Project Chase Manhattan
How T-NetSix Enon Corporation created new innovative mobile
banking solution for Chase Manhattan bank
T-NetSix Enon Corporation
• Company background:
– T-NetSix Enon is a IT services providing corporation specialized in consulting, implementing, integrating and maintaining mission-critical Internet-based applications. – 11000 employees in 15 countries including
China and Japan
– Our banking sector has 2000 employees
– Close relations with Nokia, Sonera and NTT DoCoMo
T-NetSix Enon Corporation
Source: http://www1.tieto.com/finanssi/eng/palvelut.htm
T-NetSix Enon Business Plan
•Building customer satisfaction through Quality, Service, and Value
•Act as an integrator between companies and technologies providing superior innovations in practise
T-NetSix Enon Business Plan
•E-Business solutions for all kinds of clients & platforms based on smart cards & strong security
•Java-based architectures and frameworks
T-NetSix Enon Business Plan
•Asian markets are opening
•Asian connection: opening offices in 3 other locations (current locations: HK, Singapore, Tokyo) by 2002
•Working with local partner companies •Joint-ventures
•BBB-program (Best Business Buddies) with local companies -> long relationships based on mutual trust
•“Approach the company, not the IT-department”
•Cooperating with other companies on standardization work
Chase Manhattan background
• Established in 1799
• Over US $366 billion is assets.
• Over 72,700 employees and offices in more than 50 countries.
• 13 locations in Asia Pacific with 3800 employees.
Chase Manhattan background
• Three major franchises
– Global Bank: for corporations, institutions, governments and wealthy individuals
– National Consumer Services: key businesses credit cards, regional consumer banking and other consumer services
– Global Services: key businesses custody, trust & agency services, treasury and cash mgmt, etc.
Chase Manhattan background
• Competitive forces in banking industry
– New products or banking services – New technology
• Current market position
– one of the leading international banks in the world
– Hongkong is the gate of Asia – Core business is credit card
Chase Manhattan background
• Current key customer segments
– Sex: • Male 41%, • female 27%, • joint a/c 18%, • Co. a/c 14% – Age: • 24-35 14% • 35-44 36% • over 44 50% – Occupation: • white collar 15% • mgmt executive 36% • business owner 11% • retired 5%
Creating added value for Chase
Manhattan customers
• Deposit & Investment:
– Customer trend:
• search for added value, aging of population, customers demanding more, women’s changing role
– Target customer segments:
• Matured customers (age 45-64) emphasize security & wealth preservation
• Young customers: (age 30-45) demand high level of services, more information & control. Prefer convenient access, technology and one-step banking
Chase Manhattan strategic objectives
• Developing peripheral services to balance the business concentration risk
• virtual bank to upscale individual’s deposits, investment and insurance
• 24 hr banking • cyber-banking • mobile banking
Reasons for Mobile banking
• Globally over one billion mobile phone users and 400 million wap-phones in the year 2004
• In Hong Kong population with mobile phone is ever increasing
• Mobile phone or PDA most important connection device to the Internet
Reasons for Mobile banking
• Chase Manhattan has only a few branches and its targets are not the retail customers
– mobile bank offers better service and performance to all
– corporate customers travels a lot and use mobile phones -> ideal solution for them
T-NetSix Enon proposal
• Analysis for providing mobile banking services
• Two possible alternatives for mobile banking based on analysis
– Mobile banking extension 1: SmartTrust-based – Mobile banking extension 2: SSL-based (Own
solution)
• Mobile banking extension: SmartTrust-based
– WAP or SMS-based UI on the GSM-phone – security based on the Sonera SmartTrust-concept
• Public Key Infrastructure (PKI) on the SIM card • Enables transaction confidentiality
• Encryption and signatures based on 1024-bit RSA
T-NetSix Enon proposal
• Internet-based bank transaction solution for corporate customers
– Core built on BEA WebLogic Enterprise and Tuxedo
– Application itself is a pure-Java solution – client can be any Internet-capable device – highly scalable
– different security solutions for different layers: internet, intranet, extranet
Source: http://www.beasys.com/products/index.html
T-NetSix Enon proposal
Developing Mobile banking
• Project started february 1999 after SmartTrust was released to public
• First test version to selected customers on august 1999
• Public release november 1999 • Current services: accounts, stock
information etc.
• In future selling and buying stocks
Current situation
• Good receipt from major customers • Accurant number of users is classified • ”thousands and rising fast”
• User profile:
– young and well-educated
– executive managers who travels a lot
Current product concept
• SmartTrust-based mobile banking services • Integrates easily to legacy banking systems • Added value for basic banking businesses • Personalized services
• In future integration with GPS-systems is possible, so then mobile phone can for example guide you to the nearest bank.
Future possibilities for investors
• Joint ventures founded by T-netsix Enon and major international banks, based on current product
• Joint ventures have strong players to back them up (T-netsix Enon & banks)
• Good relations with important companies in mobile computing
Future possibilities for investors
• New possibilities offered by EC under research and development
• The product is constantly under development for future needs
• Smaller risk; product concept already tested troughly with real users and environment
References
• History of Chase Manhattan Corporation (Pre-1996 Merger):
http://www.chase.com
• SmartTrust: http://www.smarttrust.com
• NTT DoCoMo: http://www.nttdocomo.com
• BEA WebLogic Enterprise: http://www.beasys.com, BEA WebLogic
Enterprise 4.1 Introduction, Document Edition 4.1, May 1999
• WAP: http://www.wapforum.org
• Janice J. Heiss: Banking on Java Technology - white paper,
http://java.sun.com
• 724Solutions: http://www.724solutions.com
• Sun and NTT DoCoMo Unveil Prototypes of Next-generation Java,
press release, http://java.sun.com