Atm Industry For VN

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  • 1.Changing Landscape in Payments Adrian NgACI Worldwide30 May 2007

2. AgendaIntroduction Industry Trends What Happens Next ATM Fraud Summary 3. ACIs MissionTo be the best global provider of consumer electronic payment software and solutions. 4. ACI Customers800+ Customers 83 countries Supported by a Worldwide Network of ACI Offices, Distributors and Partners 5. ACI Customers36 of the Top 100 U.S. Banks 27 of the Top 100 U.S. Retailers 17 of the Top Banks in India 8 of the Top 10 Banks in Canada 5 of the Top 10 Banks in the UK and Mexico 4 of the Top 5 Banks in South Africa 3 of the Top 5 Banks in Australia & Indonesia 6. Industry Trends 7. Ongoing Growth for Electronic Payments Regional Growth Rate for Electronic Payments (Retail Payments + Retail Transfers + Large Value) 7.0 Eastern Europe6.0Asia Pacific Middle East/Africa5.0South America Index 2004 = 1.0 Nafta4.0 Western Europe 3.0 2.0 1.0 0.02004 200520062007 2008 2009 2010 2011 2012 2013 2014 8. The Trend Will Continue in VietnamVietnams central bank has called on the countrys banks to increase card payment volumes to reduce the populations dependence on cash, but interoperability remains an issue. Three separate card payment networks exist in Vietnam, the alliance of Vietcombank with 17 joint-stock banks, BankNetVN (the national funds transfer system) and the four banks in the VNBC network. Cash payments currently represent 22.8 per cent of Vietnams total payments, with just 2 million ATM cards and 1,900 ATMs in use for a total population of 82 million.Where possible, the banks are encouraged to promote card payments and electronic payment services to customers 9. Ongoing Growth for ATM DeploymentsNumber of ATMs Worldwide 1967- 2005 (millions) 1.75 Early signs of Early signs of 1.50 slowdown slowdown1.25 1.00High growth in theHigh growth in the 0.75 1990s in 1990s in all regionsall regions 0.50 Early growth in theEarly growth in theFirst ATM installedFirst ATM installed USA and thenUSA and then in the UK in 1967in the UK in 1967 Japan Japan 0.25 0.0019671969197119731975197719791981198319851987198919911993199519971999200120032005 Source: RBR Research 10. A/P Is Now The Worlds Largest ATM Region Share of ATMs Worldwide, 2005Central Asia-Pacific has displaced Middle andEastern East and North America as the largest AfricaEurope region for ATMs.2%5%Asia- PacificLatin WEs share of world 31% America11% installations has declined. CEEs share has risen from 2% in 2001 to 5% in 2005.WesternEurope The shares of Latin America 22% and the Middle East and Africa have risen slightly.North America29% Source: RBR Research 11. Growth Rates Vary SignificantlyInstalled Base of ATMs by Region, 2005 and 2009 (thousands)600 4-5% pa 200520095001-2% pa 400 2-4% pa 3004-5% pa20010-15% pa100 8-12% pa 0Asia-PacificNorth Western LatinEastern Middle East AmericaEurope America Europe & Africa Source: RBR Research 12. What Happens Next?Success Means: Additional Complexity Higher Costs Increased Fraud Customer Service Challenges More Competition Pressure on Profits 13. Problems with existing payment systems 14. 1. Banks operate too many payment systems on too many platforms within their payment silos. Settle SwitchACH RTGSRiskCard Platform Platform Platform Platform Platform Platform 15. 2. Each payment system has separate connections to core systems, channels, and payment networks.Payment SystemsACHDebit Card PrintingPrintingCheckRisk & Fraud Mgmt.Risk & Fraud Mgmt.Wire SecuritySecurityPricingPrinting Monitoring & Rptg.Monitoring & Rptg.Risk & Fraud Mgmt.Risk & Fraud Mgmt.SecuritySecurityMonitoring & Rptg.Monitoring & Rptg.Core Systems Teller DDAChannelsCall Center Web SiteG/LIVRMobileReconciliationSource: How to Get to the Promised Land: Alternative Pathways to Enterprise Payments Financial Insights Aaron McPherson July 2005 16. 3. Each payment type needs access to similar services but today these services are deployed in separate silos.ATM POS Branch Internet AuthenticationX XX X Switching/Routing X XX X Delivery Channel X XX X Management Marketing XX X Data AggregationX XX X CRM X XX X MonitoringX XX X Presentation/ XX X Personalisation Authorisation X XX X Risk Management X XX X Source: The Tower Group 17. Where are payment systems going? 18. Banks are deploying enterprise payments hubs to simplify and rationalize their payments architectures.Wire Debit Card Payment Payments Systems Database ACH Check Payments Hub PricingTellerRisk & Fraud Mgmt.Core SystemsDDASecurityChannels Call Center Unique FunctionsWeb SiteG/L IVR Reconciliation MobileSource: How to Get to the Promised Land: Alternative Pathways to Enterprise Payments Financial Insights Aaron McPherson July 2005 19. ACIs Vision --- providing an enterprise payments hub Wire Debit CardPayment PaymentsSystems DatabaseACHCheckTeller ChannelsCore Systems DDACall CenterWeb SiteG/L IVR Mobile Reconciliation Source: How to Get to the Promised Land: Alternative Pathways to Enterprise PaymentsFinancial Insights Aaron McPherson July 2005 20. Case study - CIBCBASE24 BASE24-es CIBC HostsPhone Banking IFX CardProcessorBranchNetworkInternet Banking PRM Debit Payments PRM AML Manager 21. ATM Fraud 22. The Crooks are Everywhere! fraudss border ATM for crorested in Russia 00,000 from US Four araling around $5icion of ste ur men on susp ress reports.have arrested fo, according to p n police cam Russia s border ATM s ounts in a cros bank accAustralian police r ecover firstcomplete ATM skim New ming device ZealaATM nd Banks iss fraud ue warningy ATM k s h it bore Ban al scam Singap em & stski 23. Card Fraud in A/P Higher Than World AverageWorld Average US Canada UKTaiwanSouth Korea PhilippinesMalaysia Japan IndonesiaAustralia Source: The Asian Banker Research, 18 March 20040 5 10 1520 2530 35 Losses Due to Fraud Out of Total Card Transactions (%) in 2002 Losses Due to Fraud Out of Total Card Transactions (%) in 2002 24. Card Skimming The Set-up 25. Card Skimming The Set-up 26. Card Skimming Final Touches 27. Card Skimming Execution 28. Card Skimming - Receiver in Car 29. PC, Database, Encoder, Etc 30. DIY Cards 31. ATM Fraud What can banks do? OperationalEducation for customersSecurity camerasEMVFraud detection solutionACI Proactive Risk Manager 32. SUMMARY 33. Summary Establish a Vision Build the Right Infrastructure Buy Established Packages To LeverageGlobal Cards & ATM Developments Dont Forget About Security Execute Effectively Work With Good Partners 34. EVERY S E C O N D. EVERY DAY