Name Briana McCook
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It’s no secret that Credit card fraud is prevalent throughout todays busy society. This
problem is due to the improvement in frauding technologies and the lack of sufficient
improvement in the security of credit cards. We have investigated ways to fix this problem
and have come up with the ultimate solution: FTS. FTS stands for ‘Fingerprint Transaction
System’, a simple yet effective way to keep your money safe with the security of your
individualised fingerprint replacing your credit card.
3.1 Vision
“To be the safest and most efficient monetary transaction system in the World by
integrating the greatest technology with your personal touch, therefore eliminating credit
card fraud to make the World a safer place for your money.”
3.2 Industry Analysis: Financial Transaction Processing Industry
Industry: Financial Transaction Processing Industry. This industry covers financial
transactions such as credit cards and payment methods such as FTS.
Force: High/Low: Justification:

Buyer power: High This is because payment types such as cash and
cheques are easily accessible so therefore the
buyer has a choice on what payment method it
uses. If the cost of using a financial transaction


processing method is higher than a customer
deems it to be worth then the customer will just
use either cash or a cheque. (Network Products
Guide, 2013)
Supplier power: Low This is because it involves technologies that
although are somewhat new, are not hard to
obtain. Basic fingerprint scanners can be bought
for less than $100NZD (Biometrics Supply, 2014)
and Point of Sales systems can be purchased
from many different suppliers. (Payment
Express, 2012)
Threat of new entrants:

Low Existing companies in the industry such as VISA
and MasterCard have low starting rates and high
leaving costs to bring in customers and keep
them, this is very hard for new businesses to
compete with. (MasterCard, 2014)
Threat of substitutes: High Substitutes in this industry include cash,
cheques and apps like PayPal. Cash and Cheques
are interchangeable majority of the time with
credit cards/FTS and soon PayPal will be just as
dominant. (The Telegraph, 2013)
Rivalry among existing
High There is a lot of competition in the FTP industry.
Often fees are lowered and advertised heavily to
draw in new customers and differentiate
themselves from other almost identical
providers. (Hoovers, 2014)


Overall attractiveness of the industry: This industry is unattractive. Buyer power is high
whilst supplier power is low so consumers have a lot of say in the prices in the market,
therefore making it hard to compete with big companies and still make a reasonable profit.
Threat of new entrants being low reflects the struggle that comes with trying to enter this
industry, this along with a high threat of substitutes and high rivalry among existing
competitors makes this industry unattractive.
3.3 Customers and Thei r Needs
A customer is someone that pays you for the service/product you provide. FTS potential
customers would be all those who have a bank account and want to access it whether for a
purchase, a deposit or getting cash out with a high-level of security and ease. They would
pay a premium for our service as they would do for the use of their credit card. All retailers
that use a monetary transaction system for their business and want to offer their customers
a secure and easy service would be a potential customer as well. They would pay for the
machine and a fee on transactions, just as credit card companies charge retailers.
Customers using such services need their money to be safe as 10% of all Americans have
been subject to credit card fraud. (Statistic Brain, 2012)
3.4 The Product and Service
FTS is the perfect solution for these mentioned customers as it combines safety with speed
and ease. FTS doesn’t use numbers, it uses the personal security of your fingerprint, making
it harder for fraud to occur which our customers will respond well to. Also, important to
customers is the speed and ease of money transactions for both the users and retailers. FTS
cuts down the time it takes for you to find your wallet, your card and type in your pin,
meaning less time is involved in each purchase; benefitting retailers as they can process
more sales in the same amount of time as previously. It takes away the inconvenience of
losing your card or leaving it at home so you never have to worry about where your card is.
FTS combines the best of its customers wants and needs plus more.
3.5 Suppliers and Partners


