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this document is intended to provide a high-level understanding and demonstrate the attractiveness of the MVNO proposition FIN-101105 2 . presents an exciting opportunity for setting up MVNOs • Financial institutions are one of the key players that can create substantial value by exploiting synergies between their existing products and mobile services • By launching a MVNO. a Financial institution can exponentially increase its reach in the target market • Finally. Based on this experience. we have studied the manner in which financial institutions can differentiate themselves through MVNOs • Brazil. being a rapidly maturing telecom market.INTRODUCTION 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.
... . Nor place offering greater added value Insurance FIN-101105 Payment Banking 3 . 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 Brokerage Mobile banking Online Branch No time constraints..MVNOs & FINANCIAL INSTITUTIONS The multi-channel bank The banking and the mobile world intersect each other in mobile banking.
& MFS. the Bank can create a tailored offer based on bundles of voice. data transmision.MOBILE FINANCIAL SERVICES Where is the business? In contrast to other mobile banking offerings. SMS. the Company would have direct control over its mobile offering by becoming an MVNO Bank offering MFS without MVNO Indirect Relationship Bank with MVNO offering MFS Direct Relationship BANK Mobile Financial Services (MFS) Mobile Services Billing / Customer Care MNO BANK Mobile Financial Services (MFS) Billing / Customer Care BANK MVNO Mobile Services • 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 MNO MVNE USER • Bank can promote uptake of MFS actively as it has complete control over pricing USER With a MVNO. taking advantage of cross subsidies between them FIN-101105 4 .
WHY CREATE MVNOs Benefits for Financial Institutions A MVNO allows a financial instution to increase touchpoints with its existing customer base while also increasing the number of clients itself Benefits DESCRIPTION KEY ELEMENTS Profits • Increase in customer wallet share (financial services + telecom services) • Optimisation of channels of communication & management • Increase in brand perception and brand mindshare • Increased barriers of exit • Using mobile services as a hook to capture new clients for financial services •Increasing touchpoints with the existing clientele • Seamless Integration of financial and telecom services • ARPU lelves • Penetration of mobile services with the client base • “Take Up” rate of mobile banking services • Segmented channels of distribution • Minimisation of SAC (control of the value chain and own channels ofdistribution) Customer Loyalty Clients Mobile banking allows the development of new channels for interaction with clients and customer management FIN-101105 5 .
its Financial services division has over 5.5 million accounts.000 post offices and 38. •Increase access and use of Financial services provided with the help of Mobile Financial Services.MVNOs FOCUSSED ON MFS Postemobile Posteitaliane. the Italian postal service. Positioning • Simplicity: Flat-rate plans with optional add-ons. Extensive client base Objectives of the agreement • Providing mobile telecom services to Postemobile telecom services. 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 • State postal service with a network of over 14. • Bancoposta. FIN-101105 6 .000 POS across Italy. • Innovative: A wide range of Mobile Financial Services provided alongwith the mobile service.
. Pay taxes and other charges to local authorities using Postemobile as the method for payment. • Check balance and movements of associated bank accounts & Postepay cards. • • Buy public transport (ATAC) tickets in Rome using Postemobile to pay. • Postemobile users to buy and recharge parking card (Telepark) using their Postemobile. • Recharge unassociated Postepay cards. associated to own Postemobile. • Pay using postemobile for products bought in Hoepli and Monclick. • Transfer money to accounts in Bancoposta & other banks. Operations Postemobile charges users transaction fees on the MFS operations thereby increasing its customer wallet-share FIN-101105 7 . Recharge Banking Operations Partnerships Other Services Associates • Recharge own prepaid account using an associated Bancoposta account • Recharge another Postemobile phone using an associated Bancoposta account • Recharge Postepay. Send telegrams directly using Postemobile. a prepaid credit card.. • International money transfer in • partnership with MoneyGram.. namely banking and postal services Mobile .MVNOs FOCUSSED ON MFS Postemobile – Value Proposition Postemobile has successfully integrated its mobile services with its other offerings.
Anywhere access to banking services through a mobile terminal FIN-101105 8 . Anytime. •Mobility.000 clients using online banking. MVNO Objectives • Offer clients the opportunity to use mobile banking at any time of the day at no extra cost Positioning • Simplicity: Simple Tariffs for clients with low consumption and rate plans for clients with high consumption.MVNOs IN THE BANKING SECTOR Spain – Bankinter 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.
Positioning • Simplicity: Flat-rate plans for a closed group of users (families. FIN-101105 9 . • The confederation of savings banks (Sparkasse) has more than 450 associate banks with a commercial network of more than 16. •Development of mobile banking services. Extensive client base Objectives of the agreement • Extension of the agreeement inorder to enable associate banks to offer MVNO services. companies).000 offices.MVNOs IN THE BANKING SECTOR Germany – Sparkasse 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 Project Highlights • Germany has more than 500 savings banks. • Increasing the use of mobile banking services through the introfuction of flaterate plans.
• 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 Orange mobile network. • Rabobank’s offer is further complemented by access to news and entertainment services. • Hosted on the Polkomtel mobile network.MVNOs IN THE BANKING SECTOR Others 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. The stated objectives of banks entering the MVNO world has been to increase customer loyalty and profitability of each FIN-101105 10 .
nereoconsulting.com NEREO BUSINESS CONSULTANTS C/ Jorge Juan. 15. 28001 Madrid +34 914 35 35 61 FIN-101105 11 .www.
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