kni mobile commerce services -june 2015

www.KN-INTL.com

Knowledge Network International Mobile commerce for payment card issuers

2014

About mobile commerce and payment cards

Our mobile commerce / development services

How we help issuers build mobile solutions

About KNI

Knowledge Network International © 2014 2

The source for expert practitioners in

the financial services industry.

Contents


The advent of ecommerce fostered in an evolution in the way customers trade with businesses. Mobile Commerce is a revolution.

Mobile commerce is opening a BIG new window of commerce. That hour train commute you have means you are now ‘open for business’. That’s 10 hours a week of possible incremental commerce availability.

Ecommerce brought about disruptive change to brick and mortar merchants – and competition.

Mobile commerce integrates them.

This changes everything.

Mobile commerce is soaking up ‘perishable inventory’ by matching customers with merchants, on-the-go. Geo-located offers means that restaurant is now filling more tables. The hair-dresser, the taxi driver, the grocery store… They are all more efficiently selling their inventory because they can know where their customers are and sell accordingly.

Mobile commerce is not just about selling – it is much, much more. Your mobile is your accountant, your concierge, your health advisor, your nanny, your security guard, your navigator, your shopping buddy, your rewards optimizer, your appointment reminder. Your everything.


This revolution is transforming the payments space – issuers can now play a MUCH broader and value-add role in the customer’s payment life

Guide customers to stores, using real-time offers, based on geo-fencing?

Cross sell / Up sell? Dynamic credit decisions? Etc.

Faster, more convenient, smoother experiences

More information passed to customer, in real-time

Cross-selling Etc.

Revolving and installment options?

Post-purchase cross-selling? Etc.

Convenience, money saving for customers

More footfall for merchants Commission revenue to issuer

Customer convenience Increased transactions

Better cash-flow mgmt. for customer

Interest bearing revenue for issuer

Before the transaction During the transaction After the transaction

Bene

fits

Before mobile, the traditional role of payment card issuers has been to simply ensure the

transaction is efficiently and securely executed…

The new, broader role of the payment card issuer, enabled by mobile




Contents




About KNI

New customer acquisitions

Cross-selling and Upselling

Customer on-boarding

Retention & win-backIncreasing product/services usage

Underwriting

Application processing

Credit risk management

Collections (recoveries)

Fraud

Operations management

We specialize in developing solutions that use mobile devices to specifically address business challenges in the banking / payments arena…


Our Mission:

Determine how mobile devices can directly help payment card teams with their everyday business

problems

We address these business challenges using a robust toolkit with many building blocks, to create amazing mobile customer experiences


We create tailored mobile solutions for card issuers, using a broad array of mobile capabilities and the constantly expanding

sea of apps customers love to use

A different combination of apps and functions means each solution can have a unique architecture – enabling card issuers

to significantly differentiate their propositions and break the cycle of price competition

Depending on how far along an issuer is, we provide 1) end to end mobile customer propositions (solutions) or 2) mobile infrastructure development (components)


CRM/Customer Interaction Data integration E-wallets Gateway Processor Loyalty and Couponing Payments Real-time Personalization Security Software/App Integration Etc.

We deploy mobile infrastructureWhat we do

Consumer / commercial Credit / debit cards Smart phones, feature

phones, tablets iOS, Android, Windows,

Java, Blackberry…

We build mobile solutions

Our mobile solutions approach focuses on driving different ‘revenue slices’ which create incremental revenue for payment card issuers


On the spot, intelligent credit limit increases? Special finance offers when you buy big-ticket

items?

Build more interest bearing balances

Roaming fees in Europe are going away in 2016. Think this

won’t create a tsunami of mobile usage when people travel?

Drive increased international usage

Enable customers to integrate their paper bills with their

electronic bills by scanning them with their phone. Displaces cash & increases dwell time and visits to mobile banking applications…

Greater financial controls for customers via mobile bill payment

Cash management tools, employee card controls, payment acceptance on phone and tablet,

invoicing and e-receipting.

Issuer-provided ‘mini ERP’ tools for small businesses via mobile

Biometrics and geo-location can verify the customer is who they

say they are. Account blocks will go away, creating happier

customers & more transactions.

Risk, fraud and authorizations

With EU interchange rates being lowered, mobile commerce is presenting new

revenue sources, just in the nick of time

Examples of mobile commerce opportunities for payment card issuers

Building full, compelling mobile solutions quickly, means not starting from scratch. This is why we built our Issuer Starter Pack…

Consumer Card Solutions1. Finance ‘on the fly’

2. Location Based Behavioural Targeting

3. Mobile as a Primary Bill Pay Hub

4. Mobile Travel Companion

5. Transaction Assurance Application

Commercial Card Solutions6. Owner-Centric Controls

7. Cash Flow Portal

8. Franchise App

1. The rationale for the solution

Research Trends Logic case

2. The use case – how it works

Introduction to the user Sign-up/set up of the

solution A “day in the life of the

customer” story

3. Description of what is in the solution

4. Positioning

Headline features Supporting features Pricing considerations Customer experience

5. Description of benefits for the stakeholders (customer, issuer and merchant)

6. Quantitative and qualitative impacts for issuers

7. ROI model (MS Excel)


Issuer Starter Pack

The customer facing parts of mobile applications are just what can be seen on the surface. So, much of our work is ‘in the rear, with the gear’!


