efficiency through mobile technology

Efficiency through mobile technologies

Yolande van WykCEO FNB eWallet Solutions

Servicing your customers for less

Monday, May, 30, 2011 Slide No:2FNB eWallet Solutions

Efficiency through mobile technology

WHAT IS MOBILITY?



For todayUsing mobile technologies to provide access to your core

services and systems



MOBILE TECHNOLOGIES



The mobile phone

SMS

USSDVoice

IP



The technologies

HSCSD/GPRS/3G/4G

IP

ProductivityPBX/VOIPDatabasesValuations

EtcEtc



Connecting to the network

WASP

SMS

USSD

MMSAPI



Connecting to the network

SMS

USSD

MMS



Some attributesTechnology Attribute

SMS

Store & ForwardNeed connection to each MNOGenerally SMPPCan get costly at high volumes

USSD

Session basedSession limits imposed by MNO20c per 20 seconds for userSOAP/XML type interfaces

MMSPriceySimilar to emailVendor specific

IP based services

Huge growth area.mobiApplicationsRemoves dependance from MNO



SERVICING OUR CUSTOMERS



Financial services

The business activity of accepting and safeguarding money owned by other individuals and entities,

and then lending out this money in order to earn a profit.



Branches• Security

• Staff

• Cash management

• Low staff efficiency

• Complex and expensive systems



Call Centre• Low staff efficiency

• High staff cost inflation

• High staff turnover

• Cost of telco and bandwidth



ATM networks• Expensive devices

• High cost of cash

• Security



www.fnb.co.za• Low internet penetration



Improvements

Source: Booze Allan Hamilton



SHIFTING PARADIGMS



The goal

• Reduce the average cost per transaction:o Cost efficiencyo Innovative application of technologyo Re-use of technologyo Reduce the face-to-face as much as possibleo Development of alternative electronic channelso Provide more customer options



Mini-ATM• Completely mobile

• POS device

• Assists merchant with cash management

• Perfect for remote areas



FNB Cellphone Banking• Multi-bearer

• Any phone, anytime, anywhere

• Full transactional banking



FNB’s mobile services2002

2005

20082008

2009

2010

2007



inContact

www.fnb.co.za

*120*321#



Cellphone banking

MO SMSUSSD-1

USSD-2*120*321# fnb.mobi fnb.exe application



Cell Pay Point



Virtual Products



Quick facts• In December 2010, FNB sent 79 million SMSs (approximately 2.5

million SMSs per day)• In December 2010, FNB recorded 2.6 million customers• In December 2010, FNB processed in excess of 15 million

transactions• In December 2010, FNB processed transactions worth R1.7 billion

through Cellphone Banking• In December 2010, the FNB.MOBI site attracted more than 250 000

visits.



Cellphone Banking base



Cellphone Banking Growth



Reduced cost of transactions



Cheaper for customers



Bringing our own costs down



Benefits

• Cellphone Banking is a low cost channel to the bank • Cheaper for customers• Reduces queue times at ATMs and branches • Services like InContact reduces service calls at

branches and call centres.



Expansion is key

FNB Botswana

FNB Namibia

FNB Swaziland

FNB Lesotho

FNB Moçambique

Nigeria

Tanzania

Existing Countries

New Countries

FNB Zambia



Source: www.knowledge.allianz.com

Financial access in Africa



ENTER THE EWALLET



FNB eWallet

1. Send from any FNB account:o Online bankingo Cellphone bankingo ATM

• Recipient can:o Cash at ATM (no card)o Buy airtimeo Send to someone elseo Buy from 35 online merchants



Pay WalletPay Wallet allows FNB Corporate, Commercial and Public Sector customers to pay anyone electronically, without the recipient requiring a bank account.

• Single source• Multiple recipients• Personal information

captured & stored• Pay to phone or card

Cardless cash out



Quick Facts

• eWallet services was launched in October 2009.

• As at December 2011 close to 350 000 eWallets had been created.

• In December 2010 alone, more than R60,000,000 was sent to cellphones with FNB eWallet



eWallet Growth



Mobile success factors• Banks are able to provide low cost digital infrastructure,

minimizing reliance on bricks and mortar infrastructure:

• More affordable for the bank.• Provides accessibility, convenience and affordability for the customer.

• Provides the evolution of additional multifunctional financial services required by the African market.



Key learnings• Mobile is not novel anymore – it is a necessity• Mobile is the most direct access to customers at the lowest cost• Architect for volumes

o Transaction volumeso Operator partnershipso Scalabilityo Maintenance

• It is not just about technologyo User interfaceo Safety o Customer support

• It’s a continuous and fast-paced evolution



The world is mobile

• 6.8 Billion is the world population

• 1.9 Billion Internet subscribers

• 5 Billion Cellphone subscribers

Source:Internet world statisticswww.internetworldstats.com



Thank You

Questions?

efficiency through mobile technology

Technology

mobile technology source

fnb sent79

fnb recorded2

mobile phone

mobile technology multibearer

fnb cellphone banking

mobile technology sms

mobile technology mo