2012 issue 18InternationalNewsletter

BPC supports nationwide rollout of ambitious projectPage 7

Client Conference New Channels New Opportunities 2012Page 6

BPC Banking Technologies Transformation Award 2012Page 3

www.bpcbt.comPage 2

SPOTlIghT: Latin America Using Modern Payment Systems to Power growth

SPOTlIghT: Latin America Using Modern Payment Systems toPower Growth

With deep business knowledge and practical experience BPC provides expert guidance to the regions banks.Page 2

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Spotlight:

latin America Using Modern Payment Systems toPower GrowthJorge Ruiz SVP Sales, BPC-Latin America

A considerable portion of the Latin American region still suffers from outdated legacy payment infra-structure, providing opportunities to make a difference in this market. BPC sees great perspectives in providing comprehensive, sophisticated, reliable and secure payment solutions to banks across the region. While broad function-ality is essential, the ability to manage the complex migration from the old to the new infrastructure is equally important. I know that SmartVista provides a very competi tive solution

as the banks consider the alterna-tives to modernize their infrastructure. Thanks to its modular architecture we can provide point solutions to meet

immediate business needs and bring a new system into production, extremely quickly, often in as little as 3 to 6 months. This means that Latin American banks can modernize their infrastructure quickly and seamlessly, rapidly bringing new services to their customers and improving their competitiveness.

Across Latin America today we see the improved automation of domestic and cross border payments which in turn brings greater transparency and a reduction in the cash economy. Additionally, local governments are encouraging the retail banks to extend the banking habit through the

provision of convenient and acces-sible banking services. In this regard mobile-commerce has a particularly important role to play, recognizing

that mobile phone penetration is near 100% in most countries. Electronic Payments Systems and banking trends in Latin America have been shaped by the regions financial environment where there are marked demographic variations from country to country. Banking penetration is driven in part by the age structure and spending power of the population. For example Mexico, Colombia and Venezuela have younger populations than Brazil, Chile and Argentina. Per capita income varies even more sharply across

the region and higher than average proportion of low income households results in less than 50% of the popu-lation across the region having any sort of relationship with a bank. Looking at Brazil, we see a country, where the banking industry has been at the fore-front of offering electronic payments and hence the population is quite accustomed to using more automated payment methods. In many ways the regions banking communities look to Brazil as a leader in the provision of modern payment systems.

EMV migration represents a major stra-tegic shift in the payments infrastructure and as such requires a high degree of collaboration between the banks. Brazil and Mexico are already well advanced in their migration and other markets are in the active planning phase. BPC has extensive experience with EMV migration around the world and many of our clients have received EMV certi-fication with our support. SmartVista has fully integrated EMV capabilities and represents an optimal solution for any bank or group of banks to take as part of their migration plans. With our practical knowledge we represent an expert resource to provide guidance to the regions banks on the complexities of EMV migration and certification. We are looking forward to playing our part in helping banks across Latin America transform their payments businesses.

We have a great opportunity since SmartVista is ready to provide everything this market needs and we have extensive experience helping our customers with projects.

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City, Panama. The nominees were judged by a panel, including selected board members and members of BPCs Executive Committee.

BPC Banking Technologies Transformation Award 2012

Working with 100 of the worlds most innovative organizations in more than 32 countries we have seen the extraor-dinary efforts our clients make to deliver outstanding products and services to their customers. As the market continues to evolve, with ever-increasing demands, new payment technologies and increased regulations our clients constantly impress us with the innova-tive ways they leverage BPC solutions to meet the needs and beat their competi-tors.The annual BPC Banking Technolo-gies Transformation Award is designed to honor the remarkable accomplish-ments of our clients.

The 2012 Award winners were announced at the BPC Banking Tech-nologies Client Conference in Panama

Recognizing the Innovative Use of Technology

This year winners were:

1. The Most Innovative Product went to Security Bank (Philippines) for innovative use of technology in launching new products and services to the Phi lippine market, as demon-strated by the eGiveCash product.

2. The Most Innovative Bank was given to SHB (Saigon Hanoi Commercial Joint Stock Bank) for their visionary and ambitious plans and choice of SmartVista to help them become a leading multifunc-tional retail bank by 2015.

