Rabo Mobiel

Mobile Banking & Payments

Dan Armstrong

CTO, Rabo Mobiel B.V. (dan.armstrong@rabomobiel.nl)

MoMo Amsterdam, 31 March 2008

About Rabobank / Rabo Mobiel

Rabobank

� NL: 2,7 mln internet banking customers, 7 mln customers overall (~50% market share)

� Extremely high loyalty, broad national coverage of customers

� Tradition of innovation� Tradition of innovation

� AAA rating (Moody's, Standard & Poor's)

� Top-15 world financial institution

Rabo Mobiel

� Started in summer 2005, launched to the marketing in November 2006

� Over 100.000 customers last week, postpaid/prepaid, all customer segments, regions.

NL Mobile Marketplace (2008) – very busy

Rabo Mobiel in the Marketplace

What you get with Rabo Mobiel

� Core Rabobank Values - trust, security,

quality, easy-to-use services, cooperative

value

� Great Telecommunications Product

� Online Self-Care Environment

� Commitment to innovation - core asset for

differentiation is Mobile Financial Services

� Secure mobile banking - MSISDN/IMSI checks,

WAP Gateway IP#, VPN, SSL, 5-Number PIN

code validation

� Close Rabobank partnership, but Rabo Mobiel

is an independent company - for innovation,

speed-to-market

� Leverage GSM technology (internet access,

SPS P2P, etc.) and Near Field Communications

(NFC) for proximity payments.

Some Challenges

� In NL, electronic payments are a mature model. 98% pinpas penetration, ubiquitous usage and availability, very cheap transaction costs (free for users)

� Do consumers identify the mobile phone as a payment device?

� Weaknesses in mobile and banking industries applicable.

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

MethodMedium

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-resistant tokens .

… Online & Offline Token /

Authentication (various

GSM/IP) + knowledge

(TIN)

UBT

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)

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…

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…

Debit

Card

Credit

Cards

Pick up loyalty cards at

supermarkets and retail

locations

Rabo

Schoolbank

Public

Transport

Sport

Pass

Loyalty

Member-

ship

Rabo Mobiel Product Rollout Strategy

� Question: What role doe mobile

operators or banks want to play in

brokering a customers’ identity?

� Tip: To gain speed and mass

acceptance, countries must

establish a federation model,

including major players in key B2C

sectors:

FULLY-INTEGRATED

Utilise lessons

learned &

successes to

move into

larger

2008-10

INTEGRATION WITH

PRODUCTS AND

PARTNERSHIPS

2009-12

FULL NFC PRODUCTS +

COMPLETE

INTEGRATION WITH

PARTNERS

sectors:

� Note: All this can’t be only

technology-led, consumers must

get benefit, receive logistic value

and cost savings.

banking mobile

public

transportretail

loyalty

ticketing

STAND-ALONE

TRIALFULL

PRODUCT

LAUNCH

larger

collaborations

/ partnerships.

Utilise trials to define the business case for full

product roll-outs & partnerships.

2007-08

TRIALS / FIRST PRODUCTS

2008-10

PRODUCT ROLL-OUT

OPPORTUNITIES,

EMERGING STANDARDS,

CONSUMER SUCCESS

Some Current Products, PoC Programmes & Trials

2007-08

• Coca-Cola NFC Vending Trial – 30

locations

• FEBO NFC Vending PoC - Amsterdam

Feb 2008

• Kick-off 2008 NFC ticketing roll-out in

Diergaarden Blijdorp, later

museums, zoos, amusement parks

Rotterdam

2007-08

• C1000 Supermarket NFC Shopping

Trial w/PIN

Jun 2008Jun 20082007-08

Jul-Sep 2008

• Temporary personnel company NFC

time registration trial (2 cities)

• NFC retail shopping trial with no-

queue checkout (ends Sep)

• NFC card/phone bicycle storage

launch, 3 cities

Sep-Nov 2008

• 2 new Rabo Schoolbank roll-outs for

cashless schools

• Launch of 4 city NFC parking product

w/theatres, city passes, vending,

retail

• 120+ conferences with NFC access via

2 event partners

Sep-Dec 2008

• NFC payment roll-out with 3 new

handsets in 500+ locations nation-

wide

• Planned NFC mobile loyalty

programme with 2 nation-wide

loyalty programmes and 4 major

retailers

• MiniTix downloadable Java

application v.1, account balance &

transactions, P2P, content & access

• Introduction P2P payments to

normal mobile numbers, via SMS

• Prepaid recharge, online merchants

& retailers

• Rabo Schoolbank trial for NFC cards

& mobile phone in cashless schools

RABOSCHOOL

BANK

RABOSCHOOL

BANK

Some images 2007-08

C1000

Coca-Cola NFC vending

FEBO NFC vending

Some images 2007-08

28 February 2008:

Diergaarde Blijdorp

P2P

NFC PIN demo @ Picnic

school

NFC

terminal

GSM parking

launch with Park-

line

MiniTix 2008

� MiniTix online

� MiniTix P2P

� MiniTix NFC

• NFC cards, NFC mobile phones

• Being rolled out in schools, theatres,

parking, bicycle storage, vending

Customer bank account

� MiniTix mobile application

Mobiel Betalen – Powered by MiniTix

Mobiel Betalen – Powered by MiniTix

Mobiel Betalen – Powered by MiniTix

Mobiel Betalen – Powered by MiniTix

SEPA: Single Euro Payments Area

� Zone for the euro in which all electronic payments are considered domestic, and where a difference between national and intra-European cross border payments does not exist.

� European Payments Council (EPC) has mandated standards for all inter-bank transactions via the Payments Service transactions via the Payments Service Directive, as well as incasso, acceptgiro, e-payments and m-payments, etc.

� So, for new payment developments, Rabobank must not only consider other Dutch banks but other European banks too (and there are a lot).

??????ZWIZZLE

PIN

ba

nk

s

too american

...

vs.

Mobile Transactions in 2012

Transactions Menu

PIN

Menu BackInfo

1. USABILITY?

- cross-platform

- NFC behaviour

2. SECURE TRANSATION KEYS?

3. HARDWARE SECURE ELEMENT?

- UICC (SIM card)

- hardware

- removable memory card

4. SEPA

TSM Key

Management

Mobile Transactions in 2012

TSM Key

Management

TSM

OTA

Service

Provider

Service

Provider

Service

Provider

MNO

TSM Key

Management

TSM Key

Management

OTATSM Key

ManagementOTA

TSM Key

Management

TSM Key

Management

TSM

OTA

TSM

OTA

Service

Provider

Service

Provider

Service

Provider

Provider

Service

Provider

Service

ProviderPIN

MNO

MNO

Thank you!

Dan Armstrong, CTO

Rabo Mobiel B.V.Rabo Mobiel B.V.

Oosterdok 2

1011 VX Amsterdam

The Netherlands

dan.armstrong@rabomobiel.nl

+31 652 085 071

http://www.rabomobiel.nl/rabomobiel/rabo_mobiel/innovaties_mobiel_betalen

http://www.youtube.com/RaboMobielNFC