Focus on Mobile BankingM-banking: from ‘nice-to-have’ to ‘must-have’ channel

10 Keys to Mobile Banking Success

Most Trusted Brands in Mobile Payments

M-Banking in Europe

Latest Mobile Partnerships

Product of the Month

Loyalty Card Program

e-newsletter | January 2012

Mobile Banking | Trends

January 2012 | 1

We would like to start by thanking you for the collaboration we’ve had until now and by wishing you a dynamic and positive 2012!The year that just ended has proved once again to all of us that the cards market is one of the most dynamic field of activity and that, only by being proactive we may have fruitful results.In this respect and also because we would like to keep our partners close, we have decided to launch this e-newsletter - this initiative has the purpose of keeping you in touch with the latest market trends, and also to present to you the new products that Provus&Romcard intends to launch in the future.We thank you for your trust!

Incepem prin a va multumi pentru colaborarea de pana in prezent si prin a vaura un an 2012 dinamic si cu rezultate pozitive!Anul ce tocmai s-a incheiat ne-a dovedit inca o data tuturor ca piata cardurilor este una dintre cele mai dinamice domenii de activitate si ca, numai printr-un comportament proactiv vom putea avea rezultate fructuoase.In acest sens si pentru a fi mai aproape de dumneavoastra am decis lansarea prezentului e-newsletter – aceasta initiativa avand rolul de a va tine la curentatat cu ultímele tendinte ale pietei cardurilor, cat si cu noile produse pe care Provus & Romcard intentioneaza sa le lanseze in viitor.Va multumim pentru increderea acordata!

Dear partners,

Dragi parteneri,

Best regards,Cu respect si ganduri bune,

Utku OgrendilC.E.O.Provus Service Provider S.A. & RomCard S.A.

Trends | Mobile Banking

2 | January 2012

concern, as almost half of consumers cite fear of security as the main rea-son they do not use mobile banking.Vendors seeking market leader-ship will also need a thorough un-derstanding of how to incorporate

Javelin Strategy & Research’s third annual Mobile Banking Vendor Scorecard survey concludes that the mobile channel has moved from a ‘nice-to-have’ to a ‘must-have’ channel.Javelin scored the offerings of 15 ma-jor vendors, using data from surveys conducted with more than 10,000 consumers and interviews with 6 fi-nancial institutions (FI).Fiserv, FIS and Sybase received the highest scores. Fiserv won best in class, while mFoundry won “Path to Mobility”. It is the second consecu-tive year that Fiserv achieved top place.The triple play - mobile banking via SMS text, mobile browser, and downloadable apps - is emerging as the new norm, with four out of five vendors now offering it.However, security remains a top

M-banking: from ‘nice-to-have’ to ‘must-have’ channel

Upcoming EVENTS:

7 Feb 2012/ London:FinovateEurope

19-22 March 2012/ Singapore: 5thMobile Commerce Summit Asia 2012

Mobile Banking | Trends

January 2012 | 3

these trends into the development of their solutions. For example, the mobile banking industry is consoli-dating, with players bringing mobile technologies in-house.Tablet adoption by consumers is growing at a tremendous rate, and FIs and vendors will need to provide access to mobile banking specifically designed for tablet users.The 15 vendors compared were, in alphabetical order: Clairmail, FIS,

Fiserv, Harland, Intuit, Jack Henry, Kony, mFoundry, Monitise, ORCC, Q2ebanking, S1, Sybase 365, Tyfone, and Yodlee. Infosys was included as a new entrant this year but not scored.One in 10 using mobile bankingAround 9% of mobile phone users are using their devices to access bank accounts, according to research pre-sented by the Future Foundation at MasterCard Europe’s Prepaid Confer-ence in Barcelona.The research, conducted in Europe’s five biggest economies, showed that just over 5% of mobile users used their phones for payments.More than 60% of the mobile bank-ing users were men, said Future Foundation director Barry Clark who presented the comScore survey re-sults. He added that the most popular platform was Apple with more than 30% of those surveyed, followed by Symbian (the operating system for Nokia) coming second, and Google [Android] coming third with almost 20%.The original research was conducted between January and March 2011.

Brief:• The number of mobile banking

users doubled in the past 12 months in China, Brazil and Kenya.

