The Hub of Financial Infrastructure
- ATM Management / VAN Service -
2012. 05
Building Advanced
Payment Infrastructure
Contents
1.
Key challenges for structuring payment system
2.
ATM total management service
3.
VAN service
Payment Infrastructure Stages of Development Cash Check CD/ATM Tele-banking Internet / Payment Gateway Mobile Payment IPTV Payment Credit Card In str um en ts Time Debit, Prepaid, Gift Card POS/Terminal
∙ General payment method is technically able to be established in Vietnam
∙ More to the point is to provide stable service and substantive commercialization
Due to technological advance and financial instrument development, payment infrastructure is constantly changing. Therefore, there is a need to introduce control measures and payment services corresponding to this change.
1. Key challenges for structuring payment system
1) Stages of DevelopmentAs is New Demand
Management on each bank
Overlapping investments
Increased operation cost
Lower service quality
[Financial Institution]
Due to the speedy development of the financial market and the changing social environment, the need for more cost-efficient and convenient payment infrastructure has increased.
Information Technology towards Effective Banking Governance &
High Quality Service for Banking Sector
Integrated management according
to specialist
Prevention of overlapping
investments
Cost efficiency
Diversification in service
Same investment in core
business and non-core business Focusing in core business
Decreased management efficiency
in supervisory authorities
Increased management convenience
in supervisory authorities
1. Key challenges for structuring payment system
2) Needs for Efficient Payment StructureActions Results Service Level Cost Financial Market Development Bank’s Core Competence 3rd Party Special Service Provider [Banks]
Hire specialized service provider [Central Bank]
Policy drive
Foster Bank’s competitiveness Introduce specialized service
providers to focus on payment services
Share and integrate payment system to focus and compete in core areas reduce redundancy
Specialized High reliability Diversified services
More effective payment infrastructure can be built by integrating the scattered payment infrastructure and introducing specialized service provider.
1. Key challenges for structuring payment system
3) Expected effectsATM Management by a specialized company ATM Management by each bank
BANK A BANK B BANK C Redundant Investment Security & Maintenance Issues Lack of Efficient ATM Operation
BANK A BANK B BANK C
Integrated ATM Management by a specialized company
Cost Saving ATM Security
Differentiated Service Cash-in-Transit Inconvenience and inefficiency in circumstances where each bank has to manage its own ATMs can be resolved by assigning ATM services to a specialized company.
Specialized ATM Service Provider
Integrated ATM Management by a specialized company
2. ATM Total management service
•Banks in Korea put major concern on strategic
management and mix various channels such as branch, ATM, call center, internet and private banking
ATM : Major Customer contact point of Bank
•Providing more convenient services to banks’ customers by increasing off-site ATMs
•Outsourcing ATM management to minimize operational burden on maintaining off-site ATMs
Increased coverage according to Off-site ATMs etc.
•Worldwide Trend : Major Banks including Citibank, JPMorgan Chase and BOA, hire specialized company to manage their own ATMs.
•Delivering various service with minimized cost,
increasing customer satisfaction, cost saving, reducing management burden
Specialized Company Opinion to ATM Market in Vietnam
# of ATMs in Korea
ATM Density (per million people)
Source: Bank of Korea Source: Retail Banking Research (2009) 2,101
1,485 1,404
576
157 124 35
Korea Japan USA Thai China Vietnam Cambodia
0 20,000 40,000 60,000 80,000 100,000 120,000 92 94 96 98 00 02 04 06 08
Korea has the highest ATM density per person ratio in the world,
but has successfully achieved low-cost efficiency through management by specialized companies.
2. ATM Total management service
ATM Mgmt Service Cash Logistics Security Biz Off-Site ATM Biz (ISO) Error Recovery Accounting Settlement Cash in Transit Security
Cleaning & Sanitation
Cash & Other Valuable Transfer Cash Supply Services Cash Settlement
Center Outsourcing Cash Storage Service Automated Settlement System NICE EYE NICE DVR Center Solution Manned Security Cash Withdrawal Cash Advance Money Transfer Other Services - e-Cash Charge - Ticketing, etc. Business Scope of NICE Total ATM Management
3) NICE ATM Service – Business Scope
2. ATM Total management service
밀 폐 밀 폐밀 폐 안개등 차폭등 전조등 방향지시등 전조등(변환빔) 마이크로 안테나 선반 변경 후도 도어 설치 고정식 테이블 후면 격벽(밀폐형) 전면 격벽 제동등, 후미등 후부반사기 제동등, 후미등 방향지시등 번호등 후퇴등
Vehicle Exterior Vault in Vehicle
Working Space
(Inside) Equipment Security
Motorcycle Compact Car
Based on the real-time monitoring system, NICE Total Cash Management can provide a safe and swift cash-in-transit service, satisfying all requirements from banks.
Equipped Vehicles for Cash-in-Transit Real-time Monitoring System
Vehicle Structure
2. ATM Total management service
NIBS is ATM total management solution that provides integrated core functions ensuring the know-how, scalability, and efficiency in ATM management regardless of ATM manufacturers.