3. SeverGazBank was honored with Award for Recognition of the Trans-formational use of IT.

Card Fraud Management Systems Technology Analysis recognizes Smartguard

to exceed US$10 billion per annum. During the last year the demand from financial companies worldwide for fraud prevention solutions both standalone and as part of end to end e-payments suites has been growing. In 2012 BPC implemented SmartGuard in banks and financial organizations across the world, from Kazakhstan to the USA. SmartGuard users have reported savings in excess of $1 million per month by using the solution.

CEB TowerGroup observed successful operations in developing countries that use the full range of products offered in the SmartVista suite and found the core functionality to be strong. SmartGuard is designed, not only to counter the growing threat from fraud, but to stop the fraud before it affects customers.

SmartGuard, an award winning fraud prevention solution, was highlighted by CEB TowerGroup in the companys latest Technology Analysis.

The Card Fraud Management Systems report evaluates the worlds leading card fraud management systems. To compile the exhaustive market review, CEB TowerGroup conducted a series of interviews and surveys with financial services executives, industry experts, and vendors regarding card fraud management technology.

Card and payments fraud is one of the biggest issues for the payment industry worldwide and the rates are constantly rising from region to region. Debit and credit card fraud is estimated by Visa and MasterCard

TELERED, PanamaAll international transactions flow with the payment networks Visa and MasterCard in Telered the largest payment processor in Panama are now being processed by SmartVista. This important milestone further confirms the strength of our implementation approach, an approach that delivers results for customers of all sizes. SmartVista is now live and is located between the legacy system and the payment networks, and later on the host interfaces and terminal devices will be reconnected from the legacy system to SmartVista.

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PT Artajasa has chosen to deploy BPCs advanced end-to-end e-payment transaction switch solution to support its ambitious growth strategy. Following a competitive bid process, where solutions from all the major international vendors were

evaluated, PT Artajasa chose SmartVista because of its unique combination of advanced technology, comprehensive functionality and ability to dramatically lower total cost ofownership.

to. Driven by a large population and a rapidly growing economy, Indonesian payment volumes are increasing rapidly up 41% in the last year alone.

Against this backdrop, SmartVista will enable PT Artajasa to expand its network secure in the knowledge that SmartVista will handle the growth with ease. And as new payment tech-nologies and methods come on stream, SmartVista will help the Company capitalize on the opportunities they create quickly and easily.

BPC will implement its SmartSwitch and SmartATM solutions, part of the end-to-end SmartVista suite of e-payments products. Supported by SmartVistas advanced capabilities, PT Artajasa can accelerate the execution of its far reaching strategy, including upgrading the network to issue and support chip-cards, while providing value-added services to cardholders. The Company will also benefit from a dramatically lower TCO, increased speed to market and high availability for mission critical on-line services. SmartVista has been benchmarked on HP NonStop and has been certified by HP as Converged Infra-structure (CI) Ready.

Additionally PT Artajasa will use Smart-Vistas comprehensive Point of Sale (POS) acquisition and management capabilities, as well in support of its m-commerce strategies.

SmartVista on hP NonStop in PT Artajasa (Indonesia)

SmartVista will be deployed as a new generation switch running on the HP NonStop platform interfacing to PT Artajasas current switching envi-ronment, BASE24 Classic. To improve their competitiveness and speed to market, PT Artajasa will draw on SmartVistas modern and flexible design to manage authorization and routing, originating through new channels. BPC will also implement its fraud management solution, Smart-Guard to stop fraud before it happens. Recognizing that effective fraud management can only be achieved through 100% real time transaction monitoring, SmartGuard, running on HP NonStop, will be deployed in the authorization data stream from both BASE24 Classic and SmartVista.

As a leading player in electronic trans-action services, PT Artajasa supports more than 37,000 ATMs, 63 million bank card holders and more than 70 banks throughout Indonesia. In keeping with the Companys mission

to make life simple SmartVista will enable the rapid introduction of new products and services specifi-cally tailored to meet customers needs, enabling them to access their finances when and where they need

ING Eurasia RussiaFollowing a migration process run by BPC, ING Bank has become our first processing centre partner, offering the following services for ING customers: processing, call centre services for cardholders, communication support services, technical support of the ATM networks. This will allow the bank to significantly reduce costs and to deliver new products and services, such as EMV cards, SMS alerts and more.

