Marketeye: January 17 - 31 2008
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Savantor MarketEye: January 17 - 31 2008 Savantor Limited 68 Lombard St London EC3V 9LJ This is a confidential, high-level industry news and business intelligence Tel: 0870 734 6250 Fax: 0870 734 6251 update bulletin. For further information on any of the items contained email: [email protected] within the bulletin or to discuss the potential impact of these items on www.savantor.com your business, please contact Savantor on our dedicated support centre e-mail address ([email protected]). Click on the links below to see back copies of MarketEye or view Savantor Resourcing services Items in this issue: UK online sales increase.................................................. 3 Savantor’s Views.....................................................1 FBI warns of rise in vishing attacks .................................. 3 Products and Initiatives..........................................2 PBS signs 117 banks to Sepa direct debit offering .......... 4 New UK local loyalty card ................................................ 2 NatWest most targeted by phishers ................................. 4 ICICI Bank introduces mobile banking application........... 2 SEPA goes live................................................................. 4 Monitise launches NFC-based payments platform .......... 2 Outsourcing, Acquisitions and Deals....................4 First Direct on Safari ........................................................ 2 IBM wins Allied Irish deal.................................................. 4 LTSB introduces Shariah compliant money transfer Atos Origin signs LV= IT outsourcing deal ....................... 4 account............................................................................. 2 VocaLink to manage HSBC ATMs in convenience Nationwide Building Society introduces Xiring Personal stores................................................................................ 4 Card Readers................................................................... 2 Germany's cadooz selects First Data for pre-paid card Market News and Views..........................................3 processing ........................................................................ 5 Increase in adoption of alternative payment methods ..... 3 PayPal to acquire Fraud Sciences ................................... 5 BBC News names NFC one of Five Top Technologies HBOS signs for SAS card fraud detection technology ..... 5 for 2008............................................................................ 3 Savantor’s Views Improved operations management is fast becoming a greater priority for financial institutions due to a variety of factors e.g. • need for banks to meet new regulatory requirements • pressure to become SEPA compliant • pressure to reduce costs across the banking value chain, leading to increasing importance from scale economies, e.g. in processing • expensive and extensive legacy system replacements/upgrades are required to cope with increasing volumes, electronic channels and new standards • the credit crunch of 2007 and the resulting market turmoil have put processes under increasing stress To manage the cost of operations in the future, processes will have to improve: • To provide better measurement – Some organisations still rely on largely qualitative assessments of operational risks. Without quantification an organisation will fail to take a prioritised approach to managing risk events as they occur. • To provide better management – line management require information that is faster and more accurate to help improve their decision making. They need process that are more flexible and can respond quickly to changing needs. To meet these demands, systems and processes will have to evolve to become smarter. Independent reviews which are timely and cost effective and can quickly identify weak points and actions to resolve them can provide the service financial institutions are looking for. Registered in England No. 3420260 Registered office: 8/10 South Street, Epsom, Surrey KT18 7PF VAT Registered No. 689136196 Whilst Savantor Limited (“Savantor”) has used reasonable efforts to obtain information from sources which it believes to be reliable it does not make any representations or give any warranties or guarantees that the information provided or any opinions expressed herein are accurate, reliable or complete and none should be relied upon as statements of fact. In no event, including (without limitation) negligence, and in no circumstances will Savantor be liable for any loss or damage of any kind whatsoever, including (without limitation) any direct, special indirect or consequential damages, caused by the use of or reliance upon information provided or opinions expressed herein. Savantor · Confidential 1 Savantor MarketEye: January 17 - 31 2008 Products and Initiatives New UK local loyalty card A local loyalty scheme called Wedge is designed to increase business for independent stores by raising the profile of local retailers in the run up to the 2012 Olympics. The card will be given away to attendees of the East Festival in London during March. Holders of the card receive discounts of 10 – 50% and special offers from music and entertainment venues. Up to 50% of the profits go to charity. Wedge’s founders will not do business with a concern that has more than 10 shops. There are currently 24,000 cards in use and 600 retailers involved. (Source date: 20th January, 2008) ICICI Bank introduces mobile banking application India's ICICI Bank has launched iMobile, a mobile banking platform that enables customers to use their handsets to transfer funds and pay bills. The bank says the free service enables customers to transfer funds from ICICI savings, credit card and loan accounts using their mobile phones. Money can be sent to ICICI accounts as well as those held with other institutions. Customers can also use their handsets to pay utility bills and insurance premiums. Customers who are registered for mobile alerts from the bank can download the application by sending an SMS. Those that have a GPRS connection will then receive a WAP link for activation. Customers without GPRS can download the application from the bank's Web site on their desktop before transferring it to their handset. (Source date: 21st January, 2008) Monitise launches NFC-based payments platform Monitise has announced the launch of MoniTrust, its platform for Near Field Communication (NFC) payments and ticketing. The service integrates to Monitise's live multi-bank, multi mobile operator mobile banking and payments ecosystems (MONILINK in the UK and Monitise Americas in North America) providing a delivery framework for contactless payments using the mobile handset. Through a single connection to MoniTrust's open platform, participants can enable their consumers to manage their bank accounts, card accounts, mobile wallets, transport and ticketing applications in the contactless environment in a consistent way whether it is requesting a card to be loaded onto your mobile, checking a balance before making a contactless payment, paying for a travel season-ticket from a bank account and loading it into your mobile, or topping up a child's school meal allowance on their mobile. (Source date: 24th January, 2008) First Direct on Safari First Direct is now offering its online banking services through Apple's Safari Web browser, as well as on the recently launched iPhone and iPod Touch. The service became fully compatible with Safari last week, while it's been available on the iPhone and iPod Touch since their respective UK launches. Just under 80%of First Direct's customers bank online and 87% of all transactions are carried out online. Around 10% of the customer base uses Apple Macs- a higher proportion than other banks, according to First Direct. (Source date: 24th January, 2008) LTSB introduces Shariah compliant money transfer account Lloyds TSB has launched a Shariah-compliant nostro account that enables customers to transfer money around the world in line with Islamic principles. The new account does not pay interest or provide an overdraft facility, in line with Shariah law. In addition, the account prevents any funds being invested in industries - such as alcohol and gambling - that are prohibited under Islam. Lloyds TSB says the account, which is aimed at the UK's two million Muslims and 100,000 Muslim firms, is the first of its kind to be offered by a mainstream western bank. (Source date: 24th January, 2008) Nationwide Building Society introduces Xiring Personal Card Readers Nationwide has decided to be amongst the first to implement the next generation of fraud prevention technology. Xiring has supplied Nationwide with over one million card readers. The Xi-Sign 4000 APACS from Xiring is a portable, unconnected smart card reader that provides an extra layer of security for customers by authenticating both them and the transaction. The user inserts their Visa debit card into the card reader, enters their four-digit PIN number, and enters a reference number (an eight digit SavantorSavantor Ltd. · Confidential Confidential Page 2 2 Savantor MarketEye: January 17 - 31 2008 number) provided by the online bank. The reader then displays an eight digit pass code to be entered onto the Internet Bank to confirm the transaction. This unique code is only valid for one transaction and cannot be re-used. Full deployment services of these readers direct to the end users will be provided by Xiring during the spring 2008. (Source date: 30th January, 2008) Market