MK GROUP HIGHLIGHTS 2016

1. More than 50% revenue of MK Smart comes from exports. Vision of MK Group in the

period of 2016-2020 is reaching out to the international market, becoming the leading company in Southeast Asia in the field of authentication and secure transactions and card personalization, which gradually become a reality.

2. MK Group repositions international brand. MK Group repositions itself as a provider of secure authentication and secure transactions solutions with a variety of products such as: KeyPass OTP authentication solution, PKI authentication solution, PKI Smart Card, Token PKI, biometrics authentication (facial and fingerprint), loyalty point solution (MK Point+), prepaid solution (MK Pay+), etc.

3. Focus on research & development of secure authentication and secure transaction. Along with repositioning international brand, MK Group also focuses on research & development of advanced software products in the field of secure authentication and secure transactions.

4. MK Group to be awarded with Sao Khue 2016 (Vietnam’s prestigious software award)

for its KeyPass OTP solution “Soft Token KeyPass OTP authentication solution” for online transactions developed by MK Group is honored to be awarded with Sao Khue 2016.

5. MK Smart factory extends its production capacities. In order to meet the growing demands of customers worldwide, MK Smart has invested a significant amount to expand its production capacities.

6. MK Smart achieved the 1st license from Government Encryption Department for manufacturing and trading civil encryption products. With this license, MK Smart is eligible to manufacture and trade PKI Smart cards, applied in various areas, such as telecommunication, finance and banking, government.

7. MK Group becomes member of FIDO Alliance and OATH. The membership in the leading non-profit organizations specializing in authentication technology in the world enables MK Group to access to the latest advanced technology standards and ceaselessly improved its authentication solutions.

8. MK Smart is among of top 50 leading IT companies in Vietnam for the third time for

three consecutive years. This asserts its strong position in the IT field in Vietnam, strengthens its brand reputation in IT field in Vietnam and in the region.

9. MK Group participates in various events in the field of Finance – Banking, Telecommunication and Security in Vietnam and in the region with Event Visitor Managemnet, Access control, Event ID card, etc.

10. Numerous training, teamwork activities and voluntary programs have been

extensively built in MK. These activities not only strengthen MK culture but also are great opportunities for MKers to have better understandings of each other, in order to jointly conquer challenges in the future.

SBV works to prevent credit

fraud

Entrust Datacard provides innovative solution for printing and affixing fully customized labels to personalized cards

Visa looks to kill passwords

with multiple biometric

authentication

Growth in global payment cards driven by expansion of banked population

All information and images in this internal magazine were collected and edited from different sources by MK Group

and used only for knowledge sharing purposes.

Copyright© 2017 by MK Group

www.mk.com.vn | contact-mk@mk.com.vn | www.facebook.com.vn/mkgroup1999

Internal Newsletter of MK Group – Trusted partner for Smart Card products, Card personalization, Authentication and Secure transaction solutions

Issue #8

January 2017

Wish you have

A Happy & Secure

Lunar New Year 2017

VIETNAM NEWS Copyright©2017 by MK Group | www.mk.com.vn | contact-mk@mk.com.vn

On 30th November 2016, SeABank in

collaboration with BRG Group launch

international co-brand card named

SeAGolf Platinum especially for golfers

with various incentives, i.e. credit limit

up to 200 million VND, the higher

purchase volume, the lower interest rate,

discount golf fee & service fee at BGR,

served by foreground banking service

SEAPremium.

Since 8th December 2016, ACB has added

Momo Wallet feature on ACB Online for

students. When they link their ACB

account with Momo Wallet, they will

have additional facilities, such as: book

and buy tickets at Galaxy Cinema, BHD

Cinema, transfer money between Momo

wallets, purchase card code of

MegaCard, FPT Play, etc.

From now on until the middle of

February 2017, TPBank launches

promotional program named “Welcome

new year with TPBank credit card” for

TPBank Visa and TPBank World

Mastercard cardholders with multiple

incentives, such as: fashionable suitcase,

restaurant vouchers or online shopping

e-vouchers.

From 20th December 2016 until 19th

March 2017, Eximbank rolls out

preferential program for cardholders of

Eximbank-Visa Auto card with various

incentives. The total reward of the

program is up to 240 million VND.

(Collected from Internet)

Smart Financial Cards

Magnetic Stripe Card, EMV Card (contact/contactless, dual-interface,

hybrid), ATM card, debit card, credit card, prepaid card

EMV migration solutions

Card personalization solutions

Consultant – Technical support services

Vietnam Bank & Finance News

The State Bank of Viet Nam (SBV) instructed concerned agencies and organizations to keep a strict check on the use of credit cards to prevent false transactions. In a move aimed at keeping the credit card market safe so it develops healthily, the SBV issued Document directing card issuers, card payment organizations, payment intermediary organizations and SBV’s branches across the nation to prevent the use of credit cards in sham transactions, in which card-accepting units permit card holders to withdraw cash via points of sales (POS) without making any real transactions related to the sale or purchase of goods and services. Such kind of transactions are prohibited under Viet Nam’s law as they are a risk and can negatively affect the healthy development of the country’s credit card market. To manage the card market better, the central bank has asked card issuers and card payment institutions to scrutinize and select only reliable card-accepting units. Then, they have to closely monitor credit card transactions to avoid sham transactions. Before issuing credit cards to customers, these agencies must conduct a comprehensive assessment and scrutiny to meet the country’s legal regulations on granting credit. The central bank has prohibited payment intermediary organizations from providing services for pretended transactions. The SBV has also asked card issuers and card payment institutions to raise awareness among people about false transactions and other frauds related to card and electronic payments. Besides raising people’s awareness about pretended transactions and following a non-cash payment policy, the SBV’s branches must regularly conduct inspections to uncover violations, the central bank said.

