Atm Industry For VN
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Transcript of Atm Industry For VN
Changing Landscape in Payments
30 May 2007
Adrian NgACI Worldwide
Agenda
• Introduction• Industry Trends• What Happens Next• ATM Fraud• Summary
ACI’s Mission
“To be the best global provider of consumer electronic payment software
and solutions.”
ACI Customers
• 800+ Customers• 83 countries• Supported by a
Worldwide Network of ACI Offices, Distributors and Partners
ACI Customers
• 36 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
Industry Trends
Ongoing Growth for Electronic Payments
Regional Growth Rate for Electronic Payments(Retail Payments + Retail Transfers + Large Value)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Inde
x 20
04 =
1.0
Eastern EuropeAsia PacificMiddle East/AfricaSouth AmericaNaftaWestern Europe
The Trend Will Continue in Vietnam…
• “Vietnam’s central bank has called on the country’s banks to increase card payment volumes to reduce the population’s 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 Vietnam’s 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…”
Ongoing Growth for ATM Deployments
Number of ATMs Worldwide 1967- 2005 (millions)
0.000.250.500.751.001.251.501.75
1967
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
Early signs of slowdown
Early signs of slowdown
High growth in the 1990s in
all regions
High growth in the 1990s in
all regions
First ATM installed in the UK in 1967
First ATM installed in the UK in 1967
Early growth in the USA and then
Japan
Early growth in the USA and then
Japan
Source: RBR Research
Share of ATMs Worldwide, 2005
A/P Is Now The World’s Largest ATM Region
Asia-Pacific31%
North America
29%
Western Europe
22%
Middle East and
Africa2%
Central and
Eastern Europe
5%Latin
America11%
• Asia-Pacific has displaced North America as the largest region for ATMs.
• WE’s share of world installations has declined.
• CEE’s share has risen from 2% in 2001 to 5% in 2005.
• The shares of Latin America and the Middle East and Africa have risen slightly.
Source: RBR Research
Growth Rates Vary Significantly
Installed Base of ATMs by Region, 2005 and 2009 (thousands)
0
100
200
300
400
500
600
Asia-Pacific NorthAmerica
WesternEurope
LatinAmerica
EasternEurope
Middle East& Africa
2005 2009↑4-5% pa
↑1-2% pa
↑2-4% pa
↑4-5% pa
↑10-15% pa
↑8-12% pa
Source: RBR Research
What Happens Next…?
• Success Means:– Additional Complexity– Higher Costs– Increased Fraud– Customer Service Challenges– More Competition– Pressure on Profits
Problems with existing payment systems
RTGSPlatform
SettlePlatform
SwitchPlatform
ACHPlatform
RiskPlatform
CardPlatform
1. Banks operate too many payment systems on too many platforms within their payment silos.
TellerTeller
Call CenterCall Center
Web SiteWeb Site
2. Each payment system has separate connections to core systems, channels, and payment networks.
Source: How to Get to the Promised Land: Alternative Pathways to Enterprise Payments Financial Insights Aaron McPherson July 2005
IVRIVR
MobileMobile ReconciliationReconciliation
G/LG/L
DDADDA
Ch
an
nels
Core
Syste
ms
Wire•Printing•Risk & Fraud Mgmt.•Security•Monitoring & Rptg.
Debit Card•Printing•Risk & Fraud Mgmt.•Security•Monitoring & Rptg.
ACH•Printing•Risk & Fraud Mgmt.•Security•Monitoring & Rptg.
Check•Pricing•Risk & Fraud Mgmt.•Security•Monitoring & Rptg.
Payment Systems
ATM POS Branch InternetAuthentication X X X XSwitching/Routing X X X XDelivery Channel Management X X X X
Marketing X X XData Aggregation X X X XCRM X X X X
Presentation/Personalisation X X X
Monitoring X X X X
Authorisation X X X XRisk Management X X X X
Source: The Tower Group
3. Each payment type needs access to similar services … but today these services are deployed in separate silos.
Where are payment systems going?
Source: How to Get to the Promised Land: Alternative Pathways to Enterprise Payments Financial Insights Aaron McPherson July 2005
Banks are deploying enterprise payments hubs to simplify and rationalize their payments architectures.
Ch
an
nels
Core
Syste
ms
PaymentSystems
TellerTeller
Call CenterCall Center
Web SiteWeb Site
IVRIVR
MobileMobile ReconciliationReconciliation
G/LG/L
DDADDA
CheckCheck
ACHACH
Debit Card
WireWire
PaymentsDatabase
Payments HubPricing
Risk & Fraud Mgmt.Security
Unique Functions
Source: How to Get to the Promised Land: Alternative Pathways to Enterprise Payments Financial Insights Aaron McPherson July 2005
Ch
an
nels
Core
Syste
ms
PaymentSystems
ReconciliationReconciliation
G/LG/L
DDADDA
CheckCheck
ACHACH
Debit Card
WireWire
PaymentsDatabase
ACI’s Vision ---providing an enterprise payments hub
TellerTeller
Call CenterCall Center
Web SiteWeb Site
IVRIVR
MobileMobile
CIBC Hosts
CardProcessorBranch
Network
Case study - CIBC
Phone Banking
Internet Banking Payments
ManagerPRM – DebitPRM – AML
IFX
BASE24BASE24-es
ATM Fraud
The Crooks are Everywhere!
Four arrested in Russia for cross border ATM fraud
Russian police have arrested four men on suspicion of stealing around $500,000 from US
bank accounts in a cross border ATM scam, according to press reports.
Australian police recover first complete ATM skimming deviceNew Zealand Banks issue
ATM fraud warning
Singapore Banks hit by ATM
skim & steal scam
Card Fraud in A/P Higher Than World Average
0 5 10 15 20 25 30 35Losses Due to Fraud Out of Total Card Transactions (%) in 2002
US
Canada
UK
Taiwan
South Korea
Philippines
Malaysia
Japan
Indonesia
Australia
World Average
Source: The Asian Banker Research, 18 March 2004
Losses Due to Fraud Out of Total Card Transactions (%) in 2002
Card Skimming – The Set-up…
Card Skimming – The Set-up…
Card Skimming – Final Touches…
Card Skimming – Execution
Card Skimming - Receiver in Car
PC, Database, Encoder, Etc…
DIY Cards…
ATM Fraud – What can banks do?
• Operational–Education for customers–Security cameras–EMV
• Fraud detection solution–ACI Proactive Risk Manager
SUMMARY
Summary
• Establish a Vision• Build the Right Infrastructure• Buy Established Packages To Leverage Global Cards & ATM Developments
• Don’t Forget About Security• Execute Effectively • Work With Good Partners
E V E R Y S E C O N D. E V E R Y D A Y