The document summarizes topics from the M-Commerce WorldSummit 2011 conference including: - Mobile banking and payments have become mainstream with hundreds of banks offering mobile apps and services. - Mobile payments are expected to exceed $600 billion globally by 2013 across various models like SMS, NFC, and mobile wallets. - Questions are raised about what truly constitutes "mobile money" and banking the unbanked. - NFC technologies are being trialed in many countries but are they ready for widespread adoption? - The mobile phone is bringing changes like app stores challenging traditional telecom operators and banks.

1. M-Commerce WorldSummit 2011 06-07 April, Singapore

2. Mobile Banking and Payments are Mainstream

3. Mobile Banking and Payments are Mainstream Mobile Banking Approximately 700-800 banks with mobile banking applications live in the marketplace right now. Popular channels include: SMS, USSD, SIM Toolkit, Mobile Web/WAP, Apps, IVR, IVR call-back Mobile Payments Payment @ Distance Models: SMS, USSD, SIM Toolkit, direct mobile billing/PSP billing, direct operator billing, Mobile Web/WAP, Apps, Credit Card, online wallet systems, IVR, IVR call-back Payment @ Proximity Models: (all of the above, plus…) NFC, RFID, Bluetooth, Zigbee, Wifi, IrDA, UWB, TransferJet, etc. Combined market for all types of mobile payments is expected to reach more than $600B globally by 2013 (double of the current figure. Mobile payment market for goods and services, excluding contactless NFC transactions and money transfers, is expected to exceed $300B globally by 2013. Mobile Money Dozens of GSM operators world-wide providing money transfer, payments and prepaid services. Mobile Banking is growing in popularity in all markets

4. Rabobank Mobielbankieren : Usage in 2010 HUGE growth in mobilebankieren with the launch of “Apps” in place of WAP-based mobilebankieren 2006-2009 level

5. But what are we talking about? IVR Banking & Payments SMS Account Activity Alerts Multi-ChannelBalance-Checking Full-Service Mobile Banking Remote Payments & Electronic Wallets Mobile Contactless / Proximity Payments “Mobile Money” Mobile Remittances ??? = banks deploy = public transportation-led models = bank-led models = cooperative models = mobile operators deploy = third-parties deploy = mobile operator-led models

6. There are plenty of possibilities and combinations.

7. How do we characterise these guys?

8. How do we characterise these guys?

9. and of course, full-service mobile banking …

10. How do we characterise these guys?

12. Other direct banks may not be highly active currently in MB

13. MB applicable to almost all segments, and certainly the high-growth areas (current, checking, savings, under-banked, other regions)

15. High scalability

16. Revenues and cost-savings possible

17. Innovative, cost-effective tool for bank customers

18. Bank “on the go” reinforces virtualisation (alternate channels) strategies

19. Great way to increase customer #s substantially

22. Limited transaction account capability, so barrier to scale on transactions, if billed; however, customers expect MB for free, so no charging likely possible

23. Functionality of MB is extensive, but can never enable everything a bank would want to deliver= especially for developing markets

24. Why do it? Churn reduction? Money transfer revenues? Lack of infrastructure? (power, connectivity, computers) Because our competitors were doing it? Convenience? … Banking the Unbanked? Hmm. Not everyone is a sustainable banked customer (banks do have a bottom line) You probably do, but let’s look at why do you need a bank account … Is “Mobile Money” banking the unbanked? Is the “consumer marketing” predilection and ATL marketing messages we are so quick to champion as “changing the rules for access to finance” actually doing us good in the long run? SUGGESTIONS FOR THE CONFERENCE: 1.) Let’s explore our real motivations & associated benefits. 2.) Let’s look at the real revenue potential for MFS in our markets.

25. How do we characterise these guys?

26. Some NFC Trials & Products: Ready for Prime Time? = proposed for, or existing commercial roll-outs Italy France USA Netherlands Czech Republic Slovenia France Canada United Kingdom Georgia South Korea Japan Netherlands Netherlands France Poland Switzerland Spain Guatemala Spain Turkey Taiwan Thailand Singapore Indonesia Australia Japan Taiwan Italy Romania Malaysia Norway

28. loyalty, discount and membership cards

29. access control (e.g. schools, office buildings, etc.)

31. redemptions of other received mobile coupons or loyalty points

32. linked NFC applications between stores, locations and in time (“I was there and gathered points.”)

33. event ticketing, flight ticketing

35. in-store shopping formulas (shopping lists, allergy warnings, recommendations for alt. products)

36. asset management applications, logistics apps

37. Location-based games using NFC

39. combining loyalty and special offers at POS moment (e.g. receiving a coupon based on profile, purchase)

41. Sea Change Traditional Sea Changes (old school) Fixed line telecommunications mobile Usage of bank branches as cash in/out points ATMs and electronic funds transfer (EFT) A new sea change? The “intelligence” in mobile phones first generation mobile phones, address books, SIM card vs. handset – who owns the data? Nokia or SingTel? App stores vs. operators? Will your bank issue your credit card in the future, or will T-Mobile or will the Apple Appstore? NFC and the “secure element” – GSMA is pushing for SWP and the UICC as the SE choice, but with appstore dynamics and these consumer electronics manufacturers able to securely provision card personalisation information to NFC phones directly and world-wide, will the local MNOs be able to play a role? History says no, they will be always marginalised? However, what of banks? How are national banking regulators going to deal with this? SEA CHANGE http://en.wikipedia.org/wiki/Sea_change_(transformation)

42. The Challenge: How to generate successful formulas? Inexpensive, Standardised Savings Products Currently has / uses another financial product Redistribution Zone Too poor Target / Addressable Market Excluded by design Does not have access to the product Agents, Branchless Banking, Mobile Development Zone Excluded by default Does not have / use a financial product Awareness & Usability Campaign Does not want the product Has access to the product, but does not use it Enablement Zone Potential users Based on: http://www.bankablefrontier.com/assets/pdfs/access-frontier-as-tool.pdf

43. Have a great two days! Dan Armstrong Takashi Mobile | Financial Services Rapenburgerplein 81 1011 VJ Amsterdam The Netherlands www.takashimobile.com dan.armstrong@takashimobile.com +31 652 085 071