biometrics a story for the future? · risk/benefit ratio for potential fraudsters doesn’t look...
TRANSCRIPT
Benjamin SyrbeAdvisor to the Board of DirectorsEquens
St. Paul, May 14th, 2008
Biometrics – a story for the future?
© Equens
100%100%
Equens Deutschland AG
Equens Nederland B.V.
Equens N.V.
Merger of Transaktionsinstitut
and Interpay
HQ: Utrecht, Netherlands
(Holding)
Locations: Utrecht (Netherlands),
Frankfurt & Stuttgart (Germany), Helsinki
(Finland)
Processing 7.3 bn payments and 2 bn debit- & credit card
transactions annually
Issuing 7m cards annually,
management of 25m
Hosting 225.000 POS terminals and ATMs
Market share Eurozone: > 10%
Turnover (2006): EUR 260 Mio.
Customers (examples): DZ BANK, ABN AMRO,
Citigroup, LBBW, ING, OP Pohjola Group, Rabobank, KBC
Equens – who is that?
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Market developments
Technology
Networked solutions
Any time, any place, anywhere
Reliability and efficiency have become a precondition
Rules and regulations (compliancy)
SEPA standards mandatory in 201x
ISO compliancy
Ten core principles (ECB)
EMV
Playground for new things
NFC-payment solutions rolled out in Far East
Smart phone as generic carrier for various services
Various pilots started or in the pipeline
Biometric payment solutions coming up
‘Everybody is talking
with everybody’
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Send payment from A … … to B
Reliable!
Cheap!
Secure!
Fast!
Payments: a banking customers‘ actual need!
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Concept of biometric payments
On a technical level everything is
simple
For the customer it is just a
virtual card on his fingertip
For the checkout nothing changes –
it is just another payment method
However with a built-in loyalty card
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Our partner – it-werke is the leading provider of biometric payment systems at the POS
Founded 2000
First pilot in Germany 20003
Currently:
150 retailers using the system at
Over 800 checkouts
More than 250.000 people enrolled
90%+ global market share at POS (not including
Pay by touch because of bankruptcy)
Growing at a pace of 2-3 new systems per
week
Well known partners in Germany: Edeka
(retail), Globus (home improvement)
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Advantages and technology of biometric payments systems
Advantages
High speed at checkout
(faster than cash &
cards)
Intensified Loyalty,
Less cash handling,
efficient marketing
Lower transaction cost
Advantageous loyalty
program
Unique selling
proposition
Increased basked size
and more customers
Technology
Fingerprint
One-to-one image
Fingerprint template
Vein recognition (finger)
Palm recognition
Iris scan
Facial recognition
…
© Equens
Speed of acceptance
digiPROOF AcceptanceWagener Baden-Baden / Gruber Erding / Globus St. Wendel
0
500
1000
1500
2000
2500
3000
3500
4000
4500
Nov
05
Dez
05
Jan
06
Feb
06
Mrz
06
Apr
06
Mai
06
Jun
06
Jul
06
Aug
06
Sep
06
Okt
06
Nov
06
Dez
06
Jan
07
Feb
07
Mrz
07
Apr
07
Wagener Gruber Globus St Wendel
Limitations caused by
refurbishing
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Who uses biometric payments?
Age classes digiPROOF users
0,0%
10,0%
20,0%
30,0%
40,0%
unter 25
Jahre
25-34 Jahre 35-44 Jahre 45-54 Jahre 55-64 Jahre über 64 Jahre
Age Cluster
Sh
are
Altersstruktur Erding Alterstruktur Baden-Baden
> 70% are 35+
© Equens
Where to use biometric payments?
Retail – okay!
Schools – okay! ATMs???
Fashion – okay!
© Equens
Biometric ATMs spread in India, Japan and Columbia
Oriental Bank of Commerce has deployed biometric ATMs in
Uttarakhand, India
Fingerprint readers hitting mini-banks in Japan and
Columbia, and now a pilot program is getting set to install
15 biometric ATMs at "village kiosks in five districts across
southern India."
Citibank will provide services through a biometric ATM,
India
Other banks like Andhra Bank and Bank of India also offer
biometric ATM facilities to their micro finance customers
Punjab National Bank (PNB) on Monday (Nov. 26, 2007)
installed its first biometric ATM at a village in Gautam Budh
Nagar (UP) to spread financial inclusion, India
Bancafe Bank, one of Colombia’s leading financial
institutions, is incorporating fingerprint scanning across its
entire automated teller machine (ATM) network.
Security ???
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Security issues
Fingerprints can be faked – that’s a reality!
Movies on youtube
German hackers club (CCC movie)
…
However, in real life it doesn’t work very smoothly (internal tests
showed that it doesn’t work right away; +20 trials)
Today no unmanned usage recommended
Risk/benefit ratio for potential fraudsters doesn’t look promising
(fraudster has to be physically present, many witnesses,
surveillance cameras, one-time shopping, no cash, etc.)
Technology is improving (e.g. vein recognition)
Two or more technologies can be used at the same time
(fingerprint + face recognition)
Recommendation: ATMs seem to be to early and insecure, POS seem to be realistic
© Equens
Media attention
TV
All major German TV channels (ARD, ZDF, SWR,
WDR, HR, NTV, N24, RTL, Pro7, SAT1)
France: France3, TF1
England: BBC, NBC
Russia: NTV Russia
TV Ukraine
Japan TV
Countless articles in newspapers, magazines, etc.
Reaching from Canada to Australia
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Equens’ objectives and role
Objectives
To conduct a trial using biometrics (e.g. fingerprint) as means of
identification for payments
Feasibility study for commercialization and user-experience
Convenience and process efficiency
Equens’ role
Core competence payment processing
Feasibility study for use of biometrics within SEPA-portfolio
13
© Equens
Why all the hustle? Innovation is key!
In Africa every day
a lion wakes up and knows it has to outrun the slowest gazelle
a gazelle wakes up and knows it has to outrun the fastest lion
But …, no matter if you are a lion or a gazelle
When the sun comes up you better start running!
An African proverb!
Equens. Payment services for Europe.
Benjamin Syrbe
Advisor to the Board of Directors
Equens
Phone: +49-69-589993-60371
Fax: +49-69-589993-60350
Email: [email protected]
Internet: www.equens.com