Smartcards, smartphones - and other payment methods. Senior Advisor Bent Bentsen at ATC 2008, Future SIM workshop Oslo, June 23, 2008

Transcription

1 Smartcards, smartphones - and other payment methods Senior Advisor Bent Bentsen at ATC 2008, Future SIM workshop Oslo, June 23, 2008

2 DnB NOR - Norway's leading financial services group More than 2.1 million retail customers Norway's largest Internet-banks, dnbnor.no and postbanken.no with over 1.1 million users More than corporate customers Norway's most extensive distribution network for financial services Norway's largest life- and pensioninsurance company with around customers Norway's largest asset management operation with more than mutual fund customers i Norway and 323 institutional clients in Norway and Sweden Norway's largest capital markets operation Norway's leading real estate broker full-time positions 2

3 DnB NOR - By far the largest financial group in Norway (40 % market share) - Third largest in the Nordic market (total assets >200 billion Euro) - One of the largest shipping banks in the world Branches Chennai Helsinki Vilnius Copenhagen Singapore Shanghai DnB NORD Hong Kong Monchebank, Murmansk Subsidiary Rep.offices Asset Management Luxembourg Copenhagen Helsinki New York Houston Santiago Stockholm Hamburg London Tallin Rio de Janeiro Warsawa Riga 3

4 Brands in DnB NOR 4

5 DnB NOR in the mobile space 5

6 Footprints First WAP service in 2000 First SMS service in 1999 browser 2.0 in 2006 First mobile financial portal in Norway, 2007 Full range banking services SMS 2.0 in 2007 MSISDN as authentication Extended services, e.g Friends and family payments BankID in 2008 Multi channel authentication and signing (PKI) Mobey Forum member since 2001 Board of Directors since

7 SMS Balance inquiry From To 2266 S To S To Convenient Anomonous input and response Secure 7

8 SMS Transfer From To 2266 O To O To Convenient Anomonous input and response Secure 8

9 SMS Friends and family payments To Send Tom 200 Instant transfer Predefined friends and transaction limits in secure net bank Only from predefined phone number 9

10 First Financial Portal 10

11 BankID Joint id scheme among all Norwegian banks Based on PKI (Public Key Infrastructure) Basic services identification and signing Keys and crypto on SIM card Cooperation with Norwegian telcos Infrastructure launch Nov Commercial launch 2008 Net payments, BankAxess, secured by BankID 11

12 The Norwegian payment market 12

13 Well developed user habits Long tradition between Norwegian banks to cooperate on infrastructure and basic services. Well functioning debet card scheme Net Payments : 13

14 Norway seems to have a highly favourable payment mix, with lowest retail cash usage (McKinsey & Company 2005) Number of retail transactions per household, percent Cash Check Cards* Direct Debit Transfers 100% PL SP IT PT GE AT SE CH BE NL UK FR NO *Including E -Purse 14

15 Card usage is increasing. Number of cards Turnover Credit cards Invoice cards Invoice cards Credit cards Debet cards Debet cards Source : Norwegian Central Bank 15

16 But so is cash turnover!! Total Notes Coins Source : Norwegian Central Bank 16

17 Cash is the enemy European community calculate an annual 200 cost to society per inhabitant in cash handling. DnB NOR calculates cash handling deficit to NOK 300 mill. per year Other negative effects to the society 17

18 How to change payment behaviour? 18

19 How to change payment behaviour?.. in a country with a well developed card scheme 18

20 How to change payment behaviour?.. in a country with a well developed card scheme.. and people are focused on convenience (..and are willing to pay for it ) 18

21 How to change payment behaviour?.. in a country with a well developed card scheme.. and people are focused on convenience (..and are willing to pay for it ) New payment solutions demands new value propositions. 18

22 HOW? 19

23 HOW? Trials and commercial launches all over the world shows that contactless payment solutions gains huge interest.. Convience the most important driver In Norway another card wouldn t really make that big change in consumer behavior They already feel quite convenient with their BanAxept card 19

24 HOW? Trials and commercial launches all over the world shows that contactless payment solutions gains huge interest.. Convience the most important driver In Norway another card wouldn t really make that big change in consumer behavior They already feel quite convenient with their BanAxept card But as a people of extensive mobile usage, using the mobile phone would 19

25 Basic requirements 20

26 financial services Source : Mobey Forum Ltd. 21

27 financial services Source : Mobey Forum Ltd. 21

28 Critical challenges for MFS developments Security critical applications, like payment and ID credentials, require secure hardware storage There are 3 alternatives for this Secure Element (SE) storage 1. SIM / UICC chip 2. Embedded Chip / phone hardware 3. Secure Memory Card based solutions SIM is today the most widely available option Other alternatives are emerging as standards-based options Source : Mobey Forum Ltd. 22

29 Financial s Ecosystem 23

30 Future SIM (UICC) Event Id Access Payments Transport Banking..a true multi function, multi application smartcard based on Global Platform 24

31 An emerging market for mobile payment and ticketing End User End User End User End User End User End User End User End User End User End User End User End User End User End User 25

32 An emerging market for mobile payment and ticketing End User End User End User End User End User End User End User End User End User End User End User End User End User End User 25

33 An emerging market for mobile payment and ticketing End User End User End User End User End User End User End User End User End User End User End User End User End User End User 25

34 An emerging market for mobile payment and ticketing End User End User End User End User End User End User End User High complexity will decelerate the market End User End User End User End User End User End User End User 25

35 A more effective market configuration - TSM as an service enabler End User End User End User End User End User End User End User Trusted Manager End User End User End User End User End User End User End User 26

36 A more effective market configuration - TSM as an service enabler End User End User End User End User End User End User End User Trusted Manager Agreements SPs/MNOs Card Application Installation Card Application Life Cycle Management End User End User End User End User End User End User End User 26

37 Ecosystem Stakeholders in the MFS collaborative business model Source : Mobey Forum Ltd. 27

38 The SIM in DnB NOR service development 28

39 Projects and developmets BankID SIM card for private keys and cryptography DnB NOR has been the driving force since 2004 in a joint development between all Norwegian banks DnB NOR pilot from June 2008 Contactless Payments SIM card for payment application and personal credentials storage Joint project between Telenor and DnB NOR since 2007 Trial in Oslo commencing 2008 Trusted Manager Secure download and management of applications to a secure element (SIM) Telenor and DnB NOR establishes TSM Nordic AS in April

40 The future is mobile! - Your bank in your pocket, your wallet in your mobile QUESTIONS? 30