May you require further info, please contact:
Pedro Ruiz-Blanco(+34629369404,pedro.blanco@nereoconsulting.com)
Sao Paulo, November , 2010
This document has been created for the exclusive use of our clients. It is not complete unless supported by the underlying detailed analyses and oral presentation. It must not be passed on to third parties except with the explicit prior consent of NEREO BUSINESS CONSULTANTS.
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This document highlights the underlying advantages of financial institutions using mobile services to expand their penetration and reach…
•
NEREO has extensive experience in assisting clients realize their MVNO objectives. Based on this experience, we have studied the manner in which financial institutions can differentiate themselves through MVNOs
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Brazil, being a rapidly maturing telecom market, presents an exciting opportunity for setting up MVNOs
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Financial institutions are one of the key players that can create substantial value by exploiting synergies between their existing products and mobile services
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By launching a MVNO, a Financial institution can exponentially increase its reach in the target market
•
Finally, this document is intended to provide a high-level understanding and demonstrate the attractiveness of the MVNO proposition
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The banking and the mobile world intersect each other in mobile banking, which is the last building block for developing the multi-channel bank
The multi-channel bank
 The mobile terminal is configured as a personal finance management tool for the end user:
 Guaranteeing access to the banking services with no time or location constraints…
 … allowing the customer needs to be satisfied at very competitive rates
Mobile banking
Online
Branch
No time constraints.
..
... Nor place offering greater added value
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In contrast to other mobile banking offerings, the Company would have direct control over its mobile offering by becoming an MVNO
Bank offering MFS without MVNO Bank with MVNO offering MFS
Indirect
Relationship
BANK
Mobile
Financial
Services
(MFS)
Mobile
Services
Billing /
Customer
Care
MNO
•
Bank cannot promote uptake of MFS actively as it has no control over pricing
•
The Bank does not benefit & is not able to leverage on the MFS offering due to the indirect relationship
USER
Direct Relationship
BANK
Mobile
Financial
Services
(MFS)
Mobile
Services
MNO MVNE
•
Bank can promote uptake of MFS actively as it has complete control over pricing
Billing /
Customer
Care
BANK MVNO
USER
With a MVNO, the Bank can create a tailored offer based on bundles of voice, SMS, data transmision, & MFS, taking advantage of cross subsidies between them
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A MVNO allows a financial instution to increase touchpoints with its existing customer base while also increasing the number of clients itself
Benefits
Profits
DESCRIPTION
•
Increase in customer wallet share
(financial services + telecom services)
•
Optimisation of channels of communication & management
KEY ELEMENTS
•
Seamless Integration of financial and telecom services
•
ARPU lelves
Customer Loyalty
•
Increase in brand perception and brand mindshare
•
Increased barriers of exit
•
Penetration of mobile services with the client base
•
“Take Up” rate of mobile banking services
Clients
•
Using mobile services as a hook to capture new clients for financial services
•
Increasing touchpoints with the existing clientele
•
Segmented channels of distribution
•
Minimisation of SAC (control of the value chain and own channels ofdistribution)
Mobile banking allows the development of new channels for interaction with clients and customer management
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Posteitaliane, the Italian postal service, launched the Poste mobile service in Nov
2007 on the Vodafone and has grown into the biggest MVNO in Italy with over
50% of the MVNO market share
Project Highlights
Extensive client base
•
State postal service with a network of over 14,000 post offices and 38,000 POS across Italy.
•
Bancoposta, its Financial services division has over 5.5 million accounts.
Objectives of the agreement
Positioning
•
Providing mobile telecom services to
Postemobile telecom services.
•
Increase access and use of Financial services provided with the help of Mobile
Financial Services.
•
Simplicity: Flat-rate plans with optional add-ons.
•
Innovative: A wide range of Mobile
Financial Services provided alongwith the mobile service.
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Postemobile has successfully integrated its mobile services with its other offerings, namely banking and postal services
Banking
Operations
Partnerships
Other
Services
Associates
Operations
• Recharge own prepaid account using an associated Bancoposta account
• Recharge another
Postemobile phone using an associated
Bancoposta account
• Recharge Postepay, a prepaid credit card, associated to own
Postemobile.
• Recharge unassociated
Postepay cards.
• Check balance and movements of associated bank accounts & Postepay cards.
• Transfer money to accounts in Bancoposta & other banks.
• International money transfer in partnership with MoneyGram.
• Pay using postemobile for products bought in Hoepli and
Monclick.
• Buy public transport (ATAC) tickets in Rome using
Postemobile to pay.
• Postemobile users to buy and recharge parking card (Telepark) using their Postemobile.
• Pay taxes and other charges to local authorities using
Postemobile as the method for payment.
• Send telegrams directly using
Postemobile.
Postemobile charges users transaction fees on the MFS operations thereby increasing its customer wallet-share
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Bankinter launched its own MVNO with the aim to enhance customer loyalty and reinforce the brand image among the existing clientele
Project Highlights
Extensive client base
•
Bankinter has more than 750,000 clients using online banking.
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MVNO Objectives
Positioning
•
Offer clients the opportunity to use mobile banking at any time of the day at no extra cost
•
Simplicity: Simple Tariffs for clients with low consumption and rate plans for clients with high consumption.
•
Mobility. Anytime, Anywhere access to banking services through a mobile terminal

The confederation of saving banks in Germany (Sparkasse) has signed a MVNO agreement with Vodafone AG which allows its associates to offer mobile telecom services
Extensive client base
Project Highlights
•
Germany has more than 500 savings banks.
•
The confederation of savings banks
(Sparkasse) has more than 450 associate banks with a commercial network of more than 16,000 offices.
Objectives of the agreement
•
Extension of the agreeement inorder to enable associate banks to offer MVNO services.
•
Development of mobile banking services.
Positioning
•
Simplicity: Flat-rate plans for a closed group of users (families, companies).
•
Increasing the use of mobile banking services through the introfuction of flaterate plans.
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Financial entitities in other European countries have commercially launched
MVNOs utilising the key assets of brand and distribution
Experience of banks who have launched MVNOs in other countries in Europe
• Rabobank launched the first banking MVNO in
Europe in Dec 2006 with a positioning of convergence in mobile and banking services.
• Hosted on the Orange mobile network.
• Rabobank’s offer is further complemented by access to news and entertainment services.
• BRE Bank launched its MVNO offering in
Poland in 2006 with a strategy based in the cross-selling of mobile and finacial services.
• Hosted on the
Polkomtel mobile network.
The stated objectives of banks entering the MVNO world has been to increase customer loyalty and profitability of each
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