(Bizhub.vn)

SBV works to prevent credit fraud

Copyright©2017 by MK Group | www.mk.com.vn | contact-mk@mk.com.vn

Financial card (ATM card, credit/debit card)

Prepaid card, warranty card

SIM card

PKI carrd

THE NEW COLOR LABEL PRINTING MODULE FOR DATACARD® CARD

ISSUANCE SYSTEMS AND THE DATACARD® CARD DELIVERY SYSTEM

ALLOWS FOR PERSONALIZED, FULL-COLOR LABELS WITH HIGH

RESOLUTION IMAGES TO BE AFFIXED INLINE

Entrust Datacard, a leading provider of trusted identity and secure transaction

technologies, has announced the release of the Color Label Printing Module for

the Datacard® MX8100™, MX6100™ Card Issuance Systems and the Datacard®

DX5100™ Card Delivery System. The all-in-one label printing and affixing

module, powered by Memjet inkjet technology, prints full-color, edge-to-edge,

high resolution – 800 dpi – images, text and graphics on blank white label stock

and affixes customized labels to cards inline. The solution is the first all-in-one

color printing and affixing label module available on the market.

With this module, marketing professionals can create individualized labels for

each card personalized on the card issuance system or affixed to a carrier on the

card delivery system. This allows for flexibility in marketing campaigns and a

personalized consumer experience through high resolution visuals and targeted

information. For financial card issuers and government agencies, the labels

provide an opportunity to inform consumers about additional products, solutions

or services available to them based on their demographic information.

“This new module provides our customers with the ability to customize each and

every label they print, thereby enhancing their consumer’s experience,” said Dan

Good, vice president, bureau solutions for Entrust Datacard. “The high-quality

printing, coupled with the ability to change the message, image and to include

personal information on each and every label – all while increasing operational

efficiency is a win-win.”

In addition to allowing flexibility in marketing messages, the module helps to

increase operational efficiency by removing the need for pre-printed labels. Labels

are personalized based on cardholder information and an integrated vision

tracking system ensures card-to-label integrity.

(EntrustDatacard)

MK Smart – member’s MK Group is a pioneer manufacturer of card

industry in Vietnam, typically smart card in finance sector

Certified by

Member card, loyalty card

ID Card

CARD & PAYMENT NEWS

Oz telco lets you pay for your coffee with your coffee cup. The movement to turn every object on the planet into a contactless payment device continues with Australian telco Optus sticking an NFC chip in coffee cups. A chip in the base of the $39.95 cup lets customers make payments of up to $100 at payment terminals that accept Visa payWave.

Dutch mobile-only bank Bunq is securing customer log-in with a biometric form factor that requires customers to present four fingerprints to access their data, which has a higher level of precision and reliability for authentication than other biometrics to guarantee an easy-to-use and safe banking experience in which users have access to real-time data.

Mobile-only bank Pepper goes interactive to win over millennials to its new mobile-only offshoot Pepper by teaming up with digital authoring platform Playbuzz to bring personalized, interactive content to its app.

NatWest is placing contactless charity

collection tins in 13 of its branches in

support of the Royal British Legion's

Remembrance Day Poppy Appeal. The

trial uses a tin and doubles up as a

contactless terminal so users can donate £2

per tap.

Commercial Bank of Dubai to launch

digital-only bank, dubbed CBD NOW, targeting millennials and tech-savvy customers in the UAE in early 2017 to enable customers to conduct all of their financial affairs via a smartphone.

(Collected from Internet)

Entrust Datacard Provides Innovative Solution for Printing and Affixing Fully Customized Labels to Personalized Cards

Bank & Finance News

Financial card (ATM card,

credit/debit card)

Prepaid card, warranty card

Member card, loyalty card

ID Card

Visa looks to kill passwords with multiple

biometric authentication options

CARD & PAYMENT NEWS

Copyright©2017 by MK Group | www.mk.com.vn | contact-mk@mk.com.vn

Visa is stepping up its efforts to kill off the password, teaming up with BioConnect to bring multiple biometric authentication options to a single app. The emergence of mobile phones with

fingerprint sensors and high-quality

cameras has ushered in a new era of

biometrics, enabling millions of people to

make payments and access their bank

accounts with the press of a button or scan

of their iris.

But, Visa SVP of risk and authentication

products, Mark Nelsen, notes users still

have the option to bypass biometrics with

a password or PIN, which results in a

weak link the security chain.

