Building Advanced Payment Infrastructure

Transcription

1 Building Advanced Payment Infrastructure - ATM Management / VAN Service The Hub of Financial Infrastructure

2 Contents 1. Key challenges for structuring payment system 2. ATM total management service 3. VAN service 4. Overview of NICE Payment Service 1

3 Instruments 1. Key challenges for structuring payment system 1) Stages of Development 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. Payment Infrastructure Stages of Development General payment method is technically able to be established in Vietnam More to the point is to provide stable service and substantive commercialization IPTV Payment Mobile Payment Internet / Payment Gateway Credit Card POS/Terminal Debit, Prepaid, Gift Card CD/ATM Tele-banking Check Cash Time 2

4 1. Key challenges for structuring payment system 2) Needs for Efficient Payment Structure 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. As is Management on each bank Overlapping investments Increased operation cost Lower service quality Same investment in core business and non-core business Decreased management efficiency in supervisory authorities [Financial Institution] New Demand Integrated management according to specialist Prevention of overlapping investments Cost efficiency Diversification in service Focusing in core business Increased management convenience in supervisory authorities Information Technology towards Effective Banking Governance & High Quality Service for Banking Sector 3

5 1. Key challenges for structuring payment system 3) Expected effects More effective payment infrastructure can be built by integrating the scattered payment infrastructure and introducing specialized service provider. Actions Results [Central Bank] Policy drive Foster Bank s competitiveness Introduce specialized service providers to focus on payment services [Banks] Hire specialized service provider Share and integrate payment system to focus and compete in core areas reduce redundancy 3 rd Party Special Service Provider Specialized High reliability Diversified services Financial Market Development Cost Bank s Core Competence Service Level 4

6 2. ATM Total management service 1) Introduction 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. ATM Management by each bank ATM Management by a specialized company Redundant Investment BANK A BANK B BANK C BANK A BANK C Specialized ATM Service Provider Integrated ATM Management by a specialized company Cost Saving ATM Security Differentiated Service Cash-in-Transit Lack of Efficient ATM Operation BANK B Security & Maintenance Issues Integrated ATM Management by a specialized company 5

7 2. ATM Total management service 2) ATM Management Service & ATM Expansion Korea has the highest ATM density per person ratio in the world, but has successfully achieved low-cost efficiency through management by specialized companies. Opinion to ATM Market in Vietnam ATM Density (per million people) ATM : Major Customer contact point of Bank 2,101 1,485 1, Banks in Korea put major concern on strategic management and mix various channels such as branch, ATM, call center, internet and private banking Source: Retail Banking Research (2009) Korea Japan USA Thai China Vietnam Cambodia Increased coverage according to Off-site ATMs etc. Providing more convenient services to banks customers by increasing off-site ATMs 120, ,000 80,000 60,000 40,000 20,000 0 # of ATMs in Korea Source: Bank of Korea Outsourcing ATM management to minimize operational burden on maintaining off-site ATMs Specialized Company 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 6

8 2. ATM Total management service 3) NICE ATM Service Business Scope Business Scope of NICE Total ATM Management 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. 7

9 2. ATM Total management service 4) NICE ATM Service Cash-in-Transit 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. Real-time Monitoring System Equipped Vehicles for Cash-in-Transit Vehicle Exterior Vault in Vehicle 변경 후도 후면 격벽(밀폐형) 고정식 테이블 선반 마이크로 안테나 차폭등 전조등(변환빔) 방향지시등 전조등 안개등 전면 격벽 도어 설치 밀 폐 밀 폐 제동등, 후미등 후퇴등 방향지시등 제동등, 후미등 후부반사기 번호등 Vehicle Structure Motorcycle 8 Working Space (Inside) Security Equipment Compact Car

10 2. ATM Total management service 5) NICE ATM Service ATM Management Solution(NIBS) NIBS is ATM total management solution that provides integrated core functions ensuring the knowhow, scalability, and efficiency in ATM management regardless of ATM manufacturers. ATM Information Asset Management Error Recovery Location Status Loaded Cash Cash-in-Transit Schedule NICE EYE NICE Partner 9

11 2. ATM Total management service 6) NICE ATM Service AOC(ATM Operation Center) Our centralized ATM operation center monitors and handles various problems and customers care. AOC Blue Print AOC Overview Integrated Situation Room Total Monitoring on Operation Canteen Room Call Monitoring Monitoring and analyzing errors and incoming calls 10

12 2. ATM Total management service 7) NICE ATM Service Cash Center Annually, over KRW 70 trillion is distributed through our highly advanced cash centers. 4 1 Strengthened security and safety inside Entrance Door opens one at a time Open by finger print check Office CCTV covered on area Monitoring through tempered glass Final check before closing 3 Settlement Returned cash settlement CCTV on each table 4 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 11

13 3. VAN Service 1) Unique Point of Advanced Card Processing System In 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 Cardholder (credit or debit card) Merchant Issuers/Acquirers Processing Co.(NICE) Value Added Networks Services for Acquirers Network Services Services for Issuers Front-end Authorization Switching Authorization Off-Line On-line Data collection(edi) Risk Management PG(Payment Gateway) Data Record-keeping Backup & supporting 12

14 3. VAN Service 1) Unique Point of Advanced Card Processing System 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 [Visa / Master Association] High transaction fee Lead by Visa / Master [Domestic Switching System] 1. Lower cost of credit card processing Visa / Master 2. More efficient operation 3. To utilize debit card as payment card Merchant Banks & Credit Card Co. Banks & Credit Card Co. Local Switching system Merchant 13

15 3. VAN Service 2) NICE 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 Merchant Merchant Merchant No switching service provider In progress of integration Integrated switching service provider available 14

16 3. VAN Service 2) NICE 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) 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) POS Terminal Table Management Customer Management(CRM) Sales Management High Quality and Performance Retailers (CVS, Department stores, Volume Retailers) All in one POS System Customized for Gas stations ( ex. SK, S-oil) Delivery (ex. Pizza Hut, Dominos) Portable Payment Terminal Auxiliary Device Electronic Signature-pad Multi-Function Device - Contact & Contactless Payment - RF(NFC) Mobile Payment - PIN PAD & ID Registration 15

17 4. Overview of NICE Payment Service 1) Introduction 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. NICE Payment Business (Sales) [ATM] (Unit: Mil USD) ,000 specialized security personnel managing over 14,000 ATMs. No. 1 in the market Providing services including cash-in-transit, cash processing center, AOC, and more [Card Processing] 390,000 retail subscribers Biggest card processing company, providing services including merchants mgmt/switching service/ royalty service 16

18 4. Overview of NICE Payment Service 2) Strong Point of NICE Operation Experience in Korea with the highest ATM density Various ATM management/know-how Single private company managing over 14,000 ATMs 1,000 security specialists in all over the country 330 security vehicles in operation ATM High-Tech Management System 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 Card Processing Korea No.1 Card Processing Company No. 1 manpower/equipment in market 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 Various Additional Service Development and Supply Superior Service Level Proven Risk management Loyalty service Sales and bank balance inquiry service Various additional service in data record management etc. 17

19 Visit NICE GROUP booth or taehkim@nicetcm.co.kr for more information of our system and services 18