Building attractive banking card offers using globalplatform
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Building attractive banking card offers using GlobalPlatform Silas Brown EMV Senior Consultant Oberthur Card Systems – China GlobalPlatform Business Seminar Shanghai, China - 20 April 2006 Agenda Your cardholders are different Chip can help build your product portfolio

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Building attractive banking card offers using GlobalPlatform

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Building attractive banking card offers using globalplatform l.jpg
Building attractive banking card offers using GlobalPlatform

Silas BrownEMV Senior ConsultantOberthur Card Systems – China

GlobalPlatform Business Seminar

Shanghai, China - 20 April 2006


Agenda l.jpg
Agenda

  • Your cardholders are different

  • Chip can help build your product portfolio

  • Differentiation of your products

  • What can GlobalPlatform bring to your bank?

  • GlobalPlatform is already helping banks


Cardholder segmentation l.jpg
Cardholder Segmentation

“Banks are increasingly recognising that a large proportion of their retail customer base is unprofitable, yet consumes most effort”

Different Card Holders require different products

Features

  • Multi-product ownership

  • Investment and mortgage products

  • Long term client history

  • Significant balances

62%

4%

18%

13%

  • Multi-product

  • Transactional, card & check

  • Significant balances

  • Mortgage

5%

62%

60%

17%

1%

  • Dual product ownership

    • Transactional

    • Check/Credit card

-42%

  • Single product

  • Transactional, low balance

Source:

McKinsey

% Customers

% Contribution to Profit


The benefits of chip l.jpg

Issuer

Terminal

Cardholder

The benefits of chip

  • EMV offers:

    • Global Interoperability

    • Fraud reduction

    • Transaction security

    • Advantages of offline transactions

    • Enhanced risk management

    • Liability shift issues

  • But what else can chip bring to your bank?


There s more to chip than emv l.jpg
There’s more to chip than EMV

Payment

Payment

Transportation

POS

ATM/CAT/UPT

Phone

e-ticket

e-purse

T&E

Services

e-commerce

Authentication

Storage

Government

Telephone

PC

Personal Info.

Loyalty

Mobile

TV Set-Top Box

PDA

(Contactless)


Slide6 l.jpg

Product differentiation

Students

“Middle Class”

“High End”

CustomisedOffer

DifferentiatingOffer

Low CostOffer


Segment 1 students l.jpg
Segment 1: Students

  • Customer segment

    • Low revenues & a lot of small expenses; High risk customer but big potential after few years

    • Looking for “differentiating” “high-tech” products

    • Need to build a strong loyalty to retain students cardholders after their study

  • Card Applications

    • EMV

    • Loyalty: Quick Services restaurants, Movie chains,…

    • E Purse or Pre-Authorised: Managed Cash expenditure

  • Plastic

    • Fun Design or Customised design

  • Service

    • Music or Game CD packed with Card, SMS notice of Card availability, Electronic Fulfilment via Email


Segment 2 middle class customer l.jpg
Segment 2: “Middle class” customer

  • Card Applications

    • EMV

    • Loyalty: Retail, Petrol Station,…

    • E-purse or Low-value payment

  • Plastic

    • Lively design

  • Service

    • Coupons packed with Payment Card

  • Example with Online Authentication with EMV card

    • Use of a non-connected reader

    • Cryptogram generated by card and used as DAP/SecureCode within 3DSecure server architecture

    • Specific Plastic design (normal/gold/platinum)

    • Personalisation done by OCS for pilot or backup


Segment 3 high end user l.jpg
Segment 3: High-End User

  • Customer type

    • High revenues, highly profitable customer

    • Many, large expenses

  • Strong Demand for high-quality service & differentiation

    • Delivery service :1 day service for card supplying/replacement

    • Card made especially for the cardholder

    • Specific differentiating plastic (MasterCard, VISA, or AMEX branded)

  • Card Applications

    • EMV, On-line Authentication, PKI, Data Storage…

  • Additional Service

    • Smart Card reader with Payment Card, SMS notice of Card availability, Electronic Fulfilment via Email


Globalplatform architecture l.jpg

EE

PROM

Elect.

purse

Data

Storage

Loyalty

appli.

Data

Storage

Loyalty

appli.

Application

A

Java Interpreter

Application

B

Application

A

Java Interpreter

Application

B

R

O

M

Operating System

Operating System

Operating System

Operating System

CPU + crypto

Philips Chip

CPU + crypto

ATMEL Chip

Smart Card A

Smart Card B

GlobalPlatform Architecture

e.g. JavaCard


Why use globalplatform l.jpg
Why use GlobalPlatform?

  • Allows post-issuance updates/upgrades

    • Smart Card Management System

  • Application hardware independence

    • “Anytime, anywhere”

  • Faster time to market

    • In-house development

    • No masking delays

  • One chip card product for multiple product base

    • Stock control

    • Personalisation


How gp has helped banks l.jpg
How GP has helped banks

  • K&H Bank (Europe) - 2000

    • Aim: Use of smart card technology to become #1 bank in Hungary

    • Products: EMV only, EMV + PKI authentication, EMV + PKI + Loyalty, Employee cards

  • ICBC (China) - 2005

    • Aims: First bank to issue EMV cards in China (technology innovator), card platform to base all product offers and development

    • Products: Dual-issuance EMV, now looking at Loyalty and Contactless payment

  • HSBC (Asia) - 2006

    • Aims: Obtain a standard card base product for all HSBC operations in Asia, then apply individual country requirements

    • Products: Dual issuance EMV + Loyalty, studying EMV authentication implementation in UK


Conclusion l.jpg
Conclusion

  • Cardholders are different and they expect different products and services

  • A move to chip should make banking products more attractive and more accessible

  • GlobalPlatform ensures card product flexibility and enables leverage of existing infrastructure and resources

Thank you!谢谢!


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