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Mobile Application:Mobile Banking – PDA Project
Subjects
BANCO DO BRASIL Brazil The “Banco do Brasil” Mobile phone service Mobile Project Available Platforms Next steps
CITIBANK BRAZIL
Citibank - Brazil
Why wireless technology?
How it was born
Main Benefits
Investments / Payback
Brazil
The “Banco do Brasil”
Mobile phone Service
Mobile Project
Available Platforms
Next Steps
Gabriela Zinn Salvucci
Subjects
Population – 184,1 million inhabitantsPopulation – 184,1 million inhabitants
Produto Interno Bruto – R$ 1,500 billiionProduto Interno Bruto – R$ 1,500 billiion
PIB per capta – R$ 9,1 thousandPIB per capta – R$ 9,1 thousand
Telephones quantity – 41,4 millionTelephones quantity – 41,4 million
Cellphones quantity – 76,6 millionCellphones quantity – 76,6 million
Internet home users – 18,5 millionInternet home users – 18,5 million
Broadband connections – 3,1 millionBroadband connections – 3,1 million
Summary of Brazil
Brazil
The “Banco do Brasil”
Mobile phone Service
Mobile Project
Available Platforms
Next Steps
Subjects
Leadership in assets – R$ 233,7 billion.Leadership in assets – R$ 233,7 billion.
1st in total deposits – R$ 154 billion.1st in total deposits – R$ 154 billion.
Greatest credit portfolio – R$ 96,1 billion.Greatest credit portfolio – R$ 96,1 billion.
Greatest service-delivery network in Brazil – 14,6 thousand service Greatest service-delivery network in Brazil – 14,6 thousand service outlets.outlets.
Greatest ATM network in Latin America – 39 thousand terminals.Greatest ATM network in Latin America – 39 thousand terminals.
Greatest client base: 21,9 million.Greatest client base: 21,9 million.
Network abroad – Network abroad – 37 branches.37 branches.
Leader in Internet services – 6,9 million clients.Leader in Internet services – 6,9 million clients.
Leader in the management of third-party resources – R$ 144,8 billion.Leader in the management of third-party resources – R$ 144,8 billion.
Leader in the foreign-exchange and export commercial segment – Leader in the foreign-exchange and export commercial segment – 27,9% market share.27,9% market share.
Leader in credit and debit card billing – Leader in credit and debit card billing – R$ 11,1 billion.R$ 11,1 billion.
Main financial agent for agrobusiness.Main financial agent for agrobusiness.
Source: Banco do Brasil Report Performance Analysis and Accounting Statements 2005 of Performance Banco do Brasil – 2st quarter of 2005
“Banco do Brasil”: Figures that foster development
Brazil
The “Banco do Brasil”
Mobile phone Service
Mobile Project
Available Platforms
Next Steps
Subjects
Argentina Chile
México
Source: Agências Regulatórias, Ministérios e Operadoras Internacionais – publicado no Site Teleco
4
5
6
7
8
9
2001 2002 2003
Population: 37 milhõesCellphones : 8,3 milhões
Participation: 22% México0
2
4
6
8
1999 2000 2001 2002
Population : 15 milhõesCellphones : 7,3 milhões
Participation : 50%
China
0
50
100
150
200
250
300
1998 1999 2000 2001 2002 2003
Population : 1,3 bilhãoCellphones : 257 milhões Participation : 20%
Phones Cellphones
0
10
20
30
40
1995 1997 1999 2001 2003
Population : 103 milhõesCellphones: 30 milhões Participation : 29%
International Mobile phones market share
0,00 0,01 0,03 0,19 0,76 1,42 2,74 4,557,37
15,03
23,19
28,75
34,88
46,37
65,61
89,00
0
10
20
30
40
50
60
70
80
90
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Brazil is the 5th mobile phones market share in the world and the 2nd in America (1st USA).Brazil is the 5th mobile phones market share in the world and the 2nd in America (1st USA). 38 cellphones for 100 inhabitants (Distrito Federal level = 101).38 cellphones for 100 inhabitants (Distrito Federal level = 101). 80% prepaid cellphones.80% prepaid cellphones. 11,2% of the families have cellphones as the only way to comunicate (IBGE)11,2% of the families have cellphones as the only way to comunicate (IBGE)..
Source: Anatel2005 – Estimate from “Teleco”
89 MILLION CELLPHONESESTIMATE FOR DEC/05
Brazilian mobile phones market share
Brazil
The “Banco do Brasil”
Mobile phone Service
Mobile Project
Available Platforms
Next Steps
Subjects
The increase of cellphones users.The increase of cellphones users.
