Contents:

Thinkways profile

Introduction to our mobile banking solution

Banking Services for Banked Customers: 1. Basic Banking 2. Money Transfer 3. Remittance

Mobile Payment for Banked Customers:

1. Bill Payment 2. Top up/Recharge 3. Ticketing 4. Merchant

Registration Process

M-banking for Existing or Banked Customers: Architectural Overview

Transaction flow screens: Basic banking, Bill payment, money transfer, top-up

Banking for the unbanked

Advantages to stakeholders

Mobile Banking Scenario – Past & Present

Banking and mobile usage scenario in Cote d'Ivoire

Unbanked population scenario

M-banking – Unbanked/Rural Population: Architectural Overview

Financial Services: 1. Cash Withdrawal 2. Cash Deposit

Platform Security and Standards

Thinkways profile

Five year old company, established in June 2003

Offices in Bangalore and Bhubhaneswar, India

75+ professionals

Providing wireless & e-business solutions and services to prominent organizations in banking, financial services, healthcare, telecommunications, manufacturing, public utilities.

Technology includes Smartcard (Java Card, RFID), Security Systems (3DES/RSA), Mobile Applications (NFC, J2ME, Symbian), Peripherals (Serial IO, Bluetooth, Fingerprint I/F, NFC, .Net), Telco Interfaces (SMS, Secure Binary SMS, SmartTrust WIG, HTTP/S), Banking Interface (ISO 8583) and Backend applications (J2EE, JSP, POJO, JCAPS).

Mobile Banking Scenario – Past & Present

Past:

Mainly reproduction of existing online banking

Low bandwidth & latency issues

High Communication cost

Low functionality and fewer capabilities

Security Concerns

Present:

Fast data services –GPRS/3G/USSD

Lower data transfer costs

More functionality, better user interfaces

Higher security mechanisms

Source to reach faster to the unbanked and under banked population

Introduction to our mobile banking solution

Mobile banking solution for banked population:The solution is provided to banks customers to avail information and transact on the move.

The banks can retain existing customers and attract more by providing this mobile banking solution

Mobile banking solution for un-banked population:Reach out to un-banked population in the rural area to expand customer base

Technology:Mobile application, Smartcard, Contactless technology by using NFC, Fingerprint verification process and transaction proof using bluetooth, SMS, GPRS, USSD

Security features:ISO 8583 standard for financial Transaction Card originated messages

IFX, specification for financial transactions such as bill presentment and payment

Data Encryption: 3DES, SHA1, MD5, RSA

Advantages to Stakeholders

Telecom Operators

Higher revenue flow through increased GPRS and SMS usage

Banks

Expand customer base by providing basic banking facility through financial inclusion to the unbanked population

Provide on the fly banking facility through m-banking to the banked population

Financial Services/ Card Companies (VISA/MasterCard)

More number of transactions creating increased loyalty

Utility Organizations

Prompt payment of bills enabling better cash flow

Solution Providers

Acquire large number of customers for their solution

Subscribers/Customers

Basic banking facility made available and advantage to transact on the move

Registration Process

The existing bank customer can register for m-banking in either of the methods mentioned below:

Fill Form provided by the bank. The customer provides necessary details including email id and mobile number.

Online/Web registration

Customer sends SMS like MBANK to 55555. Receives a link as SMS like “Click the link to start using MBANK” Once user clicks the link the application is received and installed.

USSD – Customer dials *1234#. Receives message prompting account details.

M-banking for Existing or Banked Architectural Overview

SIM Card with WIBTM Payment Application Menu

GSM Network

Firewall at Telco

WWW

Secured mobile payment application server

Bank Back end

Bank Firewall

mcommerce Application Firewall

USSD based

USSD Centre

J2ME app

Value Proposition

Some of the financial services can be provided by the banks to their customers:

Basic Banking

Money Transfer

Remittance

Bill Payments

Mobile Recharge

Mobile Wallet

Mobile ATM

Ticketing

Loyalty & m-coupon

Insurance & Loans

POS based services

Banking Services for Banked Customers

Basic Banking: Provides customer to avail of features like Balance Enquiry, Cheque status, Account Statement, Stop payment, etc.

Money Transfer:- This provides customers to transfer money from one account to another either in the same bank or other bank

Remittance:- Allows customers to transfer money from foreign workers to their home countries.

Payment Services for Banked Customers:

Bill Payments:- Provides customer to avail of features like Electricity, Water, Telephone, Mobile Bill payment

Top up/Recharge:- Customer can Recharge mobile currency and other prepaid accounts

Ticketing:- To buy/book airline, railways, movies and other tickets

Merchant Based:- Used during shopping including mobile coupons and loyalty

M-Commerce Transaction Switch

Transaction switch components

Client interface module

Transaction Processor

Terminal Manager

Floor limit Validation

Currency Manager

Hot list card Validation

Batch Processor

Settlement Module

Message Formatter

Message Router

Key Management System

DB Manager

Customer Mobile Interaction

Splash Screen on starting mobile banking application

Customer provides mobile number for first time and only provides password given by bank from the second use onwards

User can choose between Banking, payment and other options

Customer adds bank account or credit card information incase of multiple banks/cards