• In the UK, 20.4% people now use mobile banking - compared with 9.7% a year ago.

• In the US, mobile banking adoption grew from 11.4% in 2010 to 21.9%.

• Sweden recorded a bigger leap still: mobile banking adoption rose from 8.1% to 20%.

• 63% of mobile phone users in sub-Saharan Africa said they would like mobile banking services.

Trends | Mobile Banking

4 | January 2012

1. Go for the triple play - downloadable apps, mobile browsers and SMS-based services2. Invest in versatility - ensure that your vendor can adapt quickly3. Develop with agility - iterative development can itself be trailblazing.4. Test, test and re-test - “Mobile”, by definition, is dynamic, always moving and adjusting5. Secure it right & educate your end-users6. Consider mobile remote deposit capture (RDC) - set deposit limits, establish fixed daily

limits or require a certain balance for a certain length of time7. Tablets – the latest play (3 months after the iPad first came out, 58 percent of banks were

already servicing them)8. Get ready for HTML5 which significantly advances rich web content capabilities9. Leverage device awareness - by pushing out offers, fraud alerts etc. – sharing

information with the customer10. Keep an eye on social networking - updatedall the time and “show off” on Facebook,

Twitter, blogs etc.

Trends | Mobile Banking

10 Keys to Mobile Banking Success*as considered by mobile pioneers, i.e. SunTrust, IBC Bank, Fiserv

Mobile Banking | Trends

January 2012 | 5

In an online survey performed by Ogilvy & Mather, 500 Americans were asked which brand they would trust most in mobile payments: Visa, MasterCard, American Express etc. carried the most trust, while companies like eBay and Facebook had a much lower score. This means that even in the online world, a brand carries a lot of weight when it comes to payments.

FacebookeBayMotorolaGoogleMicrosoftAppleUSPSPayPalAmericanExpress

MasterCardVisa

39.6%

35.9% 35.8%34.3%

24.6%22.9% 22.3%

19.5%

17%15.5%

12.1%

Percent of respondents expressing TRUST:

Mobile Banking | Trends

Most Trusted Brands in Mobile Payments

Trends | Mobile Banking

6 | January 2012

MALTAVallelta

More than half of European banks have implemented or will implement the “mobile banking” service. For most banks the target is to improve customers’ experience in the interaction with the bank and to attract younger customers.

For ~ 40% of banks in Northern Europe and Scandinavia “mobile banking“ development is treated as priority. This percentage dropped to 20% for banks in Central Europe (!!! a German bank reported an increase of over 1000% for “mobile banking” users; although these are calculated based on the initial small number of customers, it still shows the reality that some banks are performing tests and show some real interest).16 August 2011 Germany: Telefónica, Telekom and Vodafone are pushing ahead with their joint activities in mobile payments and intend to register their payment service mpass as a separate company.

Aided by new technologies such as Near Field Communication (NFC), users will soon be able to make simple, secure and wireless payments in high-street shops, too....And for banks in South East Europe the figure is only 11%. Social media will most likely be one of the main sources of customer opin-ions about mobile banking services.

M-Banking in Europe

Trends | Mobile Banking

M-Banking – common used services

• Checking your account balance

• Bill Payment: Paying the utility invoices to suppliers agreed by your bank (gas, electricity, phone etc.)

• Building and/or closing time deposits

• Opening/closing current accounts

• Money transfer/ Funds transfer to other banks

• Cancelling the direct debit option

• Request for bank statements

• Requests regarding loans advance redemption

• Foreign exchange

• Notifying the bank regarding address changing

• Reporting stolen cards etc.