Mobile Banking has a greater potential in terms of market penetration.
compared to Internet Banking, mainly for the low level population.
New mobile technologies advance, which provides secutrity and performance New mobile technologies advance, which provides secutrity and performance
requirements.requirements.
Searching for safe, comfort and low cost self-service channels.
The successful case in BB using alternative channels.The successful case in BB using alternative channels.
86%89%
90%
2002
Agency transactions
83%
2003 2004 2005
Alternative Channels
Why Mobile Project was created at “Banco do Brasil”
Aug/2000 SMS messages project release
Mobile Banking service using WAP 1.0 platform release
Sep/2003 Mobile Banking was released in partnership with Mobile GSM Operator
(Telemar/Oi) (pioneer in using GSM platform – the begginning of a complete mobile banking)
Sep/2004 Mobile Banking was released with the “Brasil Telecom” GSM Operator
(pioneer in using dinamic menus template)
Mar/2005 Mobile Banking was released with the VIVO operator
(pioneer in using download banking template with the CDMA/Brew Platform)
Mobile Banking at “Banco do Brasil”
More convenient and safe transactions.
Cost reduction – migration or evolution to low-cost
mobile channels.
Mobile Banking is available anywhere in Brazil.
Does not represent a cultural or economic barrier for
new users of electronic banking. It’s easier to learn to
use and to buy the cellphone than the PC.
Advantages in using Mobile Banking
Internet Banking
Mobile Banking
R$ 1.500,00
R$ 52,90R$ 38,00 + R 14,90
Telephone contract + internet provider
R$ 0,33**at least 12 minutes using Internet
4 minutes cost: R$ 0,11
R$ 149,00 Varejo
R$ 1,00 Corporate
R$ 37,90Oi contract 40
R$ 49,90Corporate Oi
contract
DEVICE
COMUNICATION
TRANSACTIONS R$ 0,15/Trans.
R$ 0,15/Trans.
Users costs
¿Why using Mobile Banking?
Account balances
Account extracts
Savings balance
Payment of accounts and bills.
Transfers between “Banco do Brasil” accounts.
Transfers between accounts from other banks.
Prepaid cellphones credit recharge.
Donations for “Fome Zero" program.
Loans.
Bank account holder can achieve the following transactions
Participation % of transactions
Prepaid recharges21,45%
Account balance35,26%
Transfers betw een BB accounts
2,67%
Transfers betw een BB and other banks
0,13%
Others0,27%
Payments1,27%
Savings balance0,16%
Account extract38,79%
Mobile Banking BB – transactions access
Mobile Banking BB - Performance
Brazil
The “Banco do Brasil”
Mobile phone Service
Mobile Project
Available Platforms
Next Steps
Subjects
Each Chip has a BB key to develop criptography.Each Chip has a BB key to develop criptography. Only BB can has access to information sent by customers.Only BB can has access to information sent by customers. All transactions use short message system (SMS) to carry information forward “Banco do All transactions use short message system (SMS) to carry information forward “Banco do
Brasil” and the operator.Brasil” and the operator. No Internet connection required.No Internet connection required.
Oi chip sample, which holds the mobile banking solution of “Banco do Brasil”
GSM Platform (SIM Card)
Vivo/Brew
2nd mobile banking case in the world and 1st
being used.
The solution was one of the greatest finalists at
the Brew Developers 2005 award, which
chooses the best and most innovate projects
developed using wireless technology.
How to use: download the application at the
Vivo Operator website, using the cellphone.
Safe transactions that use peer to peer
criptography.
CDMA / Brew Platform
Used both in GSM and CDMA platform cellphones.
The customer connects to the Internet WAP2 website of “Banco do Brasil” to have access to the bank account, or through the Operator website.
WAP2 platform provides Internet security, through proper mobile devices criptography (based in SSL).
WAP 2.0 Platform
Operator accepts cellphone number and
sends an SMS containing the transaction
information to the customer
Customer receives SMS containing information about the transaction
performed at the alternative channels
“Banco do Brasil” performs the
transaction asked by the customer and
returns information to the operator
Customer performs any transaction through
any alternative channel
SMS Banking Platform – sending information
Operator accepts cellphone number and sends information to
“Banco do Brasil”
Customer sends SMS asking for a Ballance (B),
an Extract (E) or a Recharge (R)
“Banco do Brasil” performs transactions
asked by the customers and returns information
to the Operator
Operator delivers the information and/or confirmation of the
transaction
Customer receives SMScontaining the Balance or Extract information
or Recharge confirmation
SMS banking can be used through any cellphone, regardless of the technology SMS banking can be used through any cellphone, regardless of the technology
and/or platform.and/or platform.