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Payment Express MauritiusThe first ever SmartVista on HP NonStop is now live. This imple-mentation demonstrates, yet again, that BPC delivers on its promises. SmartVista suite was chosen for its market-proven flex-ibility and scalability, enabling PeX to take control over the whole payment infrastructure, providing enhanced functional-ity, significantly reducing time to market when launching new products. BPC Banking Technol-ogies supports PeXs entire pay-ments business including card issuing, processing and acquiring, the control and launch of new channels and transaction flows to and from all the clients. BPC also provided a new ATM inter-face monitoring function, specifi-cally for the existing HP NonStop platform.

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Angelo Bertini appointed Managing Director in Middle East & North Africa

BPC Banking Technologies is pleased to announce the appointment of Angelo Bertini as Managing Director of BPCs operations in the Middle East and North Africa, where he will be responsible for developing and strengthening the companys growing business.

Mr Bertini brings over 18 years of payment expertise. Before joining BPC Banking Technologies, Angelo worked for ACI Worldwide since 2005 where he was the head of the Dubai Office as well as Senior Sales Executive focusing on the Middle East and North Africas countries. Before ACI, Angelo was the Vice President & General Manager MEA at S2 Systems, and earlier in his career, he was responsible for business development across the MEA region for Western Union.

New Product Launch SmartVista for Microfinance

also do it more cost-effectively. Previ-ously, collecting loan repayments required Hattha staff to travel door-to-door, now with SmartVista Hattha automated the process by broadening the services available through an enlarged ATM network. Customers are able to withdraw microloans at ATMs, enjoy remote access to their accounts as well as making repayments against their microloans. Initially these new and convenient services are only available through the ATM network but Hattha plans to offer the same facilities through mobile phones.

Recognizing the need to deliver conve-nience to customers, BPC provided enrollment and verification capa-bilities with the use of biometric ID functionality at the ATM to deliver cardless remittances. Not only this improves the customer experience but it reduces operational costs and the risk of theft.

BPC brings advanced payment solutions to CambodiaHattha Kaksekar Limited is the fourth largest microfinance institution (MFI) in Cambodia. With more than 1200 staff Hattha delivers a full range of financial services, including loans and deposits, to customers in 122 branches of Cambodias 24 provinces.

BPC implemented a multifunc-tional in-house financial transaction switch for ATM, POS and mobile payments as well as a fully-fledged card management solution with the installation of the SmartVista suite. With the new in-house payments processing system Hattha now is able to offer a biometric identification, enrollment and verification system, the first of its kind in Cambodia. By combining SmartVistas advanced capabilities with widely available channel technologies such as ATMs, POS devices and mobile phones, Hattha is enabled not only to reach more customers in more places but

solution will enable MFIs to provide their customers with a comprehensive range of products and services via technologies and channels they are already familiar with. And crucially, SmartVista for Microfinance will help MFIs deliver products and services at a price point that supports their business needs.

Commenting on the launch, Vasily Grigoriev, CEO BPC Banking Tech-nologies said With our track record of innovation, BPC is delighted to bring the benefits other industries have seen with SmartVista to the microfinance industry. We applaud the work MFIs do around the world in helping improve the quality of lives of hundreds of millions of people and we know that SmartVista for Micro-finance will greatly assist them in their endeavours.

SmartVista for Microfinance has been designed to help microfinance institutions (MFIs) address the key business and information technology challenges involved in providing high quality and affordable financial services to low-income households worldwide. Not only does the fully functional and extremely flexible solution support individual and soli-darity lending approaches, provide extremely flexible repayment options, and help reach customers in remote locations by supporting agents and remote customer remittance, but SmartVista for Microfinance delivers a cost-effective solution for MFIs.

SmartVista for Microfinance builds on the solid, secure and scalable foun-dation provided by SmartVista, BPCs end-to-end e-payments solution. The

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This years Client Conference was held in Panama, Trump Ocean Club Inter-national Hotel & Tower where we were proud to meet our clients representa-tives from the largest and most inno-vative banks and financial organiza-tions from Asia Pacific, Europe, MEA, USA, Central and South Americas and Russia/CIS. Anatoly Loginov opened the meeting, highlighting BPCs continued commitment to its clients and sharing the results from 2011.

BPC was glad to welcome key note spokespersons: experts, partners, inter-national research groups and clients to provide a range of entertaining and informative presentations.

