Mobile Application: Mobile Banking PDA Project

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Mobile ApplicationMobile Banking PDA Project
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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

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Subjects

• Brazil
• The Banco do Brasil
• Mobile phone Service
• Mobile Project
• Available Platforms
• Next Steps
• Gabriela Zinn Salvucci

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Summary of Brazil

• Population 184,1 million inhabitants
• Produto Interno Bruto R 1,500 billiion
• PIB per capta R 9,1 thousand
• Telephones quantity 41,4 million
• Cellphones quantity 76,6 million
• Internet home users 18,5 million
• Broadband connections 3,1 million

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Subjects

• Brazil
• The Banco do Brasil
• Mobile phone Service
• Mobile Project
• Available Platforms
• Next Steps

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Banco do Brasil Figures that foster development

• Leadership in assets R 233,7 billion.
• 1st in total deposits R 154 billion.
• Greatest credit portfolio R 96,1 billion.
• Greatest service-delivery network in Brazil
  14,6 thousand service outlets.
• Greatest ATM network in Latin America 39
  thousand terminals.
• Greatest client base 21,9 million.
• Network abroad 37 branches.
• Leader in Internet services 6,9 million
  clients.
• Leader in the management of third-party resources
  R 144,8 billion.
• Leader in the foreign-exchange and export
  commercial segment 27,9 market share.
• Leader in credit and debit card billing R 11,1
  billion.
• 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
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Subjects

• Brazil
• The Banco do Brasil
• Mobile phone Service
• Mobile Project
• Available Platforms
• Next Steps

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International Mobile phones market share
Argentina
Chile
8
9
Population 15 milhões
Cellphones 7,3 milhões
8
6
Participation 50
7
4
6
Population 37 milhões
Cellphones 8,3 milhões
2
México
5
Participation 22
4
0
2001
2002
2003
1999
2000
2001
2002
China
México
300
Population 1,3 bilhão
40
Cellphones 257 milhões
Population 103 milhões Cellphones 30 milhões
Participation 29
250
Participation 20
30
200
150
20
100
10
50
0
0
1998
1999
2000
2001
2002
2003
1995
1997
1999
2001
2003
Source Agências Regulatórias, Ministérios e
Operadoras Internacionais publicado no Site
Teleco
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Brazilian mobile phones market share
89 MILLION CELLPHONES ESTIMATE FOR DEC/05
Source Anatel 2005 Estimate from Teleco

• 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).
• 80 prepaid cellphones.
• 11,2 of the families have cellphones as the only
  way to comunicate (IBGE).

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Subjects

• Brazil
• The Banco do Brasil
• Mobile phone Service
• Mobile Project
• Available Platforms
• Next Steps

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Why Mobile Project was created at Banco do
Brasil

• 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 requirements.
• Searching for safe, comfort and low cost
  self-service channels.
• The successful case in BB using alternative
  channels.

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Mobile Banking 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)

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Advantages in using Mobile Banking

• 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. Its easier
  to learn to use and to buy the cellphone than the
  PC.

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Why using Mobile Banking?
Internet Banking
Mobile Banking
Users costs
R 149,00 Varejo
R 1,00 Corporate
R 1.500,00
DEVICE
R 52,90 R 38,00 R 14,90 Telephone contract
internet provider
R 37,90 Oi contract 40
R 49,90 Corporate Oi contract
COMUNICATION
R 0,33 at least 12 minutes using Internet 4
minutes cost R 0,11
R 0,15/Trans.
R 0,15/Trans.
TRANSACTIONS
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Bank account holder can achieve the following
transactions

• 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.

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Mobile Banking BB transactions access
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Mobile Banking BB - Performance
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Subjects

• Brazil
• The Banco do Brasil
• Mobile phone Service
• Mobile Project
• Available Platforms
• Next Steps

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GSM Platform (SIM Card)

• Each Chip has a BB key to develop criptography.
• Only BB can has access to information sent by
  customers.
• All transactions use short message system (SMS)
  to carry information forward Banco do Brasil
  and the operator.
• No Internet connection required.

Oi chip sample, which holds the mobile banking
solution of Banco do Brasil
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CDMA / Brew Platform

• 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.

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WAP 2.0 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).

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SMS Banking Platform sending information
Operator accepts cellphone number and sends an
SMS containing the transaction information to the
customer
Customer performs any transaction through any
alternative channel
Banco do Brasil performs the transaction asked
by the customer and returns information to the
operator
Customer receives SMS containing information
about the transaction performed at the
alternative channels
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SMS Banking Platform ask for transactions
Operator accepts cellphone number and sends
information to Banco do Brasil
Banco do Brasil performs transactions asked by
the customers and returns information to the
Operator
Customer sends SMS asking for a Ballance (B), an
Extract (E) or a Recharge (R)
Operator delivers the information and/or
confirmation of the transaction
Customer receives SMS containing the Balance or
Extract information or Recharge confirmation

• SMS banking can be used through any cellphone,
  regardless of the technology and/or platform.
• Its a perfect platform to the most usual and low
  complexity level transactions.

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Subjects

• Brazil
• The Banco do Brasil
• Mobile phone Service
• Mobile Project
• Available Platforms
• Next Steps

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Next Steps

• 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)

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Any Questions ?
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Subjects

• Citibank - Brazil
• Why wireless technology?
• How it was born
• Main Benefits
• Investments / Payback
• Rogerio Vargas

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Presence in the World
Continents Countries Currencies Employees
190 years in the World
5 102 128 230,000
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Presence in Brazil
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Subjects

• Citibank - Brazil
• Why wireless technology?
• How it was born
• Main Benefits
• Investments / Payback

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Why was the Direct Sales created ?
Current
MYF
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A few words about this business area
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What cities is the Direct Sales present?
June 2005
n Opened before 1998 (22) n Opened in
1998 (04) n Opened in 1999 (03) n Opened in
2000 (05) n Opened in 2002 (02) n Opened in
2003 (00) n Opened in 2004 (08) n Opened in
2005 (03) n TOTAL in 2005 (50)
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The Direct Sales Area
Whats the importance of Direct Sales for the
retail Citibank Brazil ??
In 2 years the Direct Sales brought more than
77,000 customers, 40 with monthly salary over
US 3,000. And more .
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
In 2 years it has achieved 9 share in the total
revenues of retail Citibank Brazil.
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Why Wireless Solution
The Strategy of Direc Sales Area is based on 3
pillars
1. People2. Process3. 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.

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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.

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Subjects

• Citibank - Brazil
• Why wireless technology?
• How it was born
• Main Benefits
• Investments / Payback

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How it was born
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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
wasnt recognized as equipment in Citibank, only
desktops and notebooks could be used).
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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.
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Subjects

• Citibank - Brazil
• Why wireless technology?
• How it was born
• Main Benefits
• Investments / Payback

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Benefits
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How it works
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How it works Security Standards

• 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)

This solution has the same security standards as
other applications of Citibank.
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Subjects

• Citibank - Brazil
• Why wireless technology?
• How it was born
• Main Benefits
• Investments / Payback

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Which are the investments
Investment (Infrastructure / development) US
232,000
Costs per PDA
Cost per PDA per month US 100 (including
rent, fee software license, mobile bill)
Cost per New Customer
Additional Cost per new customer US 6
Break-even
5
months
Payback
12 months
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Any Questions ?