The convergence of Banking and telecommunications

Rabobank / Rabo Mobiel

Chrisjan de Weerd, Rabo Mobiel B.V.

About Rabobank / Rabo Mobiel

Rabobank NL: 3,7 mln internet banking customers, 7

mln customers overall (~50% consumer market share)

1400 local banks NL population: 16,5 mln Strong loyalty, broad national customer

coverage, key segments: consumers and small business

Tradition of innovation AAA rating (Moody's, Standard & Poor's),

top-15 world financial institutionRabo Mobiel Started in summer 2005, market launch in

November 2006 Postpaid/prepaid, ZZP, all customer

segments, regions. 2 Roles: MVNO and Mobile Financial

Services Incubator

NL Mobile Marketplace (2009) – many choices

Telecombination

Rabo Mobiel in the Marketplace

What do you get with Rabo Mobiel?

Great Mobile Telecommunications Product – top-quality services, bundles or bundle-free, unlimited internet, competitive tariffs, SMS packages, MKB offers

Core Rabobank Values - trust, security, quality, easy-to-use services, cooperative value

Online Self-Care Environment Commitment to innovation - core asset for differentiation is Mobile Financial

Services Independent company - for speed, innovation, customer experience trials Secure mobile banking

What does Rabo Mobiel mean for the Rabobank?

1. Strategic BankProduct & Channel

2. MobileBanking

3. MobilePayments

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)

2008 – NFC Payments Roll-Out

2008 – SMS Betalen Launched

2005 – Rabo tv

2007 – Rabo Schoolbank NFC Cashless Schools

Mobile as Remote Control for your Financial Life

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 (Dec)

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 Parkeren in 19 NL cities

new mobiel fietsenstalling

programme, Q1 2009

Rabo Mobiel portal

Mobielbankieren

SMS

SMSWAP

WAP

WAP

IVR

WAPWEB

SMSIVR

Successful trial of contactless PIN (NL direct debit) from Aug 2007- Feb 2008 Payment with mobile phone (Samsung x700); storage of value of recycled materials on the

phone – save your money, spend it or donate it. Proven consumer acceptance/trust a mobile as secure debit card replacement. Though handset were given for free, what if the consumer had to pay Euro 150??

NFC Trial and C1000 - “Pinnen met je mobiel”, etc.

NFC Entrance

NFC ticketing programme kicked-off with partners WheretoCard and Yoonison in February 2008

When ordering, customers can use their NFC handset in place of a paper (barcode) or NFC ticket

Smart-postering NFC tags provide extra information while visiting the zoo Rotterdam

MiniTix 2008

MiniTix (available since 2004-06)• One-click payments• Simple authentication• Payments to €150• System for basically Low Value

Payments (LPV)• Automatic upload, customer sets

all alerts, settings, etc.• Connection with current bank

account• Works with all Dutch bank

accounts and all Mobile Operators

Customer bank account

Coca-Cola and FEBO NFC Vending Trials

Proof-of-concept programme for NFC payment for soft drinks using MiniTix

Partners: Capgemini, Coca-Cola, Rabo Mobiel, Yoonison, MiniTix

Running from April 2007 – April 2008, 30 locations nation-wide

Proof-of-concept ‘Kroketje uit de muur’ met je telefoon, Oct-Nov 2007 Capgemini, FEBO and Mertens Group

MiniTix NFC trial in Amsterdam (NFC mobile phones, cards)

Proof-of-concept programme to explore cash management, saves coin traffic, fraud management

Cashless Schools

2007-08 trial programme for cashless schools with various schools and partners: highly successful

Roll-out to 1.500 students, teachers and parents in Sep 2008 (MiniTix NFC cards, Noki1 6131/6212 mobile phones)

Services include NFC payments in the cantina, vending, NFC entrance control and NFC lockers

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 Betalen Java Application for easy balance and transfer checks, sending money to friends, and a mobile shop that enables merchant content

SMS Betalen iPhone application

What are others doing with MiniTix?

