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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

Building attractive banking card offers using GlobalPlatform

Silas BrownEMV Senior ConsultantOberthur Card Systems – China

GlobalPlatform Business Seminar

Shanghai, China - 20 April 2006

agenda
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
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

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
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

Product differentiation

Students

“Middle Class”

“High End”

CustomisedOffer

DifferentiatingOffer

Low CostOffer

segment 1 students
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
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
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

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
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
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
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!