It’s a perfect platform to the most usual and low complexity level transactions.It’s a perfect platform to the most usual and low complexity level transactions.
SMS Banking Platform – ask for transactions
Brazil
The “Banco do Brasil”
Mobile phone Service
Mobile Project
Available Platforms
Next Steps
Subjects
Make solution enabled for other Mobile Operators in Brazil.
SMS Banking:
Prepaid recharges through SMS project (still going)
SMS alerts (tests still going)
Mobile payments (still being studied)
Next Steps…
¿Any Questions ?
Citibank - Brazil
Why wireless technology?
How it was born
Main Benefits
Investments / Payback
Rogerio Vargas
Subjects
Continents
Countries
Currencies
Employees
190 years in the World
5
102
128
230,000US$ 700 bi
US$ 1,232 millionTotal Assets
Net Equity
Presence in the World
Presence in Brazil
Customers
Employees1.1 million
2,30010
51
US$ 5 bi
Cities
Branches
Total Assets
Citi has been present 90 years in Brazil.Business: Banking Area, Cards and Finance.
The 2nd biggest business card in the world (outside of the USA).
Citi has been present 90 years in Brazil.Business: Banking Area, Cards and Finance.
The 2nd biggest business card in the world (outside of the USA).
Citibank - Brazil
Why wireless technology?
How it was born
Main Benefits
Investments / Payback
Subjects
44
5 5 5
9
13 13
1113
1415 15 15
14
-5 -5 -5-7
-5 -5 -5 -5 -5 -6 -6-7 -7 -7
14
-7-6
148
148
148
147
146 15
0 159 16
7 173 18
0
192
229
222
207
21520
0
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
40
90
140
190
240New DDA Accounts Attrition EOP DDA Net
2002 2003 2004 2005
Current MYF
Why was the Direct Sales created ?
Started with 110 people and today more than 400 people.
We are present in 10 cities in Brazil.
The core of Direct Sales Area is to bring in new customers (created Jan/2003).
This business is done totally out of offices (wireless solution).
Main strategic objectives:
1. To develop an acquisition model.
2. To multiply the initial structure.
A few words about this business area…
Belo HorizonteSavassiMangabeiras
RecifeBoa Viagem
Ribeirão Preto AssembléiaIpanemaTijucaBarra da TijucaIpanema IIRio Office ParkBotafogoLeblonNiteróiJd,. Botânico
CuritibaBatel
SalvadorFarol da Barra
BrasíliaAsa SulLago Sul
Campinas
PaulistaIpirangaMoemaFaria LimaLapaTatuapéVila MarianaWTCHigienópolisPinheirosSumaré Real Park Mooca JKCampo BeloAlphavilleJardim EuropaBerriniSantanaChac.Sto.AntonioIndianópolisSto AndreV N Conceição
June 2005June 2005
MoinhosCarlos GomesSete de Setembro
Opened before 1998 (22)
Opened in 1998 (04)
Opened in 1999 (03)
Opened in 2000 (05)
Opened in 2002 (02)
Opened in 2003 (00)
Opened in 2004 (08)
Opened in 2005 (03)
TOTAL in 2005 (50)
What cities is the Direct Sales present?
What’s the importance of Direct Sales for the retail Citibank Brazil ??
The Direct Sales Area…
In 2 years the Direct Sales brought more than 77,000 customers, 40% with
monthly salary over US$ 3,000. And more ….
In 2 years it has achieved 9% share in the total revenues
of retail Citibank Brazil.
This area has 30% of Sales Managers and brings ...
70% of new customers
55% of new cards
22% of volume of personal loans
15% of volume of life insurance
15% of volume of on-shore investments
There are 5 steps in the People Pillar:
To implement this strategy, we need TECHNOLOGY.
To be able to multiply the initial structure several times, we need TECHNOLOGY.
To have information and communication (foundation to develop people), again only
with TECHNOLOGY.
INFORMATION COMMUNICATION INNOVATION ENTREPRENEURISM
KNOWLEDGE
Why Wireless Solution…
The Strategy of Direc Sales Area is based on 3 pillars:
1. People1. People
2. Process2. Process
3. Control & Quality3. Control & Quality
There are 5 steps in the People Pillar:
To implement this strategy, we need TECHNOLOGY.
To be able to multiply the initial structure several times, we need TECHNOLOGY.