MiniTix Conctactless schools, kantina’s, stadiums

Albert Heijn To-Go Mobiel Betalen Trial (MiniTix) IT IS MyOrder Mobile Payments on Terraces – Groningen (MiniTix)

Online Payment Partners and Service Providers (MiniTix)SMS Betalen Java Shop Development (MiniTix)

What are others doing with MiniTix?

MiniTix Conctactless schools, kantina’s, stadiums

Canon Koppeling met MiniTix IT IS MyOrder Mobile Payments on Bioscoopkaartjes – Groningen (MiniTix)

Online Payment Partners and Service Providers (MiniTix)SMS Betalen Java Shop Development (MiniTix)

NFC Sticker

Customer bank account

NFC Telefoon Rabo Mobiel

NFC Sleutelhanger

NFC Kassa

PIN Terminal t.b.v. MiniTix aanmakem en opladen

NFC Pas

Cashless Omgevingen, Carian en SMS betalen

Scholen

Sportkantines

Rabo Mobiel NFC Product Rollout Strategy

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:

banking mobile

publictransport retail

loyalty

ticketing

STAND-ALONE

FULLY-INTEGRATED

TRIALFULL

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.

2009-10INTEGRATION WITH

PRODUCTS AND PARTNERSHIPS

2009-10INTEGRATION WITH

PRODUCTS AND PARTNERSHIPS

2010-12FULL NFC PRODUCTS +

COMPLETEINTEGRATION WITH

PARTNERS

2010-12FULL NFC PRODUCTS +

COMPLETEINTEGRATION WITH

PARTNERS

2007-09TRIALS / FIRST PRODUCTS

2007-09TRIALS / FIRST PRODUCTS

2009-10PRODUCT ROLL-OUT

OPPORTUNITIES, EMERGING STANDARDS,

CONSUMER SUCCESS

2009-10PRODUCT ROLL-OUT

OPPORTUNITIES, EMERGING STANDARDS,

CONSUMER SUCCESS

Warning:Credit Crisis

we are a bank...

NFC Handsets

GMSA statement in 11/2008 @ GSM World Asia on NFC and SWP means a lot. Why was there no serious industry reaction to it?

3GSM in Barcelona in 03/2009 means a lot. NFC was basically invisible and not on any handset manufacturer’s roadmap

Nokia’s announcements @ WIMA in 04/2009 mean a lot. But the 6218 is one handset, but we need 30-40 handset models minimum to start momentum in GSM. What’s the story with the models, other manufacturers?

Nice one : “I want to be clear about this, mobile operators will not buy mobile phones that banks specify. They will buy mobile phones that they specify.” (GSMA member @ GSM World Asia, 11/2008)

For service providers taking NFC seriously, GSM has both benefits and drawbacks.

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…

OfficeEntrance

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…

RaboSchoolbank

PublicTransport

DebitCard

SportPass

Loyalty

Credit Cards

Member-ship

TSM Key Management

TSM Key Management

TSM Key Management

OTATSM Key Management OTA

The “Trusted Service Manager” ?

TSM Key Management

TSM Key Management

TSM OTA

TSM OTA

TSM Key Management

TSM OTA

Service Provider

Service Provider

Service Provider

Service Provider

Service Provider

Service Provider

Service Provider

Service ProviderPIN

MNO

MNO

MNO

Mobile Transactions in the Future?

1. USABILITY? - cross-platform - NFC behaviour2. SECURE TRANSATION KEYS?3. HARDWARE SECURE ELEMENT? - UICC (SIM card) - hardware - removable memory card4. SEPA

NL Menu

PIN

Menu BackInfo

Thank you!

Chrisjan de WeerdRabo Mobiel B.V.

Oosterdok 21011 VX AmsterdamThe Netherlandschrisjan.deweerd@rabomobiel.nl

http://www.rabomobiel.nl/innovatieshttp://www.youtube.com/RaboMobielNFC