Mobile Banking | Trends

January 2012 | 7

MALTAVallelta

31 August 2011: Monitiseplc today announced that the com-pany has signed a new partnership agree-ment with RBS Technology Services to broad-en mobile banking and payments services across its banking divisions27 July 2011: BNP Paribas and Orange have formed a partnership and signed a trademark licence agreement to launch innovative mobile banking services in November 2011. Starting in November, BNP Paribas customer advisors will be able to offer mobile banking services – unique in France – in all 2,250 branches (also available through Internet banking). Customers will be able to access the most innovative m-banking and m-payment serv-ices to manage their accounts and make pay-ments using their mobile phones. The aim is to equip thousands of BNP Paribas customers with smartphones over a three-year period to combine the very best mobile services and banking services.17 June 2011: The mobile marketing and mobile payments joint venture between Everything Everywh, Telefonica O2 and Vodafone in the UK will en-

able these mobile operators to secure a posi-tion at the heart of the nascent NFC contact-less payments ecosystem. The importance of successful mobile operator partnerships is to reduce fragmentation, boost scale, and help position strongly against competitors, such as Google Wallet.June 2011: Visa acquired Fundamo, a South-Africa based leading software maker for mobile banking services in more than 40 countries, with more than 5 million registered subscribers. Mean-while, Visa announced a long-term trade alli-ance with a UK mobile software maker - Monitiseplc, to enhance the delivery of mo-bile financial services to Visa account holders through banks.28 February 2011: Fiserv, Inc., a provider of financial services technology solutions, has acquired Mobile Commerce Ltd. (M-Com), an international mobile banking and payments provider, to enhance Fiserv’s existing mobile channel capabilities. The two companies have been partners since 2008, developing and deliver-ing Mobile Money from Fiserv to hundreds of financial institutions.

Latest Mobile Partnerships

Mobile Banking | Trends

8 | January 2012

Product of the month

The Loyalty Card Program (LCP) allows the Bank to challenge the traditional and outdated marketing payment card model and offers the opportunity to create customer behavior change, that immediately transmute into significant financial benefits.

Advantages and BenefitsLCP help banks• retain curent cardholders• make the card to be preferred among other

cards in the pocket• make cardholders use their cards more often• attract new customers• reduce the cost of delivering rewards and

promotions• create compelling offers targeted to

customers• Program Features Issuing/Acquiring• Loyalty Points, Gifts, Cash Back, Adjustment,

Transfer• Customized transaction messages• Smart Receipts • Offers unexpected rewards and prizes to

cardholders • Special day messages • Information about current campaigns• Gives the program partners cross-promotion

opportunity.• Customized letter generation as an insert to

the statement envelope

Loyalty Card Program

January 2012 | 9

Product of the month

• Direct marketing campaigns by printing on the statements

• Smart Statements • Personalized statement production

Benefits to Partner Merchants LCP helps its partners to gain newcustomers and to increase their sales• Gain new customers by attracting other

merchants’ customers• Increased customer loyalty & repeat

purchase• Increase volume with Bonus campaigns• Move customers into higher spending

brackets• Offer instant sales finance / installments • Increase impulse buy with the convenience

of Bonus• Offer an instant loan for a flexible time period• Reduce promotional and advertising costs• Cash into a large reward pool • Creates additional sales with “free shopping”• Co-brand the cards with partner merchant

logo • Create special campaigns using a database

run by professionals

Loyalty Card Program - Main attributes • Validity Period (From date, To date)• Points Expiry Period (expiry period for points

awarded – in months)• Initial Points awarded• Minimum/ Maximum points awarded during

a billing cycle.• List of Transaction Types (one-to-many )• Cardholder Profiles• Accumulate points by total amount or

number of transactions with a minimum amount.

• List of transaction sources (Local, Regional, International)

• List of merchants (can be a group of merchants or merchants linked to any type of services). The system is setup with default group of merchants including ALL merchants.

Loyalty Card Program – Technical features• Multiple reward programs can be configured • Any type of transaction can be set up to

accrue points• Different points can be accrued for the same

transaction under different schemes• Point calculation can be rounded to the

nearest point for percentage calculations• Points can be credited as a percentage of

transaction amount or at a fixed rate• Points can be posted in segments• Gift database manages gifts redeemed for

redemption analysis

PROVUS SERVICE PROVIDER S.A.

Str. Vasile Milea 2H , Sector 6,Bucuresti, Cod Postal 061344, ROMANIA

Telefon: +40 21 202 69 00; +40 21 202 69 99 Fax: +40 21 315 85 57; +40 21 315 95 57

E-Mail: office@provus.ro

S.C. ROMCARD S.A.

Vasile Milea 2H061344 Bucuresti - Sector 6

Telefon: +4021 4020029E-Mail: romcard@romcard.ro