Alerts, messaging Analytics Channel integration Geo Fencing Recommendation Engine Loyalty, promos, offers

CRM

P2PE PCI DSS compliance Tokenization engine Secure vault EMV level 2 Network digital certificates

(Public Keys and SIMS) PIN management

Security

Mobile Wallets Wallet integration Dynamic wallet configuration In-wallet push messaging Authentication solutions

E-wallets

Application integration Host Interfaces Embedded in-app payments Loyalty programs Fraud engine enhancements Software automation Access control

Software Integration

Transaction processing Messages & protocol

converters Data integration Dashboard Geo fencing HSM: payment systems &

Digital signatures

Gateway Processor

HCE P2P B2B NFC / RFID / … QR codes / bar codes Customer receipts Wallets (electronic/mobile)

Payments $

Some of our technology services




Contents




About KNI

Our mobile commerce services are arranged across 5 areas – from vision and strategy definition through to the nitty-gritty of getting mobile products launched

Our Mobile Commerce Services

Mobile Opportunity Assessment and

Strategy

Mobile Proposition

Pilot Launch & Testing

Commercial Roll Out

Definition& Business Plan

Mobile Solution Development


We provide cutting edge mobile technologies and services to enterprises wishing to quickly gain traction in the mobile commerce space.

We conceive of, design, build, deploy and manage bespoke mobile ecosystems for our clients.

Our mobile & e-commerce technology solutions use best-of-breed, advanced analytical components which enable 100% tailored, timely and relevant interactions with customers.

I. Market research baseline (competitive

landscape, technologies, trends and analysis)

II. Mobile commerce vision creation

III. ‘Monetising’ the vision

IV. Mobile readiness assessment

V. Partner & technology ecosystem requirements

VI. Strategy & plan

Mobile Opportunity Assessment and Strategy

It all begins with a compelling and financially sound mobile commerce vision, strategy and plan


Mobile Opportunity Assessment and

Strategy


I. Mobile proposition ideation

II. Pricing model, ROI and P&L projections

III. Rapid mobile application development

(Storyboard) & app video creation (YouTube)

IV. Success criteria definition & agreement

V. Risk assessment

VI. Product requirements document

VII. Business plan development & agreement

Mobile Proposition Definition & Business Plan

Once the plan is agreed, we help issuers quickly create their mobile commerce propositions and prototype them


Mobile Proposition

Definition& Business Plan


I. Engineering solution definition and sign-off

II. Ecosystem partner negotiations & agreements

III. Software and hardware licensing

IV. Platform implementation

i. Front-end application development

ii. Systems integration

iii. Testing

iv. Certification

v. Analytics


Our mobile development professionals then take over, using cutting edge tools and components to build tailored, differentiated mobile commerce solutions




I. Develop pilot plan & recruit participants

II. Pilot dry-run

III. Launch pilot

IV. Employee training

V. Performance assessment (system, ecosystem

partners and users)

VI. ‘Kill switch’ decision

VII. Integrate learning and agree refinements

VIII. Implement refinements

IX. Prepare for rollout


A pilot solution is then tested with the test participants and quickly refined, using agile development methods




I. Move pilot to production environment

II. Develop marketing & sales plan and materials

III. Develop training and internal communications

plan

IV. Execute internal communications and training

V. Launch marketing campaign and announce

rollout

VI. Go-to-market support

Commercial Rollout

Lastly, when the solution is completely stabilized, the full scale rollout to the market is executed


Commercial Roll Out





Contents




About KNI

20

KNI is made up of subject matter experts in payments, payment technologies, CRM, e-commerce and mobile

Knowledge Network International © 2014

24 x 7

The Track Record 9 years of helping European banks and payment

card issuers solve a variety of business problems and open up new opportunities

75+ client projects delivered and graded by those clients

Certified Preferred Partner of Visa Europe – they use us to deliver consulting services to their banks

The Team 60 senior management

consultants (Advisors) 45 mobile, e-commerce &

payments software developers

102 systems integration professionals Resources in UK, Spain, India, United States,

Australia Many languages spoken

The Skills We’ve worked in financial services companies in

marketing, risk, IT, operations and other areas

Engagements with many financial services companies in over 30 countries

KNI advisors have between 15 and 40 years experience working in leading financial services companies

The Delivery Capacity We use three time-zones to

execute We have many years of

‘handing off the baton’ to the next team

Off-shore resourcing for competitive pricing & fun with Skype

On-shore, client-site project management

21

Some clients served

21Knowledge Network International © 2014

http://www.visaeurope.com/

http://www.barclaycard.co.uk/

http://www.rbs.com/

http://www.lloydstsb.com/personal.asp

http://www.hsbc.co.uk/1/2/home;jsessionid=0000R3S5Z_j8B6ROiD2cvGuVs7m:12c58nvti

http://ws1.grupobbva.com/TLEU/tleu/jsp/uk/ing/home/index.jsp

http://www.barclays.com/

http://www.bnpparibas.com/

+44 (203) 286 2923+1 (813) 699 5433

[email protected]

www.kn-intl.com

Contact us and Go Mobile!


kni mobile commerce services -june 2015

Documents

mobile solutions

mobile devices

big new window of commerce

matching customers

upselling customer

payments space issuers

way customers trade

broader role