• Location
• Status
• Loaded Cash
• Cash-in-Transit Schedule
• ATM Information • Asset Management • Error Recovery
• NICE Partner • NICE EYE
2. ATM Total management service
Our centralized ATM operation center monitors and handles various problems and customers care.
Canteen Room
Call Monitoring Monitoring and analyzing errors and incoming calls Integrated Situation Room
Total Monitoring on Operation
AOC Overview AOC Blue Print
2. ATM Total management service
Annually, over KRW 70 trillion is distributed through our highly advanced cash centers. 1 2 3 4 5 Entrance
1 Strengthened security and safety inside Door opens one at a time
Open by finger print check
Office
CCTV covered on area
Monitoring through tempered glass Final check before closing
Settlement Returned cash settlement CCTV on each table
Vault
Steel vault door (triple locking system) Proof of fire, destruction and earthquake Automatic fire distinguisher installed inside
Change -Over
Special security wall strengthened security Infrared Camera installed
Separated from settlement area 2
3
4
5
2. ATM Total management service
7) NICE ATM Service – Cash CenterIn an efficient payment structure, accurate and safe credit card payment services are provided through value-added networks and processing system.
Role of VAN(value added network) Service
Services for Acquirers Network Services Services for Issuers
Off-Line
Front-end Authorization Switching Authorization
Data collection(EDI) Data Record-keeping
Risk Management Backup & supporting
On-line PG(Payment Gateway)
Cardholder (credit or
debit card) Merchant
Issuers/Acquirers
Processing Co.(NICE) Value Added Networks
3. VAN Service
VAN service providers enable Korean financial institutions to be less restrained from relatively high fees of Visa and Master and their interference.
Local Network Service
Merchant Banks & Credit Card Co. Visa / Master
[Visa / Master Association] [Domestic Switching System]
Banks &
Credit Card Co. Local Switching system
Merchant
1. Lower cost of credit card processing 2. More efficient operation
3. To utilize debit card as payment card
High transaction fee
Lead by Visa / Master
3. VAN Service
NICE VAN service provides integrated terminals to merchants, reducing space and overall social cost by reducing redundant investment.
Integrated Terminals
[Type 1. Non-Integrated System] [Type 2. Classified Integration] [Type 3. Integrated Terminal]
Acquiring
Bank1 Acquiring Bank1 Acquiring Bank1
Acquiring
Bank1 Acquiring Bank1 Acquiring Bank1 Network Servicer <Debit Card>
All the acquiring banks and debit cards
No switching service
provider
In progress of integration Integrated switching
service provider available
Merchant Merchant Merchant
3. VAN Service
We provide selected group of products to merchants with excellent designs, quality and services at reasonable price.
NICE: Leading Company
CAT(Desktop) CAT(Portable)
POS Terminal Auxiliary Device
• Table Management
• Customer Management(CRM)
• Sales Management
• High Quality and Performance
• Retailers (CVS, Department stores, Volume Retailers)
Durable devices and reasonable price
Comprehensive Value added Service - Membership, Coupon, Banking - Prepaid, Cash receipt
30 types of design & products
Total Payment Solution (One Terminal to Multi Bank)
Customized for
• Gas stations ( ex. SK, S-oil)
• Delivery (ex. Pizza Hut, Dominos)
• Portable Payment Terminal
Electronic Signature-pad
Multi-Function Device
- Contact & Contactless Payment - RF(NFC) Mobile Payment
3. VAN Service
1,000 specialized security personnel managing over 14,000 ATMs.
390,000 retail subscribers No. 1 in the market
Providing services including cash-in-transit, cash processing center, AOC, and more
Biggest card processing company, providing services including merchants mgmt/switching service/ royalty service
NICE Payment Business (Sales)
(Unit: Mil USD)
225 263 306 359 50 100 150 200 250 300 350 400 1995 2000 2005 2010 [ATM] [Card Processing]
NICE Payment business has continued to grow in last 20 years. Sales in 2011 reached $360 Million, with NICE managing 14,000 ATMs
and providing card processing services to 390,000 subscribers.
4. Overview of NICE Payment Service
Operation Experience in Korea with the highest
ATM density
• Single private company managing over 14,000 ATMs
• 1,000 security specialists in all over the country
• 330 security vehicles in operation
High-Tech Management System
No. 1 manpower/equipment in market Various ATM management/Know-how
Korea No.1
Card Processing Company
Cutting-Edge Automated System Development/Operation
• Total ATM management system - Real-time ATM monitoring
- Automated error report and recovery
• Error recovery competency possess(98% recovery rate)
• Optimal cash management system
Various Additional Service Development and Supply
Superior Service Level Proven
• Risk management • Loyalty service
• Sales and bank balance inquiry service
• Processing every one of three credit card payment in Korea
• 24/7 non-stop system, service provided in all over the country
• 390,000 merchants subscribing NICE card payment service
• Total service provider with payment infrastructure including POS Solution
ATM
Card Processing