Bhavik Ghandi is a sailor, adven-turer and entrepreneur, fascinated the audience with his view of New Channels, New Challenges and New Opportunities. He illustrated his talk with many real life situations as he rowed, single-handed, across the Atlantic, from Spain to the Caribbean. In 2005 he cycled across Europe, from Stockholm to Istanbul and in 2003 he completed a 9,000 km trek, on foot, from Helsinki to Hong Kong, through Siberia and Mongolia in the winter. While Bhavik undoubtedly has some extremely interesting stories to tell,

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BPC Client Conference 2012 New Channels New Opportunities

with his background as a serial tech-nology entrepreneur Bhavik is ideally qualified to take the lessons learned in overcoming extreme challenges and relating them to the corporate world.

Steven Levy, the senior writer for Wired Magazine, the author of seven books shared his point of view on How New Technology is Shaping our World. Stevens close relationship with key figures in technology has helped him consistently deliver unique, inside coverage that breaks news and provides insight into where technology is going.

Ramiro Wong, CEO TELERED S.A. presented how the largest Panamian payment processor is using SmartVista to deliver a wide range of services to the customers. Carlos Busso, CEO Adexus S.A. talked about how BPC and Adexus are collaborating to serve the financial sector across Latin America.

BPCs managers gave a series of presen-tation. Vasily Grigoriev provided an overview of BPCs future strategy and objectives. Vasily Volynsky made a very interesting summary of the enhance-ments made to SmartVista this year and then took the delegates through the additional features and func-tions planned for 2013 and beyond. Oleg Patsiansky updated the dele-gates on the latest developments in our award winning fraud prevention

solution SmartGuard. Tokhir Abdu-kadyrov reminded the Conference of the feedback that had been provided through the Client Workshops in 2011 and covered significant milestones in customer projects in the recent year and plans for the continued development of our services offering. Building on previous years, client workshops were run again this year and gave the delegates an oppor-tunity to meet as a group of customers without BPC, to discuss their thoughts on the Company and how it is able to

help serve the customers better. In a later plenary session spokespeople for the workshop attendees provided a number of suggestions on new product and service features as well as improve-ments in BPCs professional services.

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Khreschatyk Bank, Ukraine chooses Smart@BankIntegrated with both the core bank-ing system and payment services pro-viders, the new solution will enable the Bank to deliver a wide range of products and services to their cus-tomers through internet and mobile channels. Kreschatyk Bank, a munici-pal finance organization, is a Top 30 bank in Ukraine, and has been run-ning its processing centre on Smart-Vista since 2006. The project of inter-

net and mobile banks implementation is unique for the Ukrainian market because that is the first ever done via web-services integration, which enables the Bank to rapidly add new capabilities such as new merchants easily and quickly. BPCs solution also offers a differentiated service for all the banks customers the inter-face could be tailored based on the personal preferences and is synchro-

nized on all the devices: PC, notebook, tablets and mobile phone. Smart@Banks downloadable application works on all types of handsets run-ning all popular operating systems, including iOS, Android and Windows Phone, ensuring that customers are supported across all virtually mobile platforms.

With Smart@Banks advanced func-tionality and flexibility, the Bank may offer money remittance, utility pay-ments, personal accounts manage-ment, money transfer to other banks and cards, the fees calculation and individual credit program choice.

BPC supports nationwide rollout of ambitious projectThe processing center implementation for Russias Universal Electronic Card (UEC) one of the key components of the e-government project has been completed. As per the project plan, all systems are now ready to issue and process cards at the national level.

The card delivers a wide range of electronic applications and is intended to increase ease of access to state services for all Russian citizens. Along

with regional and federal applications, the card may also be used as a debit card. The plan will see UEC adopted by several hundreds of federal, regional and municipal services along with 10,000 commercial enterprises and is one of the largest projects of its kind in the world. Following the competitive bid process BPC Banking Technologies was chosen from the full range of industry leaders due to SmartVistas flexibility, scalability and security. As a result of the thorough

review, BPC was selected to develop the processing system and to integrate all of UECs providers, partners and third-party solutions including the

state-services portal. SmartVista is the kernel for data processing services across the full range of services available on the cards, including data capture, routing and authorization for services requested by individual cardholders. The Universal Electronic Card is the key to a wide range of

public programs and services and is designed to simplify access, reduce time spend and increase convenience. BPC Banking Technologies also supports the issuing of these cards, the combination of the chosen applications on each card, and the single processing and billing centre for all the non-financial services transaction flows.