To have information and communication (foundation to develop people), again only
with TECHNOLOGY.
INFORMATION COMMUNICATION INNOVATION ENTREPRENEURISM
KNOWLEDGE
The strategy of Direct Sales Area is based on 3 pillars:
1. PEOPLE
2. PROCESS
3. CONTROL & QUALITY
Why wireless solution…
Citibank - Brazil
Why wireless technology?
How it was born
Main Benefits
Investments / Payback
Subjects
The business area saw this opportunity through a competitor ...
Dec/2002:
We knew about a tool of a competitor with little development (only for data and no wireless)
Jan/2003:
We developed a wireless prototype with the following features:
1. Fill prospect’s information and send wireless
2. Follow-up sales performance.
3. Products Catalogue .
4. Messages: a communication channel real time.PLAY
How it was born…
The second most important step ... Find people in the Company with an
open-mind and empowerment.
Oct/2003:
Meetings with People with empowerment in Technology, Compliance, Legal and
Infosec to decide the development of this wireless solution and break paradigms. It
would be the 1st PDA application and the 1st wireless solution in CitiGroup in the world
(at that time, the PDA wasn’t recognized as equipment in Citibank, only desktops and
notebooks could be used).
How it was born…
The third most important step ... Look for companies with wireless know-how
to improve the knowledge of the Company.
Oct/nov 2003
Several meetings with companies to understand the technical feasibility of this wireless solution.
Dec/2003 Jan/2004
Opened bidding to vendors.
Feb/2004
Started the development of wireless solution.
Feb/2005
Put in production.
How it was born…
Citibank - Brazil
Why wireless technology?
How it was born
Main Benefits
Investments / Payback
Subjects
Reduce costs: Eliminates part of operational process and reduction of the whole
operation cycle-time.
(There will be no investment in assets from Citibank, all equipment provided in
“comodatum”). Improve business. e.g.: Tool for selling personal loan. More profitability: The sales managers have more time during each visit to offer
other products (Cards / Life Insurance / Investments) and enhance sales
productivity accelerating the activation process of the new customers.
Shareholder
Benefits
Clean Process. Paperless in mid-term with digital certification. Less bureaucracy. Without copies of documents in mid-term. Reduce time of opening banking account.
Customer
Development of People: Implement a quick and effective communication
channel. Development of People: Handling a high technology tool. Motivation: Provide in real time data and information to improve sales. e.g.:
Opportunities focusing on bulk acquisition such as niches and payroll
Companies.
Employee
CALL CENTER PROSPECT
SCHEDULING VISIT
PV
DATA RECEIVEDAGENDA, STATUS
MANAGER
MANAGER
UPDATES THE AGENDA OF PDA
EXCHANGEMESSAGES
VISIT
SENDS THE FORM
• CONSULT FORM• CONSOLIDATION DOCUMENTS
TO DO CHECKLIST OF DOCUMENTS
BUREAU CONSULTING
OPERATIONAL AREA
WEB
AUTHORIZINGMANAGER
EO
PROCESS AND INPUTFORM
DMS PM
DOCUMENTS LIST
UPDATE
FINCON
TYPINGMANAGER
EFFECTIVE
MAINFRAME
SUPERVISOR
REGIONAL MANAGER
WEB
How it works
Internet
Firewall Firewall
AuthenticationCryptography
Fusion-Sync Fusion Server
FusionDatabaseTELCOS
CryptographyAES
HTTPS SSL 3.0
GPRSCDMA 1xRTT
CryptographyAlgorithm
HTTPS SSL 3.0 HTTPS
SSL 3.0
CryptographyAlgorithm
CryptographyAlgorithm
Security application components
Database Cryptography Digital Certificates - SSL End to end transmission Cryptography Two different authentication processes Ethical Hacking Test (Vulnerability Assessment) Self destruction in case of loss, theft or a password mistake. User vs personal device (only a specific user ID can use a specific device) Kiosk (This application does not allow anyone to install, remove, download, change or use any other application different than the one defined by Citigroup policies and standards of information security)
How it works – Security Standards
This solution has the same security standards as other applications of Citibank.
Citibank - Brazil
Why wireless technology?
How it was born
Main Benefits
Investments / Payback
Subjects
Investment (Infrastructure / development): US$ 232,000
12 months
Costs per PDA
Cost per New Customer
Break-even
Payback
5 months
Additional Cost per new customer: US$ 6
Cost per PDA per month: US$ 100 (including: rent, fee software license, mobile bill)
Which are the investments…
¿Any Questions ?