Basic Banking: Balance Enquiry

Select Check Account Balance

Choose the Account Number

Enter the Transaction PIN

Balance is displayed with date and time

Basic Banking: Account Statement

Select the Account Number

Enter the Transaction PIN

Lists the first 4 transactions. Click on the transaction to view details

Transaction is displayed as shown

Money Transfer

Select Money Transfer option

Enter the Amount to be transferred

Transaction confirmation

Enter Receiver’s Account Number

Choose Account to transfer from

Enter the Transaction PIN

Top Up/Recharge

Select the Telecom Provider

Choose bank account

Transaction Receipt

Information about user account is displayed

Enter Amount and mobile number

Enter the Transaction PIN

Bill Payments

Select the Utility Department

Choose bank account

Transaction confirmation

Information about user account is displayed

Information on amount to be paid

Enter the Transaction PIN

Money Remittance

Select Remittance option

Enter the Amount to be transferred

Transaction confirmation

Enter Receiver’s Account Number and bank information

Choose Account to transfer from

Enter the Transaction PIN

Introduction- Mobile banking for unbanked

Reach out to unbanked population to provide basic banking facility enabled by our mobile banking solution

Banking and mobile usage scenario in Cote d'Ivoire

• Total population: 18 million

• Banked population: Approximately 2 million of the population or close to 10% use banking services

• 12 commercial banks

• Potential for mobile banking for unbanked : More than 10 million

• Potential for mobile banking: 2 million to begin

• Mobile subscribers: Expected to touch 9 million with 28% growth

Un-banked population Scenario

Limited access to affordable financial services such as savings, loan, remittance and insurance by majority of the population in the rural areas is a constraint to the emergence in these sectors

Access to these services enlarges livelihood opportunities and empowers the poor to take charge of their lives

Financial inclusion imparts formal identity and provides access to the payments system hence considered to be critical for achieving overall growth of the economy

The focus today has shifted to provide access to basic banking facilities to every individual

Considering various assumptions we can estimate that significant portion of the population is un-banked

Banking for the unbanked

Challenges:

Setting up a branch or ATM is an expensive affair, considering the recurring cost to be higher than the transactions

Regulation has been designed for delivery in urban markets or banked population

Distribution requires more manpower to be deployed in rural areas.

Mobile Banking the perfect solution:

Telecom networks available in the remotest of locations

Mobiles can provide facility of branchless banking and ATM starting from basic services like cash withdrawal and deposit to bill payments.

Cote d'Ivoire has nearly 9 million mobile users, compared to around 2 million bank accounts; giving banks a efficient access to the unbanked population

Easy to use, lower operational costs and access to multi utility financial services

Banking Services for Unbanked Customers:

• Pension distribution: To ensure the money reaches only to the beneficiaries on time with out any hassles

•Cash Deposit : Customer can deposit cash with the bank agent which is also updated in the bank database, no verification is required in this case

• Cash Withdrawal : Customer can withdraw from account, physical cash is provided to customer by the bank agent. Fingerprint besides other information is used for verification

• Balance Enquiry : Provision to check balance in the account

• Mini Statement : Gives information of last 5 transactions, print of statement is given to customer if required.

• Microtransaction: No minimum transaction limit makes the life easy for rural customers

• Loans: Customer can apply for loans, check for status of loan

• Insurance: Customer avails of insurance facilities.

Bank

TelecomOperator

Utilities

Thinkways Transaction Switch (TTS)

Others

User authenticatedusing card & fingerprint

Mobile phone performsfinancial transactions

TTS communicates with various financial entitiesPrinter to print receipt of transaction

M-banking for Unbanked Population:

Architectural Overview

The Registration Process

The Mobile Registration Process

Bank representative keys A/C No. and Form No.

Finger print of customer taken

Voice of customer recorded

Photograph of customer clicked

Image of Form captured

Confirmation of registration and artefacts uploaded to bank server

Cash deposit: Mobile Interface

Customer details displayed once card interacts with phone or ID provided

Select Deposit Cash

Enter amount to be deposited

Transaction receipt is printed and provided to the customer

Cash Withdrawal: Mobile Interface

Finger print verified for withdrawal

Transaction receipt is printed and provided to customer

Customer details displayed once card interacts with phone or ID provided

Select Cash Withdrawal

Enter Amount to Withdraw

Security Concerns & Measures

SMS and other channels used with encryption like 3DES, SHA by mobile applications to protect data integrity and security

Solution compatible to banking standards like ISO 8583

Security related systems and components in control of the bank

Use of Java SIM cards & PKI for establishing non repudiation

Credit/Debit cards linked to unique phone ID for added transaction security

Implementation of secure PIN for transactions

Protection of gateways by residing them behind firewalls.

Platform Security & Standards

Standards:-• ISO 9564 Banking — Personal Identification Number (PIN) management and security (in ATM and POS systems) • ISO 19092-1 Financial Services — Security — Part 1: Security framework• ISO 19092-2 Financial Services — Security — Part 2: Message syntax and cryptographic requirements• ISO 8583 Standard for Financial Transaction Card Originated Messages • IFX, specification for financial transactions such as bill presentment and payment

Data Encryption:-• 3DES, SHA1, MD5, RSA

EMV compliant

Conclusion

Thank youContact:

Alok Subudhi – Director, Technology

alok@thinkways.com

Thinkways Software Technologies#254/1, 5th Cross, Vasanthappa Block

Ganganagar, R.T Nagar

Bangalore – 560032

India

Ph: +91-80-42664800

www.thinkways.com