The UEC project has been launched in a number of pilot regions and to date

BPC was selected to develop the processing system and to integrate all of UECs providers, partners and third-party solutions including the state-services portal.

around 4,500 cards have been issued. Further functional enhancement and product range enlargement is planned. By 2015 more than 100 million cards are expected to be in use.

NorthCredit Bank RussiaThis was the fastest ever implementation the elapsed time from when the hardware was delivered to the Bank to go-live took only 3 months. In this short time BPC configured and tested all the banking products, organized the issuing of mag-stripe and chip cards, integrated to the core banking systems and third-party local and federal payment suppliers, tested the configuration and went live. This implementation showed not only the benefits SmartVista brings, but also how quickly those benefits can be delivered.

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Our award winning SmartVista solution on show around the world.

BPC on the road...

Visit our website at: www.bpcbt.com 2012. BPC Banking Technologies. All rights reserved.

6 September, 2012Manila, Philippines

PhILIPPINE INTERNATIoNAL BANkING CoNVENTIoN 2012Organized by The Asian Banker, the event was designed to share best practices and benchmarks from around the world and to link the Philippines and international banking communities

During the conference, Daragh OByrne, CMO delivered a presentation about the remittance market and how sophisticated payment solutions can help financial institutions keep their competitive edge. In addition he and Rajan Narayan, MD BPC-Asia Pacific announced the launch of the SmartVista for Microfinance solution, a solution designed to meet the needs of organizations involved in the provision of financial services to low-income individuals and groups.

20-21 September, 2012Kiev, Ukraine

CARD BuSINESS 2012Card Business 2012 organized by Bank Online Conferences, Kiev, Ukraine was dedicated to the business of payment cards, new card products and payment innovations. It provided an opportunity to hear about the latest innovations trends, and best practices from across the world. This year there was the first time to represent the co-branded programs achievements where the delegates will see the efficiency of collaborating between banks and companies such as mobile operators, Ukrainian airlines and etc.

Michail Rakov, Deputy Director BPC-Ukraine made a presentation on Acquiring Internet: new technological solutions, contemporary market and perspectives.

26-29 September, 2012Riga, Latvia

INNoVATIVE CARDS SoLuTIoNS To LEVERAGE BuSINESS EFFICIENCyBPC Banking Technologies participated in the VII annual conference Innovative cards solutions to leverage business efficiency, organized by Bank URALSIB (Russia) and MasterCard.

BPCs executives showcased the latest innovative solution, SmartBox a solution that has been specifically designed to meet the needs of mid-sized banks during the presentation Prepackage solutions for URALSIBs bank-partners.

www.bankuralsib.ru

6-8 November, 2012Paris, France

CARTES & IDENTIFICATIoN 2012BPC Banking Technologies took part in the worlds leading event for digital security and smart technologies CARTES & IDentification.

This year we had more meetings with more senior executives from more customers and prospects than ever before that were interested in all aspects of SmartVista: from switching and authorization solutions, to fraud monitoring. They were interested in complete solutions and also standalone modules.

www.cartes.com

8 November , 2012Ashkhabad, Turkmenistan

CARD PAyMENTS INDuSTRy: PRoSPECTS FoR FuRThER DEVELoPMENTBPC Banking Technologies welcomed representatives from local financial institutions to a joint seminar with the Central Bank of Turkmenistan (CBT) under the banner Card Payments Industry: prospects for further development.

BPCs experts presented numerous ways in which SmartVista can benefit organizations, including support for local card systems, launching new products extremely rapidly and the deployment of multi-application smartcards and provided information on the worldwide success of SmartGuard a sophisticated solution aimed to stop fraud before is happens. Of equal interest to attendees was SmartVistas capabilities to dramatically extend services delivered through ATMs, mobile and internet banking.

www.bpcbt.com

27-28 November, 2012Sao Paulo, Brazil

PAyTECh SuMMIT 2012BPC Banking Technologies was delighted to be a sponsor of the PayTECH, held in Sao Paulo, Brazil at the Pullman Hotel.

Alexander Belyakov, Head of Consulting shared the BPCs extensive experience in the payments market, focusing on a case study showing how companies can dramatically reduce the affect of rising levels of fraud using innovative, flexible solutions such as SmartGuard.

www.paytechsummit.com.br

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