"Today, the “password bypass” is a

necessary design feature. A fingerprint

sensor might not work when your finger is

wet; facial recognition may fail in extreme

lighting; and voice detection is difficult on

a noisy subway platform. In those

scenarios, there must be an alternative

method for users to access their account,"

writes Nelson.

To remove the weak password link, Visa

is working with vendor BioConnect on an

app that uses multiple biometric

technologies so that when the default

option fails, a user can just switch to

another.

The app also works across multiple

devices, says Nelson: "Getting a new

gadget is fun. But manually reloading

your payment information and login

credentials so you can use your new

gadget? Not fun. Our collaboration

introduces an elegant alternative, one

that, for example, enables your newly

downloaded mobile banking application

to identify and authenticate you by using

one of your previously enrolled

biometrics.

"Because the technology can work across

multiple devices, you would simply sign

in using the biometric to gain access to

your data, without need for a keyboard,

password, or setup—all possible in the

first few moments of unwrapping your

new device."

(Finextra)

1 in 3 cars to have

biometrics by 2025

The report by Frost and Sullivan states that increased cooperation between car and biometric OEMs is accelerating the process. According to the study, one in three new passenger vehicles will feature one or more biometric features by 2025, such as fingerprint recognition, iris recognition, voice recognition, gesture recognition, heart beat monitoring, brain wave monitoring, stress detection, fatigue monitoring, eyelid monitoring, facial monitoring and pulse detection. These will be driven by built-in, brought-in and cloud-enabled technologies. Brought-in biometrics will play a key role in the future of in-car health, wellness and wellbeing monitoring. Built-in biometric technologies will primarily drive advanced driver-assistance systems and vehicle security, and cloud analytics will generate actionable insights and send notifications during emergencies. Biometrics in vehicles is expected to show a compound annual growth rate of 38.3% up to 2025. The Frost & Sullivan study found that the cars of the future will use biometrics to authenticate an individual, as well as to identify individual behavior patterns. The data will, for example, be used to automatically adjust the car’s seat height, steering position and rearview mirror, as well as play favorite music and retrieve health records. Behavior patterns of multiple users can be stored. Biometrics such as fingerprints, palm vein, facial recognition and heartbeat detection will be used for vehicle security.

(Planetbiometrics)

DATACARD® CARDWIZARD® ISSUANCE SOLUTION

Instant Advantage – Instant Revenue

ATTRACT New Cardholders

INCREASE Revenue Opportunities

STRENGTHEN Program Security

Copyright©2017 by MK Group | www.mk.com.vn | contact-mk@mk.com.vn CARD & PAYMENT NEWS

Global Payment Cards Data and Forecasts shows that the Middle East and Africa (MEA) and Asia-Pacific were the fastest growing regions for payment cards in 2015, with card numbers up by 13% and 10% respectively. Underlying this double-digit growth are financial inclusion measures, such as digitalization of salary and government benefit payments, which have yielded positive results. Forecasts show that the number of cards worldwide will rise 28% from 13 billion at the end of 2015 to 17 billion by the end of 2021. With projected growth rates of 49% and 35% over this period, MEA and Asia-Pacific will continue to be the fastest expanding regions. “Although the growth rate in the number of cards worldwide is slowing down, there are several large markets which still have considerable potential,” explains Chris Herbert, RBR Senior Associate.

Growth in global

payment cards driven

by expansion of

banked population

“For example, there are comparatively low levels of bank account and card holding in India, Indonesia, Nigeria and Pakistan, and therefore huge numbers of possible new clients who have not yet entered the banking system.” Debit cards will contribute the majority of growth Debit cards make up 70% of payment cards globally, up from 68% in 2014. As unbanked individuals in emerging markets continue to enter the banking system, it is in the debit sector that we will see most growth, as it is debit cards that are normally issued when a person opens a current account. By 2021, debit cards are forecast to represent 72% of all payment cards. Credit card numbers impacted by regulatory and economic factors The number of credit cards worldwide rose by 2% in 2015, but their share of total cards fell by a percentage point to 22% and is expected to fall further, to 19%, by 2021. The interchange fee regulation enforced across the EU in December 2015 typically lowered interchange for credit cards more than for debit cards, and this has impacted issuance of credit cards in many countries there. In the Netherlands, for example, credit card interchange was a major source of revenue for banks, but some now appear to be discouraging customers from taking out credit cards because the caps have reduced their profitability. In countries, such as Russia, the fall in the number of credit cards is directly related to economic uncertainty as banks often respond by tightening eligibility requirements and increasing interest rates in such circumstances.

(Paymentscardsandmobile)

Copyright© 2017 by MK Group

www.mk.com.vn | contact-mk@mk.com.vn | www.facebook.com.vn/mkgroup1999

Hanoi: F11th, TTC Tower, 19 Duy Tan Str., Cau Giay Dist., Hanoi, Vietnam | Contact: (84-4) 6266 2703 (ext: 117)

Ho Chi Minh City: F7th, Thien Son Building, 5 Nguyen Gia Thieu Str. , District 3, HCMC, Vietnam | Contact: (84-8) 3930 5023

Thank you for your interested in MK Group’s newsletter!

LEADING WORLD TECHNOLOGY FOR EMERGING MARKETS