?
 Good Value Operator
• Flat, inexpensive tariffs
• Spend control via mobile
• Transparent handset pricing
 Mobile Banking
• Free subscription to “Rabo
Mobielbankieren”
• Differentiated mobile banking services
• Commitment to innovation
 Mobile Internet
• 1 MB free national mobile internet per
month
• Unlimited national mobile internet for
€10 per month
Rabo Mobiel B.V. - 22 November 2007 [ Page 10 ]

11. Rabo Mobiel combines contact, banking & payments
1. Contact
3. Mobile 2. Mobile
Payments Banking
Rabo Mobiel B.V. - 22 November 2007 [ Page 11 ]

12. Contact through Rabo Mobiel
Mobile handsets pre-installed settings for Rabobank customers
Pre-installed “call your own local bank branch”
Pre-installed service numbers
Online self-care environment with invoices and usage reports
and ….
Rabo Mobiel B.V. - 22 November 2007 [ Page 12 ]

13. Mobile site Investments site Sports TV
R
AEX 230,36
MIDKAP 326,75
1 Nieuws
2 Bankieren
3 Beleggen
4 Rabo Sport
5 Rabobank in de buurt
6 Servicenummers
7 Vernieuwen
8 Valutacalculator
home
Rabo Mobiel B.V. - 22 November 2007 [ Page 13 ]

14. SMS confirmation of banking appointments
to decrease “no shows”
Van:
Rabobank
Datum:
Confirming appointment
09/09/2009
Bericht:
09 – 09 -2009
Dear Mr.
Renkema,
Confirmation:
T.J. Renkema
Tomorrow,
Thursday 10 sept. at
14:00, appointment
with Pieters
Rabo Mobiel B.V. - 22 November 2007 [ Page 14 ]

15. SaldoChecker: two-click account information
Saldoinformatie
29 juli 2008, 13:31 uur
Saldo Betaalrekening *789
€ -134,84
Spaarrekening *476
€ 5.134,84
[1] Mobielbankieren
[2] Instellen
Saldochecker
[8] Vernieuwen
Disclaimer
[0] Rabo Mobiel
home
Rabo Mobiel B.V. - 22 November 2007 [ Page 15 ]

16. Mobile banking with Rabo Mobiel:
SMS Alerts: account information
Van: Van:
Rabobank Rabobank
Datum: Datum:
25/4/2009 25/4/2009
Bericht: Bericht:
Rabo Alerts: Rabo Alerts:
An amount is added You have reached
to your account *045 your lower threshold
called salary. on *045
Your current account is Your current account is
+ 1.545,12 EUR. – 150,12 EUR.
Rabo Mobiel B.V. - 22 November 2007 [ Page 16 ]

17. Rabobank Mobile banking
 Mobile banking / Mobielbankieren
• Simplified internet banking on your mobile
• Doing payments on-the-go
• Your financial situation always at hand
• Grip on calling costs
• Stay informed by your bank
 Current features
• Account information
• Transactions overviews
• Payments with your phone
• Alerts
• Phone bill by mobile and internet
• Calling costs sms
Rabo Mobiel B.V. - 22 November 2007 [ Page 17 ]

18. Payments with Rabo Mobiel: Pilots 4
1
2 3
5
8
6
7
11
12
10
9
13
Rabo Mobiel B.V. - 22 November 2007 [ Page 18 ]

19. Over-the-air payments with SMS betalen (payments)
Van:
SMSbetalen
Datum:
25/4/2009
Naar:
Bericht:
6689
Do you want to pay
1,00 euro to
Bericht:
06-53149958?
0653149958 1 thanks
Check your payment
and confirm by sending
the word KOMAF
within 10 minutes to
Rabo Mobiel B.V. - 22 November 2007 [ Page 19 ]

20. SMS betalen (payments) iPhone app: CashMS
Rabo Mobiel B.V. - 22 November 2007 [ Page 20 ]

21. My order Mobile ordering and payments
Rabo Mobiel B.V. - 22 November 2007 [ Page 21 ]

22. Rabo Mobiel Implementation Strategy
 Stick to core Rabobank values
• Trust, security
• High-quality, easy-to-use, reliable
services
• Great value, inexpensive
• Cooperative bank values
 Mobility can target new
segments
• Lower-value banking customers
• Customers in major cities
• Young people, minorities
 Speed
• Close partnership with the Rabobank
• Independent systems and processes to
gain speed
Rabo Mobiel B.V. - 22 November 2007 [ Page 22 ]

23. Lessons learned
Supply-side barriers can be lowered by integrating banking and operator
services: pre-installation, integrated customer experience, joint innovation
Rabo Mobiel has given Rabobank a first mover advantage and has added to
Rabobank’s innovative image
A separate telecom banking unit:
• adds a revenue stream, but requires investments and a longer term strategic view
• adds speed and in the short term, but later requires integration efforts within the bank
Mobile payments are seen as the “killer app”, but still await a major
breaktrough
Rabo Mobiel B.V. - 22 November 2007 [ Page 23 ]

24. Thanks!
Ruud Olthoff
Rabobank Nederland
r.olthoff@rn. rabobank.nl
+31 6 51 498 178
More material on www.rabomobiel.nl
Rabo Mobiel B.V. - 22 November 2007 [ Page 24 ]