A supplier for FTS would be Finger-print scanner manufacturers as the FTS system would
need a machine that works like a point of sales system works but reads your fingerprint
instead of your card. They would supply us with the products so we can distribute them to
our customers and get them set up and working. Another supplier would be the data-base
suppliers. A data-base would be needed to store the customers information on. Partner’s
would be the banks as they would work with our system to link it to our customers accounts
and we benefit from using their financial accounts, and the government as they would help
us with the legal side to fingerprinting and we would help them by collaberating to decrease
credit card fraud.
3.6 Strategy: Differentiation
Cost Strategy:
FTS cost strategy is ‘High Cost’. FTS is a premium service in the FTP industry as it offers a
safer and easier way of paying compared with others in this industry. It uses the latest
finger-printing technology so customers would get their money worth from it as their
chances of having money stolen will greatly decrease even if it costs slightly more, giving FTS
a competitive advantage.
Competitive Scope:
FTS competitive scope is ‘Broad Market’. FTS targets all those that already use credit cards,
which in America alone is around 320million (Creditcards.com, 2014), that being bigger than
their population, which is around 318million, (United States Census Bureau, 2014). Along
with the rest of the world’s population that uses credit cards we can see that this targets a
very broad market and therefore differentiation is key in FTS sales.
The overall strategy is therefore Differentiation.
3.7 Value Chain Activity: Deliver the product or service
The most important value chain activity for FTS is the delivery of the product/service.
This is where the customers get the experience of the safe and efficient process described in
the vision statement of FTS and value therefore is added. This value chain activity further


aligns with the strategy for FTS, that being of differentiation, as it is in this activity where FTS
stands out from the rest of the industry.
3.8 Business Processes
3.8.1. THE PURCHASING PROCESS – This is a key business process as this is the interaction
that the users get with the product to achieve the result of a great experience of FTS and an
easy and safe transaction. This process looks at the steps from when the customer makes a
decision to purchase a product, through to when the transaction is completed and both
parties receive their product or revenue. This is part of the value chain activity that delivers
the product or service. It involves the sales department along with a TPS system to carry
out the following process.


The Purchasing Process

3.8.2. THE DISTRIBUTI ON PROCESS – This process ensures that the process following the
initial FTS scan is carried out safely and efficiently to met the customers expectations
presented in the vision statement. It runs through the steps taken between when the
fingerprint is sucessfully scanned through to when the monetary transaction is completed.


Systems such as TPS, Data storage systems and banking processing systems run between the
sales, information and banking departments.
The Distribution Process



3.9 Functionalities
 Linking a finger-print to an account
 Checking the database for sufficient funds
 Sending information about the transaction to the bank
 Processing money from the customer to the retailer
3.10 Systems

3.10. 1. TRANSACTION PROCESSI NG SYSTEM – The transaction processing system is a crucial
step in the purchasing process as it brings the vision statement to life through the
functionalities. This system needs to be working accurately to give the customer the full
experience of the ease of the FTS system.
3.10. 2. DATA STORAGE SYSTEM – The data storage system is crucial as this is where the
accounts interact with the transactions. If data is not stored correctly then the transaction
will not go through properly and the functionalities of this process will not be performed.
The security and ease stated in the business statement relies on this system to work.
3.10. 3. BANK PROCESSING SYSTEM – The bank processing system is one of the last steps in
the FTS business processes and needs to be secure and fast so that customers can have
the best experience and the functionalities are fully utilized.


3.11. Summary Table: Value Chain to Systems

Value Chain
Processes Functionalities Specific Information
Broad Information

Deliver the
product or
1. The
1. Linking a fingerprint to an account.

2. Checking the database for sufficient funds.
Fingerprint scanning system

Data storage system

2. The
1. Sending information about the transaction to
the bank.

2. Processing money from the customer to the
Data storage system

Bank processing system



In conclusion FTS is the perfect solution to the Worlds problem of credit card fraud. It has
everything that a credit card has but with the benefit of accessability, speed, ease and most
importantly safety. This system will bring great value to retailers and users as they can have
an enjoyble experience rather than being uneased by the thought that they could become a
victim of credit card fraud.
1. Networkproductguide.com (2013). The evolution of the Payment Processing Industry.
2. Biometrics Supply (2014).

3. Payment Express (2012). POS (Point of Sale) Vendors.
4. MasterCard (2014). MasterCard Credit Cards.
5. The Telegraph (2013). PayPal smartphone app could replace credit cards.
6. Hoovers (2014). Financial Transaction Processing Industry Overview.
7. Statistic Brain, (2012). Credit card fraud statistics.

8. Creditcards.com (2014). Credit card statistics, industry facts and debt statistics.
9. United States Census Bureau (2014). U.